NMI Holdings, Inc. Reports Second Quarter 2025 Financial Results

EMERYVILLE, Calif., July 29, 2025 (GLOBE NEWSWIRE) -- NMI Holdings, Inc. (Nasdaq: NMIH) today reported net income of $96.2 million, or $1.21 per diluted share, for the second quarter ended June 30, 2025, compared to $102.6 million, or $1.28 per diluted share, for the first quarter ended March 31, 2025 and $92.1 million, or $1.13 per diluted share, for the second quarter ended June 30, 2024. Adjusted net income for the quarter was $96.5 million, or $1.22 per diluted share, compared to $102.5 million, or $1.28 per diluted share, for the first quarter ended March 31, 2025 and $97.6 million, or $1.20 per diluted share, for the second quarter ended June 30, 2024. Adam Pollitzer, President and Chief Executive Officer of National MI, said, “In the second quarter, we again delivered strong operating performance, continued growth in our high-quality insured portfolio, and standout financial results. We have a strong customer franchise, a talented team driving us forward every day, an exceptionally high-quality book covered by a comprehensive set of risk transfer solutions, and a robust balance sheet supported by the significant earnings power of our platform. Looking forward, we’re well positioned to continue delivering differentiated growth, returns and value for our shareholders.” Selected second quarter 2025 highlights include: Primary insurance-in-force at quarter end was $214.7 billion, compared to $211.3 billion at the end of the first quarter and $203.5 billion at the end of the second quarter of 2024.Net premiums earned were $149.1 million, compared to $149.4 million in the first quarter and $141.2 million in the second quarter of 2024.Total revenue was $173.8 million, compared to $173.2 million in the first quarter and $162.1 million in the second quarter of 2024.Insurance claims and claim expenses were $13.4 million, compared to $4.5 million in the first quarter and $0.3 million in the second quarter of 2024. Loss ratio was 9.0%, compared to 3.0% in the first quarter and 0.2% in the second quarter of 2024.Underwriting and operating expenses were $29.5 million, compared to $30.2 million in the first quarter and $28.3 million in the second quarter of 2024. Expense ratio was 19.8%, compared to 20.2% in the first quarter and 20.1% in the second quarter of 2024.Net income was $96.2 million, compared to $102.6 million in the first quarter and $92.1 million in the second quarter of 2024. Diluted EPS was $1.21, compared to $1.28 in the first quarter and $1.13 in the second quarter of 2024.Adjusted net income was $96.5 million, compared to $102.5 million in the first quarter and $97.6 million in the second quarter of 2024. Adjusted diluted EPS was $1.22, compared to $1.28 in the first quarter and $1.20 in the second quarter of 2024.Shareholders’ equity was $2.4 billion at quarter end and book value per share was $31.14. Book value per share excluding the impact of net unrealized gains and losses in the investment portfolio was $32.08, up 4% compared to $30.85 in the first quarter and 16% compared to $27.54 in the second quarter of 2024.Annualized return on equity for the quarter was 16.2%, compared to 18.1% in the first quarter and 18.3% in the second quarter of 2024. Annualized adjusted return on equity was 16.3%, compared to 18.1% in the first quarter and 19.4% in the second quarter of 2024.At quarter-end, total PMIERs available assets were $3.2 billion and net risk-based required assets were $1.9 billion. Quarter EndedQuarter EndedQuarter EndedChange (1)Change (1) 6/30/20253/31/20256/30/2024Q/QY/YINSURANCE METRICS ($billions)Primary Insurance-in-Force $214.7$211.3$203.52 %5 %New Insurance Written - NIW 12.59.212.535 %— FINANCIAL HIGHLIGHTS (Unaudited, $millions, except per share amounts) Net Premiums Earned$149.1$149.4$141.2—6 %Net Investment Income24.923.720.75 %21 %Insurance Claims and Claim Expenses13.44.50.3200 %NM (3)Underwriting and Operating Expenses 29.530.228.3(2) %4 %Adjusted Net Income 96.5102.597.6(6) %(1) %Adjusted Diluted EPS$1.22$1.28$1.20(5) %1 %Book Value per Share (excluding net unrealized gains and losses) (2)$32.08$30.85$27.544 %16 %Loss Ratio9.0 %3.0 %0.2 % Expense Ratio 19.8 %20.2 %20.1 % (1) Percentages may not be replicated based on the rounded figures presented in the table.(2) Book value per share (excluding net unrealized gains and losses) is defined as total shareholders' equity, excluding the after-tax effects of unrealized gains and losses on our investment portfolio, divided by shares outstanding.(3) Not meaningful. Conference Call and Webcast Details The company will hold a conference call, which will be webcast live today, July 29, 2025, at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time. The webcast will be available on the company's website, www.nationalmi.com, in the “Investor Relations” section. The conference call can also be accessed by dialing (844) 481-2708 in the U.S., or (412) 317-0664 internationally, by referencing NMI Holdings, Inc. About NMI Holdings, Inc. NMI Holdings, Inc. (NASDAQ: NMIH), is the parent company of National Mortgage Insurance Corporation (National MI), a U.S.