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Reasons Why You Should Retain NMI Holdings (NMIH) Stock
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NMI Holdings Inc. (NMIH - Free Report) has been favored by investors on the back of higher single premium policy cancellations and flexible liquidity, which make it worth retaining in one’s portfolio.
Growth Projections
The Zacks Consensus Estimate for NMI Holdings’ 2023 earnings is pegged at $3.62, indicating a 6.78% increase from the year-ago reported figure on 8.7% higher revenues of $569.1 million.
The consensus estimate for 2024 earnings stands at $3.98, indicating a 9.9% increase from the year-ago reported figure on 10.2% higher revenues of $627.1 million.
Earnings Surprise History
NMI Holdings has a decent earnings surprise history. It beat estimates in each of the last four quarters with the average being 6.03%.
Return on Equity (ROE)
NMI Holdings’ ROE for the trailing 12 months is 18.8%, better than the industry average of 6.7%. The metric expanded 280 basis points year over year. This reflects its efficiency in utilizing shareholders’ funds.
Zacks Rank
NMI Holdings currently carries a Zacks Rank #3 (Hold). In the past year, the stock has gained 8.5% against the industry’s decrease of 3%.
Image Source: Zacks Investment Research
Business Tailwinds
NMI Holdings continued to deliver significant new business production, robust growth in high-quality and short portfolios as well as continued success in the capital and reinsurance markets.
By virtue of the broad resiliency of the housing market, growth in total mortgage origination volume and increasing size of the U.S. mortgage insurance market, new insurance written (NIW), the primary driver of insurance-in-force (IIF) of National MI is expected to improve. Also, the continued expansion of customer franchise and growth in monthly and single premium policy production tied to the growth in customer franchise and market presence are expected to drive NIW of NMIH.
NMI Holdings expects persistency to continue to improve and drive further increases in the embedded portfolio value for the remainder of the year.
NMI Holdings remains well-poised to gain from the growth of IIF, increased monthly policy production and higher single premium policy cancellations, which continue to contribute to net premiums earned, one of the key drivers of revenue growth.
Net investment income is expected to improve with growth in the size of the total investment portfolio and an increase in book yield.
NMI Holdings boasts a strong capital position and had total PMIERs available assets of $2.4 billion and net risk-based required assets of $1.2 billion at fourth-quarter 2022 end. NMIH also has access to $250 million of undrawn revolving credit capacity under the senior secured credit facilities.
The company remains well-poised to continue delivering strong mid-teens returns and compounded book value-per-share growth for shareholders.
NMI Holdings has $68.4 million of repurchase capacity remaining under the program.
Axis Capital beat estimates in three of the last four quarters and missed in one, the average being 5.70%. The Zacks Consensus Estimate for both 2023 and 2024 has moved 0.1% north in the past seven days.
The Zacks Consensus Estimate for AXS’ 2023 and 2024 earnings per share is pegged at $7.53 and $8.42, indicating year-over-year increase of 29.6% and 11.7%, respectively. In the past year, AXS has gained 12.2%.
The Zacks Consensus Estimate for Everest Re’s 2023 and 2024 earnings per share is pegged at $44.68 and $51.29, indicating year-over-year increase of 64.9% and 15.7%, respectively. In the past year, RE has gained 35.8%.
RE beat estimates in each of the last four quarters, the average being 18.41%.
Kinsale Capital has a solid track record of beating earnings estimates in each of the last four quarters, the average being 13.83%. In the past year, KNSL has gained 46.2%.
The Zacks Consensus Estimate for Kinsale Capital’s 2023 and 2024 earnings per share is pegged at $9.86 and $11.85, indicating year-over-year increase of 26.4% and 20.2%, respectively.
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Reasons Why You Should Retain NMI Holdings (NMIH) Stock
NMI Holdings Inc. (NMIH - Free Report) has been favored by investors on the back of higher single premium policy cancellations and flexible liquidity, which make it worth retaining in one’s portfolio.
Growth Projections
The Zacks Consensus Estimate for NMI Holdings’ 2023 earnings is pegged at $3.62, indicating a 6.78% increase from the year-ago reported figure on 8.7% higher revenues of $569.1 million.
The consensus estimate for 2024 earnings stands at $3.98, indicating a 9.9% increase from the year-ago reported figure on 10.2% higher revenues of $627.1 million.
Earnings Surprise History
NMI Holdings has a decent earnings surprise history. It beat estimates in each of the last four quarters with the average being 6.03%.
Return on Equity (ROE)
NMI Holdings’ ROE for the trailing 12 months is 18.8%, better than the industry average of 6.7%. The metric expanded 280 basis points year over year. This reflects its efficiency in utilizing shareholders’ funds.
Zacks Rank
NMI Holdings currently carries a Zacks Rank #3 (Hold). In the past year, the stock has gained 8.5% against the industry’s decrease of 3%.
Image Source: Zacks Investment Research
Business Tailwinds
NMI Holdings continued to deliver significant new business production, robust growth in high-quality and short portfolios as well as continued success in the capital and reinsurance markets.
By virtue of the broad resiliency of the housing market, growth in total mortgage origination volume and increasing size of the U.S. mortgage insurance market, new insurance written (NIW), the primary driver of insurance-in-force (IIF) of National MI is expected to improve. Also, the continued expansion of customer franchise and growth in monthly and single premium policy production tied to the growth in customer franchise and market presence are expected to drive NIW of NMIH.
NMI Holdings expects persistency to continue to improve and drive further increases in the embedded portfolio value for the remainder of the year.
NMI Holdings remains well-poised to gain from the growth of IIF, increased monthly policy production and higher single premium policy cancellations, which continue to contribute to net premiums earned, one of the key drivers of revenue growth.
Net investment income is expected to improve with growth in the size of the total investment portfolio and an increase in book yield.
NMI Holdings boasts a strong capital position and had total PMIERs available assets of $2.4 billion and net risk-based required assets of $1.2 billion at fourth-quarter 2022 end. NMIH also has access to $250 million of undrawn revolving credit capacity under the senior secured credit facilities.
The company remains well-poised to continue delivering strong mid-teens returns and compounded book value-per-share growth for shareholders.
NMI Holdings has $68.4 million of repurchase capacity remaining under the program.
Stocks to Consider
Some better-ranked stocks from the property and casualty insurance industry are Axis Capital Holdings Limited (AXS - Free Report) , Everest Re Group, Ltd. and Kinsale Capital Group, Inc. (KNSL - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Axis Capital beat estimates in three of the last four quarters and missed in one, the average being 5.70%. The Zacks Consensus Estimate for both 2023 and 2024 has moved 0.1% north in the past seven days.
The Zacks Consensus Estimate for AXS’ 2023 and 2024 earnings per share is pegged at $7.53 and $8.42, indicating year-over-year increase of 29.6% and 11.7%, respectively. In the past year, AXS has gained 12.2%.
The Zacks Consensus Estimate for Everest Re’s 2023 and 2024 earnings per share is pegged at $44.68 and $51.29, indicating year-over-year increase of 64.9% and 15.7%, respectively. In the past year, RE has gained 35.8%.
RE beat estimates in each of the last four quarters, the average being 18.41%.
Kinsale Capital has a solid track record of beating earnings estimates in each of the last four quarters, the average being 13.83%. In the past year, KNSL has gained 46.2%.
The Zacks Consensus Estimate for Kinsale Capital’s 2023 and 2024 earnings per share is pegged at $9.86 and $11.85, indicating year-over-year increase of 26.4% and 20.2%, respectively.