0001547903-22-000166 | 10-Q | XBRL Viewer

Print Document View Excel Document

Stockholders' Equity	9 Months Ended
Stockholders' Equity	Sep. 30, 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 and nine months ended September 30, 2022, we repurchased 1.0 million and 2.7 million shares, respectively, at average prices of $20.94 and $19.17 per share (excluding associated costs) pursuant to a trading plans under Rule 10b-18 and Rule 10b5-1 of the Exchange Act. As of September 30, 2022, $73.8 million of repurchase authority remained available under the program.

- 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.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-URI https://asc.fasb.org/topic&trid=2208762

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 14
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496171-112644

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 14
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496171-112644

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI https://asc.fasb.org/extlink&oid=120397183&loc=d3e187085-122770

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496189-112644

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (g)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496189-112644

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (h)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 14
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496171-112644

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496189-112644

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 16
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496180-112644

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (i)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644

Reference 15: 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(e)(1))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 40
-Section 50
-Paragraph 6
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126731327&loc=SL126733271-114008

+ Details

Investments

9 Months Ended

Sep. 30, 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 September 30, 2022	(In Thousands)
U.S. Treasury securities and obligations of U.S. government agencies	$	82,275	$	82	$	(2,445)	$	79,912
Municipal debt securities	569,931		33		(81,109)		488,855
Corporate debt securities	1,409,344		248		(185,066)		1,224,526
Asset-backed securities	75,783		—		(6,374)		69,409
Total bonds	2,137,333		363		(274,994)		1,862,702

Short-term investments	111,404		54		(229)		111,229
Total investments	$	2,248,737	$	417	$	(275,223)	$	1,973,931


	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 September 30, 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 September 30, 2022 and December 31, 2021:


	September 30, 2022		December 31, 2021
Financial	37	%	38	%
Consumer	24		24
Communications	12		11
Utilities	10		10
Technology	9		9
Industrial	8		8


Total	100	%	100	%

As of September 30, 2022 and December 31, 2021, approximately $5.4 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 September 30, 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 September 30, 2022	Amortized Cost		Fair Value
	(In Thousands)
Due in one year or less	$	212,904	$	211,769
Due after one through five years	896,340		822,528
Due after five through ten years	1,048,875		858,304
Due after ten years	14,835		11,921
Asset-backed securities	75,783		69,409
Total investments	$	2,248,737	$	1,973,931


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 September 30, 2022, the investment portfolio had gross unrealized losses of $275.2 million, of which $173.4 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 September 30, 2022		($ In Thousands)
U.S. Treasury securities and obligations of U.S. government agencies	23	$	79,912	$	(2,445)	—	$	—	$	—	23	$	79,912	$	(2,445)
Municipal debt securities	114	284,217		(39,319)		126	201,638		(41,790)		240	485,855		(81,109)
Corporate debt securities	205	590,692		(55,393)		115	621,820		(129,673)		320	1,212,512		(185,066)
Asset-backed securities	19	56,981		(4,454)		7	12,428		(1,920)		26	69,409		(6,374)
Short-term investments	9	78,859		(229)		—	—		—		9	78,859		(229)
Total	370	$	1,090,661	$	(101,840)	248	$	835,886	$	(173,383)	618	$	1,926,547	$	(275,223)


	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		($ 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 September 30, 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 or nine-month periods ended September 30, 2022 or September 30, 2021.

The increase in the number of securities in and the aggregate size of the unrealized loss position as of September 30, 2022, was driven by fluctuations in interest rates and, to a lesser extent, movements in credit spreads following the purchase date of certain securities. We evaluated the securities in an unrealized loss position as of September 30, 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 September 30, 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 September 30,				For the nine months ended September 30,
	2022		2021		2022		2021
	(In Thousands)
Investment income	$	12,314	$	10,170	$	34,084	$	29,003
Investment expenses	(369)		(339)		(1,019)		(976)
Net investment income	$	11,945	$	9,831	$	33,065	$	28,027

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


	For the three months ended September 30,				For the nine months ended September 30,
	2022		2021		2022		2021
	(In Thousands)
Gross realized investment gains	$	24	$	3	$	490	$	15
Gross realized investment losses	(10)		—		(15)		—
Net realized investment gains	$	14	$	3	$	475	$	15

Premium Receivable	9 Months Ended
Premium Receivable	Sep. 30, 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 September 30, 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 $2.0 million and $2.3 million reserve for premium write-offs at September 30, 2022 and December 31, 2021, respectively.

