NMIH 10-K & 10-Q changes, risk factors and insider trading

•Changes in inflation, interest rates and mortgage interest rates may have an adverse impact on our business, future revenue and financial condition.

•We outsource the underwriting of our mortgage insurance on certain loans to third-party underwriting service providers (USPs).USPs. If these USPs fail to adequately perform their underwriting services or place our coverage on loans we would deem ineligible, we could experience increased claims on loans underwritten by them, and our customer relationships could be negatively impacted.

•Climate changerisk and efforts to manage or regulate climate risk by government agencies could affect our business and operations.

•Changes in the business practices of the GSEs, including a decision to decrease or discontinue the use of private MI, or changes in the terms on which mortgage insurance coverage may be cancelled,canceled, federal legislation that changes their charters or a restructuring of the GSEs or changes in loan delivery pricing imposed by the GSEs could reduce the private MI market opportunity, reduce our revenues or increase our losses.

As inflation has lowered housing affordability, the use of adjustable-rate mortgages (ARMs) and interest rate buydown transactions have become more common. Interest rate buydown happens when the builder or seller, to increase the chances of selling a home, contributes funds that subsidizes the buyer's mortgage loan interest rate during a certain period of time, resulting in a lower monthly payment on the mortgage for the buyer. However, once the buydown rate ends, the buyer’s monthly payment increases. Increasing interest rates typically also lead to higher monthly payments for borrowers with existing ARMs and could materially impact the cost and availability of refinance options for borrowers. A decline in home values typically makes it more difficult for borrowers to sell or refinance their homes, generally increasing the likelihood of a default followed by a claim when borrowers are impacted by events that reduce their incomes or increase their expenses. In addition, home price depreciation may also decrease the willingness of borrowers with sufficient resources to make mortgage payments when their mortgage balances exceed the values of their homes. Declines in home values typically increase the severity of any claims we may pay. Home values may decline even absent deterioration in economic conditions due to declines in demand for homes, which may result from changes in buyers' perceptions of the potential for future home price appreciation, rising interest rates or availability of mortgage credit. The ending of any widely embraced forbearance programs may also increase the realization of losses related to borrower defaults. If our default and loss projections are materially inaccurate, our actual losses could materially exceed our expectations and adversely affect our financial condition and operating results.

Additionally, while we seek to diversify our insured loan portfolio geographically, the availability of business might lead to concentrations in specific regions in the U.S., which could make our business more susceptible to economic downturns in these regions. Certain regions of the U.S.U.S., from time to timetime, will experience weaker economic conditions, higher unemployment, lower property values or weaker housing markets. Consequently, loans in these regions will experience higher rates of default, foreclosure and loss than on loans nationally, and struggling borrowers in regions with an oversupply of homes may be unable to sell their homes as a means to avoid foreclosure. Any deterioration in housing prices, housing markets or economic conditions in regions in which we have a significant concentration of IIF and which adversely affects the ability of borrowers to make payments on their insured loans may increase the likelihood and severity of our losses, which could have a material adverse effect on our financial condition and operating results.

•economic conditions that affect a borrower's decision to pay-offpay off a mortgage earlier than required;

•cancellation of BPMI mandated by the HOPA, with the time-frames for HOPA requiredHOPA-required cancellations generally accelerating in a lower interest rate environment relative to a higher interest rate environment.

We outsource the underwriting of our mortgage insurance on certain loans to third-party underwriting service providers (USPs).USPs. If these USPs fail to adequately perform their underwriting services or place our coverage on loans we would deem ineligible, we could experience increased claims on loans underwritten by them, and our customer relationships could be negatively impacted.

