Company profile

Claudia J. Merkle
Incorporated in
Fiscal year end
Industry (SEC)
IRS number

NMIH stock data



7 May 20
9 Jul 20
31 Dec 20


Company financial data Financial data

Quarter (USD) Mar 20 Dec 19 Sep 19 Jun 19
Revenue 107.65M 104.9M 101.59M 91.18M
Net income 58.27M 50.2M 49.76M 39.1M
Diluted EPS 0.74 0.71 0.69 0.56
Net profit margin 54.13% 47.85% 48.99% 42.88%
Net change in cash 68.73M -4.8M 10.15M -4.03M
Cash on hand 109.82M 41.09M 45.89M 35.74M
Annual (USD) Dec 19 Dec 18 Dec 17 Dec 16
Revenue 378.77M 275.03M 182.74M 123.82M
Net income 171.96M 107.93M 22.05M 64M
Diluted EPS 2.47 1.6 0.35 1.05
Net profit margin 45.40% 39.24% 12.07% 51.69%
Net change in cash 15.8M 6.1M -28.55M -9.57M
Cash on hand 41.09M 25.29M 19.2M 47.75M

Financial data from NMI earnings reports

Date Owner Security Transaction Code 10b5-1 $Price #Shares $Value #Remaining
14 May 20 Montgomery Michael Curry RSU Grant Aquire A No 0 9,015 0 30,150
14 May 20 Lynn S. McCreary RSU Grant Aquire A No 0 9,015 0 17,723
14 May 20 Scheid Steven RSU Grant Aquire A No 0 9,015 0 62,637
14 May 20 Michael J Embler RSU Grant Aquire A No 0 9,015 0 69,563
14 May 20 Jones James G RSU Grant Aquire A No 0 9,015 0 104,563
91.4% owned by funds/institutions
13F holders
Current Prev Q Change
Total holders 219 245 -10.6%
Opened positions 48 46 +4.3%
Closed positions 74 31 +138.7%
Increased positions 76 73 +4.1%
Reduced positions 66 92 -28.3%
13F shares
Current Prev Q Change
Total value 14.66B 52.85B -72.3%
Total shares 62.92M 62.52M +0.7%
Total puts 94.2K 100.7K -6.5%
Total calls 154.1K 6.9K +2133.3%
Total put/call ratio 0.6 14.6 -95.8%
Largest owners
Shares Value Change
BLK BlackRock 9.76M $113.3M -3.1%
Vanguard 5.74M $66.59M -1.4%
Oaktree Capital Management 4.4M $51.08M 0.0%
Primecap Management 2.85M $33.07M +24.9%
FRLG Goldman Sachs 2.62M $30.47M +380.7%
Dimensional Fund Advisors 2.58M $29.93M -3.8%
Wellington Management 2.51M $29.17M +10.7%
STT State Street 2.27M $26.3M +5.4%
Boston Partners 1.9M $21.98M +52.0%
Renaissance Technologies 1.31M $15.23M -9.6%
Largest transactions
Shares Bought/sold Change
FRLG Goldman Sachs 2.62M +2.08M +380.7%
Norges Bank 0 -1.28M EXIT
Loomis Sayles & Co L P 0 -1.01M EXIT
Ninety One UK 940.49K +940.49K NEW
MCQEF Macquarie 857.27K +852.27K +17045.3%
Capital International Investors 181.79K -725.21K -80.0%
Assenagon Asset Management 792.5K +701.85K +774.2%
Boston Partners 1.9M +650.52K +52.0%
Primecap Management 2.85M +568.5K +24.9%
Westfield Capital Management 0 -562.14K EXIT

