NMI (NMIH) Investor Day 2024 summary

Strategic outlook and market positioning

• Differentiated strategy leverages culture, customer focus, and innovation to drive long-term growth, value, and returns for shareholders, with continued investment in people, technology, and customer relationships.

• Emphasis on maintaining a high-quality, high-performing insured portfolio through disciplined risk management and proprietary pricing tools like Rate GPS.

• Positioned to capitalize on secular housing market trends, demographic tailwinds, and housing market resiliency, supporting sustained new business opportunity and increased persistency in a high-rate environment.

• No plans to pursue ancillary businesses unless strategically accretive; capital return to shareholders remains a priority, primarily through share repurchases.

• Long-term opportunity to deliver mid-teen ROEs and compound book value per share, supported by a robust balance sheet and efficient capital management.

Financial performance and guidance

• Achieved record results: $207.5 billion insurance in-force, $362.9 million adjusted net income, and 18.2% adjusted ROE for LTM Q3'24.

• Maintained a low expense ratio (20-21.1%) and delivered 18% compound growth in book value per share over three years.

• Five-year insured portfolio growth rate of 18%, with persistency at 85.5% and default rates less than half the industry average.

• $2.7 billion in total capital, a $1.3 billion PMIERs funding buffer, and 97% of risk in force covered by reinsurance.

• Over $200 million returned to shareholders since 2022 via share repurchases, with $108 million remaining on current authorization and $325 million authorized in total.

Risk management and portfolio quality

• Industry-leading credit risk management framework, including individual underwriting, granular pricing, and proprietary Rate GPS® pricing system.

• High-quality insured portfolio with low risk concentrations, broad geographic diversification, and 8% of RIF with FICO <680 and 20% with 97% LTV.

• Default rates consistently below industry averages, with a current default rate of 0.87% versus 2.2% for peers.

• 97% of the insured portfolio covered by comprehensive reinsurance, including quota share, excess-of-loss, and insurance-linked notes.

• Strong balance sheet with $2.7 billion equity, 15% debt leverage, and PMIERS sufficiency at 173% as of 9/30/24.