NMI Holdings Claims Spike After Second-Quarter Dip

The Tip Desk · November 7, 2026 · 2 min read

Net income was $93.5 million, or $1.23 a share, as claims reached $29.1 million and the loss ratio hit 18.7%.

NMI Holdings, Inc. (NMIH), the parent of National Mortgage Insurance Corporation, reported net income of $93.5 million, or $1.23 a share, for the third quarter ended September 30, 2026, down from $105.8 million, or $1.38 a share, in the second quarter. Adjusted net income was $93.7 million, or $1.23 a share.

The sequential profit decline followed a rise in the prior quarter and was driven by a sharp increase in insurance claims. Claims and claim expenses were $29.1 million, more than double the $13.1 million recorded in the second quarter. The loss ratio widened to 18.7% from 8.3%. Underwriting and operating expenses were $30.8 million, and the expense ratio was 19.8%. The combined ratio was 38.5%.

New insurance written fell 15% sequentially to $13.6 billion from $16.1 billion in the second quarter. The company said it helped more than 53,000 borrowers in the period. Primary insurance-in-force still rose 1% sequentially to $229.7 billion from $227.1 billion at the end of the second quarter. Net premiums earned slipped 1% sequentially to $155.5 million from $157.5 million. Total revenue was $187.6 million. Net investment income rose 6% sequentially to $32.2 million from $30.3 million.

Loans in default increased to 8,571 from 8,020 at the end of the second quarter. The default rate was 1.23%. Annual persistency declined to 80.8% from 81.4%. Quarterly run-off was 4.9%. Average net premium yield slipped to 0.27% from 0.28%. Risk-in-force was $61.6 billion. Policies in force numbered 697,361. Average loan size was $329 thousand. Coverage percentage was 26.8%.

Annualized return on equity fell to 13.8% from 15.9% in the second quarter. Annualized adjusted return on equity was 13.9%. Shareholders’ equity was $2.7 billion at quarter-end. Book value per share was $36.13. Book value per share excluding net unrealized gains and losses in the investment portfolio was $38.13, up 3% from $36.88 at the end of the second quarter.

The company repurchased 626,383 shares, or $27.1 million, during the quarter, bringing total repurchase activity to 14.3 million shares, or $435 million, since inception of the program. At quarter-end, total PMIERs available assets were $3.8 billion and net risk-based required assets were $2.2 billion.

President and Chief Executive Officer Adam Pollitzer said the company again delivered operating performance, consistent growth in its insured portfolio, and strong financial results, and that it is well positioned to continue serving lenders and borrowers and to deliver through-the-cycle growth, returns and value for shareholders.