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Item 2. Management’s Discussion and Analysis

2026-05-01 compared with 2025-11-05 · 132 added, 203 removed, 523 unchanged (39% of the section changed)

Management's Discussion and Analysis of Financial Condition and Results of Operations

The following analysis should be read in conjunction with our unaudited condensed consolidated financial statements and the notes thereto included in this report and our audited financial statements, notes thereto and “Management's Discussion and Analysis of Financial Condition and Results of Operations” included in our 2024 10-K, for a more complete understanding of our financial position and results of operations.

The following analysis should be read in conjunction with our unaudited condensed consolidated financial statements and the notes thereto included in this report and our audited financial statements, notes thereto and “Management's Discussion and Analysis of Financial Condition and Results of Operations” included in our 2025 10-K, as well as the “Glossary of Abbreviations and Acronyms” above, for a more complete understanding of our financial position and results of operations.

In addition, investors should review the “Cautionary Note Regarding Forward-Looking Statements” above and the “Risk Factors” detailed in Part II, Item 1A of this report and in Part I, Item 1A of our 2025 10-K, as subsequently updated in other reports we file with the SEC, for a discussion of those risks and uncertainties that have the potential to affect our business, financial condition, results of operations, cash flows or prospects in a material and adverse manner.

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MI plays a critical role in the U.S.

housing market by mitigating mortgage credit risk and facilitating the secondary market sale of high- loan-to-value (LTV) ( i.e., above 80%) residential loans to the GSEs, who are otherwise restricted by their charters from purchasing or guaranteeing high-LTV mortgages that are not covered by certain credit protections.

housing market by mitigating mortgage credit risk and facilitating the secondary market sale of high-LTV ( i.e., above 80%) residential loans to the GSEs, who are otherwise restricted by their charters from purchasing or guaranteeing high-LTV mortgages that are not covered by certain credit protections.

Such credit protection and secondary market sales allow lenders to increase their capacity for mortgage commitments and expand financing access to existing and prospective homeowners.

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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 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).

As of March 31, 2026, we had issued master policies with 2,209 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 March 31, 2026, we had $222.3 billion of primary IIF and $59.5 billion of primary 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.

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Our common stock trades on the Nasdaq under the symbol “NMIH.” Our headquarters is located in Emeryville, California.

As of September 30, 2025, we had 228 employees.

As of March 31, 2026, we had 225 employees.

Our corporate website is located at www.nationalmi.com .

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Macroeconomic factors, including persistent inflation, elevated interest rates, flagging consumer confidence and increasing jobless claims could have a pronounced impact on the housing market, the mortgage insurance industry and our business in future periods.

A marked decline in housing demand, a significant and protracted decrease in house prices or a sustained increase in unemployment could reduce the pace of new business activity in the private mortgage insurance market and negatively impact our future new insurance written (NIW) volume, or contribute to an increase in our future default and claim experience.

A marked decline in housing demand, a significant and protracted decrease in house prices or a sustained increase in unemployment could reduce the pace of new business activity in the private mortgage insurance market and negatively impact our future NIW volume, or contribute to an increase in our future default and claim experience.

Key Factors Affecting Our Results

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We primarily price our policies through a proprietary risk-based pricing platform, which we refer to as Rate GPS ® .

Rate GPS ® considers a broad range of individual variables, including property type, type of loan product, borrower credit characteristics, and lender and market factors, and provides us with the ability to set and charge premium rates commensurate with the underlying risk of each loan that we insure.

While most of our new business is priced through Rate GPS ® , we also offer a rate card pricing option to a limited number of lender customers who require a rate card for operational reasons.

Rate GPS ® considers a broad range of individual and layered risk variables, including borrower credit, loan-level, product and lender attributes, as well as market and geographic factors, and provides us with the ability to set and charge premium rates commensurate with the underlying risk of each loan that we insure.

We also offer a rate card pricing option to a limited number of lender customers when required for business process reasons.

We believe that the utilization of Rate GPS ® provides us with a more granular and analytical approach to evaluating and pricing risk, and that this approach enhances our ability to continue building a high-quality mortgage insurance portfolio and delivering attractive risk-adjusted returns.

