NMIH NMI Holdings Inc

NMI Holdings, Inc. (Nasdaq: NMIH) today reported net income of $89.0 million, up 7% compared to $83.4 million in the fourth quarter ended December 31, 2023 and up 20% compared to $74.5 million in the first quarter ended March 31, 2023. Diluted earnings per share was $1.08, up 8% compared to $1.01 in the fourth quarter ended December 31, 2023 and up 24% compared to $0.88 in the first quarter ended March 31, 2023. Adjusted net income was also $89.0 million, or $1.08 per diluted share, compared to $83.4 million, or $1.01 per diluted share, in the fourth quarter and $74.5 million, or $0.88 per diluted share, in the first quarter of 2023.

Adam Pollitzer, President and Chief Executive Officer of National MI, said, “In the first quarter, we again delivered standout operating performance, continued growth in our high-quality insured portfolio, record profitability and strong returns. Our products and the support we provide are more important today than ever before and we’re delivering unique solutions for our customers and their borrowers. We have built an exceptionally high-quality book covered by a comprehensive set of risk transfer solutions, our credit performance continues to stand ahead, and we have a robust balance sheet supported by the significant earnings power of our platform. Looking forward, we’re well-positioned to continue delivering differentiated growth, returns and value for our shareholders.”

Selected first quarter 2024 highlights include:

• Primary insurance-in-force at quarter end was $199.4 billion, compared to $197.0 billion at the end of the fourth quarter and $186.7 billion at the end of the first quarter of 2023.
• Net premiums earned were $136.7 million, compared to $132.9 million in the fourth quarter and $121.8 million in the first quarter of 2023.
• Total revenue was $156.3 million, compared to $151.4 million in the fourth quarter and $136.8 million in the first quarter of 2023.
• Insurance claims and claim expenses were $3.7 million, compared to $8.2 million in the fourth quarter and $6.7 million in the first quarter of 2023. Loss ratio was 2.7% compared to 6.2% in the fourth quarter and 5.5% in the first quarter of 2023.
• Underwriting and operating expenses were $29.8 million, compared to $29.7 million in the fourth quarter and $25.8 million in the first quarter of 2023. Expense ratio was 21.8% compared to 22.4% in the fourth quarter and 21.2% in the first quarter of 2023.
• Shareholders’ equity was $2.0 billion at quarter end and book value per share was $24.56. Book value per share excluding the impact of net unrealized gains and losses in the investment portfolio was $26.42, up 3% compared to $25.54 in the fourth quarter and 17% compared to $22.56 in the first quarter of 2023.
• Annualized return on equity for the quarter was 18.2%, compared to 18.0% in the fourth quarter and 17.9% in the first quarter of 2023.
• At quarter-end, total PMIERs available assets were $2.8 billion and net risk-based required assets were $1.6 billion.

		Quarter Ended				Quarter Ended				Quarter Ended				Change (1)			Change (1)
		3/31/2024				12/31/2023				3/31/2023				Q/Q			Y/Y
INSURANCE METRICS ($billions)
Primary Insurance-in-Force		$	199.4			$	197.0			$	186.7			1		%	7		%
New Insurance Written - NIW
	Monthly premium		9.2				8.6				8.6			7		%	7		%
	Single premium		0.2				0.3				0.2			(29	)	%	21		%
	Total (2)		9.4				8.9				8.7			5		%	8		%
FINANCIAL HIGHLIGHTS (Unaudited, $millions, except per share amounts)
Net Premiums Earned			136.7				132.9				121.8			3		%	12		%
Insurance Claims and Claim Expenses			3.7				8.2				6.7			(55	)	%	(45	)	%
Underwriting and Operating Expenses			29.8				29.7				25.8			—		%	16		%
Net Income			89.0				83.4				74.5			7		%	20		%
Book Value per Share (excluding net unrealized gains and losses) (3)			26.42				25.54				22.56			3		%	17		%
Loss Ratio			2.7		%		6.2		%		5.5		%
Expense Ratio			21.8		%		22.4		%		21.2		%

(1)	Percentages may not be replicated based on the rounded figures presented in the table.
(2)	Total may not foot due to rounding.
(3)	Book value per share (excluding net unrealized gains and losses) is defined as total shareholders' equity, excluding the after-tax effects of unrealized gains and losses on our investment portfolio, divided by shares outstanding.

Conference Call and Webcast Details

The company will hold a conference call, which will be webcast live today, April 30, 2024, at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time. The webcast will be available on the company's website, www.nationalmi.com, in the “Investor Relations” section. The conference call can also be accessed by dialing (844) 481-2708 in the U.S., or (412) 317-0664 internationally, by referencing NMI Holdings, Inc.

About NMI Holdings, Inc.

NMI Holdings, Inc. (NASDAQ: NMIH), is the parent company of National Mortgage Insurance Corporation (National MI), a U.S.-based, private mortgage insurance company enabling low down payment borrowers to realize home ownership while protecting lenders and investors against losses related to a borrower's default. To learn more, please visit www.nationalmi.com.

