On November 1, 2023, NMI Holdings Inc (NMIH, Financial) released its third-quarter earnings report for the period ending September 30, 2023. The company reported a net income of $84.0 million, or $1.00 per diluted share, a significant increase from $76.8 million, or $0.90 per diluted share, reported in the third quarter of 2022. The company's adjusted net income for the quarter remained consistent at $84.0 million.
Financial Highlights
Key financial highlights for the third quarter of 2023 include a rise in primary insurance-in-force to $194.8 billion, compared to $179.2 billion in the third quarter of 2022. Net premiums earned were $130.1 million, a 10% increase from $118.3 million in the same period last year. Total revenue for the quarter was $148.2 million, a 13.5% increase from $130.6 million in Q3 2022.
Underwriting and operating expenses were slightly up at $27.7 million, compared to $27.1 million in the third quarter of 2022. Insurance claims and claim expenses were $4.8 million, compared to a benefit of $3.4 million in the third quarter of 2022. Shareholders’ equity was $1.8 billion at quarter end and book value per share was $21.94. The annualized return on equity for the quarter was 19.0%, slightly down from 20.1% in the third quarter of 2022.
CEO Commentary
Adam Pollitzer, President and Chief Executive Officer of National MI, commented on the company's performance, stating,
We’re proud to have again delivered stand out operating performance, continued growth in our high-quality insured portfolio, record profitability and strong returns in the third quarter. 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."
Looking Forward
Despite the challenges, NMIH remains optimistic about its future prospects. The company's robust balance sheet, high-quality book, and strong credit performance position it well for continued growth and value delivery for its shareholders.
Explore the complete 8-K earnings release (here) from NMI Holdings Inc for further details.
