(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Emerging growth company |
Date: February 14, 2024 | By: | /s/ William J. Leatherberry | ||||||
William J. Leatherberry | ||||||||
EVP, Chief Administrative Officer & General Counsel |
Quarter Ended | Quarter Ended | Quarter Ended | Change (1) | Change (1) | ||||||||||||||||
12/31/2023 | 9/30/2023 | 12/31/2022 | Q/Q | Y/Y | ||||||||||||||||
INSURANCE METRICS ($billions) | ||||||||||||||||||||
Primary Insurance-in-Force | $ | 197.0 | $ | 194.8 | $ | 184.0 | 1 | % | 7 | % | ||||||||||
New Insurance Written - NIW | ||||||||||||||||||||
Monthly premium | 8.6 | 11.0 | 10.5 | (22) | % | (18) | % | |||||||||||||
Single premium | 0.3 | 0.3 | 0.3 | 6 | % | 17 | % | |||||||||||||
Total (2) | 8.9 | 11.3 | 10.7 | (21) | % | (17) | % | |||||||||||||
FINANCIAL HIGHLIGHTS (Unaudited, $millions, except per share amounts) | ||||||||||||||||||||
Net Premiums Earned | 132.9 | 130.1 | 119.6 | 2 | % | 11 | % | |||||||||||||
Insurance Claims and Claim Expenses | 8.2 | 4.8 | 3.4 | 71 | % | 139 | % | |||||||||||||
Underwriting and Operating Expenses | 29.7 | 27.7 | 26.7 | 7 | % | 11 | % | |||||||||||||
Net Income | 83.4 | 84.0 | 72.9 | (1) | % | 14 | % | |||||||||||||
Book Value per Share (excluding net unrealized gains and losses) (3) | 25.54 | 24.56 | 21.76 | 4 | % | 17 | % | |||||||||||||
Loss Ratio | 6.2 | % | 3.7 | % | 2.9 | % | ||||||||||||||
Expense Ratio | 22.4 | % | 21.3 | % | 22.3 | % |
Consolidated statements of operations and comprehensive income (unaudited) | For the three months ended December 31, | For the year ended December 31, | |||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(In Thousands, except for per share data) | |||||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Net premiums earned | $ | 132,940 | $ | 119,584 | $ | 510,768 | $ | 475,266 | |||||||||||||||
Net investment income | 18,247 | 13,341 | 67,512 | 46,406 | |||||||||||||||||||
Net realized investment gains (losses) | — | 6 | (33) | 481 | |||||||||||||||||||
Other revenues | 193 | 176 | 756 | 1,192 | |||||||||||||||||||
Total revenues | 151,380 | 133,107 | 579,003 | 523,345 | |||||||||||||||||||
Expenses | |||||||||||||||||||||||
Insurance claims and claim expenses (benefits) | 8,232 | 3,450 | 22,618 | (3,594) | |||||||||||||||||||
Underwriting and operating expenses | 29,716 | 26,711 | 110,699 | 117,490 | |||||||||||||||||||
Service expenses | 185 | 131 | 771 | 1,094 | |||||||||||||||||||
Interest expense | 8,066 | 8,035 | 32,212 | 32,163 | |||||||||||||||||||
Gain from change in fair value of warrant liability | — | — | — | (1,113) | |||||||||||||||||||
Total expenses | 46,199 | 38,327 | 166,300 | 146,040 | |||||||||||||||||||
Income before income taxes | 105,181 | 94,780 | 412,703 | 377,305 | |||||||||||||||||||
Income tax expense | 21,768 | 21,840 | 90,593 | 84,403 | |||||||||||||||||||
Net income | $ | 83,413 | $ | 72,940 | $ | 322,110 | $ | 292,902 | |||||||||||||||
Earnings per share | |||||||||||||||||||||||
Basic | $ | 1.03 | $ | 0.87 | $ | 3.91 | $ | 3.45 | |||||||||||||||
Diluted | $ | 1.01 | $ | 0.86 | $ | 3.84 | $ | 3.39 | |||||||||||||||
Weighted average common shares outstanding | |||||||||||||||||||||||
Basic | 81,005 | 83,592 | 82,407 | 84,921 | |||||||||||||||||||
Diluted | 82,685 | 84,809 | 83,854 | 85,999 | |||||||||||||||||||
Loss ratio (1) | 6.2 | % | 2.9 | % | 4.4 | % | (0.8) | % | |||||||||||||||
Expense ratio (2) | 22.4 | % | 22.3 | % | 21.7 | % | 24.7 | % | |||||||||||||||
Combined ratio (3) | 28.5 | % | 25.2 | % | 26.1 | % | 24.0 | % | |||||||||||||||
Net income | $ | 83,413 | $ | 72,940 | $ | 322,110 | $ | 292,902 | |||||||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||||||
