NMI Holdings, Inc. (Nasdaq: NMIH) today reported net income of
$89.0 million, up 7% compared to $83.4 million in the fourth
quarter ended December 31, 2023 and up 20% compared to $74.5
million in the first quarter ended March 31, 2023. Diluted earnings
per share was $1.08, up 8% compared to $1.01 in the fourth quarter
ended December 31, 2023 and up 24% compared to $0.88 in the first
quarter ended March 31, 2023. Adjusted net income was also $89.0
million, or $1.08 per diluted share, compared to $83.4 million, or
$1.01 per diluted share, in the fourth quarter and $74.5 million,
or $0.88 per diluted share, in the first quarter of 2023.
Adam Pollitzer, President and Chief Executive
Officer of National MI, said, “In the first quarter, we again
delivered standout operating performance, continued growth in our
high-quality insured portfolio, record profitability and strong
returns. Our products and the support we provide are more important
today than ever before and we’re delivering unique solutions for
our customers and their borrowers. We have built an exceptionally
high-quality book covered by a comprehensive set of risk transfer
solutions, our credit performance continues to stand ahead, and we
have a robust balance sheet supported by the significant earnings
power of our platform. Looking forward, we’re well-positioned to
continue delivering differentiated growth, returns and value for
our shareholders.”
Selected first quarter 2024 highlights
include:
- Primary
insurance-in-force at quarter end was $199.4 billion, compared to
$197.0 billion at the end of the fourth quarter and $186.7 billion
at the end of the first quarter of 2023.
- Net premiums
earned were $136.7 million, compared to $132.9 million in the
fourth quarter and $121.8 million in the first quarter of
2023.
- Total revenue
was $156.3 million, compared to $151.4 million in the fourth
quarter and $136.8 million in the first quarter of 2023.
- Insurance claims
and claim expenses were $3.7 million, compared to $8.2 million in
the fourth quarter and $6.7 million in the first quarter of 2023.
Loss ratio was 2.7% compared to 6.2% in the fourth quarter and 5.5%
in the first quarter of 2023.
- Underwriting and
operating expenses were $29.8 million, compared to $29.7 million in
the fourth quarter and $25.8 million in the first quarter of 2023.
Expense ratio was 21.8% compared to 22.4% in the fourth quarter and
21.2% in the first quarter of 2023.
- Shareholders’
equity was $2.0 billion at quarter end and book value per share was
$24.56. Book value per share excluding the impact of net unrealized
gains and losses in the investment portfolio was $26.42, up 3%
compared to $25.54 in the fourth quarter and 17% compared to $22.56
in the first quarter of 2023.
- Annualized
return on equity for the quarter was 18.2%, compared to 18.0% in
the fourth quarter and 17.9% in the first quarter of 2023.
- At quarter-end,
total PMIERs available assets were $2.8 billion and net risk-based
required assets were $1.6 billion.
|
|
Quarter Ended |
Quarter Ended |
Quarter Ended |
Change (1) |
Change (1) |
|
|
3/31/2024 |
12/31/2023 |
3/31/2023 |
Q/Q |
Y/Y |
INSURANCE METRICS
($billions) |
Primary
Insurance-in-Force |
$ |
199.4 |
|
|
$ |
197.0 |
|
|
$ |
186.7 |
|
|
1 |
|
% |
7 |
|
% |
New Insurance
Written - NIW |
|
|
|
|
|
|
Monthly premium |
|
9.2 |
|
|
|
8.6 |
|
|
|
8.6 |
|
|
7 |
|
% |
7 |
|
% |
|
Single premium |
|
0.2 |
|
|
|
0.3 |
|
|
|
0.2 |
|
|
(29 |
) |
% |
21 |
|
% |
|
Total (2) |
|
9.4 |
|
|
|
8.9 |
|
|
|
8.7 |
|
|
5 |
|
% |
8 |
|
% |
|
|
|
|
|
|
FINANCIAL
HIGHLIGHTS (Unaudited, $millions, except per share amounts) |
|
|
|
|
|
|
Net Premiums
Earned |
|
136.7 |
|
|
|
132.9 |
|
|
|
121.8 |
|
|
3 |
|
% |
12 |
|
% |
Insurance Claims
and Claim Expenses |
|
3.7 |
|
|
|
8.2 |
|
|
|
6.7 |
|
|
(55 |
) |
% |
(45 |
) |
% |
Underwriting and
Operating Expenses |
|
29.8 |
|
|
|
29.7 |
|
|
|
25.8 |
|
|
— |
|
% |
16 |
|
% |
Net Income |
|
89.0 |
|
|
|
83.4 |
|
|
|
74.5 |
|
|
7 |
|
% |
20 |
|
% |
Book Value per
Share (excluding net unrealized gains and losses) (3) |
|
26.42 |
|
|
|
25.54 |
|
|
|
22.56 |
|
|
3 |
|
% |
17 |
|
% |
Loss Ratio |
|
2.7 |
|
% |
|
6.2 |
|
% |
|
5.5 |
|
% |
|
|
Expense Ratio |
|
21.8 |
|
% |
|
22.4 |
|
% |
|
21.2 |
|
% |
|
|
(1) |
Percentages may not be replicated based on the rounded figures
presented in the table. |
(2) |
Total may not foot due to rounding. |
(3) |
Book value per share (excluding net unrealized gains and losses) is
defined as total shareholders' equity, excluding the after-tax
effects of unrealized gains and losses on our investment portfolio,
divided by shares outstanding. |
|
|
Conference Call and Webcast Details
The company will hold a conference call, which
will be webcast live today, April 30, 2024, 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 conference call can also be accessed by dialing (844)
481-2708 in the U.S., or (412) 317-0664 internationally, by
referencing NMI Holdings, Inc.
About NMI Holdings, Inc.
NMI Holdings, Inc. (NASDAQ: NMIH), is the parent
company of National Mortgage Insurance Corporation (National MI), 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 Statements
Certain 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, Section 21E of the Securities
Exchange Act of 1934, as amended, and the U.S. Private Securities
Litigation Reform Act of 1995 (the “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,” “perceive,”
“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 general
economic, market and political conditions and policies (including
changes in interest rates and inflation) and investment results or
other conditions that affect the U.S. housing market or the U.S.
markets for home mortgages, mortgage insurance, reinsurance and
credit risk transfer markets, including the risk related to
geopolitical instability, inflation, an economic downturn
(including any decline in home prices) or recession, and their
impacts on our business, operations and personnel; changes in the
charters, business practices, policy, pricing or priorities of
Fannie Mae and Freddie Mac (collectively, the GSEs), which may
include decisions that have the impact of decreasing or
discontinuing the use of mortgage insurance as credit enhancement
generally, or with first time homebuyers or on very high
loan-to-value mortgages; or changes in the direction of housing
policy objectives of the Federal Housing Finance Agency (“FHFA”),
such as the FHFA’s priority to increase the accessibility to and
affordability of homeownership for low-and-moderate income
borrowers and underrepresented communities; our ability to remain
an eligible mortgage insurer under the 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 government mortgage
insurers such as the Federal Housing Administration, the U.S.
