NMI Holdings, Inc. Reports Third Quarter 2025 Financial Results

About this update from Nmi Holdings Inc

EMERYVILLE, Calif. , Nov. 04, 2025 (GLOBE NEWSWIRE) -- NMI Holdings, Inc. (Nasdaq: NMIH) today reported net income of $96.0 million , or $1.22 per diluted share, for the third quarter ended September 30, 2025 , compared to $96.2 million , or $1.21 per diluted share, for the second quarter ended June 30, 2025 and $92.8 million , or $1.15 per diluted share, for the third quarter ended September 30, 2024 . Adam Pollitzer , President and Chief Executive Officer of National MI, said, “In the third quarter, we again delivered strong operating performance, consistent growth in our high-quality insured portfolio, and standout financial results. Our products and the support we provide are more important today than ever before, and we’re delivering unique solutions for our customers and their borrowers. We have built an exceptionally high-quality book covered by a comprehensive set of risk transfer solutions, our credit performance continues to stand ahead, and we have a robust balance sheet supported by the significant earnings power of our platform. Looking forward, we’re well positioned to continue delivering differentiated growth, returns and value for our shareholders.” Selected third quarter 2025 highlights include: Primary insurance-in-force at quarter end was $218.4 billion , compared to $214.7 billion at the end of the second quarter and $207.5 billion at the end of the third quarter of 2024. Net premiums earned were $151.3 million , compared to $149.1 million in the second quarter and $143.3 million in the third quarter of 2024. Total revenue was $178.7 million , compared to $173.8 million in the second quarter and $166.1 million in the third quarter of 2024. Insurance claims and claim expenses were $18.6 million , compared to $13.4 million in the second quarter and $10.3 million in the third quarter of 2024. Loss ratio was 12.3%, compared to 9.0% in the second quarter and 7.2% in the third quarter of 2024. Underwriting and operating expenses were $29.2 million , compared to $29.5 million in the second quarter and $29.2 million in the third quarter of 2024. Expense ratio was 19.3%, compared to 19.8% in the second quarter and 20.3% in the third quarter of 2024. Net income was $96.0 million , compared to $96.2 million in the second quarter and $92.8 million in the third quarter of 2024. Diluted EPS was $1.22 , compared to $1.21 in the second quarter and $1.15 in the third quarter of 2024. Adjusted net income was $95.7 million , compared to $96.5 million in the second quarter and $92.8 million in the third quarter of 2024. Adjusted diluted EPS was $1.21 , compared to $1.22 in the second quarter and $1.15 in the third quarter of 2024. Shareholders’ equity was $2.5 billion at quarter end and book value per share was $32.62 . Book value per share excluding the impact of net unrealized gains and losses in the investment portfolio was $33.32 , up 4% compared to $32.08 in the second quarter and 16% compared to $28.71 in the third quarter of 2024. Annualized return on equity for the quarter was 15.6%, compared to 16.2% in the second quarter and 17.5% in the third quarter of 2024. Annualized adjusted return on equity was 15.5%, compared to 16.3% in the second quarter and 17.5% in the third quarter of 2024. At quarter-end, total PMIERs available assets were $3.4 billion and net risk-based required assets were $2.0 billion . Quarter Ended Quarter Ended Quarter Ended Change(1) Change(1) 9/30/2025 6/30/2025 9/30/2024 Q/Q Y/Y INSURANCE METRICS ($billions) Primary Insurance -in-Force $ 218.4 $ 214.7 $ 207.5 2 % 5 % New Insurance Written - NIW 13.0 12.5 12.2 4 % 6 % FINANCIAL HIGHLIGHTS (Unaudited, $millions, except per share amounts) Net Premiums Earned $ 151.3 $ 149.1 $ 143.3 2 % 6 % Net Investment Income 26.8 24.9 22.5 7 % 19 % Insurance Claims and Claim Expenses 18.6 13.4 10.3 38 % 80 % Underwriting and Operating Expenses 29.2 29.5 29.2 (1) % — % Adjusted Net Income 95.7 96.5 92.8 (1) % 3 % Adjusted Diluted EPS $ 1.21 $ 1.22 $ 1.15 — % 6 % Book Value per Share (excluding net unrealized gains and losses)(2) $ 33.32 $ 32.08 $ 28.71 4 % 16 % Loss Ratio 12.3 % 9.0 % 7.2 % Expense Ratio 19.3 % 19.8 % 20.3 % (1) Percentages may not be replicated based on the rounded figures presented in the table.