What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-07-31 compared with 2026-05-01 · 185 added, 115 removed, 540 unchanged (36% of the section changed)

16 unchanged sentences

Since formation, we have sought to establish customer relationships with a broad group of mortgage lenders and build a diversified, high-quality insured portfolio.

As of 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.

As of June 30, 2026, we had issued master policies with 2,223 customers, including national and regional mortgage banks, money center banks, credit unions, community banks, builder-owned mortgage lenders, internet-sourced lenders and other non-bank lenders.

As of June 30, 2026, we had $227.1 billion of primary IIF and $60.8 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.

1 unchanged sentence

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

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

As of June 30, 2026, we had 225 employees.

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

5 unchanged sentences

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.

Market Developments

In April 2026, the GSEs began accepting mortgage loans evaluated using the VantageScore 4.0 credit scoring framework as an alternative to FICO scores from a limited number of approved lenders.

During the second quarter of 2026, we insured a small number of loans evaluated using the VantageScore 4.0 framework.

Such loans represented an immaterial portion of our new insurance written during the period;

however, we expect our VantageScore 4.0 volume will increase in future periods as more lenders incorporate the new standard into their origination and delivery processes.

We have evaluated VantageScore 4.0, including through internal analysis and a review of third-party and industry validation work, and believe that it is an appropriate credit scoring framework for use in our underwriting, pricing and risk management processes.

Key Factors Affecting Our Results

25 unchanged sentences

For single premiums, we receive a single premium payment at origination, which is earned over the estimated life of the policy.

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

Substantially all of our single premium policies in force as of June 30, 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.

Monthly 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.

21 unchanged sentences

NIW and primary IIF

As of and for the three months ended

March 31, 2026 March 31, 2025

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

2026 2025 2026 2025

(In Millions)

2 unchanged sentences

$ 16,050 $ 227,095 $ 12,464 $ 214,653 $ 28,309 $ 21,685

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.

NIW increased 29% and 31%, respectively, during the three and six months ended June 30, 2026 compared to the three and six months ended June 30, 2025, 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 6% at June 30, 2026 compared to June 30, 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 81.4% at June 30, 2026 compared to 84.1% at June 30, 2025.

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

Net premiums written and earned

For the three months ended March 31,

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

2026 2025 2026 2025

(In Thousands)

1 unchanged sentence

Net premiums earned 157,524 149,066 312,330 298,432

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.

Net premiums written increased 8% and 7%, respectively, and net premiums earned increased 6% and 5%, respectively, during the three and six months ended June 30, 2026 compared to the three and six months ended June 30, 2025, primarily driven by growth in our monthly IIF and direct monthly pay premium receipts.

The year-over-year increases in net premiums written and earned were further impacted by changes in ceded premiums written and earned under our third-party reinsurance transactions during each respective period.

Portfolio Statistics

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Primary portfolio trends As of and for the three months ended

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

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

($ Values In Millions, except as noted below)

34 unchanged sentences

The table below presents a summary of the change in total primary IIF for the dates and periods indicated.

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

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

2026 2025 2026 2025

(In Millions)

7 unchanged sentences

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

Primary IIF and RIF As of March 31,

Primary IIF and RIF As of June 30,

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 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 credit 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.

2 unchanged sentences

We monitor the concentrations of various risk attributes in our insurance portfolio, which may change over time, in part, as a result of regional conditions or public policy shifts.

The tables below present our NIW by FICO, LTV and purchase/refinance mix for the periods indicated.

The tables below present our NIW by credit score, LTV and purchase/refinance mix for the periods indicated.

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 March 31,

NIW by credit score (1)

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

2026 2025 2026 2025

(In Millions)

6 unchanged sentences

Total $ 16,050 $ 12,464 $ 28,309 $ 21,685

Weighted average FICO 762 758

For the three months ended March 31,

Weighted average credit score 760 756 761 757

(1) Includes de minimis amounts related to loans with VantageScore 4.0 credit scores for the three and six months ended June 30, 2026.

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

2026 2025 2026 2025

(In Millions)

6 unchanged sentences

NIW by purchase/refinance mix

For the three months ended March 31,

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

2026 2025 2026 2025

(In Millions)

Purchase $ 14,291 $ 11,813 $ 23,658 $ 20,635

1,759 651 4,651 1,050

Total $ 16,050 $ 12,464 $ 28,309 $ 21,685

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 March 31,

The tables below present our total primary IIF and RIF by credit score and LTV, and total primary RIF by loan type as of the dates indicated.