-based, private mortgage insurance company enabling low down payment borrowers to realize home ownership while protecting lenders and investors against losses related to a borrower's default. To learn more, please visit www.nationalmi.com. Cautionary Note Regarding Forward-Looking Statements Certain statements contained in this press release or any other written or oral statements made by or on behalf of the Company in connection therewith may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995 (the “PSLRA”). The PSLRA provides a “safe harbor” for any forward-looking statements. All statements other than statements of historical fact included in or incorporated by reference in this release are forward-looking statements, including any statements about our expectations, outlook, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance. These statements are often, but not always, made through the use of words or phrases such as “anticipate,” “believe,” “can,” “could,” “may,” “predict,” “assume,” “potential,” “should,” “will,” “estimate,” “perceive,” “plan,” “project,” “continuing,” “ongoing,” “expect,” “intend” and similar words or phrases. All forward-looking statements are only predictions and involve estimates, known and unknown risks, assumptions and uncertainties that may turn out to be inaccurate and could cause actual results to differ materially from those expressed in them. Many risks and uncertainties are inherent in our industry and markets. Others are more specific to our business and operations. Important factors that could cause actual events or results to differ materially from those indicated in such statements include, but are not limited to: changes in general economic, market and political conditions and policies (including changes in interest rates and inflation) and investment results or other conditions that affect the U.S. housing market or the U.S. markets for home mortgages, mortgage insurance, reinsurance and credit risk transfer markets, including the risk related to geopolitical instability, inflation, an economic downturn (including any decline in home prices) or recession, and their impacts on our business, operations and personnel; changes in the charters, business practices, policies, pricing or priorities of Fannie Mae and Freddie Mac (collectively, the GSEs), which may include decisions that have the impact of decreasing or discontinuing the use of mortgage insurance as credit enhancement generally, or with first time homebuyers or on very high loan-to-value mortgages; or changes in the direction of housing policy objectives of the Federal Housing Finance Agency (“FHFA”), such as the FHFA’s priority to increase the accessibility to and affordability of homeownership for low-and-moderate income borrowers and underrepresented communities; our ability to remain an eligible mortgage insurer under the private mortgage insurer eligibility requirements (“PMIERs”) and other requirements imposed by the GSEs, which they may change at any time; retention of our existing certificates of authority in each state and the District of Columbia (“D.C.”) and our ability to remain a mortgage insurer in good standing in each state and D.C.; our future profitability, liquidity and capital resources; actions of existing competitors, including other private mortgage insurers and government mortgage insurers such as the Federal Housing Administration, the U.S. Department of Agriculture’s Rural Housing Service and the U.S. Department of Veterans Affairs, and potential market entry by new competitors or consolidation of existing competitors; adoption of new or changes to existing laws, rules and regulations that impact our business or financial condition directly or the mortgage insurance industry generally or their enforcement and implementation by regulators, including the implementation of the final rules defining and/or concerning “Qualified Mortgage” and “Qualified Residential Mortgage”; U.S. federal tax reform and other potential changes in tax law and their impact on us and our operations; legislative or regulatory changes to the GSEs’ role in the secondary mortgage market or other changes that could affect the residential mortgage industry generally or mortgage insurance industry in particular; potential legal and regulatory claims, investigations, actions, audits or inquiries that could result in adverse judgements, settlements, fines or other reliefs that could require significant expenditures or have other negative effects on our business; our ability to successfully execute and implement our capital plans, including our ability to access the equity, credit and reinsurance markets and to enter into, and receive approval of, reinsurance arrangements on terms and conditions that are acceptable to us, the GSEs and our regulators; lenders, the GSEs, or