Department of Agriculture’s Rural Housing Service and the U.S.
Department of Veterans Affairs, and potential market entry by new
competitors or consolidation of existing competitors; adoption of
new or changes to existing laws, rules and regulations that impact
our business or financial condition directly or the mortgage
insurance industry generally or their enforcement and
implementation by regulators, including the implementation of the
final rules defining and/or concerning “Qualified Mortgage” and
“Qualified Residential Mortgage”; U.S. federal tax reform and other
potential changes in tax law and their impact on us and our
operations; legislative or regulatory changes to the GSEs’ role in
the secondary mortgage market or other changes that could affect
the residential mortgage industry generally or mortgage insurance
industry in particular; potential legal and regulatory claims,
investigations, actions, audits or inquiries that could result in
adverse judgements, settlements, fines or other reliefs that could
require significant expenditures or have other negative effects on
our business; uncertainty relating to the coronavirus virus and its
variants, including their impact on the global economy, the U.S.
housing, real estate, housing finance and mortgage insurance
markets, and our business, operations and personnel; our ability to
successfully execute and implement our capital plans, including our
ability to access the equity, credit and reinsurance markets and to
enter into, and receive approval of, reinsurance arrangements on
terms and conditions that are acceptable to us, the GSEs and our
regulators; lenders, the GSEs, or other market participants seeking
alternatives to private mortgage insurance; our ability to
implement our business strategy, including our ability to write
mortgage insurance on high quality 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 risk management or pricing or investment strategies;
decrease in the length of time our insurance policies are in force;
emergence of unexpected claim and coverage issues, including claims
exceeding our reserves or amounts we had expected to experience;
potential adverse impacts arising from natural disasters including,
with respect to affected areas, a decline in new business, adverse
effects on home prices, and an increase in notices of default on
insured mortgages; climate risk and efforts to manage or regulate
climate risk by government agencies could affect our business and
operations; potential adverse impacts arising from the occurrence
of any man-made disasters or public health emergencies, including
pandemics; the inability of our counter-parties, including third
party reinsurers, to meet their obligations to us; failure to
maintain, improve and continue to develop necessary information
technology systems or the failure of technology providers to
perform; effectiveness and security of our information technology
systems and digital products and services, including the risks
these systems, products or services may fail to operate as expected
or planned, or expose us to cybersecurity or third-party risks
(including the exposure of our confidential customer and other
information); and 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, 2023, 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 the use of the non-GAAP measures of
adjusted income before tax, adjusted net income, adjusted diluted
EPS, adjusted return-on-equity, adjusted expense ratio, adjusted
combined ratio and book value per share (excluding net unrealized
gains and losses) enhances the comparability of our fundamental
financial performance between periods, and provides 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 prepared in accordance with GAAP
and should not be viewed as alternatives to GAAP measures of
performance. These measures have been presented to increase
transparency and enhance the comparability of our fundamental
operating trends across periods. Other companies may calculate
these measures differently; their measures may not be comparable to
those we calculate and present.
Adjusted income before tax is
defined as GAAP income before tax, excluding the pre-tax effects
of net realized gains or losses from our investment portfolio,
periodic costs incurred in connection with capital markets
transactions, and other infrequent, unusual or non-operating items
in the periods in which such items are incurred.
Adjusted net income is defined
as GAAP net income, excluding the after-tax effects of net
realized gains or losses from our investment portfolio, periodic
costs incurred in connection with capital markets transactions, and
other infrequent, unusual or non-operating items in the periods in
which such items are incurred. Adjustments to components of pre-tax
income are tax effected using the applicable federal statutory tax
rate for the respective periods.
Adjusted diluted EPS is defined
as adjusted net income divided by adjusted weighted average diluted
shares outstanding. Adjusted weighted average diluted shares
outstanding is defined as weighted average diluted shares
outstanding, adjusted for changes in the dilutive effect of
non-vested shares that would otherwise have occurred had GAAP net
income been calculated in accordance with adjusted net income.
There will be no adjustment to weighted average diluted shares
outstanding in the periods that non-vested shares are anti-dilutive
under GAAP.
Adjusted return on equity is
calculated by dividing adjusted net income on an annualized basis
by the average shareholders' equity for the period.
Adjusted expense ratio is
defined as GAAP underwriting and operating expenses, excluding the
pre-tax effects of periodic costs incurred in connection with
capital markets transactions, divided by net premiums earned.
Adjusted combined ratio is
defined as the total of GAAP underwriting and operating expenses,
excluding the pre-tax effects of periodic costs incurred in
connection with capital markets transactions and insurance claims
and claims expenses, divided by net premiums earned.
Book value per share (excluding net
unrealized gains and losses) is defined as total
shareholder's equity, excluding the after-tax effects of unrealized
gains and losses on investments, divided by shares outstanding.
Although adjusted income before tax, adjusted
net income, adjusted diluted EPS, adjusted return-on-equity,
adjusted expense ratio, adjusted combined ratio and book value per
share (excluding net unrealized gains and losses) exclude certain
items that have occurred in the past and are expected to occur in
the future, the excluded items: (1) are not viewed as part of the
operating performance of our primary activities; or (2) are
impacted by market, economic or regulatory factors and are not
necessarily indicative of operating trends, or both. These
adjustments, and the reasons for their treatment, are described
below.
|
(1) |
Net realized investment gains and losses. The recognition of the
net realized investment gains or losses can vary significantly
across periods as the timing is highly discretionary and is
influenced by factors such as market opportunities, tax and capital
profile, and overall market cycles that do not reflect our current
period operating results. |
|
|
|
|
(2) |
Capital markets transaction costs. Capital markets transaction
costs result from activities that are undertaken to improve our
debt profile or enhance our capital position through activities
such as debt refinancing and capital markets reinsurance
transactions that may vary in their size and timing due to factors
such as market opportunities, tax and capital profile, and overall
market cycles. |
|
|
|
|
(3) |
Other infrequent, unusual or non-operating items. Items that are
the result of unforeseen or uncommon events, and are not expected
to recur with frequency in the future. Identification and exclusion
of these items provides clarity about the impact special or rare
occurrences may have on our current financial performance. Past
adjustments under this category include infrequent, unusual or
non-operating adjustments related to severance, restricted stock
modification and other expenses incurred in connection with the CEO
transition announced in September 2021 and the effects of the
release of the valuation allowance recorded against our net federal
and certain state net deferred tax assets in 2016 and the
re-measurement of our net deferred tax assets in connection with
tax reform in 2017. We believe such items are infrequent or
non-recurring in nature, and are not indicative of the performance
of, or ongoing trends in, our primary operating activities or
business. |
|
|
|
|
(4) |
Net unrealized gains and losses on investments. The recognition of
the net unrealized gains or losses on investment can vary
significantly across periods and is influenced by factors such as
interest rate movement, overall market and economic conditions, and
tax and capital profiles. These valuation adjustments may not
necessarily result in economic gains or losses and not reflective
of ongoing operations. Trends in the profitability of our
fundamental operating activities can be more clearly identified
without the fluctuations of these unrealized gains or losses. |
|
|
|
Investor ContactJohn M.
