0001547903-22-000091 | 10-Q | XBRL Viewer

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Reinsurance - ILN Transactions (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Oct. 26, 2021	Apr. 27, 2021	Oct. 29, 2020	Jul. 30, 2020	Jul. 30, 2019	Jul. 25, 2018
2018 ILN Transaction
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
Initial Reinsurance Coverage							$ 264,545
Current Reinsurance Coverage	$ 158,489
Initial First Layer Retained Loss							$ 125,312
Current first layer retained loss	122,403
2019 ILN Transaction
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
Initial Reinsurance Coverage						$ 326,905
Current Reinsurance Coverage	231,877
Initial First Layer Retained Loss						$ 123,424
Current first layer retained loss	122,524
2020-1 ILN Transaction (5)
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
Initial Reinsurance Coverage					$ 322,076
Current Reinsurance Coverage	35,409
Initial First Layer Retained Loss					$ 169,514
Current first layer retained loss	169,463
2020-2 ILN Transaction
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
Initial Reinsurance Coverage				$ 242,351
Current Reinsurance Coverage	140,063
Initial First Layer Retained Loss				$ 121,777
Current first layer retained loss	$ 121,177
Percentage of population with production prior to period start date	1.00%
2021-1 ILN Transaction
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
Initial Reinsurance Coverage			$ 367,238
Current Reinsurance Coverage	$ 359,787
Initial First Layer Retained Loss			$ 163,708
Current first layer retained loss	$ 163,708
Percentage of population with production prior to period start date	1.00%
2021-2 ILN Transaction
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
Initial Reinsurance Coverage		$ 363,596
Current Reinsurance Coverage	$ 363,596
Initial First Layer Retained Loss		$ 146,229
Current first layer retained loss	$ 146,229
Percentage of population with production prior to period start date	2.00%

Subsequent Event	3 Months Ended
Subsequent Event	Mar. 31, 2022
Subsequent Events [Abstract]
Subsequent Event	Subsequent Event Excess-of-loss reinsurance (XOL) Agreement On May 2, 2022, NMIC entered into a reinsurance agreement with a broad panel of highly rated reinsurers that provides for $289.7 million of aggregate excess-of-loss reinsurance coverage at inception for new delinquencies on an existing portfolio of mortgage insurance policies primarily written between October 1, 2021, and March 31, 2022 (2022-1 XOL Transaction). For the reinsurance coverage period, NMIC will retain the first layer of $133.4 million of aggregate losses and reinsurers then provide second layer coverage up to $289.7 million, subject to retained participation limits. NMIC will then retain losses in excess of the outstanding reinsurance coverage amount. Warrants As of March 31, 2022, we had 133 thousand unexercised warrants. They were issued on April 24, 2012 with a contractual term of ten years expiring on April 24, 2022. On April 24, 2022, 90 thousand warrants expired unexercised, resulting in a gain of approximately $0.9 million.

Fair Value of Financial Instruments - Assets and Liabilities at Fair Value (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of securities	$ 1,993,972	$ 2,085,931
U.S. Treasury securities and obligations of U.S. government agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of securities	29,244	30,424
Municipal debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of securities	541,951	554,078
Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of securities	1,340,688	1,393,830
Asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of securities	81,718	96,581
Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash, cash equivalents and short-term investments	131,277	87,664
Total assets	2,124,878	2,162,577
Warrant liability	1,416	2,363
Total liabilities	1,416	2,363
Recurring \| U.S. Treasury securities and obligations of U.S. government agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of securities	29,244	30,424
Recurring \| Municipal debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of securities	541,951	554,078
Recurring \| Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of securities	1,340,688	1,393,830
Recurring \| Asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of securities	81,718	96,581
Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash, cash equivalents and short-term investments	131,277	87,664
Total assets	160,521	118,088
Warrant liability	0	0
Total liabilities	0	0
Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| U.S. Treasury securities and obligations of U.S. government agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of securities	29,244	30,424
Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Municipal debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of securities	0	0
Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of securities	0	0
Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of securities	0	0
Recurring \| Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash, cash equivalents and short-term investments	0	0
Total assets	1,964,357	2,044,489
Warrant liability	0	0
Total liabilities	0	0
Recurring \| Significant Other Observable Inputs (Level 2) \| U.S. Treasury securities and obligations of U.S. government agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of securities	0	0
Recurring \| Significant Other Observable Inputs (Level 2) \| Municipal debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of securities	541,951	554,078
Recurring \| Significant Other Observable Inputs (Level 2) \| Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of securities	1,340,688	1,393,830
Recurring \| Significant Other Observable Inputs (Level 2) \| Asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of securities	81,718	96,581
Recurring \| Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash, cash equivalents and short-term investments	0	0
Total assets	0	0
Warrant liability	1,416	2,363
Total liabilities	1,416	2,363
Recurring \| Significant Unobservable Inputs (Level 3) \| U.S. Treasury securities and obligations of U.S. government agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of securities	0	0
Recurring \| Significant Unobservable Inputs (Level 3) \| Municipal debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of securities	0	0
Recurring \| Significant Unobservable Inputs (Level 3) \| Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of securities	0	0
Recurring \| Significant Unobservable Inputs (Level 3) \| Asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of securities	$ 0	$ 0

Premium Receivable (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
Premium Receivable (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Insurance [Abstract]
Number of days to be written off	120 days
Premium receivable, allowance for credit loss, writeoff	$ 1.8	$ 2.3

Investments - Scheduled Maturities (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Amortized Cost
Due in one year or less	$ 80,129	$ 81,699
Due after one through five years	730,283	630,625
Due after five through ten years	1,180,849	1,215,224
Due after ten years	36,094	54,901
Asset-backed securities	84,514	96,324
Amortized Cost	2,111,869	2,078,773
Fair Value
Due in one year or less	80,274	82,201
Due after one through five years	711,670	644,447
Due after five through ten years	1,087,290	1,207,997
Due after ten years	33,020	54,705
Asset-backed securities	81,718	96,581
Fair Value	$ 1,993,972	$ 2,085,931

Debt - Narrative (Details) - USD ($)				3 Months Ended
Debt - Narrative (Details) - USD ($)	Nov. 29, 2021	Jun. 19, 2020	Mar. 20, 2020	Mar. 31, 2022	Dec. 31, 2021	Nov. 28, 2021	Mar. 19, 2020
Revolving credit facility
Debt Instrument [Line Items]
Commitment fees in interest expense				$ 200,000
2018 Term loan
Debt Instrument [Line Items]
Interest payable				$ 9,800,000	$ 2,500,000
Debt Issuance costs							$ 1,100,000
2020 Revolving credit facility \| Revolving credit facility
Debt Instrument [Line Items]
Credit facility borrowing capacity						$ 110,000,000
Commitment fee (in percent)				0.35%
Remaining deferred issuance costs, net of accumulated amortization				$ 1,500,000
Debt instrument covenant, maximum debt-to-total capitalization ratio				35.00%
2021 Revolving credit facility \| Revolving credit facility
Debt Instrument [Line Items]
Credit facility borrowing capacity	$ 250,000,000
Borrowings outstanding				$ 0
2021 Revolving credit facility \| Revolving credit facility \| Minimum
Debt Instrument [Line Items]
Commitment fee (in percent)			0.175%
2021 Revolving credit facility \| Revolving credit facility \| Maximum
Debt Instrument [Line Items]
Commitment fee (in percent)			0.525%
2021 Revolving credit facility \| Revolving credit facility \| Base rate
Debt Instrument [Line Items]
Variable rate floor (in percent)	1.00%
2021 Revolving credit facility \| Revolving credit facility \| Base rate \| Minimum
Debt Instrument [Line Items]
Basis spread on variable rate (in percent)			0.375%
2021 Revolving credit facility \| Revolving credit facility \| Base rate \| Maximum
Debt Instrument [Line Items]
Basis spread on variable rate (in percent)			1.875%
2021 Revolving credit facility \| Revolving credit facility \| Secured Overnight Financing Rate \| Minimum
Debt Instrument [Line Items]
Basis spread on variable rate (in percent)			1.375%
2021 Revolving credit facility \| Revolving credit facility \| Secured Overnight Financing Rate \| Maximum
Debt Instrument [Line Items]
Basis spread on variable rate (in percent)			2.875%
2018 Revolving credit facility
Debt Instrument [Line Items]
Debt issuance costs							$ 600,000
Secured Debt
Debt Instrument [Line Items]
Senior secured notes				$ 400,000,000
Stated interest rate (in percent)				7.375%
Applicable premium		1.00%
Percent of aggregate balance redeemable with equity offerings		40.00%
Debt issuance costs		$ 7,400,000		$ 5,000,000	$ 5,400,000
Secured Debt \| Prior to March 1, 2025
Debt Instrument [Line Items]
Redemption price (in percent)		100.00%
Secured Debt \| After March 1, 2025
Debt Instrument [Line Items]
Redemption price (in percent)		100.00%
Secured Debt \| Prior to June 1, 2022
Debt Instrument [Line Items]
Redemption price (in percent)		107.375%

Earnings per Share (EPS)

3 Months Ended

Mar. 31, 2022

Earnings Per Share [Abstract]

Earnings per Share (EPS)

Basic EPS is based on the weighted average number of shares of common stock outstanding. Diluted EPS is based on the weighted average number of shares of common stock outstanding and common stock equivalents that would be issuable upon the vesting of service based and performance and service-based restricted stock units (RSUs), and the exercise of vested and unvested stock options and outstanding warrants. The number of shares issuable for RSUs subject to performance and service based vesting requirements are only included in diluted shares if the relevant performance measurement period has commenced and results during such period meet the necessary performance criteria.

The following table reconciles the net income and the weighted average shares of common stock outstanding used in the computations of basic and diluted EPS of common stock:


	For the three months ended March 31,
		2022		2021
		(In Thousands, except for per share data)
Net income		$	67,680	$	52,891
Basic weighted average shares outstanding		85,953		85,317
Basic earnings per share		$	0.79	$	0.62

Net income		$	67,680	$	52,891
Gain from change in fair value of warrant liability		(93)		—
Diluted net income		$	67,587	$	52,891

Basic weighted average shares outstanding		85,953		85,317
Dilutive effect of issuable shares		1,357		1,170
Diluted weighted average shares outstanding		87,310		86,487

Diluted earnings per share		$	0.77	$	0.61

Anti-dilutive shares		8		314

Stockholders' Equity	3 Months Ended
Stockholders' Equity	Mar. 31, 2022
Equity [Abstract]
Stockholders' Equity	Stockholders' EquityOn February 10, 2022, our Board of Directors approved a $125 million share repurchase program effective through December 31, 2023. The authorization provides us the flexibility to repurchase stock from time to time in the open market or in privately negotiated transactions, based on market and business conditions, stock price and other factors. During the three months ended March 31, 2022, we repurchased 235,344 shares pursuant to a trading plan under Rule 10b-18 of the Exchange Act at an average price of $21.23 per share, e

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

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+ Details

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes We are a U.S. taxpayer and are subject to a statutory U.S. federal corporate income tax rate of 21%. NMIH files a consolidated U.S. federal and various state income tax returns on behalf of itself and its subsidiaries. Our effective tax rate on our pre-tax income was 22.0% and 21.6% for the three months ended March 31, 2022 and 2021, respectively. Our provision for income taxes for interim reporting periods is established based on our estimated annual effective tax rate for a given year. Our effective tax rate may fluctuate between interim periods due to the impact of discrete items not included in our estimated annual effective tax rate, including the tax effects associated with the vesting of RSUs and exercise of options, and the change in fair value of our warrant liability. Such items are treated on a discrete basis in the reporting period in which they occur. As a mortgage guaranty insurance company, we are eligible to claim a tax deduction for our statutory contingency reserve balance, subject to certain limitations outlined under IRC Section 832(e), and only to the extent we acquire tax and loss bonds in an amount equal to the tax benefit derived from the claimed deduction, which is our intent. As a result, our interim provision for income taxes for the three months ended March 31, 2022 represents a change in our net deferred tax liability. As of March 31, 2022 and December 31, 2021, we held $89.2 million of tax and loss bonds in "Other assets" on our consolidated balance sheet.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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+ Details

Investments - Corporate Debt Securities by Industry Group (Details)	Mar. 31, 2022	Dec. 31, 2021
Debt Securities By Industry [Line Items]
Corporate debt securities as component of total (percent)	100.00%	100.00%
Financial
Debt Securities By Industry [Line Items]
Corporate debt securities as component of total (percent)	36.00%	38.00%
Consumer
Debt Securities By Industry [Line Items]
Corporate debt securities as component of total (percent)	25.00%	24.00%
Communications
Debt Securities By Industry [Line Items]
Corporate debt securities as component of total (percent)	12.00%	11.00%
Utilities
Debt Securities By Industry [Line Items]
Corporate debt securities as component of total (percent)	10.00%	10.00%
Technology
Debt Securities By Industry [Line Items]
Corporate debt securities as component of total (percent)	9.00%	9.00%
Industrial
Debt Securities By Industry [Line Items]
Corporate debt securities as component of total (percent)	8.00%	8.00%

Reinsurance (Tables)

3 Months Ended

Mar. 31, 2022

Reinsurance Disclosures [Abstract]

Schedule of effects of reinsurance

The effect of our reinsurance agreements on premiums written and earned is as follows:


	For the three months ended
	March 31, 2022		March 31, 2021
	(In Thousands)
Net premiums written
Direct	$	138,872	$	136,232
Ceded (1)	(22,838)		(20,417)
Net premiums written	$	116,034	$	115,815

Net premiums earned
Direct	$	139,716	$	127,643
Ceded (1)	(23,221)		(21,764)
Net premiums earned	$	116,495	$	105,879

(1) Net of profit commission.

The following table shows amounts related to the QSR Transactions:


	For the three months ended
	March 31, 2022		March 31, 2021
	(In Thousands)
Ceded risk-in-force	$	8,504,853	$	6,330,409

Ceded premiums earned	(29,005)		(25,747)
Ceded claims and claim expenses	(159)		1,180

Ceding commission earned	5,886		5,162
Profit commission	16,723		13,380

Schedule of ILN transactions

The following table presents the inception date, covered production period, initial and current reinsurance coverage amount, and initial and current first layer retained aggregate loss under each outstanding ILN Transaction. Current amounts are presented as of March 31, 2022.


