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About National MI
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; adoption of new or changes to existing laws and regulations or their enforcement and implementation by regulators, including changes to the GSEs' role in the secondary mortgage market or other changes that could affect the residential mortgage industry generally or mortgage insurance in particular and potential future lawsuits, investigations or inquiries or resolution
of current inquiries, including a
Investor Contact
Vice President, Investor Relations and Treasury
(510) 788-8417
john.swenson@nationalmi.com
Press Contact
Strategic Vantage Mortgage Public Relations
(203) 513-2721
MaryMcGarity@StrategicVantage.com
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | |||||||||||||||
For the three months ended |
For the six months ended | ||||||||||||||
2015 |
2014 |
2015 |
2014 | ||||||||||||
Revenues |
(In Thousands) | ||||||||||||||
Net premiums written |
$ |
20,347 |
$ |
5,051 |
33,268 |
10,229 |
|||||||||
Increase in unearned premiums |
(11,491) |
(2,958) |
(17,476) |
(6,232) |
|||||||||||
Net premiums earned |
8,856 |
2,093 |
15,792 |
3,997 |
|||||||||||
Net investment income |
1,688 |
1,468 |
3,283 |
2,957 |
|||||||||||
Net realized investment gains |
354 |
— |
967 |
— |
|||||||||||
Total revenues |
10,898 |
3,561 |
20,042 |
6,954 |
|||||||||||
Expenses |
|||||||||||||||
Insurance claims and claims expenses |
(6) |
28 |
98 |
28 |
|||||||||||
Underwriting and operating expenses |
20,910 |
18,637 |
39,259 |
37,938 |
|||||||||||
Total expenses |
20,904 |
18,665 |
39,357 |
37,966 |
|||||||||||
Other (loss) income |
|||||||||||||||
(Loss) gain from change in fair value of warrant liability |
(106) |
952 |
1,142 |
1,769 |
|||||||||||
Gain from settlement of warrants |
— |
— |
— |
37 |
|||||||||||
Loss before income taxes |
(10,112) |
(14,152) |
(18,173) |
(29,206) |
|||||||||||
Income tax expense (benefit) |
241 |
(1,297) |
— |
(1,297) |
|||||||||||
Net loss |
$ |
(10,353) |
$ |
(12,855) |
$ |
(18,173) |
$ |
(27,909) |
|||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) | |||||||
|
| ||||||
(In Thousands) | |||||||
Total investment portfolio |
$ |
370,042 |
$ |
336,501 |
|||
Cash and cash equivalents |
64,301 |
103,021 |
|||||
Deferred policy acquisition costs, net |
8,218 |
2,985 |
|||||
Software and equipment, net |
13,284 |
11,806 |
|||||
Other assets |
10,244 |
8,952 |
|||||
Total assets |
$ |
466,089 |
$ |
463,265 |
|||
Reserve for insurance claims and claims expenses |
$ |
181 |
$ |
83 |
|||
Accounts payable and accrued expenses |
12,309 |
10,646 |
|||||
Unearned premiums |
39,545 |
22,069 |
|||||
Warrant liability |
2,230 |
3,372 |
|||||
Deferred tax liability |
137 |
137 |
|||||
Total liabilities |
54,402 |
36,307 |
|||||
Total shareholders' equity |
411,687 |
426,958 |
|||||
Total liabilities and shareholders' equity |
$ |
466,089 |
$ |
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 | ||||||||||||||||||
|
|
|
|
| |||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||
New insurance written |
$ |
2,548,515 |
$ |
1,696,142 |
$ |
1,692,187 |
$ |
974,910 |
$ |
429,944 |
|||||||||
Insurance in force (1) |
$ |
7,190,414 |
$ |
4,835,248 |
$ |
3,369,664 |
$ |
1,812,956 |
$ |
939,753 |
|||||||||
Risk in force (1) |
$ |
1,715,442 |
$ |
1,145,602 |
$ |
801,561 |
$ |
435,722 |
$ |
220,949 |
|||||||||
Policies in force (1) |
31,682 |
21,225 |
14,603 |
7,628 |
3,865 |
||||||||||||||
Weighted average coverage (2) |
23.9 |
% |
23.7 |
% |
23.8 |
% |
24.0 |
% |
23.5 |
% | |||||||||
Loans in default (count) |
9 |
6 |
4 |
— |
1 |
||||||||||||||
Risk in force on defaulted loans |
$ |
528 |
$ |
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 | ||||||||||||||
|
| ||||||||||||||
IIF |
NIW |
IIF |
NIW | ||||||||||||
(In Thousands) | |||||||||||||||
Monthly |
$ |
3,616,951 |
$ |
1,460,166 |
$ |
2,258,776 |
$ |
918,697 |
|||||||
Single |
1,155,482 |
485,252 |
680,880 |
235,517 |
|||||||||||
Aggregated single |
2,417,981 |
603,097 |
1,895,592 |
541,928 |
|||||||||||
Total primary |
$ |
7,190,414 |
$ |
2,548,515 |
$ |
4,835,248 |
$ |
1,696,142 |
|||||||
Pool |
4,475,653 |
— |
4,621,346 |
— |
|||||||||||
Total |
$ |
11,666,067 |
