NMI Holdings Inc.: NMI Holdings, Inc. Reports Fourth Quarter Net Income of $61.6 Million

Tickers: NMIH
February 15, 2017

EMERYVILLE, CA -- (Marketwired) -- 02/15/17 --

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NMI Holdings, Inc.(NASDAQ: NMIH)today reported net income of $61.6 million, or $1.01 per share, for the fourth quarter ended Dec. 31, 2016. Results for the quarter include a tax benefit of $54.5 million resulting from reversal of the valuation allowance on the company's deferred tax asset and a charge of $1.7 million related to the change in fair value of outstanding warrants as a result of the company's higher stock price at Dec. 31, 2016. The company reported net income of $6.2 million, or $0.10 per share, in the prior quarter and a net loss of ($4.8) million, or ($0.08) per share, in the fourth quarter of 2015.

Bradley Shuster, chairman and CEO of National MI, said, 'We are proud of our performance in the fourth quarter and for the full year. In 2016 we achieved profitability, more than doubled insurance in force and premiums earned, negotiated a reinsurance treaty to support our growth, and solidified our position as a strong, returns-oriented mortgage insurance provider. We are excited about our growing operating leverage and returns profile, realizing the business model we envisioned at our founding. We want to thank our customers and employees, as well as business partners, lenders and shareholders for making it possible.'

Shuster added, 'Looking ahead, we believe 2017 will be an even better year as we continue to layer on more high-quality insurance in force and drive strong revenue growth while prudently managing expenses and risk. With our largely fixed expense base, we expect that the operating leverage we already have demonstrated will drive increasing profits and returns throughout the year.'

