NMI Holdings Reports Record Profit in 3Q

NMI Holdings Inc. reported record net income of $6.2 million for the third quarter, as its insurance-in-force grew 19% during the period.

This compares with net income of $2 million in the second quarter — the first time the Emeryville, Calif.-based parent of National MI ever reported a profit — and a net loss of $4.8 million in the third quarter of 2015.

New insurance written in the third quarter was $5.86 billion, which compares with $5.84 billion in the second quarter and $3.63 billion one year prior.

Higher return monthly premium business made up 71% of the company's NIW in the quarter, said NMI Chairman and CEO Bradley Shuster.

As of Sept. 30, the company had primary insurance-in-force of $28.2 billion, up 19% from $23.6 billion at the end of the second quarter and up 166% over $10.6 billion as of Sept. 30, 2015.

Premiums earned for the third quarter were $31.8 million, up 22% from $26 million in the prior quarter and up 148% over $12.8 million in the same quarter a year ago.

However, underwriting and operating expenses increased to $24 million from $19.7 million for the third quarter of 2015.