The actual claims we incur as our portfolio matures are difficult to predict and depend on the specific characteristics of our current in-force book (including the credit score and DTI ratio of the borrower, the LTV ratio of the mortgage and geographic concentrations, among others), as well as the risk profile of new business we write in the future. In addition, our claims experience is affected by macroeconomic factors such as housing prices, inflation, interest rates, mortgage rates, unemployment rates and other events, such as natural disasters, including earthquakes, wildfires, hurricanes, floods and tornadoes or pandemics, and any federal, state or local governmental response thereto. See Part II, Item 7, "“Management's Discussion and Analysis of Financial Condition and Results of Operations -– Key Factors Affecting Our Results – Insurance Claims and Claim Expenses."” Incurred losses and claims may exceed our expectations in the event of general economic weakness or decreases in housing values. Even if our default rate remains the same, the total number of claims that we incur will increase as our portfolio continues to grow. An increase in the number or size of claims, compared to what we anticipate, could adversely affect our operating results and financial condition.

The COVID-19 pandemic demonstrated that government actions in response to a national pandemic could create strains on servicers in connection with the remittance of premiums. We cannot estimate how the riseimpact of newfuture variantspandemics and government actions in response to them could affect our servicers in the future. If one or more of our large servicers were to experience adverse effects to its business, such servicers could experience delays in meeting their reporting requirements, which could result in our inability to correctly record new loans as they are underwritten and/or properly recognize and establish loss reserves on loans when defaults exist or occur but are not reported timely or at all. Significant failures by large servicers or disruptions in the servicing of mortgage loans we insure would adversely impact our business, financial condition and operating results.

Climate changerisk and efforts to manage climate risk by government agencies could affect our business and operations.

We do not directly insure climate-related risks. Our insurance policies also generally exclude losses resulting from physical damage to the properties securing the loans we insure. While climate-related risks such as flood, wildfire, wind, and earthquake do not directly cause losses to our business, we are indirectly exposed to risks of climate change.risks. A natural disaster event could be triggered by climate change and could lead to unexpected changes in persistency rates as policyholders and borrowers who are affected by the disaster may be unable to meet their contractual obligations, such as mortgage payments on loans we insure. A natural disaster triggered by climate change could also trigger an economic downturn in the areas directly or indirectly affected by the natural disaster. These consequences could, among other things, result in a decline in new business and increased claims from those areas, and adverse effects on home prices in those areas, which could result in unexpected loss experience in our business. These events also could disrupt public and private infrastructure, including communications and financial services, which could disrupt normal business operations.

Since 2020, the FHFA has been increasingly vocal about climate and natural disasters and their impact on the GSEs and the Federal Home Loan Banks (together, the regulated entities) and the national housing market, and has designated climate changerisk as a priority concern and instructed the GSEs to actively consider its effects in their decision making. To that end, the FHFA established a new Conservatorship Scorecard which would hold the GSEs accountable for ensuring resiliency to climate and disaster risks, and also enhanced its monitoring and supervision of climate changerisk issues. In 2024, FHFA issued two Advisory Bulletins on climate-related risk management that established a GSE risk management framework to include: (1) governance; (2) risk identification and assessment, controls, and monitoring processes; (3) metrics and data; (4) scenario analysis; and (5) risk reporting and communication processes. The GSEs have also updated their disaster playbooks, implemented Green Bond products, and partnered with FHFA to develop additional tools and analysis. It is possible that efforts to manage climate risk by the FHFA, GSEs (including through GSE guideline or mortgage insurance policy changes) or others could materially impact the volume and characteristics of our NIW (including its policy terms), home prices in certain areas and defaults by borrowers in certain areas, as well as increase the costs to us of providing mortgage insurance in certain areas, and therefore may impact our business and operations.