  • As of December 31, 2016, the company had primary insurance-in-force of $32.2 billion, up 14% from $28.2 billion at the prior quarter end and up 117% over $14.8 billion as of December 31, 2015.
  • Premiums earned for the quarter were $32.8 million, up 3% from $31.8 million in the prior quarter and up 94% over $16.9 million in the same quarter a year ago.
  • NIW mix was 75% monthly premium product, which compares with 71% in the prior quarter and 45% in the fourth quarter of 2015.
  • Total underwriting and operating expenses in the fourth quarter were $23.3 million, including share-based compensation expense of $1.9 million. This compares with total underwriting and operating expenses of $24.0 million, including $1.8 million of share-based compensation, in the prior quarter, and $21.7 million, including $2.3 million of share-based compensation, in the same quarter a year ago.
  • Loss expense for the quarter was $0.8 million, resulting in a loss ratio of 2%.
  • As of the end of the fourth quarter, the company had approved master policies in place with 1,131 customers, up from 1,100 as of the end of the prior quarter, and up from 964 as of the end of the fourth quarter of 2015. Customers delivering NIW in the quarter grew to a new high of 638, which compares with 525 in the prior quarter and 500 in the same quarter a year ago.
  • At quarter-end, cash and investments were $677 million, including $74 million at the holding company, and book equity was $477 million, equal to $8.07 per share.
  • In 2016, the company generated $71.9 million of cash from operations, which compares with $41.5 million for 2015.
  • At quarter-end, the company had total PMIERs available assets of $454 million, which compares with risk- based required assets under PMIERs of $367 million.
Quarter Quarter Quarter Growth Growth
Ended Ended Ended Q/Q Y/Y
12/31/2016 9/30/2016 12/31/2015
Primary Insurance-in-Force ($billions) 32.17 28.22 14.82 14 % 117 %
New Insurance Written - NIW ($billions)
Monthly premium 3.90 4.16 2.03 -6 % 92 %
Single premium 1.34 1.70 2.52 -21 % -47 %
Total 5.24 5.86 4.55 -11 % 15 %
Premiums Earned ($millions) 32.83 31.81 16.88 3 % 94 %
Underwriting & Operating Expense ($millions) 23.28 24.04 21.69 -3 % 7 %
Loss Expense ($millions) 0.80 0.66 0.37 21 % 116 %
Loss Ratio 2 % 2 % 2 %
Cash & Investments ($millions) 677 686 617 -1 % 10 %
Book Equity ($millions) 477 430 403 11 % 18 %
Book Value per Share 8.07 7.28 6.85 11 % 18 %
Approved Master Policies 1,131 1,100 964 3 % 17 %
Customers Generating NIW 638 525 500 22 % 28 %
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: 41208251, 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 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; 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 carryforwards, 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, 2015, 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 December 31, For the year ended December 31,
2016 2015 2016 2015
Revenues (In Thousands, except for share data)
Net premiums earned $ 32,825 $ 16,880 $ 110,481 $ 45,506
Net investment income 3,634 2,078 13,751 7,246
Net realized investment gains (losses) 65 (121 ) (693 ) 831
Other revenues 105 25 276 25
Total revenues 36,629 18,862 123,815 53,608
Expenses
Insurance claims and claims expenses 800 371 2,392 650
Underwriting and operating expenses 23,281 21,686 93,223 80,599
Total expenses 24,081 22,057 95,615 81,249
Other (expense) income
(Loss) gain from change in fair value of warrant liability (1,713 ) 431 (1,900 ) 1,905
Interest expense (3,777 ) (2,057 ) (14,848 ) (2,057 )
Total other (expense) (5,490 ) (1,626 ) (16,748 ) (152 )
Income (loss) before income taxes 7,058 (4,821 ) 11,452 (27,793 )
Income tax benefit (54,502 ) - (54,389 ) -
Net income (loss) $ 61,562 $ (4,821 ) $ 65,841 $ (27,793 )
Earnings (loss) per share
Basic $ 1.04 $ (0.08 ) $ 1.11 $ (0.47 )
Diluted $ 1.01 $ (0.08 ) $ 1.08 $ (0.47 )
Weighted average common shares outstanding
Basic 59,140,011 58,781,566 59,070,948 58,683,194
Diluted 61,229,338 58,781,566 60,829,372 58,683,194
Loss Ratio 2 % 2 % 2 % 1 %
Expense Ratio 71 128 84 177
Combined ratio 73 % 131 % 87 % 179 %
Net income (loss) $ 61,562 $ (4,821 ) $ 65,841 $ (27,793 )
Other comprehensive (loss) income, net of tax:
Net unrealized (losses) gains in accumulated other comprehensive income (loss), net of tax expense of $1,178, and $0 for the years ended December 31, 2016 and December 31, 2015, respectively and $1,178, and $0 for the quarters ended December 31, 2016 and December 31, 2015 (16,196 ) (3,503 ) 1,429 (3,518 )
Reclassification adjustment for losses (gains) included in net loss, net of tax expense of $0 for all periods presented (65) 603 758 (349 )
Other comprehensive (loss) income, net of tax (16,261 ) (2,900 ) 2,187 (3,867 )
Comprehensive income (loss) $ 45,301 $ (7,700 ) $ 68,028 $ (31,660 )
Loss ratio is calculated by dividing the provision for insurance claims and claims expenses by net premiums earned.
Expense ratio is calculated by dividing other underwriting and operating expenses by net premiums earned.