Unrealized gains (losses) in accumulated other comprehensive income, net of tax expense (benefit) of $19,580 and $4,505 for the three months ended December 31, 2023 and 2022, and $17,113 and $(54,608) for the years ended December 31, 2023 and 2022, respectively | 73,660 | 16,948 | 64,380 | (205,428) | |||||||||||||||||||
Reclassification adjustment for realized (gains) losses included in net income, net of tax expense (benefit) of $0 and $1 for the three months ended December 31, 2023 and 2022, and $(7) and $101 for the years ended December 31, 2023, and 2022, respectively | — | (5) | 26 | (380) | |||||||||||||||||||
Other comprehensive income (loss), net of tax | 73,660 | 16,943 | 64,406 | (205,808) | |||||||||||||||||||
Comprehensive income | $ | 157,073 | $ | 89,883 | $ | 386,516 | $ | 87,094 |
Consolidated balance sheets (unaudited) | December 31, 2023 | December 31, 2022 | |||||||||
Assets | (In Thousands, except for share data) | ||||||||||
Fixed maturities, available-for-sale, at fair value (amortized cost of $2,542,862 and $2,352,747 as of December 31, 2023 and December 31, 2022, respectively) | $ | 2,371,021 | $ | 2,099,389 | |||||||
Cash and cash equivalents (including restricted cash of $1,338 and $2,176 as of December 31, 2023 and December 31, 2022, respectively) | 96,689 | 44,426 | |||||||||
Premiums receivable | 76,456 | 69,680 | |||||||||
Accrued investment income | 19,785 | 14,144 | |||||||||
Deferred policy acquisition costs, net | 62,905 | 58,564 | |||||||||
Software and equipment, net | 30,252 | 31,930 | |||||||||
Intangible assets and goodwill | 3,634 | 3,634 | |||||||||
Reinsurance recoverable | 27,514 | 21,587 | |||||||||
Prepaid federal income taxes | 235,286 | 154,409 | |||||||||
Other assets | 16,965 | 18,267 | |||||||||
Total assets | $ | 2,940,507 | $ | 2,516,030 | |||||||
Liabilities | |||||||||||
Debt | $ | 397,595 | $ | 396,051 | |||||||
Unearned premiums | 92,295 | 123,035 | |||||||||
Accounts payable and accrued expenses | 86,189 | 74,576 | |||||||||
Reserve for insurance claims and claim expenses | 123,974 | 99,836 | |||||||||
Reinsurance funds withheld | 1,421 | 2,674 | |||||||||
Deferred tax liability, net | 301,573 | 193,859 | |||||||||
Other liabilities | 11,456 | 12,272 | |||||||||
Total liabilities | 1,014,503 | 902,303 | |||||||||
Shareholders' equity | |||||||||||
Common stock - class A shares, $0.01 par value; 87,334,138 shares issued and 80,881,280 shares outstanding as of December 31, 2023 and 86,472,742 shares issued and 83,549,879 shares outstanding as of December 31, 2022 (250,000,000 shares authorized) | 873 | 865 | |||||||||
Additional paid-in capital | 990,816 | 972,717 | |||||||||
Treasury stock, at cost: 6,452,858 and 2,922,863 common shares as of December 31, 2023 and December 31, 2022, respectively | (148,921) | (56,575) | |||||||||
Accumulated other comprehensive loss, net of tax | (139,917) | (204,323) | |||||||||
Retained earnings | 1,223,153 | 901,043 | |||||||||
Total shareholders' equity | 1,926,004 | 1,613,727 | |||||||||
Total liabilities and shareholders' equity | $ | 2,940,507 | $ | 2,516,030 |
Non-GAAP Financial Measure Reconciliations (unaudited) | |||||||||||||||||||||||||||||
As of and for the three months ended | For the year ended | ||||||||||||||||||||||||||||
12/31/2023 | 9/30/2023 | 12/31/2022 | 12/31/2023 | 12/31/2022 | |||||||||||||||||||||||||
As Reported | (In Thousands, except for per share data) | ||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||
Net premiums earned | $ | 132,940 | $ | 130,089 | $ | 119,584 | $ | 510,768 | $ | 475,266 | |||||||||||||||||||
