NMI Holdings NMIH reported first-quarter 2025 operating net income per share of $1.28, which beat the Zacks Consensus Estimate by 16.4%. The bottom line increased 18.5% year over year. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

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 $173.3 million increased 10.9% year over year on higher net premiums earned (up 9.3%) and net investment income (up 21.9%). Revenues beat the Zacks Consensus Estimate by 1.7%.

Primary insurance in force increased 6% to $211.3 billion.

Annual persistency was 84.3%, down 150 basis points (bps) year over year.

New insurance written was $9.2 billion, down 2% year over year.

Underwriting and operating expenses totaled $30.2 million, up 1% year over year.

Insurance claims and claim expenses were $4.5 million, up 21.2% year over year. 

The loss ratio of 3% expanded 30 bps year over year. The expense ratio improved 160 bps year over year while the adjusted combined ratio of 23.2 improved 130 bps year over year.

Financial Update

Book value per share, a measure of net worth, was up 16.8% year over year to $30.85 as of March 31, 2025. 

NMI Holdings had $74.2 million in cash and cash equivalents, which increased 36.6% from 2024 end. 

The debt balance of $416 million increased 0.1% from the end of 2024. 

The annualized adjusted return on equity was 18.1%, which contracted 10 bps year over year. 

Total PMIERs available assets were $3.2 billion. Net risk-based required assets totaled $1.9 billion at the end of first-quarter 2025.

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

The Travelers Companies TRV reported first-quarter 2025 core income of $1.91 per share, which beat the Zacks Consensus Estimate of 69 cents. The bottom line, however, declined 29.3% year over year. Travelers’ total revenues increased 6.1% from the year-ago quarter to $11.9 billion, primarily driven by higher premiums, net investment income and other revenues. The top-line figure, however, missed the Zacks Consensus Estimate of $12.1 billion.
 
Net written premiums increased 3% year over year to a record $10.5 billion, driven by strong growth across all three segments. Our estimate was $10.2 billion. Underlying underwriting income of $1.6 billion improved more than 30% year over year, driven by strong net earned premiums. The consolidated underlying combined ratio of 84.8 improved 290 bps year over year. The combined ratio deteriorated 860 bps year over year to 102.5 due to higher catastrophe losses. The Zacks Consensus Estimate was pegged at 105.

The Progressive Corporation’s PGR first-quarter 2025 earnings per share of $4.65 missed the Zacks Consensus Estimate of $4.72. The bottom line, however, increased 24.6% year over year. Operating revenues increased 20.7% year over year to $20.6 billion, driven by 20.2% higher net premiums earned, a 31.7% increase in net investment income, a 21.6% rise in fees and 32.1% higher service revenues. The top line beat the Zacks Consensus Estimate of $20.4 billion.

Net premiums earned grew 20% to $19.4 billion. The reported figure surpassed the Zacks Consensus Estimate of $19.2 billion. Combined ratio — the percentage of premiums paid out as claims and expenses — improved 10 bps from the prior-year quarter’s level to 86.

W.R. Berkley Corporation’s WRB first-quarter 2025 operating income of $1.01 per share matched the Zacks Consensus Estimate. The bottom line, however, declined 2.9% year over year. The insurer suffered due to higher catastrophe losses. Operating revenues were $3.5 billion, up 9.3% year over year, on the back of higher net premiums earned as well as improved net investment income, higher insurance service fees and other income. The top line beat the consensus estimate by 2.2%.

W.R. Berkley’s net premiums written were $3.1 billion, up 9.9% year over year. The figure was higher than our estimate of $3 billion. Catastrophe losses of $111.1 million in the quarter were wider than the $30 million incurred in the year-ago quarter. The consolidated combined ratio (a measure of underwriting profitability) deteriorated 210 bps year over year to 90.9. The Zacks Consensus Estimate was 91.

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