NMI Holdings’ fourth quarter results reflected steady execution and consistency, with management attributing performance to expansion of its insured mortgage portfolio and disciplined expense control. CEO Adam Pollitzer highlighted strong new insurance written (NIW) volume and record primary insurance in force, which he described as “the fastest-growing, highest-quality, and best-performing in the MI industry.” Management also cited the success of reinsurance programs and ongoing customer development as key elements supporting the quarter’s results.
Is now the time to buy NMIH? Find out in our full research report (it’s free for active Edge members).
NMI Holdings (NMIH) Q4 CY2025 Highlights:
- Revenue: $180.7 million vs analyst estimates of $181.1 million (8.5% year-on-year growth, in line)
- Adjusted EPS: $1.20 vs analyst estimates of $1.19 (in line)
- Adjusted Operating Income: $128.3 million (71% margin, 8.7% year-on-year growth)
- Operating Margin: 71%, in line with the same quarter last year
- Market Capitalization: $3.01 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From NMI Holdings’s Q4 Earnings Call
- Bose George (KBW): Asked about the competitive landscape and premium yield outlook. CEO Adam Pollitzer described a balanced pricing environment, while CFO Aurora Swithenbank said core premium yields should remain stable with some variability due to claims expenses.
- Bose George (KBW): Inquired about potential FHA premium reductions. Pollitzer responded that constraints facing the FHA make further premium cuts unlikely, and emphasized the private MI industry’s readiness to support borrowers.
- Terry Ma (Barclays): Sought insight on consumer health and regional credit trends. Swithenbank noted continued macro resilience but highlighted risks such as high consumer debt and uneven confidence; no specific regional credit stress was identified.
- Rick Shane (JPMorgan): Probed the impact of persistency shifts on credit exposure. Pollitzer explained that newer policy cohorts may see normalization in credit performance, but increased refinancing could refresh the portfolio and delay loss emergence.
- Mark Hughes (Truist): Asked about the duration and economics of new reinsurance treaties. Swithenbank indicated these agreements extend forward coverage through 2028 with improved terms, reflecting strong market conditions.
Catalysts in Upcoming Quarters
In coming quarters, the StockStory team will be watching (1) whether NMI Holdings can sustain growth in new insurance written and further expand its lender base, (2) the stability of premium yields and expense ratios amid changing market dynamics, and (3) management’s ability to navigate potential macro and policy headwinds, including regulatory developments and persistency trends. The evolution of credit performance in newer vintages and continued success in reinsurance programs will also be key markers of execution.
NMI Holdings currently trades at $39.65, down from $40.19 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).
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