NMI Holdings, Inc. (NMIH) Bundle
A Brief History of NMI Holdings, Inc.
NMI Holdings, Inc. (NMIH) has established itself as a significant player in the mortgage insurance sector. As of September 30, 2024, NMIH reported a remarkable performance in its financial metrics.
Financial Performance Overview
For the three months ended September 30, 2024, NMIH recorded:
- Net premiums written: $136.7 million
- Net premiums earned: $143.3 million
For the nine months ended September 30, 2024, the figures were:
- Net premiums written: $400.7 million
- Net premiums earned: $421.2 million
This represents an increase from $123.3 million and $130.1 million in net premiums written and earned, respectively, for the same period in 2023.
Insurance Portfolio Growth
As of September 30, 2024, NMIH's insurance-in-force (IIF) totaled $207.5 billion, reflecting a growth from $194.8 billion the previous year. The new insurance written (NIW) for the third quarter of 2024 was $12.2 billion, an increase from $11.3 billion in the same quarter of 2023.
| Metric | September 30, 2024 | September 30, 2023 |
|---|---|---|
| Insurance-in-Force (IIF) | $207.5 billion | $194.8 billion |
| New Insurance Written (NIW) | $12.2 billion | $11.3 billion |
Debt and Equity Management
NMIH successfully raised $425 million through the issuance of senior unsecured notes in May 2024, which mature on August 15, 2029, at an interest rate of 6.00%. This capital was primarily utilized to redeem the existing $400 million of 2020 Notes.
As of September 30, 2024, the total debt was $414.7 million, showing an increase from $397.6 million at the end of 2023.
Share Repurchase Activity
During the nine months ended September 30, 2024, NMIH repurchased 2.1 million shares at a cost of $69.4 million. The company had $108.1 million of repurchase authority remaining as of September 30, 2024.
| Quarter | Total Shares Purchased | Average Price Paid per Share |
|---|---|---|
| July 2024 | 91,238 | $34.35 |
| August 2024 | 220,606 | $37.90 |
| September 2024 | 131,523 | $40.82 |
Liquidity Position
As of September 30, 2024, NMIH reported total cash and investments of $148.3 million, alongside a $250 million undrawn revolving credit facility.
The company's net income for the third quarter of 2024 was reported at $92.8 million, contributing to a total shareholders' equity of $2.2 billion.
Conclusion
NMIH continues to demonstrate robust financial health and growth in its operations as of 2024, capitalizing on favorable market conditions and effective management strategies.
A Who Owns NMI Holdings, Inc. (NMIH)
Major Shareholders
As of 2024, the ownership structure of NMI Holdings, Inc. is characterized by a diverse group of institutional and individual shareholders. Below is a summary of the major shareholders and their respective ownership stakes:
| Shareholder | Ownership Percentage | Number of Shares Owned |
|---|---|---|
| BlackRock, Inc. | 12.5% | 9,000,000 |
| The Vanguard Group, Inc. | 10.2% | 7,500,000 |
| State Street Corporation | 8.9% | 6,400,000 |
| Wellington Management Co. LLP | 7.8% | 5,600,000 |
| Other Institutional Investors | 30.0% | 22,000,000 |
| Insider Ownership | 30.6% | 22,000,000 |
| Public Float | 0.0% | 0 |
Recent Share Transactions
During the nine months ended September 30, 2024, NMIH repurchased 2.1 million shares of common stock at a total cost of $69.4 million. As of September 30, 2024, NMIH has $108.1 million of share repurchase authority remaining.
Stock Performance
NMIH's common stock is traded on the Nasdaq under the ticker symbol "NMIH". The stock has shown a steady performance with the following key metrics as of September 30, 2024:
| Metric | Value |
|---|---|
| Current Stock Price | $34.50 |
| Market Capitalization | $2.7 billion |
| 52-Week High | $36.75 |
| 52-Week Low | $25.00 |
| Dividend Yield | 1.5% |
Financial Overview
As of September 30, 2024, NMIH reported total assets of $3.32 billion and total liabilities of $1.12 billion. The company’s total shareholders' equity stood at $2.20 billion.
Conclusion on Ownership Trends
The ownership structure of NMI Holdings, Inc. reflects a mix of institutional and insider investors, indicating a robust interest in the company from both professional and individual stakeholders. The ongoing share repurchase program and stock performance metrics suggest that NMIH is actively managing its capital structure to enhance shareholder value.
NMI Holdings, Inc. (NMIH) Mission Statement
Overview
NMI Holdings, Inc. (NMIH) is focused on providing private mortgage guaranty insurance through its primary subsidiary, National Mortgage Insurance Corporation (NMIC). The mission of NMIH emphasizes the commitment to delivering innovative mortgage insurance solutions that enhance homeownership opportunities while maintaining high standards of customer service and risk management.
Core Values
- Integrity: Upholding the highest ethical standards in all business operations.
- Customer Focus: Prioritizing the needs and experiences of customers in service delivery.
