NMIH - Earnings call transcript Q1 2019

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day ladies and gentlemen and welcome to the NMI Holdings, Inc.

First Quarter 2019 Earnings Call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session and instructions will be given at that time. [Operator Instructions] As a reminder, today's conference will be recorded. to MI. call like Swenson to now National of would turn over the John I may you Sir, begin.

John Swenson

I'm President Good the Conference MI. XXXX you. First Swenson, Thank afternoon Quarter Call and for and Investor Relations of welcome to John Treasury. Vice National

the Controller. on Brad are press the after website were Financial CEO; results today Claudia Officer; and the Shuster, Chief released the The Pollitzer, for release our under call accessed Financial Chairman; market close Julie Merkle, on us at Joining located Executive Adam the be Norberg, today. of tab. our Investors may quarter NMI's www.nationalmi.com

statements. the expectations call, for During differ we our Actual future. comments forward-looking results could about contained this of the those materially may course from make these in

could be we In the parties measures the press the measures. found at of interested filings in our our to do to the no to not note this provided fact today's on comparable such guidance Additional light results from reconciliation with the If have that website, rely undertake factors most current a non-GAAP under GAAP. on update statements actual developments. Also any in the is materially obligation of Further, differ release this any of than call, through to the forward-looking about on or statements on other that of time should these can discussed time extent refer certain call. our to measures the we on call SEC. the company we regulatory those those makes subsequent that cause statements, website future or the trends information and and

in your over will update me After take will turn call some conference remarks results to remarks, introductory the Claudia, the and will from questions. closing financial discuss provide our let With call. business, make will some to Brad. Adam then we Now detail. an the on Brad Claudia that,

Bradley Shuster

exceptionally results afternoon in quarter, development good that continued delivered financial strong report in everyone. I'm pleased including and and the you, first momentum again and MI performance, National Thank John growth. to portfolio customer record

continue underwriting, to We leveraging framework, risk comprehensive performance, differentiate our reinsurance and individual which with broad-based industry-leading management our Rate spans credit results. GPS, program also risk deliver to our

role and losses. for with Washington and the signaling April, team plays first constructive perspectives it as are nomination around quarter. qualified and in And forward new over to we months turn Congress we I'm our We Our the looking conversations in insurance both against in the work what Claudia. a Director aligned to well of achieved In valuable in that, in sworn from market of protecting and to the supportive the as with were to new the borrowers mortgage FHFA Calabria regulators of positive, Calabria taxpayers Overall, in that delighted the ahead. members opportunity I'll about administration leadership private as We're remain posture Director private industry. was expanding Mark highly access MI FHFA. the believe about his homeownership the

Claudia Merkle

growth We GAAP or of a across first results value Thank our shareholder and delivered diluted Adjusted continue record building of for XX.X% We net X% first insurance-in-force and the ROE quarter was you, share. proud remain year. in the in consistent the in in salesforce, quarter GPS and recognition the was adjusted continue on the across first strong to risk-return metric performance income record excitement our about quarter XX% compared $X.X $XX.X per per share, or industry-leading engagement was performance driven quarter. and net and by Brad. last was cycle. of We Rate discipline. quarter $XX.X continued record expect $X.XX $XX.X billion, lender fourth NIW delivering from quarter monthly million the return of The key achieved market. customer strong over maintaining GAAP equity quarter of while including volume diluted million every was we insurance-in-force, $X.X to the income Primary organic, XX.X%. NIW up delivering NIW on ability generated focused our We're billion, for our our the to was record billion. that value and significant $X.XX proposition,

engagement basis, always sales with discussion and evolving is landscape. can business Often, a mortgage accuracy to NMI point aimed we day. and line today improve on true as cost the can focusing digital about a by beyond about on day technology consultative and capture insurance have utilize lender credit earn We GPS impactful trust new a engage customers our with to navigate borrowers, community workflow by our our road for discussion underwriting their Rate at help consultative launching and this directly particularly engage customers digital to of extends become has a how with succeed more the them rapidly efficiencies, performance. emerging seeks maps. they their How to and and

in seeing customer are first new volume. terms the XX We we quarter, these and NIW In customers. conversations of engagement activated pay dividends