Cautionary Note Regarding Forward-Looking Statements

Certain statements contained in this press release or any other written or oral statements made by or on behalf of the Company in connection therewith may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995 (the “PSLRA”). The PSLRA provides a “safe harbor” for any forward-looking statements. All statements other than statements of historical fact included in or incorporated by reference in this release are forward-looking statements, including any statements about our expectations, outlook, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance. These statements are often, but not always, made through the use of words or phrases such as “anticipate,” “believe,” “can,” “could,” “may,” “predict,” “assume,” “potential,” “should,” “will,” “estimate,” “perceive,” “plan,” “project,” “continuing,” “ongoing,” “expect,” “intend” and similar words or phrases. All forward-looking statements are only predictions and involve estimates, known and unknown risks, assumptions and uncertainties that may turn out to be inaccurate and could cause actual results to differ materially from those expressed in them. Many risks and uncertainties are inherent in our industry and markets. Others are more specific to our business and operations. Important factors that could cause actual events or results to differ materially from those indicated in such statements include, but are not limited to: changes in general economic, market and political conditions and policies (including changes in interest rates and inflation) and investment results or other conditions that affect the U.S. housing market or the U.S. markets for home mortgages, mortgage insurance, reinsurance and credit risk transfer markets, including the risk related to geopolitical instability, inflation, an economic downturn (including any decline in home prices) or recession, and their impacts on our business, operations and personnel; changes in the charters, business practices, policy, pricing or priorities of Fannie Mae and Freddie Mac (collectively, the GSEs), which may include decisions that have the impact of decreasing or discontinuing the use of mortgage insurance as credit enhancement generally, or with first time homebuyers or on very high loan-to-value mortgages; or changes in the direction of housing policy objectives of the Federal Housing Finance Agency (“FHFA”), such as the FHFA’s priority to increase the accessibility to and affordability of homeownership for low-and-moderate income borrowers and underrepresented communities; our ability to remain an eligible mortgage insurer under the private mortgage insurer eligibility requirements (“PMIERs”) and other requirements imposed by the GSEs, which they may change at any time; retention of our existing certificates of authority in each state and the District of Columbia (“D.C.”) and our ability to remain a mortgage insurer in good standing in each state and D.C.; our future profitability, liquidity and capital resources; actions of existing competitors, including other private mortgage insurers and government mortgage insurers such as the Federal Housing Administration, the U.S. Department of Agriculture’s Rural Housing Service and the U.S. Department of Veterans Affairs, and potential market entry by new competitors or consolidation of existing competitors; adoption of new or changes to existing laws, rules and regulations that impact our business or financial condition directly or the mortgage insurance industry generally or their enforcement and implementation by regulators, including the implementation of the final rules defining and/or concerning “Qualified Mortgage” and “Qualified Residential Mortgage”; U.S. federal tax reform and other potential changes in tax law and their impact on us and our operations; legislative or regulatory changes to the GSEs’ role in the secondary mortgage market or other changes that could affect the residential mortgage industry generally or mortgage insurance industry in particular; potential legal and regulatory claims, investigations, actions, audits or inquiries that could result in adverse judgements, settlements, fines or other reliefs that could require significant expenditures or have other negative effects on our business; uncertainty relating to the coronavirus virus and its variants, including their impact on the global economy, the U.S. housing, real estate, housing finance and mortgage insurance markets, and our business, operations and personnel; our ability to successfully execute and implement our capital plans, including our ability to access the equity, credit and reinsurance markets and to enter into, and receive approval of, reinsurance arrangements on terms and conditions that are acceptable to us, the GSEs and our regulators; lenders, the GSEs, or other market participants seeking alternatives to private mortgage insurance; our ability to implement our business strategy, including our ability to write mortgage insurance on high quality low down payment residential mortgage loans, implement successfully and on a timely basis, complex infrastructure, systems, procedures, and internal controls to support our business and regulatory and reporting requirements of the insurance industry; our ability to attract and retain a diverse customer base, including the largest mortgage originators; failure of risk management or pricing or investment strategies; decrease in the length of time our insurance policies are in force; emergence of unexpected claim and coverage issues, including claims exceeding our reserves or amounts we had expected to experience; potential adverse impacts arising from natural disasters including, with respect to affected areas, a decline in new business, adverse effects on home prices, and an increase in notices of default on insured mortgages; climate risk and efforts to manage or regulate climate risk by government agencies could affect our business and operations; potential adverse impacts arising from the occurrence of any man-made disasters or public health emergencies, including pandemics; the inability of our counter-parties, including third party reinsurers, to meet their obligations to us; failure to maintain, improve and continue to develop necessary information technology systems or the failure of technology providers to perform; effectiveness and security of our information technology systems and digital products and services, including the risks these systems, products or services may fail to operate as expected or planned, or expose us to cybersecurity or third-party risks (including the exposure of our confidential customer and other information); and ability to recruit, train and retain key personnel. These risks and uncertainties also include, but are not limited to, those set forth under the heading “Risk Factors” detailed in Item 1A of Part I of our Annual Report on Form 10-K for the year ended December 31, 2023, as subsequently updated through other reports we file with the SEC. All subsequent written and oral forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. We caution you not to place undue reliance on any forward-looking statement, which speaks only as of the date on which it is made, and we undertake no obligation to publicly update or revise any forward-looking statement to reflect new information, future events or circumstances that occur after the date on which the statement is made or to reflect the occurrence of unanticipated events except as required by law.