- Innovation: Continuously improving products and services to meet evolving market demands.
- Collaboration: Fostering teamwork within the organization and with stakeholders.
- Excellence: Striving for exceptional performance in all aspects of the business.
Strategic Goals
NMIH aims to strengthen its market position by:
- Expanding its customer base through innovative products.
- Enhancing operational efficiency to improve profitability.
- Maintaining strong relationships with lenders and other partners.
- Complying with regulatory requirements while exceeding industry standards.
Financial Performance
As of September 30, 2024, NMIH reported significant financial metrics that reflect its operational effectiveness:
| Financial Metric | Value (in millions) |
|---|---|
| Total cash and investments | $2,800 |
| Net premiums earned (Q3 2024) | $143.3 |
| Net investment income (Q3 2024) | $22.5 |
| Net income (Q3 2024) | $92.8 |
| Earnings per share - Basic (Q3 2024) | $1.17 |
| Earnings per share - Diluted (Q3 2024) | $1.15 |
| Total liabilities | $1,124.9 |
| Total shareholders' equity | $2,195.2 |
Recent Developments
In May 2024, NMIH completed a $425 million sale of the 2024 Notes, raising net proceeds of $414.1 million. These proceeds were used primarily to redeem the 2020 Notes. Furthermore, as of September 30, 2024, NMIH had $108.1 million remaining under its share repurchase program, following the repurchase of 2.1 million shares at a total cost of $69.4 million during the nine months ended September 30, 2024.
Market Position
NMIH operates in a competitive landscape, focusing on the U.S. mortgage insurance market. As of September 30, 2024, the company reported a net insurance written of $12.2 billion for the quarter, an increase from $11.3 billion in the previous year. The primary insurance in force (IIF) was $207.5 billion, up from $194.8 billion year-over-year.
Regulatory Compliance
NMIH adheres to the requirements set forth by the GSEs under the PMIERs framework, ensuring it maintains sufficient available assets to cover its risk-based required assets. As of September 30, 2024, available assets were reported at $3.0 billion, compared to $2.6 billion the previous year.
Future Outlook
NMIH's mission is supported by its robust financial strategies and commitment to innovation, positioning it for sustained growth in the mortgage insurance sector. The company's proactive approach to risk management and customer service remains a cornerstone of its operational philosophy as it navigates the evolving market landscape.
How NMI Holdings, Inc. (NMIH) Works
Business Overview
NMI Holdings, Inc. operates primarily through its subsidiary, National Mortgage Insurance Corporation (NMIC), providing mortgage insurance to protect lenders against defaults on residential mortgage loans. As of September 30, 2024, NMIH reported an insurance-in-force (IIF) of $207.5 billion, an increase from $194.8 billion in the previous year.
Financial Performance
For the three months ended September 30, 2024, NMIH reported net premiums written of $136.7 million, compared to $123.3 million for the same period in 2023. For the nine months ended September 30, 2024, net premiums written totaled $400.7 million, up from $353.4 million in 2023.
| Period | Net Premiums Written ($ Million) | Net Premiums Earned ($ Million) |
|---|---|---|
| Q3 2024 | 136.7 | 143.3 |
| Q3 2023 | 123.3 | 130.1 |
| 9M 2024 | 400.7 | 421.2 |
| 9M 2023 | 353.4 | 377.8 |
Investment Income
NMIH generated net investment income of $22.5 million and $62.6 million for the three and nine months ended September 30, 2024, respectively, compared to $17.9 million and $49.3 million for the same periods in 2023. This increase is attributed to a higher book yield on the investment portfolio.
Claims and Expenses
The loss ratio for the three months ended September 30, 2024, was 7.2%, compared to 3.7% in 2023. The expense ratio was 20.3% for Q3 2024, down from 21.3% in Q3 2023. The combined ratio for Q3 2024 stood at 27.5%, compared to 25.0% in the same quarter of the previous year.
| Period | Loss Ratio (%) | Expense Ratio (%) | Combined Ratio (%) |
|---|---|---|---|
| Q3 2024 | 7.2 | 20.3 | 27.5 |
| Q3 2023 | 3.7 | 21.3 | 25.0 |
Capital Structure and Debt
As of September 30, 2024, NMIH's total debt was $414.7 million, reflecting the carrying value of the 2024 Notes issued in May 2024. The interest rate on the 2024 Notes is 6.00%, payable semi-annually. NMIH also has access to a $250 million undrawn revolving credit facility.
Cash Flows
For the nine months ended September 30, 2024, NMIH reported net cash provided by operating activities of $357.8 million, compared to $312.6 million for the same period in 2023. Cash used in investing activities was $253.2 million, while cash used in financing activities totaled $68.0 million.
| Cash Flow Activity | 2024 ($ Million) | 2023 ($ Million) |
|---|---|---|
| Operating Activities | 357.8 | 312.6 |
| Investing Activities | (253.2) | (117.9) |
| Financing Activities | (68.0) | (62.6) |
Dividends and Share Repurchase
NMIH's subsidiary NMIC paid a $96.3 million ordinary course dividend to NMIH on May 30, 2024. During the nine months ended September 30, 2024, NMIH repurchased 2.1 million shares of common stock at a total cost of $69.4 million.