($ values in thousands)	Inception Date	Covered Production	Initial Reinsurance Coverage	Current Reinsurance Coverage	Initial First Layer Retained Loss	Current First Layer Retained Loss (1)

2018 ILN Transaction	July 25, 2018	1/1/2017 - 5/31/2018	264,545	158,489	125,312	122,403
2019 ILN Transaction	July 30, 2019	6/1/2018 - 6/30/2019	326,905	231,877	123,424	122,524
2020-1 ILN Transaction (5)	July 30, 2020	7/1/2019 - 3/31/2020	322,076	35,409	169,514	169,463
2020-2 ILN Transaction	October 29, 2020	4/1/2020 - 9/30/2020 (2)	242,351	140,063	121,777	121,177
2021-1 ILN Transaction	April 27, 2021	10/1/2020 - 3/31/2021 (3)	367,238	359,787	163,708	163,708
2021-2 ILN Transaction (6)	October 26, 2021	4/1/2021 - 9/30/2021 (4)	363,596	363,596	146,229	146,229

(1) NMIC applies claims paid on covered policies against its first layer aggregate retained loss exposure and cedes reserves for incurred claims and claim expenses to each applicable ILN Transaction and recognizes a reinsurance recoverable if such incurred claims and claim expenses exceed its current first layer retained loss.

(2) Approximately 1% of the production covered by the 2020-2 ILN Transaction has coverage reporting dates between July 1, 2019 and March 31, 2020.

(3) Approximately 1% of the production covered by the 2021-1 ILN Transaction has coverage reporting dates between July 1, 2019 and September 30, 2020.

(4) Approximately 2% of the production covered by the 2021-2 ILN Transaction has coverage reporting dates between July 1, 2019 and March 31, 2021.

(5) Effective April 25, 2022, NMIC exercised its optional clean-up call to terminate the 2020-1 ILN Transaction. In connection with the termination of the transaction, NMIC’s excess of loss reinsurance agreement with Oaktown Re IV Ltd. was commuted and the insurance-linked notes issued by Oaktown Re IV Ltd. were redeemed in full with a distribution of remaining collateral assets.

(6) As of March 31, 2022, the current reinsurance coverage amount on the 2021-2 ILN Transactions is equal to the initial reinsurance coverage amount, as the reinsurance coverage provided by Oaktown Re VII Ltd. will not begin to amortize until a target credit enhancement level is reached.

Regulatory Information - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2022	Apr. 01, 2022	Dec. 31, 2021
Statutory Accounting Practices [Line Items]
Net income amount	$ 18,600	$ 6,400
Statutory capital	$ 5,600				$ 5,600
Subsequent Event
Statutory Accounting Practices [Line Items]
Aggregate dividend capacity				$ 34,900
Forecast
Statutory Accounting Practices [Line Items]
Aggregate dividend capacity			$ 34,900

Investments - Fair Values and Gross Unrealized Gains and Losses (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 2,111,869	$ 2,078,773
Gross unrealized gains	4,966	30,353
Gross unrealized losses	(122,863)	(23,195)
Fair Value	1,993,972	2,085,931
U.S. Treasury securities and obligations of U.S. government agencies
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	29,443	29,443
Gross unrealized gains	47	981
Gross unrealized losses	(246)	0
Fair Value	29,244	30,424
Municipal debt securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	578,524	553,793
Gross unrealized gains	183	5,689
Gross unrealized losses	(36,756)	(5,404)
Fair Value	541,951	554,078
Corporate debt securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	1,419,017	1,388,204
Gross unrealized gains	4,662	22,990
Gross unrealized losses	(82,991)	(17,364)
Fair Value	1,340,688	1,393,830
Asset-backed securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	84,514	96,324
Gross unrealized gains	74	684
Gross unrealized losses	(2,870)	(427)
Fair Value	81,718	96,581
Total bonds
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	2,111,498	2,067,764
Gross unrealized gains	4,966	30,344
Gross unrealized losses	(122,863)	(23,195)
Fair Value	1,993,601	2,074,913
Short-term investments
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	371	11,009
Gross unrealized gains	0	9
Gross unrealized losses	0	0
Fair Value	$ 371	$ 11,018

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Debt securities, amortized cost	$ 2,111,869	$ 2,078,773
Restricted cash	$ 3,057	$ 3,165
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, issued (in shares)	86,274,184	85,792,849
Common stock, outstanding (in shares)	86,038,840	85,792,849
Common stock, authorized (in shares)	250,000,000	250,000,000
Treasury stock, common shares (in shares)	235,344	0

Reserves for Insurance Claims and Claim Expenses - Narrative (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022 USD ($) loan claim	Dec. 31, 2021 USD ($)	Mar. 31, 2021 USD ($) loan policy	Dec. 31, 2020 USD ($)
Liability for Claims and Claims Adjustment Expense [Line Items]
Primary loans in default \| loan	5,238		11,090
Total gross liability for unpaid claims and claim adjustment expenses	$ 102,372	$ 103,551	$ 96,103	$ 90,567
Number of claims paid \| claim	19
Claims paid, including amounts covered by insurance	$ 400
Default percent (in percent)	0.99%		2.54%
Total number of policies in-force	526,976		436,652
Reserve for prior year insurance claims and claim expenses	$ 89,700
Fannie Mae
Liability for Claims and Claims Adjustment Expense [Line Items]
Number of loans in pool past due 60 days or more \| loan	70
Risk-in-Force of loans in pool past due 60 days or more	$ 5,300
Loan-to-value ratio (less than)	0.80
Claims applied to pool deductible	$ 1,000
Deductible on policy	9,400
QSR transactions
Liability for Claims and Claims Adjustment Expense [Line Items]
Component of claims paid covered under QSR Transaction	$ 100
2016 QSR transaction \| Fannie Mae
Liability for Claims and Claims Adjustment Expense [Line Items]
Percent of pool RIF reinsured	100.00%

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED) - USD ($)
$ in Thousands

Total

Common Stock - Class A

Additional Paid-in Capital

Treasury Stock, At Cost

Accumulated Other Comprehensive Income

Retained Earnings

Beginning balance (in shares) at Dec. 31, 2020

85,163,000

Beginning balance at Dec. 31, 2020

$ 1,369,591

$ 852

$ 937,872

$ 53,856

$ 377,011

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Common stock: class A shares issued related to warrant exercises (in shares)

24,000

23,750

^[1]

Common stock: class A shares issued related to warrant exercises

$ 557

557

Common stock: class A shares issued under stock plans, net of shares withheld for employee taxes (in shares)

413,000

Common stock: class A shares issued under stock plans, net of shares withheld for employee taxes

(620)

$ 4

(624)

Share-based compensation expense

3,022

Change in unrealized investment gains/losses, net of tax benefit/expense

(45,133)

Net income

52,891

Ending balance (in shares) at Mar. 31, 2021

85,600,000

Ending balance at Mar. 31, 2021

1,380,308

$ 856

940,827

8,723

429,902

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Change in unrealized investment gains/losses, tax expense (benefit)

11,997

Beginning balance (in shares) at Dec. 31, 2021

85,793,000

Beginning balance at Dec. 31, 2021

$ 1,565,786

$ 858

955,302

$ 0

1,485

608,141

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Common stock: class A shares issued related to warrant exercises (in shares)

51,000

^[1]

Common stock: class A shares issued related to warrant exercises

$ 1,144

$ 1

1,143

Common stock: class A shares issued under stock plans, net of shares withheld for employee taxes (in shares)

430,000

Common stock: class A shares issued under stock plans, net of shares withheld for employee taxes

$ 4

Repurchase of common stock (in shares)

(235,000)

Repurchase of common stock

(5,000)

Share-based compensation expense

4,196

Change in unrealized investment gains/losses, net of tax benefit/expense

(98,794)

Net income

67,680

Ending balance (in shares) at Mar. 31, 2022

86,039,000

Ending balance at Mar. 31, 2022

1,535,042

$ 863

$ 960,667

$ (5,000)

$ (97,309)

$ 675,821

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Change in unrealized investment gains/losses, tax expense (benefit)

$ 26,262

[1]	During the months ended March 31, 2021, we issued 23,750 common shares with a par value of $0.01 in connection with the exercise of warrants, which is not identifiable in this schedule due to rounding.

Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

Schedule of fair value measurements of financial instruments

The following tables present the level within the fair value hierarchy at which our financial instruments were measured:


	Fair Value Measurements Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Fair Value
As of March 31, 2022	(In Thousands)
U.S. Treasury securities and obligations of U.S. government agencies	$	29,244	$	—	$	—	$	29,244
Municipal debt securities	—		541,951		—		541,951
Corporate debt securities	—		1,340,688		—		1,340,688
Asset-backed securities	—		81,718		—		81,718

Cash, cash equivalents and short-term investments	131,277		—		—		131,277
Total assets	$	160,521	$	1,964,357	$	—	$	2,124,878
Warrant liability	—		—		1,416		1,416
Total liabilities	$	—	$	—	$	1,416	$	1,416


	Fair Value Measurements Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Fair Value
As of December 31, 2021	(In Thousands)
U.S. Treasury securities and obligations of U.S. government agencies	$	30,424	$	—	$	—	$	30,424
Municipal debt securities	—		554,078		—		554,078
Corporate debt securities	—		1,393,830		—		1,393,830
Asset-backed securities	—		96,581		—		96,581

Cash, cash equivalents and short-term investments	87,664		—		—		87,664
Total assets	$	118,088	$	2,044,489	$	—	$	2,162,577
Warrant liability	—		—		2,363		2,363
Total liabilities	$	—	$	—	$	2,363	$	2,363

Roll-forward of level 3 liabilities measured at fair value

The following table provides a roll-forward of Level 3 liabilities measured at fair value:


	For the three months ended March 31,
Warrant Liability	2022		2021
	(In Thousands)
Balance, January 1	$	2,363	$	4,409
Change in fair value of warrant liability included in earnings	(93)		205

Issuance of common stock on warrant exercise	(854)		(375)
Balance, March 31	$	1,416	$	4,239

Schedule of key inputs and assumptions in option-pricing model

The following table outlines the key inputs and assumptions used to calculate the fair value of the warrant liability in the Black-Scholes option-pricing model as of the dates indicated:


	As of March 31,
	2022			2021
Common stock price	$	20.62		$	23.64
Risk free interest rate	0.17		%	0.08		%
Expected life	0.06 years			1.06 years
Expected volatility	40.2		%	89.4		%
Dividend yield	0		%	0		%

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details

Reserves for Insurance Claims and Claim Expenses (Tables)

3 Months Ended

Mar. 31, 2022

Insurance [Abstract]

Reconciliation of liability for insurance claims and (benefits) claim expenses

The following table provides a reconciliation of the beginning and ending gross reserve balances for primary insurance claims and claim (benefits) expenses:


	For the three months ended March 31,
	2022		2021
	(In Thousands)
Beginning balance	$	103,551	$	90,567
Less reinsurance recoverables (1)	(20,320)		(17,608)
Beginning balance, net of reinsurance recoverables	83,231		72,959

Add claims incurred:
Claims and claim (benefits) expenses incurred:
Current year (2)	10,080		10,557
Prior years (3)	(10,699)		(5,595)
Total claims and claim (benefits) expenses incurred	(619)		4,962

Less claims paid:
Claims and claim expenses paid:
Current year (2)	—		12
Prior years (3)	320		492

Total claims and claim expenses paid	320		504

Reserve at end of period, net of reinsurance recoverables	82,292		77,417
Add reinsurance recoverables (1)	20,080		18,686
Ending balance	$	102,372	$	96,103

(1) Related to ceded losses recoverable under the QSR Transactions. See Note 5, "Reinsurance" for additional information.

(2) Related to insured loans with their most recent defaults occurring in the current year. For example, if a loan defaulted in a prior year and subsequently cured and later re-defaulted in the current year, the default would be included in the current year. Amounts are presented net of reinsurance and included $5.2 million attributed to net case reserves and $4.7 million attributed to net IBNR reserves for the three months ended March 31, 2022 and $5.3 million attributed to net case reserves and $5.3 million attributed to net IBNR reserves for the three months ended March 31, 2021.

(3) Related to insured loans with defaults occurring in prior years, which have been continuously in default before the start of the current year. Amounts are presented net of reinsurance and included $5.8 million attributed to net case reserves and $4.7 million attributed to net IBNR reserves for the three months ended March 31, 2022 and $0.6 million attributed to net case reserves and $5.0 million attributed to net IBNR reserves for the three months ended March 31, 2021.

Reinsurance

3 Months Ended

Mar. 31, 2022

Reinsurance Disclosures [Abstract]

Reinsurance

ReinsuranceWe enter into third-party reinsurance transactions to actively manage our risk, ensure compliance with PMIERs, state regulatory and other applicable capital requirements, (respectively, as defined therein), and support the growth of our business. The Wisconsin Office of the Commissioner of Insurance (Wisconsin OCI) has approved and the GSEs have indicated their non-objection to all such transactions (subject to certain conditions and ongoing review, including levels of approved capital credit).

The effect of our reinsurance agreements on premiums written and earned is as follows:


	For the three months ended
	March 31, 2022		March 31, 2021
	(In Thousands)
Net premiums written
Direct	$	138,872	$	136,232
Ceded (1)	(22,838)		(20,417)
Net premiums written	$	116,034	$	115,815

Net premiums earned
Direct	$	139,716	$	127,643
Ceded (1)	(23,221)		(21,764)
Net premiums earned	$	116,495	$	105,879

(1) Net of profit commission.

Excess-of-loss reinsurance

NMIC is a party to reinsurance agreements with Oaktown Re Ltd., Oaktown Re II Ltd., Oaktown Re III Ltd., Oaktown Re IV Ltd., Oaktown Re V Ltd., Oaktown Re VI Ltd., and Oaktown Re VII Ltd. (special purpose reinsurance entities collectively referred to as the Oaktown Re Vehicles) effective May 2, 2017, July 25, 2018, July 30, 2019, July 30, 2020, October 29, 2020, April 27, 2021, and October 26, 2021, respectively. Each agreement provides NMIC with aggregate excess-of-loss reinsurance coverage on a defined portfolio of mortgage insurance policies. Under each agreement, NMIC retains a first layer of aggregate loss exposure on covered policies and the respective Oaktown Re Vehicle then provides second layer loss protection up to a defined reinsurance coverage amount. NMIC then retains losses in excess of the respective reinsurance coverage amounts.