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• cession of premiums under third-party reinsurance arrangements.

Premiums are paid either by the borrower (borrower-paid mortgage insurance or BPMI) or the lender (lender-paid mortgage insurance or LPMI) in a single payment at origination (single premium), on a monthly installment basis (monthly premium) or on an annual installment basis (annual premium).

Premiums are paid either by the borrower (BPMI) or the lender (LPMI) in a single payment at origination (single premium), on a monthly installment basis (monthly premium) or on an annual installment basis (annual premium).

Our net premiums written will differ from our net premiums earned due to policy payment type.

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 September 30, 2025 were non-refundable under most cancellation scenarios.

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

the remaining unearned premium balances as earned premium revenue.

Monthly premiums are recognized in the month billed and when the coverage is effective.

Substantially all of our single premium policies in force as of March 31, 2026 were non-refundable under most cancellation scenarios.

If non-refundable single premium policies are canceled, we immediately recognize the remaining unearned premium balances as earned premium revenue.

premiums are recognized in the month billed and when the coverage is effective.

Annual premiums are earned on a straight-line basis over the year of coverage.

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NIW and primary IIF

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

As of and for the three months ended

March 31, 2026 March 31, 2025

(In Millions)

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$ 12,259 $ 222,318 $ 9,221 $ 211,308

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.

NIW increased 33% during the three months ended March 31, 2026 compared to the three months ended March 31, 2025, primarily due to growth in our customer franchise and market presence tied to the increased penetration of existing customer accounts and new customer activations, as well as an increase in the size of the total mortgage insurance market.

Primary IIF increased 5% at March 31, 2026 compared to March 31, 2025, primarily due to the NIW generated between such measurement dates, partially offset by the run-off of in-force policies.

Our persistency rate was 82.2% at March 31, 2026 compared to 84.3% at March 31, 2025.

The following table presents net premiums written and earned for the periods indicated:

Net premiums written and earned

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)

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Net premiums earned 154,806 149,366

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.

Net premiums written increased 6% during the three months ended March 31, 2026 compared to the three months ended March 31, 2025.

Net premiums earned increased 4% during the three months ended March 31, 2026 compared to the three months ended March 31, 2025.

The growth in net premiums written and earned was primarily driven by growth in our monthly IIF and direct monthly pay premium receipts, partially offset by the impact of ceded premiums written and earned under our third-party reinsurance transactions.

The growth in net premiums earned was further impacted by a reduction in the contribution of earnings from single premium policies.

Portfolio Statistics

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Primary portfolio trends As of and for the three months ended

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

March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025

($ Values In Millions, except as noted below)

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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 September 30, As of and for the nine months ended September 30,

2025 2024 2025 2024

Primary IIF As of and for the three months ended March 31,

(In Millions)

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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 September 30,

Primary IIF and RIF As of March 31,

IIF RIF IIF RIF

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We utilize certain risk principles that form the basis of how we underwrite and originate NIW.

We have established prudential underwriting standards and loan-level eligibility matrices which prescribe the maximum LTV, minimum borrower FICO score, maximum borrower debt-to-income (DTI) ratio, maximum loan size, property type, loan type, loan term and occupancy status of loans that we will insure and memorialized these standards and eligibility matrices in our Underwriting Guideline Manual that is publicly available on our website.

We have established prudential underwriting standards and loan-level eligibility matrices which prescribe the maximum LTV, minimum borrower FICO score, maximum borrower DTI ratio, maximum loan size, property type, loan type, loan term and occupancy status of loans that we will insure and memorialized these standards and eligibility matrices in our Underwriting Guideline Manual that is publicly available on our website.

Our underwriting standards and eligibility criteria are designed to limit the layering of risk in a single insurance policy.

