0001547903false00015479032024-02-142024-02-14

 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934

Date of report (Date of earliest event reported): February 6, 2025

NMI Holdings, Inc.
(Exact Name of Registrant as Specified in Its Charter)
Delaware001-3617445-4914248
(State or Other Jurisdiction
 of Incorporation)		(Commission
 File Number)		(IRS Employer
 Identification No.)
2100 Powell Street, 12th Floor, Emeryville, CA
(Address of Principal Executive Offices)
94608
(Zip Code)
(855) 530-6642
(Registrant’s Telephone Number, Including Area Code)
(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐     Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐     Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐     Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐     Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Class A Common Stock, par value $0.01NMIHNasdaq
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
 



Item 2.02    Results of Operations and Financial Condition
On February 6, 2025, NMI Holdings, Inc. (the "Company") issued a press release announcing its financial results for the quarter and year ended December 31, 2024. A copy of the press release is furnished as Exhibit 99.1 to this report.
The information included in, or furnished with, this Item 2.02, including Exhibit 99.1, has been "furnished" and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, ("Exchange Act") nor shall it be deemed incorporated by reference in any filing or other document under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing or document.
Item 9.01.    Financial Statements and Exhibits
(d) Exhibits.
Exhibit No.    Description
104    Cover Page Interactive Data File (embedded within the Inline XBRL document)
1

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


NMI Holdings, Inc.
(Registrant)

                
Date: February 6, 2025By:/s/ William J. Leatherberry
William J. Leatherberry
EVP, Chief Administrative Officer & General Counsel

2
EXHIBIT 99.1
FOR IMMEDIATE RELEASE
NMI Holdings, Inc. Reports Fourth Quarter and Full Year 2024 Financial Results;
Announces Additional $250 Million Share Repurchase Authorization
EMERYVILLE, Calif., Feb. 6, 2025 -- NMI Holdings, Inc. (Nasdaq: NMIH) today reported net income of $86.2 million, or $1.07 per diluted share, for the fourth quarter ended December 31, 2024, which compares to $92.8 million, or $1.15 per diluted share, for the third quarter ended September 30, 2024 and $83.4 million, or $1.01 per diluted share, for the fourth quarter ended December 31, 2023. Adjusted net income for the quarter was $86.1 million, or $1.07 per diluted share, which compares to $92.8 million, or $1.15 per diluted share, for the third quarter ended September 30, 2024 and $83.4 million, or $1.01 per diluted share, for the fourth quarter ended December 31, 2023.
Net income for the full year ended December 31, 2024 was $360.1 million, or $4.43 per diluted share, which compares to $322.1 million, or $3.84 per diluted share, for the year ended December 31, 2023. Adjusted net income for the year was $365.6 million, or $4.50 per diluted share, which compares to $322.1 million, or $3.84 per diluted share, for the year ended December 31, 2023. The non-GAAP financial measures adjusted net income and adjusted diluted earnings per share are presented in this release to enhance the comparability of financial results between periods. See "Use of Non-GAAP Financial Measures" and our reconciliation of such measures to their most comparable GAAP measures, below.
The company also announced today that its Board of Directors has authorized an additional $250 million share repurchase plan effective through December 31, 2027.
Adam Pollitzer, President and Chief Executive Officer of National MI, said, “The fourth quarter capped another year of standout success for National MI. In 2024, we delivered strong operating performance, generated significant NIW volume and consistent growth in our insured portfolio, and achieved record financial results and a 17.4% return on equity. We have a strong customer franchise, a talented team driving us forward every day, an exceptionally high-quality book covered by a comprehensive set of risk transfer solutions, and a robust balance sheet supported by the significant earnings power of our platform. Looking forward, we're well-positioned to continue delivering differentiated growth, returns and value for our shareholders, and today's incremental $250 million share repurchase authorization will provide investors with further ability to access value as we continue to perform, grow our earnings and compound book value.”
Selected fourth quarter 2024 highlights include:

•Primary insurance-in-force at quarter end was $210.2 billion, compared to $207.5 billion at the end of the third quarter and $197.0 billion at the end of the fourth quarter of 2023.

•Net premiums earned were $143.5 million, compared to $143.3 million in the third quarter and $132.9 million in the fourth quarter of 2023.

•Total revenue was $166.5 million, compared to $166.1 million in the third quarter and $151.4 million in the fourth quarter of 2023.

•Insurance claims and claim expenses were $17.3 million, compared to $10.3 million in the third quarter and $8.2 million in the fourth quarter of 2023. Loss ratio was 12.0%, compared to 7.2% in the third quarter and 6.2% in the fourth quarter of 2023.

•Underwriting and operating expenses were $31.1 million, compared to $29.2 million in the third quarter and $29.7 million in the fourth quarter of 2023. Expense ratio was 21.7%, compared to 20.3% in the third quarter and 22.4% in the fourth quarter of 2023.

•Net income was $86.2 million, compared to $92.8 million in the third quarter and $83.4 million in the fourth quarter of 2023. Diluted EPS was $1.07, compared to $1.15 in the third quarter and $1.01 in the fourth quarter of 2023.

•Shareholders’ equity was $2.2 billion at quarter end and book value per share was $28.21. Book value per share excluding the impact of net unrealized gains and losses in the investment portfolio was $29.80, up 4% compared to $28.71 in the third quarter and 17% compared to $25.54 in the fourth quarter of 2023.

