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 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.

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 September 30, 2026, we had issued master policies with 2,246 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 September 30, 2026, we had $229.7 billion of primary IIF and $61.6 billion of primary RIF.

Previous wording

Our common stock trades on the Nasdaq under the symbol “NMIH.” Our headquarters is located in Emeryville, California. As of June 30, 2026, we had 225 employees. Our corporate website is located atwww.nationalmi.com. Our website and the information contained on or accessible through our website are not incorporated by reference into this report.

Current wording

Our common stock trades on the Nasdaq under the symbol “NMIH.” Our headquarters is located in Emeryville, California. As of September 30, 2026, we had 229 employees. Our corporate website is located atwww.nationalmi.com. Our website and the information contained on or accessible through our website are not incorporated by reference into this report.

Previous wording

In April 2026, the GSEs began accepting mortgage loans evaluated using the VantageScore 4.0 credit scoring framework as an alternative to FICO scores from a limited number of approved lenders. During the second quarter of 2026, we insured a small number of loans evaluated using the VantageScore 4.0 framework. Such loans represented an immaterial portion of our new insurance written during the period; however, we expect our VantageScore 4.0 volume will increase in future periods as more lenders incorporate the new standard into their origination and delivery processes. We have evaluated VantageScore 4.0, including through internal analysis and a review of third-party and industry validation work, and believe that it is an appropriate credit scoring framework for use in our underwriting, pricing and risk management processes.

Current wording

On April 22, 2026, the GSEs began accepting mortgage loans evaluated using the VantageScore 4.0 credit scoring framework as an alternative to the classic FICO standard. We have evaluated VantageScore 4.0, including through internal analysis and a review of third-party and industry validation work, and believe that it is an appropriate credit scoring framework for use in our underwriting, pricing and risk management processes. VantageScore 4.0 loans represented less than 1% of our total IIF as of September 30, 2026. Although VantageScore 4.0 represents an immaterial portion of our current insured portfolio, we expect volume will increase in future periods as more lenders incorporate the new standard into their origination and delivery processes.

Previous 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.

Current wording

NIW increased 4% and 21%, respectively, during the three and nine months ended September 30, 2026 compared to the three and nine months ended September 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. NIW further benefitted from an increase in the size of the total mortgage insurance market during the nine months ended September 30, 2026 tied to the prevailing interest rate environment in the first six months of the year and associated increase in mortgage refinancing activity.

Previous 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.

Current wording

Primary IIF increased 5% at September 30, 2026 compared to September 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 80.8% at September 30, 2026 compared to 83.9% at September 30, 2025.

Previous 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.

Current wording

Net premiums written increased 5% and 6%, respectively, and net premiums earned increased 3% and 4%, respectively, during the three and nine months ended September 30, 2026 compared to the three and nine months ended September 30, 2025, primarily due to 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 during each respective period. The year-over-year increases in net premiums earned were further impacted by a reduction in the contribution of earnings from single premium policies.

Previous wording

(1) Includes de minimis amounts related to loans with VantageScore 4.0 credit scores for the three and six months ended June 30, 2026.

Current wording

(1) Includes immaterial amounts related to loans with VantageScore 4.0 credit scores for the three and nine months ended September 30, 2026.

Previous wording

(1) Includes de minimis amounts related to loans with VantageScore 4.0 credit scores as of June 30, 2026.

Current wording

(1) Includes immaterial amounts related to loans with VantageScore 4.0 credit scores as of September 30, 2026.

Previous wording

(1) Includes de minimis amounts related to loans with VantageScore 4.0 credit scores as of June 30, 2026.

Current wording

(1) Includes immaterial amounts related to loans with VantageScore 4.0 credit scores as of September 30, 2026.

Previous wording

(1) Calculated as total claims incurred (paid and reserved) divided by cumulative premiums earned, net of reinsurance.

Current wording

(2) Calculated as total claims incurred divided by cumulative premiums earned, net of reinsurance.

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 $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.

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 $91.3 million attributed to net case reserves and $12.9 million attributed to net IBNR reserves for the nine months ended September 30, 2026 and $77.2 million attributed to net case reserves and $9.8 million attributed to net IBNR reserves for the nine months ended September 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 $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.

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 $30.8 million attributed to net case reserves and $10.8 million attributed to net IBNR reserves for the nine months ended September 30, 2026 and $43.2 million attributed to net case reserves and $8.1 million attributed to net IBNR reserves for the nine months ended September 30, 2025.

