NMI Holdings Inc. (NMIH) Q2 2026 Earnings Call Summary

1Key Financial Results and Metrics

Total Revenue:: $187.9 million, a record high, up 2.4% from Q1 2026 and 8.1% year-over-year.

Adjusted Net Income:: $106 million, or $1.38 per diluted share, marking a 7% increase from Q1 2026 and a 10% increase from Q2 2025.

Return on Equity:: 15.9%.

New Insurance Written (NIW):: $16 billion, contributing to a record $227.1 billion in primary insurance in force.

Persistency Rate:: 81.4%, slightly down from 82.2% in Q1 2026.

Claims Expense:: $13.1 million, down from $20.7 million in Q1 2026.

Defaults:: 8,020 defaults reported, with a default rate of 1.16%.

2Strategic Updates and Business Highlights

NMIH achieved a significant milestone by surpassing $500 billion in total insurance written.

The company emphasized its commitment to providing down payment support, which continues to drive demand for its products.

NMIH has established a diversified customer base, serving over 1,700 lenders, and maintains a culture of collaboration and performance.

The management expressed confidence in the long-term private mortgage insurance (MI) market opportunity, citing a robust balance sheet and strong credit performance.

3Forward Guidance and Outlook

The management is optimistic about continued growth in the insured portfolio and expects to maintain strong financial performance.

They anticipate a constructive credit environment, with no significant signs of strain in the current portfolio.

NMIH plans to continue its disciplined approach to pricing, risk selection, and reinsurance, aiming for sustainable growth and returns.

4Challenges and Points of Concern

Macro Risks:: While the housing market remains resilient, management acknowledged potential macroeconomic risks that could impact performance.

Competition:: There are competitive pressures in certain markets, particularly in transactionally-oriented business, but the overall industry dynamics are viewed as balanced.

Default Trends:: Management expects default rates to trend higher in the latter half of the year due to seasonal factors and portfolio seasoning.

5Notable Q&A Insights

Home Price Trends:: Management noted that while national home prices are generally strong, certain markets (e.g., Florida, Texas) are experiencing pressure, though some areas are beginning to stabilize.

Market Share and Competition:: NMIH has seen a slight increase in market share, but management emphasized that they focus on customer engagement rather than actively managing market share.

Reinsurance Strategy:: The company prefers traditional reinsurance due to favorable terms and execution speed, while also expressing interest in returning to the capital markets when conditions are right.

Legislative Impact:: The 21st Century ROAD to Housing Act is viewed positively for long-term housing supply and affordability, but its immediate impact on the MI market is expected to be limited. Overall, NMIH reported a strong quarter with record financial results, while also navigating competitive pressures and macroeconomic risks. The management remains optimistic about future growth and the quality of their insured portfolio.