NMI Holdings, Inc. (NMIH) · Nov 5, 2026 · Earnings

NMI Holdings earnings miss as mortgage claims surge

Miss — Adjusted EPS $1.23 vs published consensus ~$1.30

NMI Holdings earnings show a larger insured book, but rising defaults and claims pushed EPS below consensus despite strong book-value growth.

NMI is a private mortgage insurer building a larger low-down-payment mortgage portfolio while relying on disciplined underwriting and reinsurance to contain credit losses. Its recent story has been steady portfolio growth and high profitability; the Q2 release described record results, while the company’s annual filing emphasized a high-quality insured portfolio and risk-adjusted returns.

The quarter missed the earnings bar because claims deteriorated sharply. Adjusted diluted EPS was $1.23, below the published consensus of roughly $1.30, even though it edged up from $1.21 a year earlier. The main pressure was insurance claims and claim expenses, which jumped to $29.1 million from $13.1 million in Q2 and $18.6 million a year ago.

MetricQ3 2026Q2 2026Q3 2025Consensus
Adjusted diluted EPS (Financial Highlights)$1.23$1.38$1.21~$1.30
Net premiums earned (Financial Highlights)$155.5M (+3%)$157.5M$151.3M
Insurance claims and claim expenses (Financial Highlights)$29.1M (+57%)$13.1M$18.6M
Loss ratio (Financial Highlights)18.7%8.3%12.3%
Primary insurance-in-force (Insurance Metrics)$229.7B (+5%)$227.1B$218.4B
Book value/share ex. unrealized gains (Financial Highlights)$38.13 (+14%)$36.88$33.32

The underlying book is still growing, but credit stress is moving the wrong way. Primary insurance-in-force rose 5% year over year to $229.7 billion, and net premiums earned increased 3%; however, new insurance written fell 15% sequentially, annual persistency declined to 80.8% from 83.9% a year ago, and the default rate increased to 1.23% from 1.05%. That combination says the franchise is expanding, but the newer earnings are being offset by worsening claims from the insured book.

Capital remains a cushion, not the quarter’s headline. Book value per share excluding unrealized investment gains rose 14% year over year to $38.13, while net investment income increased 20% to $32.2 million. Those gains helped absorb the claims increase, but they did not prevent quarterly adjusted net income from falling 2% year over year to $93.7 million.

Bottom line: NMI is still growing its insured portfolio and book value, but this quarter shifts attention from growth to claims performance. The earnings miss and sharp loss-ratio increase make the development modestly negative versus expectations, even though the longer-term franchise remains profitable and well-capitalized.

What to watch next

Q3 earnings call, November 5

Original filing on SEC EDGAR

NMI Holdings earnings miss as mortgage claims surge | NMIH Stock News
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