1
EXHIBIT 99.1
•Annualized return on equity for the quarter was 15.6%, compared to 17.5% in the third quarter and 18.0% in the fourth quarter of 2023.

•At quarter-end, total PMIERs available assets were $3.1 billion and net risk-based required assets were $1.8 billion.
Quarter EndedQuarter EndedQuarter Ended
Change (1)
Change (1)
12/31/20249/30/202412/31/2023Q/QY/Y
INSURANCE METRICS ($billions)
Primary Insurance-in-Force $210.2 $207.5 $197.0 1 %7 %
New Insurance Written - NIW 11.9 12.2 8.9 (2)%34 %
FINANCIAL HIGHLIGHTS (Unaudited, $millions, except per share amounts)
Net Premiums Earned$143.5 $143.3 $132.9 0 %8 %
Net Investment Income
22.7 22.5 18.2 1 %25 %
Insurance Claims and Claim Expenses
17.3 10.3 8.2 67 %110 %
Underwriting and Operating Expenses31.1 29.2 29.7 7 %5 %
Net Income 86.2 92.8 83.4 (7)%3 %
Diluted EPS
$1.07 $1.15 $1.01 (7)%6 %
Book Value per Share (excluding net unrealized gains and losses) (2)
$29.80 $28.71 $25.54 4 %17 %
Loss Ratio12.0 %7.2 %6.2 %
Expense Ratio21.7 %20.3 %22.4 %

(1)    Percentages may not be replicated based on the rounded figures presented in the table.
(2)    Book value per share (excluding net unrealized gains and losses) is defined as total shareholders' equity, excluding the after-tax effects of unrealized gains and losses on our investment portfolio, divided by shares outstanding.

Conference Call and Webcast Details

The company will hold a conference call, which will be webcast live today, February 6, 2025, at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time. The webcast will be available on the company's website, www.nationalmi.com, in the “Investor Relations” section. The conference call can also be accessed by dialing (844) 481-2708 in the U.S., or (412) 317-0664 internationally, by referencing NMI Holdings, Inc.

About NMI Holdings, Inc.

NMI Holdings, Inc. (NASDAQ: NMIH), is the parent company of National Mortgage Insurance Corporation (National MI), a U.S.-based, private mortgage insurance company enabling low down payment borrowers to realize home ownership while protecting lenders and investors against losses related to a borrower's default. To learn more, please visit www.nationalmi.com.

Cautionary Note Regarding Forward-Looking Statements

Certain statements contained in this press release or any other written or oral statements made by or on behalf of the Company in connection therewith may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995 (the “PSLRA”). The PSLRA provides a “safe harbor” for any forward-looking statements. All statements other than statements of historical fact included in or incorporated by reference in this release are forward-looking statements, including any statements about our expectations, outlook, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance. These statements are often, but not always, made through the use of words or phrases such as “anticipate,” “believe,” “can,” “could,” “may,” “predict,” “assume,” “potential,” “should,” “will,” “estimate,” “perceive,” “plan,” “project,” “continuing,” “ongoing,” “expect,” “intend” and similar words or phrases. All forward-looking statements are only predictions and involve estimates, known and unknown risks, assumptions and uncertainties that may turn out to be inaccurate and could cause actual results to differ materially from those expressed in them. Many risks and uncertainties are inherent in our industry and markets. Others are more specific to our business and operations. Important factors that could cause actual events or results to differ materially from those indicated in such statements include, but are not limited to: changes in general economic, market and political conditions and policies (including changes in interest rates and inflation) and investment
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EXHIBIT 99.1
results or other conditions that affect the U.S. housing market or the U.S. markets for home mortgages, mortgage insurance, reinsurance and credit risk transfer markets, including the risk related to geopolitical instability, inflation, an economic downturn (including any decline in home prices) or recession, and their impacts on our business, operations and personnel; changes in the charters, business practices, policies, pricing or priorities of Fannie Mae and Freddie Mac (collectively, the GSEs), which may include decisions that have the impact of decreasing or discontinuing the use of mortgage insurance as credit enhancement generally, or with first time homebuyers or on very high loan-to-value mortgages; or changes in the direction of housing policy objectives of the Federal Housing Finance Agency (“FHFA”), such as the FHFA’s priority to increase the accessibility to and affordability of homeownership for low-and-moderate income borrowers and underrepresented communities; our ability to remain an eligible mortgage insurer under the private mortgage insurer eligibility requirements (“PMIERs”) and other requirements imposed by the GSEs, which they may change at any time; retention of our existing certificates of authority in each state and the District of Columbia (“D.C.”) and our ability to remain a mortgage insurer in good standing in each state and D.C.; our future profitability, liquidity and capital resources; actions of existing competitors, including other private mortgage insurers and government mortgage insurers such as the Federal Housing Administration, the U.S. Department of Agriculture’s Rural Housing Service and the U.S. Department of Veterans Affairs, and potential market entry by new competitors or consolidation of existing competitors; adoption of new or changes to existing laws, rules and regulations that impact our business or financial condition directly or the mortgage insurance industry generally or their enforcement and implementation by regulators, including the implementation of the final rules defining and/or concerning “Qualified Mortgage” and “Qualified Residential Mortgage”; U.S. federal tax reform and other potential changes in tax law and their impact on us and our operations; legislative or regulatory changes to the GSEs’ role in the secondary mortgage market or other changes that could affect the residential mortgage industry generally or mortgage insurance industry in particular; potential legal and regulatory claims, investigations, actions, audits or inquiries that could result in adverse judgements, settlements, fines or other reliefs that could require significant expenditures or have other negative effects on our business; our ability to successfully execute and implement our capital plans, including our ability to access the equity, credit and reinsurance markets and to enter into, and receive approval of, reinsurance arrangements on terms and conditions that are acceptable to us, the GSEs and our regulators; lenders, the GSEs, or other market participants seeking alternatives to private mortgage insurance; our ability to implement our business strategy, including our ability to write mortgage insurance on high quality low down payment residential mortgage loans, implement successfully and on a timely basis, complex infrastructure, systems, procedures, and internal controls to support our business and regulatory and reporting requirements of the insurance industry; our ability to attract and retain a diverse customer base, including the largest mortgage originators; failure of risk management or pricing or investment strategies; decrease in the length of time our insurance policies are in force; emergence of unexpected claim and coverage issues, including claims exceeding our reserves or amounts we had expected to experience; potential adverse impacts arising from natural disasters including, with respect to affected areas, a decline in new business, adverse effects on home prices, and an increase in notices of default on insured mortgages; climate risk and efforts to manage or regulate climate risk by government agencies could affect our business and operations; potential adverse impacts arising from the occurrence of any man-made disasters or public health emergencies, including pandemics; the inability of our counter-parties, including third party reinsurers, to meet their obligations to us; failure to maintain, improve and continue to develop necessary information technology systems or the failure of technology providers to perform; effectiveness and security of our information technology systems and digital products and services, including the risks these systems, products or services may fail to operate as expected or planned, or expose us to cybersecurity or third-party risks (including the exposure of our confidential customer and other information); and ability to recruit, train and retain key personnel. These risks and uncertainties also include, but are not limited to, those set forth under the heading “Risk Factors” detailed in Item 1A of Part I of our Annual Report on Form 10-K for the year ended December 31, 2023, as subsequently updated through other reports we file with the SEC. All subsequent written and oral forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. We caution you not to place undue reliance on any forward-looking statement, which speaks only as of the date on which it is made, and we undertake no obligation to publicly update or revise any forward-looking statement to reflect new information, future events or circumstances that occur after the date on which the statement is made or to reflect the occurrence of unanticipated events except as required by law.