We use third-party reinsurance, including the ILNQSR Transactions, QSRXOL Transactions, and XOLILN Transactions,Transactions to actively manage our risk, ensure compliance with PMIERs, state regulatory and other applicable capital requirements and support the growth of our business. There is a risk that these transactions will not continue to provide the benefits we expected when we entered into them, including as a result of our counter-parties under the QSR Transactions and XOL Transactions (which are not fully collateralized like the ILN Transactions) not performing their obligations, the GSEs or the Wisconsin OCI not continuing to give us full capital credit as anticipated for the duration of the contracts, or if one or more reinsurers under any of the QSR Transactions or XOL Transactions experiences a downgrade or other adverse business event. Any of these events could have negative impacts on the credit for the risk transferred under the reinsurance agreements and, in turn, on our capital needs, PMIERs position and growth potential.

The success of our business depends on our ability to timely and effectively resolve any significant issues that may arise with the operation of our technology platform. While we anticipate that our engagement with TCS will enhance our ability to further develop, deploy, and service our technology platform, any delays caused by the outsourcing of these functions, deterioration in our relationship with TCS, or termination of our engagement with TCS could lead to significant disruptions in our operations. If our technology platforms fail to perform in the manner we expect, our business, financial condition and operating results may be significantly harmed. Further, our business would be negatively impacted if we are unable to enhance our platform when necessary to support our primary business functions, including to match or exceed the technological capabilities of our competitors over time.time (including with respect to new and complex information technology such as artificial intelligence). We cannot predict with certainty the cost of maintaining and improving our platform, but failure to make necessary improvements and any significant shortfall in any technology enhancements or negative variance in the timeline in which system enhancements are delivered could have an adverse effect on our business, financial condition and operating results.

We have adopted information security procedures and controls to safeguard our systems and the information that we process, transmit and store, including multi-factor authentication and a new biometrics solution to authenticate employee login. Despite these efforts, we may not be able to anticipate or implement effective preventive measures against all cyber threats, or detect and contain a breach in a timely manner, including because employees or contractors may not follow the controls we have implemented, the invasive techniques used change frequently or are not recognized until launched, and because security attacks can originate from a wide variety of sources and methods. Further, the sophistication, availability and use of artificial intelligence by threat actors may present an increased level of risk. Our remote or hybrid working arrangements may exacerbate these risks. Our employees, contractors, customers or other users of our systems areare, from time-to-timetime to time, subject to fraudulent inducements by parties attempting to gain access to our data or that of our customers. Although we seek to have appropriate information security policies and systems in place, there is no assurance that our information security policies and systems in place can prevent unauthorized use or disclosure of confidential information, including nonpublic personal information. Any compromise of the security of our IT systems may result in loss of personally identifiable information, financial losses, loss of customers and the inability to transact business; could be costly and time-consuming to address and resolve; could expose us to liability for further compromise, damages, harm our reputation; and may subject us to regulatory scrutiny and/or expose us to civil litigation or regulatory action. If any of these were to occur, our business, financial condition and operating results could be materially adversely affected. Further, the technology errors and omissions, and insurance coverage we maintain may be unavailable or inadequate to fully cover claims and/or costs associated with incidents that may occur in the future.

Changes in the business practices of the GSEs, including a decision to decrease or discontinue the use of private MI, or changes in the terms on which mortgage insurance coverage may be cancelled,canceled, federal legislation that changes their charters or a restructuring of the GSEs or changes in loan delivery pricing imposed by the GSEs could reduce the private MI market opportunity, reduce our revenues or increase our losses.

Leadership at the FHFA changes from time-to-time.time to time. Given that the Director of the FHFA is removable by the President at will, the agency's agenda, policies and actions likely will be significantly influenced by the then current administration. Accordingly, it is difficult to predict whether or how the FHFA might seek to implement GSE oversight beyond the current administration's term. Between the Director of the FHFA and the Treasury Department, they possess significant capacity to effect administrative GSE reforms. Subsequent to the adoption of the 2020 ERCF rule and the PSPAs, the Director of the FHFA, together with the Treasury Department, have adopted amendments to both the 2020 ERCF and the PSPAs to help facilitate the ultimate release of the GSEs from conservatorship and additional changes could be adopted. Further changes to the ERCF, the PSPAs, or the business practices of the GSEs, including any that increase the capital required to be held by us under PMIERs, could make our products less desirable or more expensive and could have a material adverse impact on our financial condition and future business prospects.

