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 ...

Financial Performance - Total revenues for Q1 2025 increased to $173.246 million, up 10.9% from $156.253 million in Q1 2024[21] - Net premiums earned rose to $149.366 million, a 9.2% increase compared to $136.657 million in the same period last year[21] - Net income for Q1 2025 was $102.559 million, representing a 15.2% increase from $89.050 million in Q1 2024[21] - Earnings per share (EPS) for Q1 2025 were $1.31 (basic) and $1.28 (diluted), compared to $1.10 (basic) and $1.08 (diluted) in Q1 2024[21] Assets and Equity - Total assets as of March 31, 2025, were $3.456 billion, an increase from $3.350 billion as of December 31, 2024[18] - Shareholders' equity increased to $2.322 billion as of March 31, 2025, up from $2.217 billion at the end of 2024[18] - Cash and cash equivalents at the end of Q1 2025 were $74.209 million, compared to $54.308 million at the end of Q4 2024[25] Investment Performance - Net investment income for the three months ended March 31, 2025, was $23.686 million, an increase from $19.436 million in the same period of 2024[40] - The company reported gross realized investment gains of $24, with no realized losses for the three months ended March 31, 2025[41] - The investment portfolio's gross unrealized losses decreased from $158.6 million as of December 31, 2024, to $129.0 million as of March 31, 2025[36] Reinsurance and Risk Management - The company has nine quota share reinsurance treaties in place to manage risk and support business growth[60] - NMIC ceded premiums earned related to 20% of the risk on eligible policies written in 2023, with the transaction scheduled to terminate on December 31, 2033[67] - The profit commission for NMIC under the QSR Transactions is contingent on maintaining loss ratios below specified thresholds, with the 2021 QSR Transaction having a threshold of 61%[73] Claims and Losses - The company held gross reserves for insurance claims and claim expenses of $151.8 million as of March 31, 2025, compared to $127.2 million as of March 31, 2024, indicating a year-over-year increase of approximately 19.4%[98] - During the three months ended March 31, 2025, the company paid 95 claims totaling $5.2 million, including $1.1 million of ceded claims and claim expenses under the QSR Transactions[96] - The total claims incurred for the 2025 book year were $9,221 million, with a remaining insurance in force of $9,152 million[183] Market Conditions and Future Outlook - Macroeconomic factors such as inflation and elevated interest rates may negatively impact future new insurance written (NIW) volume[133] - The persistency rate, which measures the percentage of insurance in force after twelve months, significantly impacts net premiums earned and profitability[139] - The company expects to continue evaluating reinsurance opportunities to manage risk and support business growth[140]

Financial Data and Key Metrics Changes - In Q1 2025, the company reported total revenue of $173.2 million, a record high, representing a 4% increase from Q4 2024 and a 10.9% increase from Q1 2024 [11][12] - GAAP net income reached a record $102.6 million, or $1.28 per diluted share, up 19% from $86.2 million in Q4 2024 and 15% from $89 million in Q1 2024 [14][15] - Return on equity was 18.1% for the quarter [11] Business Line Data and Key Metrics Changes - The company generated $9.2 billion of new insurance written (NIW) in Q1 2025, maintaining a record primary insurance in force of $211.3 billion, which is up 1% from Q4 2024 and 6% from Q1 2024 [5][11] - Net premiums earned were a record $149.4 million, compared to $143.5 million in Q4 2024 and $136.7 million in Q1 2024 [12] 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 [11] Company Strategy and Development Direction - The company emphasized its commitment to providing low-cost, high-value solutions to enhance homeownership accessibility while maintaining a robust balance sheet and strong customer franchise [8][17] - The management highlighted the importance of a disciplined approach to risk management and pricing, ensuring resilience through various market cycles [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the macroeconomic environment, noting that current performance contrasts with broader economic themes [8] - The company is well-positioned to continue serving customers and driving growth in its insured portfolio, with a focus on employee investment and shareholder value [9][17] Other Important Information - The company extended its long-term IT engagement with Tata Consultancy Services, which is expected to maintain operational costs at current levels [10][27] Q&A Session Summary Question: Inquiry about credit performance and vintage stability - Management confirmed that they apply consistent underwriting rigor across all vintages, noting that newer vintages show higher incurred loss ratios compared to pre-pandemic vintages, primarily due to differences in borrower equity levels [20][21] Question: Impact of TCS renewal on operating expenses - Management indicated that the renewal would not significantly change operational costs, maintaining a similar expense flow as in Q1 2025 [26][27] Question: Changes in pricing or credit loss expectations due to tariffs - Management stated that while they continuously refine pricing strategies to account for macro risks, there has not been a wholesale change in their market engagement approach [30][31] Question: Provision for new notices in Q1 - The company reported a reserve of $13.5 million for new notices, consistent with the previous quarter [32][33] Question: Concerns about adverse selection related to PMI extinguishment - Management reassured that there is no significant adverse selection observed, attributing any changes in refinancing opportunities to the prevailing rate environment rather than borrower behavior [39][42]

