NMI Holdings, Inc. (Nasdaq:NMIH) today reported a GAAP net loss of
$1.8 million, or $(0.03) per diluted share, and adjusted net income
of $14.0 million, or $0.22 per diluted share for its fourth quarter
ended December 31, 2017. Net income (loss) and net income (loss)
per share were adjusted to reflect a one-time non-cash expense of
$13.6 million primarily related to the re-measurement of the
company’s net deferred tax asset as a result of tax reform, and a
pre-tax non-cash expense of $3.4 million related to the change in
fair value of the company’s warrant liability as a result of the
increase in its stock price. This compares with net income of $12.3
million, or $0.20 per diluted share, and adjusted net income of
$12.6 million, or $0.20 per diluted share, after adjusting for the
change in fair value of the warrant liability, in the prior
quarter. In the fourth quarter of 2016, the company reported net
income of $59.7 million, or $0.98 per diluted share, and adjusted
net income of $2.3 million, or $0.04 per diluted share, after
adjusting for the change in fair value of the warrant liability and
release of the valuation allowance on the company’s net deferred
tax asset. We present the non-GAAP financial measures adjusted net
income and adjusted net income per share to increase the
comparability of our financial results between periods. See
"Use of Non-GAAP Financial Measures" below.
Bradley Shuster, Chairman and CEO of National
MI, said, "In the fourth quarter, National MI delivered record
financial results, including record new insurance written of $6.9
billion, record net premiums earned of $50.1 million, record
adjusted net income of $14.0 million, and record adjusted
return-on-equity of 11.0%. National MI continued to build its
portfolio of high-quality insurance in force at a rate that leads
our industry. We also continued to make significant strides in
customer development, activating 29 new customers in the fourth
quarter and continuing to increase our volume with existing
customers.”
- As of December 31, 2017, the company had primary
insurance-in-force of $48.5 billion, up 12% from $43.3 billion at
the prior quarter end and up 51% over $32.2 billion as of December
31, 2016.
- Premiums earned for the quarter were $50.1 million, including
$4.2 million attributable to cancellation of single premium
policies, which compares with $44.5 million, including $4.3 million
related to cancellations, in the prior quarter. Premiums
earned in the fourth quarter of 2017 were up 53% over premium
revenue of $32.8 million in the same quarter a year ago, which
included $5.1 million related to cancellations.
- NIW mix was 83% monthly premium product, which compares with
79% in the prior quarter and 75% in the fourth quarter of
2016.
- At quarter-end, cash and investments were $735 million,
including $51 million at the holding company, and book equity was
$509 million, equal to $8.41 per share.
- At quarter-end, the company had total PMIERs available assets
of $528 million, which compares with risk-based required assets
under PMIERs of $446 million.
|
|
|
|
|
|
|
|
|
QuarterEnded |
QuarterEnded |
QuarterEnded |
Change |
Change |
|
|
12/31/2017 |
9/30/2017 |
12/31/2016 (1) |
Q/Q |
Y/Y |
Primary Insurance-in-Force ($billions) |
48.47 |
|
43.26 |
|
32.17 |
|
12 |
% |
51 |
% |
New
Insurance Written - NIW ($billions) |
|
|
|
|
|
|
Monthly premium |
5.74 |
|
4.83 |
|
3.90 |
|
19 |
% |
47 |
% |
|
Single premium |
1.14 |
|
1.28 |
|
1.34 |
|
-11 |
% |
-15 |
% |
|
Total |
6.88 |
|
6.11 |
|
5.24 |
|
13 |
% |
31 |
% |
|
|
|
|
|
|
Premiums Earned ($millions) |
50.08 |
|
44.52 |
|
32.83 |
|
12 |
% |
53 |
% |
Underwriting & Operating Expense
($millions) |
28.30 |
|
24.65 |
|
23.28 |
|
15 |
% |
22 |
% |
Loss Expense ($millions) |
2.37 |
|
0.96 |
|
0.80 |
|
148 |
% |
197 |
% |
Loss Ratio |
4.7 |
% |
2.1 |
% |
2.4 |
% |
|
|
Cash & Investments ($millions) |
735 |
|
713 |
|
677 |
|
3 |
% |
9 |
% |
Book Equity ($millions) |
509 |
|
511 |
|
476 |
|
0 |
% |
7 |
% |
Book Value per Share |
8.41 |
|
8.53 |
|
8.04 |
|
-1 |
% |
5 |
% |
(1) The 2016 prior period balance sheet has been revised. Please
refer to our Form 10-K for the year ended December 31, 2017 for
further details.
Conference Call and Webcast DetailsThe company
will hold a conference call and live webcast at 2:00 p.m. Pacific
Time / 5:00 p.m. Eastern Time. The webcast will be available
on the company's website, www.nationalmi.com, in the "Investor
Relations" section. The call also can be accessed by dialing
(888) 734-0328 in the U.S., or (914) 495-8578 for international
callers using Conference ID: 1986684, or by referencing NMI
Holdings, Inc.
About National MINational
Mortgage Insurance Corporation (National MI), a subsidiary of NMI
Holdings, Inc. (NASDAQ:NMIH), is a U.S.-based, private mortgage
insurance company enabling low down payment borrowers to realize
home ownership while protecting lenders and investors against
losses related to a borrower's default. To learn more, please visit
www.nationalmi.com.
Cautionary Note Regarding
Forward-Looking StatementsCertain statements contained in
this press release or any other written or oral statements made by
or on behalf of the Company in connection therewith may constitute
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended (Securities Act), Section 21E of
the Securities Exchange Act of 1934, as amended (Exchange Act), and
the U.S. Private Securities Litigation Reform Act of 1995
(PSLRA). The PSLRA provides a "safe harbor" for any
forward-looking statements. All statements other than
statements of historical fact included in or incorporated by
reference in this release are forward-looking statements, including
any statements about our expectations, outlook, beliefs, plans,
predictions, forecasts, objectives, assumptions or future events or
performance. These statements are often, but not always, made
through the use of words or phrases such as "anticipate,"
"believe," "can," "could," "may," "predict," "assume," "potential,"
"should," "will," "estimate," "plan," "project," "continuing,"
"ongoing," "expect," "intend" and similar words or phrases.
All forward-looking statements are only predictions and involve
estimates, known and unknown risks, assumptions and uncertainties
that may turn out to be inaccurate and could cause actual results
to differ materially from those expressed in them. Many risks
and uncertainties are inherent in our industry and markets.