From time-to-time,time to time, we have been involved in certain legal proceedings in the ordinary course of business. To date, we have not recognized a material liability related to any of our legal proceedings. However, the outcome of litigation and other legal and regulatory matters is inherently uncertain, and it is possible that one or more of any such matters in the future could have an unanticipated material adverse effect on our liquidity, financial position and operating results.

•expenses incurred in connection with changes in our stock price, such as changes in the value of the liability reflected on our financial statements associated with outstanding warrantsprice;

The following analysis of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and notes thereto included below in Item 8 of this report and the Risk Factors included above in Part I, Item 1A of this report. In addition, investors should review the “Cautionary Note Regarding Forward-Looking Statements” and the “Glossary of Abbreviations and Acronyms” above.

We have important relationships with customers across all categories and allocation profiles, including National Accounts and Regional Accounts, and centralized and decentralized lenders. Our sales and marketing efforts are broadly focused on expanding our presence with existing customers and activating new customer relationships. We consider an activation to be the point at which we have signed a Master Policy, established IT connectivity and generated a first application or first dollar of NIW from a customer. During the year ended December 31, 2024,2025, we activated 11890 lenders, compared to 70118 and 12070 for the years ended December 31, 20232024 and 2022,2023, respectively. We also continued to expand our business with existing customers, deepening our existing relationships and capturing what we believe to be an increasing portion of their annual MI volume. At December 31, 2024,2025, we had issued 2,0862,193 Master Policies and established 1,621 active customer relationships,Policies, compared to 1,9742,086 and 1,503, respectively,1,974, as of December 31, 20232024 and 1,8752023, and 1,434, respectively, as of December 31, 2022.respectively.

We set our premium rates on individual policies based on the risk characteristics of the underlying mortgage loans and borrowers, and in accordance with our filed rates and applicable rating rules. OnWe Juneprimarily 4,price 2018,our wepolicies introducedthrough a proprietary risk-based pricing platform, which we refer to as Rate GPS®. Rate GPS® considers a broad range of individual and layered risk variables, including property type, type of loan product, borrower creditcredit, characteristics,loan-level, product and lender attributes, as well as market and marketgeographic factors, and provides us with the ability to set and charge premium rates commensurate with the underlying risk of each loan that we insure. We introduced Rate GPS® in June 2018 to replace our previous rate card pricing system. While most of our new business is priced through Rate GPS®, we also continue to offer a rate card pricing option to a limited number of lender customers whowhen require a rate cardrequired for operationalbusiness process reasons. We believe that the introduction and utilization of Rate GPS® provides us with a more granular and analytical approach to evaluating and pricing risk, and that this approach enhances our ability to continue building a high-quality mortgage insurance portfolio and delivering attractive risk-adjusted returns.

Premiums are paid either by the borrower (borrower-paid mortgage insurance or BPMI) or the lender (lender-paid mortgage insurance or LPMI) in a single payment at origination (single premium), on a monthly installment basis (monthly premium) or on an annual installment basis (annual premium). Our net premiums written will differ from our net premiums earned due to policy payment type. For single premiums, we receive a single premium payment at origination, which is earned over the estimated life of the policy. Substantially all of our single premium policies in force as of December 31, 20242025 were non-refundable under most cancellation scenarios. If non-refundable single premium policies are canceled, we immediately recognize the remaining unearned premium balances as earned premium revenue. Monthly premiums are recognized in the month billed and when the coverage is effective. Annual premiums are earned on a straight-line basis over the year of coverage. Substantially all of our policies provide for either single or monthly premiums.

The following table presents NIW and primary IIF as of the dates and for the periods indicated. Unless otherwise noted, the tables below do not include the effects of our third-party reinsurance arrangements described above.

