NMI Holdings, Inc. (NMIH): Business Model Canvas [Dec-2025 Updated]

You're looking to understand how NMI Holdings, Inc. actually makes money and manages risk in the mortgage insurance space, and frankly, it's a disciplined machine built on tech-enabled lender service and smart risk transfer. This isn't just about writing policies; it's about managing a massive $218.4 billion of insurance in-force while generating $151.3 million in net premiums in Q3 2025, all while keeping regulatory capital strong with $3.2 billion in PMIERs available assets as of Q2 2025. To see the full picture of how they connect with lenders, price risk via Rate GPS, and generate revenue from both premiums and their investment float, dive into the nine building blocks of their Business Model Canvas below.

NMI Holdings, Inc. (NMIH) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that keep NMI Holdings, Inc. running smoothly, especially when it comes to risk sharing and technology integration. These partnerships are critical for maintaining capital efficiency and market access.

Government-Sponsored Enterprises (GSEs) for conforming loan eligibility

NMI Holdings, Inc.'s business is fundamentally tied to the GSEs, Fannie Mae and Freddie Mac, as their private mortgage insurance is used to enable low down payment borrowers to access conforming loan products. The quality of the insured portfolio is reflected in the total risk exposure managed.

• Primary insurance in force as of Q2 2025: $214.7 billion.
• Primary insurance in force as of Q3 2025: Shareholders' equity was $2.5 billion at September 30, 2025.
• The company's ability to secure PMIERs credit for reinsurance transactions is subject to GSE approval.

Reinsurance partners for Quota Share (QSR) and Excess of Loss (XOL) risk transfer

NMI Holdings, Inc. actively manages its capital and risk through a comprehensive reinsurance program, placing forward flow deals typically in the back part of the year.

The structure involves a broad panel of highly rated reinsurers. If onboarding takes 14+ days, churn risk rises, but here, the focus is on securing capacity.

Major Loan Origination System (LOS) and Pricing Engine (PPE) vendors

NMI Holdings, Inc. prioritizes integrations with the top technology platforms used by lenders to streamline the mortgage insurance ordering process. This is about making their certificate easy to use within the lender's existing workflow.

• NMI Holdings, Inc. has aligned with top Loan Origination Systems (LOS) and Product and Pricing Engines (PPE).
• Key LOS platforms frequently cited in 2025 market reviews include Encompass® by ICE Mortgage Technology, Calyx Point, and systems from Finastra.
• The goal is to simplify MI ordering across various vendor types.

National and regional mortgage lenders for consistent business flow

The volume of New Insurance Written (NIW) directly reflects the strength of the relationships with the originating lenders. You want to see consistent growth here.

The company's 12-month persistency was 84.1% in Q2 2025, showing lenders are keeping the policies active.

Financial institutions managing the investment float

The investment portfolio, which grows from the float generated by premiums before claims are paid, is managed to generate yield. This is a key operational partnership, defintely.

• Q2 2025 Investment Income reached $24.9 million.
• Q2 2025 Net Yield was 28 basis points.
• Q2 2025 Core Yield was 34.2 basis points.
• Total PMIERs available assets were $3.2 billion versus $1.9 billion of required assets as of Q2 2025.

Finance: draft 13-week cash view by Friday.

NMI Holdings, Inc. (NMIH) - Canvas Business Model: Key Activities

You're looking at the core engine of NMI Holdings, Inc., the activities that turn risk into revenue and manage that risk with precision. Here's the breakdown of what NMI Holdings, Inc. is actively doing to run its business as of the third quarter of 2025.

Disciplined underwriting and credit risk management

The primary activity here is selecting and pricing the risk you take on. This directly impacts the Loss Ratio, which for the third quarter of 2025 stood at 12.3%. That's up from 9.0% in the second quarter of 2025, but still reflects a managed portfolio quality. The scale of this activity is massive; Primary Insurance-in-Force reached $218.4 billion by September 30, 2025. Also, New Insurance Written (NIW) for Q3 2025 was $13.0 billion.