Others are more specific to our business and operations.
Important factors that could cause actual events or results to
differ materially from those indicated in such statements include,
but are not limited to: changes in the business practices of Fannie
Mae and Freddie Mac (collectively, the GSEs), including decisions
that have the impact of decreasing or discontinuing the use of
mortgage insurance as credit enhancement; our ability to remain an
eligible mortgage insurer under the current or future versions of
their private mortgage insurer eligibility requirements (PMIERs)
and other requirements imposed by the GSEs, which they may change
at any time; retention of our existing certificates of authority in
each state and the District of Columbia (D.C.) and our ability to
remain a mortgage insurer in good standing in each state and D.C.;
our future profitability, liquidity and capital resources; actions
of existing competitors, including other private mortgage insurers
and governmental mortgage insurers like the Federal Housing
Administration (FHA) and the Veterans Administration (VA)
(collectively, public MIs), and potential market entry by new
competitors or consolidation of existing competitors; developments
in the world's financial capital and reinsurance markets and our
access to such markets; adoption of new or changes to existing laws
and regulations that impact our business or financial condition
directly or the mortgage insurance industry generally or their
enforcement and implementation by regulators; changes to the GSEs'
role in the secondary mortgage market driven by Congressional or
regulatory action or other changes that could affect the
residential mortgage industry generally or mortgage insurance
industry in particular; potential future lawsuits, investigations
or inquiries or resolution of current lawsuits or inquiries;
changes in general economic, market and political conditions and
policies, interest rates, inflation or other conditions that affect
the housing market or the markets for home mortgages or mortgage
insurance; our ability to successfully execute and implement our
capital plans, including our ability to access the reinsurance
market and to enter into, and receive approval for reinsurance
arrangements on terms and conditions that are acceptable to us, the
GSEs and our regulators; our ability to implement our business
strategy, including our ability to write mortgage insurance on low
down payment residential mortgage loans, implement successfully and
on a timely basis, complex infrastructure, systems, procedures, and
internal controls to support our business and regulatory and
reporting requirements of the insurance industry; our ability to
attract and retain a diverse customer base, including the largest
mortgage originators; failure of our pricing, risk management or
investment strategies; emergence of unexpected claims and coverage
issues, including claims exceeding our reserves or amounts we
expected to experience; potential adverse impacts arising from
recent natural disasters, including, with respect to the affected
areas, a decline in new business, adverse effects on home prices,
and an increase in notices of default on insured mortgages;
the inability of our counter-parties, including third party
reinsurers, to meet their obligations to us; our ability to utilize
our net operating loss carryforwards, which could be limited or
eliminated in various ways, including if we experience an ownership
change as defined in Section 382 of the Internal Revenue Code;
failure to maintain, improve and continue to develop necessary
information technology systems or the failure of technology
providers to perform as expected; and, our ability to recruit,
train and retain key personnel. These risks and
uncertainties also include, but are not limited to, those set forth
under the heading "Risk Factors" detailed in Item 1A of Part I of
our Annual Report on Form 10-K for the year ended December 31,
2017, as subsequently updated through other reports we file with
the SEC. All subsequent written and oral forward-looking
statements attributable to the Company or persons acting on its
behalf are expressly qualified in their entirety by these
cautionary statements. We caution you not to place undue
reliance on any forward-looking statement, which speaks only as of
the date on which it is made, and we undertake no obligation to
publicly update or revise any forward-looking statement to reflect
new information, future events or circumstances that occur after
the date on which the statement is made or to reflect the
occurrence of unanticipated events except as required by law.
Use of Non-GAAP Financial Measures
We believe that use of the non-GAAP measures of
adjusted pre-tax income, adjusted net income, adjusted net income
per share and adjusted return-on-equity facilitate the evaluation
of our fundamental financial performance, thereby providing
relevant information to investors. These non-GAAP financial
measures align with the way the Company's business performance is
evaluated by management. These measures are not recognized in
accordance with GAAP and should not be viewed as alternatives to
GAAP measures of performance. These measures have been
established in order to increase transparency for the purposes of
evaluating our fundamental operating trends and enabling more
meaningful comparisons with our peers.
Adjusted pre-tax income is
defined as GAAP income before tax, excluding the effects of the
non-cash loss or gain related to the change in fair value of our
warrant liability.
Adjusted net income is defined
as GAAP net income (loss) excluding the after-tax impact of the
aforementioned change in the fair value of our warrant liability
and other discrete tax (benefits) expense which are infrequent and
unusual non-operating items, such as the one-time non-cash charge
due to a re-measurement of our net deferred tax assets in
connection with the enactment of the Tax Cuts and Jobs Act (the
"Tax Act") in 2017 and the release of the valuation allowance held
against certain of our net deferred tax assets in 2016. The amounts
of adjustments to components of pre-tax income are tax effected
using a federal statutory tax rate of 35%.
Adjusted net income per diluted
share is calculated in a manner consistent with the
accounting standard regarding earnings per share by dividing (i)
adjusted net income by (ii) diluted weighted average common shares
outstanding, which reflects share dilution from non-vested
restricted stock units and from warrants when dilutive.
Adjusted return-on-equity is
calculated by dividing the adjusted income on an annualized basis
by the average shareholders’ equity for the period.
Although adjusted pre-tax net income and
adjusted net income exclude certain items that have occurred in the
past and are expected to occur in the future, the excluded items
represent items that are: (1) not viewed as part of the operating
performance of our primary activities; or (2) impacted by market,
economic or regulatory factors and are not necessarily indicative
of operating trends, or both. These adjustments, along with the
reasons for their treatment, are described below. Trends in the
profitability of our fundamental operating activities can be more
clearly identified without the fluctuations of these adjustments.
Other companies may calculate these measures differently.
Therefore, their measures may not be comparable to those used by
us.
(1) Change in fair value of warrant
liability. Outstanding warrants at the end of each reporting
period are revalued, and any change in fair value is reported in
the statements of operations in the period in which the change
occurred. The change in the fair value of our warrant
liability can vary significantly across periods and is influenced
principally by equity market and general economic factors which may
not impact or reflect our current period operating results. Trends
in our operating performance can be more clearly identified without
the fluctuations of the change in fair value of our warrant
liability.
