What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2026-05-01 compared with 2025-11-05 · 181 added, 219 removed, 531 unchanged (43% of the section changed)

8 unchanged sentences

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

Assets (In Thousands, except for share data)

1 unchanged sentence

$ 3,174,107 $ 3,137,023

Cash and cash equivalents (including restricted cash of $ 0 and $ 90 )

Cash and cash equivalents

70,679 43,937

18 unchanged sentences

Common stock - $ 0.01 par value;

88,371,465 shares issued and 77,095,871 shares outstanding as of September 30, 2025 and 87,902,626 shares issued and 78,600,726 shares outstanding as of December 31, 2024 ( 250,000,000 shares authorized)

88,951,544 shares issued and 76,149,574 shares outstanding as of March 31, 2026 and 88,371,465 shares issued and 76,285,242 shares outstanding as of December 31, 2025 ( 250,000,000 shares authorized)

Additional paid-in capital 1,007,682 1,016,772

Treasury stock, at cost:

11,275,594 and 9,301,900 common shares as of September 30, 2025 and December 31, 2024, respectively

12,801,970 and 12,086,223 common shares as of March 31, 2026 and December 31, 2025, respectively

( 379,495 ) ( 351,772 )

6 unchanged sentences

C ONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (UNAUDITED)

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

2025 2024 2025 2024

For the three months ended March 31,

(In Thousands, except for per share data)

1 unchanged sentence

Net investment income 28,604 23,686

Net realized investment gains (losses) 321 ( 10 ) ( 55 ) ( 10 )

Net realized investment (losses) gains ( 147 ) 24

Other revenues 212 170

15 unchanged sentences

Net income $ 99,330 $ 102,559

Other comprehensive income, net of tax:

Unrealized gains in accumulated other comprehensive loss, net of tax expense of $ 5,145 and $ 18,441 for the three months ended September 30, 2025 and 2024, and $ 18,901 and $ 15,300 for the nine months ended September 30, 2025 and 2024, respectively

19,356 69,372 71,106 57,918

Reclassification adjustment for realized (gains) losses included in net income, net of tax expense (benefit) of $ 67 and $( 2 ) for the three months ended September 30, 2025 and 2024, and $( 12 ) and $( 2 ) for the nine months ended September 30, 2025 and 2024, respectively

Other comprehensive (loss) income, net of tax:

Unrealized (losses) gains in accumulated other comprehensive loss, net of tax (benefit) expense of $( 5,959 ) and $ 8,186 for the quarters ended March 31, 2026 and 2025, respectively

( 22,415 ) 30,795

Other comprehensive income, net of tax 19,103 69,380 71,150 57,926

Reclassification adjustment for realized losses (gains) included in net income, net of tax (benefit) expense of $( 90 ) and $ 5 for the quarters ended March 31, 2026 and 2025, respectively

Other comprehensive (loss) income, net of tax ( 22,077 ) 30,776

Comprehensive income $ 77,253 $ 133,335

11 unchanged sentences

Share-based compensation expense — — 4,682 — — — 4,682

Change in unrealized investment gains/losses, net of tax expense of $ 8,181

Change in unrealized investment gains/losses, net of tax benefit of $ 5,869

— — — — ( 22,077 ) ( 22,077 )

1 unchanged sentence

Balances, March 31, 2026 76,149 $ 890 $ 1,007,682 $ ( 379,495 ) $ ( 68,160 ) $ 2,071,515 $ 2,632,432

Common stock:

shares issued under stock plans, net of shares withheld for employee taxes 44 1 ( 444 ) — — — ( 443 )

Repurchase of common stock ( 628 ) — — ( 23,400 ) — — ( 23,400 )

Share-based compensation expense — — 4,957 — — — 4,957

Change in unrealized investment gains/losses, net of tax expense of $ 5,654

— — — — 21,271 — 21,271

Net income — — — — — 96,151 96,151

Balances, June 30, 2025 77,717 $ 884 $ 1,006,058 $ ( 296,047 ) $ ( 72,757 ) $ 1,781,969 $ 2,420,107

Common stock:

shares issued under stock plans, net of shares withheld for employee taxes 6 * ( 12 ) — — — ( 12 )

Repurchase of common stock ( 628 ) — — ( 24,830 ) — — ( 24,830 )

Share-based compensation expense — — 4,504 — — — 4,504

Change in unrealized investment gains/losses, net of tax expense of $ 5,078

— — — — 19,103 — 19,103

Net income — — — — — 95,999 95,999

Balances, September 30, 2025 77,095 $ 884 $ 1,010,550 $ ( 320,877 ) $ ( 53,654 ) $ 1,877,968 $ 2,514,871

* During the three months ended September 30, 2025, we issued 5,956 common shares with a par value of $ 0.01 in connection with the exercise of options and vesting of restricted stock units granted under our stock plans, which is not identifiable in this schedule due to rounding.

See accompanying notes to condensed consolidated financial statements (unaudited).

NMI HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED)

Common Stock Additional

7 unchanged sentences

Share-based compensation expense — — 4,507 — — — 4,507

Change in unrealized investment gains/losses, net of tax benefit of $ 2,729

— — — — ( 9,905 ) — ( 9,905 )

Net income — — — — — 89,050 89,050

Balances, March 31, 2024 80,546 $ 878 $ 989,349 $ ( 174,227 ) $ ( 149,822 ) $ 1,312,203 $ 1,978,381

Common stock:

shares issued under stock plans, net of shares withheld for employee taxes 62 1 ( 320 ) — — — ( 319 )

Repurchase of common stock ( 844 ) — — ( 27,096 ) — — ( 27,096 )

Share-based compensation expense — — 4,114 — — — 4,114

Change in unrealized investment gains/losses, net of tax benefit of $ 412

— — — — ( 1,549 ) — ( 1,549 )

Net income — — — — — 92,079 92,079

Balances, June 30, 2024 79,764 $ 879 $ 993,143 $ ( 201,323 ) $ ( 151,371 ) $ 1,404,282 $ 2,045,610

Common stock:

shares issued under stock plans, net of shares withheld for employee taxes * * ( 12 ) — — — ( 12 )

Repurchase of common stock ( 443 ) — — ( 17,041 ) — — ( 17,041 )

Share-based compensation expense — — 4,439 — — — 4,439

Change in unrealized investment gains/losses, net of tax expense of $ 8,181

1 unchanged sentence

Net income — — — — — 102,559 102,559

Balances, September 30, 2024 79,321 $ 879 $ 997,570 $ ( 218,364 ) $ ( 81,991 ) $ 1,497,092 $ 2,195,186

* During the three months ended September 30, 2024, we issued 337 common shares with a par value of $ 0.01 in connection with the exercise of options and vesting of restricted stock units granted under our stock plans, which is not identifiable in this schedule due to rounding.

