NMI (NMIH) investor relations material

Executive summary

• Net income for Q2 2025 was $96.2M ($1.21 per diluted share), up 4% year-over-year, with adjusted net income of $96.5M ($1.22 per diluted share).

• Primary insurance-in-force reached $214.7B, up 2% sequentially and 5% year-over-year, with $12.5B of new insurance written.

• Persistency rate remained high at 84.1%, reflecting a slowdown in mortgage refinancing.

• Management highlighted strong operating performance, portfolio growth, and robust balance sheet.

• The company repurchased 1.3M shares for $49.5M in H1 2025, with $281M of repurchase authority remaining.

Financial highlights

• Total revenue reached $173.8M in Q2, up from $173.2M in Q1 and $162.1M year-over-year.

• Net premiums earned were $149.1M, up 6% year-over-year; net investment income grew 21% to $24.9M.

• Underwriting and operating expenses were $29.5M (expense ratio 19.8%), and insurance claims and claim expenses rose to $13.4M (loss ratio 9.0%).

• Book value per share (excluding unrealized gains/losses) was $32.08, up 4% sequentially and 16% year-over-year.

• Shareholders' equity at quarter end was $2.4B.

Outlook and guidance

• Management expects macroeconomic headwinds, including inflation and elevated interest rates, to impact the housing and mortgage insurance markets.

• Persistency rates are anticipated to remain high due to limited refinancing activity.

• The company continues to focus on disciplined risk selection, pricing, and capital management to support long-term growth.

• Expect to maintain disciplined capital return, with share repurchases likely to continue at ~$25M per quarter, subject to market conditions.

• No significant impact expected from proposed regulatory changes, including FHFA's elimination of Equitable Housing Finance Plans.