other market participants seeking alternatives to private mortgage insurance; our ability to implement our business strategy, including our ability to write mortgage insurance on high quality low down payment residential mortgage loans, implement successfully and on a timely basis, complex infrastructure, systems, procedures, and internal controls to support our business and regulatory and reporting requirements of the insurance industry; our ability to attract and retain a diverse customer base, including the largest mortgage originators; failure of risk management or pricing or investment strategies; decrease in the length of time our insurance policies are in force; emergence of unexpected claim and coverage issues, including claims exceeding our reserves or amounts we had expected to experience; potential adverse impacts arising from natural disasters including, with respect to affected areas, a decline in new business, adverse effects on home prices, and an increase in notices of default on insured mortgages; climate risk and efforts to manage or regulate climate risk by government agencies could affect our business and operations; potential adverse impacts arising from the occurrence of any man-made disasters or public health emergencies, including pandemics; the inability of our counter-parties, including third party reinsurers, to meet their obligations to us; failure to maintain, improve and continue to develop necessary information technology systems or the failure of technology providers to perform; effectiveness and security of our information technology systems and digital products and services, including the risks these systems, products or services may fail to operate as expected or planned, or expose us to cybersecurity or third-party risks (including the exposure of our confidential customer and other information); and ability to recruit, train and retain key personnel. These risks and uncertainties also include, but are not limited to, those set forth under the heading “Risk Factors” detailed in Item 1A of Part I of our Annual Report on Form 10-K for the year ended December 31, 2024, as subsequently updated through other reports we file with the SEC. All subsequent written and oral forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. We caution you not to place undue reliance on any forward-looking statement, which speaks only as of the date on which it is made, and we undertake no obligation to publicly update or revise any forward-looking statement to reflect new information, future events or circumstances that occur after the date on which the statement is made or to reflect the occurrence of unanticipated events except as required by law. Use of Non-GAAP Financial Measures We believe the use of the non-GAAP measures of adjusted income before tax, adjusted net income, adjusted diluted EPS, adjusted return-on-equity, adjusted expense ratio, adjusted combined ratio and book value per share (excluding net unrealized gains and losses) enhances the comparability of our fundamental financial performance between periods, and provides relevant information to investors. These non-GAAP financial measures align with the way the company's business performance is evaluated by management. These measures are not prepared in accordance with GAAP and should not be viewed as alternatives to GAAP measures of performance. These measures have been presented to increase transparency and enhance the comparability of our fundamental operating trends across periods. Other companies may calculate these measures differently; their measures may not be comparable to those we calculate and present. Adjusted income before tax is defined as GAAP income before tax, excluding the pre-tax effects of net realized gains or losses from our investment portfolio, periodic costs incurred in connection with capital markets transactions, and other infrequent, unusual or non-operating items in the periods in which such items are incurred. Adjusted net income is defined as GAAP net income, excluding the after-tax effects of net realized gains or losses from our investment portfolio, periodic costs incurred in connection with capital markets transactions, and other infrequent, unusual or non-operating items in the periods in which such items are incurred. Adjustments to components of pre-tax income are tax effected using the applicable federal statutory tax rate for the respective periods. Adjusted diluted EPS is defined as adjusted net income divided by adjusted weighted average diluted shares outstanding. Adjusted weighted average diluted shares outstanding is defined as weighted average diluted shares outstanding, adjusted for changes in the dilutive effect of non-vested shares that would otherwise have occurred had GAAP net income been calculated in accordance with adjusted net income. There will be no adjustment to weighted average diluted shares outstanding in the periods that non-vested shares are anti-dilutive under GAAP. Adjusted return on