(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: August 1, 2023 | By: | /s/ William J. Leatherberry | ||||||
William J. Leatherberry | ||||||||
EVP, General Counsel |
Quarter Ended | Quarter Ended | Quarter Ended | Change (1) | Change (1) | ||||||||||||||||
6/30/2023 | 3/31/2023 | 6/30/2022 | Q/Q | Y/Y | ||||||||||||||||
INSURANCE METRICS ($billions) | ||||||||||||||||||||
Primary Insurance-in-Force | $ | 191.3 | $ | 186.7 | $ | 168.6 | 2 | % | 13 | % | ||||||||||
New Insurance Written - NIW | ||||||||||||||||||||
Monthly premium | 11.3 | 8.6 | 15.7 | 32 | % | (28) | % | |||||||||||||
Single premium | 0.2 | 0.2 | 0.9 | 15 | % | (77) | % | |||||||||||||
Total (2) | 11.5 | 8.7 | 16.6 | 31 | % | (31) | % | |||||||||||||
FINANCIAL HIGHLIGHTS (Unaudited, $millions, except per share amounts) | ||||||||||||||||||||
Net Premiums Earned | 126.0 | 121.8 | 120.9 | 3 | % | 4 | % | |||||||||||||
Insurance Claims and Claim Expenses (Benefits) | 2.9 | 6.7 | (3.0) | (57) | % | N/A | ||||||||||||||
Underwriting and Operating Expenses | 27.4 | 25.8 | 30.7 | 6 | % | (11) | % | |||||||||||||
Net Income | 80.3 | 74.5 | 75.4 | 8 | % | 6 | % | |||||||||||||
Book Value per Share (excluding net unrealized gains and losses) (3) | 23.53 | 22.56 | 19.91 | 4 | % | 18 | % | |||||||||||||
Loss Ratio | 2.3 | % | 5.5 | % | (2.5) | % | ||||||||||||||
Expense Ratio | 21.8 | % | 21.2 | % | 25.4 | % |
Consolidated statements of operations and comprehensive income (loss) (unaudited) | For the three months ended June 30, | For the six months ended June 30, | |||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(In Thousands, except for per share data) | |||||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Net premiums earned | $ | 125,985 | $ | 120,870 | $ | 247,739 | $ | 237,365 | |||||||||||||||
Net investment income | 16,518 | 10,921 | 31,412 | 21,120 | |||||||||||||||||||
Net realized investment gains (losses) | — | 53 | (33) | 461 | |||||||||||||||||||
Other revenues | 182 | 376 | 346 | 715 | |||||||||||||||||||
Total revenues | 142,685 | 132,220 | 279,464 | 259,661 | |||||||||||||||||||
Expenses | |||||||||||||||||||||||
Insurance claims and claim expenses (benefits) | 2,873 | (3,036) | 9,574 | (3,655) | |||||||||||||||||||
Underwriting and operating expenses | 27,448 | 30,700 | 53,234 | 63,635 | |||||||||||||||||||
Service expenses | 267 | 336 | 347 | 766 | |||||||||||||||||||
Interest expense | 8,048 | 8,051 | 16,087 | 16,092 | |||||||||||||||||||
Gain from change in fair value of warrant liability | — | (1,020) | — | (1,113) | |||||||||||||||||||
Total expenses | 38,636 | 35,031 | 79,242 | 75,725 | |||||||||||||||||||
Income before income taxes | 104,049 | 97,189 | 200,222 | 183,936 | |||||||||||||||||||
Income tax expense | 23,765 | 21,745 | 45,480 | 40,812 | |||||||||||||||||||
Net income | $ | 80,284 | $ | 75,444 | $ | 154,742 | $ | 143,124 | |||||||||||||||
Earnings per share | |||||||||||||||||||||||
Basic | $ | 0.97 | $ | 0.88 | $ | 1.86 | $ | 1.67 | |||||||||||||||
Diluted | $ | 0.95 | $ | 0.86 | $ | 1.83 | $ | 1.63 | |||||||||||||||
Weighted average common shares outstanding | |||||||||||||||||||||||
Basic | 82,958 | 85,734 | 83,277 | 85,842 | |||||||||||||||||||
Diluted | 84,190 | 86,577 | 84,504 | 86,943 | |||||||||||||||||||
Loss ratio (1) | 2.3% | (2.5)% | 3.9% | (1.5)% | |||||||||||||||||||
Expense ratio (2) | 21.8% | 25.4% | 21.5% | 26.8% | |||||||||||||||||||
Combined ratio (3) | 24.1% | 22.9% | 25.4% | 25.3% | |||||||||||||||||||
