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NMI Holdings, Inc. Reports Fourth Quarter and Full Year 2013 Financial Results


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[STK] NASDAQ-NMS:NMIH

[IN] RLT RRL FIN

[SU] ERN CCA

-- WITH PHOTO -- TO BUSINESS, AND REAL ESTATE EDITORS:

NMI Holdings, Inc. Reports Fourth Quarter and Full Year 2013 Financial

Results

EMERYVILLE, Calif., March 10, 2014 /PRNewswire/ -- NMI Holdings, Inc.,

(NASDAQ: NMIH) (the "Company"), the parent company of National

Mortgage Insurance Corporation (National MI), today reported its

results for the three months and the full year ended December 31,

2013. The Company reported a net loss for the quarter ended December

31, 2013 of $13.1 million, or $0.23 per share, and a net loss of $55.2

million, or $0.99 per share, for the year ended December 31, 2013.

"Through the hard work of a very talented group of employees, we

realized significant and foundational accomplishments in 2013 and

continue towards the vision we laid out in 2011," said Bradley

Shuster, president and CEO of NMI Holdings, Inc. "We completed an

initial public offering and registered shares sold to investors in our

initial private placement (making good on our commitment to our

stockholders), gained approvals from both GSEs, developed an

industry-leading insurance management platform, integrated systems

with customers and servicers, and obtained licenses in 50 of 51

jurisdictions," he said.

In the fourth quarter of 2013, the Company had primary new insurance

written of $157.6 million compared to $3.6 million of primary new

insurance written for the quarter ended September 30, 2013. Primary

new insurance written totaled $162.2 million for the year ended

December 31, 2013. Pool new insurance written for 2013 was $5.2

billion and is related to the Fannie Mae transaction previously

disclosed in the Company's 2013 filings with the Securities and

Exchange Commission.

For the year ended December 31, 2013, the Company had primary

risk-in-force of $36.5 million compared to primary risk-in-force of

$1.2 million at September 30, 2013. Pool risk-in-force for the year

ended December 31, 2013 was $93.1 million.

For the fourth quarter of 2013, the Company had total revenues of $2.2

million, primarily comprised of $1.6 million in premiums earned and

$1.5 million of investment income offset by $0.9 million of loss from

the change in the fair value of the warrant liability. For the year

ended December 31, 2013, the Company had total revenues of $5.6

million, primarily comprised of $4.8 million of investment income and

$2.1 million in premiums earned offset by $1.5 million of loss from

the change in the fair value of the warrant liability.

Total expenses for the quarter were $15.3 million. For the year ended

December 31, 2013, the Company had total expenses of $60.7 million.

At December 31, 2013, the Company had approximately $465.0 million of

cash and investments and book equity of $463.2 million or $7.98 in

book value per share. This book value excludes any benefit

attributable to the Company's net deferred tax asset.

As of December 31, 2013, the Company's net deferred tax asset, before

valuation allowance was $35.6 million, compared to $26.6 million at

September 30, 2013.

During November 2013, the Company completed an initial public offering

of 2.4 million shares of its common stock and its common stock began

trading on the NASDAQ on November 8, 2013, under the symbol "NMIH."

Net proceeds to the Company from the offering were approximately $28

million.

"National MI is quickly establishing itself as the mortgage insurance

company that provides one of the most definitive terms of coverage in

the industry bolstered by capital strength and no legacy risk. The

customer response to our master policy and unprecedented claims

payment certainty has been extremely positive. We continue to expand

our customer footprint each quarter, and as of the end of February

2014, we had approximately 400 master policies signed with lenders,

including 12 of the top 25 sellers of GSE loans with private MI, as

defined by Inside Mortgage Finance. In addition, we had approximately

60 lenders sending the Company mortgage insurance applications and 34

customers generating NIW. The improved housing outlook in 2014 bodes

well for the private mortgage insurance industry, and I am confident

we will continue to make significant progress in 2014," Shuster said.