deepen delivered continues We and high leveraging quality away insurance that doing mortgage XX% capture with consistency of all engagement market. an through using the as currently of our with transitioning be approach in we the our quickly the increasing Rate grow than Equally are customers established possible. as to from group GPS believe our approach We customers, and key to our been traction first on outset our customers with consultative we the platform continue has existing standout now XX% platform GPS. to are our to and volume from GPS a of as rate cards over success. service quarter-over-quarter, over share a the have We our originators. of a focus NIW broadly business of quarter Rate was Rate business. to of diverse More important, their X,XXX

decision introduction pricing in the believe risk-based health a long-term reinforces to MI be from development integrative to engines The technology. of positive and increased the actively use across pricing cards selection risk-adjusted to the prioritization the continue rate and a industry mix away of of towards industry-wide. sector Rate leader our engines of this GPS credit an transition commitment a the new is manage for and We to credit of returns the We signals production. our risk-based

healthy GPS react doing provide bolster the expect market our strong underwriting, to program. comprehensive with competition, long-term, in and individual an and ability ability in we enhanced Rate market Rate GPS, in so well-positioned the Over will deliver evolve as and plan conditions and terms environment. drive consistent, to that us will Against remains regulatory to risk prioritize results development continue we be which management are reinsurance MI expected. of with spans credit growth continue shareholders. broadly, our private the loss than environment insured this Nonetheless, industry we are portfolio, across business volume, win cycle. continues approach, risk in to executing quality, to high conditions deliver our strong broad-based underwriting backdrop, are to our The favorable, customers, and results our quality our and better for portfolio our More

business. steady, let to me industry-leading Adam. the built now With to performance efforts strong the our seven success and it platform that, The our past over We and manner growth returns. consistency to across translating are turn disciplined which in of our years over our trace enjoying we is

Adam Pollitzer

$XX.X This million portfolio. diluted insured record quality Claudia rapid high strong premiums adjusted everyone. and of achieved number billion on and key drove across Thank generated first our and and $X.X equity financial quarter $X.XX We record of you, of or of afternoon a the continued XX.X%. earned per million, We good had NIW record $XX.X growth income of results record net share, metrics. of record net return another quarter adjusted

the volume billion. XX% XX% XXXX. slightly the the rate our the Purchase the cancellation quarter on through quarter in our the Net timing in compared quarter was earned to and first period. represented the quarter fourth to basis the will up quarter down represented from are the variability $XX.X of tied originations the volume. of ahead with premium Now cancellation activity, given reflecting XX of of quarter, next and of fourth billion Strong of We for first basis in of the XX% to continue mix, the guidance XX.X%, quarter XX the the in million previous was Any details. rates and end, profile the at remains from million, flat guidance insurance-in-force. and for credit our modestly return up the portfolio, persistency consistent to NIW our our product the persistency billion in represented to quarter XX% X% of quarter our from first NIW, XX.X% yield in mid-teens XXXX. premiums quarter in-force from in-force of basis the primary strong the Overall, production the Primary was given NIW origination compared the quarter the the quarter. consistent points up Monthly from fourth expectations, in issuance. and rates XX in to the from that approximately up pricing points, XX% compared the roughly fourth quarter for monthly consistent mix the high year product to for X% $X.X Weighted quarter $X.X fourth of insurance-in-force Reported in at quarter in policies mix quality credit in XX% fourth end $XX.X fourth volume ILN points, NIW At were in the at with business of points Total was quarter overall our XX first full objective. of of quarter uptick we refinancing our end, XX average and $X.X $XX.X of compared with our basis positive and our in remainder year. the be credit portfolio our our capture primary a to during XXXX. quarter. volume drop the million of us persistency XX-month supportive XX% was up single and and portfolio. of corresponding earned

quarter, We of of quarter. in than In the XX volume Rate to to shape X% GPS X% mix actively continue greater fourth use to our the the new our first mix credit declined from DTI production.

below from and overall and fourth X% LTV million the the and quarter. $X of income was volume the $XX.X in respectively, remained operating first $X.X million, million at million XX compared $XX.X consistent market. X%, below Investment FICO XXX quarter. to both fourth were quarter Underwriting concentration the well in in expenses Our up

of end compared of in quarter $X.X XXXX. in first first XX.X% the million up We fourth quarter at primary end the was ratio XXX book the at in the the Our to the of the fourth XX.X% XX.X% the of in quarter GAAP expense had quarter. the expense quarter. default was first in notices quarter, XXX from and Claims

claims quarter our in the was continues by warrant The a remains we our X.X%. than loss as and million in from premiums in-force the Interest net liability. perform better divided was expense first Our earned, $X.X healthy defined expense priced. change the expected portfolio underwriting and million and initially fair had of ratio, environment quarter $X.X to loss value

