NMIH — NMI Holdings, Inc.

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

1. Key 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%.

2. Strategic 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.

3. Forward 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.

4. Challenges 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.

5. Notable 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.