16 unchanged sentences
Since formation, we have sought to establish customer relationships with a broad group of mortgage lenders and build a diversified, high-quality insured portfolio.
−Removed: As of March 31, 2025, we had issued master policies with 2,101 customers, including national and regional mortgage banks, money center banks, credit unions, community banks, builder-owned mortgage lenders, internet-sourced lenders and other non-bank lenders.
−Removed: As of March 31, 2025, we had $211.3 billion of primary insurance-in-force (IIF) and $56.5 billion of primary risk-in-force (RIF).
+Added: As of June 30, 2025, we had issued master policies with 2,138 customers, including national and regional mortgage banks, money center banks, credit unions, community banks, builder-owned mortgage lenders, internet-sourced lenders and other non-bank lenders.
+Added: As of June 30, 2025, we had $214.7 billion of primary insurance-in-force (IIF) and $57.5 billion of primary risk-in-force (RIF).
We believe that our success in acquiring a large and diverse group of lender customers and growing a portfolio of high-quality IIF traces to our founding principles, whereby we aim to help qualified individuals achieve their homeownership goals, ensure that we remain a strong and credible counter-party, deliver a high-quality customer service experience, establish a differentiated risk management approach that emphasizes the individual underwriting review or validation of the vast majority of the loans we insure, utilizing our proprietary Rate GPS ® pricing platform to dynamically evaluate risk and price our policies, and foster a culture of collaboration and excellence that helps us attract and retain experienced industry leaders.
1 unchanged sentence
Our common stock trades on the Nasdaq under the symbol “NMIH.” Our headquarters is located in Emeryville, California.
−Removed: As of March 31, 2025, we had 230 employees.
+Added: As of June 30, 2025, we had 233 employees.
Our corporate website is located at www.nationalmi.com .
32 unchanged sentences
For single premiums, we receive a single premium payment at origination, which is earned over the estimated life of the policy.
−Removed: Substantially all of our single premium policies in force as of March 31, 2025 were non-refundable under most cancellation scenarios.
+Added: Substantially all of our single premium policies in force as of June 30, 2025 were non-refundable under most cancellation scenarios.
If non-refundable single premium policies are canceled, we immediately recognize
19 unchanged sentences
We expect to continue to evaluate reinsurance opportunities in the normal course of business.
−Removed: Quota Share Reinsurance
−Removed: NMIC is party to nine quota share reinsurance treaties – the 2016 QSR Transaction, effective September 1, 2016 and as modified January 1, 2025, the 2018 QSR Transaction, effective January 1, 2018 and as modified January 1, 2025, the 2020 QSR Transaction, effective April 1, 2020 and as amended January 1, 2024, the 2021 QSR Transaction, effective January 1, 2021 and as modified January 1, 2025, the 2022 QSR Transaction, effective October 1, 2021, the 2022 Seasoned QSR Transaction, effective July 1, 2022, the 2023 QSR Transaction, effective January 1, 2023, the 2024 QSR Transaction, effective January 1, 2024, and the 2025 QSR Transaction, effective January 1, 2025 – which we refer to collectively as the QSR Transactions.
−Removed: Under each of the QSR Transactions, NMIC cedes a proportional share of its risk on eligible policies to panels of third-party reinsurance providers.
−Removed: Each of the third-party reinsurance providers that is party to the QSR Transactions has an insurer financial strength rating of A- or better by S&P, A.M.
−Removed: Best or both.
−Removed: Under the terms of the 2016 QSR Transaction, NMIC cedes premiums written related to 20% of the risk on eligible primary policies written for all periods through December 31, 2017 in exchange for reimbursement of ceded claims and claim expenses on covered policies, a 20% ceding commission, and a profit commission of up to 60% that varies directly and inversely with ceded claims.
−Removed: Under the terms of the 2018 QSR Transaction, NMIC cedes premiums earned related to 24% of the risk on eligible policies written in 2018 and 20% of the risk on eligible policies written in 2019, in exchange for reimbursement of ceded claims and claim expenses on covered policies, a 20% ceding commission, and a profit commission of up to 61% that varies directly and inversely with ceded claims.
−Removed: Under the terms of the 2020 QSR Transaction, NMIC cedes premiums earned related to 21% of the risk on eligible policies written between April 1, 2020 and December 31, 2020, in exchange for reimbursement of ceded claims and claim expenses on covered po licies, a 36% ceding commission, and a profit commission of up to 50% that varies directly and inversely with ceded claims.
−Removed: Under the terms of the 2021 QSR Transaction, NMIC cedes premiums earned related to 22% of the risk on eligible policies written in 2021 (subject to an aggregate risk written limit which was exhausted on October 30, 2021), in exchange for reimbursement of ceded claims and claim expenses on covered policies, a 20% ceding commission, and a profit commission of up to 58% that varies directly and inversely with ceded claims.
−Removed: Under the terms of the 2022 QSR Transaction, NMIC cedes premiums earned related to 20% of the risk on eligible policies written between October 30, 2021 and December 31, 2022, in exchange for reimbursement of ceded claims and claim expenses on covered policies, a 20% ceding commission, and a profit commission of up to 62% that varies directly and inversely with ceded claims.
−Removed: Under the terms of the 2022 Seasoned QSR Transaction, NMIC cedes premiums earned related to 95% of the net risk on eligible policies primarily for a seasoned pool of mortgage insurance policies originated between January 1, 2013 to December 31, 2016 and July 1, 2019 to March 31, 2020, that had previously been covered under the retired Oaktown Re Ltd.
−Removed: and Oaktown Re IV Ltd.
−Removed: reinsurance transactions, after the consideration of coverage provided by other QSR Transactions, in exchange for reimbursement of ceded claims and claim expenses on covered policies, a 35% ceding commission, and a profit commission of up to 55% that varies directly and inversely with ceded claims.
−Removed: Under the terms of the 2023 QSR Transaction, NMIC cedes premiums earned related to 20% of the risk on eligible policies written in 2023, in exchange for reimbursement of ceded claims and claim expenses on covered policies, a 20% ceding commission, and a profit commission of up to 62% that varies directly and inversely with ceded claims.
−Removed: Under the terms of the 2024 QSR Transaction, NMIC cedes premiums earned related to 20% of the risk on eligible policies written in 2024, in exchange for reimbursement of ceded claims and claim expenses on covered policies, a 20% ceding commission, and a profit commission of up to 56% that varies directly and inversely with ceded claims.
−Removed: Under the terms of the 2025 QSR Transaction, NMIC cedes premiums earned related to 20% of the risk on eligible policies written in 2025, in exchange for reimbursement of ceded claims and claim expenses on covered policies, a 20% ceding commission, and a profit commission of up to 62% that varies directly and inversely with ceded claims.
−Removed: Concurrent with the placement of the 2025 QSR Transaction, NMIC entered into two additional sequential quota share reinsurance treaties that will provide coverage for mortgage insurance policies to be written in 2026 and 2027 (the 2026 QSR Transaction and 2027 QSR Transaction).
−Removed: Under the terms of the 2026 QSR Transaction, NMIC will cede premiums earned related to 20% of the risk on eligible policies written between January 1, 2026 and December 31, 2026, in exchange for reimbursement of ceded claims and claims expenses on covered policies, a 20% ceding commission, and a profit commission of up to 62% that varies directly and inversely with ceded claims.
−Removed: Under the terms of the 2027 QSR Transaction, NMIC will cede premiums earned related to 12% of the risk on eligible policies written between January 1, 2027 and December 31, 2027, in exchange for reimbursement of ceded claims and claims expenses on covered policies, a 20% ceding commission, and a profit commission of up to 61% that varies directly and inversely with ceded claims.
−Removed: NMIC may terminate any or all of the QSR Transactions without penalty if, due to a change in PMIERs requirements, it is no longer able to take full PMIERs asset credit for the RIF ceded under the respective agreements.