Primary IIF by credit score (1)

As of June 30,

($ Values In Millions)

6 unchanged sentences

Total $ 227,095 100 % $ 214,653 100 %

Primary RIF by FICO As of March 31,

(1) Includes de minimis amounts related to loans with VantageScore 4.0 credit scores as of June 30, 2026.

Primary RIF by credit score (1)

As of June 30,

($ Values In Millions)

6 unchanged sentences

Total $ 60,825 100 % $ 57,496 100 %

Primary IIF by LTV As of March 31,

(1) Includes de minimis amounts related to loans with VantageScore 4.0 credit scores as of June 30, 2026.

Primary IIF by LTV As of June 30,

($ Values In Millions)

4 unchanged sentences

Total $ 227,095 100 % $ 214,653 100 %

Primary RIF by LTV As of March 31,

Primary RIF by LTV As of June 30,

($ Values In Millions)

4 unchanged sentences

Total $ 60,825 100 % $ 57,496 100 %

Primary RIF by Loan Type As of March 31,

Primary RIF by Loan Type As of June 30,

Fixed 98 % 98 %

3 unchanged sentences

Total 100 % 100 %

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

As of March 31, 2026

The table below presents selected primary portfolio statistics, by book year, as of June 30, 2026.

As of June 30, 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 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,

The distribution of our primary RIF as of June 30, 2026 is not necessarily representative of the geographic distribution we expect in the future.

Top 10 primary RIF by state As of June 30,

California 10.0 % 10.1 %

1 unchanged sentence

Florida 7.1 7.2

Georgia 4.0 4.1

Illinois 4.1 3.9

Georgia 4.0 4.0

Virginia 3.7 3.7

Washington 3.6 3.9

Pennsylvania 3.6 3.5

New York 3.3 3.2

Washington 3.5 3.8

North Carolina 3.4 3.2

Total 51.1 % 51.2 %

4 unchanged sentences

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.

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

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

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

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

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

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

6 unchanged sentences

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

For the three months ended March 31,

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

2026 2025 2026 2025

(In Thousands)

10 unchanged sentences

Total claims and claim expenses incurred (4)

13,147 13,112 33,808 17,590

Less claims paid:

1 unchanged sentence

Current year (2)

39 110 39 110

Prior years (3)

10,460 4,393 19,142 8,469

Reinsurance terminations (5)

9 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 $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.

Amounts are presented net of reinsurance and included $61.4 million attributed to net case reserves and $11.8 million attributed to net IBNR reserves for the six months ended June 30, 2026 and $51.5 million attributed to net case reserves and $8.8 million attributed to net IBNR reserves for the six months ended June 30, 2025.

(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 $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.

Amounts are presented net of reinsurance and included $28.8 million attributed to net case reserves and $10.8 million attributed to net IBNR reserves for the six months ended June 30, 2026 and $34.9 million attributed to net case reserves and $8.1 million attributed to net IBNR reserves for the six months ended June 30, 2025.

(4) Excludes aggregate termination fees of $0.3 million for the six months ended June 30, 2025 incurred in connection with the amendment of certain QSR Transactions.

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

1 unchanged sentence

We may increase or decrease our claim estimates and reserves as we learn additional information about individual defaulted loans and continue to observe and analyze loss development trends in our portfolio.

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

Gross reserves of $122.6 million related to prior year defaults remained as of June 30, 2026.

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

For the three months ended March 31,

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

2026 2025 2026 2025

Beginning default inventory 8,044 6,859 7,661 6,642

4 unchanged sentences

Ending default inventory 8,020 6,709 8,020 6,709

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.

Ending default inventory increased from June 30, 2025 to June 30, 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 March 31,

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

2026 2025 2026 2025

($ Values In Thousands)

Number of claims paid (1)

183 93 353 188

Total amount paid for claims $ 12,896 $ 5,512 $ 23,672 $ 10,737

Average amount paid per claim

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

$ 70 $ 59 $ 67 $ 57

89 % 82 % 88 % 75 %

(1) Count includes 15 and 27 claims settled without payment during the three and six months ended June 30, 2026, respectively, and 16 and 36 claims settled without payment during the three and six months ended June 30, 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 170 and 95 claims during the three months ended March 31, 2026 and 2025, respectively.

