NMI Holdings, Inc. Reports Second Quarter 2025 Financial Results
EMERYVILLE, Calif., July 29, 2025 (GLOBE NEWSWIRE) -- NMI Holdings, Inc. (NASDAQ:NMIH) today reported net income of $96.2 million, or $1.21 per diluted share, for the second quarter ended June 30, 2025, compared to $102.6 million, or $1.28 per diluted share, for the first quarter ended March 31, 2025 and $92.1 million, or $1.13 per diluted share, for the second quarter ended June 30, 2024. Adjusted net income for the quarter was $96.5 million, or $1.22 per diluted share, compared to $102.5 million, or $1.28 per diluted share, for the first quarter ended March 31, 2025 and $97.6 million, or $1.20 per diluted share, for the second quarter ended June 30, 2024.
Adam Pollitzer, President and Chief Executive Officer of National MI, said, "In the second quarter, we again delivered strong operating performance, continued growth in our high-quality insured portfolio, and standout financial results. We have a strong customer franchise, a talented team driving us forward every day, an exceptionally high-quality book covered by a comprehensive set of risk transfer solutions, and a robust balance sheet supported by the significant earnings power of our platform. Looking forward, we're well positioned to continue delivering differentiated growth, returns and value for our shareholders."
Selected second quarter 2025 highlights include:
Primary insurance-in-force at quarter end was $214.7 billion, compared to $211.3 billion at the end of the first quarter and $203.5 billion at the end of the second quarter of 2024.
Net premiums earned were $149.1 million, compared to $149.4 million in the first quarter and $141.2 million in the second quarter of 2024.
Total revenue was $173.8 million, compared to $173.2 million in the first quarter and $162.1 million in the second quarter of 2024.
Insurance claims and claim expenses were $13.4 million, compared to $4.5 million in the first quarter and $0.3 million in the second quarter of 2024. Loss ratio was 9.0%, compared to 3.0% in the first quarter and 0.2% in the second quarter of 2024.
Underwriting and operating expenses were $29.5 million, compared to $30.2 million in the first quarter and $28.3 million in the second quarter of 2024. Expense ratio was 19.8%, compared to 20.2% in the first quarter and 20.1% in the second quarter of 2024.
Net income was $96.2 million, compared to $102.6 million in the first quarter and $92.1 million in the second quarter of 2024. Diluted EPS was $1.21, compared to $1.28 in the first quarter and $1.13 in the second quarter of 2024.
Adjusted net income was $96.5 million, compared to $102.5 million in the first quarter and $97.6 million in the second quarter of 2024. Adjusted diluted EPS was $1.22, compared to $1.28 in the first quarter and $1.20 in the second quarter of 2024.
Shareholders' equity was $2.4 billion at quarter end and book value per share was $31.14. Book value per share excluding the impact of net unrealized gains and losses in the investment portfolio was $32.08, up 4% compared to $30.85 in the first quarter and 16% compared to $27.54 in the second quarter of 2024.
Annualized return on equity for the quarter was 16.2%, compared to 18.1% in the first quarter and 18.3% in the second quarter of 2024. Annualized adjusted return on equity was 16.3%, compared to 18.1% in the first quarter and 19.4% in the second quarter of 2024.
At quarter-end, total PMIERs available assets were $3.2 billion and net risk-based required assets were $1.9 billion.
Quarter Ended
Quarter Ended
Quarter Ended
Change (1)
Change (1)
6/30/2025
3/31/2025
6/30/2024
Q/Q
Y/Y
INSURANCE METRICS ($billions)
Primary Insurance-in-Force
$
214.7
$
211.3
$
203.5
2 %
5 %
New Insurance Written - NIW
12.5
9.2
12.5
35 %
—
FINANCIAL HIGHLIGHTS (Unaudited, $millions, except per share amounts)
Net Premiums Earned
$
149.1
$
149.4
$
141.2
—
6 %
Net Investment Income
24.9
23.7
20.7
5 %
21 %
Insurance Claims and Claim Expenses
13.4
4.5
0.3
200 %
NM (3)
Underwriting and Operating Expenses
29.5
30.2
28.3
(2) %
4 %
Adjusted Net Income
96.5
102.5
97.6
(6) %
(1) %
Adjusted Diluted EPS
$
1.22
$
1.28
$
1.20
(5) %
1 %
Book Value per Share (excluding net unrealized gains and losses) (2)
$
32.08
$
30.85
$
27.54
4 %
16 %
Loss Ratio
9.0 %
3.0 %
0.2 %
Expense Ratio
19.8 %
20.2 %
20.1 %
(1) Percentages may not be replicated based on the rounded figures presented in the table.(2) Book value per share (excluding net unrealized gains and losses) is defined as total shareholders' equity, excluding the after-tax effects of unrealized gains and losses on our investment portfolio, divided by shares outstanding.(3) Not meaningful.