−Removed: Additionally, under the terms of the QSR Transactions, NMIC may elect to selectively terminate its engagement with individual reinsurers on a run-off basis ( i.e.
−Removed: , reinsurers continue providing coverage on all risk ceded prior to the termination date, with no new cessions going forward) or cut-off basis ( i.e.
−Removed: , the reinsurance arrangement is completely terminated with NMIC recapturing all previously ceded risk) under certain circumstances.
−Removed: Such selective termination rights arise when, among other reasons, a reinsurer experiences a deterioration in its capital position below a prescribed threshold and/or a reinsurer breaches (and fails to cure) its collateral posting obligations under the relevant agreement.
−Removed: Excess-of-Loss Reinsurance
−Removed: Traditional Reinsurance
−Removed: NMIC is party to seven excess-of-loss reinsurance agreements with broad panels of third-party reinsurers – the 2022-1 XOL Transaction, effective April 1, 2022, the 2022-2 XOL Transaction, effective July 1, 2022, the 2022-3 XOL Transaction, effective October 1, 2022, the 2023-1 XOL Transaction, effective January 1, 2023, the 2023-2 XOL Transaction, effective July 1, 2023, the 2024 XOL Transaction, effective January 1, 2024, and the 2025 XOL Transaction, effective January 1, 2025 – which
−Removed: we refer to collectively as the XOL Transactions.
−Removed: Each XOL Transaction provides NMIC with aggregate excess-of-loss reinsurance coverage on a defined portfolio of mortgage insurance policies.
−Removed: Under each agreement, NMIC retains a first layer of aggregate loss exposure on covered policies and the reinsurers then provide second layer loss protection up to a defined reinsurance coverage amount.
−Removed: The reinsurance coverage amount of each XOL Transaction is set to approximate the PMIERs minimum required assets of its reference pool and decreases from its peak over a ten-year period in the event the PMIERs minimum required assets of the pool declines.
−Removed: NMIC retains losses in excess of the outstanding reinsurance coverage amount.
−Removed: NMIC holds optional termination rights which provide it the discretion to terminate each XOL Transaction on or after a specified date.
−Removed: NMIC may also elect to terminate the XOL Transactions at any point if the outstanding reinsurance coverage amount amortizes to 10% or less of the reinsurance coverage amount provided at inception, or if it determines that it will no longer be able to take full PMIERs asset credit for the coverage.
−Removed: Additionally, under the terms of the treaties, NMIC may selectively terminate its engagement with individual reinsurers under certain circumstances.
−Removed: Such selective termination rights arise when, among other reasons, a reinsurer experiences a deterioration in its capital position below a prescribed threshold, and/or a reinsurer breaches (and fails to cure) its collateral posting obligation.
−Removed: Each of the third-party reinsurance providers that is party to the XOL Transactions has an insurer financial strength rating of A- or better by S&P, A.M.
−Removed: Best or both.
−Removed: The following table presents the inception date, covered production period, initial and current reinsurance coverage amount, and initial and current first layer retained aggregate loss under each outstanding XOL Transaction.
−Removed: Current amounts are presented as of March 31, 2025.
−Removed: ($ values in thousands) Inception Date Covered Production Initial Reinsurance Coverage Current Reinsurance Coverage Initial First Layer Retained Loss Current First Layer Retained Loss (1)
−Removed: 2022-1 XOL Transaction April 1, 2022 10/1/2021 – 3/31/2022 (2)
−Removed: $ 289,741 $ 173,584 $ 133,366 $ 131,513
−Removed: 2022-2 XOL Transaction July 1, 2022 4/1/2022 – 6/30/2022 (3)
−Removed: 154,306 126,085 78,906 76,275
−Removed: 2022-3 XOL Transaction October 1, 2022 7/1/2022 – 9/30/2022 96,779 82,134 106,265 104,496
−Removed: 2023-1 XOL Transaction January 1, 2023 10/1/2022 – 6/30/2023 89,864 76,752 146,513 145,137
−Removed: 2023-2 XOL Transaction
−Removed: July 1, 2023 7/1/2023 – 12/31/2023 100,777 92,728 136,875 136,646
−Removed: 2024 XOL Transaction
−Removed: January 1, 2024 1/1/2024 – 12/31/2024
−Removed: 162,500 162,500 312,172 312,172
−Removed: 2025 XOL Transaction (4)
−Removed: January 1, 2025 1/1/2025 – 12/31/2025
−Removed: 56,807 56,807 62,673 62,673
−Removed: (1) NMIC applies claims paid on covered policies against its first layer aggregate retained loss exposure and cedes reserves for incurred claims and claim expenses to each applicable XOL Transaction and recognizes a reinsurance recoverable if such incurred claims and claim expenses exceed its current first layer retained loss.
−Removed: (2) Approximately 1% of the production covered by the 2022-1 XOL Transaction has coverage reporting dates between October 21, 2019 and September 30, 2021.
−Removed: (3) Approximately 1% of the production covered by the 2022-2 XOL Transaction has coverage reporting dates between January 4, 2021 and March 31, 2022.
−Removed: (4) The initial reinsurance coverage, current reinsurance coverage, initial first layer retained loss and current first layer retained loss for the 2025 XOL Transaction will increase as incremental covered production is ceded under the transaction through December 31, 2025.
−Removed: Concurrent with the placement of the 2025 XOL, NMIC entered into an excess-of-loss reinsurance treaty that will provide aggregate coverage for mortgage insurance policies to be written in 2026 (the 2026 XOL Transaction).
−Removed: Under the terms of the agreement, NMIC will retain a first layer of aggregate loss exposure on covered policies and its reinsurance counterparties will then provide second layer loss protection up to a defined reinsurance coverage amount of $164.2 million.
−Removed: NMIC retains losses in excess of the respective reinsurance coverage amounts.
−Removed: Insurance-Linked Notes
−Removed: NMIC is party to reinsurance agreements with the Oaktown Re Vehicles that provide it with aggregate excess-of-loss reinsurance coverage on defined portfolios of mortgage insurance policies.
−Removed: Under each agreement, NMIC retains a first layer of aggregate loss exposure on covered policies and the respective Oaktown Re Vehicle then provides second layer loss protection up to a defined reinsurance coverage amount.
−Removed: NMIC then retains losses in excess of the respective reinsurance coverage amounts.
−Removed: The respective reinsurance coverage amounts provided by the Oaktown Re Vehicles decrease over a 12.5-year period as the underlying insured mortgages are amortized or repaid, and/or the mortgage insurance coverage is canceled.
−Removed: As the reinsurance coverage decreases, a prescribed amount of collateral held in trust by the Oaktown Re Vehicles is distributed to ILN Transaction noteholders as amortization of the outstanding insurance-linked note principal balances.
−Removed: The outstanding reinsurance coverage
−Removed: amounts stop amortizing, and the distribution of collateral assets to ILN Transaction noteholders and amortization of insurance-linked note principal is suspended if certain credit enhancement or delinquency thresholds, as defined in each agreement, are triggered (each, a Lock-Out Event).
−Removed: NMIC holds optional termination rights under each ILN Transaction, including, among others, an optional call feature which provides NMIC the discretion to terminate the transaction on or after a prescribed date, and a clean-up call if the outstanding reinsurance coverage amount amortizes to 10% or less of the reinsurance coverage amount at inception or if NMIC reasonably determines that changes to GSE or rating agency asset requirements would cause a material and adverse effect on the capital treatment afforded to NMIC under a given agreement.
−Removed: In addition, there are certain events that trigger mandatory termination of an agreement, including NMIC's failure to pay premiums or consent to reductions in a trust account to make principal payments to noteholders, among others.
−Removed: The following table presents the inception date, covered production period, initial and current reinsurance coverage amount, and initial and current first layer retained aggregate loss under each outstanding ILN Transaction.
−Removed: Current amounts are presented as of March 31, 2025.