NMIC makes risk premium payments to the Oaktown Re Vehicles for the applicable outstanding reinsurance coverage amount and pays an additional amount for anticipated operating expenses (capped at $250 thousand per year, except with respect to Oaktown Re Ltd., for which the cap is $300 thousand per year). NMIC ceded aggregate premiums to the Oaktown Re Vehicles of $10.9 million and $9.4 million during the three months ended March 31, 2022 and 2021, respectively. The increase in premiums ceded year-on-year is due to the inception of the excess-of-loss reinsurance agreements that NMIC entered in with Oaktown Re VI Ltd. and Oaktown VII Ltd.

NMIC applies claims paid on covered policies against its first layer aggregate retained loss exposure under each excess-of-loss agreement. NMIC did not cede any incurred losses on covered policies to the Oaktown Re Vehicles during the three months ended March 31, 2022 and 2021, as the aggregate first layer risk retention for each applicable agreement was not exhausted during such periods.

Under the terms of each excess-of-loss reinsurance agreement, the Oaktown Re Vehicles are required to fully collateralize their outstanding reinsurance coverage amount to NMIC with funds deposited into segregated reinsurance trusts. Such trust funds are required to be invested in short-term U.S. Treasury money market funds at all times. Each Oaktown Re Vehicle financed its respective collateral requirement through the issuance of mortgage insurance-linked notes to unaffiliated investors. Such insurance-linked notes mature ten years from the inception date of each reinsurance agreement (except the notes issued by Oaktown Re VI Ltd. and Oaktown Re VII Ltd., which have a 12.5-year maturity). We refer to NMIC's reinsurance agreements with and the insurance-linked note issuances by Oaktown Re Vehicles individually as the 2017 ILN Transaction, 2018 ILN Transaction, 2019 ILN Transaction, 2020-1 ILN Transaction, 2020-2 ILN Transaction, 2021-1 ILN Transaction, and 2021-2 ILN Transaction, and collectively as the ILN Transactions.

The respective reinsurance coverage amounts provided by the Oaktown Re Vehicles decrease over a ten-year period as the underlying insured mortgages are amortized or repaid, and/or the mortgage insurance coverage is canceled (except the coverage provided by Oaktown Re VI Ltd. and Oaktown Re VII Ltd., which decreases over a 12.5-year period). As the reinsurance coverage decreases, a prescribed amount of collateral held in trust by the Oaktown Re Vehicles is distributed to ILN Transaction note-holders as amortization of the outstanding insurance-linked note principal balances. The outstanding reinsurance coverage amounts stop amortizing, and the collateral distribution to ILN Transaction note-holders and amortization of insurance-linked note principal is suspended if certain credit enhancement or delinquency thresholds, as defined in each agreement, are triggered (each, a Lock-Out Event). As of March 31, 2022, the 2018 and 2019 ILN Transactions were deemed to be in Lock Out

due to the default experience of the underlying reference pools for each respective transaction and the 2021-2 ILN Transaction was deemed to be in Lock Out in connection with the initial build of its target credit enhancement level. As such, the amortization of reinsurance coverage, and distribution of collateral assets and amortization of insurance-linked notes was suspended for each ILN Transaction. The amortization of reinsurance coverage, distribution of collateral assets and amortization of insurance-linked notes issued in connection with the 2018, 2019 and 2021-2 ILN Transactions will remain suspended for the duration of the Lock-Out Event for each respective ILN Transaction, and during such period assets will be preserved in the applicable reinsurance trust account to collateralize the excess-of-loss reinsurance coverage provided to NMIC.

NMIC holds optional termination rights under each ILN Transaction, including, among others, an optional call feature which provides NMIC the discretion to terminate the transaction on or after a prescribed date, and a clean-up call if the outstanding reinsurance coverage amount amortizes to 10% or less of the reinsurance coverage amount at inception or if NMIC reasonably determines that changes to GSE or rating agency asset requirements would cause a material and adverse effect on the capital treatment afforded to NMIC under a given agreement. In addition, there are certain events that trigger mandatory termination of an agreement, including NMIC's failure to pay premiums or consent to reductions in a trust account to make principal payments to note-holders, among others.

Effective March 25, 2022, NMIC exercised its optional clean-up call to terminate the 2017 ILN Transaction. In connection with the termination of the transaction, NMIC’s excess of loss reinsurance agreement with Oaktown Re Ltd. was commuted and the insurance-linked notes issued by Oaktown Re Ltd. were redeemed in full with a distribution of remaining collateral assets.


($ values in thousands)	Inception Date	Covered Production	Initial Reinsurance Coverage	Current Reinsurance Coverage	Initial First Layer Retained Loss	Current First Layer Retained Loss (1)

2018 ILN Transaction	July 25, 2018	1/1/2017 - 5/31/2018	264,545	158,489	125,312	122,403
2019 ILN Transaction	July 30, 2019	6/1/2018 - 6/30/2019	326,905	231,877	123,424	122,524
2020-1 ILN Transaction (5)	July 30, 2020	7/1/2019 - 3/31/2020	322,076	35,409	169,514	169,463
2020-2 ILN Transaction	October 29, 2020	4/1/2020 - 9/30/2020 (2)	242,351	140,063	121,777	121,177
2021-1 ILN Transaction	April 27, 2021	10/1/2020 - 3/31/2021 (3)	367,238	359,787	163,708	163,708
2021-2 ILN Transaction (6)	October 26, 2021	4/1/2021 - 9/30/2021 (4)	363,596	363,596	146,229	146,229

(2) Approximately 1% of the production covered by the 2020-2 ILN Transaction has coverage reporting dates between July 1, 2019 and March 31, 2020.

(3) Approximately 1% of the production covered by the 2021-1 ILN Transaction has coverage reporting dates between July 1, 2019 and September 30, 2020.

(4) Approximately 2% of the production covered by the 2021-2 ILN Transaction has coverage reporting dates between July 1, 2019 and March 31, 2021.

Under the terms of our ILN Transactions, we are required to maintain a certain level of restricted funds in premium deposit accounts with Bank of New York Mellon until the respective notes have been redeemed in full. "Cash and cash equivalents" on our consolidated balance sheet includes restricted amounts of $3.1 million and $3.2 million as of March 31, 2022 and December 31, 2021, respectively. The restricted balances required under these transactions will decline over time as the outstanding principal balance of the respective insurance-linked notes are amortized.

Quota share reinsurance

NMIC is a party to five active quota share reinsurance treaties – the 2016 QSR Transaction, effective September 1, 2016, the 2018 QSR Transaction, effective January 1, 2018, the 2020 QSR Transaction, effective April 1, 2020, the 2021 QSR Transaction, effective January 1, 2021, and the 2022 QSR Transaction, effective October 1, 2021 – which we refer to collectively as the QSR Transactions. Under each of the QSR Transactions, NMIC cedes a proportional share of its risk on eligible policies written during a discrete period to panels of third-party reinsurance providers. Each of the third-party reinsurance providers has an insurer financial strength rating of A- or better by Standard & Poor's Rating Service (S&P), A.M. Best Company, Inc. (A.M. Best) or both.

Under the terms of the 2016 QSR Transaction, NMIC cedes premiums written related to 25% of the risk on eligible primary policies written for all periods through December 31, 2017 and 100% of the risk under our pool agreement with Fannie Mae. The 2016 QSR Transaction is scheduled to terminate on December 31, 2027, except with respect to the ceded pool risk, which is scheduled to terminate on August 31, 2023. NMIC has the option, based on certain conditions and subject to a termination fee, to terminate the agreement as of December 31, 2020, or at the end of any calendar quarter thereafter, which would result in NMIC recapturing the related risk.

Under the terms of the 2018 QSR Transaction, NMIC cedes premiums earned related to 25% of the risk on eligible policies written in 2018 and 20% of the risk on eligible policies written in 2019. The 2018 QSR Transaction is scheduled to terminate on December 31, 2029. NMIC has the option, based on certain conditions and subject to a termination fee, to terminate the agreement as of December 31, 2022, or at the end of any calendar quarter thereafter, which would result in NMIC recapturing the related risk.

Under the terms of the 2020 QSR Transaction, NMIC cedes premiums earned related to 21% of the risk on eligible policies written from April 1, 2020 to December 31, 2020. The 2020 QSR Transaction is scheduled to terminate on December 31, 2030. NMIC has the option, based on certain conditions and subject to a termination fee, to terminate the agreement as of December 31, 2023, or at the end of any calendar quarter thereafter, which would result in NMIC recapturing the related risk.

Under the terms of the 2021 QSR Transaction, NMIC cedes premiums earned related to 22.5% of the risk on eligible policies written from January 1, 2021 to October 30, 2021. The 2021 QSR Transaction is scheduled to terminate on December 31, 2031. NMIC has the option, based on certain conditions and subject to a termination fee, to terminate the agreement as of December 31, 2024, or at the end of any calendar quarter thereafter, which would result in NMIC recapturing the related risk.

Under the terms of the 2022 QSR Transaction, NMIC cedes premiums earned related to 20% of the risk on eligible policies written primarily between October 30, 2021 and December 31, 2022. The 2022 QSR Transaction is scheduled to terminate on December 31, 2032. NMIC has the option, based on certain conditions and subject to a termination fee, to terminate the agreement as of December 31, 2025 or semi-annually thereafter, which would result in NMIC recapturing the related risk.

In connection with the 2022 QSR Transaction, NMIC entered into an additional back-to-back quota share agreement that is scheduled to incept on January 1, 2023 (the 2023 QSR Transaction). Under the terms of the 2023 QSR Transactions, NMIC will cede premiums earned related to 20% of the risk on eligible policies written in 2023.

NMIC may terminate any or all of the QSR Transactions without penalty if, due to a change in PMIERs requirements, it is no longer able to take full PMIERs asset credit for the risk-in-force (RIF) ceded under the respective agreements. Additionally, under the terms of the QSR Transactions, NMIC may elect to selectively terminate its engagement with individual reinsurers on a run-off basis (i.e., reinsurers continue providing coverage on all risk ceded prior to the termination date, with no new cessions going forward) or cut-off basis (i.e., the reinsurance arrangement is completely terminated with NMIC recapturing all previously ceded risk) under certain circumstances. Such selective termination rights arise when, among other reasons, a reinsurer experiences a deterioration in its capital position below a prescribed threshold and/or a reinsurer breaches (and fails to cure) its collateral posting obligations under the relevant agreement.

Effective April 1, 2019, NMIC elected to terminate its engagement with one reinsurer under the 2016 QSR Transaction on a cut-off basis. In connection with the termination, NMIC recaptured approximately $500 million of previously ceded primary RIF and stopped ceding new premiums earned or written with respect to the recaptured risk. With the termination, ceded premiums written under the 2016 QSR Transaction decreased from 25% to 20.5% on eligible policies. The termination has no effect on the cession of pool risk under the 2016 QSR Transaction.

The following table shows amounts related to the QSR Transactions:


	For the three months ended
	March 31, 2022		March 31, 2021
	(In Thousands)
Ceded risk-in-force	$	8,504,853	$	6,330,409

Ceded premiums earned	(29,005)		(25,747)
Ceded claims and claim expenses	(159)		1,180

Ceding commission earned	5,886		5,162
Profit commission	16,723		13,380

Ceded premiums written under the 2016 QSR Transaction are recorded on the balance sheet as prepaid reinsurance premiums and amortized to ceded premiums earned in a manner consistent with the recognition of revenue on direct premiums. Under all other QSR Transactions, premiums are ceded on an earned basis as defined in the agreement. NMIC receives a 20% ceding commission for premiums ceded under the QSR Transactions. NMIC also receives a profit commission under each of the QSR Transactions, provided that the loss ratios on loans covered under the 2016, 2018, 2020, 2021 and 2022 QSR Transactions, generally remain below 60%, 61%, 50% and 57.5% and 62%, respectively, as measured annually. Ceded claims and claim expenses under each of the QSR Transactions reduce the respective profit commission received by NMIC on a dollar-for-dollar basis.

In accordance with the terms of the 2016 QSR Transaction, rather than making a cash payment or transferring investments for ceded premiums written, NMIC established a funds withheld liability, which also includes amounts due to NMIC for ceding and profit commissions. Any loss recoveries and any potential profit commission to NMIC will be realized from this account until exhausted. NMIC's reinsurance recoverable balance is further supported by trust accounts established and maintained by each reinsurer in accordance with the PMIERs funding requirements for risk ceded to non-affiliates. The reinsurance recoverable on loss reserves related to the 2016 QSR Transaction was $4.6 million as of March 31, 2022.

In accordance with the terms of the 2018, 2020, 2021 and 2022 QSR Transactions, cash payments for ceded premiums earned are settled on a quarterly basis, offset by amounts due to NMIC for ceding and profit commissions. Any loss recoveries and any potential profit commission to NMIC are also recognized quarterly. NMIC's reinsurance recoverable balance is supported by trust accounts established and maintained by each reinsurer in accordance with the PMIERs funding requirements for risk ceded to non-affiliates. The aggregate reinsurance recoverable on loss reserves related to the 2018, 2020, 2021 and 2022 QSR Transactions was $15.5 million as of March 31, 2022.

We remain directly liable for all claim payments if we are unable to collect reinsurance recoverable due from our reinsurers and, as such, we actively monitor and manage our counterparty credit exposure to our reinsurance providers. We establish an allowance for expected credit loss against our reinsurance recoverable if we do not expect to recover amounts due from one or more of our reinsurance counterparties, and report our reinsurance recoverable net of such allowance, if any. We actively monitor the counterparty credit profiles of our reinsurers and each is required to partially collateralize its obligations under the terms of our QSR Transactions. The allowance for credit loss established on our reinsurance recoverable was deemed immaterial at March 31, 2022 and December 31, 2021.

