NMI Holdings, Inc. Reports Record First Quarter 2025 Financial Results

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].