NMI Holdings Q4 Revenue Up 8.6% to $180.7M, EPS Tops Estimates
NMI Holdings reported Q4 revenue of $180.74 million, up 8.6% year-on-year, and EPS of $1.20, beating consensus estimates by 0.99% and 2.35%. Insurance-in-force reached $221.45 billion versus a $218.97 billion estimate, while expense ratio improved to 20.4% against a 21.1% forecast.
1. Q4 Financial Results
NMI Holdings delivered Q4 revenue of $180.74 million, marking an 8.6% increase from the prior year, and reported EPS of $1.20, representing surprises of +0.99% on revenue and +2.35% on earnings versus consensus forecasts.
2. Key Underlying Metrics
Insurance-in-force rose to $221.45 billion compared with the $218.97 billion estimate, and risk-in-force reached $59.31 billion versus $57.84 billion projected; combined ratio improved to 34.3% and expense ratio declined to 20.4%, both ahead of analyst targets.
3. Investment and Premium Income
Net investment income for the quarter grew 21.2% year-on-year to $27.53 million, beating the $25.22 million estimate, while net premiums earned increased 6.2% to $152.46 million, narrowly below the $153.38 million forecast.
4. Market Reaction and Positioning
Shares have returned 1.6% over the past month versus a flat S&P 500, and the stock holds a Hold rating, suggesting performance in line with the broader market as investors weigh improved efficiency ratios and robust IIF growth.