Commitments and Contingencies - Narrative (Details)	3 Months Ended		9 Months Ended
Commitments and Contingencies - Narrative (Details)	Sep. 30, 2022 USD ($) lease_agreement	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($) lease_agreement case	Sep. 30, 2021 USD ($)	Dec. 31, 2021 USD ($)
Lessee, Lease, Description [Line Items]
Number of operating leases related to corporate headquarters and data center facility \| lease_agreement	2		2
Right-of-use assets	$ 10,700,000		$ 10,700,000
Lease liabilities	12,205,000		12,205,000
Finance lease	0		0		$ 0
Right-of-use assets obtained in exchange for new operating lease liabilities			9,700,000
Cash paid on operating leases	400,000	$ 600,000	500,000	$ 1,900,000
Operating lease expense	$ 500,000	$ 600,000	$ 1,500,000	$ 1,700,000
Refund of Certain Mortgage Insurance Payments
Lessee, Lease, Description [Line Items]
Loss contingency, number of cases \| case			1
Corporate Headquarters
Lessee, Lease, Description [Line Items]
Operating lease option to renew, term	5 years		5 years
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		2 years
Maximum
Lessee, Lease, Description [Line Items]
Operating lease terms	8 years		8 years

Earnings per Share (EPS) (Tables)

9 Months Ended

Sep. 30, 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 September 30,				For the nine months ended September 30,
	2022		2021		2022		2021
	(In Thousands, except for per share data)
Net income	$	76,838	$	60,193	$	219,962	$	170,606
Basic weighted average shares outstanding	84,444		85,721		85,369		85,563
Basic earnings per share	$	0.91	$	0.70	$	2.58	$	1.99

Net income	$	76,838	$	60,193	$	219,962	$	170,606
Gain from change in fair value of warrant liability	—		—		(1,113)		(454)
Diluted net income	$	76,838	$	60,193	$	218,849	$	170,152

Basic weighted average shares outstanding	84,444		85,721		85,369		85,563
Dilutive effect of issuable shares	1,041		1,159		1,051		1,231
Diluted weighted average shares outstanding	85,485		86,880		86,420		86,794

Diluted earnings per share	$	0.90	$	0.69	$	2.53	$	1.96

Anti-dilutive shares	30		1		30		2

Investments - Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Debt Securities, Available-for-sale [Line Items]
Unrealized loss position, accumulated loss	$ 275,223	$ 23,195
Unrealized loss position, 12 months or greater	173,383	6,453
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	5,400	$ 5,600
Unrealized loss position, accumulated loss	2,445
Unrealized loss position, 12 months or greater	$ 0

COVER - shares	9 Months Ended
COVER - shares	Sep. 30, 2022	Oct. 28, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2022
Document Transition Report	false
Entity File Number	001-36174
Entity Registrant Name	NMI Holdings, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	45-4914248
Entity Address, Address Line One	2100 Powell Street
Entity Address, City or Town	Emeryville
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94608
City Area Code	855
Local Phone Number	530-6642
Title of 12(b) Security	Class A Common Stock, par value $0.01
Trading Symbol	NMIH
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		83,581,031
Entity Central Index Key	0001547903
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Amendment Flag	false

Investments - Scheduled Maturities (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Amortized Cost
Due in one year or less	$ 212,904	$ 81,699
Due after one through five years	896,340	630,625
Due after five through ten years	1,048,875	1,215,224
Due after ten years	14,835	54,901
Asset-backed securities	75,783	96,324
Amortized Cost	2,248,737	2,078,773
Fair Value
Due in one year or less	211,769	82,201
Due after one through five years	822,528	644,447
Due after five through ten years	858,304	1,207,997
Due after ten years	11,921	54,705
Asset-backed securities	69,409	96,581
Fair Value	$ 1,973,931	$ 2,085,931

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

3 Months Ended

Sep. 30, 2022

Jun. 30, 2022

Mar. 31, 2022

Sep. 30, 2021

Jun. 30, 2021

Mar. 31, 2021

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

$ (15,935)

$ (17,015)

$ (26,262)

$ (2,166)

$ 4,992

$ (11,997)

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

28,000

Common stock, par value (in dollars per share)

$ 0.01

Common stock

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

32,659

^[1]

51,000

27,715

^[2]

8,096

^[2]

23,750

^[2]

Common stock, par value (in dollars per share)

$ 0.01

^[1]

$ 0.01

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

89,000

68,000

430,000

12,436

^[2]

95,000

413,000

[1]

During the three months ended June 30, 2022, we issued 32,659 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.

[2]

During the three months ended March 31, 2021 and June 30, 2021, we issued 23,750 and 8,096 common shares, respectively, with a par value of $0.01 in connection with the exercise of warrants, which are not identifiable in this schedule due to rounding. During the three months ended September 30, 2021, we issued 27,715 common shares with a par value of $0.01 in connection with the exercise of warrants, and 12,436 common shares with a par value of $0.01 in connection with the exercise of options and vesting of restricted stock units granted under our stock plans, which are not identifiable in this schedule due to rounding.

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 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%. Taxable income is reported on our consolidated U.S. federal and various state income tax returns, filed by NMIH on behalf of itself and its subsidiaries. Our effective tax rate on our pre-tax income was 22.1% for the three and nine months ended September 30, 2022, respectively, compared to 22.3% and 21.9% for the three and nine