NMI Holdings, Inc. Announces S&P Rating Upgrades

Rhea-AI Summary

NMI Holdings, Inc. (Nasdaq: NMIH) announced that S&P Global Ratings has upgraded its ratings for the company and its subsidiary, National Mortgage Insurance (National MI). S&P raised National MI's long-term insurer financial strength rating to 'A-' and NMI Holdings' issuer credit rating to 'BBB-', both with stable outlooks.

The upgrades were based on several factors, including:

• Strong growth in shareholders' equity
• Balanced and diversified capital structure
• Quality of the insured portfolio
• Track record of underwriting profitability
• Substantial use of reinsurance to protect performance across market cycles

These upgrades reflect S&P's positive assessment of NMI Holdings' and National MI's financial strength and stability in the mortgage insurance industry.

Positive

• S&P Global Ratings upgraded National MI's long-term insurer financial strength rating to 'A-'
• S&P upgraded NMI Holdings' issuer credit rating to 'BBB-'
• Both ratings carry a stable outlook
• Strong growth in shareholders' equity noted by S&P
• Track record of underwriting profitability highlighted
• Substantial use of reinsurance to protect performance across market cycles

Negative

• None.

News Market Reaction

-1.14%

1 alert

-1.14% News Effect

On the day this news was published, NMIH declined 1.14%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

EMERYVILLE, Calif., Oct. 07, 2024 (GLOBE NEWSWIRE) -- NMI Holdings, Inc. (Nasdaq: NMIH) today announced that S&P Global Ratings (“S&P”) has raised its long-term insurer financial strength rating on National Mortgage Insurance Corporation (National MI) to “A-” and its issuer credit rating on NMI Holdings, Inc. to “BBB-”. Both ratings carry a stable outlook.

S&P’s rationale in support of the upgrade includes National MI’s strong growth in shareholders’ equity and broadly balanced and diversified capital structure, as well as its insured portfolio quality, track record of underwriting profitability and substantial use of reinsurance to protect performance across market cycles.

About NMI Holdings, Inc.
NMI 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 Statements
This 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 Contact
John M. Swenson
Vice President, Investor Relations & Treasury
John.Swenson@NationalMI.com
(510) 788-8417

FAQ

What new ratings did S&P Global Ratings assign to NMI Holdings (NMIH) and its subsidiary?

S&P Global Ratings upgraded National Mortgage Insurance 's long-term insurer financial strength rating to 'A-' and NMI Holdings' issuer credit rating to 'BBB-', both with stable outlooks.

What factors contributed to the S&P rating upgrades for NMI Holdings (NMIH)?

The upgrades were based on strong growth in shareholders' equity, balanced and diversified capital structure, quality of the insured portfolio, track record of underwriting profitability, and substantial use of reinsurance to protect performance across market cycles.

How does the S&P rating upgrade affect NMI Holdings' (NMIH) financial outlook?

The rating upgrades to 'A-' for National MI and 'BBB-' for NMI Holdings, both with stable outlooks, reflect S&P's positive assessment of the companies' financial strength and stability in the mortgage insurance industry.

What is the significance of NMI Holdings' (NMIH) reinsurance strategy according to S&P?

S&P highlighted NMI Holdings' substantial use of reinsurance as a positive factor, noting that it helps protect the company's performance across market cycles.