We paid 183 and 353 claims during the three and six months ended June 30, 2026, respectively, and 93 and 188 claims during the three and six months ended June 30, 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 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.

Our claims severity was 89% and 88% for the three and six months ended June 30, 2026, respectively, compared to 82% and 75% for the three and six months ended June 30, 2025, respectively.

The increase in claims severity for the three and six months ended June 30, 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.

3 unchanged sentences

Average reserve per default:

As of March 31,

As of June 30,

(In Thousands)

3 unchanged sentences

(2) Amount includes claims adjustment expenses.

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 reserve per default increased from June 30, 2025 to June 30, 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.

2 unchanged sentences

The PMIERs establish operational, business, remedial and financial requirements applicable to approved insurers .

The PMIERs financial requirements prescribe a risk-based methodology whereby the amount of assets required to be held against each insured loan is determined based on certain loan-level risk characteristics, such as FICO, vintage (year of origination), performing vs.

The PMIERs financial requirements prescribe a risk-based methodology whereby the amount of assets required to be held against each insured loan is determined based on certain loan-level risk characteristics, such as credit score, vintage (year of origination), performing vs.

non-performing ( i.e., current vs.

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We continuously monitor NMIC's compliance with the PMIERs.

On July 29, 2026, the GSEs updated PMIERs to establish risk-based required asset factors for loans carrying a VantageScore 4.0 credit score.

The updated PMIERs will take effect on September 30, 2026.

We do not expect the updated PMIERs to have a material impact on our available assets or risk-based required assets , and we expect to remain in full compliance with the existing and updated PMIERs, as applicable, prior to, on and after September 30, 2026.

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 March 31,

As of June 30,

(In Thousands)

2 unchanged sentences

2,105,409 1,926,517

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.

Available assets were $3.7 billion at June 30, 2026, compared to $3.2 billion at June 30, 2025.

The $412 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 dividend from NMIC to NMIH in June 2026.

Net risk-based required assets were $2.1 billion at June 30, 2026, compared to $1.9 billion at June 30, 2025.

The $179 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.

Consolidated Results of Operations

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

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

2026 2025 2026 vs.

2 unchanged sentences

Net investment income 30,331 24,949 5,382 22

Net realized investment (losses) gains

Net realized investment losses (229) (400) 171 (43)

Other revenues 265 164 101 62

Total revenues 187,891 173,779 14,112 8

Insurance claims and claim expenses 13,147 13,445 (298) (2)

Underwriting and operating expenses 30,492 29,508 984 3

Service expenses 190 110 80 73

Interest expense 7,116 7,115 1 —

Total expenses 50,945 50,178 767 2

Income before income taxes 136,946 123,601 13,345 11

Income tax expense 31,158 27,450 3,708 14

Net income $ 105,788 $ 96,151 $ 9,637 10 %

Earnings per share - Basic $ 1.40 $ 1.23 $ 0.17 14 %

Earnings per share - Diluted $ 1.38 $ 1.21 $ 0.17 14 %

Loss ratio (1)

Expense ratio (2)

19.4 % 19.8 %

Combined ratio 27.7 % 28.8 %

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

2026 2025 2026 vs.

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

Net premiums earned $ 312,330 $ 298,432 $ 13,898 5 %

Net investment income 58,935 48,635 10,300 21

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

Other revenues 477 334 143 43

15 unchanged sentences

30.4 % 26.0 %

For the three months ended March 31, $ Change

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

Non-GAAP financial measures (3)

4 unchanged sentences

Adjusted diluted EPS 1.38 1.22 0.16 13 %

For the six months ended June 30, $ Change

Non-GAAP financial measures (3)

2026 2025 2026 vs.

($ In Thousands, except for per share data)

Adjusted income before tax $ 262,265 $ 255,348 $ 6,917 3 %

Adjusted net income 205,415 199,007 6,408 3 %

Adjusted diluted EPS 2.67 2.50 0.17 7 %

(1) Loss ratio is calculated by dividing insurance claims and claim expenses by net premiums earned.

1 unchanged sentence

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

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.

