Company Announcement - NMI Holdings, Inc. will report its second quarter results for the period ended June 30, 2025, after market close on July 29, 2025 [1] - A conference call and live webcast will be held at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time on the same day [2] Company Overview - NMI Holdings, Inc. is the parent company of National Mortgage Insurance Corporation, a private mortgage insurance company in the U.S. that supports low-down-payment borrowers while protecting lenders and investors from losses due to borrower defaults [3]

Core Insights - National Mortgage Insurance Corporation (National MI) has received three prestigious company culture awards, including recognition as a Great Place To Work in 2025 and a "Decade of Great" distinction for ten consecutive years [1][2] - The company ranked No. 22 among Fortune magazine's Best Workplaces in the Bay Area, achieving this position by surpassing rigorous benchmarks [2][4] - A significant 96% of employees affirmed that National MI is a Great Place To Work, which is 39 points higher than the average U.S. company [3] Company Culture and Employee Experience - National MI emphasizes the importance of employee feedback in shaping workplace culture, with a commitment to maintaining a collaborative and positive environment [5] - The company has established a new standard of excellence in the industry, driven by a talented and dedicated team [3][5] - Employees rated National MI highly in areas such as excellent service delivery, a welcoming environment for new employees, work-life balance encouragement, and celebrating innovative approaches [8] Recognition and Methodology - This marks National MI's fourth appearance on the Fortune Best Workplaces in the Bay Area List, highlighting its consistent performance in employee satisfaction [4] - The selection for the Fortune Best Workplaces in the Bay Area involved surveying 1.3 million employees across the U.S., with nearly 85,000 responses from eligible companies [9]

Core Viewpoint - NMI Holdings Inc. (NMIH) is experiencing strong investor confidence, with shares closing at $40.69, near its 52-week high, indicating potential for further price appreciation [1] Stock Performance - NMIH shares have gained 25.1% over the past year, outperforming the Finance sector's growth of 18.4% and the Zacks S&P 500 composite's growth of 9.4% [4] - The stock is trading above its 50-day and 200-day simple moving averages of $36.94 and $37.82, respectively, indicating solid upward momentum [1] Earnings Growth - NMIH's earnings have grown by 15.7% over the last five years, with a solid surprise history of beating earnings estimates in three of the last four quarters, averaging an 8.17% beat [2] - The Zacks Consensus Estimate for NMIH's 2025 earnings per share indicates a year-over-year increase of 8%, with revenues projected to reach $685.46 million, reflecting a 5.3% improvement [8] Valuation Metrics - NMIH shares are trading at a forward price-to-book value of 1.36X, lower than the industry average of 1.56X and the Finance sector's 4.11X [7] - The average target price for NMIH, based on short-term price targets from seven analysts, is $41.86 per share, suggesting a potential upside of 3.7% from the last closing price [12] Analyst Sentiment - Analysts have raised estimates for NMIH's earnings for 2025 by 5.4% and for 2026 by 1.2% over the past 60 days, indicating positive sentiment [9] Return on Capital - NMIH's return on equity (ROE) for the trailing 12 months was 17.27%, significantly higher than the industry's 7.8%, reflecting efficient utilization of shareholders' funds [14] Growth Opportunities - NMIH is well-positioned to capitalize on growth in the mortgage insurance sector, supported by a robust reinsurance strategy and increased production of both monthly and single premium policies [6][15] - The company has authorized a new $250 million share repurchase program to enhance its return profile and manage expenses effectively [17] Conclusion - NMIH is expected to benefit from favorable growth estimates, a higher return on capital, and an attractive valuation, making it a stock worth holding [19][20]

Company Overview - NMI Holdings (NMIH) shares have increased by approximately 7.6% since the last earnings report, outperforming the S&P 500 [1] - The most recent earnings report is essential to understand the catalysts affecting the stock's performance [1] Earnings Estimates - Estimates for NMI Holdings have remained unchanged over the past month, indicating a flatlining of revisions [2] VGM Scores - NMI Holdings has a Growth Score of B, a Momentum Score of F, and a Value Score of B, placing it in the top 40% for the value investment strategy [3] - The aggregate VGM Score for NMI Holdings is B, which is relevant for investors not focused on a single strategy [3] Outlook - NMI Holdings holds a Zacks Rank of 3 (Hold), suggesting an expectation of an in-line return from the stock in the upcoming months [4] Industry Performance - NMI Holdings is part of the Zacks Insurance - Property and Casualty industry, where Kinsale Capital Group, a peer, has gained 7.8% over the past month [5] - Kinsale Capital Group reported revenues of $423.4 million for the quarter ended March 2025, reflecting a year-over-year increase of 13.6% [5] - Kinsale Capital Group's EPS for the same period was $3.71, compared to $3.50 a year ago [5] - Kinsale Capital Group is projected to post earnings of $4.36 per share for the current quarter, representing a year-over-year change of 16.3% [6] - The Zacks Consensus Estimate for Kinsale Capital Group has changed by -0.1% over the last 30 days, and it also holds a Zacks Rank of 3 (Hold) [6]

