NMI (NMIH) Q2 Earnings call transcript Jul 30, 2024
1min read In the second quarter of 2024, NMI Holdings reported a strong set of results, showcasing consistent growth in their insured portfolio and record financial results. The company's leadership team, including Bradley Shuster, Adam Pollitzer, and Aurora Swithenbank, highlighted the company's achievements, including a record $203.5 billion of high-quality, high-performing insurance in force, and a total revenue of $162.1 million.
Achieving Milestones and Outperforming the Market
NMI Holdings' insured portfolio surpassed $200 billion for the first time, demonstrating the company's significant growth and success. The company's leadership emphasized their commitment to delivering a differentiated level of service and a clear vision for the market, which has led to their consistent outperformance.
The company's success can be attributed to several factors, including a broadly diversified customer franchise, a talented and dedicated team, and a culture of collaboration, integrity, and performance. These factors have allowed NMI Holdings to consistently outperform and lead the private mortgage insurance industry with discipline and distinction.
Financial Highlights and Market Performance
The second quarter of 2024 marked a significant milestone for NMI Holdings, with record financial results. The company generated $12.5 billion of NIW volume and ended the period with a record $203.5 billion of high-quality, high-performing primary insurance in force. The company's total revenue reached a record $162.1 million, with GAAP net income and adjusted net income reaching $92.1 million and $97.6 million, respectively.
NMI Holdings' financial performance has been robust, with GAAP return on equity and adjusted return on equity standing at 18.3% and 19.4%, respectively. The company's expense ratio reached a record low of 20.1%, reflecting its efficiency and operational excellence.
The macro environment and housing market have remained resilient, with the company's lender customers and their borrowers continuing to rely on NMI Holdings for critical down payment support. The company's strong credit performance and persistency remain well above historical trends, contributing to consistent growth and value gains in the insured book.
Looking Ahead
NMI Holdings remains optimistic about the future, with a strong customer franchise, a talented team, a robust balance sheet, and the significant earnings power of its platform. The company is well positioned to continue serving its customers and their borrowers, investing in its employees, driving growth in its high-quality insured portfolio, and delivering value for its shareholders.
The company's focus on discipline, efficiency, and risk management has served it well, allowing it to navigate the challenges of the private mortgage insurance market with confidence. With a strong outlook for the industry and its own exceptional performance, NMI Holdings is poised for continued success in the quarters ahead.