Net premiums earned increased during the three and six months ended June 30, 2026 compared to the three and six months ended June 30, 2025 primarily due to growth in our monthly IIF and direct monthly pay premium receipts, partially offset by a reduction in the contribution of earnings from single premium policies.

The year-over-year increases in net premiums earned were further impacted by changes in ceded premiums earned under our third-party reinsurance transactions during each respective

Net investment income increased during the three and six months ended June 30, 2026 compared to the three and six months ended June 30, 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.

2 unchanged sentences

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

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.

Insurance claims and claim expenses increased during the six months ended June 30, 2026 compared to the six months ended June 30, 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 and six months ended June 30, 2026 compared to the three and six months ended June 30, 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.

3 unchanged sentences

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.

Income tax expense increased during the three and six months ended June 30, 2026 compared to the three and six months ended June 30, 2025 primarily due to an increase in our pre-tax income.

Our effective tax rate on pre-tax income was 22.8% and 21.7% for the three and six months ended June 30, 2026, respectively, compared to 22.2% and 22.1% for the three and six months ended June 30, 2025, respectively.

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

1 unchanged sentence

Our provision for income taxes for interim periods is established based on our estimated annual effective tax rate for a given year and reflects the impact of discrete tax effects in the period in which they occur.

Our effective tax 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.

Our effective tax rate for the three and six months ended June 30, 2026 and 2025 reflects the discrete tax effects of the vesting of RSUs, and our effective tax rate for the six months ended June 30, 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 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.

Net income and adjusted net income increased during the three and six months ended June 30, 2026 compared to the three and six months ended June 30, 2025 primarily due to growth in our total revenues, partially offset by increases in our underwriting and operating expenses and income tax expense.

The year-over-year increase in net income and adjusted net income during the six months ended June 30, 2026 was further impacted by an increase in our insurance claims and claim expenses during the period.

Diluted and adjusted diluted EPS increased during the three and six months ended June 30, 2026 compared to the three and six months ended June 30, 2025, primarily due to growth in our net income and adjusted net income, as well as a decline in the number of weighted average diluted shares outstanding tied to share repurchase activity.

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 March 31, $ Change

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

2026 2025 2026 vs.

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Net income $ 105,788 $ 96,151 $ 9,637 10 %

Net realized investment losses (gains)

147 (24) 171 (713) %

Net realized investment losses 229 400 (171) (43) %

Adjusted income before tax $ 137,175 $ 124,001 $ 13,174 11 %

Income tax expense (benefit) on adjustments (1)

Income tax expense on adjustments (1)

48 84 (36) (43) %

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Adjusted diluted EPS $ 1.38 $ 1.22 $ 0.16 13 %

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

2026 2025 2026 vs.

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

Income before income taxes $ 261,889 $ 254,972 $ 6,917 3 %

Income tax expense 56,771 56,262 509 1

Net income $ 205,118 $ 198,710 $ 6,408 3 %

Net realized investment losses 376 376 — — %

Adjusted income before tax $ 262,265 $ 255,348 $ 6,917 3 %

Income tax expense on adjustments (1)

Adjusted net income $ 205,415 $ 199,007 $ 6,408 3 %

Weighted average diluted shares outstanding 77,010 79,557 (2,547) (3) %

Adjusted diluted EPS $ 2.67 $ 2.50 $ 0.17 7 %

(1) Marginal tax impact of non-GAAP adjustments is calculated based on our statutory U.S.

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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 March 31, 2026 December 31, 2025 $ Change

Consolidated balance sheets June 30, 2026 December 31, 2025 $ Change

(In Thousands)

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Total liabilities and shareholders' equity $ 3,997,375 $ 3,841,098 $ 156,277 4 %

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.

Total cash and investments increased at June 30, 2026 compared to December 31, 2025 with the addition of incremental cash provided by operating activities, partially offset by share repurchase activity during the six months ended June 30, 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 June 30, 2026 included $154.5 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 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.

Net deferred policy acquisition costs increased at June 30, 2026 compared to December 31, 2025 primarily due to the deferral of certain costs associated with the origination of new policies during the six months ended June 30, 2026, largely offset by the recognition of previously deferred policy acquisition costs during the period.