Reinsurance - Effect of Reinsurance Agreements on Premiums Written and Earned (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Net premiums written
Direct	$ 138,872	$ 136,232
Ceded	(22,838)	(20,417)
Net premiums written	116,034	115,815
Net premiums earned
Direct	139,716	127,643
Ceded	(23,221)	(21,764)
Net premiums earned	$ 116,495	$ 105,879

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021
Assets
Fixed maturities, available-for-sale, at fair value (amortized cost of $2,111,869 and $2,078,773 as of March 31, 2022 and December 31, 2021, respectively)	$ 1,993,972	$ 2,085,931
Cash and cash equivalents (including restricted cash of $3,057 and $3,165 as of March 31, 2022 and December 31, 2021, respectively)	130,906	76,646	$ 115,517
Premiums receivable	60,526	60,358
Accrued investment income	12,421	11,900
Prepaid expenses	5,477	3,530
Deferred policy acquisition costs, net	59,727	59,584
Software and equipment, net	32,386	32,047
Intangible assets and goodwill	3,634	3,634
Prepaid reinsurance premiums	2,011	2,393
Reinsurance recoverable	20,080	20,320
Other assets	102,804	94,238
Total assets	2,423,944	2,450,581
Liabilities
Debt	394,969	394,623
Unearned premiums	138,393	139,237
Accounts payable and accrued expenses	76,923	72,000
Reserve for insurance claims and claim expenses	102,372	103,551	96,103
Reinsurance funds withheld	5,343	5,601
Warrant liability, at fair value	1,416	2,363
Deferred tax liability, net	156,966	164,175
Other liabilities	12,520	3,245
Total liabilities	888,902	884,795
Commitments and contingencies
Shareholders' equity
Common Stock, Value, Outstanding	863	858
Additional paid-in capital	960,667	955,302
Treasury Stock, at cost, 235,344 and 0 common shares as of March 31, 2022 and December 31, 2021, respectively	(5,000)		0
Accumulated other comprehensive (loss) income, net of tax	(97,309)	1,485
Retained earnings	675,821	608,141
Total shareholders' equity	1,535,042	1,565,786	$ 1,380,308
Total liabilities and shareholders' equity	$ 2,423,944	$ 2,450,581

Organization, Basis of Presentation and Summary of Accounting Principles - Narrative (Details)	Mar. 31, 2022 state
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of states in which the entity operates	50

Stockholders' Equity (Details) - USD ($)	3 Months Ended
Stockholders' Equity (Details) - USD ($)	Mar. 31, 2022	Feb. 10, 2022
Equity [Abstract]
Stock repurchase program, authorized amount		$ 125,000,000
Repurchased shares (in shares)	235,344
Shares repurchased, average price per share (in dollar per share)	$ 21.23

Premium Receivable	3 Months Ended
Premium Receivable	Mar. 31, 2022
Insurance [Abstract]
Premium Receivable	Premium Receivable Premiums receivable consists of premiums due on our mortgage insurance policies. If a mortgage insurance premium is unpaid for more than 120 days, the associated receivable is written off against earned premium and the related insurance policy is canceled. We recognize an allowance for credit losses for premiums receivable based on credit losses expected to arise over the life of the receivable. Due to the nature of our insurance policies (a necessary precondition for access to mortgage credit for covered borrowers) and the short duration of the related receivables, we do not typically experience credit losses against our premium receivables and the allowance for credit loss established on premium receivable was deemed immaterial at March 31, 2022 and December 31, 2021. Premiums receivable may be written off prior to 120 days in the ordinary course of business for non-credit events including, but not limited to, the modification or refinancing of an underlying insured loan. We established a $1.8 million and $2.3 million reserve for premium write-offs at March 31, 2022 and December 31, 2021, respectively.

Investments

3 Months Ended

Mar. 31, 2022

Investments, Debt and Equity Securities [Abstract]

Investments

InvestmentsWe hold all investments on an available-for-sale basis and evaluate each position quarterly for impairment. We recognize an impairment on a security through the statement of operations if (i) we intend to sell the impaired security; or (ii) it is more likely than not that we will be required to sell the impaired security prior to recovery of its amortized cost basis. If a sale is intended or likely to be required, we write down the amortized cost basis of the security to fair value and recognize the full amount of the impairment through the consolidated statement of operations and comprehensive income as a "Net Realized Investment Loss." To the extent we determine that a security impairment is credit-related, an impairment loss is recognized through the statement of operations as a provision for credit loss expense. The portion of a security impairment attributed to other non-credit related factors is recognized in other comprehensive income, net of taxes.

Fair Values and Gross Unrealized Gains and Losses on Investments


	Amortized Cost		Gross Unrealized				Fair Value
			Gains		Losses
As of March 31, 2022	(In Thousands)
U.S. Treasury securities and obligations of U.S. government agencies	$	29,443	$	47	$	(246)	$	29,244
Municipal debt securities	578,524		183		(36,756)		541,951
Corporate debt securities	1,419,017		4,662		(82,991)		1,340,688
Asset-backed securities	84,514		74		(2,870)		81,718
Total bonds	2,111,498		4,966		(122,863)		1,993,601

Short-term investments	371		—		—		371
Total investments	$	2,111,869	$	4,966	$	(122,863)	$	1,993,972


	Amortized Cost		Gross Unrealized				Fair Value
			Gains		Losses
As of December 31, 2021	(In Thousands)
U.S. Treasury securities and obligations of U.S. government agencies	$	29,443	$	981	$	—	$	30,424
Municipal debt securities	553,793		5,689		(5,404)		554,078
Corporate debt securities	1,388,204		22,990		(17,364)		1,393,830
Asset-backed securities	96,324		684		(427)		96,581
Total bonds	2,067,764		30,344		(23,195)		2,074,913

Short-term investments	11,009		9		—		11,018
Total investments	$	2,078,773	$	30,353	$	(23,195)	$	2,085,931

We did not own any mortgage-backed securities in our asset-backed securities portfolio at March 31, 2022 or December 31, 2021.

The following table presents a breakdown of the fair value of our corporate debt securities by issuer industry group as of March 31, 2022 and December 31, 2021:


	March 31, 2022		December 31, 2021
Financial	36	%	38	%
Consumer	25		24
Communications	12		11
Utilities	10		10
Technology	9		9
Industrial	8		8


Total	100	%	100	%

As of March 31, 2022 and December 31, 2021, approximately $5.5 million and $5.6 million, respectively, of our cash and investments were held in the form of U.S. Treasury securities on deposit with various state insurance departments to satisfy regulatory requirements.

Scheduled Maturities

The amortized cost and fair value of available-for-sale securities as of March 31, 2022 and December 31, 2021, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Because most asset-backed securities provide for periodic payments throughout their lives, they are listed below in a separate category.


As of March 31, 2022	Amortized Cost		Fair Value
	(In Thousands)
Due in one year or less	$	80,129	$	80,274
Due after one through five years	730,283		711,670
Due after five through ten years	1,180,849		1,087,290
Due after ten years	36,094		33,020
Asset-backed securities	84,514		81,718
Total investments	$	2,111,869	$	1,993,972


As of December 31, 2021	Amortized Cost		Fair Value
	(In Thousands)
Due in one year or less	$	81,699	$	82,201
Due after one through five years	630,625		644,447
Due after five through ten years	1,215,224		1,207,997
Due after ten years	54,901		54,705
Asset-backed securities	96,324		96,581
Total investments	$	2,078,773	$	2,085,931

Aging of Unrealized Losses

As of March 31, 2022, the investment portfolio had gross unrealized losses of $122.9 million, of which $29.0 million were associated with securities that had been in an unrealized loss position for a period of twelve-months or longer. As of December 31, 2021, the investment portfolio had gross unrealized losses of $23.2 million, of which $6.5 million were associated with securities that had been in an unrealized loss position for a period of twelve-months or longer. For those securities in an unrealized loss position, the length of time the securities were in such a position is as follows:


	Less Than 12 Months					12 Months or Greater					Total
	# of Securities	Fair Value		Unrealized Losses		# of Securities	Fair Value		Unrealized Losses		# of Securities	Fair Value		Unrealized Losses
As of March 31, 2022		(Dollars in Thousands)
U.S. Treasury securities and obligations of U.S. government agencies	12	$	24,105	$	(246)	—	$	—	$	—	12	$	24,105	$	(246)
Municipal debt securities	214	466,969		(33,508)		17	27,711		(3,248)		231	494,680		(36,756)
Corporate debt securities	188	791,585		(57,405)		35	228,605		(25,586)		223	1,020,190		(82,991)
Asset-backed securities	20	63,494		(2,678)		1	1,852		(192)		21	65,346		(2,870)

Total	434	$	1,346,153	$	(93,837)	53	$	258,168	$	(29,026)	487	$	1,604,321	$	(122,863)


	Less Than 12 Months					12 Months or Greater					Total
	# of Securities	Fair Value		Unrealized Losses		# of Securities	Fair Value		Unrealized Losses		# of Securities	Fair Value		Unrealized Losses
As of December 31, 2021		(Dollars in Thousands)

Municipal debt securities	151	$	314,823	$	(4,959)	2	$	8,138	$	(445)	153	$	322,961	$	(5,404)
Corporate debt securities	114	653,488		(11,426)		20	146,003		(5,938)		134	799,491		(17,364)
Asset-backed securities	11	57,601		(357)		1	1,977		(70)		12	59,578		(427)
Total	276	$	1,025,912	$	(16,742)	23	$	156,118	$	(6,453)	299	$	1,182,030	$	(23,195)

Allowance for credit losses

As of March 31, 2022 and December 31, 2021, we did not recognize an allowance for credit loss for any security in the investment portfolio and we did not record any provision for credit loss for investment securities during the three months ended March 31, 2022 or 2021.

The increase in the number of securities in and the aggregate size of the unrealized loss position as of March 31, 2022, was primarily driven by interest rate movements following the purchase date of certain securities. We evaluated the securities in an unrealized loss position as of March 31, 2022, assessing their credit ratings as well as any adverse conditions specifically related to the security. Based upon our estimate of the amount and timing of cash flows to be collected over the remaining life of each instrument, we believe the unrealized losses as of March 31, 2022 are not indicative of the ultimate collectability of the current amortized cost of the securities.

Net Investment Income

The following table presents the components of net investment income:


	For the three months ended March 31,
	2022		2021
	(In Thousands)
Investment income	$	10,532	$	9,225
Investment expenses	(333)		(411)
Net investment income	$	10,199	$	8,814

The following table presents the components of net realized investment gains:


	For the three months ended March 31,
	2022		2021
	(In Thousands)
Gross realized investment gains	$	409	$	—
Gross realized investment losses	(1)		—
Net realized investment gains	$	408	$	—

Fair Value of Financial Instruments - Rollforward of Level 3 Liabilities (Details) - Significant Unobservable Inputs (Level 3) - Warrant liability - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Roll-forward of Level 3 liabilities:
Beginning balance	$ 2,363	$ 4,409
Change in fair value of warrant liability included in earnings	(93)	205
Issuance of common stock on warrant exercise	(854)	(375)
Ending balance	$ 1,416	$ 4,239

Debt	3 Months Ended
Debt	Mar. 31, 2022
Debt Disclosure [Abstract]
Debt	Debt Senior Secured Notes At March 31, 2022, we had $400.0 million aggregate principal amount of senior secured notes outstanding. The Notes were issued pursuant to an indenture dated June 19, 2020 (the Indenture) and bear interest at a rate of 7.375%, payable semi-annually on June 1 and December 1. The Notes mature on June 1, 2025. At any time, or from time to time, prior to March 1, 2025, we may elect to redeem the Notes in whole or in part at a price based on 100% of the aggregate principal amount of any Notes redeemed plus the "Applicable Premium," plus accrued and unpaid interest thereon. Applicable Premium is defined as the greater of (1) 1.0% of the principal amount of the Notes, or (2) the excess of the present value of the principal value of the Notes plus all future interest payments over the principal amount. At any time on or after March 1, 2025, we may elect to redeem the Notes in whole or in part at a price equal to 100% of the aggregate principal amount of the Notes to be redeemed plus accrued and unpaid interest thereon. From time to time prior to June 1, 2022, we may also elect to use proceeds raised from one or more equity offerings to redeem up to 40% of the aggregate principal amount of the Notes at a price equal to 107.375% of the aggregate principal amount thereof plus accrued and unpaid interest thereon, subject to certain exceptions. Interest expense for the Notes includes interest and the amortization of capitalized debt issuance costs. In connection with the Notes offering, we recorded capitalized debt issuance costs of $7.4 million. Such amounts will be amortized over the contractual life of the Notes using the effective interest method. At March 31, 2022 and December 31, 2021, approximately $5.0 million and $5.4 million, respectively, of unamortized debt issuance costs remained. At March 31, 2022 and December 31, 2021, $9.8 million and $2.5 million, respectively, of accrued and unpaid interest on the Notes was included in "Accounts Payable and Accrued Expenses" on the consolidated balance sheet. 2021 Revolving Credit Facility On November 29, 2021, we amended our $110 million senior secured revolving credit facility (the 2020 Revolving Credit Facility and as amended, the 2021 Revolving Credit Facility), expanding the lender group, increasing the revolving capacity to $250 million, and extending the maturity from February 22, 2023 to the earlier of (x) November 29, 2025, or (y) if any existing senior secured notes remain outstanding on such date, February 28, 2025. Borrowings under the 2021 Revolving Credit Facility may be used for general corporate purposes, including to support the growth of our new business production and operations, and accrue interest at a variable rate equal to, at our discretion, (i) a Base Rate (as defined in the 2021 Revolving Credit Facility) subject to a floor of 1.00% per annum) plus a margin of 0.375% to 1.875% per annum or (ii) the Adjusted Term SOFR Rate (as defined in the 2021 Revolving Credit Facility) plus a margin of 1.375% to 2.875% per annum, with the margin in each of (i) or (ii) based on our applicable corporate credit rating at the time. As of March 31, 2022, no amount was drawn under the 2021 Revolving Credit Facility. Under the 2021 Revolving Credit Facility, we are required to pay a quarterly commitment fee on the average daily undrawn amount of 0.175% to 0.525%, based on the applicable corporate credit rating at the time. As of March 31, 2022, the applicable commitment fee was 0.35%. For the three months ended March 31, 2022, we recorded $0.2 million of commitment fees in interest expense. We incurred debt issuance costs of $1.1 million in connection with the 2021 Revolving Credit Facility, and had $0.6 million of unamortized debt issuance costs associated with the 2020 Revolving Credit Facility remaining at the time of its amendment and replacement. Combined unamortized debt issuance will be amortized through interest expense on a straight-line basis over the contractual life of the 2021 Revolving Credit Facility. At March 31, 2022, remaining unamortized deferred debt issuance costs were $1.5 million. We are subject to certain covenants under the 2021 Revolving Credit Facility, including, but not limited to, the following: a maximum debt-to-total capitalization ratio of 35%, compliance with the private mortgage insurer eligibility requirements (PMIERs) financial requirements (subject to any GSE approved waivers), and minimum consolidated net worth and statutory capital requirements (respectively, as defined therein). We were in compliance with all covenants at March 31, 2022.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-URI http://asc.fasb.org/topic&trid=2208564