equity is calculated by dividing adjusted net income on an annualized basis by the average shareholders' equity for the period. Adjusted expense ratio is defined as GAAP underwriting and operating expenses, excluding the pre-tax effects of periodic costs incurred in connection with capital markets transactions, divided by net premiums earned. Adjusted combined ratio is defined as the total of GAAP underwriting and operating expenses, excluding the pre-tax effects of periodic costs incurred in connection with capital markets transactions and insurance claims and claims expenses, divided by net premiums earned. Book value per share (excluding net unrealized gains and losses) is defined as total shareholders' equity, excluding the after-tax effects of unrealized gains and losses on investments, divided by shares outstanding. Although adjusted income before tax, adjusted net income, adjusted diluted EPS, adjusted return-on-equity, adjusted expense ratio, adjusted combined ratio and book value per share (excluding net unrealized gains and losses) exclude certain items that have occurred in the past and are expected to occur in the future, the excluded items: (1) are not viewed as part of the operating performance of our primary activities; or (2) are impacted by market, economic or regulatory factors and are not necessarily indicative of operating trends, or both. These adjustments, and the reasons for their treatment, are described below. (1) Net realized investment gains and losses. The recognition of net realized investment gains or losses can vary significantly across periods as the timing is highly discretionary and is influenced by factors such as market opportunities, tax and capital profile, and overall market cycles that do not reflect our current period operating results. (2) Capital markets transaction costs. Capital markets transaction costs result from activities that are undertaken to improve our debt profile or enhance our capital position through activities such as debt refinancing and capital markets reinsurance transactions that may vary in their size and timing due to factors such as market opportunities, tax and capital profile, and overall market cycles. (3) Other infrequent, unusual or non-operating items. Items that are the result of unforeseen or uncommon events, and are not expected to recur with frequency in the future. Identification and exclusion of these items provides clarity about the impact special or rare occurrences may have on our current financial performance. Past adjustments under this category include infrequent, unusual or non-operating adjustments related to severance, restricted stock modification and other expenses incurred in connection with the CEO transition announced in September 2021 and the effects of the release of the valuation allowance recorded against our net federal and certain state net deferred tax assets in 2016 and the re-measurement of our net deferred tax assets in connection with tax reform in 2017. We believe such items are infrequent or non-recurring in nature, and are not indicative of the performance of, or ongoing trends in, our primary operating activities or business. (4) Net unrealized gains and losses on investments. The recognition of net unrealized gains or losses on investment can vary significantly across periods and is influenced by factors such as interest rate movement, overall market and economic conditions, and tax and capital profiles. These valuation adjustments may not necessarily result in economic gains or losses and not reflective of ongoing operations. Investor ContactGregory EppsSenior Manager, Investor Relations and TreasuryInvestor.relations@nationalmi.com Consolidated statements of operations and comprehensive income (unaudited)For the three months ended June 30, For the six months ended June 30, 2025 2024 2025 2024 (In Thousands, except for per share data)Revenues Net premiums earned$149,066 $141,168 $298,432 $277,825 Net investment income 24,949 20,688 48,635 40,124 Net realized investment losses (400) — (376) — Other revenues 164 266 334 426 Total revenues 173,779 162,122 347,025 318,375 Expenses Insurance claims and claim expenses 13,445 276 17,923 3,970 Underwriting and operating expenses 29,508 28,330 59,683 58,145 Service expenses 110 194 226 331 Interest expense 7,115 14,678 14,221 22,718 Total expenses 50,178 43,478 92,053 85,164 Income before income taxes 123,601 118,644 254,972 233,211 Income tax expense 27,450 26,565 56,262 52,082 Net income$96,151 $92,079 $198,710 $181,129 Earnings per share Basic$1.23 $1.15 $2.54 $2.25 Diluted$1.21 $1.13 $2.50 $2.22 Weighted average common shares outstanding Basic 77,987 80,117 78,197 80,421 Diluted 79,256 81,300 79,557 81,703 Loss ratio (1) 9.0% 0.2% 6.0% 1.4%Expense ratio (2) 19.8% 20.1% 20.0% 20.9%Combined ratio (3) 28.8% 20.3% 26.0% 22.4% (1) Loss ratio is calculated by dividing insurance claims and claim expenses by net premiums earned.(2) Expense ratio is calculated by dividing underwriting and operating expenses by net premiums earned.