NMI (US:NMIH)2025-11-04 22:36Financial Performance - Net premiums earned for the three months ended September 30, 2025, were $151,323 thousand, a 5.9% increase from $143,343 thousand in the same period of 2024[21]. - Net income for the three months ended September 30, 2025, was $95,999 thousand, a 3.3% increase from $92,810 thousand in the same period of 2024[21]. - Earnings per share (EPS) for the three months ended September 30, 2025, were $1.24, up from $1.17 in 2024, reflecting a growth of 6.0%[21]. - Total revenues for the nine months ended September 30, 2025, reached $525,704 thousand, up 8.5% from $484,467 thousand in 2024[21]. - Net income for the nine months ended September 30, 2025, was $294.709 million, compared to $273.939 million for the same period in 2024, reflecting an increase of approximately 7.4%[28]. - Adjusted net income for Q3 2025 was $95,745,000, a 3% increase compared to $92,818,000 in Q3 2024[213]. - Basic earnings per share increased by 6% to $1.24 in Q3 2025 from $1.17 in Q3 2024[197]. - Adjusted diluted EPS for Q3 2025 was $1.21, a 5% increase from $1.15 in Q3 2024[213]. Asset and Liability Management - Total assets increased to $3,727,193 thousand as of September 30, 2025, up from $3,349,973 thousand at December 31, 2024, representing a growth of approximately 11.3%[18]. - Total liabilities increased to $1,212,322 thousand as of September 30, 2025, compared to $1,132,541 thousand at December 31, 2024, an increase of approximately 7.0%[18]. - Shareholders' equity rose to $2,514,871 thousand as of September 30, 2025, compared to $2,217,432 thousand at December 31, 2024, indicating a growth of 13.4%[18]. - The company reported a comprehensive income of $115,102 thousand for the three months ended September 30, 2025, compared to $162,190 thousand in the same period of 2024[21]. Investment Performance - Net investment income rose to $26,773 thousand for the three months ended September 30, 2025, compared to $22,474 thousand in 2024, marking an increase of 19.5%[21]. - The company’s investment income for the nine months ended September 30, 2025, was $76.43 million, an increase of 20.5% from $63.42 million in the same period of 2024[46]. - The investment portfolio had gross unrealized losses of $158.6 million as of December 31, 2024, indicating a decrease in unrealized losses by 39.7% year-over-year[41]. - The amortized cost of total bonds as of September 30, 2025, was $2,960.24 million, with a fair value of $2,897.50 million, indicating a fair value decline of approximately 2.1%[36]. Reinsurance and Risk Management - The company has entered into eight quota share reinsurance treaties to manage risk and support business growth[66]. - Each third-party reinsurance provider involved in the quota share transactions has a financial strength rating of A- or better[69]. - NMIC's reinsurance counterparties are required to maintain an insurer financial strength rating of A- or better, ensuring robust financial backing for the reinsurance agreements[83]. - NMIC ceded aggregate premiums to the Oaktown Re Vehicles of $3.0 million and $9.6 million during the three and nine months ended September 30, 2025, respectively, compared to $4.3 million and $16.1 million during the same periods in 2024[90]. Claims and Default Management - The default rate in NMIC's primary insured portfolio was 1.05% as of September 30, 2025, with 7,093 loans in default out of 677,010 total policies in-force[101]. - The total amount paid for claims during the nine months ended September 30, 2025, was $16.1 million, compared to $5.7 million in 2024, indicating a significant increase of 182%[182]. - Total claims and claim expenses incurred for the three months ended September 30, 2025, were $18.6 million, up from $10.3 million in 2024, representing an increase of 80%[174]. - The beginning balance of gross reserves for insurance claims was $163.0 million as of September 30, 2025, compared to $125.4 million for the same period in 2024, reflecting a 30% increase[174]. Market Conditions and Future Outlook - Macroeconomic factors such as persistent inflation and elevated interest rates could negatively impact future new insurance written (NIW) volume and increase default and claim experiences[134]. - The company anticipates that macroeconomic factors such as housing prices and unemployment rates will significantly influence future claims experience[171]. - The company expects to continue evaluating reinsurance opportunities to manage risk and support business growth[141].