NMI Holdings Reports 10.9% Revenue Growth to $173.2 Million in Q1 2025

NMI Holdings, Inc. reported a strong financial performance for the first quarter of 2025, with total revenues reaching $173.2 million, a 10.9% increase from $156.3 million in the same period last year. The growth was primarily driven by a rise in net premiums earned, which increased to $149.4 million from $136.7 million, reflecting a 9.2% year-over-year growth. Net investment income also saw an increase, rising to $23.7 million from $19.4 million. The company’s net income for the quarter was $102.6 million, up from $89.1 million in the prior year, resulting in diluted earnings per share of $1.28, compared to $1.08 in the same quarter of 2024.

In terms of operational metrics, NMI Holdings reported a total of 2,101 customers as of March 31, 2025, with primary insurance in force (IIF) amounting to $211.3 billion, a 6% increase from the previous year. The company’s risk in force (RIF) stood at $56.5 billion. The persistency rate, which measures the percentage of insurance policies that remain active, was reported at 84.3%, slightly down from 85.8% a year earlier. The company also noted a default rate of 1.04%, with 6,859 loans in default out of a total of 661,490 policies in force.

Strategically, NMI Holdings has been active in managing its capital structure and risk exposure. The company repurchased 717,857 shares of its common stock during the first quarter at an average price of $36.12 per share, as part of its ongoing stock repurchase programs. The Board of Directors has authorized a new $250 million repurchase program, extending the previous program to align with the new one. Additionally, the company has maintained compliance with the Private Mortgage Insurer Eligibility Requirements (PMIERs) and reported available assets of $3.2 billion against a net risk-based required asset amount of $1.9 billion.

Looking ahead, NMI Holdings expressed cautious optimism regarding its future performance, acknowledging potential macroeconomic challenges such as inflation and rising interest rates that could impact the housing market and mortgage insurance industry. The company remains focused on expanding its customer base and maintaining a high-quality insured portfolio while managing risks effectively. The outlook for the remainder of 2025 will depend on market conditions and the company's ability to adapt to changing economic factors.