NMI : Reconciliation of non-GAAP to GAAP Measures 4Q 2021
February 16, 2022 at 01:34 am EST
Share
NMI Holdings, Inc.
Non-GAAP reconciliation
Second
Second
Fourth Quarter
First Quarter
Quarter
Third Quarter
Fourth Quarter
First Quarter
Quarter
Third Quarter
Fourth Quarter
($ in thousands, except per share values)
12/31/2019
3/31/2020
6/30/2020
9/30/2020
12/31/2020
3/31/2021
6/30/2021
9/30/2021
12/31/2021
As Reported:
Revenues
Net premiums earned
$
95,517
$
98,717
$
98,944
$
98,802
$
100,709
$
105,879
$
110,888
$
113,594
$
113,933
Net Investment Income
7,962
8,104
7,070
8,337
8,386
8,814
9,382
9,831
10,045
Net realized investment gains (losses)
264
(72)
711
(4)
295
-
12
3
714
Other revenues
1,154
900
1,223
648
513
501
483
613
380
Total revenues
$
104,897
$
107,649
$
107,948
$
107,783
$
109,903
$
115,194
$
120,765
$
124,041
$
125,072
Expenses
Insurance claims and claims expenses
$
4,269
$
5,697
$
34,334
$
15,667
$
3,549
$
4,962
$
4,640
$
3,204
$
(500)
Underwriting and operating expenses
31,296
32,277
30,370
33,969
34,994
34,065
34,725
34,669
38,843
Service expenses
937
734
1,090
557
459
591
481
787
650
Interest expense
2,974
2,744
5,941
7,796
7,906
7,915
7,922
7,930
8,029
(Gain) loss from change in fair value of warrant liability
2,632
(5,959)
1,236
$
437
1,379
205
(658)
-
(112)
Total expenses
$
42,108
$
35,493
$
72,971
$
58,426
$
48,287
$
47,738
$
47,110
$
46,590
$
46,910
Income before income taxes
$
62,789
$
72,156
$
34,977
$
49,357
$
61,616
$
67,456
$
73,655
$
77,451
$
78,162
Income tax expense
12,594
13,885
8,129
11,178
13,348
14,565
16,133
17,258
17,639
Net income
$
50,195
$
58,271
$
26,848
$
38,179
$
48,268
$
52,891
$
57,522
$
60,193
$
60,523
Adjustments:
(Gain) loss from change in fair value of warrant liability
$
2,632
$
(5,959)
$
1,236
$
437
$
1,379
$
205
$
(658)
$
-
$
(112)
Capital markets transaction costs
-
474
2,790
2,254
1,719
378
1,615
481
1,505
Net realized investment (gains) losses
(264)
72
(711)
4
(295)
-
(12)
(3)
(714)
Other Infrequent, unusual or non-operating items
-
-
-
-
-
-
-
1,289
2,540
Adjusted Income before income taxes
$
65,157
$
66,743
$
38,292
$
52,052
$
64,419
$
68,039
$
74,600
$
79,218
$
81,381
Income tax expense (benefit) on adjustments
$
(55)
$
115
$
437
$
474
$
299
$
79
$
337
$
139
$
251
Adjusted Net income
$
52,618
$
52,743
$
29,726
$
40,400
$
50,772
$
53,395
$
58,130
$
61,821
$
63,491
Weighted average diluted shares outstanding
70,276
70,401
74,174
85,599
86,250
86,487
86,819
86,880
87,117
Dilutive effect of non-vested shares and warrants
-
-
-
-
-
-
-
Weighted average diluted shares outstanding - Adjusted
70,276
70,401
74,174
85,599
86,250
86,487
86,819
86,880
87,117
Diluted EPS - Reported
$
0.71
$
0.74
$
0.36
$
0.45
$
0.56
$
0.61
$
0.65
$
0.69
$
0.69
Diluted EPS - Adjusted
$
0.75
$
0.75
$
0.40
$
0.47
$
0.59
$
0.62
$
0.67
$
0.71
$
0.73
Shareholders' equity
$
930,420
$
974,890
$
1,257,037
$
1,307,556
$
1,369,591
$
1,380,308
$
1,459,905
$
1,516,226
$
1,565,786
Return on equity - Reported
22.3%
24.5%
9.6%
11.9%
14.4%
15.4%
16.2%
16.2%
15.7%
Return on equity - Adjusted
23.3%
22.1%
10.7%
12.6%
15.2%
15.5%
16.4%
16.6%
16.5%
Expense ratio - Reported
32.8%
32.7%
30.7%
34.4%
34.7%
32.2%
31.3%
30.5%
34.1%
Expense ratio - Adjusted
32.8%
32.2%
30.5%
32.1%
33.0%
31.8%
29.9%
29.0%
30.5%
Loss ratio - Reported and Adjusted
4.5%
5.8%
34.7%
15.9%
3.5%
4.7%
4.2%
2.8%
(0.4%)
Combined ratio - Reported
37.2%
38.5%
65.4%
50.2%
38.3%
36.9%
35.5%
33.3%
33.7%
Combined ratio - Adjusted
37.2%
38.0%
65.2%
48.0%
36.6%
36.5%
34.0%
31.8%
30.1%
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Disclaimer
NMI Holdings Inc. published this content on 16 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 February 2022 06:33:04 UTC.
NMI Holdings, Inc. provides mortgage insurance (MI) through its wholly owned insurance subsidiaries, National Mortgage Insurance Corporation (NMIC) and National Mortgage Reinsurance Inc One (Re One). NMIC is its primary insurance subsidiary and is licensed to write MI coverage in all 50 states and District of Columbia (D.C.). Its subsidiary, NMI Services, Inc. (NMIS), provides outsourced loan review services to mortgage loan originators. It offers two principal types of MI coverage, primary and pool. Primary MI provides default protection on individual mortgage loans at specified coverage percentages. All its primary insurance is written on first-lien mortgage loans, with nearly all secured by owner-occupied single-family homes (defined as one-to-four family homes and condominiums). Pool insurance is generally used to provide additional credit enhancement for certain secondary market mortgage transactions. It offers outsourced loan review services to mortgage originators through NMIS.