Core Viewpoint - NMI Holdings Inc. (NMIH) is experiencing a short-term bullish trend, trading above its 50-day simple moving average, despite a recent decline in share price from its 52-week high [1] Valuation and Market Position - NMIH shares are trading at a price-to-book multiple of 1.25X, which is lower than the industry average of 1.52X, the Finance sector's 4.11X, and the Zacks S&P 500 Composite's 7.8X, indicating attractive valuation [4] - The company has a market capitalization of $2.90 billion, with an average trading volume of 0.6 million shares over the last three months [6] Performance Metrics - NMIH's shares have gained 10.3% over the past year, lagging behind the industry's growth of 19.8%, the Finance sector's return of 16.8%, and the S&P 500 composite's appreciation of 11.1% [7][9] - The Zacks Consensus Estimate for NMIH's 2025 earnings per share indicates a year-over-year increase of 7.1%, with revenues expected to reach $686.01 million, reflecting a 5.4% improvement [10] - The expected long-term earnings growth rate for NMIH is 6.10%, which is slightly below the industry average of 6.9% [11] Return on Capital - NMIH's return on equity (ROE) for the trailing 12 months was 17.27%, significantly higher than the industry's 7.7%, showcasing efficient use of shareholders' funds [12] Growth Opportunities - NMIH is positioned to benefit from new business opportunities in the growing mortgage insurance market, with expectations of increased production in monthly and single premium policies [13] - The company has a comprehensive reinsurance program to enhance its return profile and manage credit volatility [14] Shareholder Returns - NMIH has engaged in share buybacks, repurchasing a total of $245 million of shares, with $80 million of repurchase capacity remaining [14] - These strategies are expected to help the insurer generate solid mid-teens returns for shareholders [15] Overall Outlook - NMIH is well-positioned for growth due to new primary insurance written, a comprehensive reinsurance program, and favorable growth estimates [16] - The stock has a VGM Score of A, indicating attractive value, growth, and momentum, suggesting it is wise to hold onto this stock [18]

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores serve as complementary indicators to the Zacks Rank, aiding investors in selecting stocks with high potential for market outperformance [2] Zacks Style Scores Overview - Stocks are rated from A to F based on value, growth, and momentum characteristics, with A being the highest score [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5][6] Value Score - Focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales [3] Growth Score - Evaluates a company's financial health and future growth potential through projected earnings and sales [4] Momentum Score - Targets stocks with upward or downward price trends, utilizing recent price changes and earnings estimate shifts [5] VGM Score - Combines the three Style Scores to identify stocks with attractive value, growth forecasts, and momentum [6] Zacks Rank Integration - The Zacks Rank is based on earnings estimate revisions, with 1 (Strong Buy) stocks historically yielding an average annual return of +25.41% since 1988, outperforming the S&P 500 [8] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal success [9] NMI Holdings Analysis - NMI Holdings, headquartered in Emeryville, CA, is currently rated 3 (Hold) with a VGM Score of A and a Growth Style Score of B, indicating a projected year-over-year earnings growth of 7.1% for the current fiscal year [11] - Recent upward revisions from three analysts have increased the Zacks Consensus Estimate for fiscal 2025 by $0.22 to $4.82 per share, with an average earnings surprise of 8.2% [12]