SwensonVice President, Investor Relations and
Treasuryjohn.swenson@nationalmi.com (510) 788-8417
Consolidated
statements of operations and comprehensive income
(unaudited) |
For the three months ended March 31, |
|
2024 |
|
2023 |
|
(In Thousands, except for per share data) |
Revenues |
|
|
|
Net premiums earned |
$ |
136,657 |
|
|
$ |
121,754 |
|
Net investment income |
|
19,436 |
|
|
|
14,894 |
|
Net realized investment losses |
|
— |
|
|
|
(33 |
) |
Other revenues |
|
160 |
|
|
|
164 |
|
Total revenues |
|
156,253 |
|
|
|
136,779 |
|
Expenses |
|
|
|
Insurance claims and claim expenses |
|
3,694 |
|
|
|
6,701 |
|
Underwriting and operating expenses |
|
29,815 |
|
|
|
25,786 |
|
Service expenses |
|
137 |
|
|
|
80 |
|
Interest expense |
|
8,040 |
|
|
|
8,039 |
|
Total expenses |
|
41,686 |
|
|
|
40,606 |
|
|
|
|
|
Income before income
taxes |
|
114,567 |
|
|
|
96,173 |
|
Income tax expense |
|
25,517 |
|
|
|
21,715 |
|
Net income |
$ |
89,050 |
|
|
$ |
74,458 |
|
|
|
|
|
Earnings per share |
|
|
|
Basic |
$ |
1.10 |
|
|
$ |
0.89 |
|
Diluted |
$ |
1.08 |
|
|
$ |
0.88 |
|
|
|
|
|
Weighted average common shares
outstanding |
|
|
|
Basic |
|
80,726 |
|
|
|
83,600 |
|
Diluted |
|
82,099 |
|
|
|
84,840 |
|
|
|
|
|
Loss ratio (1) |
|
2.7 |
% |
|
|
5.5 |
% |
Expense ratio (2) |
|
21.8 |
% |
|
|
21.2 |
% |
Combined ratio |
|
24.5 |
% |
|
|
26.7 |
% |
|
|
|
|
Net income |
$ |
89,050 |
|
|
$ |
74,458 |
|
Other comprehensive (loss)
income, net of tax: |
|
|
|
Unrealized (losses) gains in
accumulated other comprehensive income, net of tax (benefit)
expense of $(2,729) and $8,633 for the quarters ended
March 31, 2024 and 2023, respectively |
|
(9,905 |
) |
|
|
32,476 |
|
Reclassification adjustment
for realized losses included in net income, net of tax benefit of
$7 for the quarter ended March 31, 2023 |
|
— |
|
|
|
26 |
|
Other comprehensive (loss)
income, net of tax |
|
(9,905 |
) |
|
|
32,502 |
|
Comprehensive income |
$ |
79,145 |
|
|
$ |
106,960 |
|
(1) |
Loss ratio is calculated by dividing insurance claims and claim
expenses by net premiums earned. |
(2) |
Expense ratio is calculated by dividing underwriting and operating
expenses by net premiums earned. |
|
|
Consolidated balance
sheets (unaudited) |
March 31, 2024 |
|
December 31, 2023 |
Assets |
(In Thousands, except for share data) |
Fixed maturities, available-for-sale, at fair value (amortized cost
of $2,577,990 and $2,542,862 as of March 31, 2024 and
December 31, 2023, respectively) |
$ |
2,393,525 |
|
|
$ |
2,371,021 |
|
Cash and cash equivalents (including restricted cash of $1,137 and
$1,338 as of March 31, 2024 and December 31, 2023,
respectively) |
|
139,726 |
|
|
|
96,689 |
|
Premiums receivable |
|
75,362 |
|
|
|
76,456 |
|
Accrued investment income |
|
19,860 |
|
|
|
19,785 |
|
Deferred policy acquisition costs, net |
|
62,801 |
|
|
|
62,905 |
|
Software and equipment, net |
|
30,308 |
|
|
|
30,252 |
|
Intangible assets and goodwill |
|
3,634 |
|
|
|
3,634 |
|
Reinsurance recoverable |
|
27,880 |
|
|
|
27,514 |
|
Prepaid federal income taxes |
|
235,286 |
|
|
|
235,286 |
|
Other assets |
|
17,730 |
|
|
|
16,965 |
|
Total assets |
$ |
3,006,112 |
|
|
$ |
2,940,507 |
|
|
|
|
|
Liabilities |
|
|
|
Debt |
$ |
398,001 |
|
|
$ |
397,595 |
|
Unearned premiums |
|
85,784 |
|
|
|
92,295 |
|
Accounts payable and accrued expenses |
|
81,831 |
|
|
|
86,189 |
|
Reserve for insurance claims and claim expenses |
|
127,182 |
|
|
|
123,974 |
|
Deferred tax liability, net |
|
322,651 |
|
|
|
301,573 |
|
Other liabilities (1) |
|
12,282 |
|
|
|
12,877 |
|
Total liabilities |
|
1,027,731 |
|
|
|
1,014,503 |
|
|
|
|
|
Shareholders' equity |
|
|
|
Common stock - class A shares, $0.01 par value; 87,838,602 shares
issued and 80,545,535 shares outstanding as of March 31, 2024
and 87,334,138 shares issued and 80,881,280 shares outstanding as
of December 31, 2023 (250,000,000 shares authorized) |
|
878 |
|
|
|
873 |
|
Additional paid-in capital |
|
989,349 |
|
|
|
990,816 |
|
Treasury Stock, at cost: 7,293,067 and 6,452,858 common shares as
of March 31, 2024 and December 31, 2023,
respectively |
|
(174,227 |
) |
|
|
(148,921 |
) |
Accumulated other comprehensive loss, net of tax |
|
(149,822 |
) |
|
|
(139,917 |
) |
Retained earnings |
|
1,312,203 |
|
|
|
1,223,153 |
|
Total shareholders'
equity |
|
1,978,381 |
|
|
|
1,926,004 |
|
Total liabilities and
shareholders' equity |
$ |
3,006,112 |
|
|
$ |
2,940,507 |
|
(1) |
“Reinsurance funds withheld” has been reclassified as “Other