EXHIBIT 99.1 FOR IMMEDIATE RELEASE NMI Holdings, Inc. Reports Record First Quarter 2025 Financial Results EXHIBIT 99.1 | | | | | Quarter Ended Quarter Ended Quarter Ended | | | (1) Change | | Change | (1) | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | 3/31/2025 | | 12/31/2024 | | 3/31/2024 | Q/Q | | Y/Y | | | INSURANCE METRICS ($billions) | | | | | | | | | | | | Primary Insurance-in-Force | $ | 211.3 | $ | 210.2 | $ | 199.4 | | 1 % | 6 % | | | New Insurance Written - NIW | | 9.2 ...

Core Viewpoint - NMI Holdings, Inc. reported strong financial performance for Q1 2025, with net income of $102.6 million, reflecting a year-over-year increase of 15% compared to Q1 2024 and a quarter-over-quarter increase of 19% compared to Q4 2024 [1][6]. Financial Highlights - Net income for Q1 2025 was $102.6 million, or $1.28 per diluted share, compared to $86.2 million ($1.07 per diluted share) in Q4 2024 and $89.0 million ($1.08 per diluted share) in Q1 2024 [1][4]. - Adjusted net income for the quarter was $102.5 million, maintaining the same diluted EPS of $1.28, compared to $86.1 million ($1.07 per diluted share) in Q4 2024 and $89.0 million ($1.08 per diluted share) in Q1 2024 [1][4]. - Total revenue for Q1 2025 was $173.2 million, up from $166.5 million in Q4 2024 and $156.3 million in Q1 2024 [6][27]. - Net premiums earned increased to $149.4 million in Q1 2025 from $143.5 million in Q4 2024 and $136.7 million in Q1 2024, representing a 4% quarter-over-quarter and 9% year-over-year growth [4][6]. Insurance Metrics - Primary insurance-in-force at the end of Q1 2025 was $211.3 billion, a slight increase from $210.2 billion in Q4 2024 and a 6% increase from $199.4 billion in Q1 2024 [3][6]. - New insurance written (NIW) for Q1 2025 was $9.2 billion, down 23% from $11.9 billion in Q4 2024 and down 2% from $9.4 billion in Q1 2024 [3][6]. Operational Efficiency - The loss ratio for Q1 2025 was 3.0%, significantly improved from 12.0% in Q4 2024 and slightly higher than 2.7% in Q1 2024 [4][6]. - The expense ratio decreased to 20.2% in Q1 2025 from 21.7% in Q4 2024 and 21.8% in Q1 2024, indicating improved operational efficiency [4][6]. Shareholder Value - Book value per share (excluding net unrealized gains and losses) increased to $30.85 in Q1 2025, up 4% from $29.80 in Q4 2024 and up 17% from $26.42 in Q1 2024 [4][6]. - Annualized return on equity for Q1 2025 was 18.1%, compared to 15.6% in Q4 2024 and 18.2% in Q1 2024, reflecting strong profitability [6][27].

Core Viewpoint - NMI Holdings, Inc. will report its first quarter results for the period ending March 31, 2025, on April 29, 2025, after market close [1]. Company Information - 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 and protects lenders and investors from losses due to borrower defaults [3]. Conference Call Details - The company will host a conference call and live webcast on April 29, 2025, at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time, accessible via the company's website [2]. - Participants can join the call by dialing (844) 481-2708 in the U.S. or (412) 317-0664 internationally, referencing NMI Holdings, Inc. [2].