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (h)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (g)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section 50
-Paragraph 1E
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495348-112611

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (i)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

+ Details

Subsequent Event (Details) - USD ($) shares in Thousands, $ in Millions	May 02, 2022	Apr. 24, 2022	Mar. 31, 2022
Subsequent Event [Line Items]
Class of warrant or right, outstanding (in shares)			133
Warrants contract term			10 years
Subsequent Event
Subsequent Event [Line Items]
Amount reinsured	$ 289.7
Amount retained	133.4
Second layer amount reinsured	$ 289.7
Warrants expired unexercised during period (in shares)		90
Warrants expired unexercised resulting in gain (loss) during period		$ 0.9

Reinsurance - Amounts Related to QSR Transactions (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Ceded Credit Risk [Line Items]
Ceded premiums earned	$ (23,221)	$ (21,764)
Third-party reinsurers
Ceded Credit Risk [Line Items]
Ceded risk-in-force	8,504,853	6,330,409
Ceded premiums earned	(29,005)	(25,747)
Ceded claims and claim expenses	(159)	1,180
Ceding commission earned	5,886	5,162
Profit commission	$ 16,723	$ 13,380

Organization, Basis of Presentation and Summary of Accounting Principles (Policies)	3 Months Ended
	Mar. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements, which include the results of NMIH and its wholly owned subsidiaries, have been prepared in accordance with the instructions to Form 10-Q as prescribed by the SEC for interim reporting and include other information and disclosures required by accounting principles generally accepted in the U.S. (GAAP). Our accounts are maintained in U.S. dollars. These statements should be read in conjunction with our consolidated financial statements and notes thereto for the year ended December 31, 2021, included in our 2021 10-K. All intercompany transactions have been eliminated. Certain reclassifications to previously reported financial information have been made to conform to our current period presentation. The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities, as well as disclosure of contingent assets and liabilities as of the balance sheet date. Estimates also affect the reported amounts of income and expenses for the reporting period. Actual results could differ from those estimates. The results of operations for the interim period may not be indicative of the results that may be expected for the full year ending December 31, 2022.
Share Repurchases	Share Repurchases Common stock repurchases are recorded at cost and presented as "Treasury Stock" in the consolidated balance sheet and statement of changes in shareholders' equity. At the date of repurchase, shareholders' equity is reduced by the aggregate repurchase price plus commissions and other expenses that arise from the repurchase transaction.
Recent Accounting Pronouncements	Recent Accounting Pronouncements - Adopted In August 2020, the Financial Accounting Standards Board (the FASB) issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging— Contracts in Entity's Own Equity (Subtopic 815-40). The update simplifies the accounting for convertible instruments and contracts on an entity's own equity, including warrants, eliminating certain triggers for derivative accounting. We adopted this ASU on January 1, 2022 and determined it did not have a material impact on our consolidated financial statements, including our warrant liability. Recent Accounting Pronouncements - Not Yet Adopted In August 2018, the FASB issued ASU 2018-12, Targeted Improvements to the Accounting for Long-Duration Contracts (Topic 944). The update provides guidance to the existing recognition, measurement, presentation and disclosure requirements for long-duration contracts issued by an insurance entity. The FASB subsequently issued ASU 2019-09 in November 2019 and ASU 2020-11 in November 2020, which amended the effective date for this standard and provided transition relief to facilitate early application for long duration contracts. The standard will now take effect for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. We are currently evaluating the impact the adoption of this ASU will have, if any, on our consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848). The update provides optional guidance to ease the potential burden in accounting for reference rate reform on financial reporting. Reference rate reform refers to the global transition away from referencing the London Interbank Offered Rate (LIBOR) in financial contracts, which is expected to be discontinued during a transition period from 2021 through 2023. The ASU includes optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. This standard may be elected and applied prospectively over time from March 12, 2020 through December 31, 2022 as reference rate reform activities occur. We continue to monitor the impact the discontinuance of LIBOR will have on our contracts and other transactions; however, the adoption of, and future elections under, this ASU, are not expected to have a material impact on our consolidated financial statements as the ASU will ease, if warranted, the requirements for accounting for the future effects of the rate reform.
Earnings Per Share	Basic EPS is based on the weighted average number of shares of common stock outstanding. Diluted EPS is based on the weighted average number of shares of common stock outstanding and common stock equivalents that would be issuable upon the vesting of service based and performance and service-based restricted stock units (RSUs), and the exercise of vested and unvested stock options and outstanding warrants. The number of shares issuable for RSUs subject to performance and service based vesting requirements are only included in diluted shares if the relevant performance measurement period has commenced and results during such period meet the necessary performance criteria. The following table reconciles the net income and the weighted average shares of common stock outstanding used in the computations of basic and diluted EPS of common stock:
Premiums Receivable	Premium Receivable Premiums receivable consists of premiums due on our mortgage insurance policies. If a mortgage insurance premium is unpaid for more than 120 days, the associated receivable is written off against earned premium and the related insurance policy is canceled. We recognize an allowance for credit losses for premiums receivable based on credit losses expected to arise over the life of the receivable. Due to the nature of our insurance policies (a necessary precondition for access to mortgage credit for covered borrowers) and the short duration of the related receivables, we do not typically experience credit losses against our premium receivables and the allowance for credit loss established on premium receivable was deemed immaterial at March 31, 2022 and December 31, 2021. Premiums receivable may be written off prior to 120 days in the ordinary course of business for non-credit events including, but not limited to, the modification or refinancing of an underlying insured loan. We established a $1.8 million and $2.3 million reserve for premium write-offs at March 31, 2022 and December 31, 2021, respectively.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED) (Parenthetical) - USD ($)
$ in Thousands

3 Months Ended

Mar. 31, 2022

Mar. 31, 2021

Dec. 31, 2021

Change in unrealized investment gains/losses, tax expense (benefit)

$ (26,262)

$ (11,997)

Common stock: class A shares issued related to warrant exercises (in shares)

51,000

24,000

Common stock, par value (in dollars per share)

$ 0.01

Common stock

Common stock: class A shares issued related to warrant exercises (in shares)

^[1]

51,000

23,750

Common stock, par value (in dollars per share)

$ 0.01

[1]	During the months ended March 31, 2021, we issued 23,750 common shares with a par value of $0.01 in connection with the exercise of warrants, which is not identifiable in this schedule due to rounding.

Reserves for Insurance Claims and Claim Expenses

3 Months Ended

Mar. 31, 2022

Insurance [Abstract]

Reserves for Insurance Claims and Claim Expenses

We hold gross reserves in an amount equal to the estimated liability for insurance claims and claim expenses related to defaults on insured mortgage loans. A loan is considered to be in "default" as of the payment date at which a borrower has missed the preceding two or more consecutive monthly payments. We establish reserves for loans that have been reported to us in default by servicers, referred to as case reserves, and additional loans that we estimate (based on actuarial review and other factors) to be in default that have not yet been reported to us by servicers, referred to as incurred but not reported (IBNR) reserves. We also establish reserves for claim expenses, which represent the estimated cost of the claim administration process, including legal and other fees, as well as other general expenses of administering the claim settlement process. As of March 31, 2022, we had 5,238 primary loans in default and held gross reserves for insurance claims and claim expenses of $102.4 million. During the three months ended March 31, 2022, we paid 19 claims totaling $0.4 million, all of which were covered under the QSR Transactions representing $0.1 million of ceded claims and claim expenses.

In 2013, we entered into a pool insurance transaction with Fannie Mae. The pool transaction includes a deductible, which represents the amount of claims to be absorbed by Fannie Mae before we are obligated to pay any claims. We only establish reserves for pool risk if we expect claims to exceed this deductible. At March 31, 2022, 70 loans in the pool were in default.

These 70 loans represented approximately $5.3 million of RIF. Due to the size of the remaining deductible, our expectation that a limited number of loans in default will progress to a claim and the expected severity on such claim submissions (all loans in the pool had loan-to-value (LTV) ratios under 80% at origination), we did not establish any case or IBNR reserves for pool risk at March 31, 2022. In connection with the settlement of pool claims, we applied $1.0 million to the pool deductible through March 31, 2022. At March 31, 2022, the remaining pool deductible was $9.4 million. We have not paid any pool claims to date. 100% of our pool RIF is reinsured under the 2016 QSR Transaction.

We had 5,238 loans in default in our primary insured portfolio as of March 31, 2022, which represented a 0.99% default rate against 526,976 total policies in-force. We had 11,090 loans in default in our primary insured portfolio as of March 31, 2021, which represented a 2.54% default rate against 436,652 total policies in-force. Although our default count declined from March 31, 2021 to March 31, 2022, the population remains elevated compared to our historical experience due to the continued challenges certain borrowers are facing related to the COVID-19 pandemic and their decision to access the forbearance program for federally backed loans codified under the Coronavirus Aid, Relief and Economic Security (CARES) Act or similar programs made available by private lenders.

The size of the reserve we establish for each defaulted loan (and by extension our aggregate reserve for claims and claim expenses) reflects our best estimate of the future claim payment to be made for each individual loan in default. Our future claims exposure is a function of the number of defaulted loans that progress to claim payment (which we refer to as frequency) and the amount to be paid to settle such claims (which we refer to as severity). Our estimates of claims frequency and severity are not formulaic, rather they are broadly synthesized based on historical observed experience for similarly situated loans and assumptions about future macroeconomic factors. We generally observe that forbearance programs are an effective tool to bridge dislocated borrowers from a time of acute stress to a future date when they can resume timely payment of their mortgage obligations. The effectiveness of forbearance programs is enhanced by the availability of various repayment and loan modification options which allow borrowers to amortize or, in certain instances, outright defer payments otherwise due during the forbearance period over an extended length of time. In response to the COVID-19 pandemic, the FHFA and GSEs introduced new repayment and loan modification options to further assist borrowers with their transition out of forbearance programs and default status.

Our reserve setting process considers the beneficial impact of forbearance, foreclosure moratorium and other assistance programs available to defaulted borrowers. At March 31, 2022 and 2021, we generally established lower reserves for defaults that we consider to be connected to the COVID-19 pandemic given our expectation that forbearance, repayment and modification, and other assistance programs will aid affected borrowers and drive higher cure rates on such defaults than we would otherwise expect to experience on similarly situated loans that did not benefit from broad-based assistance programs.

The following table provides a reconciliation of the beginning and ending gross reserve balances for primary insurance claims and claim (benefits) expenses:


	For the three months ended March 31,
	2022		2021
	(In Thousands)
Beginning balance	$	103,551	$	90,567
Less reinsurance recoverables (1)	(20,320)		(17,608)
Beginning balance, net of reinsurance recoverables	83,231		72,959

Add claims incurred:
Claims and claim (benefits) expenses incurred:
Current year (2)	10,080		10,557
Prior years (3)	(10,699)		(5,595)
Total claims and claim (benefits) expenses incurred	(619)		4,962

Less claims paid:
Claims and claim expenses paid:
Current year (2)	—		12
Prior years (3)	320		492

Total claims and claim expenses paid	320		504

Reserve at end of period, net of reinsurance recoverables	82,292		77,417
Add reinsurance recoverables (1)	20,080		18,686
Ending balance	$	102,372	$	96,103

(1) Related to ceded losses recoverable under the QSR Transactions. See Note 5, "Reinsurance" for additional information.

The "claims incurred" section of the table above shows claims and claim (benefits) expenses incurred on defaults occurring in current and prior years, including IBNR reserves and is presented net of reinsurance. We may increase or decrease our claim estimates and reserves as we learn additional information about individual defaulted loans, and continue to observe and analyze loss development trends in our portfolio. Gross reserves of $89.7 million related to prior year defaults remained as of March 31, 2022.

