What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2025-11-05 compared with 2025-07-30 · 128 added, 130 removed, 598 unchanged (30% of the section changed)

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.

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.

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).

As of September 30, 2025, we had issued master policies with 2,172 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.

As of September 30, 2025, we had $218.4 billion of primary insurance-in-force (IIF) and $58.5 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.

As of June 30, 2025, we had 233 employees.

As of September 30, 2025, we had 228 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.

Substantially all of our single premium policies in force as of June 30, 2025 were non-refundable under most cancellation scenarios.

Substantially all of our single premium policies in force as of September 30, 2025 were non-refundable under most cancellation scenarios.

If non-refundable single premium policies are canceled, we immediately recognize

24 unchanged sentences

NIW and primary IIF

As of and for the three months ended For the six months ended

June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024

As of and for the three months ended For the nine months ended

September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024

(In Millions)

2 unchanged sentences

$ 13,012 $ 218,376 $ 12,218 $ 207,538 $ 34,697 $ 34,119

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.

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.

Our persistency rate was 84.1% at June 30, 2025 and 85.4% at June 30, 2024.

NIW increased 6% and 2%, respectively, during the three and nine months ended September 30, 2025 compared to the three and nine months ended September 30, 2024.

NIW increased year-on-year primarily due to growth in our customer franchise and market presence tied to the increased penetration of existing customer accounts and new customer activations.

Primary IIF increased 5% at September 30, 2025 compared to September 30, 2024, primarily due to the NIW generated between such measurement dates, partially offset by the run-off of in-force policies.

Our persistency rate was 83.9% at September 30, 2025 and 85.5% at September 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

For the three months ended June 30, For the six months ended June 30,

For the three months ended September 30, For the nine months ended September 30,

2025 2024 2025 2024

2 unchanged sentences

Net premiums earned 151,323 143,343 449,755 421,168

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.

Net premiums written increased 8% during both the three and nine months ended September 30, 2025 compared to the three and nine months ended September 30, 2024.

Net premiums earned increased 6% and 7%, respectively, during the three and nine months ended September 30, 2025 compared to the three and nine months ended September 30, 2024.

The growth in net premiums written and earned in each respective period was primarily driven by growth in our monthly IIF and monthly pay premium receipts.

Portfolio Statistics

2 unchanged sentences

Primary portfolio trends As of and for the three months ended

June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024

September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 September 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.

Primary IIF As of and for the three months ended June 30, As of and for the six months ended June 30,

Primary IIF As of and for the three months ended September 30, As of and for the nine months ended September 30,

2025 2024 2025 2024

8 unchanged sentences

The table below presents a summary of our primary IIF and RIF by book year as of the dates indicated.

Primary IIF and RIF As of June 30,

Primary IIF and RIF As of September 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.

For the three months ended June 30, For the six months ended June 30,

For the three months ended September 30, For the nine months ended September 30,

2025 2024 2025 2024

8 unchanged sentences

Weighted average FICO 756 757 756 757

For the three months ended June 30, For the six months ended June 30,

For the three months ended September 30, For the nine months ended September 30,

2025 2024 2025 2024

7 unchanged sentences

NIW by purchase/refinance mix

For the three months ended June 30, For the six months ended June 30,

For the three months ended September 30, For the nine months ended September 30,

2025 2024 2025 2024

4 unchanged sentences

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.

Primary IIF by FICO As of June 30,

Primary IIF by FICO As of September 30,

($ Values In Millions)

6 unchanged sentences

Total $ 218,376 100 % $ 207,538 100 %

Primary RIF by FICO As of June 30,

Primary RIF by FICO As of September 30,

($ Values In Millions)

6 unchanged sentences

Total $ 58,538 100 % $ 55,253 100 %

Primary IIF by LTV As of June 30,

Primary IIF by LTV As of September 30,

($ Values In Millions)

4 unchanged sentences

Total $ 218,376 100 % $ 207,538 100 %

Primary RIF by LTV As of June 30,

Primary RIF by LTV As of September 30,

($ Values In Millions)

4 unchanged sentences

Total $ 58,538 100 % $ 55,253 100 %

Primary RIF by Loan Type As of June 30,

Primary RIF by Loan Type As of September 30,

Fixed 98 % 98 %

3 unchanged sentences

Total 100 % 100 %

The table below presents selected primary portfolio statistics, by book year, as of June 30, 2025.