Net investment income | 18,247 | 17,853 | 13,341 | 67,512 | 46,406 | ||||||||||||||||||||||||
Net realized investment gains (losses) | — | — | 6 | (33) | 481 | ||||||||||||||||||||||||
Other revenues | 193 | 217 | 176 | 756 | 1,192 | ||||||||||||||||||||||||
Total revenues | 151,380 | 148,159 | 133,107 | 579,003 | 523,345 | ||||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||
Insurance claims and claim expenses (benefits) | 8,232 | 4,812 | 3,450 | 22,618 | (3,594) | ||||||||||||||||||||||||
Underwriting and operating expenses | 29,716 | 27,749 | 26,711 | 110,699 | 117,490 | ||||||||||||||||||||||||
Service expenses | 185 | 239 | 131 | 771 | 1,094 | ||||||||||||||||||||||||
Interest expense | 8,066 | 8,059 | 8,035 | 32,212 | 32,163 | ||||||||||||||||||||||||
Gain from change in fair value of warrant liability | — | — | — | — | (1,113) | ||||||||||||||||||||||||
Total expenses | 46,199 | 40,859 | 38,327 | 166,300 | 146,040 | ||||||||||||||||||||||||
Income before income taxes | 105,181 | 107,300 | 94,780 | 412,703 | 377,305 | ||||||||||||||||||||||||
Income tax expense | 21,768 | 23,345 | 21,840 | 90,593 | 84,403 | ||||||||||||||||||||||||
Net income | $ | 83,413 | $ | 83,955 | $ | 72,940 | $ | 322,110 | $ | 292,902 | |||||||||||||||||||
Adjustments: | |||||||||||||||||||||||||||||
Net realized investment (gains) losses | — | — | (6) | 33 | (481) | ||||||||||||||||||||||||
Gain from change in fair value of warrant liability | — | — | — | — | (1,113) | ||||||||||||||||||||||||
Capital markets transaction costs | — | — | — | — | 205 | ||||||||||||||||||||||||
Adjusted income before taxes | 105,181 | 107,300 | 94,774 | 412,736 | 375,916 | ||||||||||||||||||||||||
Income tax (benefit) expense on adjustments (1) | — | — | (1) | 7 | (58) | ||||||||||||||||||||||||
Adjusted net income | $ | 83,413 | $ | 83,955 | $ | 72,935 | $ | 322,136 | $ | 291,571 | |||||||||||||||||||
Weighted average diluted shares outstanding | 82,685 | 83,670 | 84,809 | 83,854 | 85,999 | ||||||||||||||||||||||||
Diluted EPS | $ | 1.01 | $ | 1.00 | $ | 0.86 | $ | 3.84 | $ | 3.39 | |||||||||||||||||||
Adjusted diluted EPS | $ | 1.01 | $ | 1.00 | $ | 0.86 | $ | 3.84 | $ | 3.39 | |||||||||||||||||||
Return-on-equity | 18.0 | % | 19.0 | % | 18.6 | % | 18.2 | % | 18.4 | % | |||||||||||||||||||
Adjusted return-on-equity | 18.0 | % | 19.0 | % | 18.6 | % | 18.2 | % | 18.3 | % | |||||||||||||||||||
Expense ratio (2) | 22.4 | % | 21.3 | % | 22.3 | % | 21.7 | % | 24.7 | % | |||||||||||||||||||
Adjusted expense ratio (3) | 22.4 | % | 21.3 | % | 22.3 | % | 21.7 | % | 24.7 | % | |||||||||||||||||||
Combined ratio (4) | 28.5 | % | 25.0 | % | 25.2 | % | 26.1 | % | 24.0 | % | |||||||||||||||||||
Adjusted combined ratio (5) | 28.5 | % | 25.0 | % | 25.2 | % | 26.1 | % | 23.9 | % | |||||||||||||||||||
Book value per share (6) | $ | 23.81 | $ | 21.94 | $ | 19.31 | |||||||||||||||||||||||
Book value per share (excluding net unrealized gains and losses) (7) | $ | 25.54 | $ | 24.56 | $ | 21.76 |
Historical Quarterly Data | 2023 | 2022 | |||||||||||||||||||||||||||||||||
December 31 | September 30 | June 30 | March 31 | December 31 | September 30 | ||||||||||||||||||||||||||||||
(In Thousands, except for per share data) | |||||||||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||||||
Net premiums earned | $ | 132,940 | $ | 130,089 | $ | 125,985 | $ | 121,754 | $ | 119,584 | $ | 118,317 | |||||||||||||||||||||||
Net investment income | 18,247 | 17,853 | 16,518 | 14,894 | 13,341 | 11,945 | |||||||||||||||||||||||||||||
Net realized investment (losses) gains | — | — | — | (33) | 6 | 14 | |||||||||||||||||||||||||||||
Other revenues | 193 | 217 | 182 | 164 | 176 | 301 | |||||||||||||||||||||||||||||