Moving diluted first $XX.X in to quarter $X.XX diluted fourth compared per XX% share, diluted million income the $X.XX or tax to first and per in tax per $X.XX million stock million net GAAP exercises was the quarter net the in period. XXXX. option or reflecting and income compared for quarter our Adjusted warrant for or on XX% quarter $XX.X up XX.X%, and to vestings per the share was share. was treatment its our $XX.X price $X.XX for bottom-line. up diluted quarter million rate the the or of and share in the RSU the performance $XX Effective impact

of that We at $XXX and approximately quarter. end quarter the through effective rate million our be will end, quarterly XX%. million were investments tax up of from the $XXX Cash remainder at the expect fourth year the

total end, holding the $XX compares were took cash million. the company. million. quarter end risk-based March $XXX revised assets investments At revised on required million Excess of of and end end, which As at PMIERs at $XXX million, we quarter Shareholders' $XXX equity framework available XXst. The to under of the standard assets available assets grew the of on to effect $X.XX quarter had share to compares $XXX share, of was per the first $XXX $XX.XX equal to or fourth the per first per of book end first per XX%. in the $XXX end quarter at XX.X% $XX.XX return the was quarter or quarter which of million quarter. at share GAAP the and equity XXXX. our grew Year-over-year, over share by million value million, at

return equity Our on adjusted was XX.X%.

to are returns believe of cost strong delivering in well-positioned mid-teen forward, capital. of that that Looking our significantly excess we are continue we

expect risk of with closing optimization, attractive persistency turn and size, it continue disciplined along We broadly and management, to I'll insured strong that credit over her our performance. capital expenses, our to portfolio, drive growing the our profile, will With remarks. approach to Claudia for that,

Claudia Merkle

Thank you, Adam.

excited about in record first are our the We performance quarter.

with customers drive insured a portfolio commitment risk in our to our our continues industry-leading management success to growth to best-in-class performance. Our broad-based credit continues drive program and

year We are going deliver received great recognized were we've ability note consecutive by to in that honor. that place to this strong forward. Fortune create to proud Magazine, we significant work confident once value I'm and our also as returns third again shareholder the a

helps unique us Our culture key drive a our is makes success. what of part and

and their our day to grow Lenders help feel help we take With excited and on respond come us your team day-by-day. to back borrowers. They operator and in Our ask our trust us this questions. that, energized I'll so to and every customers the franchise comes it. can

Operator

Thank you. question from Shane our comes Instructions] Rick first with [Operator JPMorgan. And

Your now open. line is

Rick Shane

obviously want rate the the run to year? and a in that look questions remainder the taking we what when guys. afternoon. thinking about two One, There's leverage have the dialed build operating sure I we through expense my there; I'm of we and of sort Really, around best the a this curious sensitivity as make models be at Hi for just Thanks of should can. the lot there we things.

Adam Pollitzer

XXXX, the XXXX. to I be the do think in anticipate expect I quarter guidance adjusted overall, we'll some the holds. Rick, year, our provided up our we but will our making to operating growth In fourth continue call our on that for to we'll expenses XX% grow of and investments by still expenses then, full compared moderate, Sure. operating rate in in we see systems. people that And expenses

that quarter-to-quarter, progress modest how through we plays see period-to-period, terms year. expect In don't the swings significant of we as may year, out but we the through growth

Rick Shane

Got it. in favorable on the of quarter, terms first of spending. Because that, it appears the side ahead you're you're after

Adam Pollitzer

Yes, right.

If would of the high map we it guidance, rate, end that out, above the assuming little run in, a kind first in where came the of be you bit XX% quarter.

through some modest growth, as of And not a amount, significant expect the so we do modest we sort some growth but trend year.