(3) Combined ratio may not foot due to rounding. Consolidated balance sheets (unaudited)June 30, 2025 December 31, 2024 Assets(In Thousands, except for share data)Fixed maturities, available-for-sale, at fair value (amortized cost of $3,016,032 and $2,876,343)$2,929,117 $2,723,541 Cash and cash equivalents84,013 54,308 Premiums receivable, net83,647 82,804 Accrued investment income24,376 22,386 Deferred policy acquisition costs, net64,148 64,327 Software and equipment, net23,793 25,681 Intangible assets and goodwill3,634 3,634 Reinsurance recoverable 32,705 32,260 Prepaid federal income taxes322,175 322,175 Other assets23,477 18,857 Total assets$3,591,085 $3,349,973 Liabilities Debt$416,073 $415,146 Unearned premiums54,159 65,217 Accounts payable and accrued expenses86,904 103,164 Reserve for insurance claims and claim expenses163,033 152,071 Deferred tax liability, net441,389 386,192 Other liabilities9,420 10,751 Total liabilities1,170,978 1,132,541 Shareholders' equity Common stock: 77,717,841 and 78,600,726 shares outstanding as of June 30, 2025 and December 31, 2024, respectively884 879 Additional paid-in capital1,006,058 1,004,692 Treasury Stock, at cost: 10,647,668 and 9,301,900 common shares as of June 30, 2025 and December 31, 2024, respectively(296,047) (246,594)Accumulated other comprehensive loss, net of tax(72,757) (124,804) Retained earnings 1,781,969 1,583,259 Total shareholders' equity2,420,107 2,217,432 Total liabilities and shareholders' equity$3,591,085 $3,349,973 Non-GAAP Financial Measure Reconciliations (unaudited) As of and for the three months ended For the six months ended 6/30/2025 3/31/2025 6/30/2024 6/30/2025 6/30/2024 As Reported(In Thousands, except for per share data)Revenues Net premiums earned$149,066 $149,366 $141,168 $298,432 $277,825Net investment income24,949 23,686 20,688 48,635 40,124Net realized investment (losses) gains(400) 24 — (376) —Other revenues164 170 266 334 426Total revenues173,779 173,246 162,122 347,025 318,375Expenses Insurance claims and claim expenses13,445 4,478 276 17,923 3,970Underwriting and operating expenses29,508 30,175 28,330 59,683 58,145Service expenses110 116 194 226 331Interest expense7,115 7,106 14,678 14,221 22,718Total expenses50,178 41,875 43,478 92,053 85,164 Income before income taxes123,601 131,371 118,644 254,972 233,211Income tax expense 27,450 28,812 26,565 56,262 52,082Net income $96,151 $102,559 $92,079 $198,710 $181,129 Adjustments: Net realized investment losses (gains)400 (24) — 376 —Capital markets transaction costs— — 6,966 — 6,966Adjusted income before taxes124,001 131,347 125,610 255,348 240,177 Income tax expense (benefit) on adjustments (1)84 (5) 1,463 79 1,463Adjusted net income$96,467 $102,540 $97,582 $199,007 $186,632 Weighted average diluted shares outstanding 79,256 79,858 81,300 79,557 81,703 Diluted EPS $1.21 $1.28 $1.13 $2.50 $2.22Adjusted diluted EPS $1.22 $1.28 $1.20 $2.50 $2.28 Return on equity 16.2 % 18.1 % 18.3 % 17.1 % 18.2 %Adjusted return on equity16.3 % 18.1 % 19.4 % 17.2 % 18.8 % Expense ratio (2)19.8 % 20.2 % 20.1 % 20.0 % 20.9 %Adjusted expense ratio (3)19.8 % 20.2 % 20.1 % 20.0 % 20.9 % Combined ratio (4)28.8 % 23.2 % 20.3 % 26.0 % 22.4 %Adjusted combined ratio (5)28.8 % 23.2 % 20.3 % 26.0 % 22.4 % Book value per share (6)$31.14 $29.65 $25.65 Book value per share (excluding net unrealized gains and losses) (7)$32.08 $30.85 $27.54 (1) Marginal tax impact of non-GAAP adjustments is calculated based on our statutory U.S. federal corporate income tax rate of 21%, except for those items that are not eligible for an income tax deduction.(2) Expense ratio is calculated by dividing underwriting and operating expenses by net premiums earned.(3) Adjusted expense ratio is calculated by dividing adjusted underwriting and operating expense (underwriting and operating expenses excluding costs related to capital markets reinsurance transactions) by net premiums earned.(4) Combined ratio is calculated by dividing the total of underwriting and operating expenses and insurance claims and claim expenses by net premiums earned.(5) Adjusted combined ratio is calculated by dividing the total of adjusted underwriting and operating expenses (underwriting and operating expenses excluding costs related to capital market reinsurance transaction) and insurance claims and claim expenses by net premiums earned.(6) Book value per share is calculated by dividing total shareholders' equity by shares outstanding.