NMI Holdings Q3 Earnings Meet Estimates, Revenues & Premiums Rise Y/Y

NMI Holdings Inc. NMIH reported third-quarter 2025 operating net income per share of $1.21, which matched the Zacks Consensus Estimate. The bottom line increased 5.2% year over year. 

The quarterly results reflected higher premiums earned, improved net investment income, as well as consistent growth in the high-quality insured portfolio. It was offset by lower persistency.

Operational Update

NMI Holdings’ total operating revenues of $179 million increased 7.8% year over year on higher net premiums earned (up 5.5%) and net investment income (up 19.1%). Revenues beat the Zacks Consensus Estimate by 2.3%.

Primary insurance in force increased 5.2% to $218.4 billion. Annual persistency was 83.9%, down 160 basis points (bps) year over year. New insurance written was $13 billion, up 6.4% year over year.

Underwriting and operating expenses totaled $29.2 million, down 0.01% year over year. Insurance claims and claim expenses were $18.6 million, which surged 80.5% year over year. The loss ratio was 12.3, which deteriorated 510 bps.

The adjusted expense ratio of 19.3 improved 100 bps year over year, while the adjusted combined ratio of 31.5 deteriorated 400 bps.

Financial Update

Book value per share, a measure of net worth, was up 17.8% year over year to $32.62 as of Sept. 30, 2025. 

NMI Holdings had $130.4 million in cash and cash equivalents, which more than doubled from 2024 end. The debt balance of $416.5 million increased 0.3% from the end of 2024. 

The annualized adjusted return on equity was 15.5%, which contracted 200 bps year over year. 

Total PMIERs available assets were $3.4 billion. Net risk-based required assets totaled $2 billion at the end of third-quarter 2025.
32.62     

Zacks Rank

NMIH currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Some Other Insurers

CNA Financial Corporation CNA reported third-quarter 2025 core earnings of $1.50 per share, which beat the Zacks Consensus Estimate by 20%. The bottom line increased 39% year over year. Total operating revenues of CNA Financial were $3.4 billion, up 6.3% year over year. The top line missed the Zacks Consensus Estimate by 0.05%.

Net written premiums of Property & Casualty Operations increased 3.2% year over year to $2.4 billion, driven by P&C renewal premium change of more than 4% with a written rate of more than 3% and exposure change of more than 1%. Net investment income rose 2% year over year to $638 million. The Zacks Consensus Estimate and our estimate for net investment were both pegged at $690.5 million.

Unum Group’s UNM third-quarter 2025 operating net income of $2.09 per share missed the Zacks Consensus Estimate by 2.7%. The bottom line decreased 1.8% year over year. Total operating revenues of Unum Group were $3.4 billion, up 5% year over year, driven by higher premium income and other income. The top line beat the Zacks Consensus Estimate by 2.5%.

Premium increased 2.2% from the prior-year quarter to $2.7 billion, which matched our estimate as well as the Zacks Consensus Estimate. Total benefits and expenses increased 38.3% year over year to $3.3 billion. Our estimate for the same was $2.8 billion.

Assurant, Inc. AIZ reported third-quarter 2025 net operating income of $5.73 per share, which beat the Zacks Consensus Estimate by 35.4%. The bottom line surged 91% year over year. Total revenues increased 8.6% year over year to nearly $3.2 billion. The top line beat the Zacks Consensus Estimate by 2.6%.

Net earned premiums, fees and other income increased 8.9% year over year to $3.1 billion. Our estimate was $3 billion. Net investment income was up 2.9% year over year to $133.5 million. Our estimate was $125.1 million. The Zacks Consensus Estimate was pegged at $131 million.

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This article originally published on Zacks Investment Research (zacks.com).

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