Total revenues | 151,380 | 148,159 | 142,685 | 136,779 | 133,107 | 130,577 | |||||||||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||||||||
Insurance claims and claim expenses (benefits) | 8,232 | 4,812 | 2,873 | 6,701 | 3,450 | (3,389) | |||||||||||||||||||||||||||||
Underwriting and operating expenses | 29,716 | 27,749 | 27,448 | 25,786 | 26,711 | 27,144 | |||||||||||||||||||||||||||||
Service expenses | 185 | 239 | 267 | 80 | 131 | 197 | |||||||||||||||||||||||||||||
Interest expense | 8,066 | 8,059 | 8,048 | 8,039 | 8,035 | 8,036 | |||||||||||||||||||||||||||||
Total expenses | 46,199 | 40,859 | 38,636 | 40,606 | 38,327 | 31,988 | |||||||||||||||||||||||||||||
Income before income taxes | 105,181 | 107,300 | 104,049 | 96,173 | 94,780 | 98,589 | |||||||||||||||||||||||||||||
Income tax expense | 21,768 | 23,345 | 23,765 | 21,715 | 21,840 | 21,751 | |||||||||||||||||||||||||||||
Net income | $ | 83,413 | $ | 83,955 | $ | 80,284 | $ | 74,458 | $ | 72,940 | $ | 76,838 | |||||||||||||||||||||||
Earnings per share | |||||||||||||||||||||||||||||||||||
Basic | $ | 1.03 | $ | 1.02 | $ | 0.97 | $ | 0.89 | $ | 0.87 | $ | 0.91 | |||||||||||||||||||||||
Diluted | $ | 1.01 | $ | 1.00 | $ | 0.95 | $ | 0.88 | $ | 0.86 | $ | 0.90 | |||||||||||||||||||||||
Weighted average common shares outstanding | |||||||||||||||||||||||||||||||||||
Basic | 81,005 | 82,096 | 82,958 | 83,600 | 83,592 | 84,444 | |||||||||||||||||||||||||||||
Diluted | 82,685 | 83,670 | 84,190 | 84,840 | 84,809 | 85,485 | |||||||||||||||||||||||||||||
Other data | |||||||||||||||||||||||||||||||||||
Loss Ratio (1) | 6.2 | % | 3.7 | % | 2.3 | % | 5.5 | % | 2.9 | % | (2.9) | % | |||||||||||||||||||||||
Expense Ratio (2) | 22.4 | % | 21.3 | % | 21.8 | % | 21.2 | % | 22.3 | % | 22.9 | % | |||||||||||||||||||||||
Combined ratio (3) | 28.5 | % | 25.0 | % | 24.1 | % | 26.7 | % | 25.2 | % | 20.1 | % |
Primary portfolio trends | As of and for the three months ended | ||||||||||||||||||||||||||||||||||
December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | December 31, 2022 | September 30, 2022 | ||||||||||||||||||||||||||||||
($ Values In Millions, except as noted below) | |||||||||||||||||||||||||||||||||||
New insurance written (NIW) | $ | 8,927 | $ | 11,334 | $ | 11,478 | $ | 8,734 | $ | 10,719 | $ | 17,239 | |||||||||||||||||||||||
New risk written | 2,354 | 3,027 | 3,022 | 2,258 | 2,797 | 4,616 | |||||||||||||||||||||||||||||
Insurance-in-force (IIF) (1) | 197,029 | 194,781 | 191,306 | 186,724 | 183,968 | 179,173 | |||||||||||||||||||||||||||||
Risk-in-force (RIF) (1) | 51,796 | 51,011 | 49,875 | 48,494 | 47,648 | 46,259 | |||||||||||||||||||||||||||||
Policies in force (count) (1) | 629,690 | 622,993 | 611,441 | 600,294 | 594,142 | 580,525 | |||||||||||||||||||||||||||||
Average loan size ($ value in thousands) (1) | $ | 313 | $ | 313 | $ | 313 | $ | 311 | $ | 310 | $ | 309 | |||||||||||||||||||||||
Coverage percentage (2) | 26.3 | % | 26.2 | % | 26.1 | % | 26.0 | % | 25.9 | % | 25.8 | % | |||||||||||||||||||||||
Loans in default (count) (1) | 5,099 | 4,594 | 4,349 | 4,475 | 4,449 | 4,096 | |||||||||||||||||||||||||||||
Default rate (1) | 0.81 | % | 0.74 | % | 0.71 | % | 0.75 | % | 0.75 | % | 0.71 | % | |||||||||||||||||||||||
Risk-in-force on defaulted loans (1) | $ | 408 | $ | 359 | $ | 335 | $ | 337 | $ | 323 | $ | 284 | |||||||||||||||||||||||
Average net premium yield (3) | 0.27 | % | 0.27 | % | 0.27 | % | 0.26 | % | 0.26 | % | 0.27 | % | |||||||||||||||||||||||
Earnings from cancellations | $ | 1.0 | $ | 0.9 | $ | 1.1 | $ | 1.4 | $ | 1.5 | $ | 1.8 | |||||||||||||||||||||||
Annual persistency (4) | 86.1 | % | 86.2 | % | 86.0 | % | 85.1 | % | 83.5 | % | 80.1 | % | |||||||||||||||||||||||
