Q3 2025 NMI Holdings Inc Earnings Call Transcript
Key Points
- NMI Holdings Inc (NMIH) reported a record $178.7 million in total revenue for the third quarter.
- The company achieved a GAAP net income of $96 million, or $1.22 per diluted share, with a 15.6% return on equity.
- NMI Holdings Inc (NMIH) generated $13 billion of new insurance written (NIW) volume, ending the period with a record $218.4 billion of primary insurance-in-force.
- The company maintained a strong persistency rate of 83.9% in the third quarter.
- NMI Holdings Inc (NMIH) has a robust balance sheet with $3.1 billion in total cash and investments, including $148 million at the holding company level.
- The default rate increased to 1.05% at the end of the quarter, with 7,093 defaults compared to 6,709 at the end of the previous quarter.
- Claims expense rose to $18.6 million in the third quarter from $13.4 million in the second quarter, reflecting normal seasonal activity and portfolio growth.
- The company faces macroeconomic risks, including potential impacts from changes in interest rates and housing market conditions.
- There is ongoing competition in the private mortgage insurance market, with potential new entrants posing a challenge.
- The expense ratio, although at a record low of 19.3%, may increase in the fourth quarter due to typical seasonal accruals of people-related expenses.
Good afternoon, and welcome to the NMI Holdings Inc third 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, Gary. Good afternoon, and welcome to the 2025 third 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 statements. Additional
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