Earnings per Share (EPS) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Earnings per Share, Basic [Abstract]
Net income	$ 67,680	$ 52,891
Basic weighted average shares outstanding (in shares)	85,953	85,317
Basic earnings per share (in dollars per share)	$ 0.79	$ 0.62
Earnings per Share, Diluted [Abstract]
Net income	$ 67,680	$ 52,891
Gain from change in fair value of warrant liability	(93)	0
Diluted net income	$ 67,587	$ 52,891
Basic weighted average shares outstanding (in shares)	85,953	85,317
Dilutive effect of issuable shares (in shares)	1,357	1,170
Dilutive weighted average shares outstanding (in shares)	87,310	86,487
Diluted earnings per share (in dollars per share)	$ 0.77	$ 0.61
Anti-dilutive shares (in shares)	8	314

Leases - Narrative (Details)	3 Months Ended
Leases - Narrative (Details)	Mar. 31, 2022 USD ($) lease_agreement	Mar. 31, 2021 USD ($)	Dec. 31, 2021 USD ($)
Lessee, Lease, Description [Line Items]
Number of operating leases related to corporate headquarters and data center facility \| lease_agreement	2
Lease liabilities	$ 12,221,000
Finance lease	0		$ 0
Right-of-use assets obtained in exchange for new operating lease liabilities	9,700,000
Cash paid on operating leases	29,000	$ 600,000
Operating lease expense	$ 500,000	$ 600,000
Corporate Headquarters
Lessee, Lease, Description [Line Items]
Operating lease option to renew, term	5 years
Corporate Headquarters and Data Facility Lease 1
Lessee, Lease, Description [Line Items]
Right-of-use assets	$ 11,300,000
Lease liabilities	$ 12,200,000
Corporate Headquarters and Data Facility Lease 2
Lessee, Lease, Description [Line Items]
Right-of-use assets			2,600,000
Lease liabilities			$ 2,900,000
Minimum
Lessee, Lease, Description [Line Items]
Operating lease terms	2 years
Maximum
Lessee, Lease, Description [Line Items]
Operating lease terms	8 years

Warrants	3 Months Ended
Warrants	Mar. 31, 2022
Debt Disclosure [Abstract]
Warrants	Warrants We issued 992 thousand warrants in connection with a private placement of our common stock in April 2012, of which 133 thousand remained outstanding available for exercise at March 31, 2022. Each warrant gives the holder thereof the right to purchase one share of common stock at an exercise price equal to $10.00. The warrants were issued with an aggregate fair value of $5.1 million. During the three months ended March 31, 2022, 66 thousand warrants were exercised resulting in the issuance of 51 thousand shares of common stock. Upon exercise, we reclassified approximately $0.9 million of warrant fair value from warrant liability to additional paid-in capital. During the three months ended March 31, 2021, 27 thousand warrants were exercised resulting in the issuance of 24 thousand shares of common stock. Upon exercise, we reclassified approximately $0.4 million of warrant fair value from warrant liability to additional paid-in capital.

Fair Value of Financial Instruments

3 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

The following describes the valuation techniques used by us to determine the fair value of our financial instruments:

We established a fair value hierarchy by prioritizing the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under this standard are described below:

Level 1 - Fair value measurements based on quoted prices in active markets that we have the ability to access for identical assets or liabilities. Market price data generally is obtained from exchange or dealer markets. We do not adjust the quoted price for such instruments.

Level 2 - Fair value measurements based on inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals.

Level 3 - Fair value measurements based on valuation techniques that use significant inputs that are unobservable. Both observable and unobservable inputs may be used to determine the fair values of positions classified in Level 3. The circumstances for using these measurements include those in which there is little, if any, market activity for the asset or liability. Therefore, we must make certain assumptions, which require significant management judgment or estimation about the inputs a hypothetical market participant would use to value that asset or liability.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

Assets classified as Level 1 and Level 2

To determine the fair value of securities available-for-sale in Level 1 and Level 2 of the fair value hierarchy, independent pricing sources have been utilized. One price is provided per security based on observable market data. To ensure securities are appropriately classified in the fair value hierarchy, we review the pricing techniques and methodologies of the independent pricing sources and believe that their policies adequately consider market activity, either based on specific transactions for the issue valued or based on modeling of securities with similar credit quality, duration, yield and structure that were recently traded. A variety of inputs are utilized by the independent pricing sources including benchmark yields, reported trades, non-binding broker/dealer quotes, issuer spreads, two sided markets, benchmark securities, bids, offers and reference data including data published in market research publications. Inputs may be weighted differently for any security, and not all inputs are used for each security evaluation. Market indicators, industry and economic events are also considered. This information is evaluated using a multidimensional pricing model. Quality controls are performed by the independent pricing sources throughout this process, which include reviewing tolerance reports, trading information and data changes, and directional moves compared to market moves. This model combines all inputs to arrive at a value assigned to each security. We have not made any adjustments to the prices obtained from the independent pricing sources.

Liabilities classified as Level 3

We calculate the fair value of outstanding warrants utilizing Level 3 inputs, including a Black-Scholes option-pricing model, in combination with a binomial model, and we value the pricing protection features within the warrants using a Monte-Carlo simulation model. Variables in the model include the risk-free rate of return, dividend yield, expected life and expected volatility of our stock price.

The following tables present the level within the fair value hierarchy at which our financial instruments were measured:


	Fair Value Measurements Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Fair Value
As of March 31, 2022	(In Thousands)
U.S. Treasury securities and obligations of U.S. government agencies	$	29,244	$	—	$	—	$	29,244
Municipal debt securities	—		541,951		—		541,951
Corporate debt securities	—		1,340,688		—		1,340,688
Asset-backed securities	—		81,718		—		81,718

Cash, cash equivalents and short-term investments	131,277		—		—		131,277
Total assets	$	160,521	$	1,964,357	$	—	$	2,124,878
Warrant liability	—		—		1,416		1,416
Total liabilities	$	—	$	—	$	1,416	$	1,416


	Fair Value Measurements Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Fair Value
As of December 31, 2021	(In Thousands)
U.S. Treasury securities and obligations of U.S. government agencies	$	30,424	$	—	$	—	$	30,424
Municipal debt securities	—		554,078		—		554,078
Corporate debt securities	—		1,393,830		—		1,393,830
Asset-backed securities	—		96,581		—		96,581

Cash, cash equivalents and short-term investments	87,664		—		—		87,664
Total assets	$	118,088	$	2,044,489	$	—	$	2,162,577
Warrant liability	—		—		2,363		2,363
Total liabilities	$	—	$	—	$	2,363	$	2,363

There were no transfers between Level 2 and Level 3 of the fair value hierarchy during the three months ended March 31, 2022, or the year ended December 31, 2021.

The following table provides a roll-forward of Level 3 liabilities measured at fair value:


	For the three months ended March 31,
Warrant Liability	2022		2021
	(In Thousands)
Balance, January 1	$	2,363	$	4,409
Change in fair value of warrant liability included in earnings	(93)		205

Issuance of common stock on warrant exercise	(854)		(375)
Balance, March 31	$	1,416	$	4,239

The following table outlines the key inputs and assumptions used to calculate the fair value of the warrant liability in the Black-Scholes option-pricing model as of the dates indicated:


	As of March 31,
	2022			2021
Common stock price	$	20.62		$	23.64
Risk free interest rate	0.17		%	0.08		%
Expected life	0.06 years			1.06 years
Expected volatility	40.2		%	89.4		%
Dividend yield	0		%	0		%

The changes in fair value of the warrant liability for the three months ended March 31, 2022 and 2021 were driven by the exercise of outstanding warrants, as well as changes in the price of our common stock and other Black-Scholes model inputs during the respective periods.

Financial Instruments not Measured at Fair Value

On June 19, 2020, we issued $400.0 million aggregate principal amount of senior secured notes that mature on June 1, 2025 (the Notes) and used a portion of the proceeds from the Notes offering to repay the outstanding amount due under our $150 million term loan (2018 Term Loan). At March 31, 2022, the Notes were carried at a cost of $395.0 million, net of unamortized debt issuance costs of $5.0 million, and had a fair value of $421.0 million as assessed under our Level 2 hierarchy. At December 31, 2021, the Notes were carried at a cost of $394.6 million, net of unamortized debt issuance costs of $5.4 million, and had a fair value of $454.6 million.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Reserves for Insurance Claims and Claim (Benefits) Expenses - Reconciliation of Reserve Balances for Insurance Claims and Claim Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward]
Beginning balance	$ 103,551	$ 90,567
Less reinsurance recoverables	20,320	17,608
Beginning balance, net of reinsurance recoverables	83,231	72,959
Claims and claim (benefits) expenses incurred:
Current year	10,080	10,557
Prior years	(10,699)	(5,595)
Total claims and claim (benefits) expenses incurred	(619)	4,962
Claims and claim expenses paid:
Current year	0	12
Prior years	320	492
Total claims and claim expenses paid	320	504
Reserve at end of period, net of reinsurance recoverables	82,292	77,417
Add reinsurance recoverables	20,080	18,686
Ending balance	102,372	96,103
Current year case reserves	5,200	5,300
Current year IBNR	4,700	5,300
Prior year case reserves	5,800	600
Prior year, IBNR	$ 4,700	$ 5,000

Reinsurance - Narrative (Details) - USD ($) $ in Thousands			3 Months Ended
Reinsurance - Narrative (Details) - USD ($) $ in Thousands	Apr. 01, 2019	Mar. 31, 2019	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2018	Mar. 31, 2016	Dec. 31, 2021	Dec. 31, 2020
Ceded Credit Risk [Line Items]
Reinsurance coverage amount amortized (as a percent)			10.00%
Restricted cash			$ 3,057					$ 3,165
Reinsurance recoverable on unpaid claims			20,080	$ 18,686				$ 20,320	$ 17,608
2018 QSR transaction
Ceded Credit Risk [Line Items]
Reinsurance recoverable on unpaid claims			15,500
2020 QSR transaction
Ceded Credit Risk [Line Items]
Reinsurance recoverable on unpaid claims			15,500
2021 QSR Transaction
Ceded Credit Risk [Line Items]
Reinsurance recoverable on unpaid claims			15,500
2022 QSR Transaction
Ceded Credit Risk [Line Items]
Reinsurance recoverable on unpaid claims			$ 15,500
Third-party reinsurers \| QSR transactions
Ceded Credit Risk [Line Items]
Percentage of ceding commission received			20.00%
Third-party reinsurers \| Eligible policies, pool one
Ceded Credit Risk [Line Items]
Percent of premiums ceded under QSR Transaction		25.00%
Third-party reinsurers \| Fannie Mae
Ceded Credit Risk [Line Items]
Percent of premiums ceded under QSR Transaction			100.00%
Third-party reinsurers \| Risk written policies in 2018
Ceded Credit Risk [Line Items]
Percent of premiums earned under 2018 QSR Transaction			25.00%
Third-party reinsurers \| Risk written policies in 2019
Ceded Credit Risk [Line Items]
Percent of premiums ceded under QSR Transaction			20.00%
Third-party reinsurers \| Risk written policies in 2020
Ceded Credit Risk [Line Items]
Percent of premiums earned under 2018 QSR Transaction			21.00%
Third-party reinsurers \| Risk written policies in 2021
Ceded Credit Risk [Line Items]
Percent of premiums earned under 2018 QSR Transaction			22.50%
Third-party reinsurers \| Risk written policies in 2022
Ceded Credit Risk [Line Items]
Percent of premiums earned under 2018 QSR Transaction			20.00%
Third-party reinsurers \| Risk written policies in 2023
Ceded Credit Risk [Line Items]
Percent of premiums earned under 2018 QSR Transaction			20.00%
Third-party reinsurers \| 2016 QSR transaction
Ceded Credit Risk [Line Items]
Previously ceded primary RIF recaptured	$ 500,000
Threshold for loss ratio on loans to qualify for profit commission							60.00%
Reinsurance recoverable on unpaid claims			$ 4,600
Third-party reinsurers \| 2018 QSR transaction
Ceded Credit Risk [Line Items]
Threshold for loss ratio on loans to qualify for profit commission						61.00%
Third-party reinsurers \| 2020 QSR transaction
Ceded Credit Risk [Line Items]
Threshold for loss ratio on loans to qualify for profit commission					50.00%
Third-party reinsurers \| 2021 QSR Transaction
Ceded Credit Risk [Line Items]
Threshold for loss ratio on loans to qualify for profit commission				57.50%
Third-party reinsurers \| 2022 QSR Transaction
Ceded Credit Risk [Line Items]
Threshold for loss ratio on loans to qualify for profit commission			62.00%
Third-party reinsurers \| 2017 ILN transaction
Ceded Credit Risk [Line Items]
Risk premiums paid			$ 10,900	$ 9,400
Maximum
Ceded Credit Risk [Line Items]
Reinsurance coverage, term of underlying mortgage amortization (in years)			12 years 6 months
Maximum \| Third-party reinsurers \| 2016 QSR transaction
Ceded Credit Risk [Line Items]
Percent of premiums ceded under QSR Transaction	20.50%	25.00%
Maximum \| Third-party reinsurers \| 2017 ILN transaction
Ceded Credit Risk [Line Items]
Anticipated payment related to annual operating expenses			$ 250
Maximum \| Third-party reinsurers \| 2018 ILN transaction
Ceded Credit Risk [Line Items]
Anticipated payment related to annual operating expenses			$ 300
Minimum
Ceded Credit Risk [Line Items]
Reinsurance coverage, term of underlying mortgage amortization (in years)			10 years

Investments (Tables)

3 Months Ended

Mar. 31, 2022

Investments, Debt and Equity Securities [Abstract]

Schedule of fair values and gross unrealized gains and losses

Fair Values and Gross Unrealized Gains and Losses on Investments


	Amortized Cost		Gross Unrealized				Fair Value
			Gains		Losses
As of March 31, 2022	(In Thousands)
U.S. Treasury securities and obligations of U.S. government agencies	$	29,443	$	47	$	(246)	$	29,244
Municipal debt securities	578,524		183		(36,756)		541,951
Corporate debt securities	1,419,017		4,662		(82,991)		1,340,688
Asset-backed securities	84,514		74		(2,870)		81,718
Total bonds	2,111,498		4,966		(122,863)		1,993,601

Short-term investments	371		—		—		371
Total investments	$	2,111,869	$	4,966	$	(122,863)	$	1,993,972


	Amortized Cost		Gross Unrealized				Fair Value
			Gains		Losses
As of December 31, 2021	(In Thousands)
U.S. Treasury securities and obligations of U.S. government agencies	$	29,443	$	981	$	—	$	30,424
Municipal debt securities	553,793		5,689		(5,404)		554,078
Corporate debt securities	1,388,204		22,990		(17,364)		1,393,830
Asset-backed securities	96,324		684		(427)		96,581
Total bonds	2,067,764		30,344		(23,195)		2,074,913

Short-term investments	11,009		9		—		11,018
Total investments	$	2,078,773	$	30,353	$	(23,195)	$	2,085,931

Schedule of investments by industry group

The following table presents a breakdown of the fair value of our corporate debt securities by issuer industry group as of March 31, 2022 and December 31, 2021:


	March 31, 2022		December 31, 2021
Financial	36	%	38	%
Consumer	25		24
Communications	12		11
Utilities	10		10
Technology	9		9
Industrial	8		8


Total	100	%	100	%

Schedule of investments by maturity


As of March 31, 2022	Amortized Cost		Fair Value
	(In Thousands)
Due in one year or less	$	80,129	$	80,274
Due after one through five years	730,283		711,670
Due after five through ten years	1,180,849		1,087,290
Due after ten years	36,094		33,020
Asset-backed securities	84,514		81,718
Total investments	$	2,111,869	$	1,993,972


