NMI Holdings Inc

NASDAQ:NMIH

Record quarter: National MI reported record total revenue of $187.9 million, adjusted net income of $106 million, and adjusted diluted EPS of $1.38, while returning 15.9% on equity.

Production growth: New insurance written was $16 billion and primary insurance in force reached a record $227.1 billion, showing continued growth in the insured book.

Credit remains strong: Management said housing and labor market conditions remain constructive, with no signs of strain in the current portfolio and no notable new issues in the market.

Capital returns: The company repurchased $31.4 million of stock in the quarter and still has $167 million of repurchase capacity remaining.

Outlook: Management expects defaults to trend higher from here due to seasonality and normal portfolio seasoning, but said the book remains high quality and credit trends are still favorable.

Reinsurance strategy: Aurora Swithenbank said the company has recently leaned more toward traditional reinsurance because it offers flexibility, speed, and forward-flow coverage, though the company still wants access to the ILN market.