Use of Non-GAAP Financial Measures

We believe the use of the non-GAAP measures of adjusted income before tax, adjusted net income, adjusted diluted EPS, adjusted return-on-equity, adjusted expense ratio, adjusted combined ratio and book value per share (excluding net unrealized gains and losses) enhances the comparability of our fundamental financial performance between periods, and provides relevant information to investors. These non-GAAP financial measures align with the way the company's business performance is evaluated by management. These measures are not prepared in accordance with GAAP and should not be viewed as alternatives to GAAP measures of performance. These measures have been presented to increase transparency and enhance the comparability of our fundamental operating trends across periods. Other companies may calculate these measures differently; their measures may not be comparable to those we calculate and present.

Adjusted income before tax is defined as GAAP income before tax, excluding the pre-tax effects of net realized gains or losses from our investment portfolio, periodic costs incurred in connection with capital markets transactions, and other infrequent, unusual or non-operating items in the periods in which such items are incurred.

Adjusted net income is defined as GAAP net income, excluding the after-tax effects of net realized gains or losses from our investment portfolio, periodic costs incurred in connection with capital markets transactions, and other infrequent, unusual or non-operating items in the periods in which such items are incurred. Adjustments to components of pre-tax income are tax effected using the applicable federal statutory tax rate for the respective periods.

Adjusted diluted EPS is defined as adjusted net income divided by adjusted weighted average diluted shares outstanding. Adjusted weighted average diluted shares outstanding is defined as weighted average diluted shares outstanding, adjusted for changes in the dilutive effect of non-vested shares that would otherwise have occurred had GAAP net income been calculated in accordance with adjusted net income. There will be no adjustment to weighted average diluted shares outstanding in the periods that non-vested shares are anti-dilutive under GAAP.

Adjusted return on equity is calculated by dividing adjusted net income on an annualized basis by the average shareholders' equity for the period.

Adjusted expense ratio is defined as GAAP underwriting and operating expenses, excluding the pre-tax effects of periodic costs incurred in connection with capital markets transactions, divided by net premiums earned.

Adjusted combined ratio is defined as the total of GAAP underwriting and operating expenses, excluding the pre-tax effects of periodic costs incurred in connection with capital markets transactions and insurance claims and claims expenses, divided by net premiums earned.

Book value per share (excluding net unrealized gains and losses) is defined as total shareholder's equity, excluding the after-tax effects of unrealized gains and losses on investments, divided by shares outstanding.

Although adjusted income before tax, adjusted net income, adjusted diluted EPS, adjusted return-on-equity, adjusted expense ratio, adjusted combined ratio and book value per share (excluding net unrealized gains and losses) exclude certain items that have occurred in the past and are expected to occur in the future, the excluded items: (1) are not viewed as part of the operating performance of our primary activities; or (2) are impacted by market, economic or regulatory factors and are not necessarily indicative of operating trends, or both. These adjustments, and the reasons for their treatment, are described below.

	(1)	Net realized investment gains and losses. The recognition of the net realized investment gains or losses can vary significantly across periods as the timing is highly discretionary and is influenced by factors such as market opportunities, tax and capital profile, and overall market cycles that do not reflect our current period operating results.
	(2)	Capital markets transaction costs. Capital markets transaction costs result from activities that are undertaken to improve our debt profile or enhance our capital position through activities such as debt refinancing and capital markets reinsurance transactions that may vary in their size and timing due to factors such as market opportunities, tax and capital profile, and overall market cycles.
	(3)	Other infrequent, unusual or non-operating items. Items that are the result of unforeseen or uncommon events, and are not expected to recur with frequency in the future. Identification and exclusion of these items provides clarity about the impact special or rare occurrences may have on our current financial performance. Past adjustments under this category include infrequent, unusual or non-operating adjustments related to severance, restricted stock modification and other expenses incurred in connection with the CEO transition announced in September 2021 and the effects of the release of the valuation allowance recorded against our net federal and certain state net deferred tax assets in 2016 and the re-measurement of our net deferred tax assets in connection with tax reform in 2017. We believe such items are infrequent or non-recurring in nature, and are not indicative of the performance of, or ongoing trends in, our primary operating activities or business.
	(4)	Net unrealized gains and losses on investments. The recognition of the net unrealized gains or losses on investment can vary significantly across periods and is influenced by factors such as interest rate movement, overall market and economic conditions, and tax and capital profiles. These valuation adjustments may not necessarily result in economic gains or losses and not reflective of ongoing operations. Trends in the profitability of our fundamental operating activities can be more clearly identified without the fluctuations of these unrealized gains or losses.