Previous wording

(4) Excludes aggregate termination fees of $0.3 million for the six months ended June 30, 2025 incurred in connection with the amendment of certain QSR Transactions.

Current wording

(4) Excludes aggregate termination fees of $0.3 million for the nine months ended September 30, 2025 incurred in connection with the amendment of certain QSR Transactions.

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 $122.6 million related to prior year defaults remained as of June 30, 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 $103.5 million related to prior year defaults remained as of September 30, 2026.

Previous wording

The following table provides details of our claims paid, before giving effect to claims ceded under the QSR Transactions for the periods indicated:

Current wording

The following table provides details of our claims paid, excluding commutations and settlements, before giving effect to claims ceded under the QSR Transactions for the periods indicated:

Previous 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.

Current wording

(1) Count includes 19 and 46 claims settled without payment during the three and nine months ended September 30, 2026, respectively, and 14 and 50 claims settled without payment during the three and nine months ended September 30, 2025, respectively.

Previous 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.

Current wording

We paid 216 and 569 claims for $15.3 million and $39.0 million, respectively, during the three and nine months ended September 30, 2026, and 93 and 281 claims for $5.4 million and $16.1 million, respectively, during the three and nine months ended September 30, 2025. During the three and nine months ended September 30, 2026 we settled an additional 98 delinquent loans through commutation for $1.3 million, before giving effect to claims ceded under the QSR Transactions. 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 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.

Current wording

Our claims severity, excluding the impact of delinquent loans settled through commutation, was 87% and 88% for the three and nine months ended September 30, 2026, respectively, compared to 73% and 74% for the three and nine months ended September 30, 2025, respectively. The increase in claims severity for the three and nine months ended September 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

The risk-based required asset amount is a function of the risk profile of an approved insurer's RIF, assessed on a loan-by-loan basis and considered against certain risk-based factors derived from tables set out in the PMIERs, which is then adjusted on an aggregate basis for reinsurance transactions approved by the GSEs, such as with respect to our QSR Transactions, XOL Transactions and ILN Transactions. The aggregate gross risk-based required asset amount for performing, primary insurance is subject to a floor of 5.6% of performing primary adjusted RIF.

Current wording

The risk-based required asset amount is a function of the risk profile of an approved insurer's RIF, assessed on a loan-by-loan basis and considered against certain risk-based factors derived from tables set out in the PMIERs, which is then adjusted on an aggregate basis for reinsurance transactions approved by the GSEs, such as with respect to our QSR Transactions, XOL Transactions and ILN Transaction. The aggregate gross risk-based required asset amount for performing, primary insurance is subject to a floor of 5.6% of performing primary adjusted RIF.

Previous wording

On July 29, 2026, the GSEs updated PMIERs to establish risk-based required asset factors for loans carrying a VantageScore 4.0 credit score. The updated PMIERs will take effect on September 30, 2026. We do not expect the updated PMIERs to have a material impact on ouravailable assetsor risk-based required assets, and we expect to remain in full compliance with the existing and updated PMIERs, as applicable, prior to, on and after September 30, 2026.

Current wording

On July 29, 2026, the GSEs updated PMIERs to establish risk-based required asset factors for loans carrying a VantageScore 4.0 credit score. The updated PMIERs took effect on September 30, 2026 and did not have a material impact on ouravailable assets orrisk-based required assets.

Previous 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.

Current wording

Available assets were $3.8 billion at September 30, 2026, compared to $3.4 billion at September 30, 2025. The $404 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 $2.1 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.

Current wording

Net risk-based required assets were $2.2 billion at September 30, 2026, compared to $2.0 billion at September 30, 2025. The $178 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 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.

Current wording

Net premiums earned increased during the three and nine months ended September 30, 2026 compared to the three and nine months ended September 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 and an increase in ceded premiums earned under our third-party reinsurance transactions during each respective period.

Previous 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.

Current wording

Net investment income increased during the three and nine months ended September 30, 2026 compared to the three and nine months ended September 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 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.

Current wording

Insurance claims and claim expenses increased during the three and nine months ended September 30, 2026 compared to the three and nine months ended September 30, 2025 primarily due to an increase in the number of newly defaulted loans that emerged during each respective 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 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.