(2) Infrequent or unusual non-operating
items. Our income tax expense for 2017 reflects a one-time
non-cash charge due to a re-measurement of our net deferred tax
assets in connection with the enactment of the Tax Act in the
fourth quarter of 2017. Our income tax benefit in 2016 reflects a
one-time non-cash benefit related to the release of the valuation
allowance held against certain of our net deferred tax assets.
Investor ContactJohn M.
SwensonVice President, Investor Relations and
Treasuryjohn.swenson@nationalmi.com(510) 788-8417
Press ContactMary
McGarityStrategic Vantage Mortgage Public Relations(203)
513-2721MaryMcGarity@StrategicVantage.com
|
|
|
|
Consolidated
statements of operations and comprehensive income |
For the three months endedDecember
31, |
|
For the year endedDecember 31, |
|
2017 |
|
2016 (3) |
|
2017 |
|
2016(3) |
Revenues |
(In Thousands, except for per share data) |
Net
premiums earned |
$ |
50,079 |
|
|
$ |
32,825 |
|
|
$ |
165,740 |
|
|
$ |
110,481 |
|
Net
investment income |
4,388 |
|
|
3,634 |
|
|
16,273 |
|
|
13,751 |
|
Net
realized investment gains (losses) |
9 |
|
|
65 |
|
|
208 |
|
|
(693 |
) |
Other
revenues |
62 |
|
|
105 |
|
|
522 |
|
|
276 |
|
Total revenues |
54,538 |
|
|
36,629 |
|
|
182,743 |
|
|
123,815 |
|
Expenses |
|
|
|
|
|
|
|
Insurance
claims and claims expenses |
2,374 |
|
|
800 |
|
|
5,339 |
|
|
2,392 |
|
Underwriting and operating expenses |
28,297 |
|
|
23,281 |
|
|
106,979 |
|
|
93,223 |
|
Total expenses |
30,671 |
|
|
24,081 |
|
|
112,318 |
|
|
95,615 |
|
Other expense |
|
|
|
|
|
|
|
(Loss)
gain from change in fair value of warrant liability |
(3,426 |
) |
|
(1,714 |
) |
|
(4,105 |
) |
|
(1,900 |
) |
Interest
expense |
3,382 |
|
|
3,776 |
|
|
(13,528 |
) |
|
(14,848 |
) |
Total other
expense |
(6,808 |
) |
|
(5,490 |
) |
|
(17,633 |
) |
|
(16,748 |
) |
|
|
|
|
|
|
|
|
Income (loss) before
income taxes |
17,059 |
|
|
7,058 |
|
|
52,792 |
|
|
11,452 |
|
Income
tax expense (benefit) |
18,825 |
|
|
(52,664 |
) |
|
30,742 |
|
|
(52,549 |
) |
Net income (loss) |
$ |
(1,766 |
) |
|
$ |
59,722 |
|
|
$ |
22,050 |
|
|
$ |
64,001 |
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share |
|
|
|
|
|
|
|
Basic |
$ |
(0.03 |
) |
|
$ |
1.01 |
|
|
$ |
0.37 |
|
|
$ |
1.08 |
|
Diluted |
$ |
(0.03 |
) |
|
$ |
0.98 |
|
|
$ |
0.35 |
|
|
$ |
1.05 |
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding |
|
|
|
|
|
|
|
Basic |
60,219 |
|
|
59,140 |
|
|
59,816 |
|
|
59,071 |
|
Diluted |
60,219 |
|
|
61,229 |
|
|
62,186 |
|
|
60,829 |
|
|
|
|
|
|
|
|
|
Loss Ratio(1) |
4.7 |
% |
|
2.4 |
% |
|
3.2 |
% |
|
2.2 |
% |
Expense Ratio(2) |
56.5 |
% |
|
70.9 |
% |
|
64.5 |
% |
|
84.4 |
% |
Combined ratio |
61.2 |
% |
|
73.3 |
% |
|
67.7 |
% |
|
86.6 |
% |
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
(1,766 |
) |
|
$ |
59,722 |
|
|
$ |
22,050 |
|
|
$ |
64,001 |
|
Other comprehensive
income, net of tax: |
|
|
|
|
|
|
|
Net
unrealized gains (losses) in accumulated other comprehensive
income, net of tax expense of $1,234 and$1,178 for the years ended
December 31, 2017 and 2016, respectively, and $(1,273) and $1,178
for the quarters endedDecember 2017 and 2016, respectively |
(2,094 |
) |
|
(16,196 |
) |
|
2,559 |
|
|
1,429 |
|
Reclassification adjustment for realized losses (gains) included in
net income, net of tax expense of $73, and $0for the years ended
December 31, 2017 and 2016, respectively and $73 and $0 for the
quarters endedDecember 31, 2017 and 2016, respectively |
(135 |
) |
|
(65 |
) |
|
(131 |
) |
|
758 |
|
Other comprehensive
income, net of tax |
(2,229 |
) |
|
(16,261 |
) |
|
2,428 |
|
|
2,187 |
|
Comprehensive income
(loss) |
$ |
(3,995 |
) |
|
$ |
43,461 |
|
|
$ |
24,478 |
|
|
$ |
66,188 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Loss ratio is calculated by dividing the provision for
insurance claims and claims expenses by net premiums earned.(2)
Expense ratio is calculated by dividing other underwriting and
operating expenses by net premiums earned.(3) The 2016 prior
period consolidated results of operations have been revised. Please
refer to our Form 10-K for the year ended December 31, 2017 for
further details.