Quarterly run-off (5) | 3.4 | % | 4.1 | % | 3.7 | % | 3.2 | % | 3.3 | % | 4.0 | % |
Primary NIW | For the three months ended | ||||||||||||||||||||||||||||||||||
December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | December 31, 2022 | September 30, 2022 | ||||||||||||||||||||||||||||||
(In Millions) | |||||||||||||||||||||||||||||||||||
Monthly | $ | 8,614 | $ | 11,038 | $ | 11,266 | $ | 8,550 | $ | 10,451 | $ | 16,676 | |||||||||||||||||||||||
Single | 313 | 296 | 212 | 184 | 268 | 563 | |||||||||||||||||||||||||||||
Primary | $ | 8,927 | $ | 11,334 | $ | 11,478 | $ | 8,734 | $ | 10,719 | $ | 17,239 |
Primary and pool IIF | As of | ||||||||||||||||||||||||||||||||||
December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | December 31, 2022 | September 30, 2022 | ||||||||||||||||||||||||||||||
(In Millions) | |||||||||||||||||||||||||||||||||||
Monthly | $ | 177,764 | $ | 175,308 | $ | 171,685 | $ | 166,924 | $ | 163,903 | $ | 158,897 | |||||||||||||||||||||||
Single | 19,265 | 19,473 | 19,621 | 19,800 | 20,065 | 20,276 | |||||||||||||||||||||||||||||
Primary | 197,029 | 194,781 | 191,306 | 186,724 | 183,968 | 179,173 | |||||||||||||||||||||||||||||
Pool | — | — | 1,000 | 1,025 | 1,049 | 1,078 | |||||||||||||||||||||||||||||
Total | $ | 197,029 | $ | 194,781 | $ | 192,306 | $ | 187,749 | $ | 185,017 | $ | 180,251 |
For the three months ended | |||||||||||||||||||||||||||||||||||
December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | December 31, 2022 | September 30, 2022 | ||||||||||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||||||||||||
The QSR Transactions | |||||||||||||||||||||||||||||||||||
Ceded risk-in-force | $ | 12,626,541 | $ | 12,753,261 | $ | 12,761,294 | $ | 12,635,442 | $ | 12,617,169 | $ | 12,511,797 | |||||||||||||||||||||||
Ceded premiums earned | (41,218) | (42,015) | (42,002) | (42,096) | (42,246) | (42,265) | |||||||||||||||||||||||||||||
Ceded claims and claim expenses | 2,447 | 2,221 | 803 | 1,965 | 1,934 | 248 | |||||||||||||||||||||||||||||
Ceding commission earned | 9,561 | 9,808 | 9,877 | 9,965 | 10,089 | 10,193 | |||||||||||||||||||||||||||||
Profit commission | 22,057 | 22,184 | 23,486 | 22,279 | 22,314 | 23,899 | |||||||||||||||||||||||||||||
The ILN Transactions (1) | |||||||||||||||||||||||||||||||||||
Ceded premiums | $ | (6,305) | $ | (6,925) | $ | (8,815) | $ | (9,095) | $ | (10,112) | $ | (10,730) | |||||||||||||||||||||||
The XOL Transactions | |||||||||||||||||||||||||||||||||||
Ceded premiums | $ | (8,302) | $ | (7,968) | $ | (7,672) | $ | (7,237) | $ | (6,199) | $ | (4,808) |
Primary NIW by FICO | For the three months ended | For the year ended | |||||||||||||||||||||||||||
December 31, 2023 | September 30, 2023 | December 31, 2022 | December 31, 2023 | December 31, 2022 | |||||||||||||||||||||||||
(In Millions) | |||||||||||||||||||||||||||||
>= 760 | $ | 4,564 | $ | 6,261 | $ | 5,574 | $ | 22,995 | $ | 26,751 | |||||||||||||||||||
740-759 | 1,542 | 1,877 | 1,902 | 6,769 | 10,853 | ||||||||||||||||||||||||
720-739 | 1,280 | 1,556 | 1,564 | 5,484 | 8,308 | ||||||||||||||||||||||||
700-719 | 816 | 876 | 918 | 2,816 | 6,452 | ||||||||||||||||||||||||
680-699 | 568 | 623 | 638 | 1,946 | 4,636 | ||||||||||||||||||||||||
<=679 | 157 | 141 | 123 | 463 | 1,734 | ||||||||||||||||||||||||
Total | $ | 8,927 | $ | 11,334 | $ | 10,719 | $ | 40,473 | $ | 58,734 | |||||||||||||||||||
Weighted average FICO | 755 | 758 | 756 | 760 | 750 |
Primary NIW by LTV | For the three months ended | For the year ended | |||||||||||||||||||||||||||
December 31, 2023 | September 30, 2023 | December 31, 2022 | December 31, 2023 | December 31, 2022 | |||||||||||||||||||||||||
