A month has gone by since the last earnings report for NMI Holdings (NMIH Quick QuoteNMIH - Free Report) . Shares have added about 2.4% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is NMI Holdings due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

NMI Holdings Q2 Earnings and Revenues Beat Estimates

NMI Holdings reported second-quarter 2024 operating net income per share of $1.20, which beat the Zacks Consensus Estimate by 15.4%. The bottom line increased 26.3% year over year. The quarterly results reflected higher premiums and net investment income, and increased persistency, which drove growth in the company’s high-quality insured portfolio.

Operational Update

NMI Holdings’ total operating revenues of $162 million increased 13.3% year over year on higher net premiums earned (up 12%) and net investment income (up 25%). Revenues beat the Zacks Consensus Estimate by 2.1%.

Primary insurance in force increased 6.4% to $203.5 billion. Annual persistency was 85.4%, down 60 basis points (bps) year over year. New insurance written was $12.5 billion, up 9% year over year.

Underwriting and operating expenses totaled $28.3 million, up 3.2% year over year. Insurance claims and claim expenses were $0.3 million, reflecting a drop of 90.4% year over year. The loss ratio was 0.2, which improved 210 bps year over year.

The adjusted expense ratio of 20.1 improved 160 bps year over year, while the adjusted combined ratio of 20.3 improved 80 bps year over year.

Financial Update

Book value per share, a measure of net worth, was up 17% year over year to $27.54 as of Jun 30, 2024. 

NMI Holdings had $62.6 million in cash and cash equivalents, which decreased 35.2% from 2023 end. The debt balance of $414.2 million increased 4.2% from the end of 2023. 

The annualized adjusted return on equity was 18.3%, which contracted 30 bps year over year. 

Total PMIERs available assets were $2.8 billion. Net risk-based required assets totaled $1.7 billion at the end of second-quarter 2024.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in estimates review.

VGM Scores

At this time, NMI Holdings has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise NMI Holdings has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry Player

NMI Holdings belongs to the Zacks Insurance - Property and Casualty industry. Another stock from the same industry, Chubb (CB Quick QuoteCB - Free Report) , has gained 1.1% over the past month. More than a month has passed since the company reported results for the quarter ended June 2024.

Chubb reported revenues of $13.86 billion in the last reported quarter, representing a year-over-year change of +13.2%. EPS of $5.38 for the same period compares with $4.92 a year ago.

For the current quarter, Chubb is expected to post earnings of $4.86 per share, indicating a change of -1.8% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.9% over the last 30 days.

Chubb has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.