Conference Call and Webcast Details
The company will hold a conference call, which will be webcast live today, July 29, 2025, at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time. The webcast will be available on the company's website, www.nationalmi.com, in the "Investor Relations" section. The conference call can also be accessed by dialing (844) 481-2708 in the U.S., or (412) 317-0664 internationally, by referencing NMI Holdings, Inc.
About NMI Holdings, Inc.
NMI Holdings, Inc. (NASDAQ:NMIH), is the parent company of National Mortgage Insurance Corporation (National MI), 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 or any other written or oral statements made by or on behalf of the Company in connection therewith may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995 (the "PSLRA"). The PSLRA provides a "safe harbor" for any forward-looking statements. All statements other than statements of historical fact included in or incorporated by reference in this release are forward-looking statements, including any statements about our expectations, outlook, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance. These statements are often, but not always, made through the use of words or phrases such as "anticipate," "believe," "can," "could," "may," "predict," "assume," "potential," "should," "will," "estimate," "perceive," "plan," "project," "continuing," "ongoing," "expect," "intend" and similar words or phrases. All forward-looking statements are only predictions and involve estimates, known and unknown risks, assumptions and uncertainties that may turn out to be inaccurate and 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. Important factors that could cause actual events or results to differ materially from those indicated in such statements include, but are not limited to: changes in general economic, market and political conditions and policies (including changes in interest rates and inflation) and investment results or other conditions that affect the U.S. housing market or the U.S. markets for home mortgages, mortgage insurance, reinsurance and credit risk transfer markets, including the risk related to geopolitical instability, inflation, an economic downturn (including any decline in home prices) or recession, and their impacts on our business, operations and personnel; changes in the charters, business practices, policies, pricing or priorities of Fannie Mae and Freddie Mac (collectively, the GSEs), which may include decisions that have the impact of decreasing or discontinuing the use of mortgage insurance as credit enhancement generally, or with first time homebuyers or on very high loan-to-value mortgages; or changes in the direction of housing policy objectives of the Federal Housing Finance Agency ("FHFA"), such as the FHFA's priority to increase the accessibility to and affordability of homeownership for low-and-moderate income borrowers and underrepresented communities; our ability to remain an eligible mortgage insurer under the private mortgage insurer eligibility requirements ("PMIERs") and other requirements imposed by the GSEs, which they may change at any time; retention of our existing certificates of authority in each state and the District of Columbia ("D.C.") and our ability to remain a mortgage insurer in good standing in each state and D.C.; our future profitability, liquidity and capital resources; actions of existing competitors, including other private mortgage insurers and government mortgage insurers such as the Federal Housing Administration, the U.S. Department of Agriculture's Rural Housing Service and the U.S. Department of Veterans Affairs, and potential market entry by new competitors or consolidation of existing competitors; adoption of new or changes to existing laws, rules and regulations that impact our business or financial condition directly or the mortgage insurance industry generally or their enforcement and implementation by regulators, including the implementation of the final rules defining and/or concerning "Qualified Mortgage" and "Qualified Residential Mortgage"; U.S. federal tax reform and other potential changes in tax law and their impact on us and our operations; legislative or regulatory changes to the GSEs' role in the secondary mortgage market or other changes that could affect the residential mortgage industry generally or mortgage insurance industry in particular; potential legal and regulatory claims, investigations, actions, audits or inquiries that could result in adverse judgements, settlements, fines or other reliefs that could require significant expenditures or have other negative effects on our business; our ability to successfully execute and implement our capital plans, including our ability to access the equity, credit and reinsurance markets and to enter into, and receive approval of, reinsurance arrangements on terms and conditions that are acceptable to us, the GSEs and our regulators; lenders, the GSEs, or other market participants seeking alternatives to private mortgage insurance; our ability to implement our business strategy, including our ability to write mortgage insurance on high quality low down payment residential mortgage loans, implement successfully and on a timely basis, complex infrastructure, systems, procedures, and internal controls to support our business and regulatory and reporting requirements of the insurance industry; our ability to attract and retain a diverse customer base, including the largest mortgage originators; failure of risk management or pricing or investment strategies; decrease in the length of time our insurance policies are in force; emergence of unexpected claim and coverage issues, including claims exceeding our reserves or amounts we had expected to experience; potential adverse impacts arising from natural disasters including, with respect to affected areas, a decline in new business, adverse effects on home prices, and an increase in notices of default on insured mortgages; climate risk and efforts to manage or regulate climate risk by government agencies could affect our business and operations; potential adverse impacts arising from the occurrence of any man-made disasters or public health emergencies, including pandemics; the inability of our counter-parties, including third party reinsurers, to meet their obligations to us; failure to maintain, improve and continue to develop necessary information technology systems or the failure of technology providers to perform; effectiveness and security of our information technology systems and digital products and services, including the risks these systems, products or services may fail to operate as expected or planned, or expose us to cybersecurity or third-party risks (including the exposure of our confidential customer and other information); and ability to recruit, train and retain key personnel. These risks and uncertainties also include, but are not limited to, those set forth under the heading "Risk Factors" detailed in Item 1A of Part I of our Annual Report on Form 10-K for the year ended December 31, 2024, as subsequently updated through other reports we file with the SEC. All subsequent written and oral forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. We caution you not to place undue reliance on any forward-looking statement, which speaks only as of the date on which it is made, and we undertake no obligation to publicly update or revise any forward-looking statement to reflect new information, future events or circumstances that occur after the date on which the statement is made or to reflect the occurrence of unanticipated events except as required by law.