Balances, March 31, 2025 78,301 $ 883 $ 1,001,545 $ ( 272,647 ) $ ( 94,028 ) $ 1,685,818 $ 2,321,571

See accompanying notes to condensed consolidated financial statements (unaudited).

1 unchanged sentence

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

For the nine months ended September 30,

For the three months ended March 31,

Cash flows from operating activities (In Thousands)

1 unchanged sentence

Adjustments to reconcile net income to net cash provided by operating activities:

Net realized investment loss 55 10

Net realized investment losses (gains) 147 ( 24 )

Depreciation and amortization 2,481 2,888

Net accretion of discount on investment securities ( 707 ) ( 770 )

Loss on extinguishment of debt — 6,966

Amortization of debt discount and debt issuance costs 623 592

13 unchanged sentences

Cash flows from investing activities

Purchase of short-term investments ( 149,956 ) ( 142,414 )

Purchase of fixed-maturity investments, available-for-sale ( 299,673 ) ( 141,474 )

7 unchanged sentences

Taxes paid related to net share settlement of equity awards ( 17,647 ) ( 10,428 )

Proceeds from senior unsecured notes — 419,705

Repayments of senior secured notes — ( 405,080 )

Payments of debt issuance costs — ( 7,785 )

Repurchases of common stock ( 27,675 ) ( 25,943 )

5 unchanged sentences

Interest paid $ 12,750 $ 18,700

Income taxes paid 32,215 9,387

Income taxes refunded 32 —

See accompanying notes to condensed consolidated financial statements (unaudited).

3 unchanged sentences

NMI Holdings, Inc.

(NMIH) is a Delaware corporation, incorporated in May 2011 to provide private mortgage guaranty insurance (which we refer to as mortgage insurance or MI) through its wholly-owned insurance subsidiaries, National Mortgage Insurance Corporation (NMIC) and National Mortgage Reinsurance Inc One (Re One).

One (Re One).

Our common stock is listed on the Nasdaq exchange under the ticker symbol “NMIH.”

13 unchanged sentences

All intercompany transactions have been eliminated.

The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities, as well as disclosure of contingent assets and liabilities as of the balance sheet date.

Estimates also affect the reported amounts of income and expenses for the reporting period.

The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities, and the disclosure of contingent assets and liabilities as of the balance sheet date, as well as reported amounts of income and expenses for the reporting period.

Actual results could differ from those estimates.

3 unchanged sentences

There have been no changes to our significant accounting principles as described in Item 8, “ Financial Statements and Supplementary Data - Notes to Consolidated Financial Statements - Note 2 - Summary of Accounting Principles” of our 2025 10-K.

Recent Accounting Pronouncements – Adopted

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740).

The update enhances the disclosure requirements related to tax rate reconciliations and income taxes paid, and took effect for all public business entities for annual reporting periods beginning after December 15, 2024.

We adopted this ASU on January 1, 2025 and will include enhanced disclosures in our fiscal year-end 2025 annual consolidated financial statements, as applicable.

Recent Accounting Pronouncements – Not Yet Adopted

18 unchanged sentences

Cost Gross Unrealized Fair

As of September 30, 2025 (In Thousands)

As of March 31, 2026 (In Thousands)

Treasury securities and obligations of U.S.

2 unchanged sentences

Corporate debt securities 2,210,982 13,083 ( 62,318 ) 2,161,747

Asset-backed securities 52,559 — ( 2,796 ) 49,763

agency mortgage-backed securities (1)

40,925 — ( 349 ) 40,576

Other asset-backed securities

96,926 39 ( 3,014 ) 93,951

Total bonds 3,229,819 16,053 ( 97,149 ) 3,148,723

7 unchanged sentences

Corporate debt securities 2,047,122 27,504 ( 55,015 ) 2,019,611

Asset-backed securities 44,104 1 ( 2,125 ) 41,980

agency mortgage-backed securities (1)

42,109 10 ( 48 ) 42,071

Other asset-backed securities

72,774 — ( 2,649 ) 70,125

Total bonds 3,103,569 33,110 ( 86,275 ) 3,050,404

1 unchanged sentence

Total investments $ 3,190,174 $ 33,125 $ ( 86,276 ) $ 3,137,023

We did not own any mortgage-backed securities in our asset-backed securities portfolio at September 30, 2025 or December 31, 2024.

(1) 100% of our U.S.

agency mortgage-backed securities at March 31, 2026 and December 31, 2025 are guaranteed by Ginnie Mae which has the full faith and credit of the U.S.

federal government.

* Amounts not identifiable due to rounding.

NMI HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The following table presents a breakdown of the fair value of our corporate debt securities by issuer industry group as of September 30, 2025 and December 31, 2024:

September 30, 2025 December 31, 2024

The following table presents a breakdown of the fair value of our corporate debt securities by issuer industry group as of March 31, 2026 and December 31, 2025:

March 31, 2026 December 31, 2025

Financial 41 % 39 %

2 unchanged sentences

Industrial 9 9

Communications 6 7

Technology 6 6

Communications 5 6

Basic Materials 2 1

Total 100 % 100 %

As of September 30, 2025 and December 31, 2024, approximately $ 5.4 million and $ 5.3 million, respectively, of our cash and investments were held in the form of U.S.

As of both March 31, 2026 and December 31, 2025, approximately $ 5.4 million of our cash and investments were held in the form of U.S.

Treasury securities on deposit with various state insurance departments to satisfy regulatory requirements.

We periodically recognize unsettled trade receivables or payables in connection with our investing activity.

Unsettled trade receivables represent funds due but not yet received for the sale or maturity of investments at period end.

Unsettled trade payables represent funds due but not yet paid for investments purchased at period end.

“Accounts Payable and Accrued Expenses” on our condensed consolidated balance sheets included $ 17.3 million of unsettled trade payables related to the purchase of certain investment securities at March 31, 2026.

No unsettled trade receivables were outstanding at March 31, 2026.

No unsettled trade payables were outstanding at December 31, 2025.