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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 September 30, For the nine months ended September 30,

2025 2024 2025 2024

For the three months ended March 31,

(In Millions)

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Weighted average FICO 762 758

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 Millions)

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NIW by purchase/refinance mix

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 Millions)

Purchase $ 9,367 $ 8,822

596 510 1,646 997

Total $ 12,259 $ 9,221

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 September 30,

Primary IIF by FICO As of March 31,

($ Values In Millions)

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Total $ 222,318 100 % $ 211,308 100 %

Primary RIF by FICO As of September 30,

Primary RIF by FICO As of March 31,

($ Values In Millions)

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Total $ 59,517 100 % $ 56,515 100 %

Primary IIF by LTV As of September 30,

Primary IIF by LTV As of March 31,

($ Values In Millions)

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Total $ 222,318 100 % $ 211,308 100 %

Primary RIF by LTV As of September 30,

Primary RIF by LTV As of March 31,

($ Values In Millions)

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Total $ 59,517 100 % $ 56,515 100 %

Primary RIF by Loan Type As of September 30,

Primary RIF by Loan Type As of March 31,

Fixed 98 % 98 %

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Total 100 % 100 %

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

As of September 30, 2025

The table below presents selected primary portfolio statistics, by book year, as of March 31, 2026.

As of March 31, 2026

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)

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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 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,

The distribution of our primary RIF as of March 31, 2026 is not necessarily representative of the geographic distribution we expect in the future.

Top 10 primary RIF by state As of March 31,

California 10.1 % 10.1 %

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Illinois 4.0 3.8

Washington 3.7 3.9

Virginia 3.7 3.7

Washington 3.6 3.9

Pennsylvania 3.6 3.4

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A loan is considered to be in default as of the payment date at which a borrower has missed the preceding two or more consecutive monthly payments.

establish reserves for loans that have been reported to us in default by servicers, referred to as case reserves, and additional loans that we estimate (based on actuarial review and other factors) to be in default that have not yet been reported to us by servicers, referred to as IBNR.

We establish reserves for loans that have been reported to us in default by servicers, referred to as case reserves, and additional loans

that we estimate (based on actuarial review and other factors) to be in default that have not yet been reported to us by servicers, referred to as IBNR.

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

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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 September 30, For the nine months ended September 30,

2025 2024 2025 2024

For the three months ended March 31,

(In Thousands)

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

18,554 10,321 36,144 14,291

Less claims paid:

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Current year (2)

170 180 280 180

Prior years (3)

4,138 1,942 12,607 4,265

Reinsurance terminations (4)

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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.

(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.

See Item 1, “ Financial Statements - Notes to Condensed Consolidated Financial Statements - Note 5, Reinsurance” for additional information.

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.

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.

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

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

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,

Beginning default inventory 7,661 6,642

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Ending default inventory 8,044 6,859

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.

Ending default inventory increased from March 31, 2025 to March 31, 2026, primarily due to the growth and seasoning of our insured portfolio, 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 September 30, For the nine months ended September 30,

2025 2024 2025 2024

For the three months ended March 31,

($ Values In Thousands)

Number of claims paid (1)

93 67 281 168

Total amount paid for claims $ 10,776 $ 5,225

Average amount paid per claim

$ 58 $ 40 $ 57 $ 34

73 % 64 % 74 % 58 %

(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.

(1) Count includes 12 and 20 claims settled without payment during the three months ended March 31, 2026 and 2025, 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 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.

We paid 170 and 95 claims during the three months ended March 31, 2026 and 2025, 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 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.

Our claims severity was 88% and 69% for the three months ended March 31, 2026 and 2025, respectively.

The increase in claims severity for the three months ended March 31, 2026, was primarily due to an increase in the proportion of claims related to loans originated in more recent years.

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

An increase in the value of the homes collateralizing the mortgages we insure provides additional equity support to our risk exposure and raises the prospect of a third-party sale of a foreclosed property, which can mitigate the severity of our settled claims.

The number of claims paid and our severity experience in future periods may be impacted if developing economic cycles impose financial strain on borrowers, and each could increase if house price declines serve to limit the alternative paths and incentives to cure delinquencies that are available to defaulted borrowers or erode the equity value of the homes collateralizing the mortgages we insure.

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Average reserve per default:

As of September 30,

As of March 31,

(In Thousands)

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(2) Amount includes claims adjustment expenses.

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 reserve per default increased from March 31, 2025 to March 31, 2026, primarily 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.