Conference Call and Webcast Details

NMI Holdings, Inc. will hold a conference call today, March 10, 2014

at 2:00 p.m. Pacific time / 5:00 p.m. Eastern time to allow analysts

and stockholders the opportunity to hear management discuss the

Company's quarterly and year end results. The conference call will be

broadcast live on the Company's website, in the "Investor Relations"

section at http://ir.nationalmi.com. The call may also be accessed by

dialing (888) 734-0328 inside the U.S., or (678) 894-3054 for

international callers using conference ID: 51892317, or by

referencing NMI Holdings, Inc. Investors and analysts are asked to

dial-in ten minutes before the conference call begins.

About National MI

National Mortgage Insurance Corporation (National MI), a subsidiary of

NMI Holdings, Inc. (NASDAQ: NMIH), is a U.S.-based, private mortgage

insurance company enabling low down payment borrowers to realize home

ownership while protecting lenders and investors against losses

related to a borrower's default. To learn more, please visit

www.nationalmi.com.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain statements contained in this press release may constitute

forward-looking statements within the meaning of the Private

Securities Litigation Reform Act of 1995. Any statements about our

expectations, beliefs, plans, predictions, forecasts, objectives,

assumptions or future events or performance are not historical facts

and may be forward-looking. These statements are often, but not

always, made through the use of words or phrases such as "anticipate,"

"believes," "can," "could," "may," "predicts," "potential," "should,"

"will," "estimate," "plans," "projects," "continuing," "ongoing,"

"expects," "intends" and similar words or phrases. All

forward-looking statements are only predictions and involve estimates,

known and unknown risks, assumptions and uncertainties that 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.

These risks and uncertainties include, but are not limited to, those

set forth under the heading "Risk Factors" in our most recent

Registration Statement on Form S-1, and described from time to time in

subsequent reports filed with the U.S. Securities and Exchange

Commission, including in our quarterly report on Form 10-Q filed on

December 17, 2013. Any or all of our forward-looking statements in

this press release may turn out to be inaccurate. Consequently, our

actual results could differ materially from those anticipated in such

forward-looking statements contained in this press release. Any

forward-looking statement speaks only as of the date on which it is

made and we undertake no obligation to update or revise any

forward-looking statement to reflect events or circumstances after the

date on which the statement is made or to reflect the occurrence of

unanticipated events except as required by law.

Media Contact: Mary McGarity Strategic Vantage Marketing & Public

Relations (203) 513-2721 MaryMcGarity@StrategicVantage.com

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

For the Quarter Ended December 31, For the Year Ended December 31,

2013 2012 2013 2012

(unaudited) (unaudited)

(In Thousands, except per share data)

Revenues

Premiums written

Direct $ 3,058 $ - $ 3,541 $ -

Net premiums written 3,058 - 3,541 -

Increase in unearned premium (1,446) - (1,446) -

Net premiums earned 1,612 - 2,095 -

Net investment income 1,472 5 4,808 6

Net realized investment gains 14 - 186 -

(Loss) Gain from change in fair value of warrant liability (918) 278 (1,529) 278

Total Revenues 2,180 283 5,560 284

Expenses

Insurance claims and claims expenses, net - - - -

Amortization of deferred policy acquisition costs 1 - 1 -

Other underwriting and operating expenses 15,263 13,079 60,743 27,775

Total Expenses 15,264 13,079 60,744 27,775

Net Loss $ (13,084) $ (12,796) $ (55,184) $ (27,491)

Loss per share

Basic and diluted loss per share $ (0.23) $ (0.23) $ (0.99) $ (0.73)

Weighted average common shares outstanding 57,238,730 55,500,100 56,005,326 37,909,936

CONDENSED CONSOLIDATED BALANCE SHEETS

December 31, 2013 December 31, 2012

(In Thousands)