(In Millions) | |||||||||||||||||||||||||||||
95.01% and above | $ | 990 | $ | 1,362 | $ | 646 | $ | 3,713 | $ | 5,199 | |||||||||||||||||||
90.01% to 95.00% | 4,107 | 5,414 | 5,325 | 18,929 | 30,031 | ||||||||||||||||||||||||
85.01% to 90.00% | 2,947 | 3,525 | 3,492 | 13,597 | 16,637 | ||||||||||||||||||||||||
85.00% and below | 883 | 1,033 | 1,256 | 4,234 | 6,867 | ||||||||||||||||||||||||
Total | $ | 8,927 | $ | 11,334 | $ | 10,719 | $ | 40,473 | $ | 58,734 | |||||||||||||||||||
Weighted average LTV | 92.2 | % | 92.4 | % | 92.0 | % | 92.1 | % | 92.2 | % |
Primary NIW by purchase/refinance mix | For the three months ended | For the year ended | |||||||||||||||||||||||||||
December 31, 2023 | September 30, 2023 | December 31, 2022 | December 31, 2023 | December 31, 2022 | |||||||||||||||||||||||||
(In Millions) | |||||||||||||||||||||||||||||
Purchase | $ | 8,759 | $ | 11,143 | $ | 10,500 | $ | 39,629 | $ | 57,045 | |||||||||||||||||||
Refinance | 168 | 191 | 219 | 844 | 1,689 | ||||||||||||||||||||||||
Total | $ | 8,927 | $ | 11,334 | $ | 10,719 | $ | 40,473 | $ | 58,734 |
Primary IIF and RIF | As of December 31, 2023 | ||||||||||
IIF | RIF | ||||||||||
Book Year | (In Millions) | ||||||||||
2023 | $ | 38,586 | $ | 10,162 | |||||||
2022 | 52,783 | 14,003 | |||||||||
2021 | 62,051 | 16,190 | |||||||||
2020 | 27,428 | 7,210 | |||||||||
2019 | 7,602 | 2,030 | |||||||||
2018 and before | 8,579 | 2,201 | |||||||||
Total | $ | 197,029 | $ | 51,796 |
Primary IIF by FICO | As of | ||||||||||||||||
December 31, 2023 | September 30, 2023 | December 31, 2022 | |||||||||||||||
(In Millions) | |||||||||||||||||
>= 760 | $ | 98,034 | $ | 97,026 | $ | 89,554 | |||||||||||
740-759 | 34,829 | 34,394 | 32,691 | ||||||||||||||
720-739 | 27,755 | 27,360 | 25,910 | ||||||||||||||
700-719 | 18,734 | 18,484 | 18,245 | ||||||||||||||
680-699 | 12,867 | 12,683 | 12,480 | ||||||||||||||
<=679 | 4,810 | 4,834 | 5,088 | ||||||||||||||
Total | $ | 197,029 | $ | 194,781 | $ | 183,968 | |||||||||||
Primary RIF by FICO | As of | ||||||||||||||||
December 31, 2023 | September 30, 2023 | December 31, 2022 | |||||||||||||||
(In Millions) | |||||||||||||||||
>= 760 | $ | 25,523 | $ | 25,149 | $ | 22,834 | |||||||||||
740-759 | 9,207 | 9,067 | 8,556 | ||||||||||||||
720-739 | 7,387 | 7,254 | 6,807 | ||||||||||||||
700-719 | 5,021 | 4,938 | 4,859 | ||||||||||||||
680-699 | 3,433 | 3,373 | 3,305 | ||||||||||||||
<=679 | 1,225 | 1,230 | 1,287 | ||||||||||||||
Total | $ | 51,796 | $ | 51,011 | $ | 47,648 |
Primary IIF by LTV | As of | ||||||||||||||||
December 31, 2023 | September 30, 2023 | December 31, 2022 | |||||||||||||||
(In Millions) | |||||||||||||||||
95.01% and above | $ | 19,609 | $ | 19,007 | $ | 17,577 | |||||||||||
90.01% to 95.00% | 95,415 | 93,908 | 87,354 | ||||||||||||||
85.01% to 90.00% | 60,348 | 59,371 | 55,075 | ||||||||||||||
85.00% and below | 21,657 | 22,495 | 23,962 | ||||||||||||||
Total | $ | 197,029 | $ | 194,781 | $ | 183,968 |
Primary RIF by LTV | As of | ||||||||||||||||
December 31, 2023 | September 30, 2023 | December 31, 2022 | |||||||||||||||
(In Millions) | |||||||||||||||||
95.01% and above | $ | 6,062 | $ | 5,876 | $ | 5,408 | |||||||||||
90.01% to 95.00% | 28,184 | 27,741 | 25,797 | ||||||||||||||
85.01% to 90.00% | 14,961 | 14,704 | 13,584 | ||||||||||||||
85.00% and below | 2,589 | 2,690 | 2,859 | ||||||||||||||
Total | $ | 51,796 | $ | 51,011 | $ | 47,648 |
Primary RIF by Loan Type | As of | ||||||||||||||||
December 31, 2023 | September 30, 2023 | December 31, 2022 | |||||||||||||||
Fixed | 98 | % | 98 | % | 99 | % | |||||||||||
