Q2 2024 NMI Holdings Inc Earnings Call Transcript
Key Points
- NMI Holdings Inc (NMIH) achieved record financial results in the second quarter, with total revenue reaching $162.1 million.
- The company reported a record $203.5 billion of high-quality, high-performing primary insurance-in-force.
- GAAP net income was a record $92.1 million or $1.13 per diluted share, and adjusted net income was $97.6 million or $1.20 per diluted share.
- The company maintained a low expense ratio of 20.1%, highlighting significant operating leverage and cost efficiency.
- NMI Holdings Inc (NMIH) successfully refinanced its outstanding debt, lowering the cost of debt capital and saving approximately $3.5 million in annual interest expense.
- Despite strong performance, macroeconomic risks remain, necessitating a proactive stance on pricing, risk selection, and reinsurance decisioning.
- Interest expense increased to $14.7 million in the second quarter, partly due to $7 million of nonrecurring costs from debt refinancing.
- The company expects some growth in net operating expenses as it continues to invest in people, systems, and risk management strategies.
- Persistency slightly declined to 85.4% in the second quarter from 85.8% in the first quarter, although it remains above historical trends.
- The macro environment and housing market, while resilient, still pose uncertainties due to elevated interest rates and potential fluctuations in home prices.
Good day, and welcome to the NMI Holdings second-quarter 2024 earnings conference call. (Operator Instructions) Please note this call is being recorded.
I would now like to turn the conference over to Mr. John Swenson of management. Please go ahead.
Thank you, operator. Good afternoon, and welcome to the 2024 second-quarter conference call for National MI. I'm John Swenson, Vice President of Investor Relations and Treasury. Joining us on the call today are Brad Shuster, Executive Chairman; Adam Pollitzer, President and Chief Executive Officer; and Aurora Swithenbank, our Chief Financial Officer.
Financial results for the quarter were released after the close today. The press release may be accessed on NMI's website located at nationalmi.com under the Investors tab. During the course of this call, we may make comments about our expectations for the future. Actual results could differ materially from those contained in these forward-looking statements.
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