(2) Book value per share (excluding net unrealized gains and losses) is defined as total shareholders' equity, excluding the after-tax effects of unrealized gains and losses on our investment portfolio, divided by shares outstanding. Conference Call and Webcast Details The company will hold a conference call, which will be webcast live today, November 4, 2025 , at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time . The webcast will be available on the company's website, www.nationalmi.com , in the “Investor Relations” section. The conference call can also be accessed by dialing (844) 481-2708 in the U.S. , or (412) 317-0664 internationally, by referencing NMI Holdings, Inc. About NMI Holdings, Inc. NMI Holdings, Inc. (NASDAQ: NMIH), is the parent company of National Mortgage Insurance Corporation (National MI), a U.S. -based, private mortgage insurance company enabling low down payment borrowers to realize home ownership while protecting lenders and investors against losses related to a borrower's default. To learn more, please visit www.nationalmi.com . Cautionary Note Regarding Forward-Looking Statements Certain statements contained in this press release or any other written or oral statements made by or on behalf of the Company in connection therewith may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995 (the “PSLRA”). The PSLRA provides a “safe harbor” for any forward-looking statements. All statements other than statements of historical fact included in or incorporated by reference in this release are forward-looking statements, including any statements about our expectations, outlook, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance. These statements are often, but not always, made through the use of words or phrases such as “anticipate,” “believe,” “can,” “could,” “may,” “predict,” “assume,” “potential,” “should,” “will,” “estimate,” “perceive,” “plan,” “project,” “continuing,” “ongoing,” “expect,” “intend” and similar words or phrases. All forward-looking statements are only predictions and involve estimates, known and unknown risks, assumptions and uncertainties that may turn out to be inaccurate and could cause actual results to differ materially from those expressed in them. Many risks and uncertainties are inherent in our industry and markets. Others are more specific to our business and operations. Important factors that could cause actual events or results to differ materially from those indicated in such statements include, but are not limited to: changes in general economic, market and political conditions and policies (including changes in interest rates and inflation) and investment results or other conditions that affect the U.S. housing market or the U.S. markets for home mortgages, mortgage insurance, reinsurance and credit risk transfer markets, including the risk related to geopolitical instability, inflation, an economic downturn (including any decline in home prices) or recession, and their impacts on our business, operations and personnel; changes in the charters, business practices, policies, pricing or priorities of Fannie Mae and Freddie Mac (collectively, the GSEs), which may include decisions that have the impact of decreasing or discontinuing the use of mortgage insurance as credit enhancement generally, or with first-time homebuyers or on very high loan-to-value mortgages; or changes in the direction of housing policy objectives of the Federal Housing Finance Agency (“FHFA”), such as the FHFA’s priority to increase the accessibility to and affordability of homeownership for low-and-moderate income borrowers and underrepresented communities; our ability to remain an eligible mortgage insurer under the private mortgage insurer eligibility requirements (“PMIERs”) and other requirements imposed by the GSEs, which they may change at any time; retention of our existing certificates of authority in each state and the District of Columbia (“D.C.”) and our ability to remain a mortgage insurer in good standing in each state and D.C.; our future profitability, liquidity and capital resources; actions of existing competitors, including other private mortgage insurers and government mortgage insurers such as the Federal Housing Administration , the U.S. Department of Agriculture’s Rural Housing Service and the U.S. Department of Veterans Affairs , and potential market entry by new competitors or consolidation of existing competitors; adoption of new or changes to existing laws, rules and regulations that impact our business or financial condition directly or the mortgage insurance industry generally or their enforcement