NMI (US:NMIH)2025-11-04 21:07Financial Performance - Net income for Q3 2025 was $96.0 million, or $1.22 per diluted share, compared to $96.2 million, or $1.21 per diluted share in Q2 2025, and $92.8 million, or $1.15 per diluted share in Q3 2024[2]. - Total revenue for Q3 2025 was $178.7 million, compared to $173.8 million in Q2 2025 and $166.1 million in Q3 2024[3]. - Adjusted net income for Q3 2025 was $95.7 million, down 1% from $96.5 million in Q2 2025 but up 3% from $92.8 million in Q3 2024[4]. - Net income for Q3 2025 was $95,999,000, representing a 3.3% increase from $92,810,000 in Q3 2024[20]. - Diluted earnings per share (EPS) for Q3 2025 was $1.22, compared to $1.15 in Q3 2024, reflecting a 6.1% increase[20]. - Total revenues for the nine months ended September 30, 2025, reached $525,704,000, up 8.5% from $484,467,000 in the same period of 2024[20]. Insurance Metrics - Primary insurance-in-force at the end of Q3 2025 was $218.4 billion, up 2% from $214.7 billion in Q2 2025 and 5% from $207.5 billion in Q3 2024[4]. - Net premiums earned were $151.3 million in Q3 2025, a 2% increase from $149.1 million in Q2 2025 and a 6% increase from $143.3 million in Q3 2024[4]. - New insurance written (NIW) for Q3 2025 was $13,012,000, an increase from $12,464,000 in Q2 2025[29]. - The total primary Insurance in Force (IIF) as of September 30, 2025, reached $218,376 million, compared to $214,653 million as of June 30, 2025[41]. - The primary Risk in Force (RIF) as of September 30, 2025, was $58,538 million, an increase from $57,496 million in the previous quarter[41]. Claims and Expenses - Insurance claims and claim expenses rose to $18.6 million in Q3 2025, an increase of 38% from $13.4 million in Q2 2025 and 80% from $10.3 million in Q3 2024[4]. - The loss ratio for Q3 2025 was 12.3%, compared to 9.0% in Q2 2025 and 7.2% in Q3 2024[4]. - The beginning reserve balance for insurance claims and claim expenses was $163,033,000 for Q3 2025, compared to $125,443,000 for Q3 2024, reflecting a 30% increase year-over-year[49]. - Total claims paid for the nine months ended September 30, 2025, amounted to $16,101,000, compared to $5,714,000 in 2024, representing a 182% increase[54]. - The average amount paid per claim for Q3 2025 was $58, compared to $40 in Q3 2024, representing a 45% increase[54]. Asset and Liability Overview - Total assets as of September 30, 2025, were $3,727,193,000, an increase from $3,349,973,000 as of December 31, 2024[22]. - Total liabilities increased to $1,212,322,000 as of September 30, 2025, compared to $1,132,541,000 at the end of 2024[22]. - Available assets as of September 30, 2025, were $3,369,950,000, an increase from $3,006,892,000 in 2024, reflecting a 12% growth[56]. - Net risk-based required assets increased to $2,003,410,000 as of September 30, 2025, from $1,735,790,000 in 2024, indicating a 15% rise[56]. Performance Ratios - The combined ratio for Q3 2025 was 31.5%, up from 27.5% in Q3 2024, indicating a decline in underwriting performance[20][21]. - Annualized return on equity for Q3 2025 was 15.6%, compared to 16.2% in Q2 2025 and 17.5% in Q3 2024[4]. - The loss ratio for Q3 2025 was 12.3%, significantly higher than 7.2% in Q3 2024, indicating increased claims relative to premiums earned[20][21]. Loan and Default Metrics - The default rate for loans increased to 1.05% in Q3 2025 from 1.00% in Q2 2025[29]. - The number of loans in default at the end of Q3 2025 was 7,093, up from 5,712 in Q3 2024, marking a 24% increase[54]. - The average loan size increased to $323,000 in Q3 2025 from $321,000 in Q2 2025[29]. - The cumulative default rate for the book year 2025 was reported at 0.1% as of September 30, 2025[47].