liabilities” in the prior period. |
|
|
Non-GAAP
Financial Measure Reconciliations (unaudited) |
|
As of and for the three months ended |
|
3/31/2024 |
|
12/31/2023 |
|
3/31/2023 |
As
Reported |
(In Thousands, except for per share data) |
Revenues |
|
|
|
|
|
Net premiums earned |
$ |
136,657 |
|
|
|
$ |
132,940 |
|
|
|
$ |
121,754 |
|
|
Net investment income |
|
19,436 |
|
|
|
|
18,247 |
|
|
|
|
14,894 |
|
|
Net realized investment losses |
|
— |
|
|
|
|
— |
|
|
|
|
(33 |
) |
|
Other revenues |
|
160 |
|
|
|
|
193 |
|
|
|
|
164 |
|
|
Total revenues |
|
156,253 |
|
|
|
|
151,380 |
|
|
|
|
136,779 |
|
|
Expenses |
|
|
|
|
|
Insurance claims and claim expenses |
|
3,694 |
|
|
|
|
8,232 |
|
|
|
|
6,701 |
|
|
Underwriting and operating expenses |
|
29,815 |
|
|
|
|
29,716 |
|
|
|
|
25,786 |
|
|
Service expenses |
|
137 |
|
|
|
|
185 |
|
|
|
|
80 |
|
|
Interest expense |
|
8,040 |
|
|
|
|
8,066 |
|
|
|
|
8,039 |
|
|
Total expenses |
|
41,686 |
|
|
|
|
46,199 |
|
|
|
|
40,606 |
|
|
|
|
|
|
|
|
Income before income
taxes |
|
114,567 |
|
|
|
|
105,181 |
|
|
|
|
96,173 |
|
|
Income tax expense |
|
25,517 |
|
|
|
|
21,768 |
|
|
|
|
21,715 |
|
|
Net
income |
$ |
89,050 |
|
|
|
$ |
83,413 |
|
|
|
$ |
74,458 |
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
Net realized investment
losses |
|
— |
|
|
|
|
— |
|
|
|
|
33 |
|
|
Adjusted income before
taxes |
|
114,567 |
|
|
|
|
105,181 |
|
|
|
|
96,206 |
|
|
|
|
|
|
|
|
Income tax expense on
adjustments (1) |
|
— |
|
|
|
|
— |
|
|
|
|
7 |
|
|
Adjusted net
income |
$ |
89,050 |
|
|
|
$ |
83,413 |
|
|
|
$ |
74,484 |
|
|
|
|
|
|
|
|
Weighted average diluted
shares outstanding |
|
82,099 |
|
|
|
|
82,685 |
|
|
|
|
84,840 |
|
|
|
|
|
|
|
|
Diluted
EPS |
$ |
1.08 |
|
|
|
$ |
1.01 |
|
|
|
$ |
0.88 |
|
|
Adjusted diluted
EPS |
$ |
1.08 |
|
|
|
$ |
1.01 |
|
|
|
$ |
0.88 |
|
|
|
|
|
|
|
|
Return-on-equity |
|
18.2 |
|
% |
|
|
18.0 |
|
% |
|
|
17.9 |
|
% |
Adjusted
return-on-equity |
|
18.2 |
|
% |
|
|
18.0 |
|
% |
|
|
17.9 |
|
% |
|
|
|
|
|
|
Expense ratio
(2) |
|
21.8 |
|
% |
|
|
22.4 |
|
% |
|
|
21.2 |
|
% |
Adjusted expense
ratio (3) |
|
21.8 |
|
% |
|
|
22.4 |
|
% |
|
|
21.2 |
|
% |
|
|
|
|
|
|
Combined
ratio (4) |
|
24.5 |
|
% |
|
|
28.5 |
|
% |
|
|
26.7 |
|
% |
Adjusted combined
ratio (5) |
|
24.5 |
|
% |
|
|
28.5 |
|
% |
|
|
26.7 |
|
% |
|
|
|
|
|
|
Book value per
share (6) |
$ |
24.56 |
|
|
|
$ |
23.81 |
|
|
|
$ |
20.49 |
|
|
Book value per share
(excluding net unrealized gains and losses)
(7) |
$ |
26.42 |
|
|
|
$ |
25.54 |
|
|
|
$ |
22.56 |
|
|
(1) |
Marginal tax impact of non-GAAP adjustments is calculated based on
our statutory U.S. federal corporate income tax rate of 21%, except
for those items that are not eligible for an income tax
deduction. |
(2) |
Expense ratio is calculated by dividing underwriting and operating
expenses by net premiums earned. |
(3) |
Adjusted expense ratio is calculated by dividing adjusted
underwriting and operating expense (underwriting and operating
expenses excluding costs related to capital markets reinsurance
transactions) by net premiums earned. |
(4) |
Combined ratio is calculated by dividing the total of underwriting
and operating expenses and insurance claims and claim expenses by
net premiums earned. |
(5) |
Adjusted combined ratio is calculated by dividing the total of
adjusted underwriting and operating expenses (underwriting and
operating expenses excluding costs related to capital market
reinsurance transaction) and insurance claims and claim expenses by
net premiums earned. |
(6) |
Book value per share is calculated by dividing total shareholder's
equity by shares outstanding. |
(7) |
Book value per share (excluding net unrealized gains and losses) is
defined as total shareholder's equity, excluding the after-tax
effects of unrealized gains and losses on our investment portfolio,
divided by shares outstanding. |
|
|
Historical Quarterly
Data |
2024 |
|
2023 |
|
March 31 |
|
December 31 |
|
September 30 |
|
June 30 |
|
March 31 |
|
(In Thousands, except for per share data) |
Revenues |
|
|
|
|
|
|
|
|
|
Net premiums earned |
$ |
136,657 |
|
|
|
$ |
132,940 |
|
|
|
$ |
130,089 |
|
|
|
$ |
125,985 |
|
|
|
$ |
121,754 |
|
|
Net investment income |
|
19,436 |
|
|
|
|
18,247 |
|
|
|
|
17,853 |
|
|
|
|
16,518 |
|
|
|
|
14,894 |
|
|
Net realized investment (losses) gain |
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
(33 |
) |
|
Other revenues |
|
160 |
|
|
|
|
193 |
|
|
|
|
217 |
|
|
|
|
182 |
|
|
|
|
164 |
|
