Core Insights - NMI Holdings (NMIH) is a provider of private mortgage insurance to home buyers in the US, with a focus on the dynamics of home prices and household incomes [1] Group 1: Market Conditions - Home prices were rising faster than household incomes, indicating a potential imbalance in the housing market [1] - Mortgage delinquency rates were a concern, reflecting the financial strain on homeowners [1] Group 2: Investment Philosophy - The financial markets are viewed as efficient, with most stocks reflecting their real current value [1] - The best investment opportunities are often found in stocks that are less widely followed or do not accurately reflect market opportunities [1]

Core Insights - Enact Holdings, Inc. reported strong financial results for Q3 2025, with a GAAP net income of $163 million, or $1.10 per diluted share, and an adjusted operating income of $166 million, or $1.12 per diluted share [1][4] - The company has increased its full-year capital return guidance to approximately $500 million, reflecting its strong performance and market conditions [1][7] Financial Performance - Net income decreased from $168 million in Q2 2025 and $181 million in Q3 2024 [4][3] - Adjusted operating income also saw a decline from $174 million in Q2 2025 and $182 million in Q3 2024 [4][3] - New insurance written (NIW) was $14 billion, a 6% increase from Q2 2025 and a 3% increase from Q3 2024 [4][3] - The primary insurance in-force (IIF) rose to $272 billion, a 2% year-over-year increase [1][7] Risk Management and Operational Efficiency - The company maintained a primary persistency rate of 83%, consistent with the previous quarter and year [4][3] - Losses incurred increased to $36 million with a loss ratio of 15%, compared to $25 million and 10% in Q2 2025, and $12 million and 5% in Q3 2024 [7][4] - Operating expenses remained stable at $53 million, with an expense ratio of 22% [7][4] Investment and Capital Management - Net investment income increased to $69 million, up from $66 million in Q2 2025 and $61 million in Q3 2024, driven by elevated interest rates [7][4] - The company repurchased approximately 2.8 million shares at an average price of $37.23, totaling around $105 million in the quarter [7][4] - PMIERs sufficiency was reported at 162%, approximately $1.9 billion above requirements [1][7] Future Outlook - The company is well-positioned for success in the evolving housing market, with a focus on disciplined execution and risk management [2][4] - Enact anticipates a total capital return of approximately $500 million for 2025, contingent on business performance and market conditions [7][4]

Financial Data and Key Metrics Changes - In Q3 2025, the company achieved record total revenue of $178.7 million, with GAAP net income of $96 million, translating to $1.22 per diluted share and a return on equity of 15.6% [10][12] - The company generated $13 billion of new insurance written (NIW) and ended the period with a record $218.4 billion of primary insurance in force, reflecting a 2% increase from Q2 and a 5% increase compared to Q3 2024 [10][12] - The expense ratio reached a record low of 19.3%, indicating significant operating leverage and efficient cost management [11][12] Business Line Data and Key Metrics Changes - The company reported net premiums earned of $151.3 million in Q3, up from $149.1 million in Q2 and $143.3 million in Q3 2024 [11] - Investment income for the quarter was $26.8 million, compared to $24.9 million in Q2 and $22.5 million in Q3 2024 [11] Market Data and Key Metrics Changes - The company noted a 12-month persistency rate of 83.9% in Q3, slightly down from 84.1% in Q2 [10] - The default rate at quarter end was 1.05%, with 7,093 defaults reported, an increase from 6,709 at the end of Q2 [11] Company Strategy and Development Direction - The company emphasized its commitment to providing low-cost down payment support and maintaining a high-quality insured portfolio, positioning itself to capitalize on long-term trends in the housing market [4][8] - The management highlighted the importance of maintaining a robust balance sheet and disciplined expense management to drive growth and shareholder value [7][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the macro environment and housing market, despite potential risks, and noted that the company is well-positioned for continued outperformance [6][8] - The management acknowledged the challenges of new market entrants but emphasized the strength and capacity of the existing players in the private mortgage insurance market [20][22] Other Important Information - The company repurchased $24.6 million of common stock during the quarter, retiring 628,000 shares at an average price of $39.13, with a total repurchase capacity of $256 million remaining [12][13] - Total cash and investments at quarter end were reported at $3.1 billion, with shareholders' equity at $2.5 billion and book value per share at $32.62, reflecting a 4% increase from Q2 and a 16% increase from Q3 2024 [12] Q&A Session Summary Question: Credit performance and new defaults - Management noted that new defaults increased by only 5% year-over-year, indicating a more stable credit environment, and attributed some of the increase to seasonal factors and portfolio seasoning [17][18] Question: Competitive environment and potential new entrants - Management acknowledged awareness of new market entrants but emphasized the challenges of establishing a private mortgage insurance business, suggesting that the current market is well-served by existing players [19][20][22] Question: Consumer strength and housing market observations - Management reported broad economic resilience, with low unemployment and cooling inflation, while noting potential weaknesses in certain housing markets, particularly in Florida and Texas [25][26][28] Question: Reinsurance market dynamics - Management indicated that the reinsurance market remains robust, with favorable pricing achieved, and discussed a preference for traditional reinsurance due to its forward coverage capabilities [29][31] Question: Core yield stability and persistency impacts - Management confirmed that core yield has remained stable at 34 basis points, with expectations for continued stability, while acknowledging potential impacts from refinancing activity [35][36] Question: Proactive strategies for capturing MI on refinanced loans - Management emphasized the importance of maintaining strong relationships with lenders and being present in the market to capture refinancing opportunities, rather than relying on specific strategies [42][43]