−Removed: ( $ values in thousands)
−Removed: Inception Date Covered Production Initial Reinsurance Coverage Current Reinsurance Coverage Initial First Layer Retained Loss Current First Layer Retained Loss (1)
−Removed: 2021-1 ILN Transaction April 27, 2021 10/1/2020 – 3/31/2021 (2)
−Removed: $ 367,238 $ 130,299 $ 163,708 $ 162,769
−Removed: 2021-2 ILN Transaction October 26, 2021 4/1/2021 – 9/30/2021 (3)
−Removed: 363,596 224,149 146,229 144,866
−Removed: (1) NMIC applies claims paid on covered policies against its first layer aggregate retained loss exposure and cedes reserves for incurred claims and claim expenses to each applicable ILN Transaction and recognizes a reinsurance recoverable if such incurred claims and claim expenses exceed its current first layer retained loss.
−Removed: (2) Approximately 1% of the production covered by the 2021-1 ILN Transaction has coverage reporting dates between July 1, 2019 and September 30, 2020.
−Removed: (3) Approximately 2% of the production covered by the 2021-2 ILN Transaction has coverage reporting dates between July 1, 2019 and March 31, 2021.
See Item 1, “ Financial Statements - Notes to Condensed Consolidated Financial Statements - Note 5, Reinsurance” for further discussion of these third-party reinsurance arrangements.
3 unchanged sentences
NIW and primary IIF
−Removed: As of and for the three months ended
−Removed: March 31, 2025 March 31, 2024
+Added: As of and for the three months ended For the six months ended
+Added: June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024
(In Millions)
2 unchanged sentences
$ 12,464 $ 214,653 $ 12,503 $ 203,501 $ 21,685 $ 21,901
−Removed: NIW for the three months ended March 31, 2025 decreased 2% compared to the three months ended March 31, 2024.
−Removed: Primary IIF increased 6% at March 31, 2025 compared to March 31, 2024, primarily due to the NIW generated between such measurement dates, partially offset by the run-off of in-force policies.
−Removed: Our persistency rate was 84.3% at March 31, 2025 and 85.8% at March 31, 2024.
+Added: NIW for the three and six months ended June 30, 2025 was $12.5 billion and $21.7 billion, respectively, compared to $12.5 billion and $21.9 billion for the three and six months ended June 30, 2024, respectively.
+Added: Primary IIF increased 5% at June 30, 2025 compared to June 30, 2024, primarily due to the NIW generated between such measurement dates, partially offset by the run-off of in-force policies.
+Added: Our persistency rate was 84.1% at June 30, 2025 and 85.4% at June 30, 2024.
Our persistency rate remains historically high due to a continued slowdown in the pace of mortgage refinancing activity tied to the prevailing interest and mortgage rate environment.
1 unchanged sentence
Net premiums written and earned
−Removed: For the three months ended March 31,
+Added: For the three months ended June 30, For the six months ended June 30,
+Added: 2025 2024 2025 2024
(In Thousands)
1 unchanged sentence
Net premiums earned 149,066 141,168 298,432 277,825
−Removed: Net premiums written and earned increased 10% and 9%, respectively, during the three months ended March 31, 2025 compared to the three months ended March 31, 2024, primarily driven by growth in our monthly IIF and monthly pay premium receipts, as well as a decline in the total premiums ceded under the ILN Transactions.
+Added: Net premiums written increased 8% and 9%, respectively, and net premiums earned increased 6% and 7%, respectively, during the three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024, primarily driven by growth in our monthly IIF and monthly pay premium receipts, partially offset by an increase in the total premiums ceded under our reinsurance treaties.
Portfolio Statistics
2 unchanged sentences
Primary portfolio trends As of and for the three months ended
−Removed: March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024
+Added: June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024
($ Values In Millions, except as noted below)
34 unchanged sentences
The table below presents a summary of the change in total primary IIF for the dates and periods indicated.
−Removed: Primary IIF As of and for the three months ended March 31,
+Added: Primary IIF As of and for the three months ended June 30, As of and for the six months ended June 30,
+Added: 2025 2024 2025 2024
(In Millions)
7 unchanged sentences
The table below presents a summary of our primary IIF and RIF by book year as of the dates indicated.
−Removed: Primary IIF and RIF As of March 31,
+Added: Primary IIF and RIF As of June 30,
IIF RIF IIF RIF
15 unchanged sentences
We calculate the LTV of a loan as the percentage of the original loan amount to the original purchase value of the property securing the loan.
−Removed: For the three months ended March 31,
+Added: For the three months ended June 30, For the six months ended June 30,
+Added: 2025 2024 2025 2024
(In Millions)
7 unchanged sentences
Weighted average FICO 756 757 757 757
−Removed: For the three months ended March 31,
+Added: For the three months ended June 30, For the six months ended June 30,
+Added: 2025 2024 2025 2024
(In Millions)
6 unchanged sentences
NIW by purchase/refinance mix
−Removed: For the three months ended March 31,
+Added: For the three months ended June 30, For the six months ended June 30,
+Added: 2025 2024 2025 2024
(In Millions)
Purchase $ 11,813 $ 12,257 $ 20,635 $ 21,414
+Added: 651 246 1,050 487
Total $ 12,464 $ 12,503 $ 21,685 $ 21,901
The tables below present our total primary IIF and RIF by FICO and LTV, and total primary RIF by loan type as of the dates indicated.
−Removed: Primary IIF by FICO As of March 31,
+Added: Primary IIF by FICO As of June 30,
($ Values In Millions)
6 unchanged sentences
Total $ 214,653 100 % $ 203,501 100 %
−Removed: Primary RIF by FICO As of March 31,
+Added: Primary RIF by FICO As of June 30,
($ Values In Millions)
6 unchanged sentences
Total $ 57,496 100 % $ 53,956 100 %
−Removed: Primary IIF by LTV As of March 31,
+Added: Primary IIF by LTV As of June 30,
($ Values In Millions)
4 unchanged sentences
Total $ 214,653 100 % $ 203,501 100 %
−Removed: Primary RIF by LTV As of March 31,
+Added: Primary RIF by LTV As of June 30,
($ Values In Millions)
4 unchanged sentences
Total $ 57,496 100 % $ 53,956 100 %
−Removed: Primary RIF by Loan Type As of March 31,
+Added: Primary RIF by Loan Type As of June 30,
Fixed 98 % 98 %
3 unchanged sentences
Total 100 % 100 %
−Removed: The table below presents selected primary portfolio statistics, by book year, as of March 31, 2025.
−Removed: As of March 31, 2025
+Added: The table below presents selected primary portfolio statistics, by book year, as of June 30, 2025.
+Added: As of June 30, 2025
Book Year Original Insurance Written Remaining Insurance in Force % Remaining of Original Insurance Policies Ever in Force Number of Policies in Force Number of Loans in Default # of Claims Paid Incurred Loss Ratio (Inception to Date) (1)
18 unchanged sentences
The following table shows the distribution by state of our primary RIF as of the dates indicated.
−Removed: The distribution of our primary RIF as of March 31, 2025 is not necessarily representative of the geographic distribution we expect in the future.
−Removed: Top 10 primary RIF by state As of March 31,
+Added: The distribution of our primary RIF as of June 30, 2025 is not necessarily representative of the geographic distribution we expect in the future.
