NMI Holdings Inc (NMIH) Q4 2025 Earnings Call Highlights: Record Revenue and Strategic Growth …

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Wed, February 11, 2026 at 2:01 PM GMT+9 4 min read

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  NMIH

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**Total Revenue:** $180.7 million in Q4 2025, a record figure.

**Net Income:** $94.2 million in Q4 2025.

**Diluted EPS:** $1.20 per share in Q4 2025.

**Return on Equity:** 14.8% in Q4 2025.

**Net Premiums Earned:** $152.5 million in Q4 2025.

**Investment Income:** $27.5 million in Q4 2025.

**Underwriting and Operating Expenses:** $31.1 million in Q4 2025.

**Expense Ratio:** 20.4% in Q4 2025.

**Claims Expense:** $21.2 million in Q4 2025.

**Book Value per Share:** $33.98 at December 31, 2025.

**Primary Insurance-in-Force:** $221.4 billion at the end of Q4 2025.

**New Insurance Written (NIW):** $14.2 billion in Q4 2025.

**12-Month Persistency:** 83.4% in Q4 2025.

**Share Repurchase:** $31 million of common stock repurchased in Q4 2025.

**Excess Available Assets:** $1.4 billion under PMIERs at year-end 2025.

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Release Date: February 10, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

NMI Holdings Inc (NASDAQ:NMIH) reported record financial results for the fourth quarter of 2025, with total revenue reaching $180.7 million and GAAP net income of $94.2 million.

The company achieved a record $221.4 billion in high-quality, high-performing primary insurance-in-force, reflecting strong growth in its insured portfolio.

NMI Holdings Inc (NASDAQ:NMIH) generated $49 billion of new insurance written (NIW) volume during 2025, demonstrating significant new business production.

The company maintained a strong return on equity of 16.2% for the year, highlighting its profitability and efficient capital management.

NMI Holdings Inc (NASDAQ:NMIH) successfully secured new quota share and excess of loss reinsurance treaties, enhancing its comprehensive credit risk management framework with favorable terms.

Negative Points

The company's default rate increased slightly to 1.12% at year-end, with 7,661 defaults reported, indicating some pressure on credit performance.

Persistency decreased to 83.4% in the fourth quarter, down from 83.9% in the third quarter, suggesting a potential challenge in maintaining policy retention.

Claims expense rose to $21.2 million in the fourth quarter, up from $18.6 million in the third quarter, reflecting normal seasonal activity and portfolio growth.

The potential for a reduction in FHA premiums poses a regulatory risk that could impact the competitive landscape and pricing dynamics.

The company faces macroeconomic uncertainties, including elevated consumer debt levels and potential shifts in the housing market, which could affect future performance.

 






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Q & A Highlights

Q: Have you seen any changes in the competitive landscape in the industry? And should we expect the core premium yield to remain steady in 2026? A: Adam Pollitzer, President and CEO, noted that the industry environment remains balanced and constructive, with supportive volume pricing rates. Aurora Swithenbank, CFO, added that while they don’t provide specific guidance, they expect core yields to remain generally stable, with net yields influenced by loss experiences and ceded claims expenses.

Q: What are your thoughts on the potential reduction of premiums at the FHA and its impact? A: Adam Pollitzer expressed that while the FHA’s capital position appears healthy, the private MI industry already provides a valuable solution. He noted challenges at the FHA regarding credit, capital, and regulatory matters, suggesting that further rate cuts may not be in the best interest of taxpayers, especially when the MI industry is ready to support.

Q: Can you discuss the health of the consumer and any notable credit trends by state or region? A: Adam Pollitzer highlighted the macro environment’s resilience, with low unemployment and continued consumer spending. Aurora Swithenbank mentioned no significant credit trends by geography, noting that their portfolio management strategy helps mitigate regional risks.

Q: How do you view the persistency trends and their impact on your portfolio? A: Aurora Swithenbank noted a slight decline in persistency due to rate changes, but it remains above historical trends. Adam Pollitzer added that while refinancing activity could impact persistency, it also presents opportunities for new business, as seen in their strong fourth-quarter results.

Q: Regarding your quota share and excess of loss treaties, is there anything notable about the forward flow coverage through 2028? A: Aurora Swithenbank explained that while the forward flow coverage is consistent with past practices, the size and economics of the 2028 coverage are better, reflecting the strength of the reinsurance market.

Q: What are your plans for share buybacks and capital management in 2026? A: Adam Pollitzer indicated satisfaction with their buyback program, suggesting a continued pace of approximately $25 million per quarter, with flexibility to adjust based on value opportunities.

Q: Are there any specific expense initiatives or AI developments planned for 2026? A: Aurora Swithenbank stated no major changes in expense discipline, while Adam Pollitzer highlighted ongoing AI deployments across departments to enhance efficiency and productivity without significant incremental investment.

Q: Do you anticipate achieving parity market share in NIW in 2026? A: Adam Pollitzer expressed satisfaction with their performance and growth, noting the potential for an attractive market environment in 2026, contingent on stable interest rates, which could support further gains in market share.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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