Net income | $ | 80,284 | $ | 75,444 | $ | 154,742 | $ | 143,124 | |||||||||||||||
Other comprehensive (loss) income, net of tax: | |||||||||||||||||||||||
Unrealized (losses) gains in accumulated other comprehensive (loss) income, net of tax (benefit) expense of $(4,120) and $(17,004) for the three months ended June 30, 2023 and 2022, and $4,513 and $(43,180) for the six months ended June 30, 2023 and 2022, respectively | (15,499) | (63,967) | 16,977 | (162,438) | |||||||||||||||||||
Reclassification adjustment for realized (gains) losses included in net income, net of tax expense (benefit) of $0 and $11 for the three months ended June 30, 2023 and 2022, and $(7) and $97 for the six months ended June 30, 2023 and 2022, respectively | — | (44) | 26 | (367) | |||||||||||||||||||
Other comprehensive (loss) income, net of tax | (15,499) | (64,011) | 17,003 | (162,805) | |||||||||||||||||||
Comprehensive income (loss) | $ | 64,785 | $ | 11,433 | $ | 171,745 | $ | (19,681) | |||||||||||||||
Consolidated balance sheets (unaudited) | June 30, 2023 | December 31, 2022 | |||||||||
Assets | (In Thousands, except for share data) | ||||||||||
Fixed maturities, available-for-sale, at fair value (amortized cost of $2,465,556 and $2,352,747 as of June 30, 2023 and December 31, 2022, respectively) | $ | 2,233,656 | $ | 2,099,389 | |||||||
Cash and cash equivalents (including restricted cash of $2,222 and $2,176 as of June 30, 2023 and December 31, 2022, respectively) | 73,319 | 44,426 | |||||||||
Premiums receivable | 72,367 | 69,680 | |||||||||
Accrued investment income | 17,393 | 14,144 | |||||||||
Deferred policy acquisition costs, net | 61,162 | 58,564 | |||||||||
Software and equipment, net | 32,262 | 31,930 | |||||||||
Intangible assets and goodwill | 3,634 | 3,634 | |||||||||
Reinsurance recoverable | 24,023 | 21,587 | |||||||||
Prepaid federal income taxes | 154,409 | 154,409 | |||||||||
Other assets | 17,625 | 18,267 | |||||||||
Total assets | $ | 2,689,850 | $ | 2,516,030 | |||||||
Liabilities | |||||||||||
Debt | $ | 396,808 | $ | 396,051 | |||||||
Unearned premiums | 105,067 | 123,035 | |||||||||
Accounts payable and accrued expenses | 72,506 | 74,576 | |||||||||
Reserve for insurance claims and claim expenses | 110,448 | 99,836 | |||||||||
Reinsurance funds withheld | 1,696 | 2,674 | |||||||||
Deferred tax liability, net | 242,144 | 193,859 | |||||||||
Other liabilities | 12,226 | 12,272 | |||||||||
Total liabilities | 940,895 | 902,303 | |||||||||
Shareholders' equity | |||||||||||
Common stock - class A shares, $0.01 par value; 86,925,030 shares issued and 82,289,763 shares outstanding as of June 30, 2023 and 86,472,742 shares issued and 83,549,879 shares outstanding as of December 31, 2022 (250,000,000 shares authorized) | 870 | 865 | |||||||||
Additional paid-in capital | 977,295 | 972,717 | |||||||||
Treasury Stock, at cost: 4,635,267 and 2,922,863 common shares as of June 30, 2023 and December 31, 2022, respectively | (97,675) | (56,575) | |||||||||
Accumulated other comprehensive loss, net of tax | (187,320) | (204,323) | |||||||||
Retained earnings | 1,055,785 | 901,043 | |||||||||
Total shareholders' equity | 1,748,955 | 1,613,727 | |||||||||
Total liabilities and shareholders' equity | $ | 2,689,850 | $ | 2,516,030 |
Non-GAAP Financial Measure Reconciliations (unaudited) | |||||||||||||||||||||||||||||
As of and for the three months ended | For the six months ended | ||||||||||||||||||||||||||||
