NMI Holdings, Inc. Enters Into $154 Million Excess-of-Loss Reinsurance Agreement
August 30 2022 - 4:04PM
NMI Holdings, Inc. (Nasdaq: NMIH) today announced that National
Mortgage Insurance Corporation (National MI), its wholly-owned
insurance subsidiary, has entered into a new excess-of-loss (XOL)
reinsurance agreement with a broad panel of highly rated
reinsurers, subject to customary conditions. The XOL agreement has
a treaty inception date of July 1, 2022 and provides aggregate loss
protection on policies originated primarily between April 1, 2022
and June 30, 2022, from a 2.25% cumulative claim attachment
threshold up to a 6.65% maximum aggregate detachment level.
National MI expects to receive full PMIERs credit for the
transaction, subject to GSE approval.
Ravi Mallela, Executive Vice President and Chief
Financial Officer of National MI, said, “We are pleased to have
secured additional reinsurance coverage and incremental PMIERs
funding at this time. This transaction builds upon the broad
success we have achieved in the risk transfer markets to date and
closely follows the XOL transaction we announced in May. Our
ability to compress the cycle time between transactions and secure
coverage for our most recent quarterly new business production is
an important step and serves to minimize the retained credit risk
in our high-quality, high-growth insured portfolio. Looking
forward, we’re in a terrific position with broad protection from
our comprehensive reinsurance program and demonstrated access to
funding across the capital markets and reinsurance
spectrum.”
About NMI HoldingsNMI Holdings,
Inc. (NASDAQ: NMIH), is the parent company of National Mortgage
Insurance Corporation (National MI), 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 StatementsThis press release contains
forward looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended (the "Securities Act"), Section
21E of the Securities Exchange Act of 1934, as amended (the
"Exchange Act”), the U.S. Private Securities Litigation Reform Act
of 1995, or in releases made by the U.S. Securities and Exchange
Commission (“SEC”), all as may be amended from time to time.
Forward-looking statements are statements about future, not past,
events and rely on a number of assumptions concerning future events
and involve certain important risks and uncertainties, any of which
could cause our actual results to differ materially from those
expressed in our forward-looking statements. Forward-looking
statements in this press release include, without limitation,
statements regarding National MI’s positioning for its future
performance. More information about the risks, uncertainties and
assumptions affecting National MI include, but are not necessarily
limited to, the risk factors and forward-looking statements
cautionary language contained in our Annual Report on Form 10-K and
in other filings made with the SEC. We do not undertake, and
specifically disclaim, any obligation to revise any forward-looking
statements to reflect the occurrence of future events or
circumstances.
Investor ContactJohn M.
SwensonVice President, Investor Relations and
Treasuryjohn.swenson@nationalmi.com(510) 788-8417
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