|
Total revenues |
|
156,253 |
|
|
|
|
151,380 |
|
|
|
|
148,159 |
|
|
|
|
142,685 |
|
|
|
|
136,779 |
|
|
Expenses |
|
|
|
|
|
|
|
|
|
Insurance claims and claim expenses |
|
3,694 |
|
|
|
|
8,232 |
|
|
|
|
4,812 |
|
|
|
|
2,873 |
|
|
|
|
6,701 |
|
|
Underwriting and operating expenses |
|
29,815 |
|
|
|
|
29,716 |
|
|
|
|
27,749 |
|
|
|
|
27,448 |
|
|
|
|
25,786 |
|
|
Service expenses |
|
137 |
|
|
|
|
185 |
|
|
|
|
239 |
|
|
|
|
267 |
|
|
|
|
80 |
|
|
Interest expense |
|
8,040 |
|
|
|
|
8,066 |
|
|
|
|
8,059 |
|
|
|
|
8,048 |
|
|
|
|
8,039 |
|
|
Total expenses |
|
41,686 |
|
|
|
|
46,199 |
|
|
|
|
40,859 |
|
|
|
|
38,636 |
|
|
|
|
40,606 |
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes |
|
114,567 |
|
|
|
|
105,181 |
|
|
|
|
107,300 |
|
|
|
|
104,049 |
|
|
|
|
96,173 |
|
|
Income tax expense |
|
25,517 |
|
|
|
|
21,768 |
|
|
|
|
23,345 |
|
|
|
|
23,765 |
|
|
|
|
21,715 |
|
|
Net income |
$ |
89,050 |
|
|
|
$ |
83,413 |
|
|
|
$ |
83,955 |
|
|
|
$ |
80,284 |
|
|
|
$ |
74,458 |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share |
|
|
|
|
|
|
|
|
|
Basic |
$ |
1.10 |
|
|
|
$ |
1.03 |
|
|
|
$ |
1.02 |
|
|
|
$ |
0.97 |
|
|
|
$ |
0.89 |
|
|
Diluted |
$ |
1.08 |
|
|
|
$ |
1.01 |
|
|
|
$ |
1.00 |
|
|
|
$ |
0.95 |
|
|
|
$ |
0.88 |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares
outstanding |
|
|
|
|
|
|
|
|
|
Basic |
|
80,726 |
|
|
|
|
81,005 |
|
|
|
|
82,096 |
|
|
|
|
82,958 |
|
|
|
|
83,600 |
|
|
Diluted |
|
82,099 |
|
|
|
|
82,685 |
|
|
|
|
83,670 |
|
|
|
|
84,190 |
|
|
|
|
84,840 |
|
|
|
|
|
|
|
|
|
|
|
|
Other data |
|
|
|
|
|
|
|
|
|
Loss ratio (1) |
|
2.7 |
|
% |
|
|
6.2 |
|
% |
|
|
3.7 |
|
% |
|
|
2.3 |
|
% |
|
|
5.5 |
|
% |
Expense ratio (2) |
|
21.8 |
|
% |
|
|
22.4 |
|
% |
|
|
21.3 |
|
% |
|
|
21.8 |
|
% |
|
|
21.2 |
|
% |
Combined ratio (3) |
|
24.5 |
|
% |
|
|
28.5 |
|
% |
|
|
25.0 |
|
% |
|
|
24.1 |
|
% |
|
|
26.7 |
|
% |
(1) |
Loss ratio is calculated by dividing insurance claims and claim
expenses by net premiums earned. |
(2) |
Expense ratio is calculated by dividing underwriting and operating
expenses by net premiums earned. |
(3) |
Combined ratio may not foot due to rounding. |
|
|
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 |
|
March 31, 2024 |
|
December 31, 2023 |
|
September 30, 2023 |
|
June 30, 2023 |
|
March 31, 2023 |
|
($ Values In Millions, except as noted below) |
New insurance written (NIW) |
$ |
9,398 |
|
|
|
$ |
8,927 |
|
|
|
$ |
11,334 |
|
|
|
$ |
11,478 |
|
|
|
$ |
8,734 |
|
|
New risk written |
|
2,486 |
|
|
|
|
2,354 |
|
|
|
|
3,027 |
|
|
|
|
3,022 |
|
|
|
|
2,258 |
|
|
Insurance-in-force (IIF) (1) |
|
199,373 |
|
|
|
|
197,029 |
|
|
|
|
194,781 |
|
|
|
|
191,306 |
|
|
|
|
186,724 |
|
|
Risk-in-force (RIF) (1) |
|
52,610 |
|
|
|
|
51,796 |
|
|
|
|
51,011 |
|
|
|
|
49,875 |
|
|
|
|
48,494 |
|
|
Policies in force (count) (1) |
|
635,662 |
|
|
|
|
629,690 |
|
|
|
|
622,993 |
|
|
|
|
611,441 |
|
|
|
|
600,294 |
|
|
Average loan size ($ value in thousands) (1) |
$ |
314 |
|
|
|
$ |
313 |
|
|
|
$ |
313 |
|
|
|
$ |
313 |
|
|
|
$ |
311 |
|
|
Coverage percentage (2) |
|
26.4 |
|
% |
|
|
26.3 |
|
% |
|
|
26.2 |
|
% |
|
|
26.1 |
|
% |
|
|
26.0 |
|
% |
Loans in default (count) (1) |
|
5,109 |
|
|
|
|
5,099 |
|
|
|
|
4,594 |
|
|
|
|
4,349 |
|
|
|
|
4,475 |
|
|
Default rate (1) |
|
0.80 |
|
% |
|
|
0.81 |
|
% |
|
|
0.74 |
|
% |
|
|
0.71 |
|
% |
|
|
0.75 |
|
% |
Risk-in-force on defaulted loans (1) |
$ |
414 |
|
|
|
$ |
408 |
|
|
|
$ |
359 |
|
|
|
$ |
335 |
|
|
|
$ |
337 |
|
|
Average net premium yield (3) |
|
0.28 |
|
% |
|
|
0.27 |
|
% |
|
|
0.27 |
|
% |
|
|
0.27 |
|
% |
|
|
0.26 |
|
% |
Earnings from cancellations |
$ |
0.6 |
|
|
|
$ |
1.0 |
|
|
|
$ |
0.9 |
|
|
|
$ |
1.1 |
|
|
|
$ |
1.4 |
|
|
Annual persistency (4) |
|
85.8 |
|
% |
|
|
86.1 |
|
% |
|
|
86.2 |
|
% |
|
|
86.0 |
|
% |
|
|
85.1 |
|
% |
Quarterly run-off (5) |
|
3.6 |
|
% |
|
|
3.4 |
|
% |
|
|
4.1 |
|
% |
|
|
3.7 |
|
% |
|
|
3.2 |
|
% |
(1) |
Reported as of the end of the period. |
(2) |
Calculated as end of period RIF divided by end of period IIF. |
(3) |
Calculated as net premiums earned, divided by average primary IIF
for the period, annualized. |
(4) |
Defined as the percentage of IIF that remains on our books after a
given twelve-month period. |
(5) |
Defined as the percentage of IIF that is no longer on our books
after a given three-month period. |
|
|
NIW, IIF and Premiums
The tables below present primary NIW and primary and pool IIF,
as of the dates and for the periods indicated.