6/30/2023 | 3/31/2023 | 6/30/2022 | 06/30/23 | 6/30/2022 | |||||||||||||||||||||||||
As Reported | (In Thousands, except for per share data) | ||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||
Net premiums earned | $ | 125,985 | $ | 121,754 | $ | 120,870 | $ | 247,739 | $ | 237,365 | |||||||||||||||||||
Net investment income | 16,518 | 14,894 | 10,921 | 31,412 | 21,120 | ||||||||||||||||||||||||
Net realized investment (losses) gains | — | (33) | 53 | (33) | 461 | ||||||||||||||||||||||||
Other revenues | 182 | 164 | 376 | 346 | 715 | ||||||||||||||||||||||||
Total revenues | 142,685 | 136,779 | 132,220 | 279,464 | 259,661 | ||||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||
Insurance claims and claim expenses (benefits) | 2,873 | 6,701 | (3,036) | 9,574 | (3,655) | ||||||||||||||||||||||||
Underwriting and operating expenses | 27,448 | 25,786 | 30,700 | 53,234 | 63,635 | ||||||||||||||||||||||||
Service expenses | 267 | 80 | 336 | 347 | 766 | ||||||||||||||||||||||||
Interest expense | 8,048 | 8,039 | 8,051 | 16,087 | 16,092 | ||||||||||||||||||||||||
Gain from change in fair value of warrant liability | — | — | (1,020) | — | (1,113) | ||||||||||||||||||||||||
Total expenses | 38,636 | 40,606 | 35,031 | 79,242 | 75,725 | ||||||||||||||||||||||||
Income before income taxes | 104,049 | 96,173 | 97,189 | 200,222 | 183,936 | ||||||||||||||||||||||||
Income tax expense | 23,765 | 21,715 | 21,745 | 45,480 | 40,812 | ||||||||||||||||||||||||
Net income | $ | 80,284 | $ | 74,458 | $ | 75,444 | $ | 154,742 | $ | 143,124 | |||||||||||||||||||
Adjustments: | |||||||||||||||||||||||||||||
Net realized investment losses (gains) | — | 33 | (53) | 33 | (461) | ||||||||||||||||||||||||
Gain from change in fair value of warrant liability | — | — | (1,020) | — | (1,113) | ||||||||||||||||||||||||
Capital markets transaction costs | — | — | (55) | — | 205 | ||||||||||||||||||||||||
Adjusted income before taxes | 104,049 | 96,206 | 96,061 | 200,255 | 182,567 | ||||||||||||||||||||||||
Income tax expense (benefit) on adjustments (1) | — | 7 | (23) | 7 | (54) | ||||||||||||||||||||||||
Adjusted net income | $ | 80,284 | $ | 74,484 | $ | 74,339 | $ | 154,768 | $ | 141,809 | |||||||||||||||||||
Weighted average diluted shares outstanding | 84,190 | 84,840 | 86,577 | 84,504 | 86,943 | ||||||||||||||||||||||||
Diluted EPS | $ | 0.95 | $ | 0.88 | $ | 0.86 | $ | 1.83 | $ | 1.63 | |||||||||||||||||||
Adjusted diluted EPS | $ | 0.95 | $ | 0.88 | $ | 0.86 | $ | 1.83 | $ | 1.63 | |||||||||||||||||||
Return-on-equity | 18.6 | % | 17.9 | % | 19.7 | % | 18.4 | % | 18.5 | % | |||||||||||||||||||
Adjusted return-on-equity | 18.6 | % | 17.9 | % | 19.4 | % | 18.4 | % | 18.4 | % | |||||||||||||||||||
Expense ratio (2) | 21.8 | % | 21.2 | % | 25.4 | % | 21.5 | % | 26.8 | % | |||||||||||||||||||
Adjusted expense ratio (3) | 21.8 | % | 21.2 | % | 25.4 | % | 21.5 | % | 26.7 | % | |||||||||||||||||||
Combined ratio (4) | 24.1 | % | 26.7 | % | 22.9 | % | 25.4 | % | 25.3 | % | |||||||||||||||||||
Adjusted combined ratio (5) | 24.1 | % | 26.7 | % | 22.9 | % | 25.4 | % | 25.2 | % | |||||||||||||||||||
Book value per share (6) | $ | 21.25 | $ | 20.49 | $ | 18.01 | |||||||||||||||||||||||
Book value per share (excluding net unrealized gains and losses) (7) | $ | 23.53 | $ | 22.56 | $ | 19.91 |
Historical Quarterly Data | 2023 | 2022 | |||||||||||||||||||||||||||||||||