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Under the PMIERs, approved insurers must maintain available assets that equal or exceed minimum required assets , which is an amount equal to the greater of (i) $400 million or (ii) a total risk-based required asset amount.

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.

The risk-based required asset amount is a function of the risk profile of an approved insurer's RIF, assessed on a loan-by-loan basis and considered against certain risk-based factors derived from tables set out in the PMIERs, which is then adjusted on an aggregate basis for reinsurance transactions approved by the GSEs, such as with respect to our ILN Transactions, XOL Transactions and QSR Transactions.

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

The risk-based required asset amount is a function of the risk profile of an approved insurer's RIF, assessed on a loan-by-loan basis and considered against certain risk-based factors derived from tables set out in the PMIERs, which is then adjusted on an aggregate basis for reinsurance transactions approved by the GSEs, such as with respect to our QSR Transactions, XOL Transactions and ILN Transactions.

The aggregate gross risk-based required asset amount for performing, primary insurance is subject to a floor of 5.6% of performing primary adjusted RIF .

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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 September 30,

As of March 31,

(In Thousands)

2 unchanged sentences

2,165,418 1,867,414

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.

Available assets were $3.6 billion at March 31, 2026, compared to $3.2 billion at March 31, 2025.

The $400 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 $2.2 billion at March 31, 2026, compared to $1.9 billion at March 31, 2025.

The $298 million increase in the net 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, and was further impacted by the increase in our default inventory and defaulted RIF.

Consolidated Results of Operations

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

2025 2024 2025 vs.

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

Net premiums earned $ 151,323 $ 143,343 $ 7,980 6 %

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

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 18,554 10,321 8,233 80 %

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

Service expenses 162 208 (46) (22) %

Interest expense 7,124 7,076 48 1 %

Total expenses 54,996 46,765 8,231 18 %

Income before income taxes 123,683 119,327 4,356 4 %

Income tax expense 27,684 26,517 1,167 4 %

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

Earnings per share - Basic $ 1.24 $ 1.17 $ 0.07 6 %

Earnings per share - Diluted $ 1.22 $ 1.15 $ 0.07 6 %

Loss ratio (1)

Expense ratio (2)

19.3 % 20.3 %

Combined ratio (3)

31.5 % 27.5 %

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

Consolidated statements of operations For the three months ended March 31, $ Change

2026 2025 2026 vs.

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Net investment income 28,604 23,686 4,918 21

Net realized investment losses

Net realized investment (losses) gains

(147) 24 (171) (713)

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33.1 % 23.2 %

For the nine months ended September 30, $ Change

For the three months ended March 31, $ Change

Non-GAAP financial measures (3)

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(2) Expense ratio is calculated by dividing underwriting and operating expenses by net premiums earned.

(3) Combined ratio may not foot due to rounding.

(4) Not meaningful.

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

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.

Net premiums earned increased during the three months ended March 31, 2026 compared to the three months ended March 31, 2025 primarily due to growth in our monthly IIF and direct monthly pay premium receipts, partially offset by the impact of ceded premiums under our third-party reinsurance transactions and a reduction in the contribution of earnings from single premium policies.

Net investment income increased during the three months ended March 31, 2026 compared to the three months ended March 31, 2025 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.

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 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.

Insurance claims and claim expenses 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 number of newly defaulted loans that emerged during the period 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 months ended March 31, 2026 compared to the three months ended March 31, 2025 primarily due to an increase in certain technology expenses and employee compensation costs, partially offset by an increase in ceding commissions received under our QSR Transactions and a decline in depreciation and amortization expenses.

Service expenses represent third-party costs incurred by NMIS in connection with the services it provides.

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Interest expense primarily reflects the carrying costs of our outstanding debt.

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 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.

For further information, see Item 1, “ Financial Statements - Notes to Condensed Consolidated Financial Statements - Note 4, Debt.”

Income tax expense decreased during the three months ended March 31, 2026 compared to the three months ended March 31, 2025 primarily due to a decline in our pre-tax income and a decrease in our effective tax rate.

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

taxpayer, we are subject to a statutory U.S.

