We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
NMI Holdings Q1 Earnings, Revenues Top, Insurance in Force Rises Y/Y
Read MoreHide Full Article
Key Takeaways
NMIH Q1 operating EPS was $1.28, beating consensus by 4.9% while staying flat Y/Y.
NMIH revenues rose 5.8% to $183M on higher premiums and a 21% jump in net investment income.
NMIH claims surged to $20.6M, pushing loss and combined ratios higher despite a better expense ratio.
NMI Holdings (NMIH - Free Report) reported first-quarter 2026 operating net income per share of $1.28, which beat the Zacks Consensus Estimate by 4.9%. The bottom line remained flat year over year.
The quarterly results reflected higher premiums earned, improved net investment income and consistent growth in the high-quality insured portfolio. These were offset by lower persistency.
NMI Holdings Inc Price, Consensus and EPS Surprise
NMI Holdings’ total operating revenues of $183 million increased 5.8% year over year on higher net premiums earned (up 4%) and net investment income (up 21%). Revenues beat the Zacks Consensus Estimate by 0.4%.
Primary insurance in force increased 5.2% year over year to $222.3 billion. Our estimate was $222.1 billion while the consensus estimate was $222.2 billion.
Annual persistency was 82.2%, down 210 basis points (bps) year over year.
New insurance written was $12.3 billion, up 33% year over year, reflecting strong business production.
Underwriting and operating expenses totaled $30.6 million, up 1.5% year over year.
Insurance claims and claim expenses were $20.6 million, which surged more than fourfold year over year.
The loss ratio was 13.3, which deteriorated 1030 bps. The adjusted expense ratio of 19.3 improved 400 bps year over year, while the adjusted combined ratio of 33.1 deteriorated 990 bps.
Financial Update
Book value per share, a measure of net worth, was up 16.6% year over year to $34.57 as of March 31, 2026.
NMI Holdings had $70.7 million in cash and cash equivalents, up 60.8% from the 2025 end level.
The debt balance of $417.5 million increased 0.1% from the end of 2025.
The annualized adjusted return on equity was 15.2%, which contracted 290 bps year over year. Total PMIERs available assets were $3.6 billion.
Net risk-based required assets totaled $2.2 billion at the end of first-quarter 2026.
Selective Insurance Group (SIGI - Free Report) reported first-quarter 2026 operating income of $1.69 per share, which missed the Zacks Consensus Estimate by 2.3%. The bottom line decreased 11% year over year.
Operating revenues of $1.4 billion increased 6.4% from the year-ago quarter’s level, driven primarily by higher net premiums earned and net investment income. The top line missed the Zacks Consensus Estimate by 0.5%. Net premiums written decreased 1% to $1.3 billion. The figure was on par with our estimate.
W.R. Berkley Corporation (WRB - Free Report) reported first-quarter 2026 operating income of $1.30 per share, which beat the Zacks Consensus Estimate by 15%. The bottom line increased 28.7% year over year.
Total revenues were $3.7 billion, up 5% year over year, driven by higher net premiums earned, improved net investment income, higher revenues from non-insurance businesses and increased other income. The top line missed the consensus estimate by 0.28%. W.R. Berkley’s net premiums written were about $3.2 billion, up 1.3% year over year. The figure beat our estimate as well as the Zacks Consensus Estimate of $3.18 billion.
Kinsale Capital Group, Inc. (KNSL - Free Report) delivered first-quarter 2026 net operating earnings of $5.11 per share, which outpaced the Zacks Consensus Estimate by 8.7%. The bottom line increased 37.7% year over year. Operating revenues increased 10.2% year over year to $467 million, which beat the Zacks Consensus Estimate by 0.1%.
