# NMI Holdings, Inc. (NMIH) Q2 2025 Financial Results Summary
**Release Date:** July 29, 2025
NMI Holdings, Inc. (Nasdaq: NMIH) reported its financial results for the second quarter of 2025, revealing a strong performance despite a slight dip in net income when compared to both the previous quarter and the same quarter from the previous year. Below are the key highlights from the financial report:
### Financial Highlights
– **Net Income:**
– Q2 2025: $96.2 million ($1.21 per diluted share)
– Q1 2025: $102.6 million ($1.28 per diluted share)
– Q2 2024: $92.1 million ($1.13 per diluted share)
– **Year-over-Year Growth:** Up 4% compared to Q2 2024.
– **Adjusted Net Income:**
– Q2 2025: $96.5 million ($1.22 per diluted share)
– Q1 2025: $102.5 million ($1.28 per diluted share)
– Q2 2024: $97.6 million ($1.20 per diluted share)
– **Year-over-Year Change:** Down 1% compared to Q2 2024.
– **Primary Insurance-in-Force (IIF):**
– Q2 2025: $214.7 billion
– Q1 2025: $211.3 billion
– Q2 2024: $203.5 billion
– **Year-over-Year Growth:** Up 5% compared to Q2 2024.
– **Net Premiums Earned:**
– Q2 2025: $149.1 million
– Q1 2025: $149.4 million
– Q2 2024: $141.2 million
– **Year-over-Year Growth:** Up 6% compared to Q2 2024.
– **Total Revenue:**
– Q2 2025: $173.8 million
– Q1 2025: $173.2 million
– Q2 2024: $162.1 million
– **Year-over-Year Growth:** Up 7% compared to Q2 2024.
– **Insurance Claims and Claim Expenses:**
– Q2 2025: $13.4 million
– Q1 2025: $4.5 million
– Q2 2024: $0.3 million
– **Year-over-Year Change:** Significant increase, reflecting a loss ratio of 9.0% compared to 0.2% in Q2 2024.
– **Underwriting and Operating Expenses:**
– Q2 2025: $29.5 million
– Q1 2025: $30.2 million
– Q2 2024: $28.3 million
– **Year-over-Year Change:** Up 4% compared to Q2 2024.
– **Return on Equity (ROE):**
– Q2 2025: 16.2%
– Q1 2025: 18.1%
– Q2 2024: 18.3%
– **Year-over-Year Change:** Down 2.1 percentage points compared to Q2 2024.
### Shareholder Metrics
– **Book Value Per Share:**
– Q2 2025: $31.14
– Q1 2025: $29.65
– Q2 2024: $25.65
– **Year-over-Year Growth:** Up 22% compared to Q2 2024.
– **Book Value Per Share (Excluding Unrealized Gains):**
– Q2 2025: $32.08
– Q1 2025: $30.85
– Q2 2024: $27.54
– **Year-over-Year Growth:** Up 16% compared to Q2 2024.
### Strategic Initiatives
– NMI Holdings continues to build its high-quality insured portfolio, which contributed to its strong performance despite unfavorable claims expenses.
– The company’s management remains optimistic about growth, with a focus on maintaining a robust balance sheet and enhancing shareholder value.
### Additional Financial Actions
– **Dividend Declaration:** There are no indications of a quarterly dividend being declared in this report.
– **Share Repurchase:** No mention of share repurchase programs was found in the provided text.
### Conclusion
NMI Holdings, Inc. showcased a solid financial performance in Q2 2025, with notable increases in revenue and insurance-in-force, despite experiencing a slight dip in net income. The company remains committed to delivering value and growth for its shareholders as it navigates a changing mortgage insurance landscape.
### Consolidated Statements of Operations (In Thousands)
| Revenues | For the three months ended | For the six months ended |
|---|---|---|
| June 30, 2025 | June 30, 2024 | |
| Net premiums earned | $149,066 | $298,432 |
| Net investment income | 24,949 | 48,635 |
| Net realized investment losses | -400 | -376 |
| Other revenues | 164 | 334 |
| Total revenues | 173,779 | 347,025 |
| Expenses | ||
| Insurance claims and claim expenses | 13,445 | 17,923 |
| Underwriting and operating expenses | 29,508 | 59,683 |
| Service expenses | 110 | 226 |
| Interest expense | 7,115 | 14,221 |
| Total expenses | 50,178 | 92,053 |
| Income before income taxes | 123,601 | 254,972 |
| Income tax expense | 27,450 | 56,262 |
| Net income | $96,151 | $198,710 |
| Earnings per share | ||
| Basic | $1.23 | $2.54 |
| Diluted | $1.21 | $2.50 |
| Weighted average common shares outstanding | ||
| Basic | 77,987 | 78,197 |
| Diluted | 79,256 | 79,557 |
| Loss ratio | 9.0% | 6.0% |
| Expense ratio | 19.8% | 20.0% |
| Combined ratio | 28.8% | 26.0% |
### Consolidated Balance Sheets (In Thousands)
| Assets | June 30, 2025 | December 31, 2024 |
|---|---|---|
| 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 equivalents | 84,013 | 54,308 |
| Premiums receivable, net | 83,647 | 82,804 |
| Accrued investment income | 24,376 | 22,386 |
| Deferred policy acquisition costs, net | 64,148 | 64,327 |
| Software and equipment, net | 23,793 | 25,681 |
| Intangible assets and goodwill | 3,634 | 3,634 |
| Reinsurance recoverable | 32,705 | 32,260 |
| Prepaid federal income taxes | 322,175 | 322,175 |
| Other assets | 23,477 | 18,857 |
| Total assets | $3,591,085 | $3,349,973 |
| Liabilities | ||
| Debt | $416,073 | $415,146 |
| Unearned premiums | 54,159 | 65,217 |
| Accounts payable and accrued expenses | 86,904 | 103,164 |
| Reserve for insurance claims and claim expenses | 163,033 | 152,071 |
| Deferred tax liability, net | 441,389 | 386,192 |
| Other liabilities | 9,420 | 10,751 |
| Total liabilities | 1,170,978 | 1,132,541 |
| Shareholders’ equity | ||
| Common stock: outstanding as of June 30, 2025 and December 31, 2024, respectively | 884 | 879 |
| Additional paid-in capital | 1,006,058 | 1,004,692 |
| Treasury Stock, at cost: | -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’ equity | 2,420,107 | 2,217,432 |
| Total liabilities and shareholders’ equity | $3,591,085 | $3,349,973 |
