NMI Holdings, Inc. Announces New Quota Share Reinsurance Agreement and Releases Monthly Operating Statistics for December 2020

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[{"type":"text","content":"EMERYVILLE, Calif., Jan. 04, 2021 (GLOBE NEWSWIRE) -- NMI Holdings, Inc. (Nasdaq: NMIH) today announced that National Mortgage Insurance Corporation (National MI), its wholly-owned insurance subsidiary, has entered into a new quota share reinsurance agreement, subject to customary approvals, with a broad panel of highly rated reinsurers. Under the new agreement, National MI will cede, subject to certain limitations, exclusions and conditions, 22.5% of its primary new insurance written for the period from January 1, 2021 through December 31, 2021. The company will receive a ceding commission equal to 20% of ceded premiums, as well as a profit commission of up to 57.5% of ceded premiums, reduced by any losses ceded under the agreement. National MI also reported selected operating statistics for the month of December 2020. At December 31, 2020, the company reported 12,209 loans in default and a default rate of 3.06%. Adam Pollitzer, Executive Vice President and Chief Financial Officer of National MI, said, “We are pleased with our ability to secure additional reinsurance capacity on constructive terms from a high-quality panel of reinsurance partners. Our new quota share agreement builds upon the success we have achieved in the risk transfer markets to date and extends our comprehensive reinsurance coverage across our production in 2021. The treaty highlights the confidence that reinsurers have in our front-end pricing and credit risk management approach, and furthers our ability to pursue incremental, high-quality new business and support lenders and borrowers in the current market.” Pollitzer added, “We are also encouraged by the credit performance of our in-force portfolio and the continued decline in the size of our default population through year end.” Selected operating statistics Default Activity as of: 3/31/20206/30/20209/30/202010/31/202011/30/202012/31/2020Number of loans in default (1) 1,44910,81613,76513,10812,53212,209Default rate (2) 0.38%2.90%3.60%3.41%3.23%3.06% New Insurance Written During: Quarter Ended 3/31/2020Quarter Ended 6/30/2020Quarter Ended 9/30/2020Month Ended 10/31/2020Month Ended 11/30/2020Month Ended 12/31/2020Weighted average composition FICO 757762764764762758Loan-to-value (LTV) 91.3%90.7%90.7%90.6%90.9%91.0%Debt-to-income (DTI) 34.4%33.3%32.8%32.7%33.2%33.6% In-focus risk segments 95.01-97.0% LTV 6....

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