NMI Holdings, Inc. Reports First Quarter 2017 Financial

EMERYVILLE, CA--(Marketwired - May 04, 2017) - NMI Holdings, Inc. (NASDAQ: NMIH) today reported net income of $5.5 million, or $0.09 per share, for the first quarter ended Mar. 31, 2017. Results for the quarter include fees and expenses of approximately $1.6 million related to repricing and extension of the company's Term Loan and the previously announced issuance of Insurance-Linked Notes. The company reported a net loss of $3.9 million, or $0.07 per share, in the first quarter of 2016.

Bradley Shuster, chairman and CEO of National MI, said, "We had another great quarter at National MI, achieving new records in the important metrics of insurance in force, premiums earned, master policies and customers generating NIW. Also, subsequent to the end of the quarter, we executed an Insurance-Linked Notes transaction that enhances National MI's financial strength by providing a layer of protection against adverse losses, while at the same time providing expected additional writing capacity under PMIERs of approximately $200 million. Our estimated after-tax cost of this coverage and capital relief is approximately three percent."

As of March 31, 2017, the company had primary insurance-in-force of $34.8 billion, up 8% from $32.2 billion at the prior quarter end and up 87% over $18.6 billion as of March 31, 2016.

Premiums earned for the quarter were $33.2 million, including $2.5 million attributable to cancellation of single premium policies, which compares with $32.8 million, including $5.1 million related to cancellations, in the prior quarter. Premiums earned in the first quarter of 2017 were up 68% over premium revenue of $19.8 million in the same quarter a year ago, which included $2.3 million related to cancellations.

NIW mix was 81% monthly premium product, which compares with 75% in the prior quarter and 59% in the first quarter of 2016.

Total underwriting and operating expenses in the first quarter were $26.0 million, including share-based compensation expense of $1.9 million. Expense in the quarter includes fees and expenses of approximately $1.6 million related to repricing and extension of the company's Term Loan and the previously announced issuance of Insurance-Linked Notes. This compares with total underwriting and operating expenses of $23.3 million, including $1.9 million of share-based compensation, in the prior quarter, and $22.7 million, including $1.4 million of share-based compensation, in the same quarter a year ago.

Loss expense for the quarter was $0.6 million, resulting in a loss ratio of 2%.

At quarter-end, cash and investments were $671 million, including $59 million at the holding company, and book equity was $484 million, equal to $8.09 per share.

At quarter-end, the company had total PMIERs available assets of $467 million, which compares with risk- based required assets under PMIERs of $399 million.


		Quarter		Quarter		Quarter		Growth		Growth
		Ended		Ended		Ended		Q/Q		Y/Y
		3/31/2017		12/31/2016 ⁽¹⁾		3/31/2016
Primary Insurance-in-Force ($billions)		34.78		32.17		18.56		8	%	87	%
New Insurance Written - NIW ($billions)
	Monthly premium	2.89		3.9		2.49		-26	%	16	%
	Single premium	0.67		1.34		1.76		-50	%	-62	%
	Total	3.56		5.24		4.25		-32	%	-16	%
Premiums Earned ($millions)		33.23		32.83		19.81		1	%	68	%
Underwriting & Operating Expense ($millions)		25.99		23.28		22.67		12	%	15	%
Loss Expense ($millions)		0.64		0.80		0.46		-20	%	39	%
Loss Ratio		2	%	2	%	2	%
Cash & Investments ($millions)		671		677		630		-1	%	7	%
Book Equity ($millions)		484		476		410		2	%	18	%
Book Value per Share		8.09		8.04		6.94		1	%	17	%
Approved Master Policies		1,174		1,131		1,023		4	%	15	%
Customers Generating NIW		537		532		469		1	%	14	%

⁽¹⁾ The 2016 prior period balance sheet has been revised. Please refer to our Form 10-Q for the quarter ended March 31, 2017 for further details.