Investor ContactJohn M. SwensonVice President, Investor Relations and Treasuryjohn.swenson@nationalmi.com (510) 788-8417

Consolidated statements of operations and comprehensive income (unaudited)	For the three months ended March 31,
	2024				2023
	(In Thousands, except for per share data)
Revenues
Net premiums earned	$	136,657			$	121,754
Net investment income		19,436				14,894
Net realized investment losses		—				(33	)
Other revenues		160				164
Total revenues		156,253				136,779
Expenses
Insurance claims and claim expenses		3,694				6,701
Underwriting and operating expenses		29,815				25,786
Service expenses		137				80
Interest expense		8,040				8,039
Total expenses		41,686				40,606
Income before income taxes		114,567				96,173
Income tax expense		25,517				21,715
Net income	$	89,050			$	74,458
Earnings per share
Basic	$	1.10			$	0.89
Diluted	$	1.08			$	0.88
Weighted average common shares outstanding
Basic		80,726				83,600
Diluted		82,099				84,840
Loss ratio (1)		2.7	%			5.5	%
Expense ratio (2)		21.8	%			21.2	%
Combined ratio		24.5	%			26.7	%
Net income	$	89,050			$	74,458
Other comprehensive (loss) income, net of tax:
Unrealized (losses) gains in accumulated other comprehensive income, net of tax (benefit) expense of $(2,729) and $8,633 for the quarters ended March 31, 2024 and 2023, respectively		(9,905	)			32,476
Reclassification adjustment for realized losses included in net income, net of tax benefit of $7 for the quarter ended March 31, 2023		—				26
Other comprehensive (loss) income, net of tax		(9,905	)			32,502
Comprehensive income	$	79,145			$	106,960

(1)	Loss ratio is calculated by dividing insurance claims and claim expenses by net premiums earned.
(2)	Expense ratio is calculated by dividing underwriting and operating expenses by net premiums earned.

Consolidated balance sheets (unaudited)	March 31, 2024				December 31, 2023
Assets	(In Thousands, except for share data)
Fixed maturities, available-for-sale, at fair value (amortized cost of $2,577,990 and $2,542,862 as of March 31, 2024 and December 31, 2023, respectively)	$	2,393,525			$	2,371,021
Cash and cash equivalents (including restricted cash of $1,137 and $1,338 as of March 31, 2024 and December 31, 2023, respectively)		139,726				96,689
Premiums receivable		75,362				76,456
Accrued investment income		19,860				19,785
Deferred policy acquisition costs, net		62,801				62,905
Software and equipment, net		30,308				30,252
Intangible assets and goodwill		3,634				3,634
Reinsurance recoverable		27,880				27,514
Prepaid federal income taxes		235,286				235,286
Other assets		17,730				16,965
Total assets	$	3,006,112			$	2,940,507
Liabilities
Debt	$	398,001			$	397,595
Unearned premiums		85,784				92,295
Accounts payable and accrued expenses		81,831				86,189
Reserve for insurance claims and claim expenses		127,182				123,974
Deferred tax liability, net		322,651				301,573
Other liabilities (1)		12,282				12,877
Total liabilities		1,027,731				1,014,503
Shareholders' equity
Common stock - class A shares, $0.01 par value; 87,838,602 shares issued and 80,545,535 shares outstanding as of March 31, 2024 and 87,334,138 shares issued and 80,881,280 shares outstanding as of December 31, 2023 (250,000,000 shares authorized)		878				873
Additional paid-in capital		989,349				990,816
Treasury Stock, at cost: 7,293,067 and 6,452,858 common shares as of March 31, 2024 and December 31, 2023, respectively		(174,227	)			(148,921	)
Accumulated other comprehensive loss, net of tax		(149,822	)			(139,917	)
Retained earnings		1,312,203				1,223,153
Total shareholders' equity		1,978,381				1,926,004
Total liabilities and shareholders' equity	$	3,006,112			$	2,940,507

(1)	“Reinsurance funds withheld” has been reclassified as “Other liabilities” in the prior period.

