NMI Holdings, Inc.NMIH

NMI Holdings, Inc. is a holding company whose main business is writing mortgage insurance through its subsidiary National MI, a unit that sells policies to mortgage lenders and borrows premiums from borrowers. The latest 10-Q for the quarter ended March 31, 2026 shows revenue of $183.5 million, net income attributable to the parent of $99.3 million, and operating cash flow of $116.1 million, all of which suggests a business that is collecting cash more reliably than it is insuring tail risks.

National MI, the operating arm, describes itself as offering “flexible products so that your borrower has the most mortgage insurance options available,” a pitch that sounds like a buffet until you notice that the real menu is denominated in cash and regulatory capital. The company also operates a mortgage loan review service through its wholly-owned subsidiary NMI Services, Inc., a unit that quietly monetises compliance labour rather than lending risk. Reinsurance for the tail is outsourced to two Bermuda special purpose vehicles, Oaktown Re VI and Oaktown Re VII, which charge National MI for the privilege of holding the risk and cap their annual operating expense allowance at $250,000, a figure that looks like a rounding error against the $3.91 billion asset base.

The balance sheet for the quarter ended March 31, 2026 shows total assets of $3.91 billion, liabilities of $1.28 billion, and shareholders’ equity of $2.63 billion. Cash provided by operating activities was $116.1 million, while capex was a modest $1.1 million. Diluted EPS came in at $1.28 on 77.4 million diluted shares. The company’s reinsurance treaties with the Oaktown vehicles are disclosed under “reinsurance recoverables and related balances,” a line that quietly reveals how much of the tail risk is being parked offshore.

On the filing front, NMI Holdings has been active in the disclosure department: between May 18 and July 24, 2026, insiders filed five separate Forms 4 and 144, a cadence that reads less like routine disclosure and more like a reminder that the board’s clock is ticking. The company’s product and rate pages on nationalmi.com advertise flexible borrower options, while the operating reality is captured in the 10-Q numbers: cash collected, liabilities managed, and a $250,000 cap on someone else’s operating budget.

If you want a market lens, start with the 10-Q figures and treat the rest as optics: $183.5 million in revenue, $116.1 million in operating cash flow, and a Bermuda reinsurance bill that looks like a rounding error until you remember that rounding errors compound when the cake has too many layers.

What remains unproven is exactly how much of the credit risk is being transferred versus retained, and what would happen if the Oaktown vehicles ever needed more than their $250,000 allowance to run their show. The next 10-Q will tell us whether the cash machine keeps humming or whether the Bermuda layer starts asking awkward questions.