Conference Call and Webcast Details
The company will hold a conference call and live webcast today at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time. The webcast will be available on the company's website, www.nationalmi.com, in the "Investor Relations" section. The call also can be accessed by dialing (888) 734-0328 in the U.S., or (914) 495-8578 for international callers using Conference ID: 3499361, or by referencing NMI Holdings, Inc.

About National MI
National Mortgage Insurance Corporation (National MI), a subsidiary of NMI Holdings, Inc. (NASDAQ: NMIH), is a U.S.-based, private mortgage insurance company enabling low down payment borrowers to realize home ownership while protecting lenders and investors against losses related to a borrower's default. To learn more, please visit www.nationalmi.com.

Cautionary Note Regarding Forward-Looking Statements
Certain statements contained in this press release or any other written or oral statements made by or on behalf of the Company in connection therewith may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (Securities Act), Section 21E of the Securities Exchange Act of 1934, as amended (Exchange Act), and the U.S. Private Securities Litigation Reform Act of 1995 (PSLRA). The PSLRA provides a "safe harbor" for any forward-looking statements. All statements other than statements of historical fact included in or incorporated by reference in this release are forward-looking statements, including any statements about our expectations, outlook, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance. These statements are often, but not always, made through the use of words or phrases such as "anticipate," "believe," "can," "could," "may," "predict," "assume," "potential," "should," "will," "estimate," "plan," "project," "continuing," "ongoing," "expect," "intend" and similar words or phrases. All forward-looking statements are only predictions and involve estimates, known and unknown risks, assumptions and uncertainties that may turn out to be inaccurate and could cause actual results to differ materially from those expressed in them. Many risks and uncertainties are inherent in our industry and markets. Others are more specific to our business and operations. Important factors that could cause actual events or results to differ materially from those indicated in such statements include, but are not limited to: our ability to implement our business strategy, including our ability to attract and retain a diverse customer base and to achieve a diversified mix of business across the spectrum of our product offerings; changes in the business practices of the GSEs that may impact the use of private mortgage insurance; our ongoing ability to comply with the financial requirements of the PMIERs; our ability to maintain sufficient holding company liquidity to meet our short- and long-term liquidity needs; our ability to successfully execute and implement our capital plans, including our ability to access the reinsurance market and to enter into, and receive approval of, reinsurance arrangements on terms and conditions that are acceptable to us, the GSEs and our regulators; heightened competition for our mortgage insurance business from other private mortgage insurers and the FHA; adoption of new or changes to existing laws and regulations that impact the mortgage insurance industry or their enforcement and implementation by regulators; changes to the GSEs' role in the secondary mortgage market or other changes that could affect the residential mortgage industry generally or mortgage insurance in particular; our implementation of complex infrastructure, systems, procedures and internal controls to support our business and regulatory and reporting requirements; potential future lawsuits, investigations or inquiries or resolution of current lawsuits or inquiries; emergence of unexpected claims and coverage issues, including claims exceeding our reserves or amounts we expected to experience; our ability to utilize our net operating loss carry forwards, which could be limited or eliminated in various ways, including if we experience an ownership change as defined in Section 382 of the Internal Revenue Code; and general economic downturns and volatility. These risks and uncertainties also include, but are not limited to, those set forth under the heading "Risk Factors" detailed in Item 1A of Part I of our Annual Report on Form 10-K for the year ended December 31, 2016, as subsequently updated through other reports we file with the SEC. All subsequent written and oral forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. We caution you not to place undue reliance on any forward-looking statement, which speaks only as of the date on which it is made, and we undertake no obligation to publicly update or revise any forward-looking statement to reflect new information, future events or circumstances that occur after the date on which the statement is made or to reflect the occurrence of unanticipated events except as required by law.