NIW increased 6% and 14%, respectively, for the yearyears ended December 31, 20242025 increasedand 14% compared to the year ended December 31, 2023,2024, primarily due to growth in our customer franchise and market presence tied to the increased penetration of existing customer accounts and new customer activations.activations NIWas forwell theas yearan ended December 31, 2023 decreased 31% compared to the year ended December 31, 2022, primarily due to a declineincrease in the size of the total mortgage insurance market.

Our persistency rate was 85%,83.4%, 86%84.6% and 84%86.1% at December 31, 2024,2025, 20232024 and 2022,2023, respectively. Persistency remainsremained historically high due to a continued slowdown in the pace of mortgage refinancing activity tied to the prevailing interest and mortgage rate environment.

Net premiums written increased 12%9% and 4%,12%, respectively, and net premiums earned increased 11%7% and 7%,11%, respectively, during the years ended December 31, 20242025 and 2023,2024, primarily driven by growth in our monthly IIF and direct monthly pay premiumspremium receipts. The sequential increase in net premiums earned during each successive year wasreceipts, partially offset by a decline in the contributionimpact fromof singleceded premiumpremiums policywritten cancellationsand period-to-period.earned under our third-party reinsurance transactions.

The tables below present our primary 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.

Reserves for claims and claim expenses are established for mortgage loans that are in default. A loan is considered to be in default as of the payment date at which a borrower has missed the preceding two or more consecutive monthly payments. We establish reserves for loans that have been reported to us in default by servicers, referred to as case reserves, and additional loans that we estimate (based on actuarial review and other factors) to be in default that have not yet been reported to us by servicers, referred to as incurred but not reported (IBNR).IBNR. We also establish reserves for claim expenses, which represent the estimated cost of the claim administration process, including legal and other fees and other general expenses of administering the claim settlement process. Reserves are not established for future claims on insured loans which are not currently reported or which we estimate are not currently in default.

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, ILNXOL Transactions and XOLILN Transactions as applicable under each treaty. We have not yet ceded reserves under any of the ILNXOL Transactions or XOLILN Transactions as incurred claims and claim expenses on each respective reference pool remain within our retained coverage layer for each transaction.

The following table provides a reconciliation of the beginning and ending gross reserve balances for primary insurance claims and claim expenses:

(4) Excludes aaggregate fees of $0.8 million and $0.7 million termination fee for the yearyears ended December 31, 20232025 and 2023, respectively, incurred in connection with the termination or amendment of the 2020certain QSR Transaction.Transactions.

Our claims severity for the years ended December 31, 2024, 2023 and 2022 was 61%, 55% and 49%, respectively. Our claims severity for each year wasstill below long-term industry norms and benefited from the same broad national house price appreciation that supported our claims paid experience. 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.

Average reserve per default increased from December 31, 20222024 to December 31, 2023,2025, primarily due to changes in the composition of our default inventory as measured by the size, vintage and current estimated LTV of defaulted loans, as well as the proportion of such loans benefitingbetween frommeasurement a forbearance program granted in response to a financial hardship related to COVID-19.dates. Average reserves per default were further impacted by changes in observed and forecasted housing market conditions and macroeconomic factors between the measurement dates.

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 qualityhigher-quality loans carry lower asset charges.

Under the PMIERs, approved insurers must maintain available assets that equal or exceed minimum required assets, which is an amount equal to the greater of (i) $400 million or (ii) a total risk-based required asset amount. 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 ILNQSR Transactions, XOL Transactions and QSRILN 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.

Net risk-based required assets were $2.1 billion at December 31, 2025, compared to $1.8 billion at December 31, 2024,2024 compared toand $1.5 billion at December 31, 2023 and $1.2 billion at December 31, 2022.2023. The 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, partiallyand offsetwas further impacted by riskthe cededgrowth underin our third-partydefault reinsuranceinventory agreements.and defaulted RIF.

