Q2 2026 NMI Holdings Inc Earnings Call Transcript
Key Points
- NMI Holdings Inc (NMIH) delivered record financial results in Q2 2026, with total revenue of $187.9 million and adjusted net income of $106 million, or $1.38 per diluted share.
- The company achieved significant new business production, generating $16 billion of NIW volume and growing its primary insurance in force to a record $227.1 billion.
- NMI Holdings Inc (NMIH) surpassed the $500 billion milestone of insurance ever written, highlighting its consistent market success and scale.
- Credit performance remains strong, with a low default rate of 1.16% and favorable prior-year reserve development driven by a constructive macroeconomic and housing market environment.
- The company maintains a robust capital position with $1.6 billion in excess available assets under PMIERs and continues to return capital to shareholders, having repurchased $408 million of stock since 2022.
- NMI Holdings Inc (NMIH) is benefiting from a favorable reinsurance market, securing flexible and cost-effective coverage from traditional reinsurers, which supports its capital efficiency and risk management.
- NMI Holdings Inc (NMIH) expects its default population to trend higher in the second half of 2026 due to seasonal headwinds and the natural normalization of credit experience as the portfolio seasons.
- Persistency declined to 81.4% in Q2 2026 from 82.2% in Q1 2026, indicating a slight increase in policy cancellations or refinancing activity.
- The company faces ongoing macro risks, including potential pressure in certain regional housing markets such as Florida, Texas, and parts of the Sunbelt, which could impact future credit performance.
- While the 21st Century Road to Housing Act is supportive of housing supply, NMI Holdings Inc (NMIH) does not expect it to have a significant near-term impact on the private MI market or its business.
- The company's core yield remained flat at 34 basis points, and while expected to be stable, it could be negatively influenced by future rate movements that increase refinancing activity, which typically carries lower premiums.
- NMI Holdings Inc (NMIH) noted that competitive pressure persists in larger transactionally oriented business segments, a trend that has been present for nearly a decade.
Good day, and welcome to the NMI Holdings Inc 2026 second quarter earnings conference call. (Operator Instructions) Please note this event is being recorded.
I would now like to turn the conference over to John Swenson, Vice President of Investor Relations and Treasury. Please go ahead.
Thank you, operator. Good afternoon, and welcome to the 2026 second quarter conference call for National MI. I'm John Swenson, Vice President of Investor Relations and Treasury. Joining us on the call today are Brad Shuster, Executive Chairman; Adam Pollitzer, President and Chief Executive Officer; and Aurora Swithenbank, Chief Financial Officer.
Financial results for the quarter were released after the close today. The press release may be accessed on NMI's website located at nationalmi.com under the Investors tab. During the course of this call, we may make comments about our expectations for the future. Actual results could differ materially from those contained in these forward-looking
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