June 30 | March 31 | December 31 | September 30 | June 30 | March 31 | ||||||||||||||||||||||||||||||
(In Thousands, except for per share data) | |||||||||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||||||
Net premiums earned | $ | 125,985 | $ | 121,754 | $ | 119,584 | $ | 118,317 | $ | 120,870 | $ | 116,495 | |||||||||||||||||||||||
Net investment income | 16,518 | 14,894 | 13,341 | 11,945 | 10,921 | 10,199 | |||||||||||||||||||||||||||||
Net realized investment (losses) gains | — | (33) | 6 | 14 | 53 | 408 | |||||||||||||||||||||||||||||
Other revenues | 182 | 164 | 176 | 301 | 376 | 339 | |||||||||||||||||||||||||||||
Total revenues | 142,685 | 136,779 | 133,107 | 130,577 | 132,220 | 127,441 | |||||||||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||||||||
Insurance claims and claim expenses (benefits) | 2,873 | 6,701 | 3,450 | (3,389) | (3,036) | (619) | |||||||||||||||||||||||||||||
Underwriting and operating expenses | 27,448 | 25,786 | 26,711 | 27,144 | 30,700 | 32,935 | |||||||||||||||||||||||||||||
Service expenses | 267 | 80 | 131 | 197 | 336 | 430 | |||||||||||||||||||||||||||||
Interest expense | 8,048 | 8,039 | 8,035 | 8,036 | 8,051 | 8,041 | |||||||||||||||||||||||||||||
Gain from change in fair value of warrant liability | — | — | — | — | (1,020) | (93) | |||||||||||||||||||||||||||||
Total expenses | 38,636 | 40,606 | 38,327 | 31,988 | 35,031 | 40,694 | |||||||||||||||||||||||||||||
Income before income taxes | 104,049 | 96,173 | 94,780 | 98,589 | 97,189 | 86,747 | |||||||||||||||||||||||||||||
Income tax expense | 23,765 | 21,715 | 21,840 | 21,751 | 21,745 | 19,067 | |||||||||||||||||||||||||||||
Net income | $ | 80,284 | $ | 74,458 | $ | 72,940 | $ | 76,838 | $ | 75,444 | $ | 67,680 | |||||||||||||||||||||||
Earnings per share | |||||||||||||||||||||||||||||||||||
Basic | $ | 0.97 | $ | 0.89 | $ | 0.87 | $ | 0.91 | $ | 0.88 | $ | 0.79 | |||||||||||||||||||||||
Diluted | $ | 0.95 | $ | 0.88 | $ | 0.86 | $ | 0.90 | $ | 0.86 | $ | 0.77 | |||||||||||||||||||||||
Weighted average common shares outstanding | |||||||||||||||||||||||||||||||||||
Basic | 82,958 | 83,600 | 83,592 | 84,444 | 85,734 | 85,953 | |||||||||||||||||||||||||||||
Diluted | 84,190 | 84,840 | 84,809 | 85,485 | 86,577 | 87,310 | |||||||||||||||||||||||||||||
Other data | |||||||||||||||||||||||||||||||||||
Loss ratio (1) | 2.3 | % | 5.5 | % | 2.9 | % | (2.9) | % | (2.5) | % | (0.5) | % | |||||||||||||||||||||||
Expense ratio (2) | 21.8 | % | 21.2 | % | 22.3 | % | 22.9 | % | 25.4 | % | 28.3 | % | |||||||||||||||||||||||
Combined ratio (3) | 24.1 | % | 26.7 | % | 25.2 | % | 20.1 | % | 22.9 | % | 27.7 | % |
Primary portfolio trends | As of and for the three months ended | ||||||||||||||||||||||||||||||||||
June 30, 2023 | March 31, 2023 | December 31, 2022 | September 30, 2022 | June 30, 2022 | March 31, 2022 | ||||||||||||||||||||||||||||||
($ Values In Millions, except as noted below) | |||||||||||||||||||||||||||||||||||
New insurance written (NIW) | $ | 11,478 | $ | 8,734 | $ | 10,719 | $ | 17,239 | $ | 16,611 | $ | 14,165 | |||||||||||||||||||||||
New risk written | 3,022 | 2,258 | 2,797 | 4,616 | 4,386 | 3,721 | |||||||||||||||||||||||||||||
Insurance in force (IIF) (1) | 191,306 | 186,724 | 183,968 | 179,173 | 168,639 | 158,877 | |||||||||||||||||||||||||||||
Risk in force (1) | 49,875 | 48,494 | 47,648 | 46,259 | 43,260 | 40,522 | |||||||||||||||||||||||||||||
Policies in force (count) (1) | 611,441 | 600,294 | 594,142 | 580,525 | 551,543 | 526,976 | |||||||||||||||||||||||||||||