Use of Non-GAAP Financial Measures
We believe the use of the non-GAAP measures of adjusted income before tax, adjusted net income, adjusted diluted EPS, adjusted return-on-equity, adjusted expense ratio, adjusted combined ratio and book value per share (excluding net unrealized gains and losses) enhances the comparability of our fundamental financial performance between periods, and provides relevant information to investors. These non-GAAP financial measures align with the way the company's business performance is evaluated by management. These measures are not prepared in accordance with GAAP and should not be viewed as alternatives to GAAP measures of performance. These measures have been presented to increase transparency and enhance the comparability of our fundamental operating trends across periods. Other companies may calculate these measures differently; their measures may not be comparable to those we calculate and present.
Adjusted income before tax is defined as GAAP income before tax, excluding the pre-tax effects of net realized gains or losses from our investment portfolio, periodic costs incurred in connection with capital markets transactions, and other infrequent, unusual or non-operating items in the periods in which such items are incurred.
Adjusted net income is defined as GAAP net income, excluding the after-tax effects of net realized gains or losses from our investment portfolio, periodic costs incurred in connection with capital markets transactions, and other infrequent, unusual or non-operating items in the periods in which such items are incurred. Adjustments to components of pre-tax income are tax effected using the applicable federal statutory tax rate for the respective periods.
Adjusted diluted EPS is defined as adjusted net income divided by adjusted weighted average diluted shares outstanding. Adjusted weighted average diluted shares outstanding is defined as weighted average diluted shares outstanding, adjusted for changes in the dilutive effect of non-vested shares that would otherwise have occurred had GAAP net income been calculated in accordance with adjusted net income. There will be no adjustment to weighted average diluted shares outstanding in the periods that non-vested shares are anti-dilutive under GAAP.
Adjusted return on equity is calculated by dividing adjusted net income on an annualized basis by the average shareholders' equity for the period.
Adjusted expense ratio is defined as GAAP underwriting and operating expenses, excluding the pre-tax effects of periodic costs incurred in connection with capital markets transactions, divided by net premiums earned.
Adjusted combined ratio is defined as the total of GAAP underwriting and operating expenses, excluding the pre-tax effects of periodic costs incurred in connection with capital markets transactions and insurance claims and claims expenses, divided by net premiums earned.
Book value per share (excluding net unrealized gains and losses) is defined as total shareholders' equity, excluding the after-tax effects of unrealized gains and losses on investments, divided by shares outstanding.
Although adjusted income before tax, adjusted net income, adjusted diluted EPS, adjusted return-on-equity, adjusted expense ratio, adjusted combined ratio and book value per share (excluding net unrealized gains and losses) exclude certain items that have occurred in the past and are expected to occur in the future, the excluded items: (1) are not viewed as part of the operating performance of our primary activities; or (2) are impacted by market, economic or regulatory factors and are not necessarily indicative of operating trends, or both. These adjustments, and the reasons for their treatment, are described below.
(1) Net realized investment gains and losses. The recognition of net realized investment gains or losses can vary significantly across periods as the timing is highly discretionary and is influenced by factors such as market opportunities, tax and capital profile, and overall market cycles that do not reflect our current period operating results.
(2) Capital markets transaction costs. Capital markets transaction costs result from activities that are undertaken to improve our debt profile or enhance our capital position through activities such as debt refinancing and capital markets reinsurance transactions that may vary in their size and timing due to factors such as market opportunities, tax and capital profile, and overall market cycles.
