NMI Holdings Q2 Earnings & Revenues Top Estimates on Higher Premiums

Core Insights - NMI Holdings (NMIH) reported second-quarter 2025 operating net income per share of $1.22, exceeding the Zacks Consensus Estimate by 5.2%, with a year-over-year increase of 1.7% [1] - The quarterly results were driven by higher premiums from a high-quality insured portfolio and increased net investment income, despite a decline in persistency [1] Operational Update - Total operating revenues reached $173.8 million, marking a 7.2% year-over-year increase, driven by a 5.6% rise in net premiums earned and a 20.6% increase in net investment income, surpassing the Zacks Consensus Estimate by 1.9% [2] - Primary insurance in force grew by 5.5% to $214.7 billion [2] - Annual persistency decreased to 84.1%, down 140 basis points year over year [2] - New insurance written remained flat year over year at $12.5 billion [2] - Underwriting and operating expenses totaled $29.5 million, reflecting a 4% increase year over year [2] Claims and Ratios - Insurance claims and claim expenses rose to $13.5 million from $0.3 million in the prior year [3] - The loss ratio deteriorated by 600 basis points to 9% year over year [3] - The expense ratio improved by 30 basis points year over year, while the adjusted combined ratio worsened by 580 basis points to 23.2 [3] Financial Update - Book value per share increased by 16% year over year to $32.08 as of June 30, 2025 [4] - Cash and cash equivalents rose to $84 million, a 54.7% 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 contracted by 310 basis points to 16.3% year over year [4] - Total PMIERs available assets were $3.2 billion, with net risk-based required assets at $1.9 billion [4] Performance of Other Insurers - The Travelers Companies (TRV) reported second-quarter 2025 core income of $6.51 per share, exceeding the Zacks Consensus Estimate by 83.8%, with total revenues increasing by 6.7% to $12.1 billion [6] - The Progressive Corporation (PGR) reported earnings per share of $4.88, beating the Zacks Consensus Estimate by 10.1%, with net premiums written increasing by 12% year over year [10] - RLI Corp. (RLI) reported operating earnings of 84 cents per share, beating the Zacks Consensus Estimate by 12%, although the bottom line decreased by 2.3% from the prior year [12]