NMI Holdings, Inc. (NASDAQ:NMIH) Q3 2019 Earnings Conference Call - Final Transcript

Nov 06, 2019 • 05:00 pm ET


NMI Holdings, Inc. (NASDAQ:NMIH) Q3 2019 Earnings Conference Call - Final Transcript


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Good afternoon, ladies and gentlemen, and welcome to the NMI Holdings Inc. Third Quarter 2019 Earnings Conference Call. [Operator Instructions]

I would now like to turn the conference over to your host today, Mr. John Swenson. Please go ahead.

John M. Swenson

Thank you, operator. Good afternoon, and welcome to the 2019 third quarter conference call for National MI. I'm John Swenson, Vice President of Investor Relations and Treasury. Joining us on the call today are Brad Shuster, Executive Chairman; Claudia Merkle, CEO; Adam Pollitzer, our Chief Financial Officer; and Julie Norberg, our Controller. Financial results for the quarter were released after the close of the market today. The press release may be accessed on NMI's website located at www.nationalmi.com under the Investors tab.

During the course of this call, we may make comments about our expectations for the future. Actual results could differ materially from those contained in these forward-looking statements. Additional information about the factors that could cause actual results or trends to differ materially from those discussed on the call can be found on our website or through our regulatory filings with the SEC. If and to the extent the company makes forward-looking statements, we do not undertake any obligation to update those statements in the future in light of subsequent developments.

Further, no one should rely on the fact that the guidance included in such statements is current at any time other than the time of this call. Also note that on this call we refer to certain non-GAAP measures. In today's press release and on our website, we provided a reconciliation of these measures to the most comparable measures under GAAP.

Now I'll turn the call over to Brad.

Bradley M. Shuster

Thank you, John, and good afternoon, everyone. I'm pleased to report that in the third quarter, National MI again delivered record financial performance and strong momentum in customer development and portfolio growth. Broad market conditions were made constructive in the quarter in terms of origination volume and demand for our product, as well as the strength of the underwriting environment.

The interest rate environment continued to spur increased purchase and refinancing volume and helped drive incremental home price appreciation. Lower rates are particularly beneficial for first-time home buyers, a key constituency who have seen an immediate improvement in affordability and access to the market.

Looking forward, we are optimistic about the macroeconomic environment and the outlook for the mortgage insurance market. We see continued strength in our insured borrowers, driven by record low unemployment, strong wage growth and sustained home price appreciation. In fact, this is the first time in more than 50 years that both national unemployment and mortgage rates are below 4%, a dynamic that sets up well for both new business flow and the credit performance of our in-force portfolio going forward.

Although our outlook is positive, we continue to take a long-term view of the credit cycle and have invested to develop the tools that we believe will allow us to outperform across all markets. Our