+Added: Top 10 primary RIF by state As of June 30,
California 10.1 % 10.1 %
2 unchanged sentences
Georgia 4.0 4.2
−Removed: Washington 3.9 3.9
Illinois 3.9 3.9
+Added: Washington 3.8 3.9
Virginia 3.7 3.8
24 unchanged sentences
The following table provides a reconciliation of the beginning and ending gross reserve balances for insurance claims and claim expenses:
−Removed: For the three months ended March 31,
+Added: For the three months ended June 30, For the six months ended June 30,
+Added: 2025 2024 2025 2024
(In Thousands)
10 unchanged sentences
Total claims and claim expenses incurred (4)
+Added: 13,112 276 17,590 3,970
Less claims paid:
2 unchanged sentences
Prior years (3)
+Added: 4,393 1,471 8,469 2,323
Reinsurance terminations (5)
+Added: (1,251) — (1,506) —
Total claims and claim expenses paid 3,252 1,471 7,073 2,323
7 unchanged sentences
For example, if a loan defaulted in a prior year and subsequently cured and later re-defaulted in the current year, the default would be included in the current year.
−Removed: Amounts are presented net of reinsurance and included $25.9 million attributed to net case reserves and $8.1 million attributed to net IBNR reserves for the three months ended March 31, 2025 and $25.9 million attributed to net case reserves and $6.6 million attributed to net IBNR reserves for the three months ended March 31, 2024.
+Added: Amounts are presented net of reinsurance and included $51.5 million attributed to net case reserves and $8.8 million attributed to net IBNR reserves for the six months ended June 30, 2025 and $43.1 million attributed to net case reserves and $6.4 million attributed to net IBNR reserves for the six months ended June 30, 2024.
(3) Related to insured loans with defaults occurring in prior years, which have been continuously in default before the start of the current year.
−Removed: Amounts are presented net of reinsurance and included $21.8 million attributed to net case reserves and $8.1 million attributed to net IBNR reserves for the three months ended March 31, 2025 and $22.4 million attributed to net case reserves and $6.3 million attributed to net IBNR reserves for the three months ended March 31, 2024.
−Removed: (4) Represents the settlement of reinsurance recoverables in conjunction with the termination of one reinsurer under the 2016, 2018 and 2021 QSR Transactions by mutual agreement on a cut-off basis with no termination fee.
+Added: Amounts are presented net of reinsurance and included $34.9 million attributed to net case reserves and $8.1 million attributed to net IBNR reserves for the six months ended June 30, 2025 and $39.2 million attributed to net case reserves and $6.3 million attributed to net IBNR reserves for the six months ended June 30, 2024.
+Added: (4) Excludes aggregate termination fees of $0.3 million for the six months ended June 30, 2025 incurred in connection with the respective amendments of the 2016, 2018 and 2021 QSR Transactions.
+Added: (5) Represents the settlement of reinsurance recoverables in conjunction with the respective amendments of the 2016, 2018 and 2021 QSR Transactions.
See Item 1, “ Financial Statements - Notes to Condensed Consolidated Financial Statements - Note 5, Reinsurance” for additional information.
1 unchanged sentence
We may increase or decrease our claim estimates and reserves as we learn additional information about individual defaulted loans and continue to observe and analyze loss development trends in our portfolio.
−Removed: Gross reserves of $108.4 million related to prior year defaults remained as of March 31, 2025.
+Added: Gross reserves of $86.5 million related to prior year defaults remained as of June 30, 2025.
The following table provides a reconciliation of the beginning and ending count of loans in default:
−Removed: For the three months ended March 31,
+Added: For the three months ended June 30, For the six months ended June 30,
+Added: 2025 2024 2025 2024
Beginning default inventory 6,859 5,109 6,642 5,099
4 unchanged sentences
Ending default inventory 6,709 4,904 6,709 4,904
−Removed: Ending default inventory increased from March 31, 2024 to March 31, 2025, primarily due to the growth and seasoning of our insured portfolio, partially offset by cure activity within our default population during the intervening period.
+Added: Ending default inventory increased from June 30, 2024 to June 30, 2025, primarily due to the growth and seasoning of our insured portfolio, as well as the emergence of storm-related defaults on insured loans in areas declared by the Federal Emergency Management Agency to be individual disaster zones, partially offset by cure activity within our default population during the intervening period.
The following table provides details of our claims paid, before giving effect to claims ceded under the QSR Transactions for the periods indicated:
−Removed: For the three months ended March 31,
+Added: For the three months ended June 30, For the six months ended June 30,
+Added: 2025 2024 2025 2024
($ Values In Thousands)
Number of claims paid (1)
+Added: 93 59 188 101
Total amount paid for claims $ 5,512 $ 1,877 $ 10,737 $ 3,022
Average amount paid per claim
−Removed: (1) Count includes 20 and 16 claims settled without payment during the three months ended March 31, 2025 and 2024, respectively.
+Added: $ 59 $ 32 $ 57 $ 30
+Added: 82 % 54 % 75 % 54 %
+Added: (1) Count includes 16 and 36 claims settled without payment during the three and six months ended June 30, 2025, respectively, and 19 and 35 claims settled without payment during the three and six months ended June 30, 2024, respectively.
(2) Severity represents the total amount of claims paid including claim expenses divided by the related RIF on the loan at the time the claim is perfected, and is calculated including claims settled without payment.
−Removed: We paid 95 and 42 claims during the three months ended March 31, 2025 and 2024, respectively.
+Added: We paid 93 and 188 claims during the three and six months ended June 30, 2025, respectively, and 59 and 101 claims during the three and six months ended June 30, 2024, respectively.
The number of claims paid in each period was modest relative to the size of our insured portfolio and we generally observe that the borrowers of the loans we insure are well-situated with strong credit profiles, stable 30-year fixed rate mortgages, manageable debt service obligations and significant appreciated equity in their homes.
An increase in the value of the homes collateralizing the mortgages we insure provides defaulted borrowers with alternative paths and incentives to cure their loan prior to the development of a claim.
−Removed: Our claims severity was 69% and 54% for the three months ended March 31, 2025 and 2024, respectively.
−Removed: Our claims severity for each period was below long-term industry norms and benefited from the same broad national house price appreciation that supported our claims paid experience.
−Removed: An increase in the value of the homes collateralizing the mortgages we insure provides additional equity support to our risk exposure and raises the prospect of a third-party sale of a foreclosed property, which can mitigate the severity of our settled claims.
+Added: Our claims severity was 82% and 75% for the three and six months ended June 30, 2025, respectively, compared to 54% for both the three and six months ended June 30, 2024.
+Added: The increase in claims severity for the three and six months ended June 30, 2025, was primarily due to a greater proportion of claims related to loans originated in recent years.
+Added: These loans generally have less accumulated equity than earlier vintages.
+Added: Lower equity in these loans reduces the likelihood of a third-party sale of a foreclosed property, resulting in higher claims payments and contributing to the overall increase in claim severity.
+Added: Our claims severity for each period was below long-term industry norms.
The number of claims paid and our severity experience in future periods may be impacted if developing economic cycles impose financial strain on borrowers, and each could increase if house price declines serve to limit the alternative paths and incentives to cure delinquencies that are available to defaulted borrowers or erode the equity value of the homes collateralizing the mortgages we insure.
1 unchanged sentence
Average reserve per default:
−Removed: As of March 31,
+Added: As of June 30,
(In Thousands)
3 unchanged sentences
(2) Amount includes claims adjustment expenses.
−Removed: Average reserve per default decreased from March 31, 2024 to March 31, 2025, due to changes in observed and forecasted housing market conditions and macroeconomic factors between the measurement dates, and an increase in the proportion of defaults that trace to storm-related activity year-on-year.
+Added: Average reserve per default decreased from June 30, 2024 to June 30, 2025, due to changes in observed and forecasted housing market conditions and macroeconomic factors between the measurement dates, and an increase in the proportion of defaults that trace to storm-related activity year-on-year.
We generally observe that storm-related defaults cure at higher rates than other similarly situated loans in default (in non-disaster zones) and scale our reserves accordingly.
17 unchanged sentences
The following table provides a comparison of the PMIERs available assets and net risk-based required asset amount as reported by NMIC as of the dates indicated:
−Removed: As of March 31,
+Added: As of June 30,
(In Thousands)
2 unchanged sentences
1,926,517 1,651,569
−Removed: Available assets were $3.2 billion at March 31, 2025, compared to $2.8 billion at March 31, 2024.