Here are the key metrics reflecting the output of this activity:

• Primary Insurance-in-Force (Q3 2025): $218.4 billion
• New Insurance Written (Q3 2025): $13.0 billion
• Loss Ratio (Q3 2025): 12.3%
• Underwriting and Operating Expenses (Q3 2025): $29.2 million

Managing and optimizing the reinsurance program for capital relief

NMI Holdings, Inc. actively manages its risk transfer to maintain capital strength. This involves securing coverage for future liabilities. Management secured quota share and excess of loss (XOL) reinsurance coverage for all of its 2025 and 2026 production. Furthermore, they placed a partial placement for 2027 production. The goal is stability and predictable cost structures, and the renewal terms secured for 2025/2026 had no expected material changes to the company's operating expenses.

Developing and maintaining the proprietary Rate GPS pricing platform

This platform is central to aligning premium rates to the risk of individual loans, using granular data points. The technology supports NMI Holdings, Inc.'s goal of bolstering the credit quality of its loan portfolio. The API functionality allows mortgage originators to retrieve accurate mortgage insurance quotes through Rate GPS in less than one second. The system evaluates factors like credit scores, loan-to-value ratios, and debt-to-income ratios to precisely calculate rates.

Investing the insurance float to generate investment income

The reserves generated from premiums not yet paid out as claims-the float-are actively managed for return. For the third quarter of 2025, Net Investment Income hit $26.8 million. This is an increase from the $24.9 million reported in the second quarter of 2025. The total cash and investments backing this activity stood at $3.1 billion at the end of Q3 2025.

Here is a look at the investment income trend:

Maintaining compliance with Private Mortgage Insurer Eligibility Requirements (PMIERs)

Compliance is maintained through a strong balance sheet, which supports the required capital cushions. Key indicators of this strong position include the reported Book Value per Share (excluding net unrealized gains and losses) of $33.32 as of Q3 2025. Shareholders' equity at the end of Q3 2025 was $2.5 billion. The company's focus on risk selection and a robust balance sheet supports its ability to meet these requirements consistently.

You should review the following financial health indicators:

• Book Value per Share (ex-unrealized G/L, Q3 2025): $33.32
• Shareholders' Equity (Q3 2025): $2.5 billion
• Annualized Return on Equity (Q3 2025): 15.6%

Finance: draft 13-week cash view by Friday.

NMI Holdings, Inc. (NMIH) - Canvas Business Model: Key Resources

You're looking at the core assets that power NMI Holdings, Inc.'s operations as of late 2025. These aren't just line items; they are the tangible and intangible foundations supporting their position in the private mortgage insurance space.

The sheer scale of the insured portfolio is a primary resource. This book of business represents future premium streams and the core asset base upon which the company operates and manages risk.

The technology underpinning their pricing is a critical intangible asset. This system allows NMI Holdings, Inc. to price risk granularly, which is key to attracting high-quality business and maintaining strong returns.

• Proprietary risk-based pricing engine: Rate GPS.
• Rate GPS uses risk intelligence based on individual loan characteristics to deliver competitive rates.
• The platform supports integration via a cloud-based API, allowing for quick quotes in under one second.

The capital base is robust, providing the necessary regulatory cushion. This strength is measured against the Private Mortgage Insurer Eligibility Requirements (PMIERs).

The team executing the strategy is another vital resource. Their expertise directly impacts the quality of the assets being written onto the balance sheet.

• Experienced underwriting and risk modeling team.
• This team supports the strict underwriting standards and portfolio risk limits.
• The team leverages modern analytical and modelling tools, including those supporting Rate GPS.

The investment portfolio, which is the float generated from premiums collected before claims are paid, is actively managed to generate income. Here's a look at the recent performance of that asset base.

Investment income for the third quarter of 2025 was $26.8 million. This compares to $24.9 million reported in the second quarter of 2025. Finance: draft 13-week cash view by Friday.

NMI Holdings, Inc. (NMIH) - Canvas Business Model: Value Propositions

You're looking at the core reasons why lenders choose NMI Holdings, Inc. (NMIH) for their mortgage insurance needs as of late 2025. It's about enabling business while managing risk effectively.

Enables lenders to originate low-down-payment mortgages (LTV > 80%). NMI Holdings, Inc. is the parent company of National Mortgage Insurance Corporation (National MI), a U.S.-based, private mortgage insurance company whose purpose is enabling low down payment borrowers to realize home ownership. This core function is supported by a significant and growing book of business.

The scale of the credit risk assumed is substantial, reflecting the volume of these enabling transactions:

• Primary insurance-in-force at the end of the third quarter of 2025 was $218.4 billion.
• Primary risk-in-force at the end of the third quarter of 2025 was $58.5 billion.
• This portfolio grew from $210.2 billion in primary insurance-in-force at the end of the fourth quarter of 2024.