and implementation by regulators, including the implementation of the final rules defining and/or concerning “Qualified Mortgage” and “Qualified Residential Mortgage”; U.S. federal tax reform and other potential changes in tax law and their impact on us and our operations; legislative or regulatory changes to the GSEs’ role in the secondary mortgage market or other changes that could affect the residential mortgage industry generally or mortgage insurance industry in particular; potential legal and regulatory claims, investigations, actions, audits or inquiries that could result in adverse judgements, settlements, fines or other reliefs that could require significant expenditures or have other negative effects on our business; our ability to successfully execute and implement our capital plans, including our ability to access the equity, credit and reinsurance markets and to enter into, and receive approval of, reinsurance arrangements on terms and conditions that are acceptable to us, the GSEs and our regulators; lenders, the GSEs, or other market participants seeking alternatives to private mortgage insurance; our ability to implement our business strategy, including our ability to write mortgage insurance on high quality low down payment residential mortgage loans, implement successfully and on a timely basis, complex infrastructure, systems, procedures, and internal controls to support our business and regulatory and reporting requirements of the insurance industry; our ability to attract and retain a diverse customer base, including the largest mortgage originators; failure of risk management or pricing or investment strategies; decrease in the length of time our insurance policies are in force; emergence of unexpected claim and coverage issues, including claims exceeding our reserves or amounts we had expected to experience; potential adverse impacts arising from natural disasters including, with respect to affected areas, a decline in new business, adverse effects on home prices, and an increase in notices of default on insured mortgages; climate risk and efforts to manage or regulate climate risk by government agencies could affect our business and operations; potential adverse impacts arising from the occurrence of any man-made disasters or public health emergencies, including pandemics; the inability of our counter-parties, including third party reinsurers, to meet their obligations to us; failure to maintain, improve and continue to develop necessary information technology systems or the failure of technology providers to perform; effectiveness and security of our information technology systems and digital products and services, including the risks these systems, products or services may fail to operate as expected or planned, or expose us to cybersecurity or third-party risks (including the exposure of our confidential customer and other information); and ability to recruit, train and retain key personnel. These risks and uncertainties also include, but are not limited to, those set forth under the heading “Risk Factors” detailed in Item 1A of Part I of our Annual Report on Form 10-K for the year ended December 31, 2024 , as subsequently updated through other reports we file with the SEC . All subsequent written and oral forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. We caution you not to place undue reliance on any forward-looking statement, which speaks only as of the date on which it is made, and we undertake no obligation to publicly update or revise any forward-looking statement to reflect new information, future events or circumstances that occur after the date on which the statement is made or to reflect the occurrence of unanticipated events except as required by law. Use of Non-GAAP Financial Measures We believe the use of the non-GAAP measures of adjusted income before tax, adjusted net income, adjusted diluted EPS, adjusted return-on-equity, adjusted expense ratio, adjusted combined ratio and book value per share (excluding net unrealized gains and losses) enhance the comparability of our fundamental financial performance between periods, and provide relevant information to investors. These non-GAAP financial measures align with the way the company's business performance is evaluated by management. These measures are not prepared in accordance with GAAP and should not be viewed as alternatives to GAAP measures of performance. These measures have been presented to increase transparency and