Financial report summary

  • We face intense competition for business in our industry, and if we are unable to compete effectively, we may not be able to achieve our business goals, which would adversely affect our business, financial condition and operating results.
  • Our NIW volumes could be adversely affected if lenders and investors select alternatives to private MI.
  • If we are unable to continue to attract and retain the most significant mortgage originators as customers, our ability to achieve our business goals could be negatively impacted.
  • If the volume of high-LTV loan originations declines, our NIW volume could decline, which would reduce our revenues.
  • Our underwriting and credit risk management policies and practices may not anticipate all risks and/or the magnitude of potential for loss as the result of unforeseen risks.
  • Unexpected material increases in borrower defaults could cause our actual losses to materially exceed our expected loss rates, including in certain geographic regions in which our business may be concentrated and more susceptible to downturns.
  • The premiums we charge may be insufficient to cover claim payments and our operating costs.
  • Changes in factors that impact the length of time that our policies remain in force may adversely affect our future revenues and claims experience.
  • We are outsourcing the underwriting of our mortgage insurance on certain loans to third-party underwriting service providers (USPs). If these USPs fail to adequately perform their underwriting services or place our coverage on loans we would deem ineligible, we could experience increased claims on loans underwritten by them and our customer relationships could be negatively impacted.
  • Our Master Policy contains restrictions on our ability to rescind coverage for certain material misrepresentations (including fraud) and underwriting defects, and if we were to fail to timely discover any such misrepresentations or underwriting defects, our rights of rescission would be significantly limited, and we could suffer increased losses as a result of paying claims on loans with unacceptable risk characteristics.
  • The mix of business we write affects our revenue stream and the likelihood of losses occurring.
  • We expect our claims to increase as our insured loan portfolio grows and matures.
  • If servicers fail to adhere to appropriate servicing standards or experience disruptions to their businesses, our claims could unexpectedly increase.
  • We establish claims reserves when we are notified that an insured loan is in default for at least 60 days, based on management's estimate of claim rates and claim sizes, which are subject to uncertainties and are based on assumptions about certain estimation parameters that may be volatile. As a result, the actual claim payments we make may materially exceed the amount of our corresponding claims reserves.
  • The occurrence of natural or man-made disasters or a pandemic could adversely affect our business, financial condition and operating results.
  • We are exposed to certain risks associated with our third-party reinsurance transactions, including the possibility that our reinsurers will fail to perform their obligations or that we will lose the capital credit we expected to receive when we entered into the transactions as a result of future GSE or Wisconsin OCI action or if any of our reinsurers experiences a downgrade or other adverse business event.
  • Our operating results depend in large part on our ability to manage the risks related to the growth of our business and on maintaining and enhancing effective operating procedures and internal controls.
  • We are exposed to operational risk from fraud, malfeasance or error by employees and third-party service providers, and any such fraud, malfeasance or error could materially and adversely affect us.
  • If we do not maintain connectivity with or otherwise meet the technological demands of our customers or are unable to develop, enhance and maintain our proprietary technology platform, our business and financial performance could be adversely affected.
  • We may not be able to prevent the unauthorized disclosure or misuse of confidential, personal or proprietary information.
  • Adverse investment performance may affect our financial results and ability to conduct business.
  • We face risks associated with offering loan review services.
  • There can be no assurance that the GSEs will continue to treat us as an approved insurer in the future, and our failure to maintain compliance with the GSEs' PMIERs could adversely impact our business, financial condition and operating results.
  • Changes in the business practices of the GSEs, including a decision to decrease or discontinue the use of private MI, federal legislation that changes their charters or a restructuring of the GSEs could reduce our revenues or increase our losses.
  • We are subject to comprehensive state insurance regulations and capital adequacy requirements, which we must satisfy to continue to operate our MI business.
  • The private MI industry is, and as a participant we are, subject to litigation and regulatory enforcement risk generally.
  • The implementation of Basel III may adversely affect the use of MI by certain banks.
  • Our business prospects and operating results could be adversely impacted if, and to the extent that, the Consumer Financial Protection Bureau's ATR Rules defining a QM further reduce the size of the origination market.
  • Uncertainty relating to the potential discontinuation of LIBOR after 2021 may adversely affect our business, results of operations and financial condition.
  • Our holding company structure and certain regulatory and other constraints could affect our ability to satisfy our obligations and potentially require us to raise more capital.
  • Our 2018 Credit Agreement contains various covenants, restrictions and required financial ratios and tests that limit our operating flexibility. The violation of one or more of these covenants, ratios or tests could have a material adverse effect on our business, financial condition and operating results.
  • Our existing, and any future, variable rate indebtedness subjects us to interest rate risk, which could cause our annual debt service obligations to increase significantly.
  • Despite our substantial level of debt, we may incur more debt, which could exacerbate any or all of the risks described above.
  • Our current credit ratings may adversely affect our ability to access capital and the cost of such capital, which could have a material adverse effect on our business, financial condition and operating results.
  • We do not anticipate paying any dividends on our common stock in the near future, and payment of any declared dividends may be delayed.
  • The market price of our common stock may be volatile, which could cause the value of an investment in our common stock to decline.
  • The market price of our common stock could decline due to the large number of outstanding shares of our common stock eligible for future sale, and future issuances of our common stock may depress our share price and dilute the book value of our common stock.
  • Future issuance of debt or preferred stock, which would rank senior to our Class A common stock upon our liquidation, may adversely affect the market value of our common stock.
  • Provisions contained in our organizational documents, as well as provisions of Delaware law and Wisconsin insurance law, could delay or prevent a change of control of us, which could adversely affect the price of shares of our common stock.
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