NMIH — NMI Holdings, Inc.

NMI Holdings Inc. (NMIH) Q1 2026 Earnings Call Summary

1. Key Financial Results and Metrics

• Total Revenue: Record $183.5 million, up 2% from Q4 2025 and 6% year-over-year.
• Adjusted Net Income: $99.4 million, or $1.28 per diluted share; adjusted return on equity at 15.2%.
• New Insurance Written (NIW): $12.3 billion, maintaining strong production levels.
• Primary Insurance-in-Force: Record $222.3 billion.
• Persistency Rate: 12-month persistency at 82.2%, down from 83.4% in Q4 2025.
• Defaults: 8,044 defaults reported, with a default rate of 1.17%.
• Claims Expense: $20.7 million, slightly lower than $21.2 million in Q4 2025.

2. Strategic Updates and Business Highlights

• Continued growth in the insured portfolio and strong demand for private mortgage insurance (PMI) as borrowers seek down payment support.
• The company emphasizes its role in making homeownership more affordable, with a focus on risk management and maintaining high underwriting standards.
• NMIH is actively engaging with policymakers to support housing goals, highlighting the industry's value in protecting GSEs and taxpayers.

3. Forward Guidance and Outlook

• Management expressed confidence in continued growth, supported by long-term trends in housing demand and a resilient macro environment.
• The company aims to maintain disciplined pricing, risk selection, and reinsurance strategies to navigate potential macroeconomic headwinds.
• NMIH does not provide specific guidance but anticipates a stable performance similar to 2025, with a focus on serving customers and enhancing shareholder value.

4. Challenges and Points of Concern

• Default Trends: While credit performance remains strong, there are signs of normalization in the default population, particularly with newer vintages showing higher loss severity.
• Economic Risks: Concerns regarding the macro environment include rising energy prices and geopolitical tensions, which could impact consumer confidence and spending.
• Competition: The competitive landscape remains balanced, but there are ongoing pressures from peers, particularly in the refinancing market, as interest rates fluctuate.

5. Notable Q&A Insights

• Default and Reserve Metrics: The reserve per new notice remained stable, with a slight increase in loss severity attributed to the seasoning of the portfolio and higher loan amounts.
• Market Dynamics: Management noted that while new notices are increasing, there are no significant shifts in borrower risk or geographic concentrations compared to previous quarters.
• Refinancing Activity: The quarter saw strong refinancing volumes, but this is expected to slow as interest rates rise, impacting future business volumes.
• Expense Management: While expenses are expected to increase over time, NMIH maintains a disciplined approach to managing costs, aiming for long-term efficiency.

Overall, NMIH reported a strong quarter with record financial results, while also acknowledging challenges in the credit landscape and external economic factors that could influence future performance.