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NMI Holdings Q2 Earnings & Revenues Top Estimates on Higher Premiums
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Key Takeaways
NMIH posted Q2 EPS of $1.22 and revenues of $173.8M, with both beating estimates and rising year over year.
Higher premiums and 20.6% investment income growth fueled revenues despite a 140 bps drop in persistency.
Insurance claims rose to $13.5M and loss ratio worsened 600 bps, though book value per share rose 16%.
NMI Holdings (NMIH - Free Report) reported second-quarter 2025 operating net income per share of $1.22, which beat the Zacks Consensus Estimate by 5.2%. The bottom line increased 1.7% year over year.
The quarterly results reflected higher premiums, driven by a high-quality insured portfolio and net investment income but lower persistency.
Operational Update
NMI Holdings’ total operating revenues of $173.8 million increased 7.2% year over year on higher net premiums earned (up 5.6%) and net investment income (up 20.6%). Revenues beat the Zacks Consensus Estimate by 1.9%.
NMI Holdings Inc Price, Consensus and EPS Surprise
Primary insurance in force increased 5.5% to $214.7 billion.
Annual persistency was 84.1%, down 140 basis points (bps) year over year.
New insurance written was $12.5 billion, flat year over year.
Underwriting and operating expenses totaled $29.5 million, up 4% year over year.
Insurance claims and claim expenses were $13.5 million versus $0.3 million in the year-ago quarter.
The loss ratio of 9% deteriorated 600 bps year over year. The expense ratio improved 30 bps year over year, while the adjusted combined ratio of 23.2 deteriorated 580 bps year over year.
Financial Update
Book value per share, a measure of net worth, was up 16% year over year to $32.08 as of June 30, 2025.
NMI Holdings had $84 million in cash and cash equivalents, which increased 54.7% from 2024 end.
The debt balance of $416 million increased 0.1% from the end of 2024.
The annualized adjusted return on equity was 16.3%, which contracted 310 bps year over year.
Total PMIERs available assets were $3.2 billion and net risk-based required assets were $1.9 billion.
The Travelers Companies (TRV - Free Report) reported second-quarter 2025 core income of $6.51 per share, which beat the Zacks Consensus Estimate by 83.8%. Total revenues increased 6.7% from the year-ago quarter to $12.1 billion, primarily driven by higher premiums, improved net investment income, higher fee income and other revenues. The top-line figure, however, missed the Zacks Consensus Estimate by 0.7%.
Net written premiums increased 4% year over year to a record $11.5 billion, driven by strong growth across all three segments. The figure was higher than our estimate of $10.9 billion.
Travelers witnessed an underwriting profit of $1 billion against a loss of $65 million incurred in the year-ago quarter. The consolidated underlying combined ratio of 84.7 improved 300 bps year over year. The combined ratio improved 990 bps year over year to 90.3 due to lower catastrophe losses, an improvement in the underlying combined ratio and higher net favorable prior year reserve development. The Zacks Consensus Estimate was pegged at 99.
The Progressive Corporation’s (PGR - Free Report) second-quarter 2025 earnings per share of $4.88 beat the Zacks Consensus Estimate by 10.1%. The bottom line increased 84.1% year over year. Net premiums written were $20 billion in the quarter, up 12% from $17.9 billion a year ago.
Net premiums earned grew 18% to $20.3 billion. The reported figure surpassed the Zacks Consensus Estimate of $20.1 billion. Operating revenues increased 19.5% year over year to $42.2 billion, driven by 19% higher net premiums earned, a 29.3% increase in net investment income, an 18.9% rise in fees and a 28% increase in service revenues.
RLI Corp. (RLI - Free Report) reported second-quarter 2025 operating earnings of 84 cents per share, beating the Zacks Consensus Estimate by 12%. The bottom line, however, decreased 2.3% from the prior-year quarter. Operating revenues for the reported quarter were $441 million, up 6.9% year over year, driven by 6% higher net premiums earned and 16% higher net investment income. The top line, however, missed the Zacks Consensus Estimate by 0.5%.
Underwriting income of $62.2 million decreased 11.14% year over year. The combined ratio deteriorated 300 bps year over year to 84.5. The Zacks Consensus Estimate for the metric was pegged at 88, while our estimate was 42.9.