The MI industry is highly competitive and currently consists of six private mortgage insurers, including NMIC, as well as government MIs such as the FHA, USDA or VA. A range of factors influence a lender's and borrower's decision to choose private over government MI, including among others, premium rates and other charges, loan eligibility requirements, the cancelability of private coverage, loan size limits and the relative ease of use of private MI products compared to government MI alternatives. Private MI companies compete based on service, customer relationships, underwriting and other factors, including price, credit risk tolerance and IT capabilities. We expect the private MI market to remain competitive, with pressure for industry participants to maintain or grow their market share.

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 MarchJune 31,30, 2026, we had issued master policies with 2,2092,223 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 MarchJune 31,30, 2026, we had $222.3$227.1 billion of primary IIF and $59.5$60.8 billion of primary RIF.

Our common stock trades on the Nasdaq under the symbol “NMIH.” Our headquarters is located in Emeryville, California. As of MarchJune 31,30, 2026, we had 225 employees. Our corporate website is located at www.nationalmi.com. Our website and the information contained on or accessible through our website are not incorporated by reference into this report.

Premiums are paid either by the borrower (BPMI) or the lender (LPMI) in a single payment at origination (single premium), on a monthly installment basis (monthly premium) or on an annual installment basis (annual premium). Our net premiums written will differ from our net premiums earned due to policy payment type. For single premiums, we receive a single premium payment at origination, which is earned over the estimated life of the policy. Substantially all of our single premium policies in force as of MarchJune 31,30, 2026 were non-refundable under most cancellation scenarios. If non-refundable single premium policies are canceled, we immediately recognize the remaining unearned premium balances as earned premium revenue. Monthly premiums are recognized in the month billed and when the coverage is effective. Annual premiums are earned on a straight-line basis over the year of coverage. Substantially all of our policies provide for either single or monthly premiums.

NIW increased 33%29% and 31%, respectively, during the three and six months ended MarchJune 31,30, 2026 compared to the three and six months ended MarchJune 31,30, 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.

Primary IIF increased 5%6% at MarchJune 31,30, 2026 compared to MarchJune 31,30, 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 82.2%81.4% at MarchJune 31,30, 2026 compared to 84.3%84.1% at MarchJune 31,30, 2025.

Net premiums written increased 8% and 7%, respectively, and net premiums earned increased 6% and 5%, respectively, during the three and six months ended MarchJune 31,30, 2026 compared to the three monthsand ended March 31, 2025. Net premiums earned increased 4% during the threesix months ended MarchJune 31,30, 2026 compared to the three months ended March 31, 2025. The growth in net premiums written and earned was2025, primarily driven by growth in our monthly IIF and direct monthly pay premium receipts,receipts. partiallyThe offsetyear-over-year increases in net premiums written and earned were further impacted by thechanges impact ofin ceded premiums written and earned under our third-party reinsurance transactions.transactions Theduring growtheach inrespective net premiums earned was further impacted by a reduction in the contribution of earnings from single premium policies.period.

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 FICOcredit 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.

The tables below present our NIW by FICO,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.

The tables below present our total primary IIF and RIF by FICOcredit score and LTV, and total primary RIF by loan type as of the dates indicated.

The table below presents selected primary portfolio statistics, by book year, as of MarchJune 31,30, 2026.

The following table shows the distribution by state of our primary RIF as of the dates indicated. The distribution of our primary RIF as of MarchJune 31,30, 2026 is not necessarily representative of the geographic distribution we expect in the future.

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 TransactionsTransaction as applicable under each treaty. We have not yet ceded reserves under any of the XOL Transactions or ILN TransactionsTransaction as incurred claims and claim expenses on each respective reference pool remain within our retained coverage layer for each transaction.

(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$61.4 million attributed to net case reserves and $11.7$11.8 million attributed to net IBNR reserves for the threesix months ended MarchJune 31,30, 2026 and $25.9$51.5 million attributed to net case reserves and $8.1$8.8 million attributed to net IBNR reserves for the threesix months ended MarchJune 31,30, 2025.