Unsettled trade receivables were immaterial at December 31, 2025.

NMI HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Scheduled Maturities

The amortized cost and fair value of available-for-sale securities as of September 30, 2025 and December 31, 2024, by contractual maturity, are shown below.

The amortized cost and fair value of available-for-sale securities as of March 31, 2026 and December 31, 2025, by contractual maturity, are shown below.

Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

Because most asset-backed securities provide for periodic payments throughout their lives, they are listed below in a separate category.

As of September 30, 2025 Amortized

Because most U.S.

agency mortgage-backed securities and other asset-backed securities provide for periodic payments throughout their lives, they are listed below in separate categories.

As of March 31, 2026 Amortized

(In Thousands)

3 unchanged sentences

Due after ten years 68,075 66,679

Asset-backed securities 52,559 49,763

agency mortgage-backed securities 40,925 40,576

Other asset-backed securities

96,926 93,951

Total investments $ 3,255,203 $ 3,174,107

5 unchanged sentences

Due after ten years 6,793 6,844

Asset-backed securities 44,104 41,980

agency mortgage-backed securities 42,109 42,071

Other asset-backed securities

72,774 70,125

Total investments $ 3,190,174 $ 3,137,023

Aging of Unrealized Losses

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 March 31, 2026, the investment portfolio had gross unrealized losses of $ 97.1 million, of which $ 87.3 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, 2025, the investment portfolio had gross unrealized losses of $ 86.3 million, of which $ 84.3 million were associated with securities that had been in an unrealized loss position for a period of twelve months or longer.

For those securities in an unrealized loss position, the length of time the securities were in such a position is as follows:

NMI HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Less Than Twelve Months Twelve Months or Greater Total

# of Securities Fair Value Unrealized Losses # of Securities Fair Value Unrealized Losses # of Securities Fair Value Unrealized Losses

As of September 30, 2025 ($ In Thousands)

As of March 31, 2026 ($ In Thousands)

Treasury securities and obligations of U.S.

2 unchanged sentences

Corporate debt securities 82 470,222 ( 5,391 ) 148 756,507 ( 56,927 ) 230 1,226,729 ( 62,318 )

Asset-backed securities 3 13,133 ( 37 ) 16 36,630 ( 2,759 ) 19 49,763 ( 2,796 )

agency mortgage-backed securities 3 40,576 ( 349 ) — — — 3 40,576 ( 349 )

Other asset-backed securities

12 65,553 ( 272 ) 15 22,393 ( 2,742 ) 27 87,946 ( 3,014 )

Short-term investments 1 24,998 * — — — 1 24,998 *

Total 118 $ 805,005 $ ( 9,822 ) 375 $ 1,241,870 $ ( 87,327 ) 493 $ 2,046,875 $ ( 97,149 )

NMI HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Less Than Twelve Months Twelve Months or Greater Total

5 unchanged sentences

Corporate debt securities 13 43,546 ( 209 ) 159 836,050 ( 54,806 ) 172 879,596 ( 55,015 )

Asset-backed securities — — — 19 41,559 ( 2,125 ) 19 41,559 ( 2,125 )

agency mortgage-backed securities 2 27,109 ( 48 ) — — — 2 27,109 ( 48 )

Other asset-backed securities

7 33,836 ( 53 ) 16 36,289 ( 2,596 ) 23 70,125 ( 2,649 )

Short-term investments 1 24,778 ( 1 ) — — — 1 24,778 ( 1 )

2 unchanged sentences

Allowance for Credit Losses

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

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.

As of March 31, 2026 and December 31, 2025, we did not recognize an allowance for credit loss for any security in the investment portfolio and we did not record any provision for credit loss for investment securities during the three months ended March 31, 2026 or 2025.

We evaluated the securities in an unrealized loss position as of March 31, 2026, 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 March 31, 2026 are not indicative of the ultimate collectability of the current amortized cost of the securities.

Rather, the unrealized losses on securities held as of March 31, 2026 were primarily driven by fluctuations in interest rates, and to a lesser extent, movements in credit spreads following the purchase of those securities.

Net Investment Income

The following table presents the components of net investment income:

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

2025 2024 2025 2024

For the three months ended March 31,

(In Thousands)

3 unchanged sentences

Net investment income $ 28,604 $ 23,686

(1) Includes interest income recognized on cash and cash equivalents of $ 0.9 million and $ 2.9 million during the three and nine months ended September 30, 2025, respectively, and $ 1.3 million and $ 4.2 million during the three and nine months ended September 30, 2024, respectively.

NMI HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The following table presents the components of net realized investment gains (losses):

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

2025 2024 2025 2024

(1) Includes interest income recognized on cash and cash equivalents of $ 0.9 million during both the three months ended March 31, 2026 and 2025.

The following table presents the components of net realized investment (losses) gains:

For the three months ended March 31,

(In Thousands)

1 unchanged sentence

Gross realized investment losses ( 1,193 ) —

Net realized investment gains (losses)

Net realized investment (losses) gains

$ ( 147 ) $ 24

NMI HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Fair Value of Financial Instruments

27 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The following tables present the level within the fair value hierarchy at which our financial instruments were measured:

The following tables present our financial instruments that are measured at fair value on a recurring basis by hierarchy level:

Fair Value Measurements Using

6 unchanged sentences

(Level 3) Fair Value

As of September 30, 2025 (In Thousands)

As of March 31, 2026 (In Thousands)

Treasury securities and obligations of U.S.

2 unchanged sentences

Corporate debt securities — 2,161,747 — 2,161,747

Asset-backed securities — 49,763 — 49,763

agency mortgage-backed securities — 40,576 — 40,576

Other asset-backed securities

— 93,951 — 93,951

Cash, cash equivalents and short-term investments 96,063 — — 96,063

13 unchanged sentences

Corporate debt securities — 2,019,611 — 2,019,611

Asset-backed securities — 41,980 — 41,980

agency mortgage-backed securities — 42,071 — 42,071

Other asset-backed securities

— 70,125 — 70,125

Cash, cash equivalents and short-term investments 130,556 — — 130,556

Total assets $ 437,584 $ 2,743,376 $ — $ 3,180,960

There were no transfers between Level 2 and Level 3 of the fair value hierarchy during the nine months ended September 30, 2025 or the year ended December 31, 2024.

There were no transfers between Level 2 and Level 3 of the fair value hierarchy during the three months ended March 31, 2026 or the year ended December 31, 2025.