Current wording

Underwriting and operating expenses increased during the three and nine months ended September 30, 2026 compared to the three and nine months ended September 30, 2025 primarily due to an increase in employee compensation costs, partially offset by a decline in depreciation and amortization expenses. Underwriting and operating expenses during the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 were further impacted by increases in certain technology expenses and the aggregate ceding commission received under our QSR Transactions.

Previous 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.”

Current wording

Income tax expense decreased during the three and nine months ended September 30, 2026 compared to the three and nine months ended September 30, 2025. The decrease in income tax expense during the three months ended September 30, 2026 compared to the three months ended September 30, 2025 was primarily driven by a decrease in our pre-tax income. The decrease in income tax expense during the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 was primarily driven by a decrease in our effective tax rate related to the exercise of outstanding stock options during the period. Our effective tax rate on pre-tax income was 22.3% and 21.9% for the three and nine months ended September 30, 2026, respectively, compared to 22.4% and 22.2% for the three and nine months ended September 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 nine months ended September 30, 2026 and 2025 reflects the discrete tax effects of the vesting of RSUs, and our effective tax rate for the nine months ended September 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 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 total revenues, partially offset by increases in our underwriting and operating expenses and income tax expense. The year-over-year increase in net income and adjusted net income during the six months ended June 30, 2026 was further impacted by an increase in our insurance claims and claim expenses during the period.

Current wording

Net income and adjusted net income decreased during the three months ended September 30, 2026 compared to the three months ended September 30, 2025 primarily due to an increase in our insurance claims and claims expenses, partially offset by growth in our total revenues during the period. Net income and adjusted net income increased during the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 primarily due to growth in our total revenues, partially offset by an increase in our insurance claims and claim expenses during the period.

Previous 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.

Current wording

Diluted and adjusted diluted EPS increased during the three and nine months ended September 30, 2026 compared to the three and nine months ended September 30, 2025. The increase in diluted and adjusted diluted EPS during the three months ended September 30, 2026 compared to the three months ended September 30, 2025 was primarily due to a decline in the number of weighted average diluted shares outstanding in connection with continued share repurchase activity. The increase in diluted and adjusted diluted EPS during the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 was primarily driven by growth in our net income and adjusted net income, and further benefited from a decline in the number of weighted average diluted shares outstanding during the period.

Previous 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.

Current wording

Total cash and investments increased at September 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 nine months ended September 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 September 30, 2026 included $121.7 million held by NMIH.

Previous 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.

Current wording

Net deferred policy acquisition costs increased at September 30, 2026 compared to December 31, 2025 primarily due to the deferral of certain costs associated with the origination of new policies during the nine months ended September 30, 2026 largely offset by the recognition of previously deferred policy acquisition costs during the period.

Previous 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.

Current wording

Net software and equipment decreased at September 30, 2026 compared to December 31, 2025 due to the amortization of previously capitalized amounts during the nine months ended September 30, 2026, partially offset by the capitalization of certain software and equipment expenditures during the period.

Previous 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.

Current wording

Reinsurance recoverable increased at September 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 nine months ended September 30, 2026.

Previous 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.

Current wording

Other assets increased at September 30, 2026 compared to December 31, 2025 primarily due to an increase in accrued investment income, current income taxes receivable and prepaid expenses during the nine months ended September 30, 2026.

Previous 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.

Current wording

Unearned premiums decreased at September 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 nine months ended September 30, 2026, partially offset by single premium policy originations during the period.

Previous 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.

Current wording

Accounts payable and accrued expenses decreased at September 30, 2026 compared to December 31, 2025 primarily due to a reduction in accrued interest on the 2024 Notes, which is payable semi-annually in February and August, and the settlement of previously accrued compensation expenses during the nine months ended September 30, 2026, partially offset by an increase in reinsurance premiums payable during the period.

Previous 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.

Current wording

Reserve for insurance claims and claim expenses increased at September 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 nine months ended September 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 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.”

Current wording

Net deferred tax liability increased at September 30, 2026 compared to December 31, 2025 due to an increase in the claimed deductibility of our statutory contingency reserve during the nine months ended September 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 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.

Current wording

Net cash provided by operating activities increased during the nine months ended September 30, 2026 compared to the nine months ended September 30, 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 claims paid.

Previous 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.

Current wording

Cash used in investing activities for the nine months ended September 30, 2026 and 2025 reflects the purchase of fixed and short-term maturities with cash provided by operating activities, and the reinvestment of maturities, redemptions, sale proceeds and coupon payments within our investment portfolio.