Investor Contact
John M. Swenson
Vice President, Investor Relations and Treasury
john.swenson@nationalmi.com
(510) 788-8417

Press Contact
Mary McGarity
Strategic Vantage Mortgage Public Relations
(203) 513-2721
MaryMcGarity@StrategicVantage.com


Consolidated statements of operations and comprehensive income		For the three months ended March 31,
		2017			2016
Revenues		(In Thousands, except for share data)
	Net premiums earned	$	33,225		$	19,807
	Net investment income		3,807			3,231
	Net realized investment gains (losses)		(58	)		(885	)
	Other revenues		80			32
Total revenues			37,054			22,185
Expenses
	Insurance claims and claims expenses		635			458
	Underwriting and operating expenses		25,989			22,672
Total expenses			26,624			23,130
Other (expense) income

	(Loss) gain from change in fair value of warrant liability		(196	)		670
	Interest expense		(3,494	)		(3,632	)
Total other (expense)			(3,690	)		(2,962	)

Income (loss) before income taxes			6,740			(3,907	)
	Income tax expense		1,248			-
Net income (loss)		$	5,492		$	(3,907	)

Earnings (loss) per share
	Basic	$	0.09		$	(0.07	)
	Diluted	$	0.09		$	(0.07	)

Weighted average common shares outstanding
Basic			59,183,973			58,936,694
Diluted			62,338,856			58,936,694
Loss Ratio⁽¹⁾			2	%		2	%
Expense Ratio⁽²⁾			78			114
Combined ratio			80	%		117	%

Net income (loss)		$	5,492		$	(3,907	)
Other comprehensive (loss) income, net of tax:
	Net unrealized gains in accumulated other comprehensive income, net of tax expense of $664 and $0 for the quarters ended March 31, 2017 and March 31, 2016, respectively		1,175			9,101

	Reclassification adjustment for losses included in net loss (gain), net of tax expense of $0 for the quarters ended March 31, 2017 and 2016		58			885
Other comprehensive (loss) income, net of tax			1,233			9,986
Comprehensive income		$	6,725		$	6,079

⁽¹⁾ Loss ratio is calculated by dividing the provision for insurance claims and claims expenses by net premiums earned.

⁽²⁾ Expense ratio is calculated by dividing other underwriting and operating expenses by net premiums earned.


Consolidated balance sheets		March 31, 2017			December 31, 2016 ⁽¹⁾
Assets		(In Thousands, except for share data)
	Fixed maturities, available-for-sale, at fair value (amortized cost of $658,463 and
	$630,688 as of March 31, 2017 and December 31, 2016, respectively)	$	658,640		$	628,969
	Cash and cash equivalents		12,543			47,746
	Premiums receivable		15,566			13,728
	Accrued investment income		3,900			3,421
	Prepaid expenses		2,935			1,991
	Deferred policy acquisition costs, net		32,165			30,109
	Software and equipment, net		21,168			20,402
	Intangible assets and goodwill		3,634			3,634
	Prepaid reinsurance premiums		38,348			37,921
	Deferred tax asset, net		50,529			51,434
	Other assets		734			542
Total assets		$	840,162		$	839,897

Liabilities
	Term loan	$	144,010		$	144,353
	Unearned premiums		154,711			152,906
	Accounts payable and accrued expenses		14,175			25,297
	Reserve for insurance claims and claim expenses		3,761			3,001
	Reinsurance funds withheld		31,243			30,633
	Deferred ceding commission		4,790			4,831
	Warrant liability, at fair value		3,563			3,367
	Deferred tax liability, net		-			-
Total liabilities			356,253			364,388
Commitments and contingencies

Shareholders' equity
	Common stock - class A shares, $0.01 par value; 59,783,358 and 59,145,161 shares issued and outstanding as of March 31, 2017 and December 31, 2016, respectively (250,000,000 shares authorized)		598			591
	Additional paid-in capital		578,081			576,927
	Accumulated other comprehensive loss, net of tax		(4,054	)		(5,287	)
	Accumulated deficit		(90,716	)		(96,722	)
Total shareholders' equity			483,909			475,509
Total liabilities and shareholders' equity		$	840,162		$	839,897

⁽¹⁾ The 2016 prior period balance sheet has been revised. Please refer to our Form 10-Q for the quarter ended March 31, 2017 for further details.


