NMI (NMIH) Q1 2025 earnings summary

Executive summary

• Achieved record net income of $102.6 million ($1.28 per diluted share) for Q1 2025, up 19% sequentially and 15% year-over-year.

• Total revenue reached $173.2 million, a 4% increase from Q4 2024 and 10.9% year-over-year.

• Primary insurance-in-force grew to $211.3 billion, up 1% sequentially and 6% year-over-year.

• New insurance written (NIW) was $9.2 billion, down 2% year-over-year.

• Book value per share (excluding net unrealized gains/losses) rose to $30.85, up 4% from Q4 and 17% year-over-year.

Financial highlights

• Net premiums earned were $149.4 million, up 4% sequentially and 9% year-over-year.

• Net investment income increased 22% year-over-year to $23.7 million.

• Underwriting and operating expenses were $30.2 million, with an expense ratio of 20.2%, down from 21.7% in Q4.

• Insurance claims and claim expenses dropped to $4.5 million, with a loss ratio of 3.0%.

• Shareholders' equity reached $2.32 billion at quarter end.

Outlook and guidance

• Management expects macroeconomic factors like inflation, interest rates, and jobless claims to impact housing and MI markets.

• Persistency rates are anticipated to remain high if refinancing activity stays subdued.

• Management remains confident in disciplined risk management and continued strong performance.

• No significant change in operating expenses expected from the TCS contract renewal.