Average loan size ($ value in thousands) (1) | $ | 313 | $ | 311 | $ | 310 | $ | 309 | $ | 306 | $ | 301 | |||||||||||||||||||||||
Coverage percentage (2) | 26.1 | % | 26.0 | % | 25.9 | % | 25.8 | % | 25.7 | % | 25.5 | % | |||||||||||||||||||||||
Loans in default (count) (1) | 4,349 | 4,475 | 4,449 | 4,096 | 4,271 | 5,238 | |||||||||||||||||||||||||||||
Default rate (1) | 0.71 | % | 0.75 | % | 0.75 | % | 0.71 | % | 0.77 | % | 0.99 | % | |||||||||||||||||||||||
Risk in force on defaulted loans (1) | $ | 335 | $ | 337 | $ | 323 | $ | 284 | $ | 295 | $ | 362 | |||||||||||||||||||||||
Net premium yield (3) | 0.27 | % | 0.26 | % | 0.26 | % | 0.27 | % | 0.30 | % | 0.30 | % | |||||||||||||||||||||||
Earnings from cancellations | $ | 1.1 | $ | 1.4 | $ | 1.5 | $ | 1.8 | $ | 2.2 | $ | 2.9 | |||||||||||||||||||||||
Annual persistency (4) | 86.0 | % | 85.1 | % | 83.5 | % | 80.1 | % | 76.0 | % | 71.5 | % | |||||||||||||||||||||||
Quarterly run-off (5) | 3.7 | % | 3.2 | % | 3.3 | % | 4.0 | % | 4.3 | % | 5.0 | % |
Primary NIW | For the three months ended | ||||||||||||||||||||||||||||||||||
June 30, 2023 | March 31, 2023 | December 31, 2022 | September 30, 2022 | June 30, 2022 | March 31, 2022 | ||||||||||||||||||||||||||||||
(In Millions) | |||||||||||||||||||||||||||||||||||
Monthly | $ | 11,266 | $ | 8,550 | $ | 10,451 | $ | 16,676 | $ | 15,695 | $ | 13,094 | |||||||||||||||||||||||
Single | 212 | 184 | 268 | 563 | 916 | 1,071 | |||||||||||||||||||||||||||||
Primary | $ | 11,478 | $ | 8,734 | $ | 10,719 | $ | 17,239 | $ | 16,611 | $ | 14,165 |
Primary and pool IIF | As of | ||||||||||||||||||||||||||||||||||
June 30, 2023 | March 31, 2023 | December 31, 2022 | September 30, 2022 | June 30, 2022 | March 31, 2022 | ||||||||||||||||||||||||||||||
(In Millions) | |||||||||||||||||||||||||||||||||||
Monthly | $ | 171,685 | $ | 166,924 | $ | 163,903 | $ | 158,897 | $ | 148,488 | $ | 139,156 | |||||||||||||||||||||||
Single | 19,621 | 19,800 | 20,065 | 20,276 | 20,151 | 19,721 | |||||||||||||||||||||||||||||
Primary | 191,306 | 186,724 | 183,968 | 179,173 | 168,639 | 158,877 | |||||||||||||||||||||||||||||
Pool | 1,000 | 1,025 | 1,049 | 1,078 | 1,114 | 1,162 | |||||||||||||||||||||||||||||
Total | $ | 192,306 | $ | 187,749 | $ | 185,017 | $ | 180,251 | $ | 169,753 | $ | 160,039 |
For the three months ended | |||||||||||||||||||||||||||||||||||
June 30, 2023 | March 31, 2023 | December 31, 2022 | September 30, 2022 | June 30, 2022 | March 31, 2022 | ||||||||||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||||||||||||
The QSR Transactions | |||||||||||||||||||||||||||||||||||
Ceded risk-in-force | $ | 12,761,294 | $ | 12,635,442 | $ | 12,617,169 | $ | 12,511,797 | $ | 9,040,944 | $ | 8,504,853 | |||||||||||||||||||||||
Ceded premiums earned | (42,002) | (42,096) | (42,246) | (42,265) | (30,231) | (29,005) | |||||||||||||||||||||||||||||
Ceded claims and claim expenses (benefits) | 803 | 1,965 | 1,934 | 248 | (403) | (159) | |||||||||||||||||||||||||||||
Ceding commission earned | 9,877 | 9,965 | 10,089 | 10,193 | 6,146 | 5,886 | |||||||||||||||||||||||||||||
Profit commission | 23,486 | 22,279 | 22,314 | 23,899 | 17,778 | 16,723 | |||||||||||||||||||||||||||||
The ILN Transactions (1) | |||||||||||||||||||||||||||||||||||
Ceded premiums | $ | (8,815) | $ | (9,095) | $ | (10,112) | $ | (10,730) | $ | (10,132) | $ | (10,939) | |||||||||||||||||||||||