|
|
|
|
Consolidated
balance sheets |
December 31, 2017 |
|
December 31, 2016 (1) |
Assets |
(In Thousands, except for share data) |
Fixed
maturities, available-for-sale, at fair value (amortized cost of
$713,859and $630,688 as of December 31, 2017 and December 31, 2016,
respectively) |
$ |
715,875 |
|
|
$ |
628,969 |
|
Cash and
cash equivalents |
19,196 |
|
|
47,746 |
|
Premiums
receivable |
25,179 |
|
|
13,728 |
|
Accrued
investment income |
4,212 |
|
|
3,421 |
|
Prepaid
expenses |
2,151 |
|
|
1,991 |
|
Deferred
policy acquisition costs, net |
37,925 |
|
|
30,109 |
|
Software
and equipment, net |
22,802 |
|
|
20,402 |
|
Intangible assets and goodwill |
3,634 |
|
|
3,634 |
|
Prepaid
reinsurance premiums |
40,250 |
|
|
37,921 |
|
Deferred
tax asset, net |
19,929 |
|
|
51,434 |
|
Other
assets |
3,695 |
|
|
542 |
|
Total assets |
$ |
894,848 |
|
|
$ |
839,897 |
|
|
|
|
|
Liabilities |
|
|
|
Term
loan |
$ |
143,882 |
|
|
$ |
144,353 |
|
Unearned
premiums |
163,166 |
|
|
152,906 |
|
Accounts
payable and accrued expenses |
23,364 |
|
|
25,297 |
|
Reserve
for insurance claims and claim expenses |
8,761 |
|
|
3,001 |
|
Reinsurance funds withheld |
34,102 |
|
|
30,633 |
|
Deferred
ceding commission |
5,024 |
|
|
4,831 |
|
Warrant
liability, at fair value |
7,472 |
|
|
3,367 |
|
Total liabilities |
385,771 |
|
|
364,388 |
|
Commitments and
contingencies |
|
|
|
|
|
|
|
Shareholders'
equity |
|
|
|
Common
stock - class A shares, $0.01 par value; 60,517,512 and 59,145,161
shares issued and outstanding as of December 31, 2017and December
31, 2016, respectively (250,000,000 shares authorized) |
605 |
|
|
591 |
|
Additional paid-in capital |
585,488 |
|
|
576,927 |
|
Accumulated other comprehensive loss, net of tax |
(2,859 |
) |
|
(5,287 |
) |
Accumulated deficit |
(74,157 |
) |
|
(96,722 |
) |
Total shareholders'
equity |
509,077 |
|
|
475,509 |
|
Total liabilities and
shareholders' equity |
$ |
894,848 |
|
|
$ |
839,897 |
|
|
|
|
|
|
|
|
|
(1) The 2016 prior period consolidated results of
operations has been revised. Please refer to our Form 10-K for the
year ended December 31, 2017 for further details.
|
Non-GAAP Financial Measure
Reconciliations |
|
QuarterEnded |
|
QuarterEnded |
|
QuarterEnded |
(In Thousands, except
for per share data) |
12/31/2017 |
|
9/30/2017 |
|
12/31/2016 |
As
Reported |
|
|
|
|
|
Revenues |
|
|
|
|
|
Net
premiums earned |
$ |
50,079 |
|
|
$ |
44,519 |
|
|
$ |
32,825 |
|
Net
investment income |
4,388 |
|
|
4,170 |
|
|
3,634 |
|
Net
realized investment gains (losses) |
9 |
|
|
69 |
|
|
65 |
|
Other
revenues |
62 |
|
|
195 |
|
|
105 |
|
Total revenues |
54,538 |
|
|
48,953 |
|
|
36,629 |
|
Expenses |
|
|
|
|
|
Insurance
claims and claims expenses |
2,374 |
|
|
957 |
|
|
800 |
|
Underwriting and operating expenses |
28,297 |
|
|
24,645 |
|
|
23,281 |
|
Total expenses |
30,671 |
|
|
25,602 |
|
|
24,081 |
|
Other Expense |
|
|
|
|
|
Gain
(loss) from change in fair value of warrant liability |
(3,426 |
) |
|
(502 |
) |
|
(1,713 |
) |
Interest
expense |
3,382 |
|
|
3,352 |
|
|
3,777 |
|
Total other
expense |
(6,808 |
) |
|
(3,854 |
) |
|
(5,490 |
) |
|
|
|
|
|
|
Income before income
taxes |
17,059 |
|
|
19,497 |
|
|
7,059 |
|
Income
tax expense (benefit) |
18,825 |
|
|
7,185 |
|
|
(52,663 |
) |
Net
income |
$ |
(1,766 |
) |
|
$ |
12,312 |
|
|
$ |
59,722 |
|
Adjustments: |
|
|
|
|
|
(Gain) loss from change
in fair value of warrant liability |
3,426 |
|
|
502 |
|
|
1,713 |
|
Adjusted Income
before income taxes |
20,485 |
|
|
19,999 |
|
|
8,771 |
|
|
|
|
|
|
|
After-tax warrant
adjustment |
2,227 |
|
|
326 |
|
|
1,113 |
|
Deferred tax asset
adjustments |
13,554 |
|
|
— |
|
|
(58,535 |
) |
Adjusted Net
income |
$ |
14,015 |
|
|
$ |
12,638 |
|
|
$ |
2,300 |
|
|
|
|
|
|
|
Weighted average
diluted shares outstanding - Reported |
60,219 |
|
|
63,089 |
|
|
61,229 |
|
Dilutive effect of
non-vested shares and warrants |
3,449 |
|
|
— |
|
|
— |
|
Weighted average
diluted shares outstanding - Adjusted |
63,668 |
|
|
63,089 |
|
|
61,229 |
|
|
|
|
|
|
|
Diluted EPS -
Reported |
$ |
(0.03 |
) |
|
$ |
0.20 |
|
|
$ |
0.98 |
|
Diluted EPS -
Adjusted |
$ |
0.22 |
|
|
$ |
0.20 |
|
|
$ |
0.04 |
|
|
|
|
|
|
|
Return on
Equity - Reported |
(1.4 |
)% |
|
9.8 |
% |
|
52.7 |
% |
Return on
Equity - Adjusted |
11.0 |
% |
|
10.0 |
% |
|
2.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Historical
Quarterly Data |
|
2017 |
|
2016 |
|
|
December 31 |
September 30 |
|
June 30 |
|
March 31 |
|
December 31 (4) |
|
September 30 |
|
Revenues |
|
(In Thousands, except for per share data) |
Net
premiums earned |
$ |
50,079 |
|
$ |
44,519 |
|
|
$ |
37,917 |
|
|
$ |
33,225 |
|
|
$ |
32,825 |
|
|
$ |
31,808 |
|
|
Net
investment income |
4,388 |
|
4,170 |
|
|
3,908 |
|
|
3,807 |
|
|
3,634 |
|
|
3,544 |
|
|
Net
realized investment gains (losses) |
9 |
|
69 |
|
|
188 |
|
|
(58 |
) |
|
65 |
|
|
66 |
|
|
Other
revenues |
62 |
|