Consolidated balance sheets December 31, 2016 December 31, 2015
Assets (In Thousands, except for share data)
Fixed maturities, available-for-sale, at fair value (amortized cost of $630,688 and $564,319 as of December 31, 2016 and December 31, 2015, respectively) $ 628,969 $ 559,235
Cash and cash equivalents 47,746 57,317
Premiums receivable 13,728 5,143
Accrued investment income 3,421 2,873
Prepaid expenses 1,991 1,428
Deferred policy acquisition costs, net 30,109 17,530
Software and equipment, net 20,402 15,201
Intangible assets and goodwill 3,634 3,634
Prepaid reinsurance premiums 37,921 -
Deferred tax asset, net 53,274 -
Other assets 542 90
Total assets $ 841,737 $ 662,451
Liabilities
Term loan $ 144,353 $ 143,939
Unearned premiums 152,906 90,773
Accounts payable and accrued expenses 25,297 22,725
Reserve for insurance claims and claim expenses 3,001 679
Reinsurance funds withheld 30,633 -
Deferred ceding commission 4,831 -
Warrant liability, at fair value 3,367 1,467
Deferred tax liability, net - 137
Total liabilities 364,388 259,720
Commitments and contingencies
Shareholders' equity
Common stock - class A shares, $0.01 par value; 59,145,161 and 58,807,825 shares issued and outstanding as of December 31, 2016 and December 31, 2015, respectively (250,000,000 shares authorized) 591 588
Additional paid-in capital 576,927 570,340
Accumulated other comprehensive loss, net of tax (5,287 ) (7,474 )
Accumulated deficit (94,882 ) (160,723 )
Total shareholders' equity 477,349 402,731
Total liabilities and shareholders' equity $ 841,737 $ 662,451
Historical Quarterly Data 2016 2015
December
31,
September
30
June 30 March 31 December 31 September
30
Revenues (In Thousands, except for share data)
Net premiums earned $ 32,825 $ 31,808 $ 26,041 $ 19,807 $ 16,880 $ 12,834
Net investment income 3,634 3,544 3,342 3,231 2,078 1,884
Net realized investment gains (losses) 65 66 61 (885 ) (121 ) (15 )
Other revenues 105 102 37 32 25 -
Total revenues 36,629 35,520 29,481 22,185 18,862 14,703
Expenses
Insurance claims and claims expenses 800 664 470 458 371 181
Underwriting and operating expenses 23,281 24,037 23,234 22,672 21,686 19,653
Total expenses 24,081 24,701 23,704 23,130 22,057 19,834
Other (expense) income (5,490 ) (4,530 ) (3,766 ) (2,962 ) (1,626 ) 332
Income (loss) before income taxes 7,058 6,289 2,011 (3,907 ) (4,821 ) (4,799 )
Income tax (benefit) expense (54,502 ) 114 - - - -
Net income (loss) $ 61,562 $ 6,175 $ 2,011 $ (3,907 ) $ (4,821 ) $ (4,799 )
Earnings (loss) per share
Basic $ 1.04 $ 0.10 $ 0.03 $ (0.07 ) $ (0.08 ) $ (0.08 )
Diluted $ 1.01 $ 0.10 0.03 (0.07 ) (0.08 ) (0.08 )
Weighted average common shares
outstanding
Basic 59,140,011 59,130,401 59,105,613 58,936,694 58,781,566 58,741,328
Diluted 61,229,338 60,284,746 59,830,899 58,936,694 58,781,566 58,741,328
Other data
Loss Ratio 2 % 2 % 2 % 2 % 2 % 1 %
Expense Ratio 71 % 76 % 89 % 114 % 128 % 153 %
Combined ratio 73 % 78 % 91 % 117 % 131 % 155 %
Other (expense) income includes the gain from change in fair value of warrant liability, gain from settlement of warrants, and interest expense.
Loss ratio is calculated by dividing the provision for insurance claims and claims expenses by net premiums earned.
Expense ratio is calculated by dividing other underwriting and operating expenses by net premiums earned.

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
December
31, 2016
September
30, 2016
June 30,
2016
March 31,
2016
December
31, 2015
September
30, 2015
(In Millions)
Monthly $ 3,904 $ 4,162 $ 3,700 $ 2,492 $ 2,029 $ 1,582
Single 1,336 1,695 2,138 1,762 2,518 2,051
Primary $ 5,240 $ 5,857 $ 5,838 $ 4,254 $ 4,547 $ 3,633
Primary and pool IIF As of
December 31,
2016
September
30, 2016
June 30, 2016 March 31,
2016
December 31,
2015
September
30, 2015
(In Millions)
Monthly $ 19,205 $ 16,038 $ 12,529 $ 9,210 $ 6,958 $ 5,087
Single 12,963 12,190 11,095 9,354 7,866 5,514
Primary 32,168 28,228 23,624 18,564 14,824 10,601
Pool 3,650 3,826 3,999 4,136 4,238 4,340
Total $ 35,818 $ 32,054 $ 27,623 $ 22,700 $ 19,062 $ 14,941
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
December
31, 2016
September
30, 2016
June 30,
2016
March 31,
2016
December
31, 2015
September
30, 2015
($ Values In Millions)
New insurance written $ 5,240 $ 5,857 $ 5,838 $ 4,254 $ 4,547 $ 3,633
New risk written 1,244 1,415 1,411 1,016 1,105 887
Insurance in force 32,168 28,228 23,624 18,564 14,824 10,601
Risk in force 7,790 6,847 5,721 4,487 3,586 2,553
Policies in force (count) 134,662 119,002 100,547 79,700 63,948 46,175
Weighted-average coverage 24.2 % 24.3 % 24.2 % 24.2 % 24.2 % 24.1 %
Loans in default (count) 179 115 79 55 36 20
Percentage of loans in default 0.1 % 0.1 % 0.1 % 0.1 % 0.1 % - %
Risk in force on defaulted loans $ 10 $ 6 $ 4 $ 3 $ 2 $ 1
Average premium yield 0.44 % 0.48 % 0.47 % 0.45 % 0.49 % 0.52 %
Annual persistency 80.7 % 81.8 % 83.3 % 82.7 % 79.6 % 71.6 %
Reported as of the end of the period.
End of period risk in force (RIF) divided by IIF.
Average premium yield is calculated by dividing primary net premiums earned, net of reinsurance, by average gross IIF for the period, annualized.
Defined as the percentage of IIF that remains on our books after any 12-month period.