Use of Non-GAAP Financial Measures

We believe the use of the non-GAAP measures of adjusted income before tax, adjusted net income, adjusted diluted EPS, adjusted return-on-equity, adjusted expense ratio, adjusted combined ratio and book value per share (excluding net unrealized gains and losses) enhances the comparability of our fundamental financial performance between periods, and provides relevant information to investors. These non-GAAP financial measures align with the way the company's business performance is evaluated by management. These measures are not prepared in accordance with GAAP and should not be viewed as alternatives to GAAP measures of performance. These measures have been presented to increase transparency and enhance the comparability of our fundamental operating trends across periods. Other companies may calculate these measures differently; their measures may not be comparable to those we calculate and present.
Adjusted income before tax is defined as GAAP income before tax, excluding the pre-tax effects of net realized gains or losses from our investment portfolio, periodic costs incurred in connection with capital markets transactions, and other infrequent, unusual or non-operating items in the periods in which such items are incurred.
3
EXHIBIT 99.1

Adjusted net income is defined as GAAP net income, excluding the after-tax effects of net realized gains or losses from our investment portfolio, periodic costs incurred in connection with capital markets transactions, and other infrequent, unusual or non-operating items in the periods in which such items are incurred. Adjustments to components of pre-tax income are tax effected using the applicable federal statutory tax rate for the respective periods.

Adjusted diluted EPS is defined as adjusted net income divided by adjusted weighted average diluted shares outstanding. Adjusted weighted average diluted shares outstanding is defined as weighted average diluted shares outstanding, adjusted for changes in the dilutive effect of non-vested shares that would otherwise have occurred had GAAP net income been calculated in accordance with adjusted net income. There will be no adjustment to weighted average diluted shares outstanding in the periods that non-vested shares are anti-dilutive under GAAP.
Adjusted return on equity is calculated by dividing adjusted net income on an annualized basis by the average shareholders' equity for the period.
Adjusted expense ratio is defined as GAAP underwriting and operating expenses, excluding the pre-tax effects of periodic costs incurred in connection with capital markets transactions, divided by net premiums earned.
Adjusted combined ratio is defined as the total of GAAP underwriting and operating expenses, excluding the pre-tax effects of periodic costs incurred in connection with capital markets transactions and insurance claims and claims expenses, divided by net premiums earned.
Book value per share (excluding net unrealized gains and losses) is defined as total shareholders' equity, excluding the after-tax effects of unrealized gains and losses on investments, divided by shares outstanding.
Although adjusted income before tax, adjusted net income, adjusted diluted EPS, adjusted return-on-equity, adjusted expense ratio, adjusted combined ratio and book value per share (excluding net unrealized gains and losses) exclude certain items that have occurred in the past and are expected to occur in the future, the excluded items: (1) are not viewed as part of the operating performance of our primary activities; or (2) are impacted by market, economic or regulatory factors and are not necessarily indicative of operating trends, or both. These adjustments, and the reasons for their treatment, are described below.
(1)    Net realized investment gains and losses. The recognition of the net realized investment gains or losses can vary significantly across periods as the timing is highly discretionary and is influenced by factors such as market opportunities, tax and capital profile, and overall market cycles that do not reflect our current period operating results.
(2)    Capital markets transaction costs. Capital markets transaction costs result from activities that are undertaken to improve our debt profile or enhance our capital position through activities such as debt refinancing and capital markets reinsurance transactions that may vary in their size and timing due to factors such as market opportunities, tax and capital profile, and overall market cycles.
(3)    Other infrequent, unusual or non-operating items. Items that are the result of unforeseen or uncommon events, and are not expected to recur with frequency in the future. 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. 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.
(4) Net unrealized gains and losses on investments. The recognition of the net unrealized gains or losses on investment can vary significantly across periods and is influenced by factors such as interest rate movement, overall market and economic conditions, and tax and capital profiles. These valuation adjustments may not necessarily result in economic gains or losses and not reflective of ongoing operations.

