A provider of private mortgage insurance, NMI Holdings backs home loans through its subsidiary National Mortgage Insurance Corporation (National MI), helping lenders sell high loan-to-value mortgages to Fannie Mae and Freddie Mac. Founded in 2012 by Bradley Shuster and Jay Sherwood in the wake of the 2008 financial crisis, the company's name simply stands for National Mortgage Insurance. Its proprietary Rate GPS pricing engine sets individualized premiums based on granular loan details rather than a one-size-fits-all rate.
Claims expense fell 38% sequentially to $12.8M, reversing a five-quarter climb, while new insurance written rose 29% to $16.1B.
The claims increase that defined the last five quarters reversed sharply. rose 8.1% to $187.9M and rose 14% to $1.38, as net premiums earned grew 6% and the improved to 8.3% from 13.3% in the prior quarter. The default rate still rose to 1.24%, so the reprieve in claims may not last.
Key takeaways
Insurance claims and claim expenses fell 38% sequentially to $12.8M from $20.7M in Q1 2026, driven by lower new default notices and reserve releases from cures, after five straight quarters of increases.
New insurance written rose 29% to $16.1B, which management attributed to increased penetration of existing accounts and new customer activations.
Net premiums earned grew 6% to $157.5M, supported by growth in monthly insurance-in-force and direct monthly premium receipts.
Section summaries
Management's Discussion and Analysis
Net income rose 10% YoY to $106M in Q2 2026 on 6% higher net premiums earned and 22% higher net investment income.
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Net premiums earned grew 6% to $157.5M, driven by growth in monthly insurance-in-force and direct monthly premium receipts.
New insurance written (NIW) increased 29% to $16.1B, reflecting increased penetration of existing accounts and new customer activations.
Net investment income rose 22% to $30.3M, reflecting a larger invested asset base and higher book yields on new cash flows.
The company repurchased 1.5M shares for $59.1M and paid a $101M ordinary from its insurance subsidiary, while available assets under PMIERs reached $3.7B against a $2.1B net risk-based required amount.
The declined to 81.4% from 82.2% in Q1 2026 and 84.3% a year ago, while the default rate rose to 1.24% from 1.17% in the prior quarter.
What changed
The Q1 2026 watch item on claims expense was answered: the $20.7M level did not continue to rise, falling 38% to $12.8M as new default notices declined and reserve releases from cures provided an offset.
The Q1 2026 watch item on new insurance written was answered: the 33% growth rate did not prove a single-quarter spike, with NIW rising 29% to $16.1B, confirming a durable inflection in origination activity.
The Q1 2026 watch item on the default rate was answered: the rate rose further to 1.24% from 1.17%, confirming that portfolio seasoning and a growing default continue to build pressure.
The Q1 2026 watch item on persistency was answered: the rate declined again to 81.4%, extending the erosion from 84.3% a year ago and reducing the for premium growth and expense .
What to watch
Insurance claims expense in Q3 2026, to see whether the $12.8M level holds or rises again as the default rate continues to climb to 1.24% and aged delinquencies develop further.
The default rate trajectory, disclosed this quarter at 1.24%, to gauge whether the pace of increase accelerates and signals further claims pressure ahead.
in Q3 2026, to assess whether the decline to 81.4% continues, which would further reduce the for premium growth and expense .
New insurance written volume in Q3 2026, to see whether the 29% growth rate holds after two consecutive quarters above 29%, confirming a durable shift in origination activity.
Net investment income rose 22% to $30.3M due to a larger invested asset base and higher on new cash flows.
The improved to 8.3% from 9.0%, while the improved to 19.4% from 19.8%.
Available assets under PMIERs were $3.7B, exceeding the net risk-based required assets of $2.1B by a significant margin.
The company repurchased 1.5M shares for $59.1M and paid a $101M ordinary from its insurance subsidiary.
Risk factors that affect our business and financial results are discussed in Part I, Item 1A of our 2025 10-K. As of the date of this report, we are not aware of any material changes in our risk factors from the risk factors disclosed in our 2025 10-K. You should carefully consi…
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Risk factors that affect our business and financial results are discussed in Part I, Item 1A of our 2025 10-K. As of the date of this report, we are not aware of any material changes in our risk factors from the risk factors disclosed in our 2025 10-K. You should carefully consider the risks and uncertainties described herein and in our 2025 10-K, which have the potential to affect our business, financial condition, results of operations, cash flows or prospects in a material and adverse manner. The risks described herein and in our 2025 10-K are not the only risks we face, as there are additional risks and uncertainties not currently known to us or that we currently deem to be immaterial, which may in the future adversely affect our business, financial condition and/or operating results.