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
December 31, 2016 September 30, 2016 December 31, 2015
(In Millions)
> = 760 $ 2,566 $ 2,975 $ 2,315
740-759 846 934 754
720-739 647 725 569
700-719 560 588 485
680-699 375 387 277
< =679 246 248 147
Total $ 5,240 $ 5,857 $ 4,547
Primary NIW by LTV Three months ended
December 31, 2016 September 30, 2016 December 31, 2015
(In Millions)
95.01% and above $ 355 $ 347 $ 219
90.01% to 95.00% 2,224 2,557 1,989
85.01% to 90.00% 1,580 1,844 1,559
85.00% and below 1,081 1,109 780
Total $ 5,240 $ 5,857 $ 4,547
Primary NIW by purchase/refinance mix Three months ended
December 31, 2016 September 30, 2016 December 31, 2015
(In Millions)
Purchase $ 3,776 $ 4,400 $ 3,138
Refinance 1,464 1,457 1,409
Total $ 5,240 $ 5,857 $ 4,547
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
December 31, 2016 September 30, 2016 December 31, 2015
Monthly 746 748 750
Single 764 763 756
Weighted Average LTV
December 31, 2016 September 30, 2016 December 31, 2015
Monthly 92 % 91 % 92 %
Single 90 90 91
The table below reflects a summary of our primary IIF and RIF by book year.

Primary IIF and RIF As of December 31, 2016
IIF RIF
(In Millions)
December 31, 2016 $ 20,193 $ 4,850
2015 10,071 2,472
2014 1,856 457
2013 48 11
Total $ 32,168 $ 7,790
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
December 31, 2016 September 30, 2016 December 31, 2015
(In Millions)
> = 760 $ 16,166 $ 14,258 $ 7,124
740-759 5,248 4,612 2,406
720-739 4,130 3,648 2,111
700-719 3,245 2,813 1,515
680-699 2,151 1,863 1,100
< =679 1,228 1,034 568
Total $ 32,168 $ 28,228 $ 14,824
Primary RIF by FICO As of
December 31, 2016 September 30, 2016 December 31, 2015
(In Millions)
> = 760 $ 3,934 $ 3,470 $ 1,707
740-759 1,281 1,130 590
720-739 1,000 887 519
700-719 782 680 369
680-699 511 443 267
< =679 282 237 134
Total $ 7,790 $ 6,847 $ 3,586
Primary Average Loan Size by FICO As of
December 31, 2016 September 30, 2016 December 31, 2015
(In Thousands)
> = 760 $ 250 $ 250 $ 246
740-759 241 240 235
720-739 235 235 229
700-719 233 233 228
680-699 224 224 219
< =679 210 209 207
Primary IIF by LTV As of
December 31, 2016 September 30, 2016 December 31, 2015
(In Millions)
95.01% and above $ 1,686 $ 1,363 $ 498
90.01% to 95.00% 14,358 12,644 6,583
85.01% to 90.00% 10,282 9,157 5,098
85.00% and below 5,842 5,064 2,645
Total $ 32,168 $ 28,228 $ 14,824
Primary RIF by LTV As of
December 31, 2016 September 30, 2016 December 31, 2015
(In Millions)
95.01% and above $ 467 $ 380 $ 139
90.01% to 95.00% 4,226 3,725 1,943
85.01% to 90.00% 2,439 2,174 1,210
85.00% and below 658 568 294
Total $ 7,790 $ 6,847 $ 3,586
Primary RIF by Loan Type As of
December 31, 2016 September 30, 2016 December 31, 2015
Fixed 99 % 98 % 98 %
Adjustable rate mortgages:
Less than five years - - -
Five years and longer 1 2 2
Total 100 % 100 % 100 %
As of December 31, 2016 and December 31, 2015, 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
December 31, 2016 September 30, 2016 December 31, 2015
(In Millions)
IIF, beginning of period $ 28,228 $ 23,624 $ 10,601
NIW 5,240 5,857 4,547
Cancellations and other reductions (1,300 ) (1,253 ) (324 )
IIF, end of period $ 32,168 $ 28,228 $ 14,824
Geographic Dispersion