Rick Shane

curious, from pricing competitive, be there in Got it, line driving peers thinking you're about moving great. risk? more as in And it's with your then of if terms just any GPS, a Rate terms of are seeing distortions how or should that in different we

Claudia Merkle

Overall, cements important a market. positive in lead, the an that returns for It and to risk-adjusted focusing area we on MI Rick. think an we it's first change really foremost. Sure try

positive strategies generally introduction is granular and the a market is the long-term. believe we industry increasingly very So, real selective of and pricing stable the for our across the

return our For pricing us, continue supports objectives. achieve we mid-teens strong most importantly, NMI, to that for

Rick Shane

guys. Adam thank Claudia, Okay. you very much

Claudia Merkle

Sure.

Bradley Shuster

Rick. Thanks

Operator

And question Mark comes next Barclays. Thank DeVries from with you. our

open. now is line Your

Mark DeVries

on pricing just Are any the Yes, you to shifts any view pricing where follow-up engines? through of last seeing based risk-based change attractive more returns be point. a discrete you risk-adjusted most on the in thanks. the Maybe use in

Adam Pollitzer

No. It's Adam.

And roll bands to right volume, opportunity we best deemphasize returns seeing risk you at at on that XXX the we on greater -- focus and that's quality you XX LTV now, quarter, risk look see capture those wrote in the our cohorts, capture what we you risk-adjusted bands, do they're line XX where focusing mix of expectations higher and we if cycle. of still targeted our will continue would level to If and we and limit volume, with forward below concentration look characterize DTI and than risk-adjusted but FICO volatility credit. able so obviously returns as if production first still we are volume, higher-quality in high to at that look to in through think the our way the that the are so and a we're business as very

Mark DeVries

up quarter, particularly could MIs Okay, you Can of for how the point sign kind took got also out it market ramp gates and you of where relevant both update the of think on to customers, clear still you having clearly to new share, public? what an not it. to you continue your be the opportunity seems see, on we customers, is the -- With end what much all existing get company realistically you kind coming not but share to gain. yet, more reported pretty guided when

Claudia Merkle

our been new that's matters with said activate Sure. and us we've that customers share, share to going wallet What to always Mark, exactly and current we've really market build around customers we're doing. don't writing importantly, doing quality the term. this to matters what business high insurance-in-force discipline and is quality towards run with we longer an that us building But eye and and NIW way. the what

and XXX the As the largest we convert going we're we about about have a lenders example the it we about largest if policy, of lenders, lenders kind is, those and we the think near-term. activated an activations top but where them a think in and is, have you our -- master haven't way expect to portion as XX you are of we're far to just where heading, think that

So, activations there's of going to upside plenty forward.

Adam Pollitzer

importantly, a drives just that for and there's the within activated customer once continue existing white a There's is us is activations, so to franchise bigger high while, space don't And share, capture as can. do add share, way. be to in there we to that still well period-to-period for opportunity tackle. but our but we real speak, to wallet get as each like the writing what really that the find attract we're incremental what with us to environment, different, capturing going account. business significant for we're and return; it's to but business risk-adjusted growth driver as activated this risk then, much in And of a where We're not at we'd speaking, can market and new to believe broadly attractive we is as it quality customers. going responsible we manage And

Mark DeVries

Okay, fair enough.

there's you've wrong, Although you're close looking share, end and You're this I that share, presumably, upper competitors, market XX% of assuming think, And upside pretty not kind you same for market your a of do are from you today? I me to risk-adjusted the more if best yet you of Do of correct right? -- shooting and you're I'm opportunity. the you're think think you gates. think to still the what yet articulated, guided out already returns Brad, doing type was today, for how I pricing you which see where from you as much

Bradley Shuster

have So, Mark, we guidance do, be a I be if I would great business think always high we we single-digit, I correctly, and and share we'd low remember targeting, double-digit said the what would did that. if

think there were different share quarter, seven be that But within So, now would making range some in there competitors pro we initial those were a obviously, Mark, number we growth may we lower so may well where when a or were competitors. you great comments, rata the with had than six think quarter put last quarter industry, that at a are there. recall, I at which we this and I

there's So, and huge opportunity really several we the as times, we ahead. think good about said results, feel

Claudia Merkle

we add to industry of that, $X.X wrote we in the do would billion outperformed I And and we quarter. Mark believe the just that Yes. NIW

traction. we results and and really our our So, good feel about thinking our

Mark DeVries

Okay, got it. Thank you.