(7) Book value per share (excluding net unrealized gains and losses) is defined as total shareholders' equity, excluding the after-tax effects of unrealized gains and losses on our investment portfolio, divided by shares outstanding. Historical Quarterly Data2025 2024 June 30 March 31 December 31 September 30 June 30 (In Thousands, except for per share data)Revenues Net premiums earned$149,066 $149,366 $143,520 $143,343 $141,168Net investment income24,949 23,686 22,718 22,474 20,688Net realized investment (losses) gains(400) 24 33 (10) —Other revenues164 170 233 285 266Total revenues173,779 173,246 166,504 166,092 162,122Expenses Insurance claims and claim expenses13,445 4,478 17,253 10,321 276Underwriting and operating expenses29,508 30,175 31,092 29,160 28,330Service expenses110 116 184 208 194Interest expense7,115 7,106 7,102 7,076 14,678Total expenses50,178 41,875 55,631 46,765 43,478 Income before income taxes123,601 131,371 110,873 119,327 118,644Income tax expense 27,450 28,812 24,706 26,517 26,565Net income $96,151 $102,559 $86,167 $92,810 $92,079 Earnings per share Basic$1.23 $1.31 $1.09 $1.17 $1.15Diluted$1.21 $1.28 $1.07 $1.15 $1.13 Weighted average common shares outstanding Basic77,987 78,407 78,997 79,549 80,117Diluted79,256 79,858 80,623 81,045 81,300 Other data Loss ratio (1)9.0 % 3.0 % 12.0 % 7.2 % 0.2 %Expense ratio (2)19.8 % 20.2 % 21.7 % 20.3 % 20.1 %Combined ratio28.8 % 23.2 % 33.7 % 27.5 % 20.3 % (1) Loss ratio is calculated by dividing insurance claims and claim expenses by net premiums earned.(2) Expense ratio is calculated by dividing underwriting and operating expenses by net premiums earned. Portfolio Statistics The table below highlights trends in our primary portfolio as of the date and for the periods indicated. Primary portfolio trendsAs of and for the three months ended June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 ($ Values In Millions, except as noted below)New insurance written (NIW)$12,464 $9,221 $11,925 $12,218 $12,503New risk written3,260 2,428 3,134 3,245 3,335Insurance-in-force (IIF) (1)214,653 211,308 210,183 207,538 203,501Risk-in-force (RIF) (1)57,496 56,515 56,113 55,253 53,956Policies in force (count) (1)668,638 661,490 659,567 654,374 645,276Average loan size ($ value in thousands) (1)$321 $319 $319 $317 $315Coverage percentage (2)26.8 % 26.7 % 26.7 % 26.6 % 26.5 %Loans in default (count) (1)6,709 6,859 6,642 5,712 4,904Default rate (1)1.00 % 1.04 % 1.01 % 0.87 % 0.76 %Risk-in-force on defaulted loans (1)$569 $567 $545 $468 $401Average net premium yield (3)0.28 % 0.28 % 0.27 % 0.28 % 0.28 %Earnings from cancellations$0.7 $0.6 $0.8 $0.8 $1.0Annual persistency (4)84.1 % 84.3 % 84.6 % 85.5 % 85.4 %Quarterly run-off (5)4.3 % 3.9 % 4.5 % 4.0 % 4.2 % (1) Reported as of the end of the period.(2) Calculated as end of period RIF divided by end of period IIF.(3) Calculated as net premiums earned, divided by average primary IIF for the period, annualized.(4) Defined as the percentage of IIF that remains on our books after a given twelve-month period.(5) Defined as the percentage of IIF that is no longer on our books after a given three-month period. NIW, IIF and Premiums The tables below present NIW and primary IIF, as of the dates and for the periods indicated. NIWFor the three months ended June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 (In Millions)Monthly$12,214 $9,049 $11,688 $11,978 $12,288Single250 172 237 240 215Total$12,464 $9,221 $11,925 $12,218 $12,503 Primary IIFAs of June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 (In Millions)Monthly$197,608 $193,856 $192,228 $189,241 $184,862Single17,045 17,452 17,955 18,297 18,639Total$214,653 $211,308 $210,183 $207,538 $203,501 The following table presents the amounts related to the company's quota-share reinsurance transactions (the 2016 QSR Transaction, 2018 QSR Transaction, 2020 QSR Transaction, 2021 QSR Transaction, 2022 QSR Transaction, 2022 Seasoned QSR Transaction, 2023 QSR Transaction, 2024 QSR Transaction, and 2025 QSR Transaction and collectively, the QSR Transactions), insurance-linked note transactions (the 2021-1 ILN Transaction, and 2021-2 ILN Transaction and collectively, the ILN Transactions), and traditional reinsurance transactions (the 2022-1 XOL Transaction, 2022-2 XOL Transaction, 2022-3 XOL Transaction, 2023-1 XOL Transaction, 2023-2 XOL Transaction, 2024 XOL Transaction, and 2025 XOL Transaction and collectively, the XOL Transactions) for the periods indicated. For the three months ended June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 (In Thousands)The QSR Transactions Ceded risk-in-force$12,764,708 $12,888,870 $13,024,200 $12,968,039 $12,815,434Ceded premiums earned(40,227) (41,011) (41,596) (41,761) (41,555)Ceded claims and claim expenses (benefits)3,253 523 4,075 2,449 (138)Ceding commission earned9,669 9,768 9,997 10,152 10,222Profit commission19,958 23,398 20,149 21,883 24,351The ILN Transactions (1) Ceded premiums$(3,244) $(3,311) $(4,217) $(4,302) $(5,858)The XOL Transactions Ceded Premiums$(10,350) $(10,168) $(9,969) $(9,760) $(9,403) (1) Effective July 25, 2024 and December 27, 2024, NMIC exercised its optional termination rights to terminate and commute its previously outstanding excess-of-loss reinsurance agreements with Oaktown Re III Ltd. and Oaktown Re V Ltd., respectively. In connection with the terminations and commutations, the insurance-linked notes issued by Oaktown Re III Ltd. and Oaktown Re V Ltd. were redeemed in full with a distribution of remaining collateral