Investor Contact
Gregory Epps
Manager, Investor Relations and Treasury
Investor.relations@nationalmi.com
4
EXHIBIT 99.1
Consolidated statements of operations and comprehensive income (unaudited)For the three months ended December 31,For the year ended December 31,
2024202320242023
(In Thousands, except for per share data)
Revenues
Net premiums earned$143,520 $132,940 $564,688 $510,768 
Net investment income22,718 18,247 85,316 67,512 
Net realized investment gains (losses)
33 — 23 (33)
Other revenues233 193 944 756 
Total revenues166,504 151,380 650,971 579,003 
Expenses
Insurance claims and claim expenses17,253 8,232 31,544 22,618 
Underwriting and operating expenses31,092 29,716 118,397 110,699 
Service expenses184 185 723 771 
Interest expense7,102 8,066 36,896 32,212 
Total expenses55,631 46,199 187,560 166,300 
Income before income taxes110,873 105,181 463,411 412,703 
Income tax expense 24,706 21,768 103,305 90,593 
Net income $86,167 $83,413 $360,106 $322,110 
Earnings per share
Basic$1.09 $1.03 $4.51 $3.91 
Diluted$1.07 $1.01 $4.43 $3.84 
Weighted average common shares outstanding
Basic78,997 81,005 79,844 82,407 
Diluted80,623 82,685 81,273 83,854 
Loss ratio (1)
12.0 %6.2 %5.6 %4.4 %
Expense ratio (2)
21.7 %22.4 %21.0 %21.7 %
Combined ratio (3)
33.7 %28.5 %26.6 %26.1 %
Net income $86,167 $83,413 $360,106 $322,110 
Other comprehensive (loss) income, net of tax:
Unrealized (losses) gains in accumulated other comprehensive loss, net of tax (benefit) expense of $(11,374) and $19,580 for the three months ended December 31, 2024 and 2023, and $3,921 and $17,113 for the years ended December 31, 2024 and 2023, respectively
(42,787)73,660 15,113 64,380 
Reclassification adjustment for realized (gains) losses included in net income, net of tax expense (benefit) of $7 and $0 for the three months ended December 31, 2024 and 2023, and $0 and $(7) for the years ended December 31, 2024, and 2023, respectively
(26)— — 26 
Other comprehensive (loss) income, net of tax
(42,813)73,660 15,113 64,406 
Comprehensive income $43,354 $157,073 $375,219 $386,516 
(1)    Loss ratio is calculated by dividing insurance claims and claim expenses by net premiums earned.
(2)    Expense ratio is calculated by dividing underwriting and operating expenses by net premiums earned.
(3)    Combined ratio may not foot due to rounding.
5
EXHIBIT 99.1
Consolidated balance sheets (unaudited)December 31, 2024December 31, 2023
Assets(In Thousands, except for share data)
Fixed maturities, available-for-sale, at fair value (amortized cost of $2,876,343 and $2,542,862 as of December 31, 2024 and December 31, 2023, respectively)$2,723,541 $2,371,021 
Cash and cash equivalents (including restricted cash of $90 and $1,338 as of December 31, 2024 and December 31, 2023, respectively)54,308 96,689 
Premiums receivable, net82,804 76,456 
Accrued investment income22,386 19,785 
Deferred policy acquisition costs, net64,327 62,905 
Software and equipment, net25,681 30,252 
Intangible assets and goodwill3,634 3,634 
Reinsurance recoverable 32,260 27,514 
Prepaid federal income taxes322,175 235,286 
Other assets18,857 16,965 
Total assets$3,349,973 $2,940,507 
Liabilities
Debt$415,146 $397,595 
Unearned premiums65,217 92,295 
Accounts payable and accrued expenses103,164 86,189 
Reserve for insurance claims and claim expenses152,071 123,974 
Deferred tax liability, net386,192 301,573 
Other liabilities
10,751 12,877 
Total liabilities1,132,541 1,014,503 
Shareholders' equity
Common stock - $0.01 par value; 87,902,626 shares issued and 78,600,726 shares outstanding as of December 31, 2024 and 87,334,138 shares issued and 80,881,280 shares outstanding as of December 31, 2023 (250,000,000 shares authorized)
879 873 
Additional paid-in capital1,004,692 990,816 
Treasury stock, at cost: 9,301,900 and 6,452,858 common shares as of December 31, 2024 and December 31, 2023, respectively(246,594)(148,921)
Accumulated other comprehensive loss, net of tax(124,804)(139,917)
Retained earnings 1,583,259 1,223,153 
Total shareholders' equity2,217,432 1,926,004 
Total liabilities and shareholders' equity$3,349,973 $2,940,507 