Bradley Shuster

Thanks.

Operator

And from with Bose you. comes George our following KBW. question Thank

Your line open. is

Bose George

about insurance-linked ask just I the afternoon. wanted note market. Good to

you'd or your reinsurance it Going to risk a you of do management cover percentage about forward, just there perspective? from how a ILN is portfolio with think like

Adam Pollitzer

a or see market, the what's also don't for portion in in what's of PMIERs have and -- to traditional a speaking, the standpoint. we both think conservative ILN the markets coverage that and from in Yes. size what portfolio in in terms covered But also formal to we have target format. by bias format do translate right? traditional but more a as a to and look capital broadly towards marginal industry, look capital the bias terms from markets really should available, we value a the be of the be risk carry. be great management broadly be bit -- we ILN the will the breadth perspective probably reinsurance a secure includes on that the available that book We and of be what optimization And attractive to need efficiency utilizing we'll Bose, but opportunistic, available in is of pricing. we cushion market balanced what we We'll to that today;

not so that other At may look to versus And that look points influence when case. we transfer That will desirable transact. at forward, that where may to are and date. market future we risk going available a the be transact be less markets

Bose George

know I great. expense then And can Okay, Thanks. don't the ILN get dollar amount if you gave I this this, quarter? but for the

Adam Pollitzer

transaction, Sure. -- -- me reinsurance through just so it's the so we premium with through, ILN The was over two comes $X in under the expense, when In a just transactions it the premium. a comes Bear it million. say ILN total, ceded the quarter -- on ceded with ILN recall, moment.

Bose George

Thanks. great. Okay,

Operator

you. from Aron. our comes question following Thank And Mackenzie

open. now is line Your

Mackenzie Aron

on another Thanks. quarter. and great Good afternoon congrats

losses, the just curious new rates ratio provide and in you're surprising to starting if grind question, defaults loss not severities? color around some terms of what for you reserve in when of see you the to but First claim assuming was could just higher, terms

Adam Pollitzer

defaulters, that our I and We of of our rate disclose frequency some notices, our don't alluding -- ultimately together very I of of claims do that assumptions that theirs severity in our And different around a notices with the are the in or Adam. because you're component frequency those -- will think think pick. that others era. portion in defaults drives to our Yes, as totality, than it's serially industry it's right? there'll the what all new business align post-crisis assumption our progress new some assumptions the our provide claim relate I would on of not process, be ultimately progress That's to, loss Mackenzie, defaults and disclosure, the note written to reserving before claims. crisis repeat -- with business written in

haven't a disclose move underlying them. we meaningful are that process, in our seen but assumptions We reserving embedded those don't in

Mackenzie Aron

the that's year, of in assume Okay, be continue loss over guess we years higher? will But fact about to quicker? that two enough. terms that and benefit modeling next fair newer offsetting I be so grind from to ratio just the much it'll fair thinking how Or the should there an out, books are growing

Adam Pollitzer

-- low vintage those ages No, do I'll increase loss both its But portfolio right? And we've of population default to relatively as slow We growing, it; default loss for are our that's modestly It's period, format. we loss ratio the those higher putting our go in increase. would will so before so both it referenced, call higher, experience next the of cause the move into and and sort but in forward. growing, natural about that higher will its as the talked we the several on peak of to will you've and aging, is years. past, ratio that our just trend of business new will keep developments a grind portfolio to, incurrence it the expect steady stacking then quality dynamic think the

Mackenzie Aron

Makes sense. Thank you.

Operator

our And Dunn. Geoffrey question you. next comes from Thank

is line open. Your

Geoffrey Dunn

Good Thanks. afternoon.

$XX million? was a did Just say questions. cash couple number Holdco of Adam, you

Adam Pollitzer

correct. That's

Geoffrey Dunn

money you sequential was Did or there quarter downstream guys another right. this All expense?

