NMI Holdings, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>NMI Holdings, Inc. has filed its annual 10-K report for the fiscal year ended December 31, 2023.</b>

AI Summary

NMI Holdings, Inc. (NMIH) filed a Annual Report (10-K) with the SEC on February 15, 2024. NMI Holdings, Inc. filed its 2023 Form 10-K on February 15, 2024. The filing covers the fiscal year ending December 31, 2023. The company's principal business is surety insurance. NMI Holdings, Inc. is incorporated in California. The company's business address is 2100 Powell Street, 12th Floor, Emeryville, CA 94608.

Why It Matters

For investors and stakeholders tracking NMI Holdings, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of NMI Holdings, Inc.'s financial performance, risk factors, and business operations for the fiscal year 2023, crucial for investors to assess the company's health and future prospects. The detailed financial statements and disclosures within the 10-K are essential for understanding the company's financial position, profitability, and any potential risks or opportunities it faces in the surety insurance market.

Risk Assessment

Risk Level: low — NMI Holdings, Inc. shows low risk based on this filing. The filing is a standard annual report (10-K) and does not contain immediate red flags or significant negative developments, indicating a routine disclosure.

Analyst Insight

Review the detailed financial statements and risk factors in the 10-K to understand NMI Holdings, Inc.'s performance and strategic positioning in the surety insurance market.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-02-15 — Filing Date (Date of submission)
• 6351 — SIC Code (Industry classification)
• CA — State of Incorporation (Legal domicile)

Key Players & Entities

• NMI Holdings, Inc. (company) — Filer name
• 2023 (date) — Fiscal year end
• February 15, 2024 (date) — Filing date
• December 31, 2023 (date) — Fiscal year end
• CA (location) — State of incorporation
• Emeryville (location) — Business address city
• 2100 Powell Street, 12th Floor (address) — Business address
• SURETY INSURANCE (industry) — Standard Industrial Classification

FAQ

Risk Factors

• Geographic Concentration Risk [medium — market]: The company faces risks related to geographic concentration of its insurance business, as indicated by its operations in California.

Industry Context

NMI Holdings, Inc. operates in the surety insurance industry, which involves guaranteeing the performance of contracts and obligations.

Regulatory Implications

The filing is made under the Securities Exchange Act of 1934, requiring public companies to disclose material information about their business and financial condition.

What Investors Should Do

1. Analyze the financial statements within the 10-K for revenue, net income, and balance sheet details.
2. Examine the risk factors section for specific threats to NMI Holdings, Inc.'s operations, particularly geographic concentration.
3. Review any management discussion and analysis (MD&A) to understand the company's performance drivers and outlook.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-02-15: Filing Date — Date NMI Holdings, Inc. submitted its 10-K filing.

Year-Over-Year Comparison

This is the initial filing analyzed, so no comparison to a previous filing is available.

Key Financial Figures

• $0.01 — The number of shares of common stock, $0.01 par value per share, of the registrant
• $197.0 billion — enders. As of December 31, 2023, we had $197.0 billion of primary insurance-in-force (IIF) and
• $51.8 billion — of primary insurance-in-force (IIF) and $51.8 billion of primary risk-in-force (RIF). For the
• $40.5 billion — enerated new insurance written (NIW) of $40.5 billion. As of December 31, 2023, we had 238 fu
• $13 — argest in the world, with approximately $13 trillion of mortgage debt outstanding a

