Q1 2025 NMI Holdings Inc Earnings Call Transcript
Key Points
- NMI Holdings Inc (NMIH) delivered record financial results in the first quarter with total revenue reaching $173.2 million.
- The company achieved a record GAAP net income of $102.6 million, or $1.28 per diluted share, with an 18.1% return on equity.
- NMI Holdings Inc (NMIH) generated $9.2 billion of new insurance written (NIW) volume, ending the quarter with a record $211.3 billion of high-quality primary insurance in force.
- The company extended its long-term IT engagement with Tata Consultancy Services on favorable terms, ensuring continued innovation and efficiency.
- NMI Holdings Inc (NMIH) maintained a strong balance sheet with $2.9 billion in total cash and investments, and $1.4 billion in excess available assets under PMIERs.
- The 12-month persistency rate slightly decreased to 84.3% from 84.6% in the previous quarter.
- The default rate remained unchanged at 1%, with 6,859 defaults reported at the end of the quarter.
- Claims expense in the first quarter was $4.5 million, although this was a decrease from $17.3 million in the fourth quarter.
- The company faced challenges related to the macroeconomic environment, including potential impacts from tariffs and other economic policies.
- Despite strong performance, there is a concern about the normalization of credit performance in newer vintages compared to pre-pandemic vintages.
Good day and welcome to the NMI Holdings Inc., first-quarter 2025 earnings conference call. (Operator Instructions) Please note this event is being recorded.
I would now like to turn the conference over to John Swenson of management. Please go ahead.
Thank you, operator. Good afternoon and welcome to the 2025 first quarter conference call for National MI. I'm John Swenson, Vice President of Investor Relations and Treasury.
Joining us on the call today are Brad Shuster, Executive Chairman; Adam Pollitzer, President and Chief Executive Officer; and Aurora Swithenbank, our Chief Financial Officer.
Financial results for the quarter were released after the close today. The press release may be accessed on NMI's website located at nationalmi.com under the Investors tab.
During the course of this call, we may make comments about our expectations for the future. Actual results could differ materially from those contained in these forward-looking
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