Historical Quarterly Data		2017			2016												2015
		March 31			December 31, ⁽⁴⁾			September 30			June 30			March 31			December 31
Revenues		(In Thousands, except for share data)
	Net premiums earned	$	33,225		$	32,825		$	31,808		$	26,041		$	19,807		$	16,880
	Net investment income		3,807			3,634			3,544			3,342			3,231			2,078

	Net realized investment (losses) gains		(58	)		65			66			61			(885	)		(121	)
	Other revenues		80			105			102			37			32			25
Total revenues			37,054			36,629			35,520			29,481			22,185			18,862
Expenses
	Insurance claims and claims expenses		635			800			664			470			458			371
	Underwriting and operating expenses		25,989			23,281			24,037			23,234			22,672			21,686
Total expenses			26,624			24,081			24,701			23,704			23,130			22,057

Other (expense) income ⁽¹⁾			(3,690	)		(5,490	)		(4,530	)		(3,766	)		(2,962	)		(1,626	)

Income (loss) before income taxes			6,740			7,058			6,289			2,011			(3,907	)		(4,821	)
	Income tax expense (benefit)		1,248			(52,664	)		114			-			-			-
Net income (loss)		$	5,492		$	59,722		$	6,175		$	2,011		$	(3,907	)	$	(4,821	)

Earnings (loss) per share
	Basic	$	0.09		$	1.01		$	0.10		$	0.03		$	(0.07	)	$	(0.08	)
	Diluted	$	0.09		$	0.98		$	0.10			0.03			(0.07	)		(0.08	)

Weighted average common shares
outstanding
Basic			59,183,973			59,140,011			59,130,401			59,105,613			58,936,694			58,781,566
Diluted			62,338,856			61,229,338			60,284,746			59,830,899			58,936,694			58,781,566

Other data
Loss Ratio ⁽²⁾			2	%		2	%		2	%		2	%		2	%		2	%
Expense Ratio ⁽³⁾			78	%		71	%		76	%		89	%		114	%		128	%
Combined ratio			80	%		73	%		78	%		91	%		117	%		131	%

⁽¹⁾ Other (expense) income includes the gain from change in fair value of warrant liability, gain from settlement of warrants, and interest expense.

⁽²⁾ Loss ratio is calculated by dividing the provision for insurance claims and claims expenses by net premiums earned.

⁽³⁾ Expense ratio is calculated by dividing other underwriting and operating expenses by net premiums earned.

⁽⁴⁾ The Q4 2016 quarterly data has been revised. Please refer to our Form 10-Q for the quarter ended March 31, 2017 for further details.

New Insurance Written (NIW), Insurance in Force (IIF) and Premiums

The tables below show primary and pool NIW and IIF, by quarter, for the last six quarters.


Primary NIW	Three months ended
	March 31,		December 31,		September 30,		June 30,		March 31,		December 31,
	2017		2016		2016		2016		2016		2015
					(In Millions)
Monthly	$	2,892	$	3,904	$	4,162	$	3,700	$	2,492	$	2,029
Single		667		1,336		1,695		2,138		1,762		2,518
Primary	$	3,559	$	5,240	$	5,857	$	5,838	$	4,254	$	4,547


Primary and pool IIF	As of
	March 31,		December 31,		September 30,		June 30,		March 31,		December 31,
	2017		2016		2016		2016		2016		2015
					(In Millions)
Monthly	$	21,511	$	19,205	$	16,038	$	12,529	$	9,210	$	6,958
Single		13,268		12,963		12,190		11,095		9,354		7,866
Primary		34,779		32,168		28,228		23,624		18,564		14,824

Pool		3,545		3,650		3,826		3,999		4,136		4,238
Total	$	38,324	$	35,818	$	32,054	$	27,623	$	22,700	$	19,062

Portfolio Statistics

The table below shows primary portfolio trends, by quarter, for the last six quarters.