Filing Documents

• nmih-20231231.htm (10-K) — 3101KB
• a2014amendedandrestatedpla.htm (EX-10.1) — 164KB
• ex1020ye2023rsuawardagreem.htm (EX-10.20) — 34KB
• ex1022ye2023rsuawardagreem.htm (EX-10.22) — 39KB
• ex1023ye2023rsuawardagreem.htm (EX-10.23) — 39KB
• ex1024ye2023rsuawardagreem.htm (EX-10.24) — 54KB
• exh22110kye2023.htm (EX-22.1) — 3KB
• exhibit231ye2023bdoconsent.htm (EX-23.1) — 2KB
• ex31110kye2023.htm (EX-31.1) — 11KB
• ex31210kye2023.htm (EX-31.2) — 11KB
• ex32110kye2023.htm (EX-32.1) — 8KB
• ex971ye2023compensationrec.htm (EX-97.1) — 32KB
• nmih-20231231_g1.jpg (GRAPHIC) — 25KB
• 0001547903-24-000035.txt (&nbsp;) — 14114KB
• nmih-20231231.xsd (EX-101.SCH) — 77KB
• nmih-20231231_cal.xml (EX-101.CAL) — 121KB
• nmih-20231231_def.xml (EX-101.DEF) — 452KB
• nmih-20231231_lab.xml (EX-101.LAB) — 936KB
• nmih-20231231_pre.xml (EX-101.PRE) — 676KB
• nmih-20231231_htm.xml (XML) — 2233KB

Business

Item 1. Business 5

Risk Factors

Item 1A. Risk Factors 30

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 53 Item 1C. Cybersecurity 53

Properties

Item 2. Properties 53

Legal Proceedings

Item 3. Legal Proceedings 54

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 54

55

PART II 55

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 55

[Reserved]

Item 6. [Reserved] 56

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 57

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 87

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 88

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 124

Controls and Procedures

Item 9A. Controls and Procedures 124

Other Information

Item 9B. Other Information 126

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections. 126

127

PART III 127

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 127

Executive Compensation

Item 11. Executive Compensation 127

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 127

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 127

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 127

128

PART IV 128

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules 128

Form 10-K Summary

Item 16. Form 10-K Summary 131

Signatures

Signatures 132 Index to Financial Statement Schedules 133 2 CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This report contains 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. Any statements about our expectations, outlook, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. 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," "perceive," "plan," "project," "continuing," "ongoing," "expect," "intend" or words of similar meaning and include, but are not limited to, statements regarding the outlook for our future business and financial performance. All forward-looking statements are necessarily only estimates of future results, and actual results may differ materially from expectations. You are, therefore, cautioned not to place undue reliance on such statements, which should be read in conjunction with the other cautionary statements that are included elsewhere in this report. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events. We have based these forward-looking statements on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, operating results, business strategy and financial needs. There are important factors that could cause our actual results, level of activity, per

Business

Item 1. Business General We provide mortgage insurance (referred to as mortgage insurance or MI) through our wholly-owned insurance subsidiaries, National Mortgage Insurance Corporation (NMIC) and National Mortgage Reinsurance Inc One (Re One). NMIC and Re One are domiciled in Wisconsin and principally regulated by the Wisconsin Office of the Commissioner of Insurance (Wisconsin OCI). NMIC is our primary insurance subsidiary, and is approved as an MI provider by the GSEs and is licensed to write MI coverage in all 50 states and D.C. Our subsidiary, NMI Services, Inc. (NMIS), provides outsourced loan review services to mortgage loan originators and our subsidiary, Re One, historically provided reinsurance coverage to NMIC in accordance with certain statutory risk retention requirements. Such requirements have been repealed and the reinsurance coverage provided by Re One to NMIC has been commuted. Re One remains a wholly-owned, licensed insurance subsidiary; however, it does not currently have active insurance exposures. MI protects lenders and investors from default-related losses on a portion of the unpaid principal balance of a covered mortgage. MI plays a critical role in the U.S. housing market by mitigating mortgage credit risk and facilitating the secondary market sale of high loan-to-value (LTV) ( i.e., above 80%) residential loans to the GSEs, who are otherwise restricted by their charters from purchasing or guaranteeing high-LTV mortgages that are not covered by certain credit protections. Such credit protection and secondary market sales allow lenders to increase their capacity for mortgage commitments and expand financing access to existing and prospective homeowners. NMI Holdings, Inc. (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 diversif