Financial Instruments Not Measured at Fair Value

On May 21, 2024, we issued $ 425 million aggregate principal amount of senior unsecured notes that mature on August 15, 2029 (the 2024 Notes).

Proceeds from the 2024 Notes offering were primarily used to repay our then outstanding $ 400 million senior secured notes (the 2020 Notes).

At September 30, 2025, the 2024 Notes were carried at a cost of $ 416.5 million, net of unamortized debt issuance costs and an original issue discount totaling $ 8.5 million, and had a fair value of $ 440.5 million as assessed under our Level 2 hierarchy.

At December 31, 2024, the 2024 Notes were carried at a cost of $ 415.1 million, net of unamortized debt issuance costs and an original issue discount totaling $ 9.9 million, and had a fair value of $ 429.6 million.

At March 31, 2026, the 2024 Notes were carried at an amortized cost of $ 417.5 million, net of unamortized debt issuance costs and an original issue discount totaling $ 7.5 million, and had a fair value of $ 436.2 million as assessed under our Level 2 hierarchy.

At December 31, 2025, the 2024 Notes were carried at an amortized cost of $ 417.0 million, net of unamortized debt issuance costs and an original issue discount totaling $ 8.0 million, and had a fair value of $ 441.3 million.

Senior Unsecured Notes

At September 30, 2025, we had $ 425 million aggregate principal amount of senior unsecured notes outstanding.

At March 31, 2026, we had $ 425 million aggregate principal amount of senior unsecured notes outstanding.

The 2024 Notes were issued pursuant to an indenture, dated May 21, 2024, and bear interest at a rate of 6.00 %, payable semi-annually on February 15 and August 15.

8 unchanged sentences

The effective interest rate on the 2024 Notes is 6.583 %.

At September 30, 2025 and December 31, 2024, $ 8.5 million and $ 9.9 million, respectively, of unamortized debt issuance costs and original issue discount remained.

At September 30, 2025 and December 31, 2024, $ 3.3 million and $ 15.6 million, respectively, of accrued and unpaid interest on the 2024 Notes was included in “Accounts Payable and Accrued Expenses” on our condensed consolidated balance sheets.

During the nine months ended September 30, 2024, we recorded a $ 6.8 million loss related to the redemption of the 2020 Notes in “ Interest Expense” on our condensed consolidated statements of comprehensive income.

At March 31, 2026 and December 31, 2025, $ 7.5 million and $ 8.0 million, respectively, of unamortized debt issuance costs and original issue discount remained.

At March 31, 2026 and December 31, 2025, $ 3.3 million and $ 9.6 million, respectively, of accrued and unpaid interest on the 2024 Notes was included in “Accounts Payable and Accrued Expenses” on our condensed consolidated balance sheets.

Revolving Credit Facility

2 unchanged sentences

Borrowings under the 2024 Revolving Credit Facility may be used for general corporate purposes, including to support growth, new business production and operations, and accrue interest at a variable rate equal to, at our discretion, (i) a Base Rate (as defined in the 2024 Revolving Credit Facility) subject to a floor of 1.00 % per annum plus a margin of 0.375 % to 1.875 % per annum, or (ii) the Adjusted Term Secured Overnight Financing Rate (SOFR, as defined in the 2024 Revolving Credit Facility) plus a margin of 1.375 % to 2.875 % per annum, with the margin in each of (i) or (ii) based on our applicable corporate credit rating at the time.

As of September 30, 2025 and December 31, 2024, no amounts were drawn under the 2024 Revolving Credit Facility.

As of March 31, 2026 and December 31, 2025, no amounts were drawn under the 2024 Revolving Credit Facility.

Under the 2024 Revolving Credit Facility, we are 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 September 30, 2025, the applicable commitment fee was 0.225 %.

For the three and nine months ended September 30, 2025, we recorded $ 0.1 million and $ 0.4 million, respectively, of commitment fees in interest expense.

As of March 31, 2026, the applicable commitment fee was 0.175 %.

For the three months ended March 31, 2026 and 2025, we recorded $ 0.1 million of commitment fees in interest expense.

We incurred debt issuance costs of $ 2.1 million in connection with the 2024 Revolving Credit Facility and had $ 0.6 million of unamortized debt issuance costs associated with the 2021 Revolving Credit Facility remaining at the time of its replacement.

Combined unamortized debt issuance costs are amortized through interest expense on a straight-line basis over the contractual life of the 2024 Revolving Credit Facility.

At September 30, 2025 and December 31, 2024, remaining unamortized deferred debt issuance costs of $ 1.9 million and $ 2.3 million, respectively, were recorded in “Other Assets” on our condensed consolidated balance sheets.

At March 31, 2026 and December 31, 2025, remaining unamortized deferred debt issuance costs of $ 1.7 million and $ 1.8 million, respectively, were recorded in “Other Assets” on our condensed consolidated balance sheets.

Under the 2024 Revolving Credit Facility we are subject to certain covenants, 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 private mortgage insurer eligibility requirements (PMIERs).

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

We enter into third-party reinsurance transactions to actively manage our risk, ensure compliance with PMIERs, state regulatory and other applicable capital requirements (respectively, as defined therein), and support the growth of our business.

The Wisconsin Office of the Commissioner of Insurance (Wisconsin OCI) has approved and the GSEs have indicated their non-objection to all such transactions (subject to certain conditions and ongoing review).

We were in compliance with all covenants at March 31, 2026.

NMI HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

We enter into third-party reinsurance transactions to actively manage our risk, ensure compliance with PMIERs, state regulatory and other applicable capital requirements, (respectively, as defined therein), and support the growth of our business.

The effect of our reinsurance agreements on premiums written and earned is as follows:

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

2025 2024 2025 2024

For the three months ended March 31,

(In Thousands)

9 unchanged sentences

Quota Share Reinsurance

NMIC is party to eight quota share reinsurance treaties – the 2018 QSR Transaction, effective January 1, 2018 and as modified April 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 July 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.

NMIC is party to nine quota share reinsurance treaties – the 2018 QSR Transaction, effective January 1, 2018, the 2020 QSR Transaction, effective April 1, 2020, the 2021 QSR Transaction, effective January 1, 2021, 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, the 2025 QSR Transaction, effective January 1, 2025, and the 2026 QSR Transaction, effective January 1, 2026 – which we refer to collectively as the QSR Transactions.