enhance the comparability of our fundamental operating trends across periods. Other companies may calculate these measures differently; their measures may not be comparable to those we calculate and present. Adjusted income before tax is defined as GAAP income before tax, excluding the pre-tax effects of net realized gains or losses from our investment portfolio, periodic costs incurred in connection with capital markets transactions, and other infrequent, unusual or non-operating items in the periods in which such items are incurred. Adjusted net income is defined as GAAP net income, excluding the after-tax effects of net realized gains or losses from our investment portfolio, periodic costs incurred in connection with capital markets transactions, and other infrequent, unusual or non-operating items in the periods in which such items are incurred. Adjustments to components of pre-tax income are tax effected using the applicable federal statutory tax rate for the respective periods. Adjusted diluted EPS is defined as adjusted net income divided by adjusted weighted average diluted shares outstanding. Adjusted weighted average diluted shares outstanding is defined as weighted average diluted shares outstanding, adjusted for changes in the dilutive effect of non-vested shares that would otherwise have occurred had GAAP net income been calculated in accordance with adjusted net income. There will be no adjustment to weighted average diluted shares outstanding in the periods that non-vested shares are anti-dilutive under GAAP. Adjusted return on equity is calculated by dividing adjusted net income on an annualized basis by the average shareholders' equity for the period. Adjusted expense ratio is defined as GAAP underwriting and operating expenses, excluding the pre-tax effects of periodic costs incurred in connection with capital markets transactions, divided by net premiums earned. Adjusted combined ratio is defined as the total of GAAP underwriting and operating expenses, excluding the pre-tax effects of periodic costs incurred in connection with capital markets transactions and insurance claims and claims expenses, divided by net premiums earned. Book value per share (excluding net unrealized gains and losses) is defined as total shareholders' equity, excluding the after-tax effects of unrealized gains and losses on investments, divided by shares outstanding. Although adjusted income before tax, adjusted net income, adjusted diluted EPS, adjusted return-on-equity, adjusted expense ratio, adjusted combined ratio and book value per share (excluding net unrealized gains and losses) exclude certain items that have occurred in the past and are expected to occur in the future, the excluded items: (1) are not viewed as part of the operating performance of our primary activities; or (2) are impacted by market, economic or regulatory factors and are not necessarily indicative of operating trends, or both. These adjustments, and the reasons for their treatment, are described below. (1) Net realized investment gains and losses . The recognition of net realized investment gains or losses can vary significantly across periods as the timing is highly discretionary and is influenced by factors such as market opportunities, tax and capital profile, and overall market cycles that do not reflect our current period operating results. (2) Capital markets transaction costs. Capital markets transaction costs result from activities that are undertaken to improve our debt profile or enhance our capital position through activities such as debt refinancing and capital markets reinsurance transactions that may vary in their size and timing due to factors such as market opportunities, tax and capital profile, and overall market cycles. (3) Other infrequent, unusual or non-operating items . Items that are the result of unforeseen or uncommon events, and are not expected to recur with frequency in the future. Identification and exclusion of these items provide clarity about the impact special or rare occurrences may have on our current financial performance. Past adjustments under this category include infrequent, unusual or non-operating adjustments related to severance, restricted stock modification and other expenses incurred in connection with the CEO transition announced in September 2021 and the effects of the release of the valuation allowance recorded against our net federal and certain state net deferred tax assets in 2016 and the re-measurement