NMI (NMIH) Investor Day 2024 summary

Strategic outlook and future plans

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

• No plans to pursue market share targets or enter ancillary businesses unless strategically accretive; growth is driven by differentiated performance and embedded portfolio advantages.

• Positioned to capitalize on secular housing market trends, including supply-demand imbalances, demographic tailwinds, and increased persistency in a high-rate environment.

• Focus on delivering strong mid-teen returns, compounding book value per share, and building significant shareholder value across all market cycles.

• Capital return to shareholders prioritized through share repurchases, with potential for dividends as growth normalizes.

Financial guidance and performance

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

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

• Maintained the lowest expense base and ratio in the industry, with 229 employees and a 21.1% expense ratio.

• Book value per share (ex. AOCI) reached $28.71, with a three-year CAGR of 18%.

• $325 million share repurchase authorization, with $217 million repurchased to date, retiring 10% of shares outstanding.

Risk management and portfolio quality

• Industry-leading credit risk management framework with granular loan-level underwriting, proprietary Rate GPS® pricing, and comprehensive reinsurance covering 97% of risk in force.

• High-quality insured portfolio with low risk concentrations, broad geographic diversification, and default rates consistently below industry averages.

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

• Ongoing monitoring of macroeconomic indicators and internal metrics like early payment defaults and D30 rates to detect emerging risks.

• Conservative risk posture maintained, prioritizing stability and high returns over incremental risk-taking.