The XOL Transactions | |||||||||||||||||||||||||||||||||||
Ceded Premiums | $ | (7,672) | $ | (7,237) | $ | (6,199) | $ | (4,808) | $ | (2,907) | $ | — |
Primary NIW by FICO | For the three months ended | For the six months ended | |||||||||||||||||||||||||||
June 30, 2023 | March 31, 2023 | June 30, 2022 | June 30, 2023 | June 30, 2022 | |||||||||||||||||||||||||
(In Millions) | |||||||||||||||||||||||||||||
>= 760 | $ | 6,919 | $ | 5,251 | $ | 7,990 | $ | 12,170 | $ | 14,362 | |||||||||||||||||||
740-759 | 1,836 | 1,514 | 2,900 | 3,350 | 5,288 | ||||||||||||||||||||||||
720-739 | 1,541 | 1,107 | 2,056 | 2,648 | 3,993 | ||||||||||||||||||||||||
700-719 | 668 | 456 | 1,650 | 1,124 | 3,289 | ||||||||||||||||||||||||
680-699 | 413 | 342 | 1,277 | 755 | 2,521 | ||||||||||||||||||||||||
<=679 | 101 | 64 | 738 | 165 | 1,323 | ||||||||||||||||||||||||
Total | $ | 11,478 | $ | 8,734 | $ | 16,611 | $ | 20,212 | $ | 30,776 | |||||||||||||||||||
Weighted average FICO | 763 | 762 | 751 | 762 | 750 |
Primary NIW by LTV | For the three months ended | For the six months ended | |||||||||||||||||||||||||||
June 30, 2023 | March 31, 2023 | June 30, 2022 | June 30, 2023 | June 30, 2022 | |||||||||||||||||||||||||
(In Millions) | |||||||||||||||||||||||||||||
95.01% and above | $ | 1,003 | $ | 358 | $ | 1,577 | $ | 1,361 | $ | 2,943 | |||||||||||||||||||
90.01% to 95.00% | 5,323 | 4,085 | 8,253 | 9,408 | 15,308 | ||||||||||||||||||||||||
85.01% to 90.00% | 3,891 | 3,234 | 4,772 | 7,125 | 8,640 | ||||||||||||||||||||||||
85.00% and below | 1,261 | 1,057 | 2,009 | 2,318 | 3,885 | ||||||||||||||||||||||||
Total | $ | 11,478 | $ | 8,734 | $ | 16,611 | $ | 20,212 | $ | 30,776 | |||||||||||||||||||
Weighted average LTV | 92.0 | % | 91.6 | % | 92.2 | % | 91.9 | % | 92.1 | % |
Primary NIW by purchase/refinance mix | For the three months ended | For the six months ended | |||||||||||||||||||||||||||
June 30, 2023 | March 31, 2023 | June 30, 2022 | June 30, 2023 | June 30, 2022 | |||||||||||||||||||||||||
(In Millions) | |||||||||||||||||||||||||||||
Purchase | $ | 11,233 | $ | 8,494 | $ | 16,203 | $ | 19,727 | $ | 29,601 | |||||||||||||||||||
Refinance | 245 | 240 | 408 | 485 | 1,175 | ||||||||||||||||||||||||
Total | $ | 11,478 | $ | 8,734 | $ | 16,611 | $ | 20,212 | $ | 30,776 |
Primary IIF and RIF | As of June 30, 2023 | ||||||||||
IIF | RIF | ||||||||||
(In Millions) | |||||||||||
June 30, 2023 | $ | 19,811 | $ | 5,176 | |||||||
2022 | 54,739 | 14,496 | |||||||||
2021 | 68,016 | 17,553 | |||||||||
2020 | 30,799 | 7,978 | |||||||||
2019 | 8,385 | 2,220 | |||||||||
2018 and before | 9,556 | 2,452 | |||||||||
Total | $ | 191,306 | $ | 49,875 |
Primary IIF by FICO | As of | ||||||||||||||||
June 30, 2023 | March 31, 2023 | June 30, 2022 | |||||||||||||||
(In Millions) | |||||||||||||||||
>= 760 | $ | 94,931 | $ | 91,623 | $ | 83,769 | |||||||||||
740-759 | 33,841 | 33,156 | 29,195 | ||||||||||||||
720-739 | 26,862 | 26,233 | 23,240 | ||||||||||||||
700-719 | 18,261 | 18,203 | 16,221 | ||||||||||||||
680-699 | 12,506 | 12,502 | 11,160 | ||||||||||||||
<=679 | 4,905 | 5,007 | 5,054 | ||||||||||||||
Total | $ | 191,306 | $ | 186,724 | $ | 168,639 | |||||||||||
Primary RIF by FICO | As of | ||||||||||||||||
June 30, 2023 | March 31, 2023 | June 30, 2022 | |||||||||||||||
(In Millions) | |||||||||||||||||
>= 760 | $ | 24,472 | $ | 23,472 | $ | 21,159 | |||||||||||
740-759 | 8,888 | 8,692 | 7,564 | ||||||||||||||
720-739 | 7,090 | 6,903 | 6,044 | ||||||||||||||