Primary
NIW |
For the three months ended |
|
March 31, 2024 |
|
December 31, 2023 |
|
September 30, 2023 |
|
June 30, 2023 |
|
March 31, 2023 |
|
(In Millions) |
Monthly |
$ |
9,175 |
|
|
$ |
8,614 |
|
|
$ |
11,038 |
|
|
$ |
11,266 |
|
|
$ |
8,550 |
|
Single |
|
223 |
|
|
|
313 |
|
|
|
296 |
|
|
|
212 |
|
|
|
184 |
|
Primary |
$ |
9,398 |
|
|
$ |
8,927 |
|
|
$ |
11,334 |
|
|
$ |
11,478 |
|
|
$ |
8,734 |
|
Primary and pool
IIF |
As of |
|
March 31, 2024 |
|
December 31, 2023 |
|
September 30, 2023 |
|
June 30, 2023 |
|
March 31, 2023 |
|
(In Millions) |
Monthly |
$ |
180,343 |
|
|
$ |
177,764 |
|
|
$ |
175,308 |
|
|
$ |
171,685 |
|
|
$ |
166,924 |
|
Single |
|
19,030 |
|
|
|
19,265 |
|
|
|
19,473 |
|
|
|
19,621 |
|
|
|
19,800 |
|
Primary |
|
199,373 |
|
|
|
197,029 |
|
|
|
194,781 |
|
|
|
191,306 |
|
|
|
186,724 |
|
|
|
|
|
|
|
|
|
|
|
Pool |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,000 |
|
|
|
1,025 |
|
Total |
$ |
199,373 |
|
|
$ |
197,029 |
|
|
$ |
194,781 |
|
|
$ |
192,306 |
|
|
$ |
187,749 |
|
The following table presents the amounts related
to the company's quota-share reinsurance transactions (the 2016 QSR
Transaction, 2018 QSR Transaction, 2020 QSR Transaction, 2021 QSR
Transaction, 2022 QSR Transaction, 2022 Seasoned QSR Transaction,
2023 QSR Transaction, and 2024 QSR Transaction and collectively,
the QSR Transactions), insurance-linked note transactions (2019 ILN
Transaction, 2020-2 ILN Transaction, 2021-1 ILN Transaction, and
2021-2 ILN Transaction and collectively, the ILN Transactions), and
traditional reinsurance transactions (2022-1 XOL Transaction,
2022-2 XOL Transaction, 2022-3 XOL Transaction, 2023-1 XOL
Transaction, 2023-2 XOL Transaction, and 2024 XOL Transaction and
collectively, the XOL Transactions) for the periods indicated.
|
For the three months ended |
|
March 31, 2024 |
|
December 31, 2023 |
|
September 30, 2023 |
|
June 30, 2023 |
|
March 31, 2023 |
|
(In Thousands) |
The QSR Transactions |
|
|
|
|
|
|
|
|
|
Ceded risk-in-force |
$ |
12,669,207 |
|
|
$ |
12,626,541 |
|
|
$ |
12,753,261 |
|
|
$ |
12,761,294 |
|
|
$ |
12,635,442 |
|
Ceded premiums earned |
|
(41,269 |
) |
|
|
(41,218 |
) |
|
|
(42,015 |
) |
|
|
(42,002 |
) |
|
|
(42,096 |
) |
Ceded claims and claim expenses |
|
659 |
|
|
|
2,447 |
|
|
|
2,221 |
|
|
|
803 |
|
|
|
1,965 |
|
Ceding commission earned |
|
10,292 |
|
|
|
9,561 |
|
|
|
9,808 |
|
|
|
9,877 |
|
|
|
9,965 |
|
Profit commission |
|
23,407 |
|
|
|
22,057 |
|
|
|
22,184 |
|
|
|
23,486 |
|
|
|
22,279 |
|
The ILN Transactions (1) |
|
|
|
|
|
|
|
|
|
Ceded premiums |
$ |
(5,976 |
) |
|
$ |
(6,305 |
) |
|
$ |
(6,925 |
) |
|
$ |
(8,815 |
) |
|
$ |
(9,095 |
) |
The XOL Transactions |
|
|
|
|
|
|
|
|
|
Ceded Premiums |
$ |
(9,223 |
) |
|
$ |
(8,302 |
) |
|
$ |
(7,968 |
) |
|
$ |
(7,672 |
) |
|
$ |
(7,237 |
) |
(1) |
Effective July 25, 2023, NMIC exercised its optional call to
terminate and commute its previously outstanding excess of loss
reinsurance agreement with Oaktown Re II Ltd. NMIC no longer makes
risk premium payments to Oaktown Re II Ltd., thereafter. |
|
|
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 |
|
March 31, 2024 |
|
December 31, 2023 |
|
March 31, 2023 |
|
(In Millions) |
>= 760 |
$ |
4,888 |
|
|
$ |
4,564 |
|
|
$ |
5,251 |
|
740-759 |
|
1,797 |
|
|
|
1,542 |
|
|
|
1,514 |
|
720-739 |
|
1,220 |
|
|
|
1,280 |
|
|
|
1,107 |
|
700-719 |
|
780 |
|
|
|
816 |
|
|
|
456 |
|
680-699 |
|
530 |
|
|
|
568 |
|
|
|
342 |
|
<=679 |
|
183 |
|
|
|
157 |
|
|
|
64 |
|
Total |
$ |
9,398 |
|
|
$ |
8,927 |
|
|
$ |
8,734 |
|
Weighted average FICO |
|
757 |
|
|
|
755 |
|
|
|
762 |
|
Primary NIW by
LTV |
For the three months ended |
|
March 31, 2024 |
|
December 31, 2023 |
|
March 31, 2023 |
|
(In Millions) |
95.01% and above |
$ |
1,062 |
|
|
|
$ |
990 |
|
|
|
$ |
358 |
|
|
90.01% to 95.00% |
|
4,414 |
|
|
|
|
4,107 |
|
|
|
|
4,085 |
|
|
85.01% to 90.00% |
|
2,931 |
|
|
|
|
2,947 |
|
|
|
|
3,234 |
|
|
85.00% and below |
|
991 |
|
|
|
|
883 |
|
|
|
|
1,057 |
|
|
Total |
$ |
9,398 |
|
|
|
$ |
8,927 |
|
|
|
$ |
8,734 |
|
|
Weighted average LTV |
|
92.3 |
|
% |
|
|
92.2 |
|
% |
|
|
91.6 |
|
% |
Primary NIW by
purchase/refinance mix |
For the three months ended |
|
March 31, 2024 |
|
December 31, 2023 |
|
March 31, 2023 |
|
(In Millions) |
Purchase |
$ |
9,157 |
|
|
$ |
8,759 |
|
|
$ |
8,494 |
|
Refinance |
|
241 |
|
|
|
168 |
|
|
|
240 |
|
Total |
$ |
9,398 |
|
|
$ |
8,927 |
|
|
$ |
8,734 |
|
The table below presents a summary of our
primary IIF and RIF by book year as of March 31, 2024.