As of June 30, 2025

The table below presents selected primary portfolio statistics, by book year, as of September 30, 2025.

As of September 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.

The distribution of our primary RIF as of June 30, 2025 is not necessarily representative of the geographic distribution we expect in the future.

Top 10 primary RIF by state As of June 30,

The distribution of our primary RIF as of September 30, 2025 is not necessarily representative of the geographic distribution we expect in the future.

Top 10 primary RIF by state As of September 30,

California 10.1 % 10.1 %

6 unchanged sentences

Pennsylvania 3.5 3.4

North Carolina 3.2 3.0

New York 3.3 3.1

Total 51.2 % 51.6 %

11 unchanged sentences

Adjustments to reserve estimates are reflected in the period in which the adjustment is made.

Reserves are also ceded to reinsurers under the QSR Transactions, ILN Transactions and XOL Transactions as applicable under each treaty.

We have not yet ceded reserves under any of the ILN Transactions or XOL Transactions as incurred claims and claim expenses on each respective reference pool remain within our retained coverage layer for each transaction.

Reserves are also ceded to reinsurers under the QSR Transactions, XOL Transactions and ILN Transactions as applicable under each treaty.

We have not yet ceded reserves under any of the XOL Transactions or ILN Transactions as incurred claims and claim expenses on each respective reference pool remain within our retained coverage layer for each transaction.

Our reserve setting process considers the beneficial impact of forbearance, foreclosure moratorium and other assistance programs that may be made available to certain defaulted borrowers.

6 unchanged sentences

The following table provides a reconciliation of the beginning and ending gross reserve balances for insurance claims and claim expenses:

For the three months ended June 30, For the six months ended June 30,

For the three months ended September 30, For the nine months ended September 30,

2025 2024 2025 2024

15 unchanged sentences

Current year (2)

170 180 280 180

Prior years (3)

11 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.

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.

Amounts are presented net of reinsurance and included $77.2 million attributed to net case reserves and $9.8 million attributed to net IBNR reserves for the nine months ended September 30, 2025 and $63.2 million attributed to net case reserves and $7.0 million attributed to net IBNR reserves for the nine months ended September 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.

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.

(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.

(5) Represents the settlement of reinsurance recoverables in conjunction with the respective amendments of the 2016, 2018 and 2021 QSR Transactions.

Amounts are presented net of reinsurance and included $43.2 million attributed to net case reserves and $8.1 million attributed to net IBNR reserves for the nine months ended September 30, 2025 and $49.8 million attributed to net case reserves and $6.3 million attributed to net IBNR reserves for the nine months ended September 30, 2024.

(4) Excludes aggregate termination fees of $0.3 million for the nine months ended September 30, 2025 incurred in connection with the termination of the 2016 QSR Transaction and amendment of the 2018 and 2021 QSR Transactions.

(5) Represents the settlement of reinsurance recoverables in conjunction with the termination of the 2016 QSR Transaction and amendment of the 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.

Gross reserves of $86.5 million related to prior year defaults remained as of June 30, 2025.

Gross reserves of $70.6 million related to prior year defaults remained as of September 30, 2025.

The following table provides a reconciliation of the beginning and ending count of loans in default:

For the three months ended June 30, For the six months ended June 30,

For the three months ended September 30, For the nine months ended September 30,

2025 2024 2025 2024

5 unchanged sentences

Ending default inventory 7,093 5,712 7,093 5,712

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.