Net software and equipment decreased at June 30, 2026 compared to December 31, 2025 due to the amortization of previously capitalized amounts during the six months ended June 30, 2026, partially offset by the capitalization of certain software and equipment expenditures during the period.

Reinsurance recoverable increased at June 30, 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 six months ended June 30, 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 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.

Other assets increased at June 30, 2026 compared to December 31, 2025 primarily due to an increase in accrued investment income and prepaid expenses during the six months ended June 30, 2026.

Unearned premiums decreased at June 30, 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 six months ended June 30, 2026, partially offset by single premium policy originations during the period.

Accounts payable and accrued expenses decreased at June 30, 2026 compared to December 31, 2025 primarily due to the settlement of previously accrued compensation expenses during the six months ended June 30, 2026, partially offset by an increase in unsettled trade payables related to the purchase of certain investment securities, as well as an increase in taxes payable during the period.

Reserve for insurance claims and claim expenses increased at June 30, 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 six months ended June 30, 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 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.

Net deferred tax liability increased at June 30, 2026 compared to December 31, 2025 due to an increase in the claimed deductibility of our statutory contingency reserve during the six months ended June 30, 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 three months ended March 31, $ Change

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

2026 2025 2026 vs.

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$ 28,185 $ 29,705 $ (1,520)

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.

Net cash provided by operating activities increased during the six months ended June 30, 2026 compared to the six months ended June 30, 2025 primarily due to increases in our net premium receipts, growth in our investment income, a decline in income tax paid 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 six months ended June 30, 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.

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

As of June 30, 2026, NMIH had $154.5 million of cash, cash equivalents and investments.

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

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

NMIC paid a $101.0 million ordinary dividend to NMIH on June 3, 2026, representing its full ordinary dividend capacity payable under Wisconsin insurance laws for 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 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.

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 six months ended June 30, 2026, NMIH repurchased 1.5 million shares of common stock at a total cost of $59.1 million, excluding associated fees and applicable taxes.

As of June 30, 2026, NMIH had $166.8 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 March 31, 2026, the applicable commitment fee was 0.175%.

As of June 30, 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 March 31, 2026.

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

On June 3, 2026, NMIC paid a $101.0 million ordinary dividend to NMIH, representing its full ordinary dividend capacity payable under Wisconsin insurance laws for 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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The risk-based required asset amount under PMIERs is determined at an individual policy-level based on the risk characteristics of each insured loan.

Loans with higher risk factors, such as higher LTVs or lower borrower FICO scores, are assessed a higher charge.

Loans with higher risk factors, such as higher LTVs or lower borrower credit scores, are

assessed a higher charge.

Non-performing loans that have missed two or more payments are generally assessed a significantly higher charge than performing loans, regardless of the underlying borrower or loan risk profile;

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

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.

As of June 30, 2026, NMIC had a RTC ratio of 12.9:1 with $43.8 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 March 31, 2026, NMIC had $3.2 billion of cash and investments, including $37.1 million of cash and cash equivalents.

At June 30, 2026, NMIC had $3.2 billion of cash and investments, including $19.9 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 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.

During the twelve-month period ended June 30, 2026, NMIC generated $441 million of cash flow from operations and received an additional $630 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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Our investment portfolio is comprised entirely of fixed maturity instruments.

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%.

As of June 30, 2026, the fair value of our investment portfolio was $3.3 billion and we held an additional $72.1 million of cash and cash equivalents.

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

The yield on our investment portfolio is likely to change over time based on movements in interest rates, credit spreads, the duration or mix of our holdings and other factors.

The yield on our investment portfolio is

likely to change over time based on movements in interest rates, credit spreads, the duration or mix of our holdings and other factors.

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 March 31, 2026 December 31, 2025

Percentage of portfolio's fair value June 30, 2026 December 31, 2025

Corporate debt securities 66 % 64 %

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Investment portfolio ratings at fair value (1)

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Total 100 % 100 %

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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 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.

We did not recognize an allowance for credit loss for any security in the investment portfolio as of June 30, 2026 or December 31, 2025, and we did not record any provision for credit loss for investment securities during the three and six months ended June 30, 2026 or 2025.

As of June 30, 2026, the investment portfolio had gross unrealized losses of $99.1 million, of which $85.3 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 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.

We evaluated the securities in an unrealized loss position as of June 30, 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 June 30, 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 June 30, 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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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