assets. The tables below present our total NIW by FICO, loan-to-value (LTV) ratio, and purchase/refinance mix for the periods indicated. NIW by FICOFor the three months ended For the six months ended June 30, 2025 March 31, 2025 June 30, 2024 June 30, 2025 June 30, 2024 (In Millions)>= 760$6,523 $4,971 $6,797 $11,494 $11,685740-7592,281 1,753 2,154 4,034 3,951720-7391,585 1,177 1,537 2,762 2,757700-7191,061 665 1,084 1,726 1,864680-699590 413 635 1,003 1,165<=679424 242 296 666 479Total$12,464 $9,221 $12,503 $21,685 $21,901Weighted average FICO756 758 757 757 757 NIW by LTVFor the three months ended For the six months ended June 30, 2025 March 31, 2025 June 30, 2024 June 30, 2025 June 30, 2024 (In Millions)95.01% and above$1,544 $1,147 $1,768 $2,691 $2,83090.01% to 95.00%5,486 4,274 5,645 9,760 10,05985.01% to 90.00%3,887 2,751 3,739 6,638 6,67085.00% and below1,547 1,049 1,351 2,596 2,342Total$12,464 $9,221 $12,503 $21,685 $21,901Weighted average LTV92.0 % 92.2 % 92.3 % 92.1 % 92.3 % NIW by purchase/refinance mixFor the three months ended For the six months ended June 30, 2025 March 31, 2025 June 30, 2024 June 30, 2025 June 30, 2024 (In Millions)Purchase$11,813 $8,822 $12,257 $20,635 $21,414Refinance 651 399 246 1,050 487Total$12,464 $9,221 $12,503 $21,685 $21,901 The table below presents a summary of our primary IIF and RIF by book year as of June 30, 2025. Primary IIF and RIFAs of June 30, 2025 IIF RIFBook Year(In Millions)2025$21,220 $5,566202441,100 10,909202332,013 8,458202244,598 11,953202145,409 12,4242020 and before30,313 8,186Total$214,653 $57,496 The tables below present our total primary IIF and RIF by FICO and LTV, and total primary RIF by loan type as of the dates indicated. Primary IIF by FICOAs of June 30, 2025 March 31, 2025 June 30, 2024 (In Millions)>= 760$107,677 $106,004 $101,531740-75938,426 37,716 36,135720-73929,825 29,430 28,479700-71920,049 19,737 19,295680-69913,381 13,324 13,138<=6795,295 5,097 4,923Total$214,653 $211,308 $203,501 Primary RIF by FICOAs of June 30, 2025 March 31, 2025 June 30, 2024 (In Millions)>= 760$28,596 $28,117 $26,692740-75910,342 10,132 9,624720-7398,086 7,966 7,634700-7195,483 5,384 5,217680-6993,635 3,610 3,530<=679 1,354 1,306 1,259Total$57,496 $56,515 $53,956 Primary IIF by LTVAs of June 30, 2025 March 31, 2025 June 30, 2024 (In Millions)95.01% and above$25,052 $24,167 $21,55690.01% to 95.00%106,017 104,312 99,35585.01% to 90.00%65,109 64,298 62,46185.00% and below18,475 18,531 20,129Total$214,653 $211,308 $203,501 Primary RIF by LTVAs of June 30, 2025 March 31, 2025 June 30, 2024 (In Millions)95.01% and above$7,843 $7,546 $6,69890.01% to 95.00%31,302 30,804 29,35485.01% to 90.00%16,152 15,957 15,50085.00% and below2,199 2,208 2,404Total$57,496 $56,515 $53,956 Primary RIF by Loan TypeAs of June 30, 2025 March 31, 2025 June 30, 2024Fixed98 % 98 % 98 %Adjustable rate mortgages: Less than five years— — —Five years and longer2 2 2Total 100 % 100 % 100 % The table below presents a summary of the change in total primary IIF for the dates and periods indicated. Primary IIFAs of and for the three months ended June 30, 2025 March 31, 2025 June 30, 2024 (In Millions)IIF, beginning of period$211,308 $210,183 $199,373NIW12,464 9,221 12,503Cancellations, principal repayments and other reductions(9,119) (8,096) (8,375)IIF, end of period$214,653 $211,308 $203,501 Geographic Dispersion The following table shows the distribution by state of our primary RIF as of the periods indicated. Top 10 primary RIF by stateAs of June 30, 2025 March 31, 2025 June 30, 2024California10.1 % 10.1 % 10.1 %Texas8.4 8.5 8.8Florida7.2 7.3 7.5Georgia4.0 4.1 4.2Illinois3.9 3.8 3.9Washington3.8 3.9 3.9Virginia3.7 3.7 3.8Pennsylvania3.5 3.4 3.4Ohio3.4 3.3 3.1North Carolina3.2 3.2 3.0Total51.2 % 51.3 % 51.7 % The table below presents selected primary portfolio statistics, by book year, as of June 30, 2025. As of June 30, 2025 Book YearOriginal Insurance Written Remaining Insurance in Force % Remaining of Original Insurance Policies Ever in Force Number of Policies in Force Number of Loans in Default # of Claims Paid Incurred Loss Ratio (Inception to Date) (1) Cumulative Default Rate (2) Current default rate (3) ($ Values In Millions) 2016 and prior$37,222 $1,996 5 % 151,615 10,722 210 403 2.2 % 0.4 % 2.0 %201721,582 1,667 8 % 85,897 9,541 240 189 1.9 % 0.5 % 2.5 %201827,295 2,191 8 % 104,043 11,969 350 197 2.4 % 0.5 % 2.9 %201945,141 5,612 12 % 148,423 25,180 435 109 2.0 % 0.4 % 1.7 %202062,702 18,847 30 % 186,174 67,081 527 59 1.3 % 0.3 % 0.8 %202185,574 45,409 53 % 257,972 153,220 1,597 112 3.2 % 0.7 % 1.0 %202258,734 44,598 76 % 163,281 131,612 2,022 148 16.5 % 1.3 % 1.5 %202340,473 32,013 79 % 111,994 93,357 870 33 14.2 % 0.8 % 0.9 %202446,044 41,100 89 % 120,747 111,063 449 1 10.1 % 0.4 % 0.4 %202521,685 21,220 98 % 55,805 54,893 9 — 1.5 % — % — %Total$446,452 $214,653 1,385,951 668,638 6,709 1,251 (1) Calculated as total claims incurred (paid and reserved) divided by cumulative premiums earned, net of reinsurance.