Kinsale Capital’s underwriting income was $94.5 million, up 40% year over year. The combined ratio improved 470 bps year over year to 77.4 compared with the Zacks Consensus Estimate of 79.1. The loss ratio improved 580 bps to 56.3, reflecting lower catastrophe losses and favorable reserve development. The expense ratio deteriorated 110 bps year over year to 21.1.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Zacks
NMI Holdings Q1 Earnings, Revenues Top, Insurance in Force Rises Y/Y
Key Takeaways
NMI Holdings (NMIH - Free Report) reported first-quarter 2026 operating net income per share of $1.28, which beat the Zacks Consensus Estimate by 4.9%. The bottom line remained flat year over year.
The quarterly results reflected higher premiums earned, improved net investment income and consistent growth in the high-quality insured portfolio. These were offset by lower persistency.
NMI Holdings Inc Price, Consensus and EPS Surprise
NMI Holdings Inc price-consensus-eps-surprise-chart | NMI Holdings Inc Quote
Operational Update
NMI Holdings’ total operating revenues of $183 million increased 5.8% year over year on higher net premiums earned (up 4%) and net investment income (up 21%). Revenues beat the Zacks Consensus Estimate by 0.4%.
Primary insurance in force increased 5.2% year over year to $222.3 billion. Our estimate was $222.1 billion while the consensus estimate was $222.2 billion.
Annual persistency was 82.2%, down 210 basis points (bps) year over year.
New insurance written was $12.3 billion, up 33% year over year, reflecting strong business production.
Underwriting and operating expenses totaled $30.6 million, up 1.5% year over year.
Insurance claims and claim expenses were $20.6 million, which surged more than fourfold year over year.
The loss ratio was 13.3, which deteriorated 1030 bps. The adjusted expense ratio of 19.3 improved 400 bps year over year, while the adjusted combined ratio of 33.1 deteriorated 990 bps.
Financial Update
Book value per share, a measure of net worth, was up 16.6% year over year to $34.57 as of March 31, 2026.
NMI Holdings had $70.7 million in cash and cash equivalents, up 60.8% from the 2025 end level.
The debt balance of $417.5 million increased 0.1% from the end of 2025.
The annualized adjusted return on equity was 15.2%, which contracted 290 bps year over year. Total PMIERs available assets were $3.6 billion.
Net risk-based required assets totaled $2.2 billion at the end of first-quarter 2026.
Zacks Rank
NMIH currently carries 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
Selective Insurance Group (SIGI - Free Report) reported first-quarter 2026 operating income of $1.69 per share, which missed the Zacks Consensus Estimate by 2.3%. The bottom line decreased 11% year over year.
Operating revenues of $1.4 billion increased 6.4% from the year-ago quarter’s level, driven primarily by higher net premiums earned and net investment income. The top line missed the Zacks Consensus Estimate by 0.5%. Net premiums written decreased 1% to $1.3 billion. The figure was on par with our estimate.
W.R. Berkley Corporation (WRB - Free Report) reported first-quarter 2026 operating income of $1.30 per share, which beat the Zacks Consensus Estimate by 15%. The bottom line increased 28.7% year over year.
Total revenues were $3.7 billion, up 5% year over year, driven by higher net premiums earned, improved net investment income, higher revenues from non-insurance businesses and increased other income. The top line missed the consensus estimate by 0.28%. W.R. Berkley’s net premiums written were about $3.2 billion, up 1.3% year over year. The figure beat our estimate as well as the Zacks Consensus Estimate of $3.18 billion.
Kinsale Capital Group, Inc. (KNSL - Free Report) delivered first-quarter 2026 net operating earnings of $5.11 per share, which outpaced the Zacks Consensus Estimate by 8.7%. The bottom line increased 37.7% year over year. Operating revenues increased 10.2% year over year to $467 million, which beat the Zacks Consensus Estimate by 0.1%.
Kinsale Capital’s underwriting income was $94.5 million, up 40% year over year. The combined ratio improved 470 bps year over year to 77.4 compared with the Zacks Consensus Estimate of 79.1. The loss ratio improved 580 bps to 56.3, reflecting lower catastrophe losses and favorable reserve development. The expense ratio deteriorated 110 bps year over year to 21.1.