Total investment portfolio $ 409,088 $ 4,864

Cash and cash equivalents 55,929 485,855

Restricted cash - 40,338

Software and equipment, net 8,876 7,550

Other assets 7,326 4,161

Total Assets $ 481,219 $ 542,768

Reserve for losses and loss adjustment expenses $ - $ -

Accounts payable and accrued expenses 10,052 8,707

Purchase fees and purchase consideration payable - 40,338

Warrant liability 6,371 4,842

Other liabilities 1,579 133

Total Liabilities 18,002 54,020

Total Shareholders' Equity (Deficit) 463,217 488,748

Total Liabilities and Shareholders' Equity $ 481,219 $ 542,768

New Insurance Written, Insurance in Force, and Risk in Force

As of December 31, 2013 NIW IIF RIF

Total Portfolio by FICO Score (Dollars in Thousands)

Primary

>= 740 $ 113,907 70.2 % $ 113,741 70.3 % $ 25,783 70.6 %

680 - 739 47,102 29.0 46,827 29.0 10,459 28.6

620 - 679 1,163 0.8 1,163 0.7 274 0.8

<= 619 - - - - - -

Total Primary 162,172 100.0 161,731 100.0 36,516 100.0

Pool

>= 740 4,186,844 81.0 4,127,451 81.0 75,195 80.8

680 - 739 832,755 16.1 821,852 16.1 15,146 16.2

620 - 679 152,065 2.9 149,214 2.9 2,749 3.0

<= 619 - - - - - -

Total Pool 5,171,664 100.0 5,098,517 100.0 93,090 100.0

Total

>= 740 4,300,751 80.6 4,241,192 80.6 100,978 77.9

680 - 739 879,857 16.5 868,679 16.5 25,605 19.8

620 - 679 153,228 2.9 150,377 2.9 3,023 2.3

<= 619 - - - - - -

Total Portfolio $ 5,333,836 100.0 % $ 5,260,248 100.0 % $ 129,606 100.0 %

RIF on defaulted loans $ -

Primary Pool

Percentage of RIF by Loan Type

Fixed 91.3 % 100.0 %

Adjustable rate mortgages:

Less than five years - -

Five years and longer 8.7 -

Total Primary 100.0 % 100.0 %

Primary Pool

RIF % of Total LTV Policy Count RIF % of Total LTV Policy Count

Total RIF by LTV (Dollars in Thousands)

95.01% and above $ 324 0.9 % 4 $ - - % -

90.01% to 95.00% 16,777 45.9 255 - - -

85.01% to 90.00% 15,031 41.2 241 - - -

80.01% to 85.00% 4,384 12.0 153 - - -

80.00% and below - - - 93,090 100.0 21,921

Total RIF $ 36,516 100.0 % 653 $ 93,090 100.0 % 21,921

Loan Size Coverage

Average Primary Loan Size and Coverage by FICO (Dollars in Thousands)

>= 740 $ 253 23.0 %

680 - 739 237 23.4 %

620 - 679 194 22.3 %

<= 619 - - %

December 31, 2013 September 30, 2013 June 30, 2013 March 31, 2013

Primary (Dollars in Thousands)

New insurance written $ 157,568 $ 3,560 $ 1,045 $ -

Insurance in force (end of period) $ 161,731 $ 4,604 $ 1,045 $ -

Policies in force 653 22 6 -

Weighted-average coverage (1) 22.6 % 26.0 % 24.6 % - %

Loans in default (count) - - - -

(1) End of period risk in force divided by insurance in force.

Logo - http://photos.prnewswire.com/prnh/20130731/FL56494LOGO

SOURCE NMI Holdings, Inc.

-0- 03/10/2014

/Photo: http://photos.prnewswire.com/prnh/20130731/FL56494LOGO

(NASDAQ-NMS:NMIH) /

CO: NMI Holdings, Inc.

ST: California

IN: RLT RRL FIN

SU: ERN CCA

PRN

-- FL80347 --

0000 03/10/2014 20:05:00 EDT http://www.prnewswire.com

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