of our net deferred tax assets in connection with tax reform in 2017. We believe such items are infrequent or non-recurring in nature, and are not indicative of the performance of, or ongoing trends in, our primary operating activities or business. (4) Net unrealized gains and losses on investments. The recognition of net unrealized gains or losses on investment can vary significantly across periods and is influenced by factors such as interest rate movement, overall market and economic conditions, and tax and capital profiles. These valuation adjustments may not necessarily result in economic gains or losses and are not reflective of ongoing operations. Investor Contact John M. Swenson Vice President, Investor Relations & Treasury [email protected] Consolidated statements of operations and comprehensive income (unaudited) For the three months ended September 30 , For the nine months ended September 30 , 2025 2024 2025 2024 (In Thousands, except for per share data) Revenues Net premiums earned $ 151,323 $ 143,343 $ 449,755 $ 421,168 Net investment income 26,773 22,474 75,408 62,598 Net realized investment gains (losses) 321 (10) (55) (10) Other revenues 262 285 596 711 Total revenues 178,679 166,092 525,704 484,467 Expenses Insurance claims and claim expenses 18,554 10,321 36,477 14,291 Underwriting and operating expenses 29,156 29,160 88,839 87,305 Service expenses 162 208 388 539 Interest expense 7,124 7,076 21,345 29,794 Total expenses 54,996 46,765 147,049 131,929 Income before income taxes 123,683 119,327 378,655 352,538 Income tax expense 27,684 26,517 83,946 78,599 Net income $ 95,999 $ 92,810 $ 294,709 $ 273,939 Earnings per share Basic $ 1.24 $ 1.17 $ 3.78 $ 3.42 Diluted $ 1.22 $ 1.15 $ 3.72 $ 3.36 Weighted average common shares outstanding Basic 77,410 79,549 77,935 80,129 Diluted 78,830 81,045 79,315 81,484 Loss ratio(1) 12.3% 7.2% 8.1% 3.4% Expense ratio(2) 19.3% 20.3% 19.8% 20.7% Combined ratio(3) 31.5% 27.5% 27.9% 24.1% (1) Loss ratio is calculated by dividing insurance claims and claim expenses by net premiums earned.(2) Expense ratio is calculated by dividing underwriting and operating expenses by net premiums earned.(3) Combined ratio may not foot due to rounding. Consolidated balance sheets (unaudited) September 30, 2025 December 31, 2024 Assets (In Thousands, except for share data) Fixed maturities, available-for-sale, at fair value (amortized cost of $3,078,294 and $2,876,343 ) $ 3,015,560 $ 2,723,541 Cash and cash equivalents 130,439 54,308 Premiums receivable, net 85,733 82,804 Accrued investment income 25,790 22,386 Deferred policy acquisition costs, net 64,192 64,327 Software and equipment, net 22,762 25,681 Intangible assets and goodwill 3,634 3,634 Reinsurance recoverable 35,315 32,260 Prepaid federal income taxes 322,175 322,175 Other assets 21,593 18,857 Total assets $ 3,727,193 $ 3,349,973 Liabilities Debt $ 416,548 $ 415,146 Unearned premiums 49,796 65,217 Accounts payable and accrued expenses 93,407 103,164 Reserve for insurance claims and claim expenses 180,347 152,071 Deferred tax liability, net 463,264 386,192 Other liabilities 8,960 10,751 Total liabilities 1,212,322 1,132,541 Shareholders' equity Common stock: 77,095,871 and 78,600,726 shares outstanding as of September 30, 2025 and December 31, 2024 , respectively 884 879 Additional paid-in capital 1,010,550 1,004,692 Treasury Stock, at cost: 11,275,594 and 9,301,900 common shares as of September 30, 2025 and December 31, 2024 , respectively (320,877 ) (246,594 ) Accumulated other comprehensive loss, net of tax (53,654 ) (124,804 ) Retained earnings 1,877,968 1,583,259 Total shareholders' equity 2,514,871 2,217,432 Total liabilities and shareholders' equity $ 3,727,193 $ 3,349,973 Non-GAAP Financial Measure Reconciliations (unaudited) As of and for the three months ended For the nine months ended 9/30/2025 6/30/2025 9/30/2024 9/30/2025 9/30/2024 As Reported (In Thousands, except for per share data) Revenues Net premiums earned $ 151,323 $ 149,066 $ 143,343 $ 449,755 $ 421,168 Net investment income 26,773 24,949 22,474 75,408 62,598 Net realized investment gains (losses) 321 (400) (10) (55) (10) Other revenues 262 164 285 596 711 Total revenues 178,679 173,779 166,092 525,704 484,467 Expenses Insurance claims and claim expenses 18,554 13,445 10,321 36,477 14,291 Underwriting and operating expenses 29,156 29,508 29,160 88,839 87,305 Service expenses 162 110 208 388 539 Interest expense 7,124 7,115 7,076 21,345 29,794 Total expenses 