Adam Pollitzer

relates just timing. It didn't. the to we No,

outlay programs. cash certain through the the certain from based the of paid the course of accruals So, quarter Holdco cash compensation and position build year related we to the company in significant on the operating we have -- first we of payment the year

Geoffrey Dunn

don't Got it you, in adverse can provision asking And guessing, the again you I assumption disclose no quarter the mix, And up just I'm more movement okay. I assumption, incidence no you, quarter? guess, looks given for then second incidence reason assumption? confirm was incidence move small is in but but there your you understand the the row. adverse there was confirm in average your the like geography I'm was numbers, can that's a this

Adam Pollitzer

is we and it's we actually them loan-by-loan that of that end frequency through individually we assumptions in characteristics. go speaking, on we and or estimating so NODs factor were a have lower taking storm of off the population had different basis, process storm off and XXXX related loans to that covered and of quarter each those those we The against nothing few new continues loans account. portfolio assumption that The XXXX a the the so -- Broadly some Yes, a based are past. we've XXX of larger. events significant severity the use run there population have and at to in events the them the or their for reasons in risk into assigned there's runs of -- reserving was for on a that

aging And of it. So, amount is itself. population the then natural the default to of just other some that contributed the

itself DXX from progress because a because reserving underlying different DXX, there's but the has loans DXX not assign DXX, assumption, been we to a as a change So, do in to default aged. a a factors, the

both in that And so those came quarter. of it's through the really

Geoffrey Dunn

clarify, to be tax the expect to remaining year quarters And be you on effective want tax rate the or just I the to for the for XX%? Okay. rate, then XX%

Adam Pollitzer

to XX%. For the remaining quarters be

Geoffrey Dunn

Okay. Thank you.

Operator

Thank you. And comes our from with Micenko question following SIG. Jack

Your open. line is

John Micenko

Good enough. everybody. afternoon Close

Bradley Shuster

Jack. Hey

John Micenko

this question, did the be last relative do year? you can you NIW we big XX year write you to you year? you share market think sense think this can on a the volume And business can bigger us with First do how industry picture, have

Claudia Merkle

off, buy are reaching drivers where We the MI. an market. I'll who comments of some give Yes, home. around first first age see increasing the their overall We number just the the of underlying you feel about good they Americans typically

the demand and driven of in have therefore, market to XX-year MI XXXX is of last buyer over number an the a seems years. in drop view our strong. strengthened The bit uptick has sentiment rate note the So,

if we expect $XXX the ultimately, XXXX, billion. So current trends to compared modestly which hold, grow to the was market

at momentum, response broadly we on customer far adding we customers. with formal have provide existing we great our don't see a As to customers NIW, of NIW, our guidance in terms strong growing but really new both and continue and as level a

As And around digital we're marketplace great for the we differentiator an real mentioned, the traction we also us. seeing engagement road with have important Rate conversation, in so GPS. it's become map

John Micenko

of The written helpful. average, the thumb, And got I'm Because book obviously, old on that? XX% prior questions. think post-crisis. what of a and was you've time, touching over kind loss a you that's on of that curious number Okay, rule of ratio, then

we've ring-fenced ILN don't to ratio want, I what think you the highest kind you and date X%. price the I now of you for loss tail business been your has not risk want. what mean even on can

So, I about these the thumb way last for in rule XX% forward year, of been the have companies? long-winded pretty seen ratio the is the given guess changes industry, in the there significant the that we've loss the think view right is, question over to looks

Adam Pollitzer

of right, what And Yes. Jack, the on think about ratio going the of focus the a target our on an it we're I'd And -- simply still unlevered our that PMIERs we strong pricing what's XX%, business instead, the return pricing I the output, is focus and is the loss to estimation are loss pricing achieve we basis. the experience you achieve? plus and mid-teen, in. side and what to risk-adjusted business assumption on loss to

It ratio outputs. to but we loss but right? views a basis. rate pricing capital hand-in-hand establish the and attract all strategy our return on put target is to critical anticipated the when filters the a expense things requirement the of so loss don't of doesn't informs the pricing. for we've rate, of loss that, risk will when pricing -- that target on the piece loading out just that and we're ratio of input, We piece business, se one know per PMIERs to got establish through, a as a the of one those those that that, that input loss that target you with is many to And a picks. performance performance we together, business, anticipated and In And is it order

John Micenko

is timing, on not that your book? at history we July be it any one If do -- get XXXX in. ILN would there the think the the sure. Okay, of think you Was I should that, on can to of -- June, again? guess just reason I more past timing something looking the

Adam Pollitzer

in we're ILN working nature think a just also, terms Yes, I as have of to We are working going bias timing, be can that September, be specific at markets give the issuance. the we the available on our where sizing, to any in do but Jack, when August, it we're we get transact. favorable when terms. you look, a through guidance we to the through of not to and conservative still October, analysis more now. available point is We're July, like

John Micenko

you. Thank

Operator

Thank Point. you. from question And Compass Chris our comes Gamaitoni following from

Your is open. line

Chris Gamaitoni

answered. questions my have everyone. been Thanks. All Hi

Claudia Merkle

Thanks, Chris.