(2) Calculated as the sum of the number of claims paid ever to date and number of loans in default divided by policies ever in force.(3) Calculated as the number of loans in default divided by number of policies in force. The following table provides a reconciliation of the beginning and ending reserve balances for insurance claims and claim expenses: For the three months ended June 30, For the six months ended June 30, 2025 2024 2025 2024 (In Thousands)Beginning balance$151,847 $127,182 $152,071 $123,974Less reinsurance recoverables (1)(31,379) (27,880) (32,260) (27,514)Beginning balance, net of reinsurance recoverables120,468 99,302 119,811 96,460 Add claims incurred: Claims and claim expenses incurred: Current year (2)26,797 17,396 61,356 50,372Prior years (3)(13,685) (17,120) (43,766) (46,402)Total claims and claim expenses incurred (4)13,112 276 17,590 3,970 Less claims paid: Claims and claim expenses paid: Current year (2)110 — 110 —Prior years (3)4,393 1,471 8,469 2,323Reinsurance terminations (5)(1,251) — (1,506) —Total claims and claim expenses paid3,252 1,471 7,073 2,323 Reserve at end of period, net of reinsurance recoverables130,328 98,107 130,328 98,107Add reinsurance recoverables (1)32,705 27,336 32,705 27,336Ending balance$163,033 $125,443 $163,033 $125,443 (1) Related to ceded losses recoverable under the QSR Transactions. (2) Related to insured loans with their most recent defaults occurring in the current year. For example, if a loan defaulted in a prior year and subsequently cured and later re-defaulted in the current year, the default would be included in the current year. Amounts are presented net of reinsurance and included $51.5 million attributed to net case reserves and $8.8 million attributed to net IBNR reserves for the six months ended June 30, 2025 and $43.1 million attributed to net case reserves and $6.4 million attributed to net IBNR reserves for the six months ended June 30, 2024.(3) Related to insured loans with defaults occurring in prior years, which have been continuously in default before the start of the current year. Amounts are presented net of reinsurance and included $34.9 million attributed to net case reserves and $8.1 million attributed to net IBNR reserves for the six months ended June 30, 2025 and $39.2 million attributed to net case reserves and $6.3 million attributed to net IBNR reserves for the six months ended June 30, 2024.(4) Excludes aggregate termination fees of $0.3 million for the six months ended June 30, 2025 incurred in connection with the respective amendments of the 2016, 2018 and 2021 QSR Transactions.(5) Represents the settlement of reinsurance recoverables in conjunction with the termination of one reinsurer under the 2016, 2018 and 2021 QSR Transactions by mutual agreement on a cut-off basis with no termination fee. The following table provides a reconciliation of the beginning and ending count of loans in default: For the three months ended June 30, For the six months ended June 30, 2025 2024 2025 2024Beginning default inventory6,859 5,109 6,642 5,099Plus: new defaults2,169 1,728 4,590 3,604Less: cures(2,215) (1,869) (4,309) (3,686)Less: claims paid(93) (59) (188) (101)Less: rescission and claims denied(11) (5) (26) (12)Ending default inventory6,709 4,904 6,709 4,904 The following table provides details of our claims paid, before giving effect to claims ceded under the QSR Transactions, for the periods indicated: For the three months ended June 30, For the six months ended June 30, 2025 2024 2025 2024 ($ Values In Thousands)Number of claims paid (1)93 59 188 101Total amount paid for claims$5,512 $1,877 $10,737 $3,022Average amount paid per claim $59 $32 $57 $30Severity (2)82 % 54 % 75 % 54 % (1) Count includes 16 and 36 claims settled without payment during the three and six months ended June 30, 2025, respectively, and 19 and 35 claims settled without payment during the three and six months ended June 30, 2024, respectively. (2) Severity represents the total amount of claims paid including claim expenses divided by the related RIF on the loan at the time the claim is perfected, and is calculated including claims settled without payment. The following table shows our average reserve per default, before giving effect to reserves ceded under the QSR Transactions, as of the dates indicated: As of June 30,Average reserve per default:2025 2024 (In Thousands)Case (1)$22.3 $23.6IBNR (1)(2)2.0 2.0Total$24.3 $25.6 (1) Defined as the gross reserve per insured loan in default.(2) Amount includes claims adjustment expenses. The following table provides a comparison of the PMIERs available assets and net risk-based required asset amount as reported by NMIC as of the dates indicated: As of June 30, 2025 March 31, 2025 June 30, 2024 (In Thousands)Available assets$3,244,517 $3,230,653 $2,827,721Net risk-based required assets1,926,517 1,867,414 1,651,569

NMI Holdings, Inc. Reports Second Quarter 2025 Financial Results

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