Under each of the QSR Transactions, NMIC cedes a proportional share of its risk on eligible policies to panels of third-party reinsurance providers in exchange for reimbursement of ceded claims and claim expenses on covered policies, a ceding commission and a profit commission (up to a contractually defined maximum) that varies directly and inversely with ceded claims.

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.

NMIC holds optional termination rights which provide it with the discretion to terminate each QSR Transaction on or after a specified date.

NMIC may also 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.

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.

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Best or both.

The following table presents the inception date, covered production period, contractual and optional termination dates, current cession rate, ceding commission and profit commission for each outstanding QSR Transaction.

Current amounts are presented as of September 30, 2025.

NMI HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The following table presents the inception date, covered production period, ceding commission and profit commission for each outstanding QSR Transaction.

Current amounts are presented as of March 31, 2026.

Inception Date

Covered Production Contractual Termination date

Optional Termination date Ceding Percentage

Covered Production Ceding Percentage

Ceding Commission

2 unchanged sentences

1/1/2019 – 12/31/2019

12/31/2029 12/31/2022 (1)

42 % up to 45 %

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7/1/2019 –3/31/2020

6/30/2032 6/30/2025 (3)

53 % up to 38 %

5 unchanged sentences

20 % up to 62 %

(1) NMIC has the option, based on certain conditions and subject to a termination fee, to terminate the agreement as of the optional termination date, or at the end of any calendar quarter thereafter which could result in NMIC recapturing the related risk.

(2) NMIC has the option, based on certain conditions and subject to a termination fee, to terminate the agreement as of the optional termination, or semi-annually thereafter, which could result in NMIC recapturing the related risk.

(3) NMIC has the option, based on certain conditions, to terminate the agreement as of June 30, 2025 or quarterly thereafter through December 31, 2027 with the payment of a termination fee, and as of March 31, 2028 or quarterly thereafter without the payment of a termination fee.

Such termination could result in NMIC recapturing the related risk.

(4) NMIC also holds a clean-up call that provides for termination of the agreement at its election at any time on or after the date the risk on remaining covered policies falls to 10% or less of the risk on covered policies at December 31, 2025.

1/1/2026 1/1/2026 – 12/31/2026

(1) Under the terms of the 2018 QSR Transaction, NMIC cedes premiums earned related to 16 % of the risk on eligible policies written in 2018 and 13 % of the risk on eligible policies written in 2019.

(6) Under the terms of the 2022 Seasoned QSR Transaction, NMIC cedes premiums earned related to 95 % of the risk on eligible policies after the consideration of coverage provided by other QSR transactions.

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).

(2) Under the terms of the 2022 Seasoned QSR Transaction, NMIC cedes premiums earned related to 48 % of the risk on eligible policies after the consideration of coverage provided under any other QSR Transaction.

NMIC has also entered into two additional quota share reinsurance treaties that will provide sequential coverage for mortgage insurance policies to be written in 2027 and 2028 (the 2027 QSR Transaction and 2028 QSR Transaction).

Under the terms of the 2027 QSR Transaction, NMIC will cede premiums earned related to 35 % of the risk on eligible policies written between January 1, 2027 and December 31, 2027.

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The following table shows amounts related to the QSR Transactions:

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

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

As of and for the three months ended

March 31, 2026 March 31, 2025

(In Thousands)

2 unchanged sentences

Ceded claims and claim expenses

4,123 2,449 7,899 2,970

Ceding commission earned 10,205 9,768

Profit commission 17,131 23,398

(1) Includes a $ 0.3 million termination fee 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.

Under the QSR Transactions, payments for ceded premiums earned are accrued and settled on a quarterly basis, offset by amounts due to NMIC for ceding commissions, profit commissions and loss recoveries.

Ceded claims and claim expenses reduce the profit commission due to NMIC under each respective QSR Transaction on a dollar-for-dollar basis.

NMI HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NMIC's reinsurance recoverable balance is supported by collateral trust accounts established and maintained by each reinsurer in accordance with the terms of the QSR Transactions and the PMIERs funding requirements for risk ceded to non-affiliates.

The aggregate reinsurance recoverable on loss reserves related to the QSR Transactions was $ 35.3 million and $ 31.2 million as of September 30, 2025 and December 31, 2024, respectively.

The reinsurance recoverable on loss reserves as of December 31, 2024 included $ 1.1 million related to the 2016 QSR Transaction, which was terminated as of July 1, 2025.

NMIC had aggregate reinsurance recoverables related to the QSR Transactions of $ 39.7 million and $ 38.6 million as of March 31, 2026 and December 31, 2025, respectively.

We remain directly liable for all claim payments if we are unable to collect the recoverables due from our reinsurers and establish an allowance for expected credit loss against our reinsurance recoverable if we do not expect to recover amounts due from one or more of our reinsurance counterparties.

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We actively monitor the counterparty credit profiles of our reinsurers and each is required to partially collateralize its obligations under the terms of the QSR Transactions.

The allowance for credit loss established against our reinsurance recoverable was deemed immaterial as of September 30, 2025 and December 31, 2024.

The allowance for credit loss established against our reinsurance recoverable was deemed immaterial as of March 31, 2026 and December 31, 2025.

Excess-of-loss Reinsurance

Traditional Reinsurance

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 we refer to collectively as the XOL Transactions.

NMIC is party to eight 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,

NMI HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

2023, the 2024 XOL Transaction, effective January 1, 2024, the 2025 XOL Transaction, effective January 1, 2025, and the 2026-1 XOL Transaction, effective January 1, 2026 – which we refer to collectively as the XOL Transactions.

Each XOL Transaction provides NMIC with aggregate excess-of-loss reinsurance coverage on a defined portfolio of mortgage insurance policies.

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NMIC retains losses in excess of the outstanding reinsurance coverage amount.

Under the terms of the XOL Transactions, NMIC makes risk premium payments to its third-party reinsurance providers for the outstanding reinsurance coverage amount and ceded aggregate premiums earned of $ 10.7 million and $ 31.2 million during the three and nine months ended September 30, 2025, respectively, and $ 9.8 million and $ 28.4 million during the three and nine months ended September 30, 2024, respectively.

Under the terms of the XOL Transactions, NMIC makes risk premium payments to its third-party reinsurance providers for the outstanding reinsurance coverage amount and ceded aggregate premiums earned of $ 11.0 million and $ 10.2 million during the three months ended March 31, 2026 and 2025, respectively.

NMIC applies claims paid on covered policies against its first layer aggregate retained loss exposure under each agreement.