54,996 50,178 46,765 147,049 131,929 Income before income taxes 123,683 123,601 119,327 378,655 352,538 Income tax expense 27,684 27,450 26,517 83,946 78,599 Net income $ 95,999 $ 96,151 $ 92,810 $ 294,709 $ 273,939 Adjustments: Net realized investment (gains) losses (321) 400 10 55 10 Capital markets transaction costs — — — — 6,966 Adjusted income before taxes 123,362 124,001 119,337 378,710 359,514 Income tax (benefit) expense on adjustments(1) (67) 84 2 12 1,465 Adjusted net income $ 95,745 $ 96,467 $ 92,818 $ 294,752 $ 279,450 Weighted average diluted shares outstanding 78,830 79,256 81,045 79,315 81,484 Diluted EPS $ 1.22 $ 1.21 $ 1.15 $ 3.72 $ 3.36 Adjusted diluted EPS $ 1.21 $ 1.22 $ 1.15 $ 3.72 $ 3.43 Return on equity 15.6 % 16.2 % 17.5 % 16.6 % 17.7 % Adjusted return on equity 15.5 % 16.3 % 17.5 % 16.6 % 18.1 % Expense ratio(2) 19.3 % 19.8 % 20.3 % 19.8 % 20.7 % Adjusted expense ratio(3) 19.3 % 19.8 % 20.3 % 19.8 % 20.7 % Combined ratio(4) 31.5 % 28.8 % 27.5 % 27.9 % 24.1 % Adjusted combined ratio(5) 31.5 % 28.8 % 27.5 % 27.9 % 24.1 % Book value per share(6) $ 32.62 $ 31.14 $ 27.67 Book value per share (excluding net unrealized gains and losses)(7) $ 33.32 $ 32.08 $ 28.71 (1) Marginal tax impact of non-GAAP adjustments is calculated based on our statutory U.S. federal corporate income tax rate of 21%, except for those items that are not eligible for an income tax deduction.(2) Expense ratio is calculated by dividing underwriting and operating expenses by net premiums earned.(3) Adjusted expense ratio is calculated by dividing adjusted underwriting and operating expense (underwriting and operating expenses excluding costs related to capital markets reinsurance transactions) by net premiums earned.(4) Combined ratio is calculated by dividing the total of underwriting and operating expenses and insurance claims and claim expenses by net premiums earned.(5) Adjusted combined ratio is calculated by dividing the total of adjusted underwriting and operating expenses (underwriting and operating expenses excluding costs related to capital market reinsurance transaction) and insurance claims and claim expenses by net premiums earned.(6) Book value per share is calculated by dividing total shareholders' equity by shares outstanding.(7) Book value per share (excluding net unrealized gains and losses) is defined as total shareholders' equity, excluding the after-tax effects of unrealized gains and losses on our investment portfolio, divided by shares outstanding. Historical Quarterly Data 2025 2024 September 30 June 30 March 31 December 31 September 30 (In Thousands, except for per share data) Revenues Net premiums earned $ 151,323 $ 149,066 $ 149,366 $ 143,520 $ 143,343 Net investment income 26,773 24,949 23,686 22,718 22,474 Net realized investment gains (losses) 321 (400) 24 33 (10) Other revenues 262 164 170 233 285 Total revenues 178,679 173,779 173,246 166,504 166,092 Expenses Insurance claims and claim expenses 18,554 13,445 4,478 17,253 10,321 Underwriting and operating expenses 29,156 29,508 30,175 31,092 29,160 Service expenses 162 110 116 184 208 Interest expense 7,124 7,115 7,106 7,102 7,076 Total expenses 54,996 50,178 41,875 55,631 46,765 Income before income taxes 123,683 123,601 131,371 110,873 119,327 Income tax expense 27,684 27,450 28,812 24,706 26,517 Net income $ 95,999 $ 96,151 $ 102,559 $ 86,167 $ 92,810 Earnings per share Basic $ 1.24 $ 1.23 $ 1.31 $ 1.09 $ 1.17 Diluted $ 1.22 $ 1.21 $ 1.28 $ 1.07 $ 1.15 Weighted average common shares outstanding Basic 77,410 77,987 78,407 78,997 79,549 Diluted 78,830 79,256 79,858 80,623 81,045 Other data Loss ratio(1) 12.3 % 9.0 % 3.0 % 12.0 % 7.2 % Expense ratio(2) 19.3 % 19.8 % 20.2 % 21.7 % 20.3 % Combined ratio(3) 31.5 % 28.8 % 23.2 % 33.7 % 27.5 % (1) Loss ratio is calculated by dividing insurance claims and claim expenses by net premiums earned.(2) Expense ratio is calculated by dividing underwriting and operating expenses by net premiums earned.