195 |
|
|
185 |
|
|
80 |
|
|
105 |
|
|
102 |
|
|
Total revenues |
54,538 |
|
48,953 |
|
|
42,198 |
|
|
37,054 |
|
|
36,629 |
|
|
35,520 |
|
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
Insurance
claims and claims expenses |
2,374 |
|
957 |
|
|
1,373 |
|
|
635 |
|
|
800 |
|
|
664 |
|
|
Underwriting and operating expenses |
28,297 |
|
24,645 |
|
|
28,048 |
|
|
25,989 |
|
|
23,281 |
|
|
24,037 |
|
|
Total expenses |
30,671 |
|
25,602 |
|
|
29,421 |
|
|
26,624 |
|
|
24,081 |
|
|
24,701 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other expense (1) |
(6,808 |
) |
(3,854 |
) |
|
(3,281 |
) |
|
(3,690 |
) |
|
(5,490 |
) |
|
(4,530 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes |
17,059 |
|
19,497 |
|
|
9,496 |
|
|
6,740 |
|
|
7,058 |
|
|
6,289 |
|
|
Income
tax expense (benefit) |
18,825 |
|
7,185 |
|
|
3,484 |
|
|
1,248 |
|
|
(52,664 |
) |
|
114 |
|
|
Net income (loss) |
$ |
(1,766 |
) |
$ |
12,312 |
|
|
$ |
6,012 |
|
|
$ |
5,492 |
|
|
$ |
59,722 |
|
|
$ |
6,175 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share |
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
(0.03 |
) |
$ |
0.21 |
|
|
$ |
0.10 |
|
|
$ |
0.09 |
|
|
$ |
1.01 |
|
|
$ |
0.10 |
|
|
Diluted |
$ |
(0.03 |
) |
$ |
0.20 |
|
|
$ |
0.10 |
|
|
$ |
0.09 |
|
|
$ |
0.98 |
|
|
$ |
0.10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
Basic |
60,219 |
|
59,884 |
|
|
59,823 |
|
|
59,184 |
|
|
59,140 |
|
|
59,130 |
|
|
Diluted |
60,219 |
|
63,089 |
|
|
63,010 |
|
|
62,339 |
|
|
61,229 |
|
|
60,285 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other data |
|
|
|
|
|
|
|
|
|
|
|
Loss
Ratio (2) |
4.7 |
% |
2.1 |
% |
|
3.6 |
% |
|
1.9 |
% |
|
2.4 |
% |
|
2.1 |
% |
|
Expense Ratio (3) |
56.5 |
% |
55.4 |
% |
|
74.0 |
% |
|
78.2 |
% |
|
70.9 |
% |
|
75.6 |
% |
|
Combined ratio |
61.2 |
% |
57.5 |
% |
|
77.6 |
% |
|
80.1 |
% |
|
73.3 |
% |
|
77.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Other expense includes the gain from change in fair value of
warrant liability and interest expense.(2) Loss ratio is calculated
by dividing the provision for insurance claims and claims expenses
by net premiums earned.(3) Expense ratio is calculated by dividing
other underwriting and operating expenses by net premiums
earned.(4) The 2016 prior period consolidated results of
operations have been revised. Please refer to our Form 10-K for the
year ended December 31, 2017 for further details.
New Insurance Written (NIW), Insurance in Force (IIF)
and Premiums
The tables below present primary and pool NIW and IIF, as of the
dates and for the periods indicated.
|
|
Primary
NIW |
Three months ended |
|
December 31,2017 |
|
September 30,2017 |
June 30,2017 |
|
March 31,2017 |
|
December 31,2016 |
|
September 30,2016 |
|
(In Millions) |
Monthly |
$ |
5,736 |
|
|
$ |
4,833 |
|
$ |
4,099 |
|
|
$ |
2,892 |
|
|
$ |
3,904 |
|
|
$ |
4,162 |
|
Single |
1,140 |
|
|
1,282 |
|
938 |
|
|
667 |
|
|
1,336 |
|
|
1,695 |
|
Primary |
$ |
6,876 |
|
|
$ |
6,115 |
|
$ |
5,037 |
|
|
$ |
3,559 |
|
|
$ |
5,240 |
|
|
$ |
5,857 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Primary and
pool IIF |
As of |
|
December 31,2017 |
|
September 30,2017 |
June 30,2017 |
|
March 31,2017 |
|
December 31,2016 |
|
September 30,2016 |
|
|
(In Millions) |
Monthly |
$ |
33,268 |
|
|
$ |
28,707 |
|
$ |
24,865 |
|
|
$ |
21,511 |
|
|
$ |
19,205 |
|
|
$ |
16,038 |
|
|
Single |
15,197 |
|
|
14,552 |
|
13,764 |
|
|
13,268 |
|
|
12,963 |
|
|
12,190 |
|
|
Primary |
48,465 |
|
|
43,259 |
|
38,629 |
|
|
34,779 |
|
|
32,168 |
|
|
28,228 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pool |
3,233 |
|
|
3,330 |
|
3,447 |
|
|
3,545 |
|
|
3,650 |
|
|
3,826 |
|
|
Total |
$ |
51,698 |
|
|
$ |
46,589 |
|
$ |
42,076 |
|
|
$ |
38,324 |
|
|
$ |
35,818 |
|
|
$ |
32,054 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table presents the amounts related to the 2016 QSR
transaction for the periods indicated.
|
|
|
|
December 31,2017 |
September 30,2017 |
June 30,2017 |
March 31,2017 |
December 31,2016 |
September 30,2016 |
|
|
(In Thousands) |
Ceded
risk-in-force |
$ |
2,983,353 |
|
$ |
2,682,982 |
|
$ |
2,403,027 |
|
$ |
2,167,745 |
|
$ |
2,008,385 |
|
$ |
1,778,235 |
|
Ceded premiums
written |
(15,233 |
) |
(14,389 |
) |
(12,034 |
) |
(10,292 |
) |
(11,576 |
) |
(38,977 |
) |
Ceded premiums
earned |
(14,898 |
) |
(13,393 |
) |
(11,463 |
) |
(9,865 |
) |
(9,746 |
) |
(2,885 |
) |
Ceded claims and claims
expenses |
800 |
|
277 |
|
342 |
|
268 |
|
206 |
|
90 |
|
Ceding commission
written |
3,047 |
|
2,878 |
|
2,407 |
|
2,058 |
|
2,316 |
|
7,795 |
|
Ceding commission
earned |
2,885 |
|
2,581 |
|
2,275 |
|
2,065 |
|
1,752 |
|
551 |
|
Profit commission |
8,139 |
|
7,758 |
|
6,536 |
|
5,651 |
|
5,642 |
|
1,641 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio Statistics
The table below highlights trends in our primary
portfolio as of the date and for the periods indicated.
