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- **Record Financials**: Q3 revenue ($178.7M) and net income ($96M) hit new highs, with 15.6% ROE.
- **Portfolio Growth**: Insurance-in-force up 5% YoY to $218.4B, supported by 83.9% persistency.
- **Credit Resilience**: Default rate of 1.05% reflects seasonal trends, with muted macro stress.
- **Reinsurance Strength**: 2025-2027 reinsurance placements secure forward coverage; XOL market preference for cost efficiency.
- **Share Buybacks**: $24.6M repurchased in Q3, with $256M remaining under program.

**【Management Opening Remarks】**
- John Swenson introduced the call, noting the release of Q3 2025 financial results and reminding participants of forward-looking statements and non-GAAP measures.

**【Bradley Shuster - Executive Chairman】**
- Reported standout Q3 performance with $13 billion NIW and record $218.4 billion insurance-in-force.
- Highlighted the industry's role in supporting borrowers with low-cost down payment solutions and protecting taxpayers.
- Emphasized the strength of the private MI industry and ongoing collaboration with regulators.

**【Adam Pollitzer - President & CEO】**
- Announced record Q3 revenue ($178.7M), net income ($96M), and ROE (15.6%).
- Noted 5% YoY growth in insurance-in-force and 83.9% 12-month persistency.
- Highlighted disciplined underwriting, risk management, and reinsurance strategies to mitigate macro risks.
- Discussed macro resilience, housing market strength, and potential impacts of interest rate changes on persistency.

**【Aurora Swithenbank - CFO】**
- Detailed financial results: GAAP EPS of $1.22, core yield of 34.2 bps, and expense ratio of 19.3% (record low).
- Reported claims expense of $18.6M (seasonal increase) and 7,093 defaults (1.05% default rate).
- Highlighted $3.1 billion in cash and investments, with $1.4 billion excess PMIERs assets.
- Noted $24.6M in share repurchases and $256M remaining under the buyback program.

**【Q&A Highlights】**
- **Credit Performance**: Default rate of 1.05% (up 5% YoY) due to seasonal trends and portfolio seasoning. Encouraged by muted seasonality and borrower resilience.
- **Competitive Environment**: 6 incumbent MI players dominate, with high barriers to entry for new competitors.
- **Housing Market**: Strength in Northeast/Midwest vs. softness in Sunbelt markets. Consumer confidence cautious amid labor market strain.
- **Reinsurance Strategy**: Active in XOL market for forward coverage, with 2025-2027 reinsurance placements. ILN market also remains a source of capital.
- **Interest Rate Impact**: Potential refi activity could pressure persistency but also drive new business. 5.2% WAC note rate underpins portfolio stability.
- **Expense Ratio**: Record-low 19.3% driven by operating leverage; Q4 may see slight increase due to people-related expenses.

NMI Holdings, Inc. (NMIH) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

NMIH

NMIH fundamentals

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