Provides comprehensive credit risk protection against borrower default. The value proposition here is the protection offered to lenders and investors, backed by a strong balance sheet and disciplined underwriting. The company's underwriting profitability is reflected in its loss ratios, though they have trended up from historic lows.

Here's a look at the portfolio quality and claims experience through the first three quarters of 2025:

The company maintains substantial reinsurance protection, which is part of its risk management strategy. Furthermore, its financial strength supports absorbing potential losses within its earnings.

Offers competitive, granular pricing via Rate GPS for well-qualified borrowers. The Rate GPS risk-based pricing platform uses risk intelligence based on individual loan characteristics to deliver more competitive rates. This is designed to help lenders gain more business from well-qualified homebuyers.

The platform assesses factors like credit scores, loan-to-value ratios, and debt-to-income ratios to precisely calculate the appropriate mortgage insurance rates. At its introduction, Rate GPS represented an estimated overall rate reduction of less than 10% based on the company's mix of business at that time.

Delivers a fast, seamless digital experience through API integration. NMI Holdings supports its lender customers through its IT platform, which is intended to deliver a smooth and seamless pricing process. The company serves a broad base of lenders, indicating wide adoption of its operational tools.

The customer footprint as of late 2025 includes:

• Master policies issued with 2,172 customers as of September 30, 2025.
• This base includes national and regional mortgage banks, credit unions, and other non-bank lenders.

Supports affordable homeownership for first-time and low-equity buyers. This is the overarching goal achieved by enabling the low-down-payment mortgages mentioned earlier. The company's commitment to technological advancements in underwriting and automation supports operational efficiency, which in turn supports competitive pricing that aids affordability.

Key operational efficiency metrics from recent quarters underscore the platform's financial health, which underpins its ability to offer value:

• The Expense Ratio for Q3 2025 was 19.3%.
• The Expense Ratio for Q1 2025 was 20.2%.
• The Net Margin for the most recent reported quarter was 55.02%.

The stock price as of mid-November 2025 was $37.22, with a market capitalization of approximately $2.88 billion as of early December 2025.

Finance: draft 13-week cash view by Friday.

NMI Holdings, Inc. (NMIH) - Canvas Business Model: Customer Relationships

You're looking at how NMI Holdings, Inc. (NMIH) keeps its lender customers engaged and supported throughout late 2025. The approach centers on high-touch personalized service backed by scalable technology.

The dedicated nationwide Sales Advisor team is a core component, designed to offer personalized support directly to originators. While the exact headcount for this team isn't public, NMI Holdings, Inc. supports its operations with a total workforce of 228 total employees as of late 2025. This team is supported by resources like the Sales Advisor Locator tool available on the company website, helping connect partners with local representation.

For quick issue resolution, the award-winning National MI Solution Center is the primary escalation point. Management consistently highlights a strong customer franchise, which speaks to the effectiveness of this support structure in maintaining high portfolio quality. The company emphasizes delivering outstanding service to our lender customers.

Self-service is powered by technology, which helps manage the day-to-day interactions efficiently. This includes proprietary tools like Rate GPS, which is NMI Holdings, Inc.'s risk-based pricing tool for mortgage insurance rates. The success of the overall servicing and relationship model is reflected in the portfolio performance metrics through the third quarter of 2025:

Ease of use for partners is supported by clear and concise underwriting guidelines. NMI Holdings, Inc. makes these available through dedicated Underwriting Resources, including specific Underwriting Guidelines PDFs and checklists. This clarity helps reduce friction in the loan origination process.

Proactive communication is maintained through several channels. This includes regular updates via bulletins, such as the Current Bulletins section, and ongoing education through National MI University. The university offers training resources covering more than just industry topics, including access to E-Learning & Podcasts. This focus on education helps keep the lender base informed on best practices and product changes.

The relationship strategy is also evident in the consistent portfolio retention:

• 12-month persistency stood at 84.1% in Q2 2025.
• 12-month persistency was 83.9% in Q3 2025.
• Book value per share excluding unrealized gains/losses grew 16% year-over-year as of Q3 2025.

Finance: draft 13-week cash view by Friday.

