US mortgage insurers delivered strong underwriting results in 2025, posting a calendar-year loss ratio of 7.7%, according to a new Fitch Ratings report. Stable home values continued to support credit performance and helped offset a modest weakening in unemployment.
A major factor behind the result was favourable reserve development. Fitch said the six private mortgage insurers reported a combined $874 mn of favourable reserve development in 2025, improving the group loss ratio by 15.8 percentage points.
Those reserve releases mainly came from cures on 2023 and 2024 delinquencies. Cure rates ran ahead of Fitch’s expectations, which gave the sector an extra lift.
Persistency averaged 83% at year-end 2025, reflecting the gap between current mortgage rates and the lower rates attached to many existing loans. Borrowers are staying put. That keeps policies in force longer and supports earnings stability.
Insurance in force grew modestly as elevated persistency offset slower growth in new insurance written. Fitch expects insurance in force to edge higher again in 2026, supported by continued strong persistency and stable NIW volumes.
Primary mortgage insurers also kept expanding their use of reinsurance. The sector continues to layer programmes through excess-of-loss and quota share treaties, with coverage locked in through at least 2027 and, in some cases, through 2028.
These arrangements help reduce loss volatility and strengthen capital protection under stress scenarios.
According to Beinsure analysts, that matters more in a market where underwriting stays solid, though capital management and downside protection still carry real weight if credit conditions shift.
