NMI Holdings, Inc. reported third‑quarter 2025 results that included net income of $96.0 million and GAAP earnings per share of $1.22, a slight decline from the $96.2 million and $1.22 EPS reported in the second quarter but a 3.4 % year‑over‑year increase from the $92.8 million and $1.15 EPS of Q3 2024. The company’s revenue of $178.7 million beat the consensus estimate of $177.4 million, reflecting a 7.6 % year‑over‑year rise driven by higher premiums in the primary mortgage‑insurance segment.
Revenue growth was supported by a 5.2 % increase in primary insurance‑in‑force to $218.4 billion, which lifted underwriting income. The company also reported a 4.0 % sequential rise in revenue from $173.8 million in Q2 to $178.7 million in Q3, driven by a 6.5 % increase in new business premiums and a 3.2 % rise in renewal premiums. The loss ratio climbed to 12.3 % in Q3 from 9.0 % in Q2, largely due to higher claim expenses associated with a modest uptick in mortgage‑default rates.
Despite the higher loss ratio, the expense ratio improved to 19.3 % from 19.8 % in Q2, indicating tighter cost control. Operating income increased to $35.4 million, up 2.1 % from the prior quarter, as the company leveraged its scale to absorb higher claim costs while maintaining disciplined underwriting standards. Book value per share rose to $32.62, a 4 % increase from Q2 and 16 % year‑over‑year, underscoring the firm’s solid capital position.
CEO Adam Pollitzer emphasized that the company’s “high‑quality insured portfolio” and “robust risk‑transfer solutions” continue to support underwriting performance. CFO Aurora Swithenbank noted that the company expects the core yield to remain stable and that the in‑force book growth will sustain future earnings. Management reiterated its guidance for full‑year 2025 revenue of $4.396 billion–$4.400 billion, up from the prior guidance of $4.14 billion–$4.15 billion, and full‑year adjusted operating income of $2.151 billion–$2.155 billion, reflecting confidence in continued growth and margin stability.
Analysts noted that the revenue beat was offset by the adjusted EPS meeting consensus, which tempered enthusiasm. The rise in the loss ratio and claim expenses raised concerns about potential pressure on future profitability, while the improved expense ratio and book value growth reinforced the company’s resilience. The mixed market reaction reflected investors’ focus on the balance between revenue growth and underwriting headwinds.
Overall, NMI Holdings’ Q3 2025 results demonstrate steady profitability growth, a strengthening capital base, and a resilient underwriting portfolio, but the increasing loss ratio signals that the company must continue to manage claim costs to preserve margin expansion in the coming quarters.
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