−Removed: The $409 million increase in available assets between the dates presented was primarily driven by NMIC's positive cash flow from operations during the intervening period, partially offset by the payment of an ordinary course dividend from NMIC to NMIH in May 2024.
−Removed: Net risk-based required assets were $1.9 billion at March 31, 2025, compared to $1.6 billion at March 31, 2024.
+Added: Available assets were $3.2 billion at June 30, 2025, compared to $2.8 billion at June 30, 2024.
+Added: The $417 million increase in available assets between the dates presented was primarily driven by NMIC's positive cash flow from operations during the intervening period, partially offset by the payment of an ordinary course dividend from NMIC to NMIH in June 2025.
+Added: Net risk-based required assets were $1.9 billion at June 30, 2025, compared to $1.7 billion at June 30, 2024.
The $275 million increase in the risk-based required asset amount between the dates presented was primarily due to the growth in our gross RIF and aggregate gross risk-based required asset amount.
4 unchanged sentences
Consolidated Results of Operations
−Removed: Consolidated statements of operations For the three months ended March 31, $ Change
+Added: Consolidated statements of operations For the three months ended June 30, $ Change
2025 2024 2025 vs.
2 unchanged sentences
Net investment income 24,949 20,688 4,261 21 %
−Removed: Net realized investment gains 24 — 24 NM (3)
+Added: Net realized investment losses (400) — (400) NM (4)
Other revenues 164 266 (102) (38) %
Total revenues 173,779 162,122 11,657 7 %
+Added: Insurance claims and claim expenses 13,445 276 13,169 NM (4)
+Added: Underwriting and operating expenses 29,508 28,330 1,178 4 %
+Added: Service expenses 110 194 (84) (43) %
+Added: Interest expense 7,115 14,678 (7,563) (52) %
+Added: Total expenses 50,178 43,478 6,700 15 %
+Added: Income before income taxes 123,601 118,644 4,957 4 %
+Added: Income tax expense 27,450 26,565 885 3 %
+Added: Net income $ 96,151 $ 92,079 $ 4,072 4 %
+Added: Earnings per share - Basic $ 1.23 $ 1.15 $ 0.08 7 %
+Added: Earnings per share - Diluted $ 1.21 $ 1.13 $ 0.08 7 %
+Added: Loss ratio (1)
+Added: Expense ratio (2)
+Added: 19.8 % 20.1 %
+Added: Combined ratio
+Added: 28.8 % 20.3 %
+Added: Consolidated statements of operations For the six months ended June 30, $ Change
+Added: 2025 2024 2025 vs.
+Added: Revenues ($ In Thousands, except for per share data)
+Added: Net premiums earned $ 298,432 $ 277,825 $ 20,607 7 %
+Added: Net investment income 48,635 40,124 8,511 21 %
+Added: Net realized investment losses (376) — (376) NM (4)
+Added: Other revenues 334 426 (92) (22) %
+Added: Total revenues 347,025 318,375 28,650 9 %
Insurance claims and claim expenses 17,923 3,970 13,953 351 %
13 unchanged sentences
26.0 % 22.4 %
−Removed: For the three months ended March 31, $ Change
+Added: For the three months ended June 30, $ Change
Non-GAAP financial measures (5)
4 unchanged sentences
Adjusted diluted EPS 1.22 1.20 0.02 2 %
+Added: For the six months ended June 30, $ Change
+Added: Non-GAAP financial measures (5)
+Added: 2025 2024 2025 vs.
+Added: ($ In Thousands, except for per share data)
+Added: Adjusted income before tax $ 255,348 $ 240,177 $ 15,171 6 %
+Added: Adjusted net income 199,007 186,632 12,375 7 %
+Added: Adjusted diluted EPS 2.50 2.28 0.22 10 %
(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.
+Added: (3) Combined ratio may not foot due to rounding.
(4) Not meaningful.
(5) See “ Explanation and Reconciliation of Our Use of Non-GAAP Financial Measures,” below.
−Removed: Net premiums earned increased during the three months ended March 31, 2025 compared to the three months ended March 31, 2024 primarily due to growth in our monthly IIF and monthly pay premium receipts, as well as a decline in the total premiums ceded under the ILN Transactions.
−Removed: Net investment income increased during the three months ended March 31, 2025 compared to the three months ended March 31, 2024 primarily due to growth in the size of our total invested asset base, as well as an increase in the book yield of our investment portfolio tied to the deployment of new cash flows and reinvestment of rolling maturities at incrementally higher rates.
−Removed: Other revenues represent underwriting fee revenue generated by our subsidiary, NMIS, which provides outsourced loan
−Removed: review services to mortgage loan originators.
+Added: Net premiums earned increased during the three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024 primarily due to growth in our monthly IIF and monthly pay premium receipts, partially offset by an
+Added: increase in the total premiums ceded under our reinsurance treaties.
+Added: Net investment income increased during the three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024 primarily due to growth in the size of our total invested asset base, as well as an increase in the book yield of our investment portfolio tied to the deployment of new cash flows and reinvestment of rolling maturities at incrementally higher rates.
+Added: Other revenues represent underwriting fee revenue generated by our subsidiary, NMIS, which provides outsourced loan review services to mortgage loan originators.
Changes in other revenues primarily reflect changes in NMIS' outsourced loan review volume.
2 unchanged sentences
We also incur service expenses in connection with NMIS' outsourced loan review activities.
−Removed: Insurance claims and claim expenses increased during the three months ended March 31, 2025 compared to the three months ended March 31, 2024 primarily due to an increase in the number of newly defaulted loans that emerged in the period and the establishment of initial reserves against such loans, as well as an increase in the average case reserve held against previously defaulted loans that aged in their delinquency status through the period, partially offset by the release of a portion of the reserves we established for anticipated claims payments in prior periods in connection with cure activity and the ongoing analysis of recent loss development trends.
−Removed: Underwriting and operating expenses increased during the three months ended March 31, 2025 compared to the three months ended March 31, 2024 primarily due to a decline in the ceding commission received under the 2022 Seasoned QSR Transaction in connection with the run-off of covered policies, partially offset by a decrease in the amortization of previously deferred policy acquisition costs.
+Added: Insurance claims and claim expenses increased during the three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024 primarily due to an increase in the number of newly defaulted loans that emerged in the respective periods and the establishment of initial reserves against such loans, as well as an increase in the average case reserves held against previously defaulted loans that aged in their delinquency status, partially offset by the release of a portion of the reserves we established for anticipated claims payments in prior periods in connection with cure activity and the ongoing analysis of recent loss development trends.
+Added: Underwriting and operating expenses increased during the three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024 primarily due to an increase in the recognition of non-cash stock-based compensation expenses and a decrease in the amortization of previously deferred policy acquisition costs.
Service expenses represent third-party costs incurred by NMIS in connection with the services it provides.
2 unchanged sentences
Interest expense primarily reflects the carrying costs of our outstanding debt.
−Removed: Interest expense declined during the three months ended March 31, 2025 compared to the three months ended March 31, 2024 in connection with the refinancing of our outstanding senior notes and revolving credit facility at reduced costs in May 2024.
+Added: Interest expense for the three and six months ended June 30, 2024 includes $7.0 million of non-recurring costs related to the refinancing of the 2020 Notes and 2021 Revolving Credit Facility.
See Item 1, “ Financial Statements - Notes to Condensed Consolidated Financial Statements - Note 4, Debt.”
−Removed: Income tax expense increased during the three months ended March 31, 2025 compared to the three months ended March 31, 2024 primarily due to the growth in our pre-tax income.
−Removed: Our effective tax rate on pre-tax income was 21.9% for the three months ended March 31, 2025, compared to 22.3% for the three months ended March 31, 2024.
