NMI (US:NMIH) ZACKS·2025-11-05 15:51Core Insights - NMI Holdings Inc. (NMIH) reported third-quarter 2025 operating net income per share of $1.21, matching the Zacks Consensus Estimate, with a year-over-year increase of 5.2% [1][7] - The quarterly results were driven by higher premiums earned, improved net investment income, and consistent growth in the high-quality insured portfolio, although this was offset by lower persistency [1] Operational Update - Total operating revenues for NMI Holdings reached $179 million, reflecting a 7.8% year-over-year increase, driven by a 5.5% rise in net premiums earned and a 19.1% increase in net investment income, surpassing the Zacks Consensus Estimate by 2.3% [2] - Primary insurance in force grew by 5.2% to $218.4 billion, while annual persistency decreased to 83.9%, down 160 basis points year over year [2] - New insurance written amounted to $13 billion, marking a 6.4% increase year over year [2] Underwriting and Operating Expenses - Underwriting and operating expenses totaled $29.2 million, showing a slight decrease of 0.01% year over year [3] - Insurance claims and claim expenses surged by 80.5% year over year to $18.6 million, resulting in a loss ratio of 12.3, which deteriorated by 510 basis points [3] - The adjusted expense ratio improved by 100 basis points to 19.3, while the adjusted combined ratio worsened by 400 basis points to 31.5 [3] Financial Update - Book value per share increased by 17.8% year over year to $32.62 as of September 30, 2025 [4] - Cash and cash equivalents stood at $130.4 million, more than doubling from the end of 2024, while the debt balance rose by 0.3% to $416.5 million [4] - The annualized adjusted return on equity contracted by 200 basis points to 15.5% year over year [4] PMIERs and Risk-Based Assets - Total PMIERs available assets were reported at $3.4 billion, with net risk-based required assets totaling $2 billion at the end of the third quarter of 2025 [5]