6
EXHIBIT 99.1
Non-GAAP Financial Measure Reconciliations (unaudited)
As of and for the three months ended
For the year ended December 31,
12/31/20249/30/202412/31/202320242023
 As Reported(In Thousands, except for per share data)
Revenues
Net premiums earned$143,520 $143,343 $132,940 $564,688 $510,768 
Net investment income22,718 22,474 18,247 85,316 67,512 
Net realized investment gains (losses)
33 (10)— 23 (33)
Other revenues233 285 193 944 756 
Total revenues166,504 166,092 151,380 650,971 579,003 
Expenses
Insurance claims and claim expenses17,253 10,321 8,232 31,544 22,618 
Underwriting and operating expenses31,092 29,160 29,716 118,397 110,699 
Service expenses184 208 185 723 771 
Interest expense7,102 7,076 8,066 36,896 32,212 
Total expenses55,631 46,765 46,199 187,560 166,300 
Income before income taxes110,873 119,327 105,181 463,411 412,703 
Income tax expense 24,706 26,517 21,768 103,305 90,593 
Net income $86,167 $92,810 $83,413 $360,106 $322,110 
Adjustments:
Net realized investment (gains) losses
(33)10 — (23)33 
Capital markets transaction costs— — — 6,966 — 
Adjusted income before taxes110,840 119,337 105,181 470,354 412,736 
Income tax (benefit) expense on adjustments (1)
(7)2 — 1,458 7 
Adjusted net income$86,141 $92,818 $83,413 $365,591 $322,136 
Weighted average diluted shares outstanding 80,623 81,045 82,685 81,27383,854 
Diluted EPS $1.07 $1.15 $1.01 $4.43 $3.84 
Adjusted diluted EPS $1.07 $1.15 $1.01 $4.50 $3.84 
Return on equity
15.6 %17.5 %18.0 %17.4 %18.2 %
Adjusted return on equity
15.6 %17.5 %18.0 %17.6 %18.2 %
Expense ratio (2)
21.7 %20.3 %22.4 %21.0 %21.7 %
Adjusted expense ratio (3)
21.7 %20.3 %22.4 %21.0 %21.7 %
Combined ratio (4)
33.7 %27.5 %28.5 %26.6 %26.1 %
Adjusted combined ratio (5)
33.7 %27.5 %28.5 %26.6 %26.1 %
Book value per share (6)
$28.21 $27.67 $23.81 
Book value per share (excluding net unrealized gains and losses) (7)
$29.80 $28.71 $25.54 
(1)    Marginal tax impact of non-GAAP adjustments is calculated based on our statutory U.S. federal corporate income tax rate of 21%, except for those items that are not eligible for an income tax deduction.
(2)    Expense ratio is calculated by dividing underwriting and operating expenses by net premiums earned.
7
EXHIBIT 99.1
(3)    Adjusted expense ratio is calculated by dividing adjusted underwriting and operating expense (underwriting and operating expenses excluding costs related to capital markets reinsurance transactions) by net premiums earned.
(4)    Combined ratio is calculated by dividing the total of underwriting and operating expenses and insurance claims and claim expenses by net premiums earned.
(5)    Adjusted combined ratio is calculated by dividing the total of adjusted underwriting and operating expenses (underwriting and operating expenses excluding costs related to capital market reinsurance transaction) and insurance claims and claim expenses by net premiums earned.
(6)    Book value per share is calculated by dividing total shareholders’ equity by shares outstanding.
(7)    Book value per share (excluding net unrealized gains and losses) is defined as total shareholders’ equity, excluding the after-tax effects of unrealized gains and losses on our investment portfolio, divided by shares outstanding.


Historical Quarterly Data20242023
December 31September 30June 30March 31December 31
(In Thousands, except for per share data)
Revenues
Net premiums earned$143,520 $143,343 $141,168 $136,657 $132,940 
Net investment income22,718 22,474 20,688 19,436 18,247 
Net realized investment gains (losses)
33 (10)— — — 
Other revenues233 285 266 160 193 
Total revenues166,504 166,092 162,122 156,253 151,380 
Expenses
Insurance claims and claim expenses17,253 10,321 276 3,694 8,232 
Underwriting and operating expenses31,092 29,160 28,330 29,815 29,716 
Service expenses184 208 194 137 185 
Interest expense7,102 7,076 14,678 8,040 8,066 
Total expenses55,631 46,765 43,478 41,686 46,199 
Income before income taxes110,873 119,327 118,644 114,567 105,181 
Income tax expense 24,706 26,517 26,565 25,517 21,768 
Net income $86,167 $92,810 $92,079 $89,050 $83,413 
Earnings per share
Basic$1.09 $1.17 $1.15 $1.10 $1.03 
Diluted$1.07 $1.15 $1.13 $1.08 $1.01 
Weighted average common shares outstanding
Basic78,997 79,549 80,117 80,726 81,005 
Diluted80,623 81,045 81,300 82,099 82,685 
Other data
Loss ratio (1)
12.0 %7.2 %0.2 %2.7 %6.2 %
Expense ratio (2)
21.7 %20.3 %20.1 %21.8 %22.4 %
Combined ratio (3)
33.7 %27.5 %20.3 %24.5 %28.5 %
(1)    Loss ratio is calculated by dividing insurance claims and claim expenses by net premiums earned.
(2)    Expense ratio is calculated by dividing underwriting and operating expenses by net premiums earned.
(3)    Combined ratio may not foot due to rounding.



