NMI Holdings, Inc.

Previous wording

NMIH, a Delaware corporation, was incorporated in May 2011, and we began start-up operations in 2012 and wrote our first MI policy in 2013. 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.

Current wording

NMIH, a Delaware corporation, was incorporated in May 2011, and we began start-up operations in 2012 and wrote our first MI policy in 2013. 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 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.

Previous wording

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.

Current wording

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.

Previous wording

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.

Current wording

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.

Previous wording

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.

Current wording

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.

Previous wording

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. Our underwriting standards and eligibility criteria are designed to limit the layering of risk in a single insurance policy. “Layered risk” refers to the accumulation of borrower, loan and property risk. For example, we have higher credit score and lower maximum allowed LTV requirements for investor-owned properties, compared to owner-occupied properties. 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.

Current wording

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 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. “Layered risk” refers to the accumulation of borrower, loan and property risk. For example, we have higher credit score and lower maximum allowed LTV requirements for investor-owned properties, compared to owner-occupied properties. 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.

Previous wording

The tables below present our NIW by FICO, 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.

Current wording

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.

Previous wording

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.

Current wording

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.

Previous wording

Reserves are established by estimating the number of loans in default that will result in a claim payment, which is referred to as claim frequency, and the amount of the claim payment expected to be paid on each such loan in default, which is referred to as claim severity. Claim frequency and severity estimates are established based on historical observed experience regarding certain loan factors, such as age of the default, cure rates, size of the loan and estimated change in property value. Reserves are released the month in which a loan in default is brought current by the borrower, which is referred to as a cure. 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.

Current wording

Reserves are established by estimating the number of loans in default that will result in a claim payment, which is referred to as claim frequency, and the amount of the claim payment expected to be paid on each such loan in default, which is referred to as claim severity. Claim frequency and severity estimates are established based on historical observed experience regarding certain loan factors, such as age of the default, cure rates, size of the loan and estimated change in property value. Reserves are released the month in which a loan in default is brought current by the borrower, which is referred to as a cure. 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 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.

Previous wording

(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 $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.

Current wording

(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 $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.

Previous wording

(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.

Current wording

(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 $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.

Previous wording

The“claims incurred” section of the table above shows claims and claim expenses incurred on defaults occurring in current and prior years, including IBNR reserves and is presented net of reinsurance. 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.

Current wording

The“claims incurred” section of the table above shows claims and claim expenses incurred on defaults occurring in current and prior years, including IBNR reserves and is presented net of reinsurance. 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 $122.6 million related to prior year defaults remained as of June 30, 2026.

Previous wording

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

Current wording

(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.

Previous wording

We paid 170 and 95 claims during the three months ended March 31, 2026 and 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.

Current wording

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.

Previous wording

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. These loans generally have less accumulated equity than loans from earlier vintages, which typically results in a higher frequency and severity of claims payments. An increase in the value of the homes collateralizing the mortgages we insure provides additional equity support to our risk exposure and raises the prospect of a third-party sale of a foreclosed property, which can mitigate the severity of our settled claims.

Current wording

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. An increase in the value of the homes collateralizing the mortgages we insure provides additional equity support to our risk exposure and raises the prospect of a third-party sale of a foreclosed property, which can mitigate the severity of our settled claims.

Previous wording

As an approved insurer, NMIC is subject to ongoing compliance with the PMIERs established by each of the GSEs (italicized terms have the same meaning that such terms have in the PMIERs, as described below). 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. non-performing (i.e., current vs. delinquent), LTV ratio and other risk features. In general, higher quality loans carry lower asset charges.

Current wording

As an approved insurer, NMIC is subject to ongoing compliance with the PMIERs established by each of the GSEs (italicized terms have the same meaning that such terms have in the PMIERs, as described below). 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 credit score, vintage (year of origination), performing vs. non-performing (i.e., current vs. delinquent), LTV ratio and other risk features. In general, higher quality loans carry lower asset charges.

