Here are 1-3 brief analogies for NMI (NMIH):

1. It's like GEICO or Progressive, but for mortgage loans instead of cars, protecting lenders from borrower defaults.
2. Think of it as the commercial insurance arm of a company like AIG or Chubb, but entirely dedicated to insuring mortgage loans against default.
3. It serves a purpose similar to a private Fannie Mae or Freddie Mac, providing risk mitigation for lenders in the mortgage market through private mortgage insurance.

• Private Mortgage Insurance (PMI): Provides insurance coverage to lenders, protecting them against losses from borrower defaults on high loan-to-value mortgages.

National Mortgage Insurance Corporation (NMIH) is a private mortgage insurance (PMI) provider. Its core business involves providing mortgage insurance policies that protect lenders against financial losses if a borrower defaults on their home loan.

Therefore, NMIH sells primarily to other companies, specifically mortgage lenders.

Due to the nature of the private mortgage insurance industry, NMIH operates through a broad and diverse network of mortgage lenders across the United States. The company typically does not have specific "major customers" that account for a material portion of its revenues, and thus, does not publicly disclose individual customer names. Its business model relies on serving a wide array of mortgage originators rather than concentrating on a few large clients.

NMIH's customer base of lenders can be broadly categorized as:

• National and Regional Mortgage Lenders: These are large-scale mortgage originators, including major banks and non-bank lenders, that operate across multiple states or significant regions.
• Community Banks and Credit Unions: Smaller, localized or regionally focused financial institutions that provide mortgage products to their members and customers.
• Independent Mortgage Companies: Non-depository institutions that specialize exclusively in mortgage origination and often work with a variety of capital sources, including PMI providers.

• Arch Capital Group Ltd. (ACGL)

Adam Pollitzer President and Chief Executive Officer

Adam Pollitzer joined National MI in 2017 and was appointed President and Chief Executive Officer in January 2022. Prior to this role, he served as the company's Executive Vice President and Chief Financial Officer from 2017 to 2021. Before joining National MI, Mr. Pollitzer was a Managing Director in the corporate and investment banking division of J.P. Morgan Securities, LLC, where he led advisory and capital raising efforts for North American insurance companies. He holds a bachelor's degree in business administration from the Stephen M. Ross School of Business at the University of Michigan.

Aurora Swithenbank Executive Vice President, Chief Financial Officer

Aurora Swithenbank was appointed Executive Vice President and Chief Financial Officer of National MI, effective May 1, 2024. Before joining National MI, Ms. Swithenbank served as Chief Financial Officer at Vantage Group Holdings Ltd., a Bermuda-based specialty insurance and reinsurance group, where she was responsible for organizing the company's finance department. Prior to Vantage Group, she spent over 20 years at Goldman Sachs, holding various roles, including Partner and Head of Insurance in the Americas Financing Group. Ms. Swithenbank holds a Bachelor's degree from Harvard University.

Bradley M. Shuster Executive Chairman and Chairman of the Board

Bradley M. Shuster has served as Executive Chairman and Chairman of the Board of NMI Holdings, Inc. (NASDAQ: NMIH) since January 2019. Mr. Shuster founded National MI and previously served as its Chairman and Chief Executive Officer from 2012 to 2018. Before founding National MI, he was a senior executive at The PMI Group, Inc. (NYSE: PMI), where he held the position of Chief Executive Officer of PMI Capital Corporation. Prior to joining PMI in 1995, Mr. Shuster was a partner at Deloitte LLP, where he was partner-in-charge of Deloitte's Northern California Insurance and Mortgage Banking practices. He also serves as an independent director of McGrath RentCorp and WaFd, Inc.

William J. Leatherberry Executive Vice President, Chief Administrative Officer, General Counsel and Secretary

William J. Leatherberry joined National MI in 2014 and serves as Executive Vice President, Chief Administrative Officer, General Counsel, and Secretary. Before his tenure at National MI, Mr. Leatherberry was Executive Vice President, Chief Legal Officer, General Counsel, and Secretary for Century Aluminum, a publicly-traded primary aluminum company. He began his career as a corporate associate with the law firm Jones Day. Mr. Leatherberry holds a B.A. in business management and an M.B.A. from the University of Texas, and a J.D. from Southern Methodist University.

Robert Smith Executive Vice President, Chief Risk Officer

Robert Smith is the Executive Vice President and Chief Risk Officer of National MI, a position he has held since joining the company in 2012. His previous roles at National MI include Senior Vice President of Pricing and Portfolio Analytics from 2015 to 2018 and Vice President of Pricing and Portfolio Analytics from 2012 to 2015. Prior to joining National MI, Mr. Smith held leadership positions at Washington Mutual and PMI Mortgage Insurance Co. He holds an M.S. degree in engineering and an M.B.A. from Stanford University, and has earned a Chartered Financial Analyst designation.