(3) Other infrequent, unusual or non-operating items. Items that are the result of unforeseen or uncommon events, and are not expected to recur with frequency in the future. Identification and exclusion of these items provides clarity about the impact special or rare occurrences may have on our current financial performance. Past adjustments under this category include infrequent, unusual or non-operating adjustments related to severance, restricted stock modification and other expenses incurred in connection with the CEO transition announced in September 2021 and the effects of the release of the valuation allowance recorded against our net federal and certain state net deferred tax assets in 2016 and the re-measurement of our net deferred tax assets in connection with tax reform in 2017. We believe such items are infrequent or non-recurring in nature, and are not indicative of the performance of, or ongoing trends in, our primary operating activities or business.
(4) Net unrealized gains and losses on investments. The recognition of net unrealized gains or losses on investment can vary significantly across periods and is influenced by factors such as interest rate movement, overall market and economic conditions, and tax and capital profiles. These valuation adjustments may not necessarily result in economic gains or losses and not reflective of ongoing operations.
Investor ContactGregory EppsSenior Manager, Investor Relations and
Consolidated statements of operations and comprehensive income (unaudited)
For the three months ended June 30,
For the six months ended June 30,
2025
2024
2025
2024
(In Thousands, except for per share data)
Revenues
Net premiums earned
$
149,066
$
141,168
$
298,432
$
277,825
Net investment income
24,949
20,688
48,635
40,124
Net realized investment losses
(400
)
—
(376
)
—
Other revenues
164
266
334
426
Total revenues
173,779
162,122
347,025
318,375
Expenses
Insurance claims and claim expenses
13,445
276
17,923
3,970
Underwriting and operating expenses
29,508
28,330
59,683
58,145
Service expenses
110
194
226
331
Interest expense
7,115
14,678
14,221
22,718
Total expenses
50,178
43,478
92,053
85,164
Income before income taxes
123,601
118,644
254,972
233,211
Income tax expense
27,450
26,565
56,262
52,082
Net income
$
96,151
$
92,079
$
198,710
$
181,129
Earnings per share
Basic
$
1.23
$
1.15
$
2.54
$
2.25
Diluted
$
1.21
$
1.13
$
2.50
$
2.22
Weighted average common shares outstanding
Basic
77,987
80,117
78,197
80,421
Diluted
79,256
81,300
79,557
81,703
Loss ratio (1)
9.0
%
0.2
%
6.0
%
1.4
%
Expense ratio (2)
19.8
%
20.1
%
20.0
%
20.9
%
Combined ratio (3)
28.8
%
20.3
%
26.0
%
22.4
%
(1) Loss ratio is calculated by dividing insurance claims and claim expenses by net premiums earned.(2) Expense ratio is calculated by dividing underwriting and operating expenses by net premiums earned.(3) Combined ratio may not foot due to rounding.
Consolidated balance sheets (unaudited)
June 30, 2025
December 31, 2024
Assets
(In Thousands, except for share data)
Fixed maturities, available-for-sale, at fair value (amortized cost of $3,016,032 and $2,876,343)
$
2,929,117
$
2,723,541
Cash and cash equivalents
84,013
54,308
Premiums receivable, net
83,647
82,804
Accrued investment income
24,376
22,386
Deferred policy acquisition costs, net
64,148
64,327
Software and equipment, net
23,793
25,681
Intangible assets and goodwill
3,634
3,634
Reinsurance recoverable
32,705
32,260
Prepaid federal income taxes
322,175
322,175
Other assets
23,477
18,857
Total assets
$
3,591,085
$
3,349,973
Liabilities
Debt
$
416,073
$
415,146
Unearned premiums
54,159
65,217
Accounts payable and accrued expenses
86,904
103,164
Reserve for insurance claims and claim expenses
163,033
152,071
Deferred tax liability, net
441,389
386,192
Other liabilities
9,420
10,751
Total liabilities
1,170,978
1,132,541
Shareholders' equity
Common stock: 77,717,841 and 78,600,726 shares outstanding as of June 30, 2025 and December 31, 2024, respectively
884
879
Additional paid-in capital
1,006,058
1,004,692
Treasury Stock, at cost: 10,647,668 and 9,301,900 common shares as of June 30, 2025 and December 31, 2024, respectively
(296,047
)
(246,594
)
Accumulated other comprehensive loss, net of tax
(72,757
)
(124,804
)
Retained earnings
1,781,969
1,583,259
Total shareholders' equity
2,420,107
2,217,432
Total liabilities and shareholders' equity
$
3,591,085