Ending default inventory increased from September 30, 2024 to September 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:

For the three months ended June 30, For the six months ended June 30,

For the three months ended September 30, For the nine months ended September 30,

2025 2024 2025 2024

6 unchanged sentences

73 % 64 % 74 % 58 %

(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.

(1) Count includes 14 and 50 claims settled without payment during the three and nine months ended September 30, 2025, respectively, and 21 and 56 claims settled without payment during the three and nine months ended September 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.

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.

We paid 93 and 281 claims during the three and nine months ended September 30, 2025, respectively, and 67 and 168 claims during the three and nine months ended September 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.

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.

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.

These loans generally have less accumulated equity than earlier vintages.

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.

Our claims severity was 73% and 74% for the three and nine months ended September 30, 2025, respectively, compared to 64% and 58% for the three and nine months ended September 30, 2024.

The increase in claims severity for the three and nine months ended September 30, 2025, was primarily due to a greater proportion of claims related to loans originated in recent years.

These loans generally have less accumulated equity than loans from earlier vintages, which typically results in higher claims payments and an increase in claims severity.

Our claims severity for each period was below long-term industry norms.

2 unchanged sentences

Average reserve per default:

As of June 30,

As of September 30,

(In Thousands)

3 unchanged sentences

(2) Amount includes claims adjustment expenses.

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.

Average reserves per default were further impacted by other changes in the composition of our default inventory as measured by the size, vintage and current estimated LTV of defaulted loans.

Average reserve per default increased from September 30, 2024 to September 30, 2025, due to changes in the composition of our default inventory as measured by the size, vintage and current estimated LTV of defaulted loans between the measurement dates.

Average reserves per default were further impacted by changes in observed and forecasted housing market conditions and macroeconomic factors between the measurement dates.

GSE Oversight

15 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:

As of June 30,

As of September 30,

(In Thousands)

2 unchanged sentences

2,003,410 1,735,790

Available assets were $3.2 billion at June 30, 2025, compared to $2.8 billion at June 30, 2024.

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.

Net risk-based required assets were $1.9 billion at June 30, 2025, compared to $1.7 billion at June 30, 2024.

Available assets were $3.4 billion at September 30, 2025, compared to $3.0 billion at September 30, 2024.

The $363 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.

Net risk-based required assets were $2.0 billion at September 30, 2025, compared to $1.7 billion at September 30, 2024.

The $268 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.

Information and Technology Support Function

Effective April 1, 2025, we renewed and extended our existing seven-year IT service agreement with Tata Consultancy Services (TCS), dated March 31, 2020, through March 31, 2032.

Under the agreement, TCS provides IT services across such functions as application development and support, infrastructure support, and information security.

Our engagement with TCS has enhanced our ability to provide innovative IT solutions for our internal and external constituents, and has allowed us to realize cost efficiencies by leveraging TCS’s global platform.

Consolidated Results of Operations

Consolidated statements of operations For the three months ended June 30, $ Change

Consolidated statements of operations For the three months ended September 30, $ Change

2025 2024 2025 vs.

2 unchanged sentences

Net investment income 26,773 22,474 4,299 19 %

Net realized investment losses (400) — (400) NM (4)

Net realized investment gains (losses) 321 (10) 331 NM (4)

Other revenues 262 285 (23) (8) %

Total revenues 178,679 166,092 12,587 8 %

Insurance claims and claim expenses 13,445 276 13,169 NM (4)

Insurance claims and claim expenses 18,554 10,321 8,233 80 %

Underwriting and operating expenses 29,156 29,160 (4) — %

12 unchanged sentences

31.5 % 27.5 %

Consolidated statements of operations For the six months ended June 30, $ Change

For the three months ended September 30, $ Change % Change

Non-GAAP financial measures (5)

2025 2024 2025 vs.