NMI Holdings, Inc. (NMIH) - Canvas Business Model: Channels

You're looking at how NMI Holdings, Inc. (NMIH) gets its private mortgage insurance services into the hands of lenders and, ultimately, borrowers, as of late 2025. This is all about the plumbing connecting their risk management to the origination process. The company posted total revenue of $692.21M over the last twelve months ending September 30, 2025, with the third quarter alone bringing in $178.68M. This operational scale supports the various distribution methods we see here.

Direct integration via API with lender Loan Origination Systems

Direct API integration is key for speed in the mortgage space. This channel allows NMI Holdings, Inc. (NMIH)'s services to be embedded right where the loan is being built. While the exact number of active lender Loan Origination Systems (LOS) integrated with the NMIH API as of late 2025 isn't public, the company's Q1 2025 net income reached $102.6 million, showing the efficiency of these digital pipelines. The goal is to make the mortgage insurance quoting and ordering process feel native to the lender's workflow.

Proprietary web and mobile application (Rate GPS) for instant quotes

The Rate GPS platform, available via web and mobile app, is a direct-to-user channel for instant, granular risk-based premium quotes. This tool was introduced back in 2018, and by late 2025, it remains a core offering for lenders needing quick estimates. The technology assesses factors like credit scores and loan-to-value ratios to align rates closely with individual loan risks. Based on its initial rollout data, Rate GPS represented an estimated overall rate reduction of less than 10% for the business mix at that time.

Direct sales force covering national and regional accounts

NMI Holdings, Inc. (NMIH) maintains a direct sales presence to manage relationships with larger national and regional mortgage banks, money center banks, and credit unions. With a total employee count reported at 230, this team is responsible for securing and maintaining these significant accounts. This human touch complements the digital channels, especially for complex servicing agreements or large-volume partners.

Integration with third-party pricing engines (PPEs) for rate delivery

To maximize reach, NMI Holdings, Inc. (NMIH) connects through established third-party pricing engines (PPEs). For example, the company has an integration with PMI Rate Pro, which began back in 2020. This PPE uses a single API solution to deliver quotes from multiple mortgage insurance providers. This channel ensures NMI Holdings, Inc. (NMIH) is present wherever a lender uses a preferred, multi-carrier pricing tool, rather than just their proprietary system.

Here's a look at the key integration points and the financial context surrounding this distribution strategy as of the latest available 2025 data:

Direct communication with servicers for policy updates and claims

This final channel focuses on post-origination service delivery. NMI Holdings, Inc. (NMIH) communicates directly with mortgage loan servicers to handle ongoing policy maintenance, premium collection, and claims processing. The primary insurance-in-force at the end of Q1 2025 stood at $211.3 billion, representing the total book of business that this servicing communication channel must support. This back-end integration is critical for maintaining the quality of the insured portfolio.

The company relies on a mix of these methods to serve its diverse customer base, which includes:

• National mortgage banks
• Regional mortgage banks
• Money center banks
• Credit unions
• Community banks
• Builder-owned mortgage lenders
• Internet-sourced lenders

NMI Holdings, Inc. (NMIH) - Canvas Business Model: Customer Segments

You're hiring before product-market fit... well, NMI Holdings, Inc. (NMIH) is well past that stage, serving a broad spectrum of the U.S. mortgage origination market as of late 2025.

NMI Holdings, Inc. (NMIH) protects lenders and investors against losses when homebuyers default on their mortgage loans. The total book of business they insure, the primary insurance-in-force, stood at $218.4 billion at the end of the third quarter of 2025.

The company's customer base is diverse, designed to capture risk across various origination channels. The key groups NMI Holdings, Inc. (NMIH) serves include:

• National and regional mortgage banks.
• Money center banks and large credit unions.
• Community banks and smaller mortgage lenders.
• Internet-sourced and non-bank mortgage originators.
• Mortgage loan investors seeking credit enhancement (Pool MI).

NMI Holdings, Inc. (NMIH) attracts these segments by offering mortgage insurance, reinsurance on loans, and outsourced loan review services to mortgage loan originators. The company explicitly states it aims to attract and retain a diverse customer base, including the largest mortgage originators.

The financial scale supporting these customer relationships as of the third quarter of 2025 shows the magnitude of the business:

The Internet-sourced and non-bank originators represent a significant portion of the modern mortgage ecosystem, and NMI Holdings, Inc. (NMIH) targets these players alongside traditional institutions. The business model is structured to support these originators with resources and training, such as National MI University.