• Housing Market Slowdown or Correction

  A significant slowdown or correction in the housing market is a primary risk to NMIH. High interest rates can lead to a decrease in new mortgage applications, which in turn reduces new business and slows premium growth for NMIH. Should home sales decline or prices fall, the company could experience higher default rates and an increase in insurance claims. The mortgage insurance industry is inherently cyclical and highly sensitive to overall housing market conditions.

• Regulatory Changes

  NMIH faces substantial regulatory risks, particularly from potential changes to the Private Mortgage Insurer Eligibility Requirements (PMIERs) set by the Federal Housing Finance Agency (FHFA). These changes, which are being phased in through September 2026, could necessitate NMIH holding more capital in reserve or acquiring more expensive reinsurance, thereby increasing costs and reducing operational flexibility. Furthermore, any changes in the business practices of Government-Sponsored Enterprises (GSEs) or new federal legislation could diminish the market opportunity for private mortgage insurers like NMIH.

• Increased Claims Due to Credit Risk Concentration or Economic Shocks

  While NMIH has maintained strong credit performance, there is a risk of increased claims stemming from a decline in borrower quality or localized economic shocks, such as natural disasters in specific regions. A broader economic downturn could also lead to higher default rates and larger claims than anticipated. Notably, an increase in paid claims was observed in early 2025, which has been identified as a potential warning sign requiring ongoing monitoring for signs of portfolio stress.

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NMI Holdings Inc. (NMIH) operates in the private mortgage insurance market in the United States.

The global private mortgage insurance (PMI) market was estimated at approximately $6.24 billion in 2024 and is projected to grow to $6.84 billion in 2025. This market is expected to reach $9.71 billion by 2029, exhibiting a compound annual growth rate (CAGR) of 9.2%. North America holds the largest share of the global PMI market. The United States is a significant driver of this market's growth.

By the end of 2024, nearly $1.6 trillion in mortgages in the United States carried private mortgage insurance coverage.

NMI Holdings, Inc. (NMIH) is expected to drive future revenue growth over the next 2-3 years through several key areas:

1. Growth in Primary Insurance-in-Force and New Insurance Written (NIW): A consistent expansion of NMIH's insured portfolio, driven by new insurance written, is a primary driver of revenue through earned premiums. The company has reported consistent growth in its primary insurance-in-force, reaching $207.5 billion in Q3 2024, $210.2 billion by year-end 2024, $211.3 billion in Q1 2025, $214.7 billion in Q2 2025, and $218.4 billion in Q3 2025.
2. Favorable Mortgage Market Conditions: The resilience of the U.S. housing market, along with long-term secular trends and improvements in mortgage rates, is anticipated to sustain new business opportunities for NMIH. Management's guidance is shaped by the expectation that these trends will continue to fuel new insurance originations.
3. Strategic Customer Acquisition and Differentiation: NMIH emphasizes its commitment to differentiating with its customers and increasing its focus on customer acquisition. This strategy aims to expand its market penetration and secure new mortgage insurance business.
4. Growth in Investment Income: NMIH's total revenue includes a component from investment income. The company has demonstrated an upward trend in investment income, reporting $23.7 million in Q1 2025, $24.9 million in Q2 2025, and $26.8 million in Q3 2025, which is expected to continue contributing to overall revenue growth.
5. Effective Risk Management and Reinsurance Agreements: While primarily enhancing funding efficiency and risk coverage, new reinsurance agreements entered into for business originating between 2025 and 2027 support NMIH's capacity to underwrite new business and manage its capital effectively. This robust risk transfer framework allows the company to pursue growth opportunities confidently.

1. Share Repurchases
   • On February 6, 2025, NMI Holdings, Inc. announced an additional $250 million share repurchase plan authorized by its Board of Directors, effective through December 31, 2027.
   • This new authorization brought the company's total share repurchase capacity to $330 million as of February 6, 2025.
   • The company repurchased $27.9 million of common stock, retiring 722,000 shares in the fourth quarter of 2024, and $23.2 million of common stock in the second quarter of 2025, retiring 628,000 shares.
2. Share Issuance
   • In June 2020, NMI Holdings, Inc. announced a proposed public offering of 10 million shares of its Class A common stock, with net proceeds intended for general corporate purposes, including potential capital contributions to support subsidiary growth.
   • The number of issued shares increased from 87,902,626 as of December 31, 2024, to 88,321,226 as of March 31, 2025.