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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 nine months ended September 30, 2025 and 2024 include the discrete tax effects of the vesting of RSUs.

Our effective tax rate for the three months ended March 31, 2026 and 2025 reflects the discrete tax effects of the vesting of RSUs, and our effective tax for the three months ended March 31, 2026 further reflects the exercise of options.

See Item 1, “ Financial Statements - Notes to Condensed Consolidated Financial Statements - Note 9, Income Taxes.”

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.

Net income and adjusted net income decreased during the three months ended March 31, 2026 compared to the three months ended March 31, 2025 primarily due to an increase in our insurance claims and claim expenses, partially offset by growth in our total revenues.

Diluted and adjusted diluted EPS were unchanged for the three months ended March 31, 2026 compared to the three months ended March 31, 2025, with the decrease in net income and adjusted net income offset by 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 September 30, $ Change

2025 2024 2025 vs.

As reported ($ In Thousands, except for per share data)

Income before income taxes $ 123,683 $ 119,327 $ 4,356 4 %

Income tax expense 27,684 26,517 1,167 4 %

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

Net realized investment (gains) losses

(321) 10 (331) NM (2)

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

Income tax (benefit) expense on adjustments (1)

(67) 2 (69) NM (2)

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

Weighted average diluted shares outstanding 78,830 81,045 (2,215) (3) %

Adjusted diluted EPS $ 1.21 $ 1.15 $ 0.06 5 %

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

Non-GAAP Financial Measure Reconciliations For the three months ended March 31, $ Change

2026 2025 2026 vs.

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Net income $ 99,330 $ 102,559 $ (3,229) (3) %

Net realized investment losses

55 10 45 450 %

Capital markets transaction costs

Net realized investment losses (gains)

147 (24) 171 (713) %

Adjusted income before tax $ 125,090 $ 131,347 $ (6,257) (5) %

Income tax expense on adjustments (1)

Income tax expense (benefit) on adjustments (1)

31 (5) 36 (720) %

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federal corporate income tax rate of 21%, except for those items that are not eligible for an income tax deduction.

(2) Not meaningful.

Explanation and Reconciliation of Our Use of Non-GAAP Financial Measures

We believe the use of the non-GAAP measures of adjusted income before tax, adjusted net income and adjusted diluted EPS enhances the comparability of our fundamental financial performance between periods, and provides relevant information to investors.

We believe the use of the non-GAAP measures of adjusted income before tax, adjusted net income and adjusted diluted EPS enhance the comparability of our fundamental financial performance between periods, and provide relevant information to investors.

These non-GAAP financial measures align with the way the company's business performance is evaluated by management.

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Identification and exclusion of these items provides clarity about the impact special or rare occurrences may have on our current financial performance.

Past adjustments under this category include infrequent, unusual or non-operating adjustments related to severance, restricted stock modification and other expenses incurred in connection with the CEO transition announced in September 2021 and the effects of the release of the valuation allowance recorded against our net federal and certain state net deferred tax assets in 2016 and the re-measurement of our net deferred tax assets in connection with tax reform in 2017.

Past adjustments under this category include infrequent, unusual or non-operating adjustments related to severance, restricted stock modification and other expenses incurred in connection with the CEO transition announced in 2021, effects of the release of the valuation allowance recorded against our net federal and certain state net deferred tax assets in 2016 and the re-measurement of our net deferred tax assets in connection with tax reform in 2017.

We believe such items are infrequent or non-recurring in nature, and are not indicative of the performance of, or ongoing trends in, our primary operating activities or business.

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

Consolidated balance sheets March 31, 2026 December 31, 2025 $ Change

(In Thousands)

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Total liabilities and shareholders' equity $ 3,909,638 $ 3,841,098 $ 68,540 2 %

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.

Total cash and investments increased at March 31, 2026 compared to December 31, 2025 with the addition of incremental cash provided by operating activities, partially offset by share repurchase activity during the three months ended March 31, 2026 and an increase in the unrealized loss position of our fixed income portfolio primarily tied to changes in interest rates during the period.

Cash and investments at March 31, 2026 included $73.0 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 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.