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

Top 10 primary RIF by state As of
December 31, 2016 September 30, 2016 December 31, 2015
California 13.6 % 13.2 % 12.9 %
Texas 7.0 6.8 6.8
Virginia 6.5 6.6 5.2
Florida 4.5 4.7 5.3
Arizona 3.9 3.8 3.7
Colorado 3.9 4.0 4.2
Maryland 3.7 3.6 2.8
Michigan 3.7 3.9 4.4
Utah 3.7 3.6 3.0
Pennsylvania 3.6 3.6 3.7
Total 54.1 % 53.8 % 52.0 %
The following table shows portfolio data by origination year.

As of December 31, 2016
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)
Cumulative
default rate

($ Values in Millions)
2013 $ 162 $ 48 30 % 655 239 - 1 - % 0.2 %
2014 3,451 1,857 54 % 14,786 9,003 48 3 2.6 % 0.3 %
2015 12,422 10,071 81 % 52,548 44,716 103 7 2.4 % 0.2 %
2016 21,189 20,192 95 % 83,633 80,704 28 - 0.6 % - %
Total $ 37,224 $ 32,168 151,622 134,662 179 11
The ratio of losses incurred (paid and reserved) divided by cumulative premiums earned, net of reinsurance.
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 December 31, For the year ended December 31,
2016 2015 2016 2015
(In Thousands)
Beginning balance $ 2,133 $ 358 $ 679 $ 83
Less reinsurance recoverables (90 ) - - -
Beginning balance, net of reinsurance recoverables 2,043 358 679 83
Add claims incurred:
Claims and claim expenses incurred:
Current year 654 341 2,457 699
Prior years 149 30 (65 ) (49 )
Total claims and claims expenses incurred 803 371 2,392 650
Less claims paid:
Claims and claim expenses paid:
Current year 171 50 171 50
Prior years (29 ) - 196 4
Total claims and claim expenses paid 142 50 367 54
Reserve at end of period, net of reinsurance recoverables 2,704 679 2,704 679
Add reinsurance recoverables 297 - 297 -
Balance, December 31 $ 3,001 $ 679 $ 3,001 $ 679
Related to ceded losses recoverable on our 2016 quota-share reinsurance transaction. To date, ceded losses have been immaterial.
Related to defaults occurring in the current year.
Related to defaults occurring in prior years.

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

Three months ended Year ended
December 31, December 31, December 31, December 31,
2016 2015 2016 2015
Beginning default inventory 115 20 36 4
Plus: new defaults 126 27 284 51
Less: cures (59 ) (10 ) (132 ) (17 )
Less: claims paid (3 ) (1 ) (9 ) (2 )
Ending default inventory 179 36 179 36
The following tables provide details of our claims and reserves.

Three months ended Year ended
December 31, December 31, December 31, December 31,
2016 2015 2016 2015
($ Values In Thousands)
Number of claims paid 3 1 9 2
Total amount paid for claims $ 136 $ 50 $ 367 $ 54
Average amount paid per claim $ 45 $ 50 $ 41 $ 27
Severity 65 % 104 % 64 % 44 %
Average reserve per default: As of December 31, 2016 As of December 31, 2015
(In Thousands)
Case $ 15 $ 18
IBNR 2 1
Total $ 17 $ 19
The following table provides a comparison of the PMIERs financial requirements as reported by National MI.

As of
December 31, 2016 September 30, 2016 December 31, 2015
(In thousands)
Available Assets $ 453,523 $ 488,635 $ 431,411
Net Risk-Based Required Assets 366,584 320,609 249,805
Asset charge % 6.15 % 6.14 % 6.17 %
Asset charge represents the risk based required asset amount as defined in the PMIERs, divided by the outstanding RIF on performing primary loans.

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

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

Source: NMI Holdings, Inc.

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NMI Holdings Inc. published this content on 15 February 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 15 February 2017 21:07:23 UTC.