Business
NMI Holdings, Inc. Reports First Quarter 2022 Financial Results; Announces $290 million Excess of Loss Reinsurance Agreement
EMERYVILLE, Calif., May 04, 2022 (GLOBE NEWSWIRE) -- NMI Holdings, Inc. (Nasdaq: NMIH) today reported net income of $67.7 million, or $0.77 per diluted share,
About this update from Nmi Holdings Inc
[{"type":"text","content":"EMERYVILLE, Calif., May 04, 2022 (GLOBE NEWSWIRE) -- NMI Holdings, Inc. (Nasdaq: NMIH) today reported net income of $67.7 million, or $0.77 per diluted share, for the first quarter ended March 31, 2022, which compares to $60.5 million, or $0.69 per diluted share, in the fourth quarter ended December 31, 2021 and $52.9 million, or $0.61 per diluted share, in the first quarter ended March 31, 2021. Adjusted net income for the quarter was $67.5 million, or $0.77 per diluted share, which compares to $63.5 million, or $0.73 per diluted share, in the fourth quarter ended December 31, 2021 and $53.4 million, or $0.62 per diluted share, in the first quarter ended March 31, 2021. The non-GAAP financial measures adjusted net income, adjusted diluted earnings per share and adjusted return on equity are presented in this release to enhance the comparability of financial results between periods. See \"Use of Non-GAAP Financial Measures\" and our reconciliation of such measures to their most comparable GAAP measures, below. The company also announced that it has entered into a $290 million excess of loss reinsurance agreement with a high-quality panel of third-party reinsurers, covering an existing portfolio of mortgage insurance policies written primarily from October 1, 2021 through March 31, 2022. The agreement provides National MI with protection for aggregate losses on subject loans beginning at a 2.00% cumulative claim rate threshold and continuing up through a 6.75% aggregate detachment level. National MI expects to receive full PMIERs credit for the transaction, subject to GSE approval. Adam Pollitzer, President and Chief Executive Officer of National MI, said, “We delivered strong results in the first quarter, with significant new business production and improving persistency driving growth in our high-quality insured portfolio, and favorable credit performance driving significant profitability and strong mid-teen returns. We also began to execute under our recently announced common stock repurchase program and saw continued success in the reinsurance market, securing incremental PMIERs funding and valuable risk protection with our excess of loss agreement. Looking forward, National MI is well positioned to lead with impact, innovation and success, and to continue building franchise value, embedded portfolio value and shareholder val...