Adjustable rate mortgages: | |||||||||||||||||
Less than five years | — | — | — | ||||||||||||||
Five years and longer | 2 | 2 | 1 | ||||||||||||||
Total | 100 | % | 100 | % | 100 | % |
Primary IIF | As of and for the three months ended | ||||||||||||||||
December 31, 2023 | September 30, 2023 | December 31, 2022 | |||||||||||||||
(In Millions) | |||||||||||||||||
IIF, beginning of period | $ | 194,781 | $ | 191,306 | $ | 179,173 | |||||||||||
NIW | 8,927 | 11,334 | 10,719 | ||||||||||||||
Cancellations, principal repayments and other reductions | (6,679) | (7,859) | (5,924) | ||||||||||||||
IIF, end of period | $ | 197,029 | $ | 194,781 | $ | 183,968 |
Top 10 primary RIF by state | As of | ||||||||||||||||
December 31, 2023 | September 30, 2023 | December 31, 2022 | |||||||||||||||
California | 10.2 | % | 10.3 | % | 10.6 | % | |||||||||||
Texas | 8.7 | 8.7 | 8.7 | ||||||||||||||
Florida | 7.6 | 7.7 | 8.2 | ||||||||||||||
Georgia | 4.1 | 4.1 | 4.1 | ||||||||||||||
Washington | 4.0 | 4.0 | 3.9 | ||||||||||||||
Illinois | 4.0 | 3.9 | 3.9 | ||||||||||||||
Virginia | 3.9 | 4.0 | 4.1 | ||||||||||||||
Pennsylvania | 3.4 | 3.4 | 3.4 | ||||||||||||||
Maryland | 3.3 | 3.3 | 3.4 | ||||||||||||||
Colorado | 3.2 | 3.3 | 3.5 | ||||||||||||||
Total | 52.4 | % | 52.7 | % | 53.8 | % |
As of December 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Book year | Original Insurance Written | Remaining Insurance in Force | % Remaining of Original Insurance | Policies Ever in Force | Number of Policies in Force | Number of Loans in Default | # of Claims Paid | Incurred Loss Ratio (Inception to Date) (1) | Cumulative Default Rate (2) | Current Default Rate (3) | |||||||||||||||||||||||||||||||||||||||||||||||||
($ Values in Millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2014 and prior | $ | 3,613 | $ | 157 | 4 | % | 15,441 | 980 | 20 | 57 | 3.7 | % | 0.5 | % | 2.0 | % | |||||||||||||||||||||||||||||||||||||||||||
2015 | 12,422 | 990 | 8 | % | 52,548 | 5,561 | 84 | 141 | 2.5 | % | 0.4 | % | 1.5 | % | |||||||||||||||||||||||||||||||||||||||||||||
2016 | 21,187 | 2,011 | 9 | % | 83,626 | 10,697 | 209 | 170 | 1.8 | % | 0.5 | % | 2.0 | % | |||||||||||||||||||||||||||||||||||||||||||||
2017 | 21,582 | 2,487 | 12 | % | 85,897 | 13,684 | 336 | 153 | 2.2 | % | 0.6 | % | 2.5 | % | |||||||||||||||||||||||||||||||||||||||||||||
2018 | 27,295 | 2,934 | 11 | % | 104,043 | 15,452 | 481 | 150 | 3.1 | % | 0.6 | % | 3.1 | % | |||||||||||||||||||||||||||||||||||||||||||||
2019 | 45,141 | 7,602 | 17 | % | 148,423 | 32,733 | 505 | 59 | 2.3 | % | 0.4 | % | 1.5 | % | |||||||||||||||||||||||||||||||||||||||||||||
2020 | 62,702 | 27,428 | 44 | % | 186,174 | 92,425 | 581 | 21 | 1.9 | % | 0.3 | % | 0.6 | % | |||||||||||||||||||||||||||||||||||||||||||||
2021 | 85,574 | 62,051 | 73 | % | 257,972 | 199,115 | 1,476 | 28 | 4.6 | % | 0.6 | % | 0.7 | % | |||||||||||||||||||||||||||||||||||||||||||||
2022 | 58,734 | 52,783 | 90 | % | 163,281 | 150,963 | 1,262 | 7 | 20.9 | % | 0.8 | % | 0.8 | % | |||||||||||||||||||||||||||||||||||||||||||||
2023 | 40,473 | 38,586 | 95 | % | 111,994 | 108,080 | 145 | 1 | 8.9 | % | (4) | 0.1 | % | 0.1 | % | ||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 378,723 | $ | 197,029 | 1,209,399 | 629,690 | 5,099 | 787 |
For the three months ended | For the year ended | ||||||||||||||||||||||
December 31, 2023 | December 31, 2022 | December 31, 2023 | December 31, 2022 | ||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||
Beginning balance | $ | 116,078 | $ | 94,944 | $ | 99,836 | $ | 103,551 | |||||||||||||||
Less reinsurance recoverables (1) | (25,956) | (19,755) | (21,587) | (20,320) | |||||||||||||||||||