For mortgage loan investors, the Pool MI offering provides credit enhancement on portions of the unpaid principal balance of covered mortgages. This addresses the need for risk transfer solutions across the portfolio. The company's overall performance, with a Q3 2025 net income of $96.0 million, underpins the stability offered to these investors.

The customer segments are the source of the company's top line. For the quarter ending September 30, 2025, NMI Holdings, Inc. (NMIH) generated $178.7 million in total revenue. That's a solid number for a specialty insurance player. Finance: draft 13-week cash view by Friday.

NMI Holdings, Inc. (NMIH) - Canvas Business Model: Cost Structure

You're looking at the core costs that drive NMI Holdings, Inc.'s operations as of late 2025. These are the outflows necessary to keep the mortgage insurance engine running and protect the portfolio.

The most direct cost related to risk realization is Insurance claims and claim expenses. For the third quarter of 2025, NMI Holdings, Inc. reported these expenses as $18.6 million. This compares to $13.4 million in the second quarter of 2025. This resulted in a loss ratio of 12.3% for Q3 2025.

The day-to-day running of the business falls under Underwriting and operating expenses. This figure totaled $29.2 million in Q3 2025. Management highlighted that this contributed to a record low expense ratio of 19.3% for the quarter, showing good operating leverage.

Here's a quick look at those key quarterly expense figures:

For risk management, NMI Holdings, Inc. uses Reinsurance costs to transfer risk and achieve capital relief. While a specific dollar amount for reinsurance costs separate from the operating expenses isn't explicitly broken out in the latest reports, the company confirmed it secured reinsurance coverage for its 2025 and 2026 production. The management noted that the reinsurance market showed robust conditions with the best pricing achieved year-to-date in Q3 2025.

Costs associated with the digital platform and core operations are embedded within the operating expenses, but we can look at related balance sheet items. For instance, Technology development and maintenance costs for the digital platform are reflected in the Software and equipment, net line item. As of March 31, 2025, this asset value stood at $24,960 thousand.

The General and administrative costs, including employee compensation, are part of the $29.2 million in Underwriting and operating expenses for Q3 2025. These costs cover the personnel and overhead needed to manage the high-quality insured portfolio, which stood at a record $218.4 billion in primary insurance-in-force at the end of Q3 2025.

You should keep an eye on the loss ratio trend; it moved up to 12.3% in Q3 2025 from 9.0% in Q2 2025. Finance: draft 13-week cash view by Friday.

NMI Holdings, Inc. (NMIH) - Canvas Business Model: Revenue Streams

You're looking at the core income drivers for NMI Holdings, Inc. as of late 2025. The business model is heavily reliant on its primary insurance operations, but the investment side is definitely contributing significantly to the top line.

The main engine for NMI Holdings, Inc. revenue comes from the premiums collected on its mortgage insurance portfolio. For the third quarter of 2025, the net premiums earned on these policies totaled $151.3 million. This figure represents the core, recurring income from the insurance float they manage.

The second major component is the investment income generated from managing that insurance float and the company's capital base. For Q3 2025, this stream delivered $26.8 million. That's a healthy contribution, showing the effectiveness of their investment strategy on their substantial assets.

NMI Holdings, Inc. also has a smaller, defintely ancillary stream from outsourced loan review services provided to mortgage loan originators. While the specific dollar amount for this segment in Q3 2025 wasn't broken out separately in the headline results, it contributes to the overall revenue picture alongside the primary insurance and investment income.

Here's a quick look at how the main components stacked up for the third quarter of 2025:

The total revenue for Q3 2025 was $178.7 million. If you look at the math, $178.7 million total revenue minus $151.3 million in premiums and $26.8 million in investment income leaves about $0.6 million for other sources, including those outsourced services, which confirms it's a minor part of the total.

Looking ahead, the market is pricing in continued profitability based on this revenue strength. The expected full-year 2025 diluted EPS is around $4.95 per share. This projection relies on NMI Holdings, Inc. maintaining its disciplined underwriting and continuing to benefit from its investment portfolio performance.

You can see the key revenue drivers below:

• Net Premiums Earned: $151.3 million (Q3 2025)
• Net Investment Income: $26.8 million (Q3 2025)
• Total Revenue: $178.7 million (Q3 2025)
• Projected Full-Year 2025 Diluted EPS: $4.95

Finance: draft 13-week cash view by Friday.