Non-GAAP Financial Measure Reconciliations (unaudited)
	As of and for the three months ended
	3/31/2024					12/31/2023					3/31/2023
As Reported	(In Thousands, except for per share data)
Revenues
Net premiums earned	$	136,657				$	132,940				$	121,754
Net investment income		19,436					18,247					14,894
Net realized investment losses		—					—					(33	)
Other revenues		160					193					164
Total revenues		156,253					151,380					136,779
Expenses
Insurance claims and claim expenses		3,694					8,232					6,701
Underwriting and operating expenses		29,815					29,716					25,786
Service expenses		137					185					80
Interest expense		8,040					8,066					8,039
Total expenses		41,686					46,199					40,606
Income before income taxes		114,567					105,181					96,173
Income tax expense		25,517					21,768					21,715
Net income	$	89,050				$	83,413				$	74,458
Adjustments:
Net realized investment losses		—					—					33
Adjusted income before taxes		114,567					105,181					96,206
Income tax expense on adjustments (1)		—					—					7
Adjusted net income	$	89,050				$	83,413				$	74,484
Weighted average diluted shares outstanding		82,099					82,685					84,840
Diluted EPS	$	1.08				$	1.01				$	0.88
Adjusted diluted EPS	$	1.08				$	1.01				$	0.88
Return-on-equity		18.2		%			18.0		%			17.9		%
Adjusted return-on-equity		18.2		%			18.0		%			17.9		%
Expense ratio (2)		21.8		%			22.4		%			21.2		%
Adjusted expense ratio (3)		21.8		%			22.4		%			21.2		%
Combined ratio (4)		24.5		%			28.5		%			26.7		%
Adjusted combined ratio (5)		24.5		%			28.5		%			26.7		%
Book value per share (6)	$	24.56				$	23.81				$	20.49
Book value per share (excluding net unrealized gains and losses) (7)	$	26.42				$	25.54				$	22.56

(1)	Marginal tax impact of non-GAAP adjustments is calculated based on our statutory U.S. federal corporate income tax rate of 21%, except for those items that are not eligible for an income tax deduction.
(2)	Expense ratio is calculated by dividing underwriting and operating expenses by net premiums earned.
(3)	Adjusted expense ratio is calculated by dividing adjusted underwriting and operating expense (underwriting and operating expenses excluding costs related to capital markets reinsurance transactions) by net premiums earned.
(4)	Combined ratio is calculated by dividing the total of underwriting and operating expenses and insurance claims and claim expenses by net premiums earned.
(5)	Adjusted combined ratio is calculated by dividing the total of adjusted underwriting and operating expenses (underwriting and operating expenses excluding costs related to capital market reinsurance transaction) and insurance claims and claim expenses by net premiums earned.
(6)	Book value per share is calculated by dividing total shareholder's equity by shares outstanding.
(7)	Book value per share (excluding net unrealized gains and losses) is defined as total shareholder's equity, excluding the after-tax effects of unrealized gains and losses on our investment portfolio, divided by shares outstanding.

 

Historical Quarterly Data	2024					2023
	March 31					December 31					September 30					June 30					March 31
	(In Thousands, except for per share data)
Revenues
Net premiums earned	$	136,657				$	132,940				$	130,089				$	125,985				$	121,754
Net investment income		19,436					18,247					17,853					16,518					14,894
Net realized investment (losses) gain		—					—					—					—					(33	)
Other revenues		160					193					217					182					164
Total revenues		156,253					151,380					148,159					142,685					136,779
Expenses
Insurance claims and claim expenses		3,694					8,232					4,812					2,873					6,701
Underwriting and operating expenses		29,815					29,716					27,749					27,448					25,786
Service expenses		137					185					239					267					80
Interest expense		8,040					8,066					8,059					8,048					8,039
Total expenses		41,686					46,199					40,859					38,636					40,606
Income before income taxes		114,567					105,181					107,300					104,049					96,173
Income tax expense		25,517					21,768					23,345					23,765					21,715
Net income	$	89,050				$	83,413				$	83,955				$	80,284				$	74,458
Earnings per share
Basic	$	1.10				$	1.03				$	1.02				$	0.97				$	0.89
Diluted	$	1.08				$	1.01				$	1.00				$	0.95				$	0.88
Weighted average common shares outstanding
Basic		80,726					81,005					82,096					82,958					83,600
Diluted		82,099					82,685					83,670					84,190					84,840
Other data
Loss ratio (1)		2.7		%			6.2		%			3.7		%			2.3		%			5.5		%
Expense ratio (2)		21.8		%			22.4		%			21.3		%			21.8		%			21.2		%
Combined ratio (3)		24.5		%			28.5		%			25.0		%			24.1		%			26.7		%

(1)	Loss ratio is calculated by dividing insurance claims and claim expenses by net premiums earned.
(2)	Expense ratio is calculated by dividing underwriting and operating expenses by net premiums earned.
(3)	Combined ratio may not foot due to rounding.

Portfolio Statistics

The table below highlights trends in our primary portfolio as of the date and for the periods indicated.