|
|
Primary
portfolio trends |
As of and for the three months
ended |
|
December 31,2017 |
|
September 30,2017 |
June 30,2017 |
March 31,2017 |
|
December 31,2016 |
|
September 30,2016 |
|
|
($ Values In Millions) |
New
insurance written |
$ |
6,876 |
|
|
$ |
6,115 |
|
$ |
5,037 |
|
$ |
3,559 |
|
|
$ |
5,240 |
|
|
$ |
5,857 |
|
|
New risk
written |
1,665 |
|
|
1,496 |
|
1,242 |
|
868 |
|
|
1,244 |
|
|
1,415 |
|
|
Insurance
in force (IIF) (1) |
48,465 |
|
|
43,259 |
|
38,629 |
|
34,779 |
|
|
32,168 |
|
|
28,228 |
|
|
Risk in
force (1) |
11,843 |
|
|
10,572 |
|
9,417 |
|
8,444 |
|
|
7,790 |
|
|
6,847 |
|
|
Policies
in force (count) (1) |
202,351 |
|
|
180,089 |
|
161,195 |
|
145,632 |
|
|
134,662 |
|
|
119,002 |
|
|
Average
loan size (1) |
$ |
0.240 |
|
|
$ |
0.240 |
|
$ |
0.240 |
|
$ |
0.239 |
|
|
$ |
0.239 |
|
|
$ |
0.237 |
|
|
Average
coverage (2) |
24.4 |
% |
|
24.4 |
% |
24.4 |
% |
24.3 |
% |
|
24.2 |
% |
|
24.3 |
% |
|
Loans in
default (count) |
928 |
|
|
350 |
|
249 |
|
|
207 |
|
|
|
179 |
|
|
115 |
|
|
Percentage of loans in default |
0.5 |
% |
|
0.2 |
% |
0.2 |
% |
0.1 |
% |
|
0.1 |
% |
|
0.1 |
% |
|
Risk in
force on defaulted loans |
$ |
53 |
|
|
$ |
19 |
|
$ |
14 |
|
$ |
12 |
|
|
$ |
10 |
|
|
$ |
6 |
|
|
Average
premium yield (3) |
0.44 |
% |
|
0.43 |
% |
0.41 |
% |
0.40 |
% |
|
0.43 |
% |
|
0.49 |
% |
|
Earnings
from cancellations |
$ |
4.2 |
|
|
$ |
4.3 |
|
$ |
3.8 |
|
$ |
2.5 |
|
|
$ |
5.1 |
|
|
$ |
5.8 |
|
|
Annual
persistency (4) |
86.1 |
% |
|
85.1 |
% |
83.1 |
% |
81.3 |
% |
|
80.7 |
% |
|
81.8 |
% |
|
Quarterly
run-off (5) |
3.9 |
% |
|
3.8 |
% |
3.4 |
% |
2.9 |
% |
|
4.6 |
% |
|
5.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Reported as of the end of the
period.(2)
Calculated as end of period risk in force (RIF) divided by
IIF.(3)
Calculated as net primary and pool premiums earned, net of
reinsurance, divided by average gross IIF for the period,
annualized.(4)
Defined as the percentage of
IIF that remains on our books after any 12-month
period.(5)
Defined as the percentage of IIF that are no longer on our books
after any 3-month period
The tables below present our total primary NIW by FICO,
loan-to-value (LTV) ratio, and purchase/refinance mix for the
periods indicated.
|
|
Primary NIW by
FICO |
For the three months ended |
|
December 31, 2017 |
|
September 30, 2017 |
|
December 31, 2016 |
|
($ In Millions) |
>=
760 |
$ |
2,847 |
|
|
$ |
2,806 |
|
|
$ |
2,566 |
|
740-759 |
1,055 |
|
|
934 |
|
|
846 |
|
720-739 |
943 |
|
|
807 |
|
|
647 |
|
700-719 |
877 |
|
|
697 |
|
|
560 |
|
680-699 |
611 |
|
|
456 |
|
|
375 |
|
<=679 |
543 |
|
|
415 |
|
|
246 |
|
Total |
$ |
6,876 |
|
|
$ |
6,115 |
|
|
$ |
5,240 |
|
Weighted average
FICO |
743 |
|
|
747 |
|
|
764 |
|
|
|
|
|
|
|
|
|
|
|
|
Primary NIW by
LTV |
For the three months ended |
|
December 31, 2017 |
|
September 30, 2017 |
|
December 31, 2016 |
|
(In Millions) |
95.01%
and above |
$ |
988 |
|
|
$ |
722 |
|
|
$ |
355 |
|
90.01% to
95.00% |
2,889 |
|
|
2,714 |
|
|
2,224 |
|
85.01% to
90.00% |
1,870 |
|
|
1,765 |
|
|
1,580 |
|
85.00%
and below |
1,129 |
|
|
914 |
|
|
1,081 |
|
Total |
$ |
6,876 |
|
|
$ |
6,115 |
|
|
$ |
5,240 |
|
Weighted average
LTV |
92.3 |
% |
|
92.3 |
% |
|
91.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
Primary NIW by
purchase/refinance mix |
For the three months ended |
|
December 31, 2017 |
|
September 30, 2017 |
|
December 31, 2016 |
|
(In Millions) |
Purchase |
$ |
5,738 |
|
|
$ |
5,387 |
|
|
$ |
3,776 |
|
Refinance |
1,137 |
|
|
728 |
|
|
1,464 |
|
Total |
$ |
6,876 |
|
|
$ |
6,115 |
|
|
$ |
5,240 |
|
|
|
|
|
|
|
|
|
|
|
|
|
The table below presents a summary of our primary IIF and RIF
by book year as of the dates indicated.
|
|
Primary IIF and
RIF |
As of December 31, 2017 |
|
IIF |
|
RIF |
|
(In Millions) |
December 31, 2017 |
$ |
20,739 |
|
|
$ |
5,059 |
|
2016 |
18,066 |
|
|
4,383 |
|
2015 |
8,256 |
|
|
2,051 |
|
2014 |
1,368 |
|
|
341 |
|
2013 |
36 |
|
|
9 |
|
Total |
$ |
48,465 |
|
|
$ |
11,843 |
|
|
|
|
|
|
|
|
|
The tables below present our total primary IIF and RIF by FICO and
LTV and total primary RIF by loan type as of the dates
indicated.
