Overview

* NMI Holdings ( NMIH ) Q2 revenue beats analyst expectations, adjusted EPS also exceeds estimates

* Adjusted net income for Q2 beats analyst expectations

* Primary insurance-in-force grows 5% yr/yr, indicating continued expansion

Outlook

* Company well-positioned for differentiated growth and returns

* NMI Holdings ( NMIH ) expects to deliver value for shareholders

Result Drivers

* INSURANCE-IN-FORCE GROWTH - Primary insurance-in-force increased to $214.7 bln, up from $211.3 bln in the previous qtr and $203.5 bln yr-ago

* CLAIMS IMPACT - Insurance claims and claim expenses rose to $13.4 mln, significantly impacting loss ratio, which increased to 9.0% from 3.0% in the previous qtr

* REVENUE INCREASE - Total revenue rose to $173.8 mln, driven by growth in net premiums earned and investment income

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $173.80 $147.90

Revenue mln mln (4

Analysts

)

Q2 Beat $1.22 $1.2 (8

Adjusted Analysts

EPS )

Q2 EPS $1.21

Q2 Beat $96.50 $95.60

Adjusted mln mln (6

Net Analysts

Income )

Q2 Net $96.20

Income mln

Q2 $29.50

Operatin mln

g

Expenses

Q2 ROE 16.2%

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the property & casualty insurance peer group is "buy"

* Wall Street's median 12-month price target for NMI Holdings Inc ( NMIH ) is $42.50, about 11% above its July 28 closing price of $37.81

* The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)