Primary portfolio trends	As of and for the three months ended
	March 31, 2024					December 31, 2023					September 30, 2023					June 30, 2023					March 31, 2023
	($ Values In Millions, except as noted below)
New insurance written (NIW)	$	9,398				$	8,927				$	11,334				$	11,478				$	8,734
New risk written		2,486					2,354					3,027					3,022					2,258
Insurance-in-force (IIF) (1)		199,373					197,029					194,781					191,306					186,724
Risk-in-force (RIF) (1)		52,610					51,796					51,011					49,875					48,494
Policies in force (count) (1)		635,662					629,690					622,993					611,441					600,294
Average loan size ($ value in thousands) (1)	$	314				$	313				$	313				$	313				$	311
Coverage percentage (2)		26.4		%			26.3		%			26.2		%			26.1		%			26.0		%
Loans in default (count) (1)		5,109					5,099					4,594					4,349					4,475
Default rate (1)		0.80		%			0.81		%			0.74		%			0.71		%			0.75		%
Risk-in-force on defaulted loans (1)	$	414				$	408				$	359				$	335				$	337
Average net premium yield (3)		0.28		%			0.27		%			0.27		%			0.27		%			0.26		%
Earnings from cancellations	$	0.6				$	1.0				$	0.9				$	1.1				$	1.4
Annual persistency (4)		85.8		%			86.1		%			86.2		%			86.0		%			85.1		%
Quarterly run-off (5)		3.6		%			3.4		%			4.1		%			3.7		%			3.2		%

(1)	Reported as of the end of the period.
(2)	Calculated as end of period RIF divided by end of period IIF.
(3)	Calculated as net premiums earned, divided by average primary IIF for the period, annualized.
(4)	Defined as the percentage of IIF that remains on our books after a given twelve-month period.
(5)	Defined as the percentage of IIF that is no longer on our books after a given three-month period.

NIW, IIF and Premiums

The tables below present primary NIW and primary and pool IIF, as of the dates and for the periods indicated.

Primary NIW	For the three months ended
	March 31, 2024				December 31, 2023				September 30, 2023				June 30, 2023				March 31, 2023
	(In Millions)
Monthly	$	9,175			$	8,614			$	11,038			$	11,266			$	8,550
Single		223				313				296				212				184
Primary	$	9,398			$	8,927			$	11,334			$	11,478			$	8,734

Primary and pool IIF	As of
	March 31, 2024				December 31, 2023				September 30, 2023				June 30, 2023				March 31, 2023
	(In Millions)
Monthly	$	180,343			$	177,764			$	175,308			$	171,685			$	166,924
Single		19,030				19,265				19,473				19,621				19,800
Primary		199,373				197,029				194,781				191,306				186,724
Pool		—				—				—				1,000				1,025
Total	$	199,373			$	197,029			$	194,781			$	192,306			$	187,749

The following table presents the amounts related to the company's quota-share reinsurance transactions (the 2016 QSR Transaction, 2018 QSR Transaction, 2020 QSR Transaction, 2021 QSR Transaction, 2022 QSR Transaction, 2022 Seasoned QSR Transaction, 2023 QSR Transaction, and 2024 QSR Transaction and collectively, the QSR Transactions), insurance-linked note transactions (2019 ILN Transaction, 2020-2 ILN Transaction, 2021-1 ILN Transaction, and 2021-2 ILN Transaction and collectively, the ILN Transactions), and traditional reinsurance transactions (2022-1 XOL Transaction, 2022-2 XOL Transaction, 2022-3 XOL Transaction, 2023-1 XOL Transaction, 2023-2 XOL Transaction, and 2024 XOL Transaction and collectively, the XOL Transactions) for the periods indicated.

	For the three months ended
	March 31, 2024				December 31, 2023				September 30, 2023				June 30, 2023				March 31, 2023
	(In Thousands)
The QSR Transactions
Ceded risk-in-force	$	12,669,207			$	12,626,541			$	12,753,261			$	12,761,294			$	12,635,442
Ceded premiums earned		(41,269	)			(41,218	)			(42,015	)			(42,002	)			(42,096	)
Ceded claims and claim expenses		659				2,447				2,221				803				1,965
Ceding commission earned		10,292				9,561				9,808				9,877				9,965
Profit commission		23,407				22,057				22,184				23,486				22,279
The ILN Transactions (1)
Ceded premiums	$	(5,976	)		$	(6,305	)		$	(6,925	)		$	(8,815	)		$	(9,095	)
The XOL Transactions
Ceded Premiums	$	(9,223	)		$	(8,302	)		$	(7,968	)		$	(7,672	)		$	(7,237	)

(1)	Effective July 25, 2023, NMIC exercised its optional call to terminate and commute its previously outstanding excess of loss reinsurance agreement with Oaktown Re II Ltd. NMIC no longer makes risk premium payments to Oaktown Re II Ltd., thereafter.

The tables below present our total primary NIW by FICO, loan-to-value (LTV) ratio, and purchase/refinance mix for the periods indicated.