|
|
Primary IIF by
FICO |
As of |
|
December 31, 2017 |
|
September 30, 2017 |
|
December 31, 2016 |
|
(In Millions) |
>=
760 |
$ |
23,438 |
|
|
$ |
21,329 |
|
|
$ |
16,166 |
|
740-759 |
7,781 |
|
|
6,983 |
|
|
5,248 |
|
720-739 |
6,259 |
|
|
5,547 |
|
|
4,130 |
|
700-719 |
5,179 |
|
|
4,505 |
|
|
3,245 |
|
680-699 |
3,408 |
|
|
2,942 |
|
|
2,151 |
|
<=679 |
2,400 |
|
|
1,953 |
|
|
1,228 |
|
Total |
$ |
48,465 |
|
|
$ |
43,259 |
|
|
$ |
32,168 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Primary RIF by
FICO |
As of |
|
December 31, 2017 |
|
September 30, 2017 |
|
December 31, 2016 |
|
(In Millions) |
>=
760 |
$ |
5,764 |
|
|
$ |
5,251 |
|
|
$ |
3,934 |
|
740-759 |
1,909 |
|
|
1,713 |
|
|
1,281 |
|
720-739 |
1,527 |
|
|
1,349 |
|
|
1,000 |
|
700-719 |
1,256 |
|
|
1,092 |
|
|
782 |
|
680-699 |
821 |
|
|
707 |
|
|
511 |
|
<=679 |
566 |
|
|
460 |
|
|
282 |
|
Total |
$ |
11,843 |
|
|
$ |
10,572 |
|
|
$ |
7,790 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Primary IIF by
LTV |
As of |
|
December 31, 2017 |
|
September 30, 2017 |
|
December 31, 2016 |
|
(In Millions) |
95.01%
and above |
$ |
3,946 |
|
|
$ |
3,038 |
|
|
$ |
1,686 |
|
90.01% to
95.00% |
21,763 |
|
|
19,562 |
|
|
14,358 |
|
85.01% to
90.00% |
14,766 |
|
|
13,437 |
|
|
10,282 |
|
85.00%
and below |
7,990 |
|
|
7,222 |
|
|
5,842 |
|
Total |
$ |
48,465 |
|
|
$ |
43,259 |
|
|
$ |
32,168 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Primary RIF by
LTV |
As of |
|
December 31, 2017 |
|
September 30, 2017 |
|
December 31, 2016 |
|
(In Millions) |
95.01%
and above |
$ |
1,054 |
|
|
$ |
822 |
|
|
$ |
467 |
|
90.01% to
95.00% |
6,354 |
|
|
5,722 |
|
|
4,226 |
|
85.01% to
90.00% |
3,523 |
|
|
3,205 |
|
|
2,439 |
|
85.00%
and below |
912 |
|
|
823 |
|
|
658 |
|
Total |
$ |
11,843 |
|
|
$ |
10,572 |
|
|
$ |
7,790 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Primary RIF by
Loan Type |
As of |
|
December 31, 2017 |
|
September 30, 2017 |
|
December 31, 2016 |
|
|
|
|
|
|
Fixed |
98 |
% |
|
98 |
% |
|
99 |
% |
Adjustable rate mortgages: |
|
|
|
|
|
Less than
five years |
— |
|
|
— |
|
|
— |
|
Five
years and longer |
2 |
|
|
2 |
|
|
1 |
|
Total |
100 |
% |
|
100 |
% |
|
100 |
% |
|
|
|
|
|
|
|
|
|
The table below presents a summary of the change in total primary
IIF during the periods indicated.
|
|
Primary
IIF |
For the three months ended |
|
December 31, 2017 |
|
September 30, 2017 |
|
December 31, 2016 |
|
(In Millions) |
IIF, beginning of
period |
$ |
43,259 |
|
|
$ |
38,629 |
|
|
$ |
28,228 |
|
NIW |
6,876 |
|
|
6,115 |
|
|
5,240 |
|
Cancellations and other reductions |
(1,670 |
) |
|
(1,485 |
) |
|
(1,300 |
) |
IIF, end of period |
$ |
48,465 |
|
|
$ |
43,259 |
|
|
$ |
32,168 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Geographic Dispersion
The following table shows the distribution by state of our primary
RIF as of the periods indicated.
|
|
Top 10 primary
RIF by state |
As of |
|
December 31, 2017 |
|
September 30, 2017 |
|
December 31, 2016 |
California |
13.5 |
% |
|
13.6 |
% |
|
13.6 |
% |
Texas |
7.8 |
|
|
7.6 |
|
|
7.0 |
|
Virginia |
5.3 |
|
|
5.6 |
|
|
6.5 |
|
Arizona |
4.6 |
|
|
4.4 |
|
|
3.9 |
|
Florida |
4.5 |
|
|
4.3 |
|
|
4.5 |
|
Michigan |
3.7 |
|
|
3.7 |
|
|
3.7 |
|
Pennsylvania |
3.6 |
|
|
3.6 |
|
|
3.6 |
|
Colorado |
3.6 |
|
|
3.8 |
|
|
3.9 |
|
Maryland |
3.5 |
|
|
3.6 |
|
|
3.7 |
|
Utah |
3.5 |
|
|
3.6 |
|
|
3.7 |
|
Total |
53.6 |
% |
|
53.8 |
% |
|
54.1 |
% |
|
|
|
|
|
|
|
|
|
The following table shows portfolio data by book year, as of
December 31, 2017.