NMIC did not cede any incurred losses on covered policies under the XOL Transactions during the three and nine months ended September 30, 2025 and 2024, as the aggregate first layer risk retention for each agreement was not exhausted during such periods.

NMIC holds optional termination rights which provide it the discretion to terminate each XOL Transaction on or after a specified date.

NMIC did not cede any incurred losses on covered policies under the XOL Transactions during the three months ended March 31, 2026 and 2025, as the aggregate first layer risk retention for each agreement was not exhausted during such periods.

NMIC holds optional termination rights which provide it with the discretion to terminate each XOL Transaction on or after a specified date.

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.

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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.

Current amounts are presented as of September 30, 2025.

NMI HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Current amounts are presented as of March 31, 2026.

($ values in thousands) Inception Date Covered Production Initial Reinsurance Coverage

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283,849 275,896 321,331 321,331

2026-1 XOL (2)

January 1, 2026 1/1/2026 – 12/31/2026

42,371 42,371 76,881 76,881

(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.

(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.

(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.

(2) The initial reinsurance coverage, current reinsurance coverage, initial first layer retained loss and current first layer retained loss for the 2026-1 XOL Transaction will increase as incremental covered production is ceded under the transaction through December 31, 2026.

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).

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.

NMIC retains losses in excess of the respective reinsurance coverage amounts.

NMIC entered into an additional excess-of-loss reinsurance treaty that will provide aggregate coverage for mortgage insurance policies covered under the existing 2021-1 ILN Transaction from April 1, 2026 (the 2026-2 XOL Transaction), at the time of its early redemption.

The treaty incepts on April 1, 2026 and will expire on March 31, 2036.

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 $ 160 million subject to adjustment on the date of inception based on the persistency of the underlying reference pool through such date.

NMIC retains losses in excess of the respective reinsurance coverage amounts.

NMIC has also entered into two additional excess-of-loss reinsurance treaties that will incept and provide coverage in future periods.

The 2026-2 XOL Transaction will incept on April 1, 2026 and provide $ 148 million of aggregate excess-of-loss coverage for mortgage insurance policies covered under the existing 2021-1 ILN Transaction, and the 2027 XOL Transaction will provide $ 125 million of aggregate excess-of-loss coverage for mortgage insurance policies to be written in 2027.

Insurance-Linked Notes

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and Oaktown Re VII Ltd.

(special purpose reinsurance entities collectively referred to as the Oaktown Re Vehicles) effective April 27, 2021 and October 26, 2021, respectively.

(special purpose reinsurance entities collectively referred to as the Oaktown Re Vehicles) effective April 27, 2021 and October 26, 2021,

NMI HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

respectively.

Each agreement provides NMIC with aggregate excess-of-loss reinsurance coverage on a defined portfolio of mortgage insurance policies.

2 unchanged sentences

NMIC makes risk premium payments to the Oaktown Re Vehicles for the applicable outstanding reinsurance coverage amount and pays an additional amount for anticipated operating expenses (capped at $ 250 thousand per year).

NMIC ceded aggregate premiums to the Oaktown Re Vehicles of $ 3.0 million and $ 9.6 million during the three and nine months ended September 30, 2025, respectively, and $ 4.3 million and $ 16.1 million during the three and nine months ended September 30, 2024, respectively.

NMIC ceded aggregate premiums to the Oaktown Re Vehicles of $ 2.4 million and $ 3.3 million during the three months ended March 31, 2026 and 2025, respectively.

NMIC applies claims paid on covered policies against its first layer aggregate retained loss exposure under each excess-of-loss agreement.

NMIC did not cede any incurred losses on covered policies to the Oaktown Re Vehicles during the three and nine months ended September 30, 2025 and 2024, as the aggregate first layer risk retention for each applicable agreement was not exhausted during such periods.

NMIC did not cede any incurred losses on covered policies to the Oaktown Re Vehicles during the three months ended March 31, 2026 and 2025, as the aggregate first layer risk retention for each applicable agreement was not exhausted during such periods.

Under the terms of each excess-of-loss reinsurance agreement, the Oaktown Re Vehicles are required to fully collateralize their outstanding reinsurance coverage amount to NMIC with funds deposited into segregated reinsurance trusts.

3 unchanged sentences

Such insurance-linked notes mature 12.5 years from the inception date of their associated reinsurance agreement.

NMI HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

refer to NMIC’s reinsurance agreements with and the insurance-linked note issuances by Oaktown Re Vehicles individually as the 2021-1 ILN Transaction and 2021-2 ILN Transaction, and collectively as the ILN Transactions.

We refer to NMIC’s reinsurance agreements with and the insurance-linked note issuances by Oaktown Re Vehicles individually as the 2021-1 ILN Transaction and 2021-2 ILN Transaction, and collectively as the ILN Transactions.

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.

4 unchanged sentences

Current amounts are presented as of September 30, 2025.

Current amounts are presented as of March 31, 2026.

( $ values in thousands)

Inception Date Covered Production Initial Reinsurance Coverage Current Reinsurance Coverage Initial First Layer Retained Loss Current First Layer Retained Loss (1)

2021-1 ILN (4)

April 27, 2021 10/1/2020 – 3/31/2021 (2)

5 unchanged sentences

(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.

Under the terms of our ILN Transactions, we are required to maintain a certain level of restricted funds in premium deposit accounts with Bank of New York Mellon until the respective notes have been redeemed in full.

“Cash and Cash Equivalents” on our condensed consolidated balance sheets includes a de minimis restricted amount as of September 30, 2025 and $ 0.1 million as of December 31, 2024.

(4) Effective April 27, 2026, NMIC exercised its optional call to terminate a reinsurance agreement with and the associated insurance-linked notes issued by Oaktown Re VI Ltd.

In connection with the termination, NMIC's excess of loss reinsurance agreement with Oaktown Re VI Ltd.

was commuted and the insurance-linked notes issued by Oaktown Re VI Ltd.

were redeemed in full with a distribution of remaining collateral assets.

NMI HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Reserves for Insurance Claims and Claim Expenses

3 unchanged sentences

We also establish reserves for claim expenses, which represent the estimated cost of the claim administration process, including legal and other fees, as well as other general expenses of administering the claim settlement process.

As of September 30, 2025, we held gross reserves for insurance claims and claim expenses of $ 180.3 million.