8
EXHIBIT 99.1
Portfolio Statistics
The table below highlights trends in our primary portfolio as of the date and for the periods indicated.
Primary portfolio trendsAs of and for the three months ended
December 31, 2024September 30, 2024June 30, 2024March 31, 2024December 31, 2023
($ Values In Millions, except as noted below)
New insurance written (NIW)
$11,925 $12,218 $12,503 $9,398 $8,927 
New risk written3,134 3,245 3,335 2,486 2,354 
Insurance-in-force (IIF) (1)
210,183 207,538 203,501 199,373 197,029 
Risk-in-force (RIF) (1)
56,113 55,253 53,956 52,610 51,796 
Policies in force (count) (1)
659,567 654,374 645,276 635,662 629,690 
Average loan size ($ value in thousands) (1)
$319 $317 $315 $314 $313 
Coverage percentage (2)
26.7 %26.6 %26.5 %26.4 %26.3 %
Loans in default (count) (1)
6,642 5,712 4,904 5,109 5,099 
Default rate (1)
1.01 %0.87 %0.76 %0.80 %0.81 %
Risk-in-force on defaulted loans (1)
$545 $468 $401 $414 $408 
Average net premium yield (3)
0.27 %0.28 %0.28 %0.28 %0.27 %
Earnings from cancellations$0.8 $0.8 $1.0 $0.6 $1.0 
Annual persistency (4)
84.6 %85.5 %85.4 %85.8 %86.1 %
Quarterly run-off (5)
4.5 %4.0 %4.2 %3.6 %3.4 %
(1)    Reported as of the end of the period.
(2)    Calculated as end of period RIF divided by end of period IIF.
(3)    Calculated as net premiums earned, divided by average primary IIF for the period, annualized.
(4)    Defined as the percentage of IIF that remains on our books after a given twelve-month period.
(5)    Defined as the percentage of IIF that is no longer on our books after a given three-month period.
NIW, IIF and Premiums
The tables below present primary NIW and primary IIF, as of the dates and for the periods indicated.
Primary NIWFor the three months ended
December 31, 2024September 30, 2024June 30, 2024March 31, 2024December 31, 2023
(In Millions)
Monthly$11,688 $11,978 $12,288 $9,175 $8,614 
Single237 240 215 223 313 
Total$11,925 $12,218 $12,503 $9,398 $8,927 
9
EXHIBIT 99.1
Primary IIFAs of
December 31, 2024September 30, 2024June 30, 2024March 31, 2024December 31, 2023
(In Millions)
Monthly$192,228 $189,241 $184,862 $180,343 $177,764 
Single17,955 18,297 18,639 19,030 19,265 
Total$210,183 $207,538 $203,501 $199,373 $197,029 