EMERYVILLE, Calif., Nov. 04, 2025 (GLOBE NEWSWIRE) -- NMI Holdings, Inc. (Nasdaq: NMIH) today reported net income of $96.0 million, or $1.22 per diluted share, for the third quarter ended September 30, 2025, compared to $96.2 million, or $1.21 per diluted share, for the second quarter ended June 30, 2025 and $92.8 million, or $1.15 per diluted share, for the third quarter ended September 30, 2024. Adam Pollitzer, President and Chief Executive Officer of National MI, said, “In the third quarter, we again del ...

Core Insights - Essent Group Ltd. (NYSE:ESNT) is recognized among the 15 Dividend Growth Stocks with the highest growth rates [1] - Keefe Bruyette raised the price target for Essent Group from $67 to $71 while maintaining a Market Perform rating [3] - The company plays a crucial role in the US housing finance system by providing private mortgage insurance and is expanding into title insurance [2] Business Strategy - Essent Group focuses on maintaining strong partnerships with leading mortgage lenders and aligning with GSE regulations [4] - The company effectively manages credit risk through reinsurance and disciplined capital allocation [4] - Its broader strategy aims to preserve credit quality, enhance capital efficiency, and deliver solid returns to shareholders [4] Dividend Performance - Essent Group has increased its dividends for five consecutive years, with an average annual growth rate of nearly 14% [5] - The current quarterly dividend is $0.31 per share, resulting in a dividend yield of 2.04% as of October 30 [5]

Core Insights - MGIC Investment Corporation has elected Martin P. Klein and Daniela A. O'Leary-Gill to its Board of Directors, enhancing its governance and strategic oversight [1][2][3] Group 1: Board Appointments - Martin P. Klein will serve on the Risk Management and Securities Investment Committees, while Daniela A. O'Leary-Gill will be part of the Audit and Business Transformation and Technology Committees [1] - Klein has extensive experience, having served as Executive Vice President and CFO at Athene Holdings and Genworth Financial, and currently holds a position at Apollo Global Management [2] - O'Leary-Gill has over 25 years of leadership experience in finance and strategy, previously serving as COO for BMO U.S. and on the Board of Discover Financial Services [3] Group 2: Company Overview - MGIC Investment Corporation, through its subsidiary MGIC, provides private mortgage insurance to facilitate affordable low-down-payment mortgages, aiding families in achieving homeownership [3]