During the nine months ended September 30, 2025, we paid 281 claims totaling $ 16.1 million, including 271 claims covered under the QSR Transactions representing $ 3.2 million of ceded claims and claim expenses.

We had 7,093 loans in default in our primary insured portfolio as of September 30, 2025, which represented a 1.05 % default rate against 677,010 total policies in-force, and 6,642 loans in default in our primary portfolio as of December 31, 2024, which represented a 1.01 % default rate against 659,567 total policies in-force.

As of March 31, 2026, we held gross reserves for insurance claims and claim expenses of $ 211.2 million.

During the three months ended March 31, 2026, we paid 170 claims totaling $ 10.8 million, including 164 claims covered under the QSR Transactions representing $ 2.1 million of ceded claims and claim expenses.

We had 8,044 loans in default in our primary insured portfolio as of March 31, 2026, which represented a 1.17 % default rate against 684,977 total policies in-force, and 7,661 loans in default in our primary insured portfolio as of December 31, 2025, which represented a 1.12 % default rate against 684,058 total policies in-force.

The size of the reserve we establish for each defaulted loan (and by extension our aggregate reserve for claims and claim expenses) reflects our best estimate of the future claim payment to be made for each individual loan in default.

Our future claims exposure is a function of the number of defaulted loans that progress to claim payment (which we refer to as frequency) and the amount to be paid to settle such claims (which we refer to as severity).

Our estimates of claims frequency and severity are not formulaic, rather they are broadly synthesized based

NMI HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

on historical observed experience for similarly situated loans and assumptions about future macroeconomic factors.

Our estimates of claims frequency and severity are not formulaic, rather they are broadly synthesized based on historical observed experience for similarly situated loans and assumptions about future macroeconomic factors.

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

For the nine months ended September 30,

For the three months ended March 31,

(In Thousands)

10 unchanged sentences

Total claims and claim expenses incurred 20,661 4,478

36,144 14,291

Less claims paid:

3 unchanged sentences

Reinsurance terminations (4)

( 1,670 ) ( 255 )

Total claims and claim expenses paid 7,012 3,821

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.

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.

Amounts are presented net of reinsurance and included $ 34.8 million attributed to net case reserves and $ 11.7 million attributed to net IBNR reserves for the three months ended March 31, 2026 and $ 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.

NMI HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(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 $ 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.

Amounts are presented net of reinsurance and included $ 15.2 million attributed to net case reserves and $ 10.8 million attributed to net IBNR reserves for the three months ended March 31, 2026 and $ 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.

(4) Represents the settlement of reinsurance recoverables in conjunction with the termination or amendment of certain QSR Transactions.

The “claims incurred” section of the table above shows claims and claim expenses incurred on defaults occurring in current and prior years, including IBNR reserves, and is presented net of reinsurance.

The amount of claims incurred relating to current year defaults increased during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, primarily due to an increase in the total number of new delinquencies emerging during the period tied to the growth and natural seasoning of our portfolio and an increase in the average case reserve established against newly defaulted loans.

Our provision for claims and claim expenses during both the nine months ended September 30, 2025 and 2024 benefited from favorable development on prior year defaults.

We recognized $ 52.4 million and $ 57.2 million of favorable prior year development during the nine months ended September 30, 2025 and 2024, respectively, primarily due to cure activity and ongoing analysis of recent loss development trends.

The amount of claims incurred relating to current year defaults increased during the three months ended March 31, 2026 compared to the three months ended March 31, 2025, primarily due to an increase in the total number of new delinquencies emerging during the period tied to the growth and natural seasoning of our portfolio, and an increase in the average case reserves established against newly defaulted loans.

Our provision for claims and claim expenses during both the three months ended March 31, 2026 and 2025 benefited from favorable development on prior year defaults.

We recognized $ 26.5 million and $ 30.1 million of favorable prior year development during the three months ended March 31, 2026 and 2025, respectively, primarily due to cure activity and ongoing analysis of recent loss development trends.

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

NMI HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Gross reserves of $ 153.0 million related to prior year defaults remained as of March 31, 2026.

Earnings per Share (EPS)

2 unchanged sentences

The following table reconciles the net income and the weighted average shares of common stock outstanding used in the computations of basic and diluted EPS of common stock:

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

2025 2024 2025 2024

For the three months ended March 31,

(In Thousands, except for per share data)

6 unchanged sentences

Earnings per share

$ 1.24 $ 1.17 $ 3.78 $ 3.42

$ 1.22 $ 1.15 $ 3.72 $ 3.36

Basic $ 1.30 $ 1.31

Diluted $ 1.28 $ 1.28

Anti-dilutive shares 6 —

2 unchanged sentences

Our Mortgage Insurance segment provides private mortgage insurance and ancillary loan review services, and our CODM evaluates our performance and allocates resources based on our consolidated financial results, including consolidated revenue, expenses, net income, assets and shareholders' equity.

Our CODM reviews these financial metrics to gauge our performance and make strategic decisions, such as whether to reinvest profits in our Mortgage Insurance segment or return capital to shareholders.

The significant revenue and expense categories that are regularly reviewed by our CODM align with those presented on our condensed consolidated statements of operations and comprehensive income, and segment assets align with total assets as those presented on our condensed consolidated balance sheets.

The accounting policies governing our Mortgage Insurance segment are the same as those described in Item 8, “ Financial Statements and Supplementary Data - Notes to Consolidated Financial Statements - Note 2 - Summary of Accounting Principles” of our 2024 10-K.

Investment income, also referred to as interest revenue, is reported within “ Net Investment Income ” on our condensed consolidated statements of operations and was $ 27.1 million and $ 76.4 million for the three and nine months ended September 30, 2025, respectively, and $ 22.8 million and $ 63.4 million for the three and nine months ended September 30, 2024, respectively .

Amortization and depreciation expense for software, equipment, and leasehold improvements was $ 2.8 million and $ 8.6 million for the three and nine months ended September 30, 2025, respectively, and $ 3.0 million and $ 9.0 million for the three and nine months ended September 30, 2024, respectively.

Our CODM reviews consolidated net income to assess segment profit and loss, and also evaluates the broader set of metrics to gauge our financial performance and make strategic decisions, such as whether to reinvest profits in our Mortgage Insurance segment or return capital to shareholders.

The significant revenue and expense categories that are regularly reviewed by our CODM align with those presented on our condensed consolidated statements of operations and comprehensive income, and segment assets align with total assets as presented on our condensed consolidated balance sheets.

