NMI HOLDINGS, INC. EMERYVILLE, Calif., May 5, 2015 /PRNewswire/ -- NMI Holdings, Inc. (Nasdaq: NMIH) today reported results for the first quarter ended Mar. 31, 2015. The company reported a net loss for the first quarter of $7.8 million or $0.13 per share, which compares with a loss of $10.0 million, or $0.17 per share, in the prior quarter, and $15.1 million, or $0.26 per share, in the first quarter of 2014.
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Bradley Shuster, chairman and CEO of National MI, said, "In the first quarter, National MI delivered solid growth in primary flow new insurance written, and we are off to a great start for the year. We also were pleased to see release of the final PMIERs last month, which we believe will help to restore confidence in the private mortgage insurance market. With significant available assets, National MI has the capacity to write approximately $20 billion of new insurance, positioning us to take on an increasing role in providing credit enhancement to the housing finance industry."
-- "Flow" new insurance written (NIW) for the first quarter was $1,154
million, up 23% from $936 million in the prior quarter and up
significantly from $77 million in the same quarter a year ago.
-- Aggregated single-premium NIW for the first quarter was $542 million,
compared with $757 million in the prior quarter and $278 million in the
first quarter of 2014.
-- Total NIW for the first quarter, which typically is weak seasonally
compared with the fourth quarter, was $1,696 million, up slightly from
$1,692 million in the prior quarter and up substantially from $354
million in the same quarter a year ago.
-- Premiums earned for the quarter were $6.9 million, up from $5.5 million
in the prior quarter. Investment income in the first quarter was $1.6
million, up from $1.3 million in the prior quarter.
-- Total expenses in the first quarter were $18.5 million, including
stock-based compensation expense of approximately $2 million. This is up
approximately 5% from $17.7 million in the prior quarter, reflecting
modest increases in both fixed and variable expenses.
-- As of the end of the first quarter, the company had approved master
policies in place with 777 customers, up from 735 as of the end of the
prior quarter, and up from 436 as of the end of the first quarter of
2014. Customers delivering NIW in the quarter grew to 291, which
compares with 251 in the prior quarter and 35 in the same quarter a year
ago.
-- As of Mar. 31, 2015, the company had primary insurance-in-force of
$4,835 million, up from $3,370 million at the prior quarter end and up
839% from $515 million as of Mar. 31, 2014. Pool insurance-in-force as
of the end of the first quarter was $4,621 million, compared with $4,722
million at the prior quarter-end and $5,029 million as of Mar. 31, 2014.
-- As of Mar. 31, 2015, cash and investments were $434 million, including
$158 million at the holding company, and book equity was $423 million,
equal to $7.23 per share. This book value excludes any benefit
attributable to the company's net deferred tax asset of approximately
$54 million as of Dec. 31, 2014.
-- As of Mar. 31, 2015, the company's risk-to-available assets ratio in its
insurance companies was 5:1, which compares with the maximum
risk-to-available assets ratio under the final PMIERs of 18:1.
Conference Call and Webcast Details
NMI Holdings, Inc. will hold a conference call today, May 5, 2015, at 2:00 p.m. Pacific / 5:00 p.m. Eastern to discuss results for the quarter. The conference call will be broadcast live on the company's website, on the "Events and Presentations" page of the "Investors" section at http://ir.nationalmi.com. The call may also be accessed by dialing (888) 734-0328 inside the U.S., or (678) 894-3054 for international callers using Conference ID: 29793567, or by referencing NMI Holdings, Inc. Investors and analysts are asked to dial-in ten minutes before the conference call begins.
About National MI
National Mortgage Insurance Corporation (National MI), a subsidiary of NMI Holdings, Inc. (NASDAQ: NMIH), is a U.S.-based, private mortgage insurance company enabling low down payment borrowers to realize home ownership while protecting lenders and investors against losses related to a borrower's default. To learn more, please visit www.nationalmi.com.