Core Points - MGIC Investment Corporation declared a quarterly cash dividend of $0.15 per share, payable on November 20, 2025, to shareholders of record as of November 6, 2025 [1] - MGIC, the principal subsidiary of MGIC Investment Corporation, provides private mortgage insurance to lenders across the United States, facilitating affordable low-down-payment mortgages for families [1] Financial Information - The company plans to release its third quarter 2025 financial results after the market closes on a specified date [3] - Moody's Ratings upgraded MGIC Investment Corporation's senior unsecured debt rating to Baa2 from Baa3, indicating improved creditworthiness [4]

Core Points - NMI Holdings, Inc. will report its third quarter results for the period ending September 30, 2025, after market close on November 4, 2025 [1] - A conference call and live webcast will be held on the same day at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time [2] - The webcast will be accessible on the company's website, and a replay along with the earnings press release and supplemental information will also be available [2] Company Overview - NMI Holdings, Inc. is the parent company of National Mortgage Insurance Corporation, a private mortgage insurance company in the U.S. [3] - The company enables low-down-payment borrowers to achieve home ownership while providing protection to lenders and investors against losses from borrower defaults [3]

Core Points - Enact Holdings, Inc. has announced a new $435 million five-year senior unsecured revolving credit facility, effective September 30, 2025, replacing the previous $200 million facility [1][2] - The new credit facility enhances borrowing capacity and extends the maturity profile, providing greater financial flexibility and liquidity for operations [2] - Borrowings will accrue interest at a floating rate tied to a short-term borrowing index plus a margin currently set at 125 basis points [2] - The facility was arranged with a syndicate of eight banks, with JPMorgan Chase Bank, N.A. as the Administrative Agent and Joint Lead Arranger [3] Company Overview - Enact Holdings, Inc. operates primarily through its subsidiary, Enact Mortgage Insurance Corporation, and is a leading private mortgage insurance provider in the U.S. [5] - The company aims to help more individuals achieve homeownership by partnering with lenders to provide service, underwriting expertise, and risk management [5] - Enact is headquartered in Raleigh, North Carolina, and has been in operation since 1981 [5]

Core Insights - Radian Group Inc. (RDN) shares have increased by 9.3% year-to-date, outperforming the Finance sector and the Zacks S&P 500 composite, which grew by 9.1% and 8.3% respectively [1] - The company has a market capitalization of $4.69 billion and an average trading volume of 1.2 million shares over the last three months [1] Valuation - RDN shares are trading at a price-to-book value of 1.05X, significantly lower than the industry average of 2.05X, the Finance sector's 4.23X, and the Zacks S&P 500 Composite's 8.2X, indicating a favorable entry point for investors [2] - Other insurers like Assurant, Inc. (AIZ), Enact Holdings, Inc. (ACT), and CNO Financial Group, Inc. (CNO) are also trading at discounts to the industry average [2] Technical Analysis - Radian shares closed at $34.66, near its 52-week high of $36.99, indicating strong investor confidence and potential for further price appreciation [3] - The stock is trading above its 50-day and 200-day simple moving averages (SMA) of $34.35 and $33.37 respectively, suggesting solid upward momentum [3] Growth Projections - The private mortgage insurance market is expected to remain around $300 billion in 2025, with RDN focusing on core, fee-based businesses that have higher growth potential [5][16] - The Zacks Consensus Estimate for Radian Group's 2025 revenues is $1.25 billion, reflecting a year-over-year improvement of 0.2% [7] - Analysts have raised estimates for 2025 and 2026, with the consensus estimates moving up by 3.7% and 1.2% respectively in the last 30 days [9] Earnings Performance - Radian Group has a strong track record of beating earnings estimates, with an average surprise of 11.15% over the last four quarters [8] Return on Investment - Return on invested capital (ROIC) has been increasing, currently at 6.8%, which is significantly better than the industry average of 1.9%, indicating efficient fund utilization [12] Dividend Policy - Radian Group has increased its quarterly dividend by 4.1% in the first quarter of 2025, marking the sixth consecutive year of dividend increases, with a current yield of 2.8% [17] Overall Sentiment - The combination of solid growth projections, attractive valuations, optimistic analyst sentiment, and favorable ROIC positions Radian Group as a compelling investment opportunity [18]