Beginning balance, net of reinsurance recoverables | 90,122 | 75,189 | 78,249 | 83,231 | |||||||||||||||||||
Add claims incurred: | |||||||||||||||||||||||
Claims and claim expenses (benefits) incurred: | |||||||||||||||||||||||
Current year (2) | 17,298 | 17,033 | 78,285 | 45,168 | |||||||||||||||||||
Prior years (3) | (9,789) | (13,583) | (56,390) | (48,762) | |||||||||||||||||||
Total claims and claim expenses (benefits) incurred (4) | 7,509 | 3,450 | 21,895 | (3,594) | |||||||||||||||||||
Less claims paid: | |||||||||||||||||||||||
Claims and claim expenses paid: | |||||||||||||||||||||||
Current year (2) | 481 | 1 | 600 | 74 | |||||||||||||||||||
Prior years (3) | 1,181 | 389 | 3,575 | 1,314 | |||||||||||||||||||
Reinsurance terminations | (491) | — | (491) | — | |||||||||||||||||||
Total claims and claim expenses paid | 1,171 | 390 | 3,684 | 1,388 | |||||||||||||||||||
Reserve at end of period, net of reinsurance recoverables | 96,460 | 78,249 | 96,460 | 78,249 | |||||||||||||||||||
Add reinsurance recoverables (1) | 27,514 | 21,587 | 27,514 | 21,587 | |||||||||||||||||||
Ending balance | $ | 123,974 | $ | 99,836 | $ | 123,974 | $ | 99,836 |
For the three months ended | For the year ended | ||||||||||||||||||||||
December 31, 2023 | December 31, 2022 | December 31, 2023 | December 31, 2022 | ||||||||||||||||||||
Beginning default inventory | 4,594 | 4,096 | 4,449 | 6,227 | |||||||||||||||||||
Plus: new defaults | 2,039 | 1,639 | 6,758 | 5,225 | |||||||||||||||||||
Less: cures | (1,458) | (1,262) | (5,892) | (6,916) | |||||||||||||||||||
Less: claims paid | (70) | (22) | (199) | (81) | |||||||||||||||||||
Less: rescission and claims denied | (6) | (2) | (17) | (6) | |||||||||||||||||||
Ending default inventory | 5,099 | 4,449 | 5,099 | 4,449 |
For the three months ended | For the year ended | ||||||||||||||||||||||
December 31, 2023 | December 31, 2022 | December 31, 2023 | December 31, 2022 | ||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||
Number of claims paid (1) | 70 | 22 | 199 | 81 | |||||||||||||||||||
Total amount paid for claims | $ | 2,060 | $ | 492 | $ | 5,192 | $ | 1,741 | |||||||||||||||
Average amount paid per claim | $ | 29 | $ | 22 | $ | 26 | $ | 21 | |||||||||||||||
Severity (2) | 64 | % | 60% | 55 | % | 49 | % |
Average reserve per default: | As of | ||||||||||
December 31, 2023 | December 31, 2022 | ||||||||||
(In Thousands) | |||||||||||
Case (1) | $ | 22.4 | $ | 20.8 | |||||||
IBNR (1) (2) | 1.9 | 1.6 | |||||||||
Total | $ | 24.3 | $ | 22.4 |
As of | |||||||||||||||||
December 31, 2023 | September 30, 2023 | December 31, 2022 | |||||||||||||||
(In Thousands) | |||||||||||||||||
Available assets | $ | 2,717,804 | $ | 2,602,680 | $ | 2,378,627 | |||||||||||
Risk-based required assets | 1,516,140 | 1,414,233 | 1,203,708 |
Cover Page |
Feb. 14, 2024 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Document Period End Date | Feb. 14, 2024 |
Entity Registrant Name | NMI Holdings, Inc. |
Entity Central Index Key | 0001547903 |
Amendment Flag | false |
Entity Incorporation, State or Country Code | DE |
Entity File Number | 001-36174 |
Entity Tax Identification Number | 45-4914248 |
Entity Address, Address Line One | 2100 Powell Street |
Entity Address, Address Line Two | 12th Floor |
Entity Address, City or Town | Emeryville |
Entity Address, State or Province | CA |
Entity Address, Postal Zip Code | 94608 |
City Area Code | 855 |
Local Phone Number | 530-6642 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Class A Common Stock, par value $0.01 |
Trading Symbol | NMIH |
Security Exchange Name | NASDAQ |
Entity Emerging Growth Company | false |
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