($ In Thousands, except for per share data)

Adjusted income before tax $ 123,362 $ 119,337 $ 4,025 3 %

Adjusted net income 95,745 92,818 2,927 3 %

Adjusted diluted EPS 1.21 1.15 0.06 5 %

Consolidated statements of operations For the nine months ended September 30, $ Change

2025 2024 2025 vs.

Revenues ($ In Thousands, except for per share data)

1 unchanged sentence

Net investment income 75,408 62,598 12,810 20 %

Net realized investment losses (376) — (376) NM (4)

Net realized investment losses

(55) (10) (45) 450 %

Other revenues 596 711 (115) (16) %

15 unchanged sentences

27.9 % 24.1 %

For the three months ended June 30, $ Change

Non-GAAP financial measures (5)

2025 2024 2025 vs.

($ In Thousands, except for per share data)

Adjusted income before tax $ 124,001 $ 125,610 $ (1,609) (1) %

Adjusted net income 96,467 97,582 (1,115) (1) %

Adjusted diluted EPS 1.22 1.20 0.02 2 %

For the six months ended June 30, $ Change

For the nine months ended September 30, $ Change

Non-GAAP financial measures (5)

9 unchanged sentences

(5) See “ Explanation and Reconciliation of Our Use of Non-GAAP Financial Measures,” below.

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

increase in the total premiums ceded under our reinsurance treaties.

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.

Net premiums earned increased during the three and nine months ended September 30, 2025 compared to the three and nine months ended September 30, 2024 primarily due to growth in our monthly IIF and monthly pay premium receipts.

Net investment income increased during the three and nine months ended September 30, 2025 compared to the three and nine months ended September 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.

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.

Changes in other revenues primarily reflect changes in NMIS' outsourced loan

review volume.

Amounts recognized in other revenues generally correspond with amounts incurred as service expenses for outsourced loan review activities in the same periods.

1 unchanged sentence

We also incur service expenses in connection with NMIS' outsourced loan review activities.

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.

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.

Insurance claims and claim expenses increased during the three and nine months ended September 30, 2025 compared to the three and nine months ended September 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.

Underwriting and operating expenses increased during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily due to an increase in certain technology expenses and a decrease in ceding commissions received under our QSR Transactions.

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.

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.

Interest expense for the nine months ended September 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.”

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.

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.

Income tax expense increased during the three and nine months ended September 30, 2025 compared to the three and nine months ended September 30, 2024 primarily due to the growth in our pre-tax income.

Our effective tax rate on pre-tax income was 22.4% and 22.2% for the three and nine months ended September 30, 2025, respectively, compared to 22.2% and 22.3% for the three and nine months ended September 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.

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.

Our effective tax rates for the three and nine months ended September 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.”

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.

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.

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.

Net income and adjusted net income increased during the three and nine months ended September 30, 2025 compared to the three and nine months ended September 30, 2024, primarily due to growth in our total revenues, partially offset by increases in our insurance claims and claim expenses and income tax expense.

Adjusted net income for the nine months ended September 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.

Diluted and adjusted diluted EPS increased during the three and nine months ended September 30, 2025 compared to the three and nine months ended September 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.

Non-GAAP Financial Measure Reconciliations For the three months ended June 30, $ Change

Non-GAAP Financial Measure Reconciliations For the three months ended September 30, $ Change

2025 2024 2025 vs.

3 unchanged sentences

Net income $ 95,999 $ 92,810 $ 3,189 3 %

Net realized investment losses

400 — 400 NM (2)

Capital markets transaction costs

Net realized investment (gains) losses

(321) 10 (331) NM (2)

Adjusted income before tax $ 123,362 $ 119,337 $ 4,025 3 %

Income tax expense on adjustments (1)

84 1,463 (1,379) (94) %

Income tax (benefit) expense on adjustments (1)

(67) 2 (69) NM (2)

Adjusted net income $ 95,745 $ 92,818 $ 2,927 3 %

1 unchanged sentence

Adjusted diluted EPS $ 1.21 $ 1.15 $ 0.06 5 %

Non-GAAP Financial Measure Reconciliations For the six months ended June 30, $ Change

Non-GAAP Financial Measure Reconciliations For the nine months ended September 30, $ Change

2025 2024 2025 vs.