$ |
2,548,515 |
$ |
9,456,594 |
$ |
1,696,142 |
Primary and pool premiums written and earned |
For the quarter ended | ||||||
|
| ||||||
(In Thousands) | |||||||
Net premiums written |
$ |
20,347 |
$ |
12,921 |
|||
Net premiums earned |
8,856 |
6,936 |
The tables below show the primary weighted average FICO and the weighted average loan-to-value ratio (LTV), by policy type, for the quarter in which the policy was originated. | ||||||||
Weighted Average FICO |
||||||||
|
|
| ||||||
Monthly |
742 |
740 |
747 |
|||||
Single |
756 |
749 |
746 |
|||||
Aggregated single |
763 |
774 |
758 |
|||||
Weighted Average LTV |
||||||||
|
|
| ||||||
Monthly |
92 |
% |
91 |
% |
93 |
% | ||
Single |
91 |
91 |
93 |
|||||
Aggregated single |
89 |
88 |
90 |
The table below reflects a summary of the change in total primary IIF for the three and six months ended | |||||||||||
Primary IIF |
For the three months ended |
For the six months ended | |||||||||
2015 |
2014 |
2015 |
2014 | ||||||||
(In Thousands) |
(In Thousands) | ||||||||||
IIF, beginning of period |
4,835,248 |
514,796 |
3,369,664 |
161,731 |
|||||||
NIW |
2,548,515 |
429,944 |
4,244,657 |
784,257 |
|||||||
Cancellations and other reductions |
(193,349) |
(4,987) |
(423,907) |
(6,235) |
|||||||
IIF, end of period |
7,190,414 |
939,753 |
7,190,414 |
939,753 |
The table below reflects a summary of our primary IIF and RIF by book year. | |||||
Primary IIF and RIF |
As of | ||||
IIF |
RIF | ||||
(In Thousands) | |||||
2015, through |
4,191,649 |
997,998 |
|||
2014 |
2,915,538 |
698,016 |
|||
2013 |
83,227 |
19,428 |
|||
Total |
7,190,414 |
1,715,442 |
The table below reflects our total primary IIF and RIF by FICO. | |||||||||||
As of | |||||||||||
Primary IIF and RIF |
IIF |
RIF | |||||||||
(Dollars in Thousands) | |||||||||||
> = 740 |
$ |
4,476,199 |
62.3 |
% |
$ |
1,048,651 |
61.1 |
% | |||
680 - 739 |
2,409,995 |
33.5 |
593,075 |
34.6 |
|||||||
620 - 679 |
304,220 |
4.2 |
73,716 |
4.3 |
|||||||
< = 619 |
— |
— |
— |
— |
|||||||
Total |
$ |
7,190,414 |
100.0 |
% |
$ |
1,715,442 |
100.0 |
% |
The tables below reflect our average primary loan size by FICO and the percentage of our RIF by loan type. | |||||||
|
| ||||||
Average primary loan size by FICO |
(In Thousands) | ||||||
> = 740 |
$ |
233 |
$ |
236 |
|||
680 - 739 |
219 |
225 |
|||||
620 - 679 |
203 |
205 |
|||||
< = 619 |
— |
— |
|||||
Percentage of RIF by loan type |
Primary |
Pool | |||||
As of |
|||||||
Fixed |
97.1 |
% |
100.0 |
% | |||
Adjustable rate mortgages: |
|||||||
Less than five years |
— |
— |
|||||
Five years and longer |
2.9 |
— |
|||||
Total |
100.0 |
% |
100.0 |
% |
The following table reflects our RIF by LTV. | |||||||||||||||||||
Total RIF by LTV |
Primary |
Pool | |||||||||||||||||
RIF |
% of Total LTV |
Policy Count |
RIF |
% of Total LTV |
Policy Count | ||||||||||||||
As of |
(Dollars in Thousands) | ||||||||||||||||||
95.01% and above |
$ |
35,966 |
2.1 |
% |
680 |
$ |
— |
— |
% |
— |
|||||||||
90.01% to 95.00% |
926,987 |
54.0 |
14,681 |
— |
— |
— |
|||||||||||||
85.01% to 90.00% |
597,954 |
34.9 |
10,417 |
— |
— |
— |
|||||||||||||
80.01% to 85.00% |
154,521 |
9.0 |
5,903 |
— |
— |
— |
|||||||||||||
80.00% and below |
14 |
— |
1 |
93,090 |
100.0 |
19,784 |
|||||||||||||
Total RIF |
$ |
1,715,442 |
100.0 |
% |
31,682 |
$ |
93,090 |
100.0 |
% |
19,784 |
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 |
||||||
1. |
|
14.1 |
% |
13.6 |
% | |
2. |
|
7.0 |
7.4 |
|||
3. |
|
5.2 |
5.3 |
|||
4. |
|
4.7 |
4.8 |
|||
5. |
|
4.2 |
4.2 |
|||
6. |
|
3.7 |
3.9 |
|||
7. |
|
3.7 |
3.3 |
|||
8. |
|
3.6 |
3.6 |
|||
9. |
|
3.6 |
3.7 |
|||
10. |
|
3.5 |
3.5 |
|||
Total |
53.3 |
% |
53.3 |
% | ||
Top 10 pool IIF and RIF by state |
IIF |
RIF | ||||
As of |
||||||
1. |
|
28.3 |
% |
27.7 |
% | |
2. |
|
5.3 |
5.4 |
|||
3. |
|
3.9 |
3.8 |
|||
4. |
|
3.9 |
3.8 |
|||
5. |
|
3.7 |
3.7 |
|||
6. |
|
3.7 |
3.7 |
|||
7. |
|
3.7 |
3.7 |
|||
8. |
|
2.8 |
2.9 |
|||
9. |
|
2.8 |
2.8 |
|||
10. |
|
2.7 |
2.8 |
|||
Total |
60.8 |
% |
60.3 |
% |
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/nmi-holdings-inc-reports-second-quarter-2015-financial-results-new-insurance-written-grows-50-sequentially-300123439.html
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