Core Viewpoint - NMI Holdings (NMIH) reported strong first-quarter 2025 results, with operating net income per share of $1.28, exceeding estimates and showing significant year-over-year growth [1] Operational Update - Total operating revenues reached $173.3 million, a 10.9% increase year over year, driven by a 9.3% rise in net premiums earned and a 21.9% increase in net investment income [2] - Primary insurance in force grew by 6% to $211.3 billion [2] - Annual persistency decreased to 84.3%, down 150 basis points year over year [2] - New insurance written was $9.2 billion, reflecting a 2% decline year over year [2] Underwriting and Operating Expenses - Underwriting and operating expenses totaled $30.2 million, up 1% year over year [3] - Insurance claims and claim expenses increased to $4.5 million, a rise of 21.2% year over year [3] - The loss ratio expanded to 3%, an increase of 30 basis points year over year [3] - The expense ratio improved by 160 basis points year over year, while the adjusted combined ratio improved to 23.2, a 130 basis point enhancement [3] Financial Update - Book value per share increased by 16.8% year over year to $30.85 as of March 31, 2025 [4] - Cash and cash equivalents rose to $74.2 million, a 36.6% increase from the end of 2024 [4] - Debt balance slightly increased by 0.1% to $416 million from the end of 2024 [4] - Annualized adjusted return on equity was 18.1%, contracting by 10 basis points year over year [4] PMIERs Update - Total PMIERs available assets were reported at $3.2 billion [5] - Net risk-based required assets totaled $1.9 billion at the end of the first quarter of 2025 [5]

Financial Data and Key Metrics Changes - In Q1 2025, the company reported record total revenue of $173.2 million, up 4% from Q4 2024 and 10.9% from Q1 2024 [12][13] - GAAP net income reached a record $102.6 million, representing a 19% increase compared to Q4 2024 and a 15% increase compared to Q1 2024 [15] - Diluted earnings per share (EPS) was $1.28, up 20% from Q4 2024 and 18% from Q1 2024 [15] - Return on equity (ROE) was 18.1% for the quarter [12] Business Line Data and Key Metrics Changes - The company generated $9.2 billion in new insurance written (NIW) volume, maintaining a record primary insurance in force of $211.3 billion, which is a 1% increase from Q4 2024 and a 6% increase from Q1 2024 [5][12] - Net premiums earned were a record $149.4 million, compared to $143.5 million in Q4 2024 and $136.7 million in Q1 2024 [13] Market Data and Key Metrics Changes - The company's 12-month persistency rate was 84.3% in Q1 2025, slightly down from 84.6% in Q4 2024 [12] - The average loan-to-value (LTV) ratio for the defaulted population was 73.2% [25] Company Strategy and Development Direction - The company emphasized its commitment to providing low-cost, high-value solutions to make homeownership more accessible, while also ensuring the safety of the conventional mortgage market [8][10] - The management highlighted the importance of maintaining a disciplined approach to risk management and pricing, which has positioned the company well to navigate various market cycles [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's performance despite macroeconomic uncertainties, noting that the disciplined management approach will support continued growth and profitability [9][10] - The company is well-positioned to serve customers and invest in employee success, aiming for sustained growth in its high-quality insured portfolio [10][18] Other Important Information - The company extended its long-term IT engagement with Tata Consultancy Services, which is expected to maintain current operating expenses [11][27] Q&A Session Summary Question: Credit performance and vintage stability - Management indicated that recent vintages are performing well, with no significant concerns, although there is a normalization trend expected as the underlying borrower experience stabilizes [21][22] Question: Equity in defaults - The average mark-to-market equity on the defaulted population is 73.2% [25] Question: Impact of TCS renewal on OpEx - The renewal is expected to keep operating expenses stable, with no significant changes anticipated [27][28] Question: Pricing and credit loss expectations amid tariff uncertainties - Management noted that while they are monitoring macroeconomic factors, there are currently no significant changes to pricing or credit loss expectations [31] Question: Provision for new notices in Q1 - The reserve for new notices was $13.5 million, consistent with the previous quarter [32][34] Question: Buyback during the quarter - The company repurchased $25.9 million worth of common stock, retiring 718,000 shares [40]

For the quarter ended March 2025, NMI Holdings (NMIH) reported revenue of $173.25 million, up 10.9% over the same period last year. EPS came in at $1.28, compared to $1.08 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $170.29 million, representing a surprise of +1.74%. The company delivered an EPS surprise of +16.36%, with the consensus EPS estimate being $1.10.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and h ...

NMI Holdings (NMIH) came out with quarterly earnings of $1.28 per share, beating the Zacks Consensus Estimate of $1.10 per share. This compares to earnings of $1.08 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 16.36%. A quarter ago, it was expected that this mortgage insurance company would post earnings of $1.11 per share when it actually produced earnings of $1.07, delivering a surprise of -3.60%.Over the last four quarte ...