700-719 | 4,865 | 4,847 | 4,289 | ||||||||||||||
680-699 | 3,315 | 3,311 | 2,936 | ||||||||||||||
<=679 | 1,245 | 1,269 | 1,268 | ||||||||||||||
Total | $ | 49,875 | $ | 48,494 | $ | 43,260 | |||||||||||
Primary IIF by LTV | As of | ||||||||||||||||
June 30, 2023 | March 31, 2023 | June 30, 2022 | |||||||||||||||
(In Millions) | |||||||||||||||||
95.01% and above | $ | 18,141 | $ | 17,583 | $ | 16,068 | |||||||||||
90.01% to 95.00% | 91,719 | 89,125 | 77,804 | ||||||||||||||
85.01% to 90.00% | 58,210 | 56,425 | 51,029 | ||||||||||||||
85.00% and below | 23,236 | 23,591 | 23,738 | ||||||||||||||
Total | $ | 191,306 | $ | 186,724 | $ | 168,639 | |||||||||||
Primary RIF by LTV | As of | ||||||||||||||||
June 30, 2023 | March 31, 2023 | June 30, 2022 | |||||||||||||||
(In Millions) | |||||||||||||||||
95.01% and above | $ | 5,600 | $ | 5,413 | $ | 4,914 | |||||||||||
90.01% to 95.00% | 27,097 | 26,326 | 22,974 | ||||||||||||||
85.01% to 90.00% | 14,400 | 13,937 | 12,553 | ||||||||||||||
85.00% and below | 2,778 | 2,818 | 2,819 | ||||||||||||||
Total | $ | 49,875 | $ | 48,494 | $ | 43,260 | |||||||||||
Primary RIF by Loan Type | As of | ||||||||||||||||
June 30, 2023 | March 31, 2023 | June 30, 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 | ||||||||||||||||
June 30, 2023 | March 31, 2023 | June 30, 2022 | |||||||||||||||
(In Millions) | |||||||||||||||||
IIF, beginning of period | $ | 186,724 | $ | 183,968 | $ | 158,877 | |||||||||||
NIW | 11,478 | 8,734 | 16,611 | ||||||||||||||
Cancellations, principal repayments and other reductions | (6,896) | (5,978) | (6,849) | ||||||||||||||
IIF, end of period | $ | 191,306 | $ | 186,724 | $ | 168,639 |
Top 10 primary RIF by state | As of | ||||||||||||||||
June 30, 2023 | March 31, 2023 | June 30, 2022 | |||||||||||||||
California | 10.4 | % | 10.5 | % | 10.8 | % | |||||||||||
Texas | 8.7 | 8.8 | 9.0 | ||||||||||||||
Florida | 7.9 | 8.0 | 8.3 | ||||||||||||||
Georgia | 4.1 | 4.1 | 4.0 | ||||||||||||||
Virginia | 4.0 | 4.1 | 4.3 | ||||||||||||||
Washington | 4.0 | 4.0 | 3.9 | ||||||||||||||
Illinois | 3.9 | 3.9 | 3.9 | ||||||||||||||
Pennsylvania | 3.4 | 3.4 | 3.3 | ||||||||||||||
Colorado | 3.4 | 3.5 | 3.7 | ||||||||||||||
Maryland | 3.3 | 3.3 | 3.5 | ||||||||||||||
Total | 53.1 | % | 53.6 | % | 54.7 | % |
As of June 30, 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 | $ | 188 | 5 | % | 15,441 | 1,191 | 14 | 56 | 3.7 | % | 0.5 | % | 1.2 | % | |||||||||||||||||||||||||||||||||||||||||||
2015 | 12,422 | 1,098 | 9 | % | 52,548 | 6,170 | 104 | 131 | 2.5 | % | 0.4 | % | 1.7 | % | |||||||||||||||||||||||||||||||||||||||||||||
2016 | 21,187 | 2,263 | 11 | % | 83,626 | 11,926 | 220 | 157 | 1.8 | % | 0.5 | % | 1.8 | % | |||||||||||||||||||||||||||||||||||||||||||||
2017 | 21,582 | 2,782 | 13 | % | 85,897 | 14,989 | 403 | 129 | 2.4 | % | 0.6 | % | 2.7 | % | |||||||||||||||||||||||||||||||||||||||||||||
2018 | 27,295 | 3,225 | 12 | % | 104,043 | 16,736 | 480 | 121 | 3.6 | % | 0.6 | % | 2.9 | % | |||||||||||||||||||||||||||||||||||||||||||||
2019 | 45,141 | 8,385 | 19 | % | 148,423 | 35,522 | 546 | 44 | 3.3 | % | 0.4 | % | 1.5 | % | |||||||||||||||||||||||||||||||||||||||||||||
2020 | 62,702 | 30,799 | 49 | % | 186,174 | 101,899 | 538 | 10 | 2.1 | % | 0.3 | % | 0.5 | % | |||||||||||||||||||||||||||||||||||||||||||||
2021 | 85,574 | 68,016 | 79 | % | 257,972 | 214,464 | 1,283 | 7 | 5.3 | % | 0.5 | % | 0.6 | % | |||||||||||||||||||||||||||||||||||||||||||||