+Added: Income tax expense increased during the three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024 primarily due to the growth in our pre-tax income.
+Added: Our effective tax rate on pre-tax income was 22.2% and 22.1% for the three and six months ended June 30, 2025, respectively, compared to 22.4% and 22.3% for the three and six months ended June 30, 2024, respectively.
taxpayer, we are subject to a statutory U.S.
1 unchanged sentence
Our provision for income taxes for interim periods is established based on our estimated annual effective tax rate for a given year and reflects the impact of discrete tax effects in the period in which they occur.
−Removed: Our effective tax rates for the three months ended March 31, 2025 and 2024 include the discrete tax effects of the vesting of RSUs.
+Added: Our effective tax rates for the three and six months ended June 30, 2025 and 2024 include the discrete tax effects of the vesting of RSUs.
See Item 1, “ Financial Statements - Notes to Condensed Consolidated Financial Statements - Note 9, Income Taxes.”
−Removed: Net income and adjusted net income increased during the three months ended March 31, 2025 compared to the three months ended March 31, 2024 primarily due to growth in our total revenues, partially offset by increases in our income tax expense, insurance claims and claim expenses, and underwriting and operating expenses.
−Removed: Net income and adjusted net income for the three months ended March 31, 2025 further benefited from a decline in our interest expense.
−Removed: Diluted and adjusted diluted EPS increased during the three months ended March 31, 2025 compared to the three months ended March 31, 2024 primarily due to growth in our net income and adjusted net income, as well as a decline in the number of weighted average diluted shares outstanding tied to share repurchase activity.
+Added: Net income increased during the three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024, primarily due to growth in our total revenues, partially offset by increases in our insurance claims and claim expenses, income tax expense, and underwriting and operating expenses.
+Added: Adjusted net income for both the three and six months ended June 30, 2025 reflects a $0.4 million adjustment for net realized investment losses and adjusted net income for both the three and six months ended June 30, 2024 reflects a $7.0 million adjustment for non-recurring costs incurred in connection with the refinancing of the 2020 Notes and 2021 Revolving Credit Facility.
+Added: Diluted and adjusted diluted EPS increased during the three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024 primarily due to growth in our net income, as well as a decline in the number of weighted average diluted shares outstanding tied to share repurchase activity.
The non-GAAP financial measures of adjusted income before tax, adjusted net income and adjusted diluted EPS are presented to enhance the comparability of financial results between periods.
−Removed: Non-GAAP Financial Measure Reconciliations For the three months ended March 31, $ Change
+Added: Non-GAAP Financial Measure Reconciliations For the three months ended June 30, $ Change
2025 2024 2025 vs.
3 unchanged sentences
Net income $ 96,151 $ 92,079 $ 4,072 4 %
−Removed: Net realized investment gains
+Added: Net realized investment losses
400 — 400 NM (2)
+Added: Capital markets transaction costs
+Added: — 6,966 (6,966) NM (2)
Adjusted income before tax $ 124,001 $ 125,610 $ (1,609) (1) %
−Removed: Income tax benefit on adjustments (1)
+Added: Income tax expense on adjustments (1)
+Added: 84 1,463 (1,379) (94) %
Adjusted net income $ 96,467 $ 97,582 $ (1,115) (1) %
1 unchanged sentence
Adjusted diluted EPS $ 1.22 $ 1.20 $ 0.02 2 %
+Added: Non-GAAP Financial Measure Reconciliations For the six months ended June 30, $ Change
+Added: 2025 2024 2025 vs.
+Added: As reported ($ In Thousands, except for per share data)
+Added: Income before income taxes $ 254,972 $ 233,211 $ 21,761 9 %
+Added: Income tax expense 56,262 52,082 4,180 8 %
+Added: Net income $ 198,710 $ 181,129 $ 17,581 10 %
+Added: Net realized investment losses
+Added: 376 — 376 NM (2)
+Added: Capital markets transaction costs
+Added: — 6,966 (6,966) NM (2)
+Added: Adjusted income before tax $ 255,348 $ 240,177 $ 15,171 6 %
+Added: Income tax expense on adjustments (1)
+Added: 79 1,463 (1,384) (95) %
+Added: Adjusted net income $ 199,007 $ 186,632 $ 12,375 7 %
+Added: Weighted average diluted shares outstanding 79,557 81,703 (2,146) (3) %
+Added: Adjusted diluted EPS $ 2.50 $ 2.28 $ 0.22 10 %
(1) Marginal tax impact of non-GAAP adjustments is calculated based on our statutory U.S.
27 unchanged sentences
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.
−Removed: Consolidated balance sheets March 31, 2025 December 31, 2024 $ Change
+Added: Consolidated balance sheets June 30, 2025 December 31, 2024 $ Change
(In Thousands)
17 unchanged sentences
Total liabilities and shareholders' equity $ 3,591,085 $ 3,349,973 $ 241,112 7 %
−Removed: Total cash and investments increased at March 31, 2025 compared to December 31, 2024 with the addition of incremental cash provided by operating activities and a decrease in the unrealized loss position of our fixed income portfolio primarily tied to changes in interest rates, partially offset by share repurchase activity during the three months ended March 31, 2025.
−Removed: Cash and investments at March 31, 2025 included $76.4 million held by NMIH.
+Added: Total cash and investments increased at June 30, 2025 compared to December 31, 2024 with the addition of incremental cash provided by operating activities and a decrease in the unrealized loss position of our fixed income portfolio primarily tied to changes in interest rates during the six months ended June 30, 2025, partially offset by share repurchase activity during the period.
+Added: Cash and investments at June 30, 2025 included $168.8 million held by NMIH.
Net premiums receivable represents premiums due on our mortgage insurance policies and may fluctuate based on changes in our monthly premium policies in force, where premiums are generally paid one month in arrears, and the pace of settlement of previously outstanding receivables.
−Removed: Net deferred policy acquisition costs decreased at March 31, 2025 compared to December 31, 2024 primarily due to the recognition of previously deferred policy acquisition costs during the three months ended March 31, 2025, partially offset by the deferral of certain costs associated with the origination of new policies during the period.
−Removed: Net software and equipment decreased at March 31, 2025 compared to December 31, 2024 primarily due to the amortization of previously capitalized amounts during three months ended March 31, 2025.
−Removed: Reinsurance recoverable decreased at March 31, 2025 compared to December 31, 2024 due to a decline in ceded losses recoverable under the QSR Transactions tied to a decline in our gross reserve for insurance claims and claim expenses.
+Added: Net deferred policy acquisition costs decreased at June 30, 2025 compared to December 31, 2024 primarily due to the recognition of previously deferred policy acquisition costs during the six months ended June 30, 2025, partially offset by the deferral of certain costs associated with the origination of new policies during the period.
+Added: Net software and equipment decreased at June 30, 2025 compared to December 31, 2024 primarily due to the amortization of previously capitalized amounts during the six months ended June 30, 2025.
+Added: Reinsurance recoverable increased at June 30, 2025 compared to December 31, 2024 due to an increase in ceded losses recoverable under the QSR Transactions tied to an increase in our gross reserve for insurance claims and claim expenses.
Prepaid federal income taxes represent tax and loss bonds purchased in connection with our claimed tax deduction for our statutory contingency reserve position.
See Item 1, “ Financial Statements - Notes to Condensed Consolidated Financial Statements - Note 9, Income Taxes.”
−Removed: Other assets increased at March 31, 2025 compared to December 31, 2024 primarily due to an increase in accrued investment income and prepaid expenses.
−Removed: Unearned premiums decreased at March 31, 2025 compared to December 31, 2024 due to the amortization of existing unearned premiums through earnings in accordance with the expiration of risk on related single premium policies and the cancellations of other single premium policies during the three months ended March 31, 2025, partially offset by single premium policy originations during the period.
