NMI Holdings Q4 Earnings Beat, Primary Insurance in Force Rises Y/Y

Core Insights - NMI Holdings Inc. (NMIH) reported Q4 2025 operating net income per share of $1.20, exceeding the Zacks Consensus Estimate by 2.6% and reflecting a 12.1% year-over-year increase [1][8] - The quarterly results were driven by higher premiums earned, improved net investment income, and consistent growth in the insured portfolio, although offset by lower persistency [1] Operational Update - Total operating revenues reached $181 million, an 8.4% increase year over year, driven by a 6.3% rise in net premiums earned and a 21% increase in net investment income, surpassing the Zacks Consensus Estimate by approximately 1% [2] - Primary insurance in force grew by 5.1% year over year to $221 billion, exceeding both the company's estimate of $213.4 billion and the consensus estimate of $218 billion [2] - Annual persistency decreased to 83.4%, down 30 basis points year over year [2] Financial Performance - New insurance written amounted to $14.2 billion, reflecting a 19.1% year-over-year increase [3] - Underwriting and operating expenses remained flat at $31.1 million year over year [3] - Insurance claims and claim expenses surged by 22.5% year over year to $21.2 million, with a loss ratio of 13.9, deteriorating by 190 basis points [3] - The adjusted expense ratio improved by 100 basis points to 19.3, while the adjusted combined ratio improved by 130 basis points to 21.4 [3] Full-Year Highlights - For the full year, operating net income per share was $4.92, an 11.1% increase year over year, beating the Zacks Consensus Estimate of $4.89 [4] - Operating revenues totaled $706 million, up 8% year over year, also surpassing the Zacks Consensus Estimate of $704.7 million [4] - The combined ratio deteriorated by 290 basis points [4] Financial Update - Book value per share increased by 20.4% year over year to $33.98 as of December 31, 2025 [5] - Cash and cash equivalents decreased by 19.1% to $43.9 million from the end of 2024 [6] - The debt balance rose by 0.5% to $416.5 million from the end of 2024 [7] - The annualized adjusted return on equity was 14.7%, contracting by 90 basis points year over year [7] - Total PMIERs available assets were $3.5 billion, with net risk-based required assets totaling $2.1 billion at the end of Q4 2025 [7]