2022 | 58,734 | 54,739 | 93 | % | 163,281 | 154,826 | 753 | — | 21.8 | % | 0.5 | % | 0.5 | % | |||||||||||||||||||||||||||||||||||||||||||||
2023 | 20,212 | 19,811 | 98 | % | 54,625 | 53,718 | 8 | — | 0.2 | % | — | % | — | % | |||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 358,462 | $ | 191,306 | 1,152,030 | 611,441 | 4,349 | 655 |
For the three months ended June 30, | For the six months ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||
Beginning balance | $ | 108,157 | $ | 102,372 | $ | 99,836 | $ | 103,551 | |||||||||||||||
Less reinsurance recoverables (1) | (23,479) | (20,080) | (21,587) | (20,320) | |||||||||||||||||||
Beginning balance, net of reinsurance recoverables | 84,678 | 82,292 | 78,249 | 83,231 | |||||||||||||||||||
Add claims incurred: | |||||||||||||||||||||||
Claims and claim expenses (benefits) incurred: | |||||||||||||||||||||||
Current year (2) | 17,262 | 8,707 | 44,870 | 18,787 | |||||||||||||||||||
Prior years (3) | (14,389) | (11,743) | (35,296) | (22,442) | |||||||||||||||||||
Total claims and claim expenses (benefits) incurred | 2,873 | (3,036) | 9,574 | (3,655) | |||||||||||||||||||
Less claims paid: | |||||||||||||||||||||||
Claims and claim expenses paid: | |||||||||||||||||||||||
Current year (2) | 54 | 26 | 54 | 26 | |||||||||||||||||||
Prior years (3) | 1,072 | 356 | 1,344 | 676 | |||||||||||||||||||
Total claims and claim expenses paid | 1,126 | 382 | 1,398 | 702 | |||||||||||||||||||
Reserve at end of period, net of reinsurance recoverables | 86,425 | 78,874 | 86,425 | 78,874 | |||||||||||||||||||
Add reinsurance recoverables (1) | 24,023 | 19,588 | 24,023 | 19,588 | |||||||||||||||||||
Ending balance | $ | 110,448 | $ | 98,462 | $ | 110,448 | $ | 98,462 |
For the three months ended June 30, | For the six months ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Beginning default inventory | 4,475 | 5,238 | 4,449 | 6,227 | |||||||||||||||||||
Plus: new defaults | 1,417 | 1,069 | 2,975 | 2,232 | |||||||||||||||||||
Less: cures | (1,493) | (2,011) | (3,000) | (4,143) | |||||||||||||||||||
Less: claims paid | (46) | (24) | (67) | (43) | |||||||||||||||||||
Less: rescission and claims denied | (4) | (1) | (8) | (2) | |||||||||||||||||||
Ending default inventory | 4,349 | 4,271 | 4,349 | 4,271 |
For the three months ended June 30, | For the six months ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
($ Values In Thousands) | |||||||||||||||||||||||
Number of claims paid (1) | 46 | 24 | 67 | 43 | |||||||||||||||||||
Total amount paid for claims | $ | 1,386 | $ | 471 | $ | 1,730 | $ | 873 | |||||||||||||||
Average amount paid per claim | $ | 30 | $ | 20 | $ | 26 | $ | 20 | |||||||||||||||
Severity (2) | 62 | % | 46 | % | 56 | % | 43 | % |
As of June 30, | |||||||||||
Average reserve per default: | 2023 | 2022 | |||||||||
(In Thousands) | |||||||||||
Case (1) | $ | 23.5 | $ | 21.3 | |||||||
IBNR (1)(2) | 1.9 | 1.8 | |||||||||
Total | $ | 25.4 | $ | 23.1 |
As of | |||||||||||||||||
June 30, 2023 | March 31, 2023 | June 30, 2022 | |||||||||||||||
(In Thousands) | |||||||||||||||||
Available Assets | $ | 2,491,280 | $ | 2,480,882 | $ | 2,169,388 | |||||||||||
Risk-Based Required Assets | 1,317,961 | 1,231,780 | 1,240,143 |
Cover Page |
Aug. 01, 2023 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Document Period End Date | Aug. 01, 2023 |
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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