Cautionary Note Regarding Forward-Looking Statements
Certain statements contained in this press release or any other written or oral statements made by or on behalf of the Company in connection therewith may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (Securities Act), Section 21E of the Securities Exchange Act of 1934, as amended (Exchange Act), and the U.S. Private Securities Litigation Reform Act of 1995 (PSLRA). The PSLRA provides a "safe harbor" for any forward-looking statements. All statements other than statements of historical fact included in or incorporated by reference in this release are forward-looking statements, including any statements about our expectations, outlook, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance. These statements are often, but not always, made through the use of words or phrases such as "anticipate," "believe," "can," "could," "may," "predict," "assume," "potential," "should," "will," "estimate," "plan," "project," "continuing," "ongoing," "expect," "intend" and similar words or phrases. All forward-looking statements are only predictions and involve estimates, known and unknown risks, assumptions and uncertainties that may turn out to be inaccurate and could cause actual results to differ materially from those expressed in them. Many risks and uncertainties are inherent in our industry and markets. Others are more specific to our business and operations. Important factors that could cause actual events or results to differ materially from those indicated in such statements include, but are not limited to: our ability to implement our business strategy, including our ability to attract and retain a diverse customer base and to achieve a diversified mix of business across the spectrum of our product offerings; changes in the business practices of the GSEs that may impact the use of private mortgage insurance; our ability to comply with the financial requirements of the PMIERs, once effective; our ability to maintain sufficient holding company liquidity to meet our short- and long-term liquidity needs; heightened competition for our mortgage insurance business from other private mortgage insurers and the FHA; changes to laws and regulations that impact the role of the GSEs in the secondary market or the use of private mortgage insurance; and general economic downturns and volatility. These risks and uncertainties also include, but are not limited to, those set forth under the heading "Risk Factors" detailed in Item 1A of Part I of our Annual Report on Form 10-K for the year ended December 31, 2014 and other reports we file with the SEC. All subsequent written and oral forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. We caution you not to place undue reliance on any forward-looking statement, which speaks only as of the date on which it is made, and we undertake no obligation to publicly update or revise any forward-looking statement to reflect new information, future events or circumstances that occur after the date on which the statement is made or to reflect the occurrence of unanticipated events except as required by law.
Investor Contact
John M. Swenson
Vice President, Investor Relations and Treasury
(510) 788-8417
john.swenson@nationalmi.com
Press Contact
Mary McGarity
Strategic Vantage Mortgage Public Relations
(203) 513-2721
MaryMcGarity@StrategicVantage.com
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
For the three months ended March 31,
------------------------------------
2015 2014
---- ----
Revenues (In Thousands, except for share data)
Net premiums written $12,921 $5,178
Increase in unearned
premiums (5,985) (3,274)
Net premiums earned 6,936 1,904
Net investment income 1,596 1,489
Net realized
investment gains 613 -
Gain from change in
fair value of warrant
liability 1,248 817
Gain from settlement
of warrants - 37
Total revenues 10,393 4,247
------ -----
Expenses
Insurance claims and
claims expenses 104 -
Underwriting and
operating expenses 18,350 19,302
Total expenses 18,454 19,302
Loss before income
taxes (8,061) (15,055)
Income tax benefit (241) -
Net loss $(7,820) $(15,055)
======= ========
Loss per share
Basic and diluted loss
per share $(0.13) $(0.26)
Weighted average
common shares
outstanding 58,485,899 58,061,299
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
March 31, 2015 December 31,
2014
-------------- -------------
(In Thousands)
Total
investment
portfolio $367,947 $336,501
Cash and
cash
equivalents 66,420 103,021
Deferred
policy
acquisition
costs,
net 5,283 2,985
Software
and
equipment,
net 12,913 11,806
Other
assets 9,176 8,952
Total
assets $461,739 $463,265
======== ========
Reserve
for
insurance
claims
and
claims
expenses $187 $83
Accounts
payable
and
accrued
expenses 6,845 10,646
Unearned
premiums 28,054 22,069
Warrant
liability 2,124 3,372
Current
tax
payable 1,190 -
Deferred
tax
liability 137 137
Total
liabilities 38,537 36,307
------ ------
Total
shareholders'
equity 423,202 426,958
Total
liabilities
and
shareholders'
equity $461,739 $463,265
======== ========
New Insurance Written (NIW), Insurance in Force (IIF) and Risk in Force (RIF)
The table below shows primary NIW, IIF, RIF, policies in force, the weighted average coverage and loans in default, by quarter, for the last five quarters.