Core Viewpoint - NMI Holdings (NMIH) has underperformed the industry and finance sector year-to-date but has outperformed the S&P 500 composite [1] Valuation - NMIH shares are trading at a price-to-book multiple of 1.31, below the industry average of 1.65, indicating an attractive valuation with a Value Score of B [4] - Other insurers like Kinsale Capital, MGIC Investment Corporation, and Radian Group are also trading at a discount to the industry average [5] Financial Performance - NMIH's return on equity (ROE) for the trailing 12 months is 17.3%, significantly higher than the industry average of 8.3%, indicating efficient use of shareholders' funds [6] - The return on invested capital for NMIH in the trailing 12 months is 13.9%, compared to the industry average of 6.4%, reflecting strong income generation efficiency [6] Market Outlook - The mortgage insurance market is expected to grow, providing business opportunities for NMIH, with a strong mortgage insurance portfolio anticipated to support future earnings [9] - The U.S. residential mortgage market is substantial, with nearly $13 trillion in mortgage debt outstanding, which is expected to benefit the mortgage insurance sector [10] - NMIH expects continued strength in the housing market, driven by demand, house price appreciation, and solid new insurance written volume [11] Risk Management - NMIH has a comprehensive reinsurance program that mitigates credit volatility and supports capital growth, enhancing its return profile [12] Shareholder Returns - NMIH has an $80 million share repurchase authorization remaining, indicating a commitment to returning wealth to shareholders [12] Analyst Projections - The average target price for NMIH is $42.50 per share, suggesting a 16.2% upside from the last closing price [13] - The Zacks Consensus Estimate for 2025 earnings is $4.59, reflecting a 2% increase year-over-year, with revenues projected at $686.4 million [14] - For 2026, earnings per share are estimated at $5.01, indicating a 9.1% year-over-year increase on revenues of $712.7 million [14] Growth Potential - NMIH's improving mortgage insurance portfolio, higher new insurance written volume, and effective capital deployment position the company for growth [15]

Core Viewpoint - NMI Holdings Inc. (NMIH) is trading at a discount compared to its industry peers, with a forward price-to-book value of 1.3X, lower than the industry average of 1.56X, indicating potential investment opportunity [1] Group 1: Financial Performance - NMIH has a market capitalization of $2.86 billion and an average trading volume of 0.4 million shares over the last three months [2] - The company has a solid track record of beating earnings estimates in three of the last four quarters, with an average beat of 7.21% [2] - NMIH shares have gained 23.7% over the past year, outperforming the Finance sector's return of 22.3% and the S&P 500's appreciation of 17.1%, although it underperformed the industry's growth of 25.7% [4] Group 2: Growth Projections - The Zacks Consensus Estimate for NMIH's 2025 earnings per share indicates a year-over-year increase of 2.2%, with revenues projected at $687.07 million, reflecting a 5.5% improvement [5] - For 2026, earnings per share and revenues are expected to increase by 9.1% and 3.9%, respectively, compared to 2024 estimates [5] - NMIH's earnings grew by 15.7% over the past five years, driven by its superior primary insurance in-force portfolio [6] Group 3: Return on Capital - NMIH's return on equity (ROE) for the trailing 12 months was 17.3%, significantly higher than the industry's 8.2%, indicating efficient use of shareholders' funds [10] Group 4: Market Opportunities - The U.S. residential mortgage market, valued at nearly $13 trillion, presents significant growth opportunities for NMIH in the mortgage insurance sector [11] - Growth in policy production is linked to increased penetration of existing customer accounts and activation of new accounts [12] Group 5: Strategic Initiatives - NMIH is focused on efficiency and expense management to drive margin expansion, engaging in share buybacks totaling $245 million, with $80 million remaining under the current program [13] - The company has a comprehensive reinsurance program to enhance its return profile and mitigate credit volatility [12] Group 6: Conclusion - NMIH is well-positioned for growth due to new primary insurance written, a strong reinsurance program, and favorable growth estimates, making it a stock to hold [14]