NMI Holdings, Inc. (NMIH) reported significant financial performance improvements for the three and nine months ended September 30, 2024, compared to the same periods in 2023. Total revenues for Q3 2024 reached $166.1 million, up from $148.2 million in Q3 2023, while revenues for the nine-month period increased to $484.5 million from $427.6 million. This growth was primarily driven by a rise in net premiums earned, which rose to $143.3 million for Q3 2024, compared to $130.1 million in Q3 2023, and $421.2 million for the nine months ended September 30, 2024, versus $377.8 million in the prior year.
Net income for Q3 2024 was $92.8 million, an increase from $84.0 million in Q3 2023, while net income for the nine months ended September 30, 2024, was $273.9 million, compared to $238.7 million in the same period last year. Basic earnings per share rose to $1.17 for Q3 2024 from $1.02 in Q3 2023, and for the nine months, it increased to $3.42 from $2.88.
The company’s total assets increased to $3.3 billion as of September 30, 2024, up from $2.9 billion at the end of 2023. Cash and cash equivalents also saw a rise, reaching $133.3 million compared to $96.7 million at the end of 2023. The increase in total assets was attributed to positive cash flow from operations and the issuance of $425 million in senior unsecured notes in May 2024, which were primarily used to repay existing debt.
NMIH's underwriting and operating expenses increased to $29.2 million for Q3 2024, up from $27.7 million in Q3 2023, largely due to higher employee compensation costs. Interest expenses decreased slightly to $7.1 million for Q3 2024 from $8.1 million in the same quarter of 2023, reflecting lower rates on refinanced notes.
The company also reported a rise in claims and claim expenses, totaling $10.3 million for Q3 2024, compared to $4.8 million in Q3 2023, driven by new defaulted loans and increased reserves for aged loans. As of September 30, 2024, NMIH held gross reserves for insurance claims and claim expenses of $135.5 million, up from $124.0 million at the end of 2023.
NMIH continues to navigate a challenging macroeconomic environment characterized by high inflation and interest rates, which may impact the housing market and mortgage insurance industry. The company remains focused on disciplined risk selection and maintaining strong customer relationships to support its growth strategy.
About NMI Holdings, Inc.
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