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NMI Holdings' Strong IIF Growth: Can It Drive Future Earnings?
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Key Takeaways
NMI Holdings' primary IIF rose 5.8% to $227.1 billion, extending its portfolio growth momentum.
NMIH's NIW jumped 29% to $16.1 billion, supporting future IIF and premium growth.
NMIH's loss ratio improved to 8.3%, while adjusted EPS increased 14% to $1.38.
NMI Holdings Inc. (NMIH - Free Report) continues to expand its mortgage insurance portfolio, creating a larger base for future premium revenues. The company stated that its insurance in force (IIF) has increased 49% over the past four years, compared with 13% growth for the broader private mortgage insurance industry. This highlights the company’s ability to expand its insured portfolio at a faster pace than the broader market.
The momentum continued in the second quarter of 2026. Primary IIF increased 5.8% year over year to $227.1 billion, while new insurance written (NIW) rose 29% to $16.1 billion. The larger insurance portfolio helped drive net premiums earned to $157.5 million, up 5.7% from a year earlier.
IIF is an important growth metric for a mortgage insurer because it represents the mortgage loans currently covered by its policies. As NMIH adds new business, a growing IIF can provide a bigger base for generating premiums over time, assuming policies remain in force. Strong NIW is also important because it continually adds new policies to the portfolio, supporting future IIF growth.
What makes the growth more meaningful is that underwriting performance remains strong. NMIH’s second-quarter 2026 loss ratio improved to 8.3% from 9%, while adjusted EPS increased 14% year over year to $1.38.
The key question is whether NMIH can maintain its above-industry portfolio growth as mortgage originations, housing affordability and credit conditions evolve. If NMIH can sustain strong NIW while maintaining disciplined underwriting, continued IIF growth should provide a larger premium base and support earnings over time.
What About Its Peers?
MGIC Investment Corporation (MTG - Free Report) second-quarter 2026 NIW rose 8.5% year over year to $17.8 billion, while IIF increased 2.6% to $304.8 billion. Growth was driven by a larger mortgage origination market and seasonal strength in purchase activity. Continued demand for mortgage insurance is supporting new business and gradually expanding its insured portfolio.
Radian Group Inc. (RDN - Free Report) continues to benefit from growth in its mortgage insurance business. Its primary IIF reached approximately $284 billion in the second quarter, up around 3% year over year, supported by new insurance written and purchase-market activity. Demand for low-down-payment mortgages remains a key driver, while housing affordability and mortgage rates continue to influence origination volumes.
NMIH’s Price Performance
Shares of NMI Holdings have gained 14.9% in the past three months, outperforming the industry’s growth of 5%.
Image Source: Zacks Investment Research
NMIH’s Valuation
Shares of NMIH are trading at a discount compared with the industry. Its trailing 12-month price-to-book value of 1.23X is lower than the industry average of 1.45X. The stock has a Value Score of B.
Image Source: Zacks Investment Research
NMIH’s Encouraging Growth Projection
The Zacks Consensus Estimate for NMI Holdings’ 2026 earnings per share (EPS) indicates a year-over-year increase of 6.7%.
The consensus estimate for 2026 revenues is pegged at $752.4 million, implying a year-over-year improvement of 6.5%.
The consensus estimate for 2027 EPS and revenues indicates an increase of 4.7% and 2.3%, respectively, from the corresponding 2026 estimates.
The Zacks Consensus Estimate for both 2026 and 2027 earnings has moved up 0.4%, respectively, over the past 30 days.
View the Zacks #1 Rank List
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NMI Holdings' Strong IIF Growth: Can It Drive Future Earnings?
Key Takeaways
NMI Holdings Inc. (NMIH - Free Report) continues to expand its mortgage insurance portfolio, creating a larger base for future premium revenues. The company stated that its insurance in force (IIF) has increased 49% over the past four years, compared with 13% growth for the broader private mortgage insurance industry. This highlights the company’s ability to expand its insured portfolio at a faster pace than the broader market.
The momentum continued in the second quarter of 2026. Primary IIF increased 5.8% year over year to $227.1 billion, while new insurance written (NIW) rose 29% to $16.1 billion. The larger insurance portfolio helped drive net premiums earned to $157.5 million, up 5.7% from a year earlier.
IIF is an important growth metric for a mortgage insurer because it represents the mortgage loans currently covered by its policies. As NMIH adds new business, a growing IIF can provide a bigger base for generating premiums over time, assuming policies remain in force. Strong NIW is also important because it continually adds new policies to the portfolio, supporting future IIF growth.
What makes the growth more meaningful is that underwriting performance remains strong. NMIH’s second-quarter 2026 loss ratio improved to 8.3% from 9%, while adjusted EPS increased 14% year over year to $1.38.
The key question is whether NMIH can maintain its above-industry portfolio growth as mortgage originations, housing affordability and credit conditions evolve. If NMIH can sustain strong NIW while maintaining disciplined underwriting, continued IIF growth should provide a larger premium base and support earnings over time.
What About Its Peers?
MGIC Investment Corporation (MTG - Free Report) second-quarter 2026 NIW rose 8.5% year over year to $17.8 billion, while IIF increased 2.6% to $304.8 billion. Growth was driven by a larger mortgage origination market and seasonal strength in purchase activity. Continued demand for mortgage insurance is supporting new business and gradually expanding its insured portfolio.
Radian Group Inc. (RDN - Free Report) continues to benefit from growth in its mortgage insurance business. Its primary IIF reached approximately $284 billion in the second quarter, up around 3% year over year, supported by new insurance written and purchase-market activity. Demand for low-down-payment mortgages remains a key driver, while housing affordability and mortgage rates continue to influence origination volumes.
NMIH’s Price Performance
Shares of NMI Holdings have gained 14.9% in the past three months, outperforming the industry’s growth of 5%.
Image Source: Zacks Investment Research
NMIH’s Valuation
Shares of NMIH are trading at a discount compared with the industry. Its trailing 12-month price-to-book value of 1.23X is lower than the industry average of 1.45X. The stock has a Value Score of B.
Image Source: Zacks Investment Research
NMIH’s Encouraging Growth Projection
The Zacks Consensus Estimate for NMI Holdings’ 2026 earnings per share (EPS) indicates a year-over-year increase of 6.7%.
The consensus estimate for 2026 revenues is pegged at $752.4 million, implying a year-over-year improvement of 6.5%.
The consensus estimate for 2027 EPS and revenues indicates an increase of 4.7% and 2.3%, respectively, from the corresponding 2026 estimates.
The Zacks Consensus Estimate for both 2026 and 2027 earnings has moved up 0.4%, respectively, over the past 30 days.
Image Source: Zacks Investment Research
NMIH stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.