The accounting policies governing our Mortgage Insurance segment are

NMI HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

the same as those described in Item 8, “ Financial Statements and Supplementary Data - Notes to Consolidated Financial Statements - Note 2 - Summary of Accounting Principles” of our 2025 10-K.

Investment income, also referred to as interest revenue, is reported within “ Net Investment Income ” on our condensed consolidated statements of operations and was $ 29.0 million and $ 24.0 million for the three months ended March 31, 2026 and 2025, respectively .

Amortization and depreciation expense for software, equipment, and leasehold improvements was $ 2.5 million and $ 2.9 million for the three months ended March 31, 2026 and 2025, respectively.

We are a U.S.

3 unchanged sentences

federal and various state income tax returns, filed by NMIH on behalf of itself and its subsidiaries.

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.

Our provision for income taxes for interim reporting periods is established based on our estimated annual effective tax rate for a given

NMI HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Our effective tax rate on pre-tax income was 20.5 % and 21.9 % for the three months ended March 31, 2026 and 2025, respectively.

Our provision for income taxes for interim reporting periods is established based on our estimated annual effective tax rate for a given year.

Our effective tax rate may fluctuate between interim periods due to the impact of discrete items not included in our estimated annual effective tax rate, including the tax effects associated with the vesting of RSUs and exercise of options.

1 unchanged sentence

As a mortgage guaranty insurance company, we are eligible to claim a tax deduction for our statutory contingency reserve balance, subject to certain limitations outlined under IRC Section 832(e), and only to the extent we acquire tax and loss bonds in an amount equal to the tax benefit derived from the claimed deduction, which is our intent.

As a result, our interim provision for income taxes for the three and nine months ended September 30, 2025 and 2024 primarily represents a change in our net deferred tax liability.

As of September 30, 2025 and December 31, 2024, we held $ 322.2 million of tax and loss bonds in “Prepaid Federal Income Taxes” on our condensed consolidated balance sheets.

As a result, our interim provision for income taxes for the three months ended March 31, 2026 and 2025 primarily represents a change in our net deferred tax liability.

As of March 31, 2026 and December 31, 2025, we held $ 400.3 million of tax and loss bonds in “Prepaid Federal Income Taxes” on our condensed consolidated balance sheets.

Stockholders' Equity

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

On February 5, 2025, our Board of Directors authorized an additional $ 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 us with the flexibility, based on market and business conditions, stock price and other factors, to repurchase stock from time to time through open market purchases, privately negotiated transactions, or other means, including pursuant to Rule 10b5-1 trading plans.

During the nine months ended September 30, 2025, we repurchased 2.0 million shares at an average price of $ 37.33 per share (excluding associated costs and applicable taxes).

As of September 30, 2025, we had $ 256.4 million of repurchase authority remaining.

During the three months ended March 31, 2026, we repurchased 0.7 million shares at an average price of $ 38.65 per share (excluding associated costs and applicable taxes).

As of March 31, 2026, we had $ 198.2 million of repurchase authorization remaining through December 31, 2027.

The authorization provides us with the flexibility, based on market and business conditions, stock price and other factors, to repurchase stock through open market purchases, privately negotiated transactions, or other means, including pursuant to Rule 10b5-1 trading plans.

Premiums Receivable, Net

2 unchanged sentences

Premiums receivable may be written off prior to 120 days in the ordinary course of business for non-credit events including, but not limited to, the modification or refinancing of an underlying insured loan.

We established a $ 1.5 million and $ 2.2 million reserve for premium write-offs at September 30, 2025 and December 31, 2024, respectively.

We established a $ 1.4 million reserve for premium write-offs at both March 31, 2026 and December 31, 2025.

We separately recognize an allowance for credit losses for premiums receivable based on credit losses expected to arise over the life of the receivable.

Due to the nature of our insurance policies (a necessary precondition for access to mortgage credit for covered borrowers) and the short duration of the related receivables, we do not typically experience credit losses against our premium receivables and the allowance for credit loss established on premium receivable was deemed immaterial at September 30, 2025 and December 31, 2024.

Regulatory Information

3 unchanged sentences

The Wisconsin OCI recognizes only statutory accounting practices prescribed or permitted by the state of Wisconsin for determining and reporting the financial condition and results of operations of an insurance company and for determining its solvency under Wisconsin insurance laws.

NMIC and Re One generated combined statutory net income of $ 30.7 million and $ 98.0 million for the three and nine months ended September 30, 2025, respectively, compared to $ 20.0 million and $ 90.7 million for the three and nine months ended September 30, 2024, respectively.

NMIC and Re One generated combined statutory net income of $ 32.8 million and $ 36.8 million for the three months ended March 31, 2026 and 2025, respectively.

NMI HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The Wisconsin OCI has imposed a prescribed accounting practice for the treatment of statutory contingency reserves that differs from the treatment promulgated by the NAIC.

3 unchanged sentences

While such treatment impacts NMIC's statutory net income, it does not have an effect on NMIC's statutory capital position.

NMI HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The following table presents NMIC's statutory surplus, contingency reserve, statutory capital and risk-to-capital (RTC) ratio as of September 30, 2025 and December 31, 2024.

September 30, 2025 December 31, 2024

The following table presents NMIC's statutory surplus, contingency reserve, statutory capital and risk-to-capital (RTC) ratio as of March 31, 2026 and December 31, 2025.

March 31, 2026 December 31, 2025

(In Thousands)

5 unchanged sentences

(1) Represents the total of the statutory surplus and contingency reserve.

Re One had $ 2.1 million of statutory capital at September 30, 2025 and December 31, 2024.

Re One had $ 2.1 million of statutory capital at both March 31, 2026 and December 31, 2025.

NMIH is not subject to any limitations on its ability to pay dividends except those generally applicable to corporations that are incorporated in Delaware.

1 unchanged sentence

NMIC and Re One are subject to certain rules and regulations prescribed by jurisdictions in which they are authorized to operate and the GSEs that may restrict their ability to pay dividends to NMIH.

NMIC has the capacity to pay $ 98.4 million of aggregate ordinary dividends to NMIH during the twelve-month period ending December 31, 2025, and, on June 2, 2025, NMIC paid a $ 98.4 million ordinary course dividend to NMIH.

NMIC has the capacity to pay $ 101.0 million of aggregate ordinary dividends to NMIH during the twelve-month period ending December 31, 2026.

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 1. Financial Statements