|
|
|
As of December 31, 2017 |
Book
year |
OriginalInsuranceWritten |
|
RemainingInsurance inForce |
|
%Remainingof Original Insurance |
|
PoliciesEver inForce |
|
Number ofPolicies inForce |
|
Numberof Loansin Default |
|
# ofClaimsPaid |
|
IncurredLoss Ratio(Inception toDate)
(1) |
|
Cumulativedefault rate (2) |
|
($ Values in Millions) |
2013 |
$ |
162 |
|
|
$ |
36 |
|
|
22 |
% |
|
655 |
|
|
187 |
|
|
1 |
|
|
1 |
|
|
0.2 |
% |
|
0.3 |
% |
2014 |
3,451 |
|
|
1,368 |
|
|
40 |
% |
|
14,786 |
|
|
6,970 |
|
|
80 |
|
|
14 |
|
|
4.0 |
% |
|
0.6 |
% |
2015 |
12,422 |
|
|
8,256 |
|
|
66 |
% |
|
52,548 |
|
|
37,771 |
|
|
316 |
|
|
17 |
|
|
2.8 |
% |
|
0.6 |
% |
2016 |
21,187 |
|
|
18,066 |
|
|
85 |
% |
|
83,626 |
|
|
73,986 |
|
|
363 |
|
|
6 |
|
|
2.3 |
% |
|
0.4 |
% |
2017 |
21,587 |
|
|
20,739 |
|
|
96 |
% |
|
85,912 |
|
|
83,437 |
|
|
168 |
|
|
— |
|
|
2.4 |
% |
|
0.2 |
% |
Total |
$ |
58,809 |
|
|
$ |
48,465 |
|
|
|
|
237,527 |
|
|
202,351 |
|
|
928 |
|
|
38 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
The ratio of claims incurred (paid and reserved)
divided by cumulative premiums earned, net of
reinsurance.(2)
The sum of claims paid ever to date and notices of default as of
the end of the period divided by policies ever in force.
The following table provides a reconciliation of the beginning and
ending reserve balances for primary insurance claims and claims
expenses:
|
|
|
|
|
For the three months ended |
|
For the year ended |
|
December 31,2017 |
|
December 31,2016 |
|
December 31,2017 |
|
December 31,2016 |
|
|
|
|
|
|
|
|
|
(In Thousands) |
Beginning balance |
$ |
6,123 |
|
|
$ |
2,133 |
|
|
$ |
3,001 |
|
|
$ |
679 |
|
Less reinsurance
recoverables (1) |
(1,174 |
) |
|
(90 |
) |
|
(297 |
) |
|
— |
|
Beginning balance, net
of reinsurance recoverables |
4,949 |
|
|
2,043 |
|
|
2,704 |
|
|
679 |
|
|
|
|
|
|
|
|
|
Add claims
incurred: |
|
|
|
|
|
|
|
Claims
and claim expenses incurred: |
|
|
|
|
|
|
|
Current
year (2) |
2,594 |
|
|
654 |
|
|
6,140 |
|
|
2,457 |
|
Prior
years (3) |
(220 |
) |
|
149 |
|
|
(801 |
) |
|
(65 |
) |
Total claims and claims
expenses incurred |
2,374 |
|
|
803 |
|
|
5,339 |
|
|
2,392 |
|
|
|
|
|
|
|
|
|
Less claims paid: |
|
|
|
|
|
|
|
Claims
and claim expenses paid: |
|
|
|
|
|
|
|
Current
year (2) |
27 |
|
|
171 |
|
|
27 |
|
|
171 |
|
Prior
years (3) |
437 |
|
|
(29 |
) |
|
1,157 |
|
|
196 |
|
Total claims and claim
expenses paid |
464 |
|
|
142 |
|
|
1,184 |
|
|
367 |
|
|
|
|
|
|
|
|
|
Reserve at end of
period, net of reinsurance recoverables |
6,859 |
|
|
2,704 |
|
|
6,859 |
|
|
2,704 |
|
Add reinsurance
recoverables (1) |
1,902 |
|
|
297 |
|
|
1,902 |
|
|
297 |
|
Ending balance |
$ |
8,761 |
|
|
$ |
3,001 |
|
|
$ |
8,761 |
|
|
$ |
3,001 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Related to ceded losses recoverable on our 2016 quota-share
reinsurance transaction, included in "Other Assets" on the
Condensed Consolidated Balance Sheet.(2) Related to insured loans
with their most recent defaults occurring in the current year. For
example, if a loan had defaulted in a prior year and subsequently
cured and later re-defaulted in the current year, that default
would be included in the current year.(3) Related to insured loans
with defaults occurring in prior years, which have been
continuously in default since that time.
The following table provides a reconciliation of the beginning and
ending count of loans in default for the periods indicated.
|
|
|
|
|
For the three months ended |
|
For the year ended |
|
December 31,2017 |
|
December 31,2016 |
|
December 31,2017 |
|
December 31,2016 |
Beginning default
inventory |
350 |
|
|
115 |
|
|
179 |
|
|
36 |
|
Plus: new defaults |
783 |
|
|
126 |
|
|
1,262 |
|
|
284 |
|
Less: cures |
(194 |
) |
|
(59 |
) |
|
(486 |
) |
|
(132 |
) |
Less: claims paid |
(11 |
) |
|
(3 |
) |
|
(27 |
) |
|
(9 |
) |
Ending default
inventory |
928 |
|
|
179 |
|
|
928 |
|
|
179 |
|
|
|
|
|
|
|
|
|
|
|
|
|
The following tables provide details of our claims and reserves for
the periods indicated, before claims paid covered under the 2016
QSR Transaction.
|
|
|
|
|
For the three months ended |
|
For the year ended |
|
December 31,2017 |
|
December 31,2016 |
|
December 31,2017 |
|
December 31,2016 |
|
($ Values In Thousands) |
Number of claims
paid |
11 |
|
|
3 |
|
|
27 |
|
|
9 |
|
Total amount paid for
claims |
$ |
535 |
|
|
$ |
136 |
|
|
$ |
1,266 |
|
|
$ |
367 |
|
Average amount paid per
claim |
$ |
49 |
|
|
$ |
45 |
|
|
$ |
47 |
|
|
$ |
41 |
|
Severity(1) |
90 |
% |
|
65 |
% |
|
86 |
% |
|
64 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
(1) Severity represents the total amount of claims paid divided
by the related RIF on the loan at the time the claim is
perfected.
|
|
|
|
Average reserve
per default: |
As of December 31, 2017 |
|
As of December 31, 2016 |
|
(In Thousands) |
Case (1) |
$ |
8 |
|
|
$ |
15 |
|
IBNR |
1 |
|
|
2 |
|
Total |
$ |
9 |
|
|
$ |
17 |
|
|
|
|
|
|
|
|
|
(1) Defined as the gross reserve per insured loan in
default.
The following table provides a comparison of the PMIERs financial
requirements as reported by National MI as of the dates
indicated.
|
|
|
As of |
|
December 31, 2017 |
|
September 30, 3017 |
|
December 31, 2016 |
|
(In thousands) |
Available assets |
$ |
527,897 |
|
|
$ |
495,182 |
|
|
$ |
453,523 |
|
Risk-based required
assets |
446,226 |
|
|
356,207 |
|
|
366,584 |
|
|
|
|
|
|
|
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