    The following table presents the amounts related to the company's quota-share reinsurance transactions (the 2016 QSR Transaction, 2018 QSR Transaction, 2020 QSR Transaction, 2021 QSR Transaction, 2022 QSR Transaction, 2022 Seasoned QSR Transaction, 2023 QSR Transaction, and 2024 QSR Transaction and collectively, the QSR Transactions), insurance-linked note transactions (the 2021-1 ILN Transaction, and 2021-2 ILN Transaction and collectively, the ILN Transactions), and traditional reinsurance transactions (the 2022-1 XOL Transaction, 2022-2 XOL Transaction, 2022-3 XOL Transaction, 2023-1 XOL Transaction, 2023-2 XOL Transaction, and 2024 XOL Transaction and collectively, the XOL Transactions) for the periods indicated.
For the three months ended
December 31, 2024September 30, 2024June 30, 2024March 31, 2024December 31, 2023
(In Thousands)
The QSR Transactions
Ceded risk-in-force$13,024,200 $12,968,039 $12,815,434 $12,669,207 $12,626,541 
Ceded premiums earned(41,596)(41,761)(41,555)(41,269)(41,218)
Ceded claims and claim expenses (benefits)
4,075 2,449 (138)659 2,447 
Ceding commission earned9,997 10,152 10,222 10,292 9,561 
Profit commission20,149 21,883 24,351 23,407 22,057 
The ILN Transactions (1)
Ceded premiums$(4,217)$(4,302)$(5,858)$(5,976)$(6,305)
The XOL Transactions
Ceded premiums$(9,969)$(9,760)$(9,403)$(9,223)$(8,302)
(1)    Effective July 25, 2024 and December 27, 2024, NMIC exercised its optional termination rights to terminate and commute its previously outstanding excess-of-loss reinsurance agreements with Oaktown Re III Ltd. and Oaktown Re V Ltd., respectively. In connection with the terminations and commutations, the insurance-linked notes issued by Oaktown Re III Ltd. and Oaktown Re V Ltd. were redeemed in full with a distribution of remaining collateral assets.
10
EXHIBIT 99.1
    The tables below present our total primary NIW by FICO, loan-to-value (LTV) ratio, and purchase/refinance mix for the periods indicated.
Primary NIW by FICOFor the three months endedFor the year ended
December 31, 2024September 30, 2024December 31, 2023December 31, 2024December 31, 2023
(In Millions)
>= 760$6,508 $6,615 $4,564 $24,808 $22,995 
740-7592,090 2,057 1,542 8,098 6,769 
720-7391,621 1,529 1,280 5,907 5,484 
700-719890 1,040 816 3,794 2,816 
680-699575 652 568 2,392 1,946 
<=679241 325 157 1,045 463 
Total$11,925 $12,218 $8,927 $46,044 $40,473 
Weighted average FICO758 757 755 757 760 
Primary NIW by LTVFor the three months ended For the year ended
December 31, 2024September 30, 2024December 31, 2023December 31, 2024December 31, 2023
(In Millions)
95.01% and above$1,510 $1,568 $990 $5,908 $3,713 
90.01% to 95.00%5,370 5,720 4,107 21,149 18,929 
85.01% to 90.00%3,740 3,584 2,947 13,994 13,597 
85.00% and below1,305 1,346 883 4,993 4,234 
Total$11,925 $12,218 $8,927 $46,044 $40,473 
Weighted average LTV92.1 %92.3 %92.2 %92.3 %92.1 %
Primary NIW by purchase/refinance mixFor the three months endedFor the year ended
December 31, 2024September 30, 2024December 31, 2023December 31, 2024December 31, 2023
(In Millions)
Purchase$10,799 $11,708 $8,759 $43,921 $39,629 
Refinance1,126 510 168 2,123 844 
Total$11,925 $12,218 $8,927 $46,044 $40,473 
The table below presents a summary of our primary IIF and RIF by book year as of December 31, 2024.
Primary IIF and RIFAs of December 31, 2024
IIFRIF
Book Year
(In Millions)
2024$43,560 $11,552 
202334,284 9,047 
202247,598 12,703 
202150,699 13,634 
202021,145 5,795 
2019 and before 12,897 3,382 
Total$210,183 $56,113 
11
EXHIBIT 99.1
    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 FICOAs of
December 31, 2024September 30, 2024December 31, 2023
(In Millions)
>= 760$105,315 $103,764 $98,034 
740-75937,321 36,830 34,829 
720-73929,343 28,930 27,755 
700-71919,766 19,654 18,734 
680-69913,374 13,326 12,867 
<=6795,064 5,034 4,810 
Total$210,183 $207,538 $197,029 
Primary RIF by FICOAs of
December 31, 2024September 30, 2024December 31, 2023
(In Millions)
>= 760$27,883 $27,396 $25,523 
740-75910,006 9,850 9,207 
720-7397,926 7,788 7,387 
700-7195,383 5,337 5,021 
680-6993,615 3,590 3,433 
<=6791,300 1,292 1,225 
Total$56,113 $55,253 $51,796 
Primary IIF by LTVAs of
December 31, 2024September 30, 2024December 31, 2023
(In Millions)
95.01% and above$23,555 $22,644 $19,609 
90.01% to 95.00%103,472 101,872 95,415 
85.01% to 90.00%64,290 63,568 60,348 
85.00% and below18,866 19,454 21,657 
Total$210,183 $207,538 $197,029 
Primary RIF by LTVAs of
December 31, 2024September 30, 2024December 31, 2023
(In Millions)
95.01% and above$7,345 $7,054 $6,062 
90.01% to 95.00%30,563 30,100 28,184 
85.01% to 90.00%15,956 15,777 14,961 
85.00% and below2,249 2,322 2,589 
Total$56,113 $55,253 $51,796 
Primary RIF by Loan TypeAs of
December 31, 2024September 30, 2024December 31, 2023
Fixed98 %98 %98 %
Adjustable rate mortgages:
Less than five years— — — 
Five years and longer2 2 2 
Total100 %100 %100 %
12
EXHIBIT 99.1
The table below presents a summary of the change in total primary IIF during the periods indicated.
Primary IIF
As of and for the three months ended
December 31, 2024September 30, 2024December 31, 2023
(In Millions)
IIF, beginning of period$207,538 $203,501 $194,781 
NIW11,925 12,218 8,927 
Cancellations, principal repayments and other reductions(9,280)(8,181)(6,679)
IIF, end of period$210,183 $207,538 $197,029 
Geographic Dispersion
The following table shows the distribution by state of our primary RIF as of the periods indicated:
Top 10 primary RIF by stateAs of
December 31, 2024September 30, 2024December 31, 2023
California10.1 %10.1 %10.2 %
Texas8.6 8.7 8.7 
Florida7.3 7.4 7.6 
Georgia4.1 4.1 4.1 
Washington3.9 3.9 4.0 
Illinois3.8 3.9 4.0 
Virginia3.7 3.8 3.9 
Pennsylvania3.4 3.4 3.4 
Ohio3.3 3.2 3.0 
North Carolina3.2 3.1 3.0 
Total51.4 %51.6 %51.9 %

13
EXHIBIT 99.1
The table below presents selected primary portfolio statistics, by book year, as of December 31, 2024.
As of December 31, 2024
Book yearOriginal Insurance WrittenRemaining Insurance in Force% Remaining of Original InsurancePolicies Ever in ForceNumber of Policies in ForceNumber of Loans in Default# of Claims Paid
Incurred Loss Ratio (Inception to Date) (1)
Cumulative Default Rate (2)
Current Default Rate (3)
($ Values in Millions)
2015 and prior$16,035 $885 6 %67,989 4,903 99 208 2.7 %0.5 %2.0 %
201621,187 1,498 7 %83,626 8,076 158 187 1.7 %0.4 %2.0 %
201721,582 1,867 9 %85,897 10,577 267 184 1.9 %0.5 %2.5 %
201827,295 2,433 9 %104,043 13,152 420 184 2.5 %0.6 %3.2 %
201945,141 6,214 14 %148,423 27,442 511 97 2.0 %0.4 %1.9 %
202062,702 21,145 34 %186,174 73,926 598 51 1.4 %0.3 %0.8 %
202185,574 50,699 59 %257,972 167,892 1,679 74 3.5 %0.7 %1.0 %
202258,734 47,598 81 %163,281 138,915 2,002 68 17.9 %1.3 %1.4 %
202340,473 34,284 85 %111,994 98,711 725 10 14.4 %0.7 %0.7 %
202446,044 43,560 95 %120,747 115,973 183 — 6.2 %

