Emeryville, California-headquartered NMI Holdings, Inc. reported GAAP net income of $22.4 million, and adjusted net income of $22 million, for its first quarter ended March 31, 2018. Adjusted net income and adjusted net income per diluted share exclude a pre-tax non-cash gain of $0.4 million related to the change in fair value of the company’s warrant liability.
This compares with a net loss of $1.8 million and adjusted net income of $14 million, after adjusting for one-time non-cash expense related to the re-measurement of the company’s net deferred tax asset as a result of tax reform and the change in fair value of the warrant liability, in the prior quarter. In the first quarter of 2017, the company reported net income of $5.5 million and adjusted net income of $5.6 million.
"National MI delivered record first quarter financial results, including new insurance written of $6.5 billion, record net premiums earned of $54.9 million, record net income of $22.4 million, and record return-on-equity of 16.1 percent," said Bradley Shuster, Chairman, and CEO of National MI. "We continued to build our portfolio of high-quality insurance-in-force at a rate that leads our industry. We also continued to make significant strides in customer development, activating 21 new customers in the first quarter and continuing to increase our volume with existing customers.”
As of March 31, 2018, the company had primary insurance-in-force of $53.4 billion, up 10 percent from $48.5 billion at the prior quarter end and up 54 percent over $34.8 billion as of March 31, 2017.
Net premiums earned for the quarter were $54.9 million, including $2.8 million attributable to the cancellation of single premium policies, which compares with $50.1 million, including $4.2 million related to cancellations, in the prior quarter. Net premiums earned in the first quarter of 2018 were up 65 percent over net premiums earned of $33.2 million in the same quarter a year ago, which included $2.5 million related to cancellations.