NMI Holdings NMIH reported second-quarter 2024 operating net income per share of $1.20, which beat the Zacks Consensus Estimate by 15.4%. The bottom line increased 26.3% year over year. The quarterly results reflected higher premiums and net investment income, and increased persistency, which drove growth in the company's high-quality insured portfolio.
Operational Update
NMI Holdings' total operating revenues of $162 million increased 13.3% year over year on higher net premiums earned (up 12%) and net investment income (up 25%). Revenues beat the Zacks Consensus Estimate by 2.1%.
Primary insurance in force increased 6.4% to $203.5 billion. Annual persistency was 85.4%, down 60 basis points (bps) year over year. New insurance written was $12.5 billion, up 9% year over year.
NMI Holdings Inc Price, Consensus and EPS Surprise
NMI Holdings Inc price-consensus-eps-surprise-chart | NMI Holdings Inc Quote
Underwriting and operating expenses totaled $28.3 million, up 3.2% year over year. Insurance claims and claim expenses were $0.3 million, reflecting a drop of 90.4% year over year. The loss ratio was 0.2, which improved 210 bps year over year.
The adjusted expense ratio of 20.1 improved 160 bps year over year, while the adjusted combined ratio of 20.3 improved 80 bps year over year.
Financial Update
Book value per share, a measure of net worth, was up 17% year over year to $27.54 as of Jun 30, 2024.
NMI Holdings had $62.6 million in cash and cash equivalents, which decreased 35.2% from 2023 end. The debt balance of $414.2 million increased 4.2% from the end of 2023.
The annualized adjusted return on equity was 18.3%, which contracted 30 bps year over year.
Total PMIERs available assets were $2.8 billion. Net risk-based required assets totaled $1.7 billion at the end of second-quarter 2024.
Zacks Rank
NMIH currently carries a Zacks Rank #3 (Hold).
Performance of Other Insurers
The Travelers Companies TRV reported second-quarter 2024 core income of $2.51 per share, which beat the Zacks Consensus Estimate by 25.5%. The bottom line skyrocketed from 6 cents earned in the year-ago quarter, driven by solid underlying results, net favorable prior year reserve development and higher net investment income, partially offset by higher catastrophe losses. Travelers' total revenues increased 12.4% from the year-ago quarter to $11.3 billion, primarily driven by higher premiums. The top-line figure, however, missed the Zacks Consensus Estimate by 1%.
The Progressive Corporation's PGR second-quarter 2024 earnings per share of $2.65 beat the Zacks Consensus Estimate of $1.99. The bottom line improved more than five times year over year. Operating revenues of $18.3 billion beat the Zacks Consensus Estimate by 1.4% and increased 18.9% year over year.
Progressive's net premiums earned grew 19% to $17.2 billion and beat our estimate of $16.7 billion. Combined ratio improved 850 bps from the prior-year quarter's level to 91.9.
Selective Insurance Group, Inc. SIGI reported second-quarter 2024 operating loss of $1.10 per share against the Zacks Consensus Estimate of earnings of $1.56. The company had reported an operating income of 99 cents per share in the prior year quarter. The quarterly results reflected poor underwriting performance, unfavorable prior-year casualty reserve development and escalating costs, offset by higher premiums and net investment income.
Selective Insurance's total revenues of $1.2 billion increased 15% from the year-ago quarter's figure, primarily due to higher premiums earned, net investment income and net premiums written. The top line missed the Zacks Consensus Estimate by 1.3%.
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