(3) Combined ratio may not foot due to rounding. Portfolio Statistics The table below highlights trends in our primary portfolio as of the date and for the periods indicated. Primary portfolio trends As of and for the three months ended September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 ($ Values In Millions, except as noted below) New insurance written (NIW) $ 13,012 $ 12,464 $ 9,221 $ 11,925 $ 12,218 New risk written 3,399 3,260 2,428 3,134 3,245 Insurance-in-force (IIF)(1) 218,376 214,653 211,308 210,183 207,538 Risk-in-force (RIF)(1) 58,538 57,496 56,515 56,113 55,253 Policies in force (count)(1) 677,010 668,638 661,490 659,567 654,374 Average loan size ($ value in thousands) (1) $ 323 $ 321 $ 319 $ 319 $ 317 Coverage percentage(2) 26.8 % 26.8 % 26.7 % 26.7 % 26.6 % Loans in default (count)(1) 7,093 6,709 6,859 6,642 5,712 Default rate(1) 1.05 % 1.00 % 1.04 % 1.01 % 0.87 % Risk-in-force on defaulted loans(1) $ 600 $ 569 $ 567 $ 545 $ 468 Average net premium yield(3) 0.28 % 0.28 % 0.28 % 0.27 % 0.28 % Earnings from cancellations $ 0.7 $ 0.7 $ 0.6 $ 0.8 $ 0.8 Annual persistency(4) 83.9 % 84.1 % 84.3 % 84.6 % 85.5 % Quarterly run-off(5) 4.3 % 4.3 % 3.9 % 4.5 % 4.0 % (1) Reported as of the end of the period.(2) Calculated as end of period RIF divided by end of period IIF.(3) Calculated as net premiums earned, divided by average primary IIF for the period, annualized.(4) Defined as the percentage of IIF that remains on our books after a given twelve-month period.(5) Defined as the percentage of IIF that is no longer on our books after a given three-month period. NIW, IIF and Premiums The tables below present NIW and primary IIF, as of the dates and for the periods indicated. NIW For the three months ended September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 (In Millions) Monthly $ 12,727 $ 12,214 $ 9,049 $ 11,688 $ 11,978 Single 285 250 172 237 240 Total $ 13,012 $ 12,464 $ 9,221 $ 11,925 $ 12,218 Primary IIF As of September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 (In Millions) Monthly $ 201,671 $ 197,608 $ 193,856 $ 192,228 $ 189,241 Single 16,705 17,045 17,452 17,955 18,297 Total $ 218,376 $ 214,653 $ 211,308 $ 210,183 $ 207,538 The following table presents the amounts related to the company's quota-share reinsurance transactions (the 2018 QSR Transaction, 2020 QSR Transaction, 2021 QSR Transaction, 2022 QSR Transaction, 2022 Seasoned QSR Transaction, 2023 QSR Transaction, 2024 QSR Transaction, and 2025 QSR Transaction and collectively, the QSR Transactions), traditional reinsurance transactions (the 2022-1 XOL Transaction, 2022-2 XOL Transaction, 2022-3 XOL Transaction, 2023-1 XOL Transaction, 2023-2 XOL Transaction, 2024 XOL Transaction, and 2025 XOL Transaction and collectively, the XOL Transactions), and insurance-linked note transactions (the 2021-1 ILN Transaction, and 2021-2 ILN Transaction and collectively, the ILN Transactions) for the periods indicated. For the three months ended September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 (In Thousands) The QSR Transactions (1) Ceded risk-in-force $ 12,699,082 $ 12,764,708 $ 12,888,870 $ 13,024,200 $ 12,968,039 Ceded premiums earned (39,847) (40,227) (41,011) (41,596) (41,761) Ceded claims and claim expenses 4,123 3,253 523 4,075 2,449 Ceding commission earned 10,246 9,669 9,768 9,997 10,152 Profit commission 19,083 19,958 23,398 20,149 21,883 The XOL Transactions Ceded Premiums $ (10,656) $ (10,350) $ (10,168) $ (9,969) $ (9,760) The ILN Transactions (2) Ceded premiums $ (3,036) $ (3,244) $ (3,311) $ (4,217) $ (4,302) (1) Effective July 1, 2025 , NMIC terminated its coverage with all reinsurers under the 2016 QSR Transaction by mutual agreement on a cut-off basis.(2) Effective July 25, 2024 and December 27, 2024 , NMIC exercised its optional termination rights to terminate and commute its previously outstanding excess-of-loss reinsurance agreements with Oaktown Re III Ltd. and Oaktown Re V Ltd. , respectively. In connection with the terminations and commutations, the insurance-linked notes issued by Oaktown Re III Ltd. and Oaktown Re V Ltd. were redeemed in full with a distribution of remaining collateral assets. The tables below present our total NIW by FICO, loan-to-value (LTV) ratio, and purchase/refinance mix for the periods indicated. NIW by FICO For the three months ended For the nine months ended September 30 , 2025 June 30, 2025 September 30 , 2024 September 30 , 2025 September 30 , 2024 (In Millions) >= 760 $ 6,789 $ 6,523 $ 6,615 $ 18,283 $ 18,300 740-759 2,395 2,281 2,057 6,429 6,008 720-739 1,626 1,585 1,529 4,388 4,286 700-719 1,094 1,061 1,040 2,820 2,904 680-699 617 590 652 1,620 1,817 = 760 $ 109,470 $ 107,677 $ 103,764 740-759 39,273 38,426 36,830 720-739 30,275 29,825 28,930 700-719 20,355 20,049 19,654 680-699 13,447 13,381 13,326 = 760 $ 29,084 $ 28,596 $ 27,396 740-759 10,589 10,342 9,850 720-739 8,211 8,086 7,788 700-719 5,575 5,483 5,337 680-699 3,662 3,635 3,590

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