Primary IIF and
RIF |
As of March 31, 2024 |
|
IIF |
|
RIF |
Book
Year |
(In Millions) |
2024 |
$ |
9,326 |
|
|
$ |
2,466 |
|
2023 |
|
37,676 |
|
|
|
9,924 |
|
2022 |
|
51,809 |
|
|
|
13,759 |
|
2021 |
|
59,306 |
|
|
|
15,569 |
|
2020 |
|
25,939 |
|
|
|
6,871 |
|
2019 and before |
|
15,317 |
|
|
|
4,021 |
|
Total |
$ |
199,373 |
|
|
$ |
52,610 |
|
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 |
|
March 31, 2024 |
|
December 31, 2023 |
|
March 31, 2023 |
|
(In Millions) |
>= 760 |
$ |
99,195 |
|
|
$ |
98,034 |
|
|
$ |
91,623 |
|
740-759 |
|
35,416 |
|
|
|
34,829 |
|
|
|
33,156 |
|
720-739 |
|
28,033 |
|
|
|
27,755 |
|
|
|
26,233 |
|
700-719 |
|
18,904 |
|
|
|
18,734 |
|
|
|
18,203 |
|
680-699 |
|
13,002 |
|
|
|
12,867 |
|
|
|
12,502 |
|
<=679 |
|
4,823 |
|
|
|
4,810 |
|
|
|
5,007 |
|
Total |
$ |
199,373 |
|
|
$ |
197,029 |
|
|
$ |
186,724 |
|
Primary RIF by
FICO |
As of |
|
March 31, 2024 |
|
December 31, 2023 |
|
March 31, 2023 |
|
(In Millions) |
>= 760 |
$ |
25,935 |
|
|
$ |
25,523 |
|
|
$ |
23,472 |
|
740-759 |
|
9,392 |
|
|
|
9,207 |
|
|
|
8,692 |
|
720-739 |
|
7,484 |
|
|
|
7,387 |
|
|
|
6,903 |
|
700-719 |
|
5,089 |
|
|
|
5,021 |
|
|
|
4,847 |
|
680-699 |
|
3,479 |
|
|
|
3,433 |
|
|
|
3,311 |
|
<=679 |
|
1,231 |
|
|
|
1,225 |
|
|
|
1,269 |
|
Total |
$ |
52,610 |
|
|
$ |
51,796 |
|
|
$ |
48,494 |
|
Primary IIF by
LTV |
As of |
|
March 31, 2024 |
|
December 31, 2023 |
|
March 31, 2023 |
|
(In Millions) |
95.01% and above |
$ |
20,277 |
|
|
$ |
19,609 |
|
|
$ |
17,583 |
|
90.01% to 95.00% |
|
97,028 |
|
|
|
95,415 |
|
|
|
89,125 |
|
85.01% to 90.00% |
|
61,169 |
|
|
|
60,348 |
|
|
|
56,425 |
|
85.00% and below |
|
20,899 |
|
|
|
21,657 |
|
|
|
23,591 |
|
Total |
$ |
199,373 |
|
|
$ |
197,029 |
|
|
$ |
186,724 |
|
Primary RIF by
LTV |
As of |
|
March 31, 2024 |
|
December 31, 2023 |
|
March 31, 2023 |
|
(In Millions) |
95.01% and above |
$ |
6,275 |
|
|
$ |
6,062 |
|
|
$ |
5,413 |
|
90.01% to 95.00% |
|
28,663 |
|
|
|
28,184 |
|
|
|
26,326 |
|
85.01% to 90.00% |
|
15,174 |
|
|
|
14,961 |
|
|
|
13,937 |
|
85.00% and below |
|
2,498 |
|
|
|
2,589 |
|
|
|
2,818 |
|
Total |
$ |
52,610 |
|
|
$ |
51,796 |
|
|
$ |
48,494 |
|
Primary RIF by Loan
Type |
As of |
|
March 31, 2024 |
|
December 31, 2023 |
|
March 31, 2023 |
Fixed |
98 |
|
% |
|
98 |
|
% |
|
98 |
|
% |
Adjustable rate mortgages: |
|
|
|
|
|
Less than five years |
— |
|
|
|
— |
|
|
|
— |
|
|
Five years and longer |
2 |
|
|
|
2 |
|
|
|
2 |
|
|
Total |
100 |
|
% |
|
100 |
|
% |
|
100 |
|
% |
The table below presents a summary of the change
in total primary IIF for the dates and periods indicated.
Primary
IIF |
As of and for the three months ended |
|
March 31, 2024 |
|
December 31, 2023 |
|
March 31, 2023 |
|
(In Millions) |
IIF, beginning of period |
$ |
197,029 |
|
|
$ |
194,781 |
|
|
$ |
183,968 |
|
NIW |
|
9,398 |
|
|
|
8,927 |
|
|
|
8,734 |
|
Cancellations, principal repayments and other reductions |
|
(7,054 |
) |
|
|
(6,679 |
) |
|
|
(5,978 |
) |
IIF, end of period |
$ |
199,373 |
|
|
$ |
197,029 |
|
|
$ |
186,724 |
|
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 |
|
March 31, 2024 |
|
December 31, 2023 |
|
March 31, 2023 |
California |
10.2 |
|
% |
|
10.2 |
|
% |
|
10.5 |
|
% |
Texas |
8.8 |
|
|
|
8.7 |
|
|
|
8.8 |
|
|
Florida |
7.5 |
|
|
|
7.6 |
|
|
|
8.0 |
|
|
Georgia |
4.2 |
|
|
|
4.1 |
|
|
|
4.1 |
|
|
Washington |
3.9 |
|
|
|
4.0 |
|
|
|
4.0 |
|
|
Illinois |
3.9 |
|
|
|
4.0 |
|
|
|
3.9 |
|
|
Virginia |
3.9 |
|
|
|
3.9 |
|
|
|
4.1 |
|
|
Pennsylvania |
3.4 |
|
|
|
3.4 |
|
|
|
3.4 |
|
|
Colorado |
3.2 |
|
|
|
3.2 |
|
|
|
3.5 |
|
|
Maryland |
3.2 |
|
|
|
3.3 |
|
|
|
3.3 |
|
|
Total |
52.2 |
|
% |
|
52.4 |
|
% |
|
53.6 |
|
% |
The table below presents selected primary
portfolio statistics, by book year, as of March 31, 2024.