Bradley Shuster

Chris. Thanks

Operator

next you. And SunTrust. our Mark with Thank question from comes Hughes

open. Your line is

Michael Ramirez

drove this on guys. Mark. understand us Mike This in questions. for you pretty think is quarter for afternoon much mentioned please Ramirez and you relative strong sustainable? help is Thanks you yield to Good guidance. what performance this the was very Could I guess average taking do our your premium

Adam Pollitzer

Sure.

In year. yield the course the move anticipated basis flat was the -- We through a terms of of at hadn't significant our points. XX

We that a we'd the saw through it, the relative call comparison had the anticipated. higher referenced we revenue We comparison in quarter-to-quarter, a the But see to anticipated. also or what -- would cancellation I'll bit year come we trend than year.

the our smart and of in in shift expectation. only natural part relative so and to modeling, to be mix a see get overall a and above development it is We'll then And insurance-in-force a from modeled benefit just pull-through come in expectation. monthly business just our so premiums. the point It's modeling a right? our towards continue yield We basis refined

Michael Ramirez

that. helpful. right. for Thanks All That's

April? guess may, insight could give I trends origination mortgage you please I to season if how some is in us you for spring shaping And up Additionally, the guys? selling

Adam Pollitzer

don't seasonal the the Look, We we into to -- origination through. honestly, certainly noticed trends continue environment. come overall insights that have

to March So, be was origination different April is than going bit our what is overall than drives March environment. what And the bigger remember, and a than drives market bigger February.

through where coming we market move in strength we're what health would versus refi last is and just The terms is seasonal anticipated purchase-driven end year, movements. market see The that was showing the market. of and Ours much rates. given towards more it in of the purchase a less penetration expanded business obviously But and less of seeing have have is great we market.

and NIW the our that than As optimism have XXXX. it XXXX in we MI seeing stronger that relates to the what a anticipated, saw would to business, industry we're overall the trends alluded we bit Claudia market for will be

Michael Ramirez

great. Okay, guys. Thank you

Operator

question comes Stefano Phil Bank. you. Thank with from our Deutsche last And

line open. is Your

Phil Stefano

Yes. Thanks.

remarks business slow new it process? that Has you a you're existing to momentum opening in some can it hopefully your also Was it's and had Rate speed in has Did this way felt did GPS drive and it discussed had with consultative method Rate with you be there helped transition you of helping the that GPS -- kind it and consultative? the new that customers. ways? shifted consultative Claudia, further using new customers sales business around down and where some like you up talk how in So,

Claudia Merkle

Sure, absolutely.

digital foremost, and by how is engage reduce underwriting And we also to directly lenders their can borrowers. what more ultimately then want lenders map, technology efficiencies it's with map are first how costs. to just to road So, improve their clarify adopting they and out mean

far when with beyond customers insights So, can best ways MI, shine share and help discussions in our we our succeed. and extend best lenders practices we we

roadmap top lenders So, the is digital conversation mind today. of for

point think GPS, a around discussions launching it's the technology. about Rate you If it, for natural

sales, be grow teams engaged operations is understand lenders to and to selling fully help IT our consultative the are that road able digital our So, just here map. and

it's the selling. So, actually consultative fueled

for NMI our lenders. certainly it's and So, been impactful for impactful been

Phil Stefano

it. Got

That's end. from Thanks. my all Okay.

Operator

questions to to no at I'm back call now you. time. the closing like management Thank showing this for I And turn remarks. further would

Claudia Merkle

the joining So, today. thank you us for on call

conference XXth. a will evening. We great We Thanks New May the in presenting have on at York there. to be KBW you seeing forward and look

Operator

Ladies conclude a disconnect. day. you all for in and great today's This may conference. and participating the Everyone, have does thank you gentlemen, program

NMI (NMIH) 5 May 192019 Q1 Earnings call transcript