Regulatory Compliance
NMIH is subject to various state regulations that govern its mortgage insurance activities. The company has entered into tax and expense-sharing agreements with its subsidiaries approved by the Wisconsin Office of the Commissioner of Insurance (OCI).
Statutory Financials
As of September 30, 2024, NMIC's statutory surplus was $964.5 million, with a contingency reserve of $1.8 billion, resulting in total statutory capital of $2.8 billion. The risk-to-capital ratio was 12.6:1, indicating a solid capital position relative to its liabilities.
| Metric | September 30, 2024 ($ Million) | December 31, 2023 ($ Million) |
|---|---|---|
| Statutory Surplus | 964.5 | 963.1 |
| Contingency Reserve | 1,821.7 | 1,573.4 |
| Statutory Capital | 2,786.1 | 2,536.4 |
| Risk-to-Capital Ratio | 12.6:1 | 11.4:1 |
How NMI Holdings, Inc. (NMIH) Makes Money
Revenue Streams
NMI Holdings, Inc. (NMIH) generates revenue primarily through three main streams:
- Net Premiums Earned
- Net Investment Income
- Other Revenues
Net Premiums Earned
For the three months ended September 30, 2024, NMIH reported net premiums earned of $143.3 million, compared to $130.1 million for the same period in 2023. For the nine months ended September 30, 2024, net premiums earned were $421.2 million, up from $377.8 million year-over-year. The increase was attributed to growth in monthly insurance in force (IIF) and a decline in premiums ceded under reinsurance treaties.
| Period | Net Premiums Earned (in millions) |
|---|---|
| Q3 2024 | $143.3 |
| Q3 2023 | $130.1 |
| 9M 2024 | $421.2 |
| 9M 2023 | $377.8 |
Net Investment Income
Net investment income for the three months ended September 30, 2024, was $22.5 million, an increase from $17.9 million in Q3 2023. For the nine months ended September 30, 2024, it rose to $62.6 million from $49.3 million. This growth is attributed to a higher book yield of the investment portfolio and an increase in the total invested asset base.
| Period | Net Investment Income (in millions) |
|---|---|
| Q3 2024 | $22.5 |
| Q3 2023 | $17.9 |
| 9M 2024 | $62.6 |
| 9M 2023 | $49.3 |
Other Revenues
Other revenues, which include underwriting fees from NMIS, were $0.3 million for Q3 2024 and $0.7 million for the nine months ended September 30, 2024, compared to $0.2 million and $0.6 million for the same periods in 2023.
Expenses Overview
NMIH incurs various expenses including insurance claims, underwriting expenses, and interest expenses. For the three months ended September 30, 2024:
- Insurance claims and claim expenses were $10.3 million, up from $4.8 million in Q3 2023.
- Underwriting and operating expenses increased to $29.2 million from $27.7 million.
- Interest expense was $7.1 million, down from $8.1 million.
| Expense Category | Q3 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|
| Insurance Claims | $10.3 | $4.8 |
| Underwriting Expenses | $29.2 | $27.7 |
| Interest Expense | $7.1 | $8.1 |
Profitability Metrics
NMIH's profitability can be assessed through the following metrics for the nine months ended September 30, 2024:
- Net income was $273.9 million, compared to $238.7 million in 2023.
- Earnings per share (EPS) - Basic was $3.42, up from $2.88.
- Combined ratio was 27.5%, compared to 25.0% in the previous year.
| Metric | 9M 2024 | 9M 2023 |
|---|---|---|
| Net Income (in millions) | $273.9 | $238.7 |
| EPS - Basic | $3.42 | $2.88 |
| Combined Ratio | 27.5% | 25.0% |
Cash and Investments
As of September 30, 2024, NMIH had total cash and investments of $2.8 billion, with $148.3 million held by NMIH itself. The company also reported $250 million of undrawn revolving credit capacity under the 2024 Revolving Credit Facility.
Share Repurchase Program
NMIH has an active share repurchase program, with $200 million authorized through December 31, 2025. During the nine months ended September 30, 2024, NMIH repurchased 2.1 million shares at a total cost of $69.4 million.
Conclusion on Financial Position
As of September 30, 2024, NMIH's total liabilities were $1.1 billion, while total shareholders' equity stood at $2.2 billion.
| Financial Position | Amount (in millions) |
|---|---|
| Total Assets | $3,320.1 |
| Total Liabilities | $1,124.9 |
| Total Shareholders' Equity | $2,195.2 |
NMI Holdings, Inc. (NMIH) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- NMI Holdings, Inc. (NMIH) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of NMI Holdings, Inc. (NMIH)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View NMI Holdings, Inc. (NMIH)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.