|
As of March 31, 2024 |
Book
Year |
Original Insurance Written |
|
Remaining Insurance in Force |
|
% Remaining of Original Insurance |
|
Policies Ever in Force |
|
|
Number of Policies in Force |
|
|
Number of Loans in Default |
|
|
# of Claims Paid |
|
|
Incurred Loss Ratio (Inception to Date)
(1) |
|
Cumulative Default Rate (2) |
|
Current default rate (3) |
|
($ Values In Millions) |
|
|
2015 and prior |
$ |
16,035 |
|
|
$ |
1,063 |
|
|
7 |
|
% |
|
67,989 |
|
|
6,088 |
|
|
101 |
|
|
200 |
|
|
2.7 |
|
% |
|
0.4 |
|
% |
|
1.7 |
|
% |
2016 |
|
21,187 |
|
|
|
1,881 |
|
|
9 |
|
% |
|
83,626 |
|
|
10,119 |
|
|
190 |
|
|
174 |
|
|
1.8 |
|
% |
|
0.4 |
|
% |
|
1.9 |
|
% |
2017 |
|
21,582 |
|
|
|
2,350 |
|
|
11 |
|
% |
|
85,897 |
|
|
13,036 |
|
|
293 |
|
|
160 |
|
|
2.2 |
|
% |
|
0.5 |
|
% |
|
2.2 |
|
% |
2018 |
|
27,295 |
|
|
|
2,811 |
|
|
10 |
|
% |
|
104,043 |
|
|
14,889 |
|
|
439 |
|
|
157 |
|
|
2.9 |
|
% |
|
0.6 |
|
% |
|
2.9 |
|
% |
2019 |
|
45,141 |
|
|
|
7,212 |
|
|
16 |
|
% |
|
148,423 |
|
|
31,251 |
|
|
491 |
|
|
67 |
|
|
2.1 |
|
% |
|
0.4 |
|
% |
|
1.6 |
|
% |
2020 |
|
62,702 |
|
|
|
25,939 |
|
|
41 |
|
% |
|
186,174 |
|
|
88,166 |
|
|
545 |
|
|
24 |
|
|
1.7 |
|
% |
|
0.3 |
|
% |
|
0.6 |
|
% |
2021 |
|
85,574 |
|
|
|
59,306 |
|
|
69 |
|
% |
|
257,972 |
|
|
191,719 |
|
|
1,436 |
|
|
34 |
|
|
4.2 |
|
% |
|
0.6 |
|
% |
|
0.7 |
|
% |
2022 |
|
58,734 |
|
|
|
51,809 |
|
|
88 |
|
% |
|
163,281 |
|
|
148,868 |
|
|
1,354 |
|
|
12 |
|
|
19.2 |
|
% |
|
0.8 |
|
% |
|
0.9 |
|
% |
2023 |
|
40,473 |
|
|
|
37,676 |
|
|
93 |
|
% |
|
111,994 |
|
|
106,285 |
|
|
260 |
|
|
1 |
|
|
10.8 |
|
% |
|
0.2 |
|
% |
|
0.2 |
|
% |
2024 |
|
9,398 |
|
|
|
9,326 |
|
|
99 |
|
% |
|
25,386 |
|
|
25,241 |
|
|
— |
|
|
— |
|
|
— |
|
% |
|
— |
|
% |
|
— |
|
% |
Total |
$ |
388,121 |
|
|
$ |
199,373 |
|
|
|
|
1,234,785 |
|
|
635,662 |
|
|
5,109 |
|
|
829 |
|
|
|
|
|
|
|
(1) |
Calculated as total claims incurred (paid and reserved)
divided by cumulative premiums earned, net of reinsurance. |
(2) |
Calculated as the sum of the number of claims paid ever to date and
number of loans in default divided by policies ever in force. |
(3) |
Calculated as the number of loans in default divided by number of
policies in force. |
|
|
The following table provides a reconciliation of
the beginning and ending reserve balances for primary insurance
claims and claim expenses:
|
For the three months ended March 31, |
|
|
2024 |
|
|
|
2023 |
|
|
(In Thousands) |
Beginning balance |
$ |
123,974 |
|
|
$ |
99,836 |
|
Less reinsurance recoverables
(1) |
|
(27,514 |
) |
|
|
(21,587 |
) |
Beginning balance, net of
reinsurance recoverables |
|
96,460 |
|
|
|
78,249 |
|
|
|
|
|
Add claims incurred: |
|
|
|
Claims and claim expenses incurred: |
|
|
|
Current year (2) |
|
32,976 |
|
|
|
27,608 |
|
Prior years (3) |
|
(29,282 |
) |
|
|
(20,907 |
) |
Total claims and claim expenses incurred |
|
3,694 |
|
|
|
6,701 |
|
|
|
|
|
Less claims paid: |
|
|
|
Claims and claim expenses paid: |
|
|
|
Current year (2) |
|
— |
|
|
|
— |
|
Prior years (3) |
|
852 |
|
|
|
272 |
|
Total claims and claim expenses paid |
|
852 |
|
|
|
272 |
|
|
|
|
|
Reserve at end of period, net
of reinsurance recoverables |
|
99,302 |
|
|
|
84,678 |
|
Add reinsurance recoverables
(1) |
|
27,880 |
|
|
|
23,479 |
|
Ending balance |
$ |
127,182 |
|
|
$ |
108,157 |
|
(1) |
Related to ceded losses recoverable under the QSR
Transactions. |
(2) |
Related to insured loans with their most recent defaults occurring
in the current year. For example, if a loan defaulted in a prior
year and subsequently cured and later re-defaulted in the current
year, the default would be included in the current year. Amounts
are presented net of reinsurance and included $25.9 million
attributed to net case reserves and $6.6 million attributed to net
IBNR reserves for the three months ended March 31, 2024 and
$22.3 million attributed to net case reserves and
$4.9 million attributed to net IBNR reserves for the three
months ended March 31, 2023. |
(3) |
Related to insured loans with defaults occurring in prior years,
which have been continuously in default before the start of the
current year. Amounts are presented net of reinsurance and included
$22.4 million attributed to net case reserves and $6.3 million
attributed to net IBNR reserves for the three months ended
March 31, 2024 and $16.2 million attributed to net case
reserves and $4.5 million attributed to net IBNR reserves for
the three months ended March 31, 2023. |
|
|
The following table provides a reconciliation of
the beginning and ending count of loans in default:
|
For the three months ended March 31, |
|
2024 |
|
2023 |
Beginning default inventory |
5,099 |
|
|
4,449 |
|
Plus: new defaults |
1,876 |
|
|
1,558 |
|
Less: cures |
(1,817 |
) |
|
(1,507 |
) |
Less: claims paid |
(42 |
) |
|
(21 |
) |
Less: rescission and claims
denied |
(7 |
) |
|
(4 |
) |
Ending default inventory |
5,109 |
|
|
4,475 |
|
The following table provides details of our
claims paid, before giving effect to claims ceded under the QSR
Transactions, for the periods indicated:
|
For the three months ended March 31, |
|
2024 |
|
2023 |
|
($ Values In Thousands) |
Number of claims paid (1) |
|
42 |
|
|
|
|
21 |
|
|
Total amount paid for
claims |
$ |
1,145 |
|
|
|
$ |
344 |
|
|
Average amount paid per
claim |
$ |
27 |
|
|
|
$ |
16 |
|
|
Severity (2) |
|
54 |
|
% |
|
|
39 |
|
% |
(1) |
Count includes 16 and seven claims settled without payment during
the three months ended March 31, 2024 and 2023,
respectively. |
(2) |
Severity represents the total amount of claims paid including claim
expenses divided by the related RIF on the loan at the time the
claim is perfected, and is calculated including claims settled
without payment. |
|
|
The following table shows our average reserve
per default, before giving effect to reserves ceded under the QSR
Transactions, as of the dates indicated:
|
As of March 31, |
Average reserve per default: |
|
2024 |
|
|
|
2023 |
|
|
(In Thousands) |
Case (1) |
$ |
22.9 |
|
|
$ |
22.4 |
|
IBNR (1)(2) |
|
2.0 |
|
|
|
1.8 |
|
Total |
$ |
24.9 |
|
|
$ |
24.2 |
|
(1) |
Defined as the gross reserve per insured loan in default. |
(2) |
Amount includes claims adjustment expenses. |
|
|
The following table provides a comparison of the
PMIERs available assets and net risk-based required asset amount as
reported by NMIC as of the dates indicated:
|
As of |
|
March 31, 2024 |
|
December 31, 2023 |
|
March 31, 2023 |
|
(In Thousands) |
Available Assets |
$ |
2,821,803 |
|
|
$ |
2,717,804 |
|
|
$ |
2,480,882 |
|
Net risk-based required
assets |
|
1,561,655 |
|
|
|
1,516,140 |
|
|
|
1,231,780 |
|
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