(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$28.8 million attributed to net case reserves and $10.8 million attributed to net IBNR reserves for the threesix months ended MarchJune 31,30, 2026 and $21.8$34.9 million attributed to net case reserves and $8.1 million attributed to net IBNR reserves for the threesix months ended MarchJune 31,30, 2025.

(4) RepresentsExcludes aggregate termination fees of $0.3 million for the settlementsix ofmonths reinsuranceended recoverablesJune 30, 2025 incurred in conjunctionconnection with the termination or amendment of certain QSR Transactions.

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$122.6 million related to prior year defaults remained as of MarchJune 31,30, 2026.

Ending default inventory increased from MarchJune 31,30, 2025 to MarchJune 31,30, 2026, primarily due to the growth and seasoning of our insured portfolio, partially offset by cure activity within our default population during the intervening period.

(1) Count includes 1215 and 2027 claims settled without payment during the three and six months ended MarchJune 31,30, 20262026, respectively, and 16 and 36 claims settled without payment during the three and six months ended June 30, 2025, respectively.

We paid 170183 and 95353 claims during the three and six months ended MarchJune 31,30, 20262026, 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.

Our claims severity was 88%89% and 69%88% for the three and six months ended MarchJune 31,30, 20262026, 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 MarchJune 31,30, 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.

Average reserve per default increased from MarchJune 31,30, 2025 to MarchJune 31,30, 2026, primarily due to changes in the composition of our default inventory as measured by the size, vintage and current estimated LTV of defaulted loans between the measurement dates. Average reserves per default were further impacted by changes in observed and forecasted housing market conditions and macroeconomic factors between the measurement dates.

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,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.

Available assets were $3.6$3.7 billion at MarchJune 31,30, 2026, compared to $3.2 billion at MarchJune 31,30, 2025. The $400$412 million increase in available 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 2025.2026.

Net risk-based required assets were $2.2$2.1 billion at MarchJune 31,30, 2026, compared to $1.9 billion at MarchJune 31,30, 2025. The $298$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, and was further impacted by the increase in our default inventory and defaulted RIF.amount.

Net premiums earned increased during the three and six months ended MarchJune 31,30, 2026 compared to the three and six months ended MarchJune 31,30, 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. 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.

Net investment income increased during the three and six months ended MarchJune 31,30, 2026 compared to the three and six months ended MarchJune 31,30, 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.

Insurance claims and claim expenses increased during the threesix months ended MarchJune 31,30, 2026 compared to the threesix months ended MarchJune 31,30, 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.

Underwriting and operating expenses increased during the three and six months ended MarchJune 31,30, 2026 compared to the three and six months ended MarchJune 31,30, 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.

Income tax expense decreasedincreased during the three and six months ended MarchJune 31,30, 2026 compared to the three and six months ended MarchJune 31,30, 2025 primarily due to aan declineincrease in our pre-tax income and a decrease in our effective tax rate.income. Our effective tax rate on pre-tax income was 20.5%22.8% and 21.7% for the three and six months ended MarchJune 31,30, 2026, respectively, compared to 21.9%22.2% and 22.1% for the three and six months ended MarchJune 31,30, 2025.2025, 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 MarchJune 31,30, 2026 and 2025 reflects the discrete tax effects of the vesting of RSUs, and our effective tax rate for the threesix months ended MarchJune 31,30, 2026 further reflects the exercise of options. See Item 1, “Financial Statements - Notes to Condensed Consolidated Financial Statements - Note 9, Income Taxes.”

Net incomeDiluted and adjusted netdiluted incomeEPS decreasedincreased during the three and six months ended MarchJune 31,30, 2026 compared to the three and six months ended MarchJune 31,30, 20252025, 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 incomeincome, offsetas bywell as a decline in the number of weighted average diluted shares outstanding tied to share repurchase activity.