Primary portfolio trends	As of and for the quarter ended
	March 31,			December 31,			September 30,			June 30,			March 31,			December 31,
	2017			2016			2016			2016			2016			2015
	($ Values In Millions)
New insurance written	$	3,559		$	5,240		$	5,857		$	5,838		$	4,254		$	4,547
New risk written		868			1,244			1,415			1,411			1,016			1,105
Insurance in force ⁽¹⁾		34,779			32,168			28,228			23,624			18,564			14,824
Risk in force ⁽¹⁾		8,444			7,790			6,847			5,721			4,487			3,586
Policies in force (count) ⁽¹⁾		145,632			134,662			119,002			100,547			79,700			63,948
Weighted-average coverage ⁽²⁾		24.3	%		24.2	%		24.3	%		24.2	%		24.2	%		24.2	%
Loans in default (count)		207			179			115			79			55			36
Percentage of loans in default		0.1	%		0.1	%		0.1	%		0.1	%		0.1	%		0.1	%

Risk in force on defaulted loans	$	12		$	10		$	6		$	4		$	3		$	2
Average premium yield ⁽³⁾		0.40	%		0.44	%		0.48	%		0.47	%		0.45	%		0.49	%
Earnings from cancellations	$	2.5		$	5.1		$	5.8		$	3.5		$	2.3		$	1.4
Annual persistency ⁽⁴⁾		81.3	%		80.7	%		81.8	%		83.3	%		82.7	%		79.6	%
Quarterly persistency ⁽⁵⁾		88.2	%		81.6	%		78.8	%		83.2	%		86.1	%		87.8	%

(1) Reported as of the end of the period.

(2) End of period risk in force (RIF) divided by IIF.

(3) Average premium yield is calculated by dividing net primary and pool premiums earned, net of reinsurance, by average gross IIF for the period, annualized.

(4) Defined as the percentage of IIF that remains on our books after any 12-month period.

(5) Defined as the percentage of IIF that remains on our books after any 3-month period, annualized.

The tables below reflect our total primary NIW by FICO, loan-to-value (LTV), and purchase/refinance mix.


Primary NIW by FICO		Three months ended
		March 31, 2017		December 31, 2016		March 31, 2016
				(In Millions)
	>= 760	$	1,683	$	2,566	$	2,283
	740-759		551		846		712
	720-739		456		647		473
	700-719		396		560		411
	680-699		264		375		245
	<=679		209		246		130
Total		$	3,559	$	5,240	$	4,254


Primary NIW by LTV		Three months ended
		March 31, 2017		December 31, 2016		March 31, 2016
					(In Millions)
	95.01% and above	$	274	$	355	$	209
	90.01% to 95.00%		1,612		2,224		1,816
	85.01% to 90.00%		1,101		1,580		1,420
	85.00% and below		572		1,081		809
Total		$	3,559	$	5,240	$	4,254


Primary NIW by purchase/refinance mix		Three months ended
		March 31, 2017		December 31, 2016		March 31, 2016
					(In Millions)
	Purchase	$	2,984	$	3,776	$	2,919
	Refinance		575		1,464		1,335
Total		$	3,559	$	5,240	$	4,254

The tables below show the primary weighted average FICO and the weighted average LTV, by policy type, for NIW in the quarters presented.


Weighted Average FICO
	March 31, 2017		December 31, 2016		March 31, 2016
Monthly	745		746		753
Single	764		764		759


Weighted Average LTV
	March 31, 2017		December 31, 2016		March 31, 2016
Monthly	92	%	92	%	92	%
Single	91		90		91

The table below reflects a summary of our primary IIF and RIF by book year.