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NMI Holdings Q2 Earnings & Revenues Top Estimates on Higher Premiums
Key Takeaways
NMI Holdings (NMIH - Free Report) reported second-quarter 2025 operating net income per share of $1.22, which beat the Zacks Consensus Estimate by 5.2%. The bottom line increased 1.7% year over year.
The quarterly results reflected higher premiums, driven by a high-quality insured portfolio and net investment income but lower persistency.
Operational Update
NMI Holdings’ total operating revenues of $173.8 million increased 7.2% year over year on higher net premiums earned (up 5.6%) and net investment income (up 20.6%). Revenues beat the Zacks Consensus Estimate by 1.9%.
NMI Holdings Inc Price, Consensus and EPS Surprise
NMI Holdings Inc price-consensus-eps-surprise-chart | NMI Holdings Inc Quote
Primary insurance in force increased 5.5% to $214.7 billion.
Annual persistency was 84.1%, down 140 basis points (bps) year over year.
New insurance written was $12.5 billion, flat year over year.
Underwriting and operating expenses totaled $29.5 million, up 4% year over year.
Insurance claims and claim expenses were $13.5 million versus $0.3 million in the year-ago quarter.
The loss ratio of 9% deteriorated 600 bps year over year. The expense ratio improved 30 bps year over year, while the adjusted combined ratio of 23.2 deteriorated 580 bps year over year.
Financial Update
Book value per share, a measure of net worth, was up 16% year over year to $32.08 as of June 30, 2025.
NMI Holdings had $84 million in cash and cash equivalents, which increased 54.7% from 2024 end.
The debt balance of $416 million increased 0.1% from the end of 2024.
The annualized adjusted return on equity was 16.3%, which contracted 310 bps year over year.
Total PMIERs available assets were $3.2 billion and net risk-based required assets were $1.9 billion.
Zacks Rank
NMIH currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Insurers
The Travelers Companies (TRV - Free Report) reported second-quarter 2025 core income of $6.51 per share, which beat the Zacks Consensus Estimate by 83.8%. Total revenues increased 6.7% from the year-ago quarter to $12.1 billion, primarily driven by higher premiums, improved net investment income, higher fee income and other revenues. The top-line figure, however, missed the Zacks Consensus Estimate by 0.7%.
Net written premiums increased 4% year over year to a record $11.5 billion, driven by strong growth across all three segments. The figure was higher than our estimate of $10.9 billion.
Travelers witnessed an underwriting profit of $1 billion against a loss of $65 million incurred in the year-ago quarter. The consolidated underlying combined ratio of 84.7 improved 300 bps year over year. The combined ratio improved 990 bps year over year to 90.3 due to lower catastrophe losses, an improvement in the underlying combined ratio and higher net favorable prior year reserve development. The Zacks Consensus Estimate was pegged at 99.
The Progressive Corporation’s (PGR - Free Report) second-quarter 2025 earnings per share of $4.88 beat the Zacks Consensus Estimate by 10.1%. The bottom line increased 84.1% year over year. Net premiums written were $20 billion in the quarter, up 12% from $17.9 billion a year ago.
Net premiums earned grew 18% to $20.3 billion. The reported figure surpassed the Zacks Consensus Estimate of $20.1 billion. Operating revenues increased 19.5% year over year to $42.2 billion, driven by 19% higher net premiums earned, a 29.3% increase in net investment income, an 18.9% rise in fees and a 28% increase in service revenues.
RLI Corp. (RLI - Free Report) reported second-quarter 2025 operating earnings of 84 cents per share, beating the Zacks Consensus Estimate by 12%. The bottom line, however, decreased 2.3% from the prior-year quarter. Operating revenues for the reported quarter were $441 million, up 6.9% year over year, driven by 6% higher net premiums earned and 16% higher net investment income. The top line, however, missed the Zacks Consensus Estimate by 0.5%.
Underwriting income of $62.2 million decreased 11.14% year over year. The combined ratio deteriorated 300 bps year over year to 84.5. The Zacks Consensus Estimate for the metric was pegged at 88, while our estimate was 42.9.