4 unchanged sentences

Net realized investment losses

376 — 376 NM (2)

55 10 45 450 %

Capital markets transaction costs

— 6,966 (6,966) NM (2)

— 6,966 (6,966) (100) %

Adjusted income before tax $ 378,710 $ 359,514 $ 19,196 5 %

33 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.

Consolidated balance sheets June 30, 2025 December 31, 2024 $ Change

Consolidated balance sheets September 30, 2025 December 31, 2024 $ Change

(In Thousands)

17 unchanged sentences

Total liabilities and shareholders' equity $ 3,727,193 $ 3,349,973 $ 377,220 11 %

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.

Cash and investments at June 30, 2025 included $168.8 million held by NMIH.

Total cash and investments increased at September 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 nine months ended September 30, 2025, partially offset by share repurchase activity during the period.

Cash and investments at September 30, 2025 included $148.1 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.

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.

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.

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.

Net deferred policy acquisition costs decreased at September 30, 2025 compared to December 31, 2024 primarily due to the recognition of previously deferred policy acquisition costs during the nine months ended September 30, 2025, partially offset by the deferral of certain costs associated with the origination of new policies during the period.

Net software and equipment decreased at September 30, 2025 compared to December 31, 2024 primarily due to the amortization of previously capitalized amounts during the nine months ended September 30, 2025.

Reinsurance recoverable increased at September 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.”

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.

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.

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.

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.

Other assets increased at September 30, 2025 compared to December 31, 2024 primarily due to an increase in current income taxes receivable and accrued investment income, partially offset by a reduction in our right-of-use assets tied to amortization of the operating lease for our corporate headquarters.

Unearned premiums decreased at September 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 nine months ended September 30, 2025, partially offset by single premium policy originations during the period.

Accounts payable and accrued expenses decreased at September 30, 2025 compared to December 31, 2024 primarily due to a reduction in accrued interest on the 2024 Notes, which is payable semi-annually in February and August, and the settlement of previously accrued compensation expenses during the nine months ended September 30, 2025, partially offset by an increase in unsettled trade payables related to the purchase of certain investment securities.

Reserve for insurance claims and claim expenses increased at September 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 nine months ended September 30, 2025.

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.

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.

Net deferred tax liability increased at September 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:

Consolidated cash flows For the six months ended June 30, $ Change

Consolidated cash flows For the nine months ended September 30, $ Change

2025 2024 2025 vs.

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Financing activities (82,615) (67,997) (14,618)

Net increase (decrease) in cash and cash equivalents

Net increase in cash and cash equivalents

$ 76,131 $ 36,630 $ 39,501

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.

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.

Net cash provided by operating activities decreased during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily due to an increase in taxes paid, the semi-annual interest payments made on the 2024 Notes and net claim settlement costs, largely offset by an increase in our net premium receipts and growth in our investment income.

Cash used in investing activities for the nine months ended September 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.

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.

Cash used in financing activities for the nine months ended September 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

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Delaware law provides that dividends are only payable out of a corporation's surplus or recent net profits (subject to certain limitations).

As of June 30, 2025, NMIH had $168.8 million of cash and cash equivalents, and investments.

As of September 30, 2025, NMIH had $148.1 million of cash and cash equivalents, and investments.

NMIH ’ s principal sources of net cash are dividends from its subsidiaries and investment income.

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On July 31, 2023, our Board of Directors authorized a $200 million repurchase program (the 2023 Repurchase Program), effective through December 31, 2025.

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.

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.

As of June 30, 2025, NMIH had $281.0 million of repurchase authority remaining.

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 Repurchase Program through December 31, 2027 to align its remaining tenor with that of the 2025 Repurchase Program.

The authorizations provide NMIH with 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.