Primary IIF and RIF	As of March 31, 2017
	IIF		RIF
	(In Millions)
March 31, 2017	$	3,544	$	865
2016		19,774		4,756
2015		9,681		2,384
2014		1,735		428
2013		45		11
Total	$	34,779	$	8,444

The tables below reflect our total primary IIF and RIF by FICO, average loan size, LTV, and loan type.

Primary IIF by FICO				As of
		March 31, 2017		December 31, 2016		March 31, 2016
		(In Millions)
	>= 760	$	17,408	$	16,166	$	9,146
	740-759		5,658		5,248		3,045
	720-739		4,460		4,130		2,515
	700-719		3,533		3,245		1,877
	680-699		2,336		2,151		1,305
	<=679		1,384		1,228		676
Total		$	34,779	$	32,168	$	18,564


Primary RIF by FICO					As of
			March 31, 2017		December 31, 2016		March 31, 2016
		(In Millions)
	>= 760	$	4,253	$	3,934	$	2,206
	740-759		1,383		1,281		747
	720-739		1,081		1,000		614
	700-719		851		782		453
	680-699		556		511		312
	<=679		320		282		155
Total		$	8,444	$	7,790	$	4,487


Primary Average Loan Size by FICO					As of
			March 31, 2017		December 31, 2016		March 31, 2016
		(In Thousands)
	>= 760	$	250	$	250	$	247
	740-759		241		241		237
	720-739		235		235		232
	700-719		233		233		229
	680-699		224		224		220
	<=679		210		210		206


Primary IIF by LTV				As of
		March 31, 2017		December 31, 2016		March 31, 2016
		(In Millions)
	95.01% and above	$	1,931	$	1,686	$	699
	90.01% to 95.00%		15,601		14,358		8,220
	85.01% to 90.00%		11,058		10,282		6,326
	85.00% and below		6,189		5,842		3,319
Total		$	34,779	$	32,168	$	18,564


Primary RIF by LTV				As of
		March 31, 2017		December 31, 2016		March 31, 2016
		(In Millions)
	95.01% and above	$	533	$	467	$	196
	90.01% to 95.00%		4,585		4,226		2,423
	85.01% to 90.00%		2,626		2,439		1,498
	85.00% and below		700		658		370
Total		$	8,444	$	7,790	$	4,487


Primary RIF by Loan Type				As of
		March 31, 2017		December 31, 2016		March 31, 2016

Fixed			99%		99%		98%
Adjustable rate mortgages:
	Less than five years		-		-		-
	Five years and longer		1		1		2
Total			100%		100%		100%

As of March 31, 2017 and March 31, 2016, 100% of each of our pool IIF and RIF was comprised of insurance on fixed rate mortgages.

The table below reflects a summary of the change in total primary IIF for the following periods.


Primary IIF					Three months ended
		March 31, 2017			December 31, 2016			March 31, 2016
		(In Millions)
IIF, beginning of period		$	32,168		$	28,228		$	14,824
	NIW		3,559			5,240			4,254
	Cancellations and other reductions		(948	)		(1,300	)		(514	)
IIF, end of period		$	34,779		$	32,168		$	18,564

Geographic Dispersion

The following table shows the distribution by state of our primary RIF.


Top 10 primary RIF by state			As of
	March 31, 2017		December 31, 2016		March 31, 2016
California	13.8	%	13.6	%	13.2	%
Texas	7.2		7.0		6.8
Virginia	6.3		6.5		5.8
Florida	4.4		4.5		5.3
Arizona	4.1		3.9		3.8
Colorado	3.9		3.9		4.1
Maryland	3.7		3.7		3.1
Michigan	3.7		3.7		4.3
Utah	3.6		3.7		3.6
Pennsylvania	3.6		3.6		3.6
Total	54.3	%	54.1	%	53.6	%

The following table shows portfolio data by origination year.