Previous wording

Available assets were $3.6 billion at March 31, 2026, compared to $3.2 billion at March 31, 2025. The $400 million increase inavailable 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.

Current wording

Available assets were $3.7 billion at June 30, 2026, compared to $3.2 billion at June 30, 2025. The $412 million increase inavailable 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.

Previous wording

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.

Current wording

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.

Previous wording

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.

Current wording

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 period.

Previous wording

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.

Current wording

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.

Previous wording

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.

Current wording

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.

Previous wording

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.

Current wording

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.

Previous wording

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. As a U.S. taxpayer, we are subject to a statutory U.S. federal corporate income tax rate of 21%. 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. See Item 1, “Financial Statements - Notes to Condensed Consolidated Financial Statements - Note 9, Income Taxes.”

Current wording

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. As a U.S. taxpayer, we are subject to a statutory U.S. federal corporate income tax rate of 21%. 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 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.”

Previous wording

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.

Current wording

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.

Previous wording

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.

Current wording

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.

Previous wording

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.

Current wording

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.

Previous wording

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.

Current wording

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.

Previous wording

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.

Current wording

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.

Previous wording

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.

Current wording

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.

Previous wording

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.

Current wording

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.

Previous wording

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.

Current wording

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.

Previous wording

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. 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.

Current wording

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.

Previous wording

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. 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.”

Current wording

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.”

Previous wording

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.

Current wording

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.

Previous wording

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.

Current wording

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.

Previous wording

As of March 31, 2026, NMIH had $73.0 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. NMIH also has access to $250 million of undrawn revolving credit capacity under the 2024 Revolving Credit Facility.

Current wording

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 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.

Previous wording

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.

Current wording

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.

Previous wording

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. Under Wisconsin insurance laws, NMIC and Re One may pay dividends up to specified levels (i.e., “ordinary” dividends) with 30 days' prior notice to the Wisconsin OCI. Dividends in larger amounts, or “extraordinary” dividends, are subject to the Wisconsin OCI's prior approval. 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.

Current wording

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. Under Wisconsin insurance laws, NMIC and Re One may pay dividends up to specified levels (i.e., “ordinary” dividends) with 30 days' prior notice to the Wisconsin OCI. Dividends in larger amounts, or “extraordinary” dividends, are subject to the Wisconsin OCI's prior approval. 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. 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.

Previous wording

Therisk-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. 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; however, special consideration is given under PMIERs to loans that are delinquent on homes located in an area declared by the Federal Emergency Management Agency to be a Major Disaster zone eligible for Individual Assistance.

Current wording

Therisk-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 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; however, special consideration is given under PMIERs to loans that are delinquent on homes located in an area declared by the Federal Emergency Management Agency to be a Major Disaster zone eligible for Individual Assistance.

Previous wording

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. Re One has no RIF remaining and no longer reports a RTC ratio.

Current wording

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.

Previous wording

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. 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. 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., are of a contractually predetermined amount and due at a contractually predetermined date). NMIC’s only use of cash with the potential to develop along an unscheduled path is claims payments. Given the relatively small size of our current population of defaulted policies, the generally extended duration of the default-to-foreclosure-to-claim cycle, and the potential availability of forbearance, foreclosure moratorium and other borrower assistance programs (which serve to further extend the default-to-foreclosure-to-claim cycle timeline), we do not expect NMIC to use a meaningful amount of cash to settle claims in the near-term.

Current wording

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 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 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., are of a contractually predetermined amount and due at a contractually predetermined date). NMIC’s only use of cash with the potential to develop along an unscheduled path is claims payments. Given the relatively small size of our current population of defaulted policies, the generally extended duration of the default-to-foreclosure-to-claim cycle, and the potential availability of forbearance, foreclosure moratorium and other borrower assistance programs (which serve to further extend the default-to-foreclosure-to-claim cycle timeline), we do not expect NMIC to use a meaningful amount of cash to settle claims in the near-term.