As of December 31, 2021	Amortized Cost		Fair Value
	(In Thousands)
Due in one year or less	$	81,699	$	82,201
Due after one through five years	630,625		644,447
Due after five through ten years	1,215,224		1,207,997
Due after ten years	54,901		54,705
Asset-backed securities	96,324		96,581
Total investments	$	2,078,773	$	2,085,931

Schedule of aging unrealized losses

For those securities in an unrealized loss position, the length of time the securities were in such a position is as follows:


	Less Than 12 Months					12 Months or Greater					Total
	# of Securities	Fair Value		Unrealized Losses		# of Securities	Fair Value		Unrealized Losses		# of Securities	Fair Value		Unrealized Losses
As of March 31, 2022		(Dollars in Thousands)
U.S. Treasury securities and obligations of U.S. government agencies	12	$	24,105	$	(246)	—	$	—	$	—	12	$	24,105	$	(246)
Municipal debt securities	214	466,969		(33,508)		17	27,711		(3,248)		231	494,680		(36,756)
Corporate debt securities	188	791,585		(57,405)		35	228,605		(25,586)		223	1,020,190		(82,991)
Asset-backed securities	20	63,494		(2,678)		1	1,852		(192)		21	65,346		(2,870)

Total	434	$	1,346,153	$	(93,837)	53	$	258,168	$	(29,026)	487	$	1,604,321	$	(122,863)


	Less Than 12 Months					12 Months or Greater					Total
	# of Securities	Fair Value		Unrealized Losses		# of Securities	Fair Value		Unrealized Losses		# of Securities	Fair Value		Unrealized Losses
As of December 31, 2021		(Dollars in Thousands)

Municipal debt securities	151	$	314,823	$	(4,959)	2	$	8,138	$	(445)	153	$	322,961	$	(5,404)
Corporate debt securities	114	653,488		(11,426)		20	146,003		(5,938)		134	799,491		(17,364)
Asset-backed securities	11	57,601		(357)		1	1,977		(70)		12	59,578		(427)
Total	276	$	1,025,912	$	(16,742)	23	$	156,118	$	(6,453)	299	$	1,182,030	$	(23,195)

Schedule of components of net investment income

The following table presents the components of net investment income:


	For the three months ended March 31,
	2022		2021
	(In Thousands)
Investment income	$	10,532	$	9,225
Investment expenses	(333)		(411)
Net investment income	$	10,199	$	8,814

Schedule of net realized investment losses

The following table presents the components of net realized investment gains:


	For the three months ended March 31,
	2022		2021
	(In Thousands)
Gross realized investment gains	$	409	$	—
Gross realized investment losses	(1)		—
Net realized investment gains	$	408	$	—

Leases - Future Payment Due Under Operating Leases (Details) $ in Thousands	Mar. 31, 2022 USD ($)
Future Payment Due Under Operating Leases
Remaining in 2022	$ 131
2023	2,096
2024	2,080
2025	2,128
2026	2,190
2027	2,256
2028	2,322
2029	2,392
2030	603
Total undiscounted lease payments	16,198
Less effects of discounting	(3,977)
Present value of lease payments	$ 12,221

Leases

3 Months Ended

Mar. 31, 2022

Leases [Abstract]

Leases

We have two operating lease agreements related to our corporate headquarters and a data center facility for which we recognized operating right-of-use (ROU) assets and lease liabilities of $11.3 million and $12.2 million in "Other assets" and "Other liabilities," respectively, on our consolidated balance sheet as of March 31, 2022. As of December 31, 2021, we recognized operating ROU assets and lease liabilities of $2.6 million and $2.9 million, respectively. As of March 31, 2022 and December 31, 2021, we did not have any finance leases.

In January 2022, we modified the lease for our corporate headquarters, securing a reduction in pricing and incremental leasehold improvement concessions, reducing the square footage of leased space and extending the remaining term through March 2030. In February 2022, we renewed the lease of our data center facility, extending its term through January 2024. Upon the respective modification and extension, the ROU asset and liability associated with each lease was remeasured, using our current estimated incremental borrowing rate, resulting in an aggregate increase to ROU assets and lease liabilities of $9.7 million during the three months ended March 31, 2022.

The following table provides a summary of our ROU asset and lease liability assumptions as of March 31, 2022:


Weighted-average remaining lease term	7.8 years
Weighted-average discount rate	6.50	%

Cash paid on our operating leases for the three months ended March 31, 2022 and 2021, was $29 thousand and $0.6 million, respectively. Lease expenses incurred for the three months ended March 31, 2022 and 2021, were $0.5 million and $0.6 million, respectively.

Future payments due under our existing operating leases as of March 31, 2022 are as follows:


	($ In Thousands)

Remaining in 2022	$	131
2023	2,096
2024	2,080
2025	2,128
2026	2,190
2027	2,256
2028	2,322
2029	2,392
2030	603
Total undiscounted lease payments	16,198
Less effects of discounting	(3,977)
Present value of lease payments	$	12,221

Lease expense is recorded in underwriting and operating expenses on the consolidated statements of operations and comprehensive income. Our existing leases have terms ranging from two to eight years. The lease for our corporate headquarters includes an option to renew for an additional five years at prevailing market rates at the time of renewal. This renewal option is not included in the calculation of future lease payments due under the existing lease as presented above as it is not reasonably certain to be exercised.

Regulatory Information (Tables)

3 Months Ended

Mar. 31, 2022

Insurance [Abstract]

Schedule of statutory net income (loss), surplus, contingency reserve and risk-to-capital ratio

The following table presents NMIC's statutory surplus, contingency reserve, statutory capital and risk-to-capital (RTC) ratio as of March 31, 2022 and December 31, 2021.



	March 31, 2022		December 31, 2021
	(In Thousands)
Statutory surplus	$	873,259	$	893,848
Contingency reserve	1,106,497		1,036,639
Statutory capital (1)	$	1,979,756	$	1,930,487

Risk-to-capital	12.4:1		11.6:1

(1) Represents the total of the statutory surplus and contingency reserve.

- Definition

Tabular disclosure of how the entity's reporting under GAAP as of the balance sheet date differs from the results based on prescribed and permitted accounting practices of the state or country of domicile in which a relevant statutory filing is made, or differences in results based on the National Association of Insurance Commissioners (NAIC) prescribed practices, or a combination thereof. Describes the accounting practices used and the related monetary effect on statutory surplus, net income, and risk-based capital. If an insurance enterprise's risk-based capital would have triggered a regulatory event had it not used a permitted practice, that fact is disclosed in the financial statements. Permitted statutory accounting practices include practices not prescribed but allowed by the domiciliary state insurance department regulatory authority.

+ References + Details

Fair Value of Financial Instruments - Valuation Assumptions for Warrant Liabilities (Details)	Mar. 31, 2022 $ / shares	Mar. 31, 2021 $ / shares
Key Inputs and Assumptions, Valuation Techniques
Warrant liability, expected life	10 years
Significant Unobservable Inputs (Level 3) \| Valuation technique, option pricing model \| Common stock price
Key Inputs and Assumptions, Valuation Techniques
Warrant liability, measurement input	20.62	23.64
Significant Unobservable Inputs (Level 3) \| Valuation technique, option pricing model \| Risk free interest rate
Key Inputs and Assumptions, Valuation Techniques
Warrant liability, measurement input	0.0017	0.0008
Significant Unobservable Inputs (Level 3) \| Valuation technique, option pricing model \| Expected life
Key Inputs and Assumptions, Valuation Techniques
Warrant liability, expected life	21 days	1 year 21 days
Significant Unobservable Inputs (Level 3) \| Valuation technique, option pricing model \| Expected volatility
Key Inputs and Assumptions, Valuation Techniques
Warrant liability, measurement input	0.402	0.894
Significant Unobservable Inputs (Level 3) \| Valuation technique, option pricing model \| Dividend yield
Key Inputs and Assumptions, Valuation Techniques
Warrant liability, measurement input	0	0

Warrants (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021	Apr. 30, 2012
Debt Disclosure [Abstract]
Warrants issued (in shares)				992,000
Class of warrant or right, outstanding (in shares)	133,000
Right to purchase, number of shares per warrant (in shares)				1
Exercise price of warrants (in dollars per warrant)				$ 10.00
Warrant liability, at fair value	$ 1,416		$ 2,363	$ 5,100
Warrants exercised (in shares)	66,000	27,000
Stock issued upon exercise of warrants (in shares)	51,000	24,000
Fair value of warrant liability reclassified to additional paid in capital upon exercise	$ 900	$ 400

Leases - Right-of-Use Asset and Lease Liability Assumptions (Details)	Mar. 31, 2022
Leases [Abstract]
Weighted-average remaining lease term (in years)	7 years 9 months 18 days
Weighted-average discount rate	6.50%

Organization, Basis of Presentation and Summary of Accounting Principles	3 Months Ended
	Mar. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization, Basis of Presentation and Summary of Accounting Principles	Organization, Basis of Presentation and Summary of Accounting Principles NMI Holdings, Inc. (NMIH) is a Delaware corporation, incorporated in May 2011, to provide private mortgage guaranty insurance (which we refer to as mortgage insurance or MI) through its wholly owned insurance subsidiaries, National Mortgage Insurance Corporation (NMIC) and National Mortgage Reinsurance Inc One (Re One). Our common stock is listed on the Nasdaq exchange under the ticker symbol "NMIH". NMIC, our primary insurance subsidiary, issued its first mortgage insurance policy in April 2013. NMIC is licensed to write mortgage insurance in all 50 states and the District of Columbia (D.C.). Re One historically provided reinsurance coverage to NMIC in accordance with certain statutory risk retention requirements. Such requirements have been repealed and the reinsurance coverage provided by Re One to NMIC has been commuted. Re One remains a wholly owned, licensed insurance subsidiary; however, it does not currently have active insurance exposures. In August 2015, NMIH capitalized a wholly owned subsidiary, NMI Services, Inc. (NMIS), through which we offer outsourced loan review services to mortgage loan originators. Basis of Presentation The accompanying unaudited condensed consolidated financial statements, which include the results of NMIH and its wholly owned subsidiaries, have been prepared in accordance with the instructions to Form 10-Q as prescribed by the SEC for interim reporting and include other information and disclosures required by accounting principles generally accepted in the U.S. (GAAP). Our accounts are maintained in U.S. dollars. These statements should be read in conjunction with our consolidated financial statements and notes thereto for the year ended December 31, 2021, included in our 2021 10-K. All intercompany transactions have been eliminated. Certain reclassifications to previously reported financial information have been made to conform to our current period presentation. The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities, as well as disclosure of contingent assets and liabilities as of the balance sheet date. Estimates also affect the reported amounts of income and expenses for the reporting period. Actual results could differ from those estimates. The results of operations for the interim period may not be indicative of the results that may be expected for the full year ending December 31, 2022. COVID-19 Developments On January 30, 2020, the World Health Organization declared the outbreak of COVID-19 a global health emergency and subsequently characterized the outbreak as a global pandemic on March 11, 2020. In an effort to stem contagion and control the spread of the virus, the population at large severely curtailed day-to-day activity and local, state and federal regulators imposed a broad set of restrictions on personal and business conduct nationwide. The COVID-19 pandemic, along with the widespread public and regulatory response, caused a dramatic slowdown in U.S. and global economic activity. The global dislocation caused by COVID-19 was unprecedented and the pandemic had a direct impact on the U.S. housing market, private mortgage insurance industry, and our business and operating performance for an extended period. More recently, however, the acute economic impact of COVID-19 has begun to recede. While the pandemic continues to pose a global risk and affect communities across the U.S., it is no longer the single dominant driver of our performance that it had been in earlier periods. COVID-19 is now one of several mosaic factors, including a range of macroeconomic forces and public policy initiatives that are influencing our market and business. Although we are optimistic that the nationwide COVID-19 vaccination effort and other medical advances will continue to support a normalization of personal and business activity, the path of the virus remains unknown and subject to risk. Given this uncertainty, we are not able to fully assess or estimate the impact the pandemic may have on the mortgage insurance market, our business performance or our financial position at this time, and it remains possible COVID-19 could again trigger more severe and adverse outcomes in future periods. Significant Accounting Principles There have been no changes to our significant accounting principles as described in Item 8, "Financial Statements and Supplementary Data - Notes to Consolidated Financial Statements - Note 2 - Summary of Accounting Principles" of our 2021 10-K, except as noted in "Share Repurchases" and "Recent Accounting Pronouncements - Adopted" below. Share Repurchases Common stock repurchases are recorded at cost and presented as "Treasury Stock" in the consolidated balance sheet and statement of changes in shareholders' equity. At the date of repurchase, shareholders' equity is reduced by the aggregate repurchase price plus commissions and other expenses that arise from the repurchase transaction. Recent Accounting Pronouncements - Adopted In August 2020, the Financial Accounting Standards Board (the FASB) issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging— Contracts in Entity's Own Equity (Subtopic 815-40). The update simplifies the accounting for convertible instruments and contracts on an entity's own equity, including warrants, eliminating certain triggers for derivative accounting. We adopted this ASU on January 1, 2022 and determined it did not have a material impact on our consolidated financial statements, including our warrant liability. Recent Accounting Pronouncements - Not Yet Adopted In August 2018, the FASB issued ASU 2018-12, Targeted Improvements to the Accounting for Long-Duration Contracts (Topic 944). The update provides guidance to the existing recognition, measurement, presentation and disclosure requirements for long-duration contracts issued by an insurance entity. The FASB subsequently issued ASU 2019-09 in November 2019 and ASU 2020-11 in November 2020, which amended the effective date for this standard and provided transition relief to facilitate early application for long duration contracts. The standard will now take effect for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. We are currently evaluating the impact the adoption of this ASU will have, if any, on our consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848). The update provides optional guidance to ease the potential burden in accounting for reference rate reform on financial reporting. Reference rate reform refers to the global transition away from referencing the London Interbank Offered Rate (LIBOR) in financial contracts, which is expected to be discontinued during a transition period from 2021 through 2023. The ASU includes optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. This standard may be elected and applied prospectively over time from March 12, 2020 through December 31, 2022 as reference rate reform activities occur. We continue to monitor the impact the discontinuance of LIBOR will have on our contracts and other transactions; however, the adoption of, and future elections under, this ASU, are not expected to have a material impact on our consolidated financial statements as the ASU will ease, if warranted, the requirements for accounting for the future effects of the rate reform.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Revenues
Net premiums earned	$ 116,495	$ 105,879
Net investment income	10,199	8,814
Net realized investment gains	408	0
Other revenues	339	501
Total revenues	127,441	115,194
Expenses
Insurance claims and claim (benefits) expenses	(619)	4,962
Underwriting and operating expenses	32,935	34,065
Service expenses	430	591
Interest expense	8,041	7,915
(Gain) loss from change in fair value of warrant liability	(93)	205
Total expenses	40,694	47,738
Income before income taxes	86,747	67,456
Income tax expense	19,067	14,565
Net income	$ 67,680	$ 52,891
Earnings per share
Basic (in dollars per share)	$ 0.79	$ 0.62
Diluted (in dollars per share)	$ 0.77	$ 0.61
Weighted average common shares outstanding
Basic (in shares)	85,953	85,317
Diluted (in shares)	87,310	86,487
Comprehensive income:
Net income	$ 67,680	$ 52,891
Other comprehensive loss, net of tax:
Unrealized losses in accumulated other comprehensive income, net of tax benefit of $26,176 and $11,997 for the quarters ended March 31, 2022 and 2021, respectively	(98,471)	(45,133)
Reclassification adjustment for realized gains included in net income, net of tax expense $86 for the quarter ended March 31, 2022	(323)	0
Other comprehensive loss, net of tax	(98,794)	(45,133)
Comprehensive (loss) income	$ (31,114)	$ 7,758