0.2 %0.2 %
Total$424,767 $210,183 1,330,146 659,567 6,642 1,063 
(1)    Calculated as total claims incurred (paid and reserved) divided by cumulative premiums earned, net of reinsurance.
(2)    Calculated as the sum of the number of claims paid ever to date and number of loans in default divided by policies ever in force.
(3)    Calculated as the number of loans in default divided by number of policies in force.
14
EXHIBIT 99.1
    The following table provides a reconciliation of the beginning and ending reserve balances for primary insurance claims and claim expenses:
For the three months ended December 31,For the year ended December 31,
2024202320242023
(In Thousands)
Beginning balance$135,520 $116,078 $123,974 $99,836 
Less reinsurance recoverables (1)
(29,214)(25,956)(27,514)(21,587)
Beginning balance, net of reinsurance recoverables106,306 90,122 96,460 78,249 
Add claims incurred:
Claims and claim expenses incurred:
Current year (2)
21,674 17,298 93,206 78,285 
Prior years (3)
(4,421)(9,789)(61,662)(56,390)
Total claims and claim expenses incurred (4)
17,253 7,509 31,544 21,895 
Less claims paid:
Claims and claim expenses paid:
Current year (2)
458 481 638 600 
Prior years (3)
3,290 1,181 7,555 3,575 
Reinsurance terminations
— (491)— (491)
Total claims and claim expenses paid3,748 1,171 8,193 3,684 
Reserve at end of period, net of reinsurance recoverables119,811 96,460 119,811 96,460 
Add reinsurance recoverables (1)
32,260 27,514 32,260 27,514 
Ending balance$152,071 $123,974 $152,071 $123,974 
(1)    Related to ceded losses recoverable under the QSR Transactions
(2)    Related to insured loans with their most recent defaults occurring in the current year. 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 $83.5 million attributed to net case reserves and $8.1 million attributed to net IBNR reserves for the year ended December 31, 2024, $70.6 million attributed to net case reserves and $6.3 million attributed to net IBNR reserves for the year ended December 31, 2023.
(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 $54.1 million attributed to net case reserves and $6.3 million attributed to net IBNR reserves for the year ended December 31, 2024, $50.9 million attributed to net case reserves and $4.5 million attributed to net IBNR reserves for the year ended December 31, 2023.
(4)    Excludes a $0.7 million termination fee for the year ended December 31, 2023 incurred in connection with the amendment of the 2020 QSR Transaction.


    The following table provides a reconciliation of the beginning and ending count of loans in default:
For the three months ended December 31,For the year ended December 31,
2024202320242023
Beginning default inventory5,712 4,594 5,099 4,449 
Plus: new defaults2,742 2,039 8,757 6,758 
Less: cures(1,684)(1,458)(6,899)(5,892)
Less: claims paid(108)(70)(276)(199)
Less: rescission and claims denied(20)(6)(39)(17)
Ending default inventory6,642 5,099 6,642 5,099 

15
EXHIBIT 99.1
    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 December 31, For the year ended December 31,
2024202320242023
($ Values In Thousands)
Number of claims paid (1)
108 70 276 199 
Total amount paid for claims$4,777 $2,060 $10,491 $5,192 
Average amount paid per claim
$44 $29 $38 $26 
Severity (2)
65 %64%61 %55 %
(1)    Count includes 32 and 88 claims settled without payment during the three months and year ended December 31, 2024, respectively, and 23 and 70 claims settled without payment during the three months and year ended December 31, 2023, 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.
    The following table shows our average reserve per default, before giving effect to reserves ceded under the QSR Transactions, as of the dates indicated:
Average reserve per default:
As of
December 31, 2024December 31, 2023
(In Thousands)
Case (1)
$21.0 $22.4 
IBNR (1) (2)
1.9 1.9 
Total$22.9 $24.3 
(1)    Defined as the gross reserve per insured loan in default.
(2)    Amount includes claims adjustment expenses.
    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
December 31, 2024September 30, 2024December 31, 2023
(In Thousands)
Available assets
$3,108,211 $3,006,892 $2,717,804 
Net risk-based required assets1,828,807 1,735,790 1,516,140 

16
v3.25.0.1
Cover Page
Feb. 14, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Feb. 06, 2025
Entity Registrant Name NMI Holdings, Inc.
Entity Central Index Key 0001547903
Amendment Flag false
Entity Incorporation, State or Country Code DE
Entity File Number 001-36174
Entity Tax Identification Number 45-4914248
Entity Address, Address Line One 2100 Powell Street
Entity Address, Address Line Two 12th Floor
Entity Address, City or Town Emeryville
Entity Address, State or Province CA
Entity Address, Postal Zip Code 94608
City Area Code 855
Local Phone Number 530-6642
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Class A Common Stock, par value $0.01
Trading Symbol NMIH
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
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