Primary NIW by FICO	For the three months ended
	March 31, 2024				December 31, 2023				March 31, 2023
	(In Millions)
>= 760	$	4,888			$	4,564			$	5,251
740-759		1,797				1,542				1,514
720-739		1,220				1,280				1,107
700-719		780				816				456
680-699		530				568				342
<=679		183				157				64
Total	$	9,398			$	8,927			$	8,734
Weighted average FICO		757				755				762

Primary NIW by LTV	For the three months ended
	March 31, 2024					December 31, 2023					March 31, 2023
	(In Millions)
95.01% and above	$	1,062				$	990				$	358
90.01% to 95.00%		4,414					4,107					4,085
85.01% to 90.00%		2,931					2,947					3,234
85.00% and below		991					883					1,057
Total	$	9,398				$	8,927				$	8,734
Weighted average LTV		92.3		%			92.2		%			91.6		%

Primary NIW by purchase/refinance mix	For the three months ended
	March 31, 2024				December 31, 2023				March 31, 2023
	(In Millions)
Purchase	$	9,157			$	8,759			$	8,494
Refinance		241				168				240
Total	$	9,398			$	8,927			$	8,734

The table below presents a summary of our primary IIF and RIF by book year as of March 31, 2024.

Primary IIF and RIF	As of March 31, 2024
	IIF				RIF
Book Year	(In Millions)
2024	$	9,326			$	2,466
2023		37,676				9,924
2022		51,809				13,759
2021		59,306				15,569
2020		25,939				6,871
2019 and before		15,317				4,021
Total	$	199,373			$	52,610

The tables below present our total primary IIF and RIF by FICO and LTV, and total primary RIF by loan type as of the dates indicated.

Primary IIF by FICO	As of
	March 31, 2024				December 31, 2023				March 31, 2023
	(In Millions)
>= 760	$	99,195			$	98,034			$	91,623
740-759		35,416				34,829				33,156
720-739		28,033				27,755				26,233
700-719		18,904				18,734				18,203
680-699		13,002				12,867				12,502
<=679		4,823				4,810				5,007
Total	$	199,373			$	197,029			$	186,724

Primary RIF by FICO	As of
	March 31, 2024				December 31, 2023				March 31, 2023
	(In Millions)
>= 760	$	25,935			$	25,523			$	23,472
740-759		9,392				9,207				8,692
720-739		7,484				7,387				6,903
700-719		5,089				5,021				4,847
680-699		3,479				3,433				3,311
<=679		1,231				1,225				1,269
Total	$	52,610			$	51,796			$	48,494

Primary IIF by LTV	As of
	March 31, 2024				December 31, 2023				March 31, 2023
	(In Millions)
95.01% and above	$	20,277			$	19,609			$	17,583
90.01% to 95.00%		97,028				95,415				89,125
85.01% to 90.00%		61,169				60,348				56,425
85.00% and below		20,899				21,657				23,591
Total	$	199,373			$	197,029			$	186,724

Primary RIF by LTV	As of
	March 31, 2024				December 31, 2023				March 31, 2023
	(In Millions)
95.01% and above	$	6,275			$	6,062			$	5,413
90.01% to 95.00%		28,663				28,184				26,326
85.01% to 90.00%		15,174				14,961				13,937
85.00% and below		2,498				2,589				2,818
Total	$	52,610			$	51,796			$	48,494

Primary RIF by Loan Type	As of
	March 31, 2024				December 31, 2023				March 31, 2023
Fixed	98		%		98		%		98		%
Adjustable rate mortgages:
Less than five years	—				—				—
Five years and longer	2				2				2
Total	100		%		100		%		100		%

The table below presents a summary of the change in total primary IIF for the dates and periods indicated.

Primary IIF	As of and for the three months ended
	March 31, 2024				December 31, 2023				March 31, 2023
	(In Millions)
IIF, beginning of period	$	197,029			$	194,781			$	183,968
NIW		9,398				8,927				8,734
Cancellations, principal repayments and other reductions		(7,054	)			(6,679	)			(5,978	)
IIF, end of period	$	199,373			$	197,029			$	186,724

Geographic Dispersion

The following table shows the distribution by state of our primary RIF as of the periods indicated.

Top 10 primary RIF by state	As of
	March 31, 2024				December 31, 2023				March 31, 2023
California	10.2		%		10.2		%		10.5		%
Texas	8.8				8.7				8.8
Florida	7.5				7.6				8.0
Georgia	4.2				4.1				4.1
Washington	3.9				4.0				4.0
Illinois	3.9				4.0				3.9
Virginia	3.9				3.9				4.1
Pennsylvania	3.4				3.4				3.4
Colorado	3.2				3.2				3.5
Maryland	3.2				3.3				3.3
Total	52.2		%		52.4		%		53.6		%

The table below presents selected primary portfolio statistics, by book year, as of March 31, 2024.