Primary portfolio trends As of and for the Quarter Ended
-------------------------------
March 31, 2015 December 31, 2014 September 30, 2014 June 30, 2014 March 31, 2014
-------------- ----------------- ------------------ ------------- --------------
(Dollars in Thousands)
New insurance written $1,696,142 $1,692,187 $974,910 $429,944 $354,313
Insurance in force (1) $4,835,248 $3,369,664 $1,812,956 $939,753 $514,796
Risk in force (1) $1,145,602 $801,561 $435,722 $220,949 $115,467
Policies in force (1) 21,225 14,603 7,628 3,865 2,072
Weighted average coverage (2) 23.7% 23.8% 24.0% 23.5% 22.4%
Loans in default (count) 6 4 - 1 -
Risk in force on defaulted loans $350 $208 $ - $100 $ -
(1) Reported as of the end of the period.
(2) End of period RIF divided by IIF.
The table below shows primary and pool IIF, NIW and premiums written and earned.
Primary and pool IIF and NIW As of and for the quarter ended
-------------------------------
March 31, 2015 December 31, 2014
-------------- -----------------
IIF NIW IIF NIW
--- --- --- ---
(In Thousands)
Monthly $2,258,776 $918,697 $1,400,893 $735,559
Single 680,880 235,517 454,691 200,108
Aggregated single 1,895,592 541,928 1,514,080 756,520
--------- ------- --------- -------
Total primary $4,835,248 $1,696,142 $3,369,664 $1,692,187
Pool 4,621,346 - 4,721,674 -
Total $9,456,594 $1,696,142 $8,091,338 $1,692,187
========== ========== ========== ==========
Primary and pool
premiums written
and earned For the quarter ended
---------------------
March 31, 2015 December 31,
2014
-------------- -------------
(In Thousands)
Net premiums
written $12,921 $14,139
Net premiums
earned 6,936 5,510
The tables below show the weighted average FICO and the weighted average LTV, by policy type, for the quarter in which the policy was originated.
Weighted Average FICO
March December 31, March
31, 2014 31,
2015 2014
------ ------------ ------
Monthly 740 740 749
Single 767 753 759
Weighted Average LTV
March 31, December 31, March 31,
2015 2014 2014
--------- ------------ ---------
Monthly 91% 91% 92%
Single 89 90 89
The table below reflects our total primary and pool IIF and RIF by FICO.
As of March 31, 2015
--------------------
Total
Portfolio IIF RIF
--- ---
(Dollars in Thousands)
>=
740 $6,802,681 71.9% $787,381 63.6%
680 -
739 2,333,269 24.7 403,299 32.6
620 -
679 320,644 3.4 48,012 3.8
<=
619 - - - -
Total $9,456,594 100.0% $1,238,692 100.0%
========== ===== ========== =====
The table below reflects our primary NIW, IIF and RIF by FICO by book year.
