In This Article:
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Total Revenue: $166.5 million in Q4 2024, a record high.
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Adjusted Net Income: $86.1 million in Q4 2024.
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Adjusted EPS: $1.07 per diluted share in Q4 2024.
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Adjusted Return on Equity: 15.6% in Q4 2024.
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New Insurance Written (NIW) Volume: $11.9 billion in Q4 2024.
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Primary Insurance in Force: $210.2 billion at the end of Q4 2024.
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Net Premiums Earned: $143.5 million in Q4 2024.
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Investment Income: $22.7 million in Q4 2024.
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Underwriting and Operating Expenses: $31.1 million in Q4 2024.
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Expense Ratio: 21.7% in Q4 2024.
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Claims Expense: $17.3 million in Q4 2024.
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Total Cash and Investments: $2.8 billion at the end of Q4 2024.
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Shareholders' Equity: $2.2 billion at December 31, 2024.
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Book Value per Share: $28.21 at December 31, 2024.
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Book Value per Share (Excluding Unrealized Gains/Losses): $29.80 at December 31, 2024.
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Common Stock Repurchased: $27.9 million in Q4 2024, retiring 722,000 shares.
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Total Available Assets: $3.1 billion at the end of Q4 2024.
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Excess Available Assets: $1.3 billion at the end of Q4 2024.
Release Date: February 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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NMI Holdings Inc (NASDAQ:NMIH) reported record adjusted net income of $365.6 million for 2024, up 13% compared to 2023.
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The company achieved a record adjusted EPS of $4.50, marking a 17% increase from the previous year.
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NMI Holdings Inc (NASDAQ:NMIH) closed 2024 with $210.2 billion of high-quality primary insurance in force, demonstrating strong portfolio growth.
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The company activated 118 new lenders in 2024, ending the year with over 1,600 active accounts, indicating robust customer development.
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NMI Holdings Inc (NASDAQ:NMIH) was recognized as a great place to work for the ninth consecutive year, reflecting a strong corporate culture.
Negative Points
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The company's default rate was 1% at year-end, with 6,642 defaults, including 471 new notices related to FEMA-declared disaster areas.
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Claims expense in the fourth quarter increased to $17.3 million from $10.3 million in the third quarter, indicating rising claims costs.
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The reserve release for prior period defaults was lower than in previous years, suggesting a potential slowdown in cure rates.
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The net yield for the quarter decreased slightly due to the way reinsurance claims expense flows through the income statement.
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Despite strong financial performance, the expense ratio remained at 21.7%, indicating limited improvement in expense efficiency.
Q & A Highlights
Q: How should we think about the pacing of capital return with the new repurchase authorization? A: Adam Pollitzer, President and CEO, explained that the $250 million repurchase authorization strikes a balance, allowing for prudent management of funding needs while providing ample runway for consistent stock repurchases over the next several years. Historically, they have averaged about $25 million per quarter, and with the new authorization, they plan to maintain this consistency while also being opportunistic if the market environment allows.