During the nine months ended September 30, 2025, NMIH repurchased 2.0 million shares of common stock at a total cost of $73.7 million, excluding associated costs and applicable taxes.

As of September 30, 2025, NMIH had $256.4 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.

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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.

As of June 30, 2025, the applicable commitment fee was 0.225%.

As of September 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).

We were in compliance with all covenants at June 30, 2025.

We were in compliance with all covenants at September 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.

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Under the PMIERs, NMIC must maintain available assets that are equal to or exceed a minimum risk-based required asset amount, subject to a minimum floor of $400 million.

Available assets reflect the financial resources of a mortgage insurer available to pay claims, and includes the most readily liquid assets held, such as cash, investments and other items as stipulated in PMIERs Section 703.

Available assets reflect the financial resources of a mortgage insurer available to pay claims, and includes the most

readily liquid assets held, such as cash, investments and other items as stipulated in PMIERs Section 703.

The credit provided for such liquid assets is further subject to adjustment based on several factors, including asset class, credit rating and portfolio concentration.

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As such, the PMIERs generally imposes a stricter financial requirement than the state RTC standard.

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.

As of September 30, 2025, NMIC had a RTC ratio of 13.1:1 with $41.3 billion of primary RIF, net of reinsurance, and $3.1 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.

At June 30, 2025, NMIC had $2.8 billion of cash and investments, including $36.1 million of cash and cash equivalents.

At September 30, 2025, NMIC had $3.0 billion of cash and investments, including $88.2 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.

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.

During the twelve-month period ended September 30, 2025, NMIC generated $388 million of cash flow from operations and received an additional $266 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.

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NMIH's 2024 Notes are rated “BBB-” by Fitch and “Baa3” by Moody's.

The outlook for all ratings provided by Fitch is positive and the outlook for all ratings provided by Moody's and S&P is stable.

The outlook for all ratings provided by Fitch and Moody's is positive and the outlook for all ratings provided by S&P is stable.

Consolidated Investment Portfolio

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Our investment portfolio is comprised entirely of fixed maturity instruments.

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.

Pre-tax book yield on the investment portfolio for the six months ended June 30, 2025 was 3.2%.

As of September 30, 2025, the fair value of our investment portfolio was $3.0 billion and we held an additional $130.4 million of cash and cash equivalents.

Pre-tax book yield on the investment portfolio for the nine months ended September 30, 2025 was 3.3%.

Book yield is calculated as period-to-date net investment income divided by the average amortized cost of the investment portfolio.

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The following tables present a breakdown of our investment portfolio and cash and cash equivalents by investment type and credit rating:

Percentage of portfolio's fair value June 30, 2025 December 31, 2024

Percentage of portfolio's fair value September 30, 2025 December 31, 2024

Corporate debt securities 67 % 67 %

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Investment portfolio ratings at fair value (1)

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

Total 100 % 100 %

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(3) Includes +/– ratings.

(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.

(4) We held one security with a BB rating at December 31, 2024, which is not identifiable in the table due to rounding.

All of our investments are rated by one or more nationally recognized statistical rating organizations.

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Investment Securities - Allowance for credit losses

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.

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.

We did not recognize an allowance for credit loss for any security in the investment portfolio as of September 30, 2025 or December 31, 2024, and we did not record any provision for credit loss for investment securities during the three and nine months ended September 30, 2025 or 2024.

As of September 30, 2025, the investment portfolio had gross unrealized losses of $95.5 million, of which $95.1 million were associated with securities that had been in an unrealized loss position for a period of twelve months or longer.

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.

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.

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.

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.

We evaluated the securities in an unrealized loss position as of September 30, 2025, assessing their credit ratings as well as any adverse conditions specifically related to the security.

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 September 30, 2025 are not indicative of the ultimate collectability of the current amortized cost of the securities.

Rather, the unrealized losses on securities held as of September 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

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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.

What changed 10-Q

Item 2. Management’s Discussion and Analysis