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

1Key Financial Results and Metrics

Total Revenue: $183.5 million (record high), up 2% from Q4 2025 and 6% year-over-year.

Adjusted Net Income: $99.4 million, or $1.28 per diluted share, with a 15.2% adjusted return on equity.

New Insurance Written (NIW): $12.3 billion, consistent with strong demand for down payment support.

Primary Insurance-in-Force: Reached a record $222.3 billion.

Persistency Rate: 12-month persistency at 82.2%, down from 83.4% in Q4 2025.

Defaults: 8,044 defaults reported, up from 7,661 in Q4 2025, with a default rate of 1.17%.

Claims Expense: $20.7 million, slightly down from $21.2 million in Q4 2025.

2Strategic Updates and Business Highlights

NMIH emphasized its role in providing affordable homeownership solutions through private mortgage insurance, with a focus on supporting borrowers and lenders.

The company is actively engaging with policymakers to advance housing goals, highlighting bipartisan support for the private MI industry.

Continued disciplined management of expenses and capital, with a robust balance sheet and significant earnings power.

Share repurchase program ongoing, with $27.7 million of common stock repurchased in Q1 2026.

3Forward Guidance and Outlook

Management expressed confidence in continued growth, supported by favorable macroeconomic conditions and long-term trends in the housing market.

While the company does not provide specific guidance, it anticipates that 2026 volume will align with the strong performance seen in 2025.

The management remains cautious about macro risks and is maintaining a proactive approach to pricing and risk selection.

4Bad News, Challenges, or Points of Concern

Default Rate Increase: The number of defaults rose, indicating potential credit normalization, though management remains optimistic about overall portfolio quality.

Cure Rate Decline: The cure rate decreased to 28% from 31% year-over-year, suggesting some challenges in resolving defaults.

Loss Severity Trends: There was a slight increase in loss severity, attributed to a higher proportion of defaults from newer vintages with less embedded equity.

Market Conditions: Rising interest rates could impact refinancing activity and overall market dynamics, with a noted increase in rates from January to March 2026.

5Notable Q&A Insights

Management acknowledged that while defaults are increasing, the overall credit performance remains strong, with no significant new risks identified in the portfolio.

The competitive landscape is described as balanced, with NMIH's NIW growth aligning with market trends.

The impact of external factors, such as geopolitical events and rising energy prices, is being monitored, but current assessments suggest minimal direct effects on default activity.

The company is prepared for potential market stress while maintaining a focus on disciplined risk management. Overall, NMIH reported a strong quarter with record revenues and solid growth in its insured portfolio, while also navigating challenges related to increasing defaults and market dynamics.