Net deferred policy acquisition costs decreased at March 31, 2026 compared to December 31, 2025 primarily due to the recognition of previously deferred policy acquisition costs during the three months ended March 31, 2026, largely offset by the deferral of certain costs associated with the origination of new policies during the period.

Net software and equipment decreased at March 31, 2026 compared to December 31, 2025 due to the amortization of previously capitalized amounts during the three months ended March 31, 2026, partially offset by the capitalization of certain software and equipment expenditures during the period.

Reinsurance recoverable increased at March 31, 2026 compared to December 31, 2025 due to an increase in ceded losses recoverable under our QSR Transactions tied to an increase in our gross reserve for insurance claims and claim expenses during the three months ended March 31, 2026.

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 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.

Other assets increased at March 31, 2026 compared to December 31, 2025 primarily due to an increase in accrued investment income and prepaid expenses during the three months ended March 31, 2026.

Unearned premiums decreased at March 31, 2026 compared to December 31, 2025 due to the amortization of existing unearned premiums through earnings in accordance with the expiration of risk on related single premium policies and the cancellations of other single premium policies during the three months ended March 31, 2026, partially offset by single premium policy originations during the period.

Accounts payable and accrued expenses increased at March 31, 2026 compared to December 31, 2025 primarily due to an increase in unsettled trade payables related to the purchase of certain investment securities, as well as an increase in taxes payable during the three months ended March 31, 2026, partially offset by the settlement of previously accrued compensation expenses and accrued interest on the 2024 Notes, which is payable semi-annually in February and August, during the period.

Reserve for insurance claims and claim expenses increased at March 31, 2026 compared to December 31, 2025 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 delinquency status during the three months ended March 31, 2026.

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 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.

Net deferred tax liability increased at March 31, 2026 compared to December 31, 2025 due to an increase in the claimed deductibility of our statutory contingency reserve during the three months ended March 31, 2026, partially offset by an increase in the aggregate unrealized loss position of our fixed income portfolio recorded in other comprehensive income during the period.

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 nine months ended September 30, $ Change

Consolidated cash flows For the three months ended March 31, $ Change

2026 2025 2026 vs.

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$ 26,742 $ 19,901 $ 6,841

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.

Net cash provided by operating activities increased during the three months ended March 31, 2026 compared to the three months ended March 31, 2025 primarily due to increases in our net premium receipts, growth in our investment income and a decrease in interest payments on the 2024 Notes tied to the timing of the first semi-annual interest payment made in February 2025, partially offset by an increase in claim settlement costs.

Cash used in investing activities for the three months ended March 31, 2026 and 2025 reflects the purchase of fixed and short-term maturities with cash provided by operating activities, and the reinvestment of sales proceeds, maturities, redemptions, and coupon payments 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 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 September 30, 2025, NMIH had $148.1 million of cash and cash equivalents, and investments.

As of March 31, 2026, NMIH had $73.0 million of cash, cash equivalents and investments.

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

NMIC paid a $98.4 million ordinary course dividend to NMIH on June 2, 2025, representing its full ordinary course dividend capacity payable under Wisconsin insurance laws for the twelve-month period ending December 31, 2025.

NMIC has the capacity to pay $101 million of aggregate ordinary dividends to NMIH during the twelve-month period ending December 31, 2026.

NMIH also has access to $250 million of undrawn revolving credit capacity under the 2024 Revolving Credit Facility.

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

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.

On February 5, 2025, our Board of Directors authorized a $250 million repurchase program, effective through December 31, 2027.

The authorization provides 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 three months ended March 31, 2026, NMIH repurchased 0.7 million shares of common stock at a total cost of $27.7 million, excluding associated costs and applicable taxes.

As of March 31, 2026, NMIH had $198.2 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 September 30, 2025, the applicable commitment fee was 0.225%.

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

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 September 30, 2025.

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

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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Dividends in larger amounts, or “extraordinary” dividends, are subject to the Wisconsin OCI's prior approval.

