NMI Holdings, Inc. Reports Third Quarter 2026 Financial Results
NMI Holdings, Inc. (NMIH) filed an SEC Form 8-K — Results of Operations and Financial Condition. EXHIBIT 99.1 FOR IMMEDIATE RELEASE NMI Holdings, Inc. Reports Third Quarter 2026 Financial Results EMERYVILLE, Calif., Nov. 5, 2026 -- NMI Holdings, Inc. (Nasdaq: NMIH) today reported net income of $93.5 million, or $1.23 per diluted share, for the third quarter ended September 3
How this was made
The 30-second read
Why it matters
The earnings decline may trigger short‑term selling pressure, but the ongoing share buyback program and rising book value could attract value investors.
Market read
First‑time earnings disclosure for the quarter; provides fresh data for traders and analysts.
What to watch
Improved book value per share and continued growth in insurance-in-force may offset short‑term earnings weakness.
NMI Holdings reported third-quarter net income of $93.5 million, or $1.23 per diluted share, as higher claims expense reduced earnings despite growth in insurance-in-force and investment income.
Primary insurance-in-force, net investment income, total revenue, book value excluding net unrealized gains and losses, and PMIERs available assets increased from the prior-year period, but insurance claims and claim expenses rose to $29.1 million, lifting the loss ratio to 18.7% and reducing net income sequentially and year over year.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Primary insurance-in-force, Q3 2026other | $229.7B | 1 % | 5 % |
| New insurance written, Q3 2026other | $13.6B | (15) % | 4 % |
| Net premiums earned, Q3 2026GAAP | $155.5M | (1) % | 3 % |
| Net investment income, Q3 2026GAAP | $32.2M | 6 % | 20 % |
| Net realized investment losses, Q3 2026GAAP | −$346K | – | – |
| Other revenues, Q3 2026GAAP | $246K | – | – |
| Total revenue, Q3 2026GAAP | $187.6M | – | – |
| Insurance claims and claim expenses, Q3 2026GAAP | $29.1M | 121 % | 57 % |
| Underwriting and operating expenses, Q3 2026GAAP | $30.8M | 1 % | 6 % |
| Service expenses, Q3 2026GAAP | $214K | – | – |
| Interest expense, Q3 2026GAAP | $7.1M | – | – |
| Total expenses, Q3 2026GAAP | $67.2M | – | – |
| Income before income taxes, Q3 2026GAAP | $120.3M | – | – |
| Income tax expense, Q3 2026GAAP | $26.8M | – | – |
| Net income, Q3 2026GAAP | $93.5M | – | – |
| Diluted EPS, Q3 2026GAAP | $1.23 | – | – |
| Adjusted net income, Q3 2026non-GAAP | $93.7M | (12) % | (2) % |
| Adjusted diluted EPS, Q3 2026non-GAAP | $1.23 | (11) % | 1 % |
| Loss ratio, Q3 2026GAAP | 18.7% | – | – |
| Expense ratio, Q3 2026GAAP | 19.8% | – | – |
| Combined ratio, Q3 2026GAAP | 38.5% | – | – |
| Annualized return on equity, Q3 2026GAAP | 13.8% | – | – |
| Annualized adjusted return on equity, Q3 2026non-GAAP | 13.9% | – | – |
| Book value per share, Q3 2026GAAP | $36.13 | – | – |
| Book value per share excluding net unrealized gains and losses, Q3 2026non-GAAP | $38.13 | 3 % | 14 % |
| Total revenue, nine months ended September 30, 2026GAAP | $558.9M | – | – |
| Net income, nine months ended September 30, 2026GAAP | $298.6M | – | – |
| Diluted EPS, nine months ended September 30, 2026GAAP | $3.89 | – | – |
| Adjusted net income, nine months ended September 30, 2026non-GAAP | $299.2M | – | – |
| Adjusted diluted EPS, nine months ended September 30, 2026non-GAAP | $3.90 | – | – |
| Loss ratio, nine months ended September 30, 2026GAAP | 13.5% | – | – |
| Expense ratio, nine months ended September 30, 2026GAAP | 19.6% | – | – |
| Combined ratio, nine months ended September 30, 2026GAAP | 33.1% | – | – |
Capital returns
- Share repurchases totaled 626,383 shares or $27.1 million during the quarter.
- Total repurchase activity was 14.3 million shares or $435 million since inception of the program.
What drove it
- Primary insurance-in-force was $229.7 billion at quarter end, compared to $227.1 billion at the end of the second quarter and $218.4 billion at the end of the third quarter of 2025.
- New insurance written was $13.6 billion in the quarter, including $12,941 million of purchase NIW and $634 million of refinance NIW.
- Net investment income was $32.2 million, compared to $30.3 million in the second quarter and $26.8 million in the third quarter of 2025.
- The weighted average credit score for Q3 NIW was 758 and weighted average LTV was 92.3 %.
- Primary portfolio loans in default were 8,571 and the default rate was 1.23 % at September 30, 2026.
Concerns
- Insurance claims and claim expenses were $29.1 million, compared to $13.1 million in the second quarter and $18.6 million in the third quarter of 2025.
- The loss ratio was 18.7%, compared to 8.3% in the second quarter and 12.3% in the third quarter of 2025.
- New insurance written was $13.6 billion, compared to $16.1 billion in the second quarter.
- Annual persistency was 80.8 %, compared to 81.4 % in the second quarter and 83.9 % in the third quarter of 2025.