−Removed: Accounts payable and accrued expenses decreased at March 31, 2025 compared to December 31, 2024 primarily due to the settlement of previously accrued compensation expenses, accrued interest on the 2024 Notes, which is payable semi-annually in February and August, and premium taxes payable during the three months ended March 31, 2025.
−Removed: Reserve for insurance claims and claim expenses decreased at March 31, 2025 compared to December 31, 2024 due to the release of a portion of the reserves we established for anticipated claims payments in prior periods (in connection with cure activity and ongoing analysis of recent loss development trends), as well as the payment of previously reserved claims during the three months ended March 31, 2025.
−Removed: The decrease was partially offset by the establishment of initial reserves on newly defaulted loans and an increase in the average case reserve held against previously defaulted loans that aged in their delinquent status during the period.
+Added: Other assets increased at June 30, 2025 compared to December 31, 2024 primarily due to an increase in current income taxes receivable and accrued investment income.
+Added: Unearned premiums decreased at June 30, 2025 compared to December 31, 2024 due to the amortization of existing unearned premiums through earnings in accordance with the expiration of risk on related single premium policies and the cancellations of other single premium policies during the six months ended June 30, 2025, partially offset by single premium policy originations during the period.
+Added: Accounts payable and accrued expenses decreased at June 30, 2025 compared to December 31, 2024 primarily due to the settlement of previously accrued compensation expenses, accrued interest on the 2024 Notes, which is payable semi-annually in February and August, and premium and other taxes payable during the six months ended June 30, 2025.
+Added: Reserve for insurance claims and claim expenses increased at June 30, 2025 compared to December 31, 2024 with the establishment of initial reserves on newly defaulted loans and an increase in the average case reserves held against previously defaulted loans that aged in their delinquent status during the six months ended June 30, 2025.
+Added: The increase was partially offset by the release of a portion of the reserves we established for anticipated claims payments in prior periods (in connection with cure activity and ongoing analysis of recent loss development trends), as well as the payment of previously reserved claims during the period.
See “ Insurance Claims and Claim Expenses ,” above for further details.
−Removed: Net deferred tax liability increased at March 31, 2025 compared to December 31, 2024 due to an increase in the claimed deductibility of our statutory contingency reserve, as well as a decrease in the aggregate unrealized loss position of our fixed income portfolio recorded in other comprehensive income.
+Added: Net deferred tax liability increased at June 30, 2025 compared to December 31, 2024 due to an increase in the claimed deductibility of our statutory contingency reserve, as well as a decrease in the aggregate unrealized loss position of our fixed income portfolio recorded in other comprehensive income.
For further information regarding income taxes and their impact on our results of operations and financial position, see Item 1, “ Financial Statements - Notes to Condensed Consolidated Financial Statements - Note 9, Income Taxes .”
The following table summarizes our consolidated cash flows from operating, investing and financing activities:
−Removed: Consolidated cash flows For the three months ended March 31, $ Change
+Added: Consolidated cash flows For the six months ended June 30, $ Change
2025 2024 2025 vs.
4 unchanged sentences
Financing activities (58,016) (51,057) (6,959) 14 %
−Removed: Net increase in cash and cash equivalents
+Added: Net increase (decrease) in cash and cash equivalents
$ 29,705 $ (34,060) $ 63,765 (187) %
−Removed: Net cash provided by operating activities decreased during the three months ended March 31, 2025 compared to the three months ended March 31, 2024 primarily due to the first semi-annual interest payment made on the 2024 Notes in February 2025, partially offset by an increase in our net premiums receipts and growth in our investment income.
−Removed: Cash used in investing activities for the three months ended March 31, 2025 and 2024 reflects the purchase of fixed and short-term maturities with cash provided by operating activities, and the reinvestment of coupon payments, maturities and redemption proceeds within our investment portfolio.
+Added: Net cash provided by operating activities increased during the six months ended June 30, 2025 compared to the six months ended June 30, 2024 primarily due to an increase in our net premiums receipts and growth in our investment income, largely offset by an increase in income taxes and claims and claim expenses paid.
+Added: Cash used in investing activities for the six months ended June 30, 2025 and 2024 reflects the purchase of fixed and short-term maturities with cash provided by operating activities, and the reinvestment of coupon payments, sales, maturities and redemption proceeds within our investment portfolio.
Cash used in financing activities primarily relates to the repurchase of common stock and taxes paid on the net share settlement of equity awards for certain employees.
+Added: Cash used in financing activities for the six months ended June 30, 2024 benefitted from the net impact of the issuance of the 2024 Notes and redemption of the 2020 Notes during the period.
Liquidity and Capital Resources
9 unchanged sentences
Delaware law provides that dividends are only payable out of a corporation's surplus or recent net profits (subject to certain limitations).
−Removed: As of March 31, 2025, NMIH had $76.4 million of cash and cash equivalents, and investments.
+Added: As of June 30, 2025, NMIH had $168.8 million of cash and cash equivalents, and investments.
NMIH ’ s principal sources of net cash are dividends from its subsidiaries and investment income.
−Removed: NMIC has the capacity to pay $98.4 million of aggregate ordinary dividends to NMIH during the twelve-month period ending December 31, 2025.
+Added: NMIC paid a $98.4 million ordinary course dividend to NMIH on June 2, 2025, representing its full ordinary course dividend capacity payable under Wisconsin insurance laws for the twelve-month period ending December 31, 2025.
NMIH also has access to $250 million of undrawn revolving credit capacity under the 2024 Revolving Credit Facility.
−Removed: On July 31, 2023, our Board of Directors authorized the $200 million 2023 Repurchase Program (excluding associated costs and applicable taxes) effective through December 31, 2025.
−Removed: On February 5, 2025, our Board of Directors authorized the new $250 million 2025 Repurchase Program (excluding associated costs and applicable taxes) effective through December 31, 2027 and extended the 2023 Repurchase Program through December 31, 2027 to align its remaining tenor with that of the 2025 Repurchase Program.
+Added: On July 31, 2023, our Board of Directors authorized a $200 million repurchase program (the 2023 Repurchase Program), effective through December 31, 2025.
+Added: On February 5, 2025, our Board of Directors authorized a new $250 million repurchase program (the 2025 Repurchase Program), effective through December 31, 2027, and extended the effectiveness of the 2023
+Added: Repurchase Program through December 31, 2027 to align its remaining tenor with that of the 2025 Repurchase Program.
The authorization provides NMIH the flexibility, based on market and business conditions, stock price and other factors, to repurchase stock from time to time through open market repurchases, privately negotiated transactions, or other means, including pursuant to Rule 10b5-1 trading plans.
−Removed: During the three months ended March 31, 2025, NMIH repurchased 0.7 million shares of common stock at a total cost of $26.1 million, including associated costs and applicable taxes.
−Removed: As of March 31, 2025, NMIH had $304.2 million of repurchase authority remaining.
+Added: During the six months ended June 30, 2025, NMIH repurchased 1.3 million shares of common stock at a total cost of $49.5 million, including associated costs and applicable taxes.
+Added: As of June 30, 2025, NMIH had $281.0 million of repurchase authority remaining.
NMIH has entered into tax and expense-sharing agreements with its subsidiaries which have been approved by the Wisconsin OCI, with such approvals subject to change or revocation at any time.
4 unchanged sentences
Under the 2024 Revolving Credit Facility, NMIH is required to pay a quarterly commitment fee on the average daily undrawn amount of 0.175% to 0.525%, based on the applicable corporate credit rating at the time.
−Removed: As of March 31, 2025, the applicable commitment fee was 0.225%.
+Added: As of June 30, 2025, the applicable commitment fee was 0.225%.
We are subject to certain covenants under the 2024 Revolving Credit Facility, including:
a maximum debt-to-total capitalization ratio of 35%, a minimum consolidated net worth requirement (as defined therein), and a requirement to maintain compliance with the financial standards prescribed by the PMIERs (subject to any GSE approved waivers).