Under Wisconsin insurance laws, an extraordinary dividend is defined as any payment or distribution that, together with other dividends and distributions made within the preceding twelve months, exceeds the lesser of (i) 10% of the insurer's statutory policyholders' surplus as of the preceding December 31 or (ii) adjusted statutory net income for the twelve-month period ending the preceding December 31 .

On June 2, 2025, NMIC paid a $98.4 million ordinary course dividend to NMIH, representing its full ordinary course dividend capacity payable under Wisconsin insurance laws for the twelve-month period ending December 31, 2025.

Under Wisconsin insurance laws, an ordinary dividend is defined as any payment or distribution that, together with other dividends and distributions made within the preceding twelve months, is less than the lesser of (i) 10% of the insurer's statutory policyholders' surplus as of the preceding December 31 or (ii) adjusted statutory net income for the twelve-month period ending the preceding December 31 .

NMIC has the capacity to pay $101 million of aggregate ordinary dividends to NMIH during the twelve-month period ending December 31, 2026.

As an approved insurer under PMIERs, NMIC would generally be subject to additional restrictions on its ability to pay dividends to NMIH if it failed to meet the financial requirements prescribed by PMIERs.

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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.

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

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

The risk-based required asset amount under PMIERs is determined at an individual policy-level based on the risk characteristics of each insured loan.

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

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.

As of March 31, 2026, NMIC had a RTC ratio of 13.3:1 with $45.0 billion of primary RIF, net of reinsurance, and $3.4 billion of total statutory capital, including contingency reserves.

Re One has no RIF 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 September 30, 2025, NMIC had $3.0 billion of cash and investments, including $88.2 million of cash and cash equivalents.

At March 31, 2026, NMIC had $3.2 billion of cash and investments, including $37.1 million of cash and cash equivalents.

NMIC's principal liquidity demands include funds for the payment of (i) reimbursable holding company expenses, (ii) premiums ceded under our reinsurance transactions (iii) claims payments, and (iv) taxes as due or otherwise deferred through the purchase of tax and loss bonds.

NMIC's cash inflow is generally significantly in excess of its cash outflow in any given period.

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.

During the twelve-month period ended March 31, 2026, NMIC generated $423 million of cash flow from operations and received an additional $577 million of cash flow on the sale, 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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Given the relatively small size of our current population of defaulted policies, the generally extended duration of the default-to-foreclosure-to-claim cycle, and the potential availability of forbearance, foreclosure moratorium and other borrower assistance programs (which serve to further extend the default-to-foreclosure-to-claim cycle timeline), we do not expect NMIC to use a meaningful amount of cash to settle claims in the near-term.

We believe that we have sufficient liquidity available at both NMIH and NMIC to meet our operating cash and capital obligations over the next 12 months.

Debt and Financial Strength Ratings

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

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

Consolidated Investment Portfolio

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Our investment portfolio is comprised entirely of fixed maturity instruments.

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%.

As of March 31, 2026, the fair value of our investment portfolio was $3.2 billion and we held an additional $70.7 million of cash and cash equivalents.

Pre-tax book yield on the investment portfolio for the three months ended March 31, 2026 was 3.5%.

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 September 30, 2025 December 31, 2024

Percentage of portfolio's fair value March 31, 2026 December 31, 2025

Corporate debt securities 67 % 64 %

Municipal debt securities 18 19

Cash, cash equivalents, and short-term investments 8 5

treasury securities and obligations of U.S.

government agencies

Asset-backed securities 2 1

Cash, cash equivalents, and short-term investments 3 4

Other asset-backed securities

agency mortgage-backed securities

Total 100 % 100 %

Investment portfolio ratings at fair value (1)

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

Total 100 % 100 %

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(3) Includes +/– ratings.

(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 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.

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

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.

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.

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.

Critical Accounting Estimates

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Our actual results may differ from these estimates under different assumptions or conditions.

We believe that the assumptions and estimates associated with revenue recognition, our investment portfolio, deferred policy acquisition costs, and reserves for insurance claims and claim expenses have the greatest potential impact on our consolidated financial statements.

We believe that the assumptions and estimates associated with revenue recognition and reserves for insurance claims and claim expenses have the greatest potential impact on our consolidated financial statements.

Therefore, we consider these to be our 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