Key Takeaways
NMI Holdings (NASDAQ: NMIH) reported first-quarter revenue of $183.5 million, a 6 percent increase year-over-year that surpassed analyst estimates, as the mortgage insurer grew its portfolio to a record size.
"National MI continued to outperform in the first quarter, delivering significant new business production, consistent growth in our insured portfolio and strong financial results," President and Chief Executive Officer Adam Pollitzer said on the company's earnings call.
The insurer reported adjusted net income of $99.4 million, or $1.28 per diluted share, beating consensus estimates by $0.06. Net premiums earned for the quarter rose to a record $154.8 million, compared to $149.4 million in the prior-year period.
The company's primary insurance-in-force reached a record $222.3 billion, supported by $12.3 billion of new insurance written in the quarter, a 33 percent increase year-over-year. However, the company also saw an increase in defaults to 8,044 from 7,661 in the prior quarter, and its 12-month persistency rate, which measures policy retention, declined to 82.2 percent from 83.4 percent. Claims expense was $20.7 million, up from $4.5 million in the first quarter of 2025. Management characterized the credit trends as a "natural normalization."
NMI Holdings repurchased $27.7 million of its common stock during the quarter, retiring 716,000 shares. The company stated it has $198 million of capacity remaining under its current buyback authorization.
The results show a resilient business model navigating a shifting housing market, though the increase in defaults and claims warrants attention. Investors will monitor the company's ability to manage credit normalization while sustaining its growth in new insurance written. NMI Holdings does not provide forward guidance.
This article is for informational purposes only and does not constitute investment advice.