Total cash and investments increased at MarchJune 31,30, 2026 compared to December 31, 2025 with the addition of incremental cash provided by operating activities, partially offset by share repurchase activity during the threesix months ended MarchJune 31,30, 20262026, 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 MarchJune 31,30, 2026 included $73.0$154.5 million held by NMIH.

Net deferred policy acquisition costs decreasedincreased at MarchJune 31,30, 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 six months ended June 30, 2026, largely offset by the recognition of previously deferred policy acquisition costs during the period.

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

Reinsurance recoverable increased at MarchJune 31,30, 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 threesix months ended MarchJune 31,30, 2026.

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

Unearned premiums decreased at MarchJune 31,30, 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 threesix months ended MarchJune 31,30, 2026, partially offset by single premium policy originations during the period.

Accounts payable and accrued expenses increaseddecreased at MarchJune 31,30, 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 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.

Reserve for insurance claims and claim expenses increased at MarchJune 31,30, 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 threesix months ended MarchJune 31,30, 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.

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

Net cash provided by operating activities increased during the threesix months ended MarchJune 31,30, 2026 compared to the threesix months ended MarchJune 31,30, 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.

Cash used in investing activities for the threesix months ended MarchJune 31,30, 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.

As of MarchJune 31,30, 2026, NMIH had $73.0$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 haspaid thea capacity to pay $101$101.0 million of aggregate ordinary dividendsdividend to NMIH duringon 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.

During the threesix months ended MarchJune 31,30, 2026, NMIH repurchased 0.71.5 million shares of common stock at a total cost of $27.7$59.1 million, excluding associated costsfees and applicable taxes. As of MarchJune 31,30, 2026, NMIH had $198.2$166.8 million of repurchase authority remaining.

Under the 2024 Revolving Credit Facility, NMIH is required to pay a quarterly commitment fee on the average daily undrawn amount of 0.175% to 0.525%, based on the applicable corporate credit rating at the time. As of MarchJune 31,30, 2026, the applicable commitment fee was 0.175%.

We are subject to certain covenants under the 2024 Revolving Credit Facility, including: a maximum debt-to-total capitalization ratio of 35%, a minimum consolidated net worth requirement (as defined therein), and a requirement to maintain compliance with the financial standards prescribed by the PMIERs (subject to any GSE approved waivers). We were in compliance with all covenants at MarchJune 31,30, 2026.

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 haspaid thea $101.0 million ordinary dividend to NMIH, representing its full ordinary dividend capacity topayable payunder $101Wisconsin millioninsurance oflaws aggregate ordinary dividends to NMIH duringfor the twelve-month period ending December 31, 2026.

The risk-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 FICOcredit 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.

As of MarchJune 31,30, 2026, NMIC had a RTC ratio of 13.312.9:1 with $45.0$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.

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 MarchJune 31,30, 2026, NMIC had $3.2 billion of cash and investments, including $37.1$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 MarchJune 31,30, 2026, NMIC generated $423$441 million of cash flow from operations and received an additional $577$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.

Our investment portfolio is comprised entirely of fixed maturity instruments. As of MarchJune 31,30, 2026, the fair value of our investment portfolio was $3.2$3.3 billion and we held an additional $70.7$72.1 million of cash and cash equivalents. Pre-tax book yield on the investment portfolio for the threesix months ended MarchJune 31,30, 2026 was 3.5%. Book yield is calculated as period-to-date net investment income divided by the average amortized cost of the investment portfolio. The yield on our investment portfolio is likely to change over time based on movements in interest rates, credit spreads, the duration or mix of our holdings and other factors.

We did not recognize an allowance for credit loss for any security in the investment portfolio as of MarchJune 31,30, 2026 or December 31, 2025, and we did not record any provision for credit loss for investment securities during the three and six months ended MarchJune 31,30, 2026 or 2025.