−Removed: We were in compliance with all covenants at March 31, 2025.
+Added: We were in compliance with all covenants at June 30, 2025.
NMIC and Re One are subject to certain capital and dividend rules and regulations prescribed by jurisdictions in which they are authorized to operate and by the GSEs.
2 unchanged sentences
Under Wisconsin insurance laws, an extraordinary dividend is defined as any payment or distribution that, together with other dividends and distributions made within the preceding twelve months, exceeds the lesser of (i) 10% of the insurer's statutory policyholders' surplus as of the preceding December 31 or (ii) adjusted statutory net income for the twelve-month period ending the preceding December 31 .
−Removed: NMIC has the capacity to pay $98.4 million of aggregate ordinary dividends to NMIH during the twelve-month period ending December 31, 2025.
−Removed: As an approved insurer under PMIERs, NMIC would generally be subject to additional restrictions on its ability to pay
−Removed: dividends to NMIH if it failed to meet the financial requirements prescribed by PMIERs.
+Added: On June 2, 2025, NMIC paid a $98.4 million ordinary course dividend to NMIH, representing its full ordinary course dividend capacity payable under Wisconsin insurance laws for the twelve-month period ending December 31, 2025.
+Added: As an approved insurer under PMIERs, NMIC would generally be subject to additional restrictions on its ability to pay dividends to NMIH if it failed to meet the financial requirements prescribed by PMIERs.
Approved insurers that fail to meet the prescribed PMIERs financial requirements are not permitted to pay dividends without prior approval from the GSEs.
19 unchanged sentences
As such, the PMIERs generally imposes a stricter financial requirement than the state RTC standard.
−Removed: As of March 31, 2025, NMIC had a RTC ratio of 12.6:1 with $37.9 billion of performing primary RIF, net of reinsurance, and $3.0 billion of total statutory capital, including contingency reserves.
+Added: As of June 30, 2025, NMIC had a RTC ratio of 13.1:1 with $39.7 billion of performing primary RIF, net of reinsurance, and $3.0 billion of total statutory capital, including contingency reserves.
Re One has no risk in force remaining and no longer reports a RTC ratio.
NMIC’s principal sources of liquidity include (i) premium receipts on its insured portfolio and new business production, (ii) interest income on its investment portfolio and principal repayments on maturities therein, and (iii) existing cash and cash equivalent holdings.
−Removed: At March 31, 2025, NMIC had $2.8 billion of cash and investments, including $29.3 million of cash and cash equivalents.
+Added: At June 30, 2025, NMIC had $2.8 billion of cash and investments, including $36.1 million of cash and cash equivalents.
NMIC's principal liquidity demands include funds for the payment of (i) reimbursable holding company expenses, (ii) premiums ceded under our reinsurance transactions (iii) claims payments, and (iv) taxes as due or otherwise deferred through the purchase of tax and loss bonds.
NMIC's cash inflow is generally significantly in excess of its cash outflow in any given period.
−Removed: During the twelve-month period ended March 31, 2025, NMIC generated $388 million of cash flow from operations and received an additional $222 million of cash flow on the maturity and redemption of securities held in its investment portfolio.
+Added: During the twelve-month period ended June 30, 2025, NMIC generated $378 million of cash flow from operations and received an additional $226 million of cash flow on the maturity and redemption of securities held in its investment portfolio.
NMIC is not a party to any contracts (derivative or otherwise) that require it to post an increasing amount of collateral to any counterparty and NMIC’s principal liquidity demands (other than claims payments) generally develop along a scheduled path ( i.e.
13 unchanged sentences
Our investment portfolio is comprised entirely of fixed maturity instruments.
−Removed: As of March 31, 2025, the fair value of our investment portfolio was $2.8 billion and we held an additional $74.2 million of cash and cash equivalents.
−Removed: Pre-tax book yield on the investment portfolio for the three months ended March 31, 2025 was 3.2%.
+Added: As of June 30, 2025, the fair value of our investment portfolio was $2.9 billion and we held an additional $84.0 million of cash and cash equivalents.
+Added: Pre-tax book yield on the investment portfolio for the six months ended June 30, 2025 was 3.2%.
Book yield is calculated as period-to-date net investment income divided by the average amortized cost of the investment portfolio.
1 unchanged sentence
The following tables present a breakdown of our investment portfolio and cash and cash equivalents by investment type and credit rating:
−Removed: Percentage of portfolio's fair value March 31, 2025 December 31, 2024
+Added: Percentage of portfolio's fair value June 30, 2025 December 31, 2024
Corporate debt securities 67 % 67 %
Municipal debt securities 21 23
+Added: Cash, cash equivalents, and short-term investments 7 5
treasury securities and obligations of U.S.
government agencies
−Removed: Cash, cash equivalents, and short-term investments 4 5
Asset-backed securities 1 1
1 unchanged sentence
Investment portfolio ratings at fair value (1)
−Removed: March 31, 2025 December 31, 2024
+Added: June 30, 2025 December 31, 2024
Total 100 % 100 %
2 unchanged sentences
(3) Includes +/– ratings.
−Removed: (4) We held one security with a BB+ rating at March 31, 2025 and December 31, 2024, which is not identifiable in the table due to rounding.
+Added: (4) We held two securities with a BB rating at June 30, 2025 and one security with a BB rating at December 31, 2024, which are not identifiable in the table due to rounding.
All of our investments are rated by one or more nationally recognized statistical rating organizations.
1 unchanged sentence
Investment Securities - Allowance for credit losses
−Removed: We did not recognize an allowance for credit loss for any security in the investment portfolio as of March 31, 2025 or December 31, 2024, and we did not record any provision for credit loss for investment securities during the three months ended March 31, 2025 or 2024.
−Removed: As of March 31, 2025, the investment portfolio had gross unrealized losses of $129.0 million, of which $126.3 million were associated with securities that had been in an unrealized loss position for a period of twelve months or longer.
−Removed: As of December 31, 2024, the investment portfolio had gross unrealized losses of $158.6 million, of which $150.8 million were
−Removed: associated with securities that had been in an unrealized loss position for a period of twelve months or longer.
−Removed: We evaluated the securities in an unrealized loss position as of March 31, 2025, assessing their credit ratings as well as any adverse conditions specifically related to the security.
−Removed: Based upon our assessment of the amount and timing of cash flows to be collected over the remaining life of each instrument, we believe the unrealized losses as of March 31, 2025 are not indicative of the ultimate collectability of the current amortized cost of the securities.
−Removed: Rather, the unrealized losses on securities held as of March 31, 2025 were primarily driven by fluctuations in interest rates, and to a lesser extent, movements in credit spreads following the purchase of those securities.
+Added: We did not recognize an allowance for credit loss for any security in the investment portfolio as of June 30, 2025 or December 31, 2024, and we did not record any provision for credit loss for investment securities during the three and six months ended June 30, 2025 or 2024.
+Added: As of June 30, 2025, the investment portfolio had gross unrealized losses of $109.9 million, of which $108.5 million were associated with securities that had been in an unrealized loss position for a period of twelve months or longer.
+Added: As of December 31, 2024, the investment portfolio had gross unrealized losses of $158.6 million, of which $150.8 million were associated with securities that had been in an unrealized loss position for a period of twelve months or longer.
+Added: We evaluated the securities in an unrealized loss position as of June 30, 2025, assessing their credit ratings as well as any adverse conditions specifically related to the security.
+Added: Based upon our assessment of the amount and timing of cash flows to be collected over the remaining life of each instrument, we believe the unrealized losses as of June 30, 2025 are not indicative of the ultimate collectability of the current amortized cost of the securities.
+Added: Rather, the unrealized losses on securities held as of June 30, 2025 were primarily driven by fluctuations in interest rates, and to a lesser extent, movements in credit spreads following the purchase of those securities.
Critical Accounting Estimates
8 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.