	As of March 31, 2017
Origination year	Original Insurance Written		Remaining Insurance in Force		% Remaining of Original Insurance		Policies Ever in Force	Number of Policies in Force	Number of Loans in Default	# of Claims Paid	Incurred Loss Ratio (Inception to Date) ⁽¹⁾		Cumulative default rate ⁽²⁾
							($ Values in Millions)
2013	$	162	$	45	28	%	655	224	-	1	0.2	%	0.2	%
2014		3,451		1,735	50	%	14,786	8,527	47	5	2.7	%	0.4	%
2015		12,422		9,681	78	%	52,548	43,414	114	9	2.5	%	0.2	%
2016		21,188		19,774	93	%	83,628	79,595	46	-	0.9	%	0.1	%
2017	$	3,559	$	3,544	100	%	13,926	13,872	-	-	-	%	-	%
Total	$	40,782	$	34,779			165,543	145,632	207	15

⁽¹⁾ The ratio of losses incurred (paid and reserved) divided by cumulative premiums earned, net of reinsurance.

⁽²⁾ The sum of claims paid ever to date and notices of default as of the end of the period divided by policies ever in force.

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


			For the three months ended
			March 31, 2017			March 31, 2016
			(In Thousands)
Beginning balance			$	3,001		$	679
Less reinsurance recoverables ⁽¹⁾				(297	)		-
Beginning balance, net of reinsurance recoverables				2,704			679

Add claims incurred:
	Claims and claim expenses incurred:
		Current year ⁽²⁾		955			553
		Prior years ⁽³⁾		(320	)		(95	)
Total claims and claims expenses incurred				635			458

Less claims paid:
	Claims and claim expenses paid:
		Current year ⁽²⁾		-			-
		Prior years ⁽³⁾		142			-
Total claims and claim expenses paid				142			-

Reserve at end of period, net of reinsurance recoverables				3,197			1,137
Add reinsurance recoverables ⁽¹⁾				564			-
Balance, March 31			$	3,761		$	1,137

⁽¹⁾ Related to ceded losses recoverable on our 2016 quota-share reinsurance transaction. To date, ceded losses have been immaterial.

⁽²⁾ Related to defaults occurring in the current year.

⁽³⁾ Related to defaults occurring in prior years.

The following table provides a reconciliation of the beginning and ending count of loans in default.


	For the three months ended
	March 31, 2017		March 31, 2016
Beginning default inventory	179		36
Plus: new defaults	124		39
Less: cures	(92	)	(20	)
Less: claims paid	(4	)	-
Ending default inventory	207		55

The following tables provide details of our claims and reserves.


	For the three months ended

	March 31, 2017			March 31, 2016
	($ Values In Thousands)
Number of claims paid		4			-
Total amount paid for claims	$	42		$	-
Average amount paid per claim	$	35		$	-
Severity		88	%		-	%


Average reserve per default:	As of March 31, 2017		As of March 31, 2016
	(In Thousands)
Case	$	16	$	19
IBNR		2		2
Total	$	18	$	21

The following table provides a comparison of the PMIERs financial requirements as reported by National MI.


				As of
	March 31, 2017			December 31, 2016			March 31, 2016
	(In thousands)
Available Assets	$	466,982		$	453,523		$	434,138
Net Risk-Based Required Assets		398,859			366,584			302,852

Asset charge % ⁽¹⁾		6.14	%		6.15	%		6.12	%

⁽¹⁾ Asset charge represents the risk based required asset amount as defined in the PMIERs, divided by the outstanding RIF on performing primary loans.

Contact Information:

Investor Contact
John M. Swenson
Vice President, Investor Relations and Treasury
john.swenson@nationalmi.com
(510) 788-8417

Press Contact
Mary McGarity
Strategic Vantage Mortgage Public Relations
(203) 513-2721
MaryMcGarity@StrategicVantage.com

NMI Holdings, Inc. Reports First Quarter 2017 Financial Results