Year to date March 31, 2015 As of March 31, 2015
--------------------------- --------------------
Primary - 2015 Book NIW IIF RIF
--- --- ---
(Dollars in Thousands)
>= 740 $1,099,281 64.8% $1,091,628 64.7% $251,081 63.8%
680 - 739 520,069 30.7 518,500 30.7 124,849 31.7
620 - 679 76,792 4.5 76,549 4.6 17,805 4.5
<= 619 - - - - - -
Total $1,696,142 100.0% $1,686,677 100.0% $393,735 100.0%
---------- ----- ---------- ----- -------- -----
Year ended December 31, 2014 As of March 31, 2015
---------------------------- --------------------
Primary - 2014 Book NIW IIF RIF
--- --- ---
(Dollars in Thousands)
>= 740 $2,178,995 63.1% $1,896,783 62.1% $446,935 61.2%
680 - 739 1,156,785 33.5 1,049,082 34.3 256,309 35.1
620 - 679 115,574 3.4 110,474 3.6 27,239 3.7
<= 619 - - - - - -
Total $3,451,354 100.0% $3,056,339 100.0% $730,483 100.0%
---------- ----- ---------- ----- -------- -----
Year ended December 31, 2013 As of March 31, 2015
---------------------------- --------------------
Primary - 2013 Book NIW IIF RIF
--- --- ---
(Dollars in Thousands)
>= 740 $113,907 70.2% $61,109 66.3% $13,931 65.1%
680 - 739 47,102 29.0 30,127 32.7 7,183 33.6
620 - 679 1,163 0.8 996 1.0 270 1.3
<= 619 - - - - - -
Total $162,172 100.0% $92,232 100.0% $21,384 100.0%
-------- ----- ------- ----- ------- -----
The table below reflects our pool NIW, IIF and RIF by FICO.
Year ended December 31, 2013 As of March 31, 2015
---------------------------- --------------------
Pool - 2013 Book NIW IIF RIF
--- --- ---
(Dollars in Thousands)
>= 740 $4,186,844 81.0% $3,753,161 81.2% $75,434 81.0%
680 - 739 832,755 16.1 735,560 15.9 14,958 16.1
620 - 679 152,065 2.9 132,625 2.9 2,698 2.9
<= 619 - - - - - -
Total $5,171,664 100.0% $4,621,346 100.0% $93,090 100.0%
---------- ----- ---------- ----- ------- -----
The tables below reflect our average primary loan size by FICO and the percentage of our RIF by loan type.
March 31, December 31,
2015 2014
---------- ------------
Average primary loan size by
FICO (In Thousands)
>= 740 $234 $236
680 - 739 221 225
620 - 679 200 205
<= 619 - -
Percentage of RIF by loan type Primary Pool
------- ----
As of March 31, 2015
Fixed 96.4% 100.0%
Adjustable rate mortgages:
Less than five years - -
Five years and longer 3.6 -
Total 100.0% 100.0%
===== =====
The following table reflects our RIF by LTV ratio.
Total RIF by LTV Primary Pool
------- ----
RIF % of Total Policy Count RIF % of Total Policy Count
LTV LTV
--- ---
As of March 31, 2015 (Dollars in Thousands)
95.01% and above $11,459 1.0% 226 $ - - % -
90.01% to 95.00% 608,361 53.1 9,681 - - -
85.01% to 90.00% 418,850 36.6 7,175 - - -
80.01% to 85.00% 106,918 9.3 4,142 - - -
80.00% and below 14 - 1 93,090 100.0 20,257
Total RIF $1,145,602 100.0% 21,225 $93,090 100.0% 20,257
========== ===== ====== ======= ===== ======
Geographic Dispersion
The following tables show the distribution by state of our IIF and RIF, for both primary and pool insurance.
Top 10 primary IIF and RIF by state IIF RIF
--- ---
As of March 31, 2015
1. California 15.1% 14.7%
2. Texas 6.5 6.9
3. Florida 4.9 5.0
4. Michigan 4.7 4.7
5. Colorado 3.9 3.8
6. Arizona 3.7 3.9
7. Pennsylvania 3.7 3.7
8. Virginia 3.7 3.5
9. Ohio 3.6 3.8
10. North Carolina 3.5 3.6
Total 53.3% 53.6%
===== === ===
Top 10 pool IIF and RIF by state IIF RIF
--- ---
As of March 31, 2015
1. California 28.6% 28.0%
2. Texas 5.3 5.4
3. Colorado 3.9 3.9
4. Washington 3.8 3.8
5. Massachusetts 3.7 3.7
6. Illinois 3.7 3.7
7. Virginia 3.7 3.7
8. New York 2.8 2.9
9. New Jersey 2.8 2.8
10. Florida 2.7 2.8
Total 61.0% 60.7%
===== === ===
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SOURCE NMI Holdings, Inc.