- The default rate was 1.23 % at September 30, 2026, compared to 1.16 % at June 30, 2026 and 1.05 % at September 30, 2025.
What to watch
- Insurance claims and claim expenses, loss ratio, and the 8,571 ending default inventory.
- The pace of new insurance written, which was $13.6 billion in Q3 2026 versus $16.1 billion in Q2 2026.
- Primary insurance-in-force growth, cancellations, principal repayments and other reductions, which were $(11,018) million in Q3 2026.
- Net investment income, which was $32.2 million in Q3 2026.
- PMIERs available assets of $3,773,543 thousand relative to net risk-based required assets of $2,181,639 thousand.
Balance sheet and cash flow
- Cash and cash equivalents were $72,326 thousand as of September 30, 2026, compared to $43,937 thousand as of December 31, 2025.
- Fixed maturities, available-for-sale, at fair value were $3,243,464 thousand as of September 30, 2026, compared to $3,137,023 thousand as of December 31, 2025.
- Total assets were $4,002,238 thousand as of September 30, 2026, compared to $3,841,098 thousand as of December 31, 2025.
- Debt was $418,528 thousand as of September 30, 2026, compared to $417,031 thousand as of December 31, 2025.
- Reserve for insurance claims and claim expenses was $234,242 thousand as of September 30, 2026, compared to $196,429 thousand as of December 31, 2025.
- Total shareholders' equity was $2,702,668 thousand as of September 30, 2026, compared to $2,591,986 thousand as of December 31, 2025.
- Total PMIERs available assets were $3.8 billion and net risk-based required assets were $2.2 billion at quarter end.
Analysis
NMI Holdings reported Q3 2026 GAAP net income of $93.5 million, or $1.23 per diluted share, versus $105.8 million, or $1.38 per diluted share, in Q2 2026 and $96.0 million, or $1.22 per diluted share, in Q3 2025. Non-GAAP adjusted net income was $93.7 million and adjusted diluted EPS was $1.23. Total revenue was $187.6 million, nearly unchanged from $187.9 million in Q2 but above $178.7 million in Q3 2025. Net premiums earned were $155.5 million, while net investment income increased to $32.2 million from $30.3 million sequentially and $26.8 million a year earlier.
Portfolio growth continued. Primary insurance-in-force ended the quarter at $229.7 billion, up from $227.1 billion in Q2 and $218.4 billion a year earlier. New insurance written was $13.6 billion, up from $13.0 billion in Q3 2025 but down from $16.1 billion in Q2. Purchase NIW was $12,941 million and refinance NIW was $634 million. The company reported 697,361 policies in force, $61,597 million of risk-in-force, a weighted average Q3 NIW credit score of 758, and a weighted average LTV of 92.3 %.
The principal earnings pressure was claims. Insurance claims and claim expenses rose to $29.1 million from $13.1 million in Q2 and $18.6 million in Q3 2025, causing the loss ratio to increase to 18.7% from 8.3% and 12.3%, respectively. The combined ratio increased to 38.5% from 27.7% in Q2 and 31.5% in Q3 2025. Underwriting and operating expenses were $30.8 million, compared with $30.5 million in Q2 and $29.2 million in Q3 2025, while the expense ratio was 19.8%. Loans in default totaled 8,571 at quarter end and the default rate was 1.23 %.
Capital and liquidity metrics remained substantial in the reported period. Total shareholders' equity was $2,702,668 thousand, debt was $418,528 thousand, and cash and cash equivalents were $72,326 thousand at September 30, 2026. Book value per share was $36.13, while non-GAAP book value per share excluding net unrealized gains and losses was $38.13, up 3 % from Q2 and 14 % from Q3 2025. The company repurchased 626,383 shares for $27.1 million during the quarter. PMIERs available assets were $3,773,543 thousand compared with net risk-based required assets of $2,181,639 thousand.
The release did not provide forward financial guidance. The operating setup entering subsequent periods is therefore defined by continued insurance-in-force growth and stronger investment income alongside the higher Q3 claim expense, higher loss ratio, lower sequential NIW, and lower persistency. For the first nine months of 2026, total revenues were $558,916 thousand, GAAP net income was $298,590 thousand, and adjusted net income was $299,160 thousand.
Management, verbatim
In the third quarter, we again delivered standout operating performance, consistent growth in our high-quality insured portfolio, and strong financial results.
Adam Pollitzer, President and Chief Executive Officer of National MI
Not in the filing
stated, not guessed- Forward guidance
- Previous-period outlook for comparison
- CFO commentary
- Operating cash flow
- Free cash flow
- Dividend declaration or payment
- Tax rate
- Gross margin
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
NMI Holdings released its Q3 2026 earnings via an SEC Form 8‑K, detailing financial performance and share repurchases.
Ticker impact
Q3 2026 net income $93.5M, EPS $1.23, down from prior quarter; loss ratio rose to 18.7%
likely downside as investors price in weaker earnings and higher loss ratio
Revenue and net income declined versus Q2, and loss ratio increased, suggesting margin pressure.
Market effects
Mortgage insurance sector may see modest pressure as a major player reports weaker earnings.
U.S. financial services market could experience slight pullback in related stocks.
Limited to U.S. mortgage insurance niche; minimal global effect.
Counterpoint
Despite earnings dip, share repurchases and strong balance sheet could support the stock.
Key entities
- companyNMI Holdings, Inc.
Parent of National Mortgage Insurance Corporation, listed on Nasdaq.