Regulatory Information

3 Months Ended

Mar. 31, 2022

Insurance [Abstract]

Regulatory Information

Statutory Requirements

Our insurance subsidiaries, NMIC and Re One, file financial statements in conformity with statutory accounting principles (SAP) prescribed or permitted by the Wisconsin OCI, NMIC's principal regulator. Prescribed SAP includes state laws, regulations and general administrative rules, as well as a variety of publications of the National Association of Insurance Commissioners (NAIC). The Wisconsin OCI recognizes only statutory accounting practices prescribed or permitted by the state of Wisconsin for determining and reporting the financial condition and results of operations of an insurance company and for determining its solvency under Wisconsin insurance laws.

NMIC and Re One generated combined statutory net income of $18.6 million and $6.4 million for the three months ended March 31, 2022 and 2021, respectively.

The Wisconsin OCI has imposed a prescribed accounting practice for the treatment of statutory contingency reserves that differs from the treatment promulgated by the NAIC. Under Wisconsin OCI's prescribed practice mortgage guaranty insurers are required to reflect changes in their contingency reserves through statutory income. Such approach contrasts with the NAIC's treatment, which records changes to contingency reserves directly to unassigned funds. As a Wisconsin-domiciled insurer, NMIC's statutory net income reflects an expense associated with the change in its contingency reserve. While such treatment impacts NMIC's statutory net income, it does not have an effect on NMIC's statutory capital position.

The following table presents NMIC's statutory surplus, contingency reserve, statutory capital and risk-to-capital (RTC) ratio as of March 31, 2022 and December 31, 2021.



	March 31, 2022		December 31, 2021
	(In Thousands)
Statutory surplus	$	873,259	$	893,848
Contingency reserve	1,106,497		1,036,639
Statutory capital (1)	$	1,979,756	$	1,930,487

Risk-to-capital	12.4:1		11.6:1

(1) Represents the total of the statutory surplus and contingency reserve.

Re One had $5.6 million of statutory capital at March 31, 2022 and December 31, 2021. Effective October 1, 2021, the reinsurance agreement between NMIC and Re One was commuted and all ceded risk was transferred back to NMIC. Following the commutation, Re One has no risk in force or further obligation on future claims.

NMIH is not subject to any limitations on its ability to pay dividends except those generally applicable to corporations that are incorporated in Delaware. Delaware law provides that dividends are only payable out of a corporation's capital surplus or, subject to certain limitations, recent net profits.

NMIC and Re One are subject to certain rules and regulations prescribed by jurisdictions in which they are authorized to operate and the GSEs that may restrict their ability to pay dividends to NMIH. NMIC has the capacity to pay $34.9 million of aggregate ordinary dividends to NMIH during the twelve-month period ending December 31, 2022 and on April 1, 2022, NMIC paid a $34.9 million ordinary course dividend to NMIH.

Investments - Narrative (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Debt Securities, Available-for-sale [Line Items]
Unrealized loss position, accumulated loss	$ 122,863,000	$ 23,195,000
Unrealized loss position, 12 months or greater	29,026,000	6,453,000
U.S. Treasury securities and obligations of U.S. government agencies
Debt Securities, Available-for-sale [Line Items]
Cash and investments held with various state insurance departments	5,500,000	$ 5,600,000
Unrealized loss position, accumulated loss	246,000
Unrealized loss position, 12 months or greater	$ 0

Investments - Net Investment Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Investment Income, Net [Abstract]
Investment income	$ 10,532	$ 9,225
Investment expenses	(333)	(411)
Net investment income	$ 10,199	$ 8,814

Fair Value of Financial Instruments - Narrative (Details) - Secured Debt - USD ($)	Mar. 31, 2022	Dec. 31, 2021	Jun. 19, 2020	Jan. 19, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt instrument face amount			$ 400,000,000
Debt issuance costs	$ 5,000,000	$ 5,400,000	$ 7,400,000
Carried cost	395,000,000	394,600,000
2018 Term loan
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt instrument face amount				$ 150,000,000
Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of long term debt	$ 421,000,000	$ 454,600,000

- Definition

Amount, after unamortized (discount) premium and debt issuance costs, of long-term debt. Includes, but not limited to, notes payable, bonds payable, debentures, mortgage loans and commercial paper. Excludes capital lease obligations.

+ References + Details

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended
Income Taxes (Details) - USD ($) $ in Millions	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Effective income tax rate on pre-tax income or loss	22.00%	21.60%
Tax and loss bonds	$ 89.2		$ 89.2

Investments - Net Realized Investment Gains (Losses) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Investments, Debt and Equity Securities [Abstract]
Gross realized investment gains	$ 409	$ 0
Gross realized investment losses	(1)	0
Net realized investment gains	$ 408	$ 0

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash flows from operating activities
Net income	$ 67,680	$ 52,891
Adjustments to reconcile net income to net cash provided by operating activities:
Net realized investment gains	(408)	0
(Gain) loss from change in fair value of warrant liability	(93)	205
Depreciation and amortization	3,093	2,675
Net amortization of premium on investment securities	1,707	1,636
Amortization of debt discount and debt issuance costs	451	443
Deferred income taxes	19,054	14,561
Share-based compensation expense	4,196	3,022
Changes in operating assets and liabilities:
Premiums receivable	(168)	(2,427)
Accrued investment income	(521)	(633)
Prepaid expenses	(1,947)	(1,707)
Deferred policy acquisition costs, net	(143)	(69)
Reinsurance recoverable	240	(1,078)
Other assets	648	148
Unearned premiums	(844)	8,590
Reserve for insurance claims and claim expenses	(1,179)	5,536
Reinsurance balances, net	79	101
Accounts payable and accrued expenses	(11,535)	1,570
Net cash provided by operating activities	80,310	85,464
Cash flows from investing activities
Purchase of short-term investments	(2)	0
Purchase of fixed-maturity investments, available-for-sale	(66,513)	(109,933)
Proceeds from maturity of short-term investments	10,640	0
Proceeds from redemptions, maturities and sale of fixed-maturity investments, available-for-sale	36,479	15,942
Software and equipment	(1,974)	(2,456)
Net cash used in investing activities	(21,370)	(96,447)
Cash flows from financing activities
Proceeds from issuance of common stock related to employee equity plans	4,491	3,886
Proceeds from issuance of common stock related to warrants	290	182
Taxes paid related to net share settlement of equity awards	(4,461)	(4,505)
Repurchases of common stock	(5,000)	0
Net cash used in financing activities	(4,680)	(437)
Net increase (decrease) in cash, cash equivalents and restricted cash	54,260	(11,420)
Cash, cash equivalents and restricted cash, beginning of period	76,646	126,937
Cash, cash equivalents and restricted cash, end of period	130,906	115,517
Supplemental disclosures of cash flow information
Income taxes refunded	$ 0	$ 206

Regulatory Information - Schedule of Combined Statutory Net Loss, Statutory Surplus, Contingency Reserve and RTC Ratios (Details) $ in Thousands	Mar. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Statutory Accounting Practices [Line Items]
Statutory surplus	$ 873,259	$ 893,848
Contingency reserve	1,106,497	1,036,639
Statutory capital	$ 5,600	$ 5,600
Risk to capital ratio regulatory actual	12.4	11.6

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Income Statement [Abstract]
Net unrealized (losses) gains in accumulated other comprehensive income, tax (benefit) expense	$ 26,176	$ 11,997
Reclassification adjustment for realized losses (gains) included in net income, tax expense (benefit)	$ 86

Investments - Aging of Unrealized Losses (Details)	Mar. 31, 2022 USD ($) security	Dec. 31, 2021 USD ($) security
Debt Securities, Available-for-sale [Line Items]
Number of securities, less than 12 months \| security	434	276
Fair value, less than 12 months	$ 1,346,153,000	$ 1,025,912,000
Unrealized losses, less than 12 months	$ (93,837,000)	$ (16,742,000)
Number of securities,12 months or greater \| security	53	23
Fair value, 12 months or greater	$ 258,168,000	$ 156,118,000
Unrealized losses, 12 months or greater	$ (29,026,000)	$ (6,453,000)
Number of securities, total \| security	487	299
Fair Value	$ 1,604,321,000	$ 1,182,030,000
Unrealized Losses	$ (122,863,000)	$ (23,195,000)
U.S. Treasury securities and obligations of U.S. government agencies
Debt Securities, Available-for-sale [Line Items]
Number of securities, less than 12 months \| security	12
Fair value, less than 12 months	$ 24,105,000
Unrealized losses, less than 12 months	$ (246,000)
Number of securities,12 months or greater \| security	0
Fair value, 12 months or greater	$ 0
Unrealized losses, 12 months or greater	$ 0
Number of securities, total \| security	12
Fair Value	$ 24,105,000
Unrealized Losses	$ (246,000)
Municipal debt securities
Debt Securities, Available-for-sale [Line Items]
Number of securities, less than 12 months \| security	214	151
Fair value, less than 12 months	$ 466,969,000	$ 314,823,000
Unrealized losses, less than 12 months	$ (33,508,000)	$ (4,959,000)
Number of securities,12 months or greater \| security	17	2
Fair value, 12 months or greater	$ 27,711,000	$ 8,138,000
Unrealized losses, 12 months or greater	$ (3,248,000)	$ (445,000)
Number of securities, total \| security	231	153
Fair Value	$ 494,680,000	$ 322,961,000
Unrealized Losses	$ (36,756,000)	$ (5,404,000)
Corporate debt securities
Debt Securities, Available-for-sale [Line Items]
Number of securities, less than 12 months \| security	188	114
Fair value, less than 12 months	$ 791,585,000	$ 653,488,000
Unrealized losses, less than 12 months	$ (57,405,000)	$ (11,426,000)
Number of securities,12 months or greater \| security	35	20
Fair value, 12 months or greater	$ 228,605,000	$ 146,003,000
Unrealized losses, 12 months or greater	$ (25,586,000)	$ (5,938,000)
Number of securities, total \| security	223	134
Fair Value	$ 1,020,190,000	$ 799,491,000
Unrealized Losses	$ (82,991,000)	$ (17,364,000)
Asset-backed securities
Debt Securities, Available-for-sale [Line Items]
Number of securities, less than 12 months \| security	20	11
Fair value, less than 12 months	$ 63,494,000	$ 57,601,000
Unrealized losses, less than 12 months	$ (2,678,000)	$ (357,000)
Number of securities,12 months or greater \| security	1	1
Fair value, 12 months or greater	$ 1,852,000	$ 1,977,000
Unrealized losses, 12 months or greater	$ (192,000)	$ (70,000)
Number of securities, total \| security	21	12
Fair Value	$ 65,346,000	$ 59,578,000
Unrealized Losses	$ (2,870,000)	$ (427,000)

Leases (Tables)

3 Months Ended

Mar. 31, 2022

Leases [Abstract]

Summary of Right-of-Use Asset and Lease Liability Activity and Assumptions

The following table provides a summary of our ROU asset and lease liability assumptions as of March 31, 2022:


Weighted-average remaining lease term	7.8 years
Weighted-average discount rate	6.50	%

Schedule of Future Payments Due Under Operating Leases

Future payments due under our existing operating leases as of March 31, 2022 are as follows:


	($ In Thousands)

Remaining in 2022	$	131
2023	2,096
2024	2,080
2025	2,128
2026	2,190
2027	2,256
2028	2,322
2029	2,392
2030	603
Total undiscounted lease payments	16,198
Less effects of discounting	(3,977)
Present value of lease payments	$	12,221

Earnings per Share (EPS) (Tables)

3 Months Ended

Mar. 31, 2022

Earnings Per Share [Abstract]

Schedule of earnings per share, basic and diluted

The following table reconciles the net income and the weighted average shares of common stock outstanding used in the computations of basic and diluted EPS of common stock:


	For the three months ended March 31,
		2022		2021
		(In Thousands, except for per share data)
Net income		$	67,680	$	52,891
Basic weighted average shares outstanding		85,953		85,317
Basic earnings per share		$	0.79	$	0.62

Net income		$	67,680	$	52,891
Gain from change in fair value of warrant liability		(93)		—
Diluted net income		$	67,587	$	52,891

Basic weighted average shares outstanding		85,953		85,317
Dilutive effect of issuable shares		1,357		1,170
Diluted weighted average shares outstanding		87,310		86,487

Diluted earnings per share		$	0.77	$	0.61

Anti-dilutive shares		8		314