	As of March 31, 2024
Book Year	Original Insurance Written				Remaining Insurance in Force				% Remaining of Original Insurance				Policies Ever in Force			Number of Policies in Force			Number of Loans in Default			# of Claims Paid			Incurred Loss Ratio (Inception to Date) (1)				Cumulative Default Rate (2)				Current default rate (3)
	($ Values In Millions)
2015 and prior	$	16,035			$	1,063			7		%		67,989			6,088			101			200			2.7		%		0.4		%		1.7		%
2016		21,187				1,881			9		%		83,626			10,119			190			174			1.8		%		0.4		%		1.9		%
2017		21,582				2,350			11		%		85,897			13,036			293			160			2.2		%		0.5		%		2.2		%
2018		27,295				2,811			10		%		104,043			14,889			439			157			2.9		%		0.6		%		2.9		%
2019		45,141				7,212			16		%		148,423			31,251			491			67			2.1		%		0.4		%		1.6		%
2020		62,702				25,939			41		%		186,174			88,166			545			24			1.7		%		0.3		%		0.6		%
2021		85,574				59,306			69		%		257,972			191,719			1,436			34			4.2		%		0.6		%		0.7		%
2022		58,734				51,809			88		%		163,281			148,868			1,354			12			19.2		%		0.8		%		0.9		%
2023		40,473				37,676			93		%		111,994			106,285			260			1			10.8		%		0.2		%		0.2		%
2024		9,398				9,326			99		%		25,386			25,241			—			—			—		%		—		%		—		%
Total	$	388,121			$	199,373							1,234,785			635,662			5,109			829

(1)	Calculated as total claims incurred (paid and reserved) divided by cumulative premiums earned, net of reinsurance.
(2)	Calculated as the sum of the number of claims paid ever to date and number of loans in default divided by policies ever in force.
(3)	Calculated as the number of loans in default divided by number of policies in force.

The following table provides a reconciliation of the beginning and ending reserve balances for primary insurance claims and claim expenses:

	For the three months ended March 31,
		2024				2023
	(In Thousands)
Beginning balance	$	123,974			$	99,836
Less reinsurance recoverables (1)		(27,514	)			(21,587	)
Beginning balance, net of reinsurance recoverables		96,460				78,249
Add claims incurred:
Claims and claim expenses incurred:
Current year (2)		32,976				27,608
Prior years (3)		(29,282	)			(20,907	)
Total claims and claim expenses incurred		3,694				6,701
Less claims paid:
Claims and claim expenses paid:
Current year (2)		—				—
Prior years (3)		852				272
Total claims and claim expenses paid		852				272
Reserve at end of period, net of reinsurance recoverables		99,302				84,678
Add reinsurance recoverables (1)		27,880				23,479
Ending balance	$	127,182			$	108,157

(1)	Related to ceded losses recoverable under the QSR Transactions.
(2)	Related to insured loans with their most recent defaults occurring in the current year. For example, if a loan defaulted in a prior year and subsequently cured and later re-defaulted in the current year, the default would be included in the current year. Amounts are presented net of reinsurance and included $25.9 million attributed to net case reserves and $6.6 million attributed to net IBNR reserves for the three months ended March 31, 2024 and $22.3 million attributed to net case reserves and $4.9 million attributed to net IBNR reserves for the three months ended March 31, 2023.
(3)	Related to insured loans with defaults occurring in prior years, which have been continuously in default before the start of the current year. Amounts are presented net of reinsurance and included $22.4 million attributed to net case reserves and $6.3 million attributed to net IBNR reserves for the three months ended March 31, 2024 and $16.2 million attributed to net case reserves and $4.5 million attributed to net IBNR reserves for the three months ended March 31, 2023.

The following table provides a reconciliation of the beginning and ending count of loans in default:

	For the three months ended March 31,
	2024			2023
Beginning default inventory	5,099			4,449
Plus: new defaults	1,876			1,558
Less: cures	(1,817	)		(1,507	)
Less: claims paid	(42	)		(21	)
Less: rescission and claims denied	(7	)		(4	)
Ending default inventory	5,109			4,475

The following table provides details of our claims paid, before giving effect to claims ceded under the QSR Transactions, for the periods indicated:

	For the three months ended March 31,
	2024					2023
	($ Values In Thousands)
Number of claims paid (1)		42					21
Total amount paid for claims	$	1,145				$	344
Average amount paid per claim	$	27				$	16
Severity (2)		54		%			39		%

(1)	Count includes 16 and seven claims settled without payment during the three months ended March 31, 2024 and 2023, respectively.
(2)	Severity represents the total amount of claims paid including claim expenses divided by the related RIF on the loan at the time the claim is perfected, and is calculated including claims settled without payment.

The following table shows our average reserve per default, before giving effect to reserves ceded under the QSR Transactions, as of the dates indicated:

	As of March 31,
Average reserve per default:		2024				2023
	(In Thousands)
Case (1)	$	22.9			$	22.4
IBNR (1)(2)		2.0				1.8
Total	$	24.9			$	24.2

(1)	Defined as the gross reserve per insured loan in default.
(2)	Amount includes claims adjustment expenses.

The following table provides a comparison of the PMIERs available assets and net risk-based required asset amount as reported by NMIC as of the dates indicated:

	As of
	March 31, 2024				December 31, 2023				March 31, 2023
	(In Thousands)
Available Assets	$	2,821,803			$	2,717,804			$	2,480,882
Net risk-based required assets		1,561,655				1,516,140				1,231,780