NMI's Q1 2025 Earnings Call: Unpacking Key Contradictions in Capital Strategy, Pricing, and Performance

PMIERs excess and capital distribution strategy, pricing discipline and environment, portfolio performance and vintage consistency, premium yield stability are the key contradictions discussed in NMI's latest 2025Q1 earnings call.



Strong Financial Performance:
- NMI Holdings reported record revenue of $173.2 million for Q1 2025, with a 4% increase from the previous quarter and 10.9% year-on-year growth.
- The growth was driven by record net premiums earned and a consistent increase in the insured portfolio.

Insured Portfolio and NIW Volume:
- The company ended the quarter with a record primary insurance in force of $211.3 billion, marking a 1% increase from the end of the previous quarter and a 6% increase year-on-year.
- This was supported by $9.2 billion of NIW volume generated in Q1 2025.

Credit Performance and Risk Management:
- Defaults at the end of Q1 were unchanged at 1%, with a total of 6,859 defaults, including 625 loans in FEMA declared disaster areas.
- The company maintained strong credit performance through proactive risk management, including disciplined pricing, risk selection, and reinsurance decisions.

Return on Equity and Shareholder Value:
- NMI Holdings reported a record return on equity of 18.1% for Q1 2025, with a GAAP net income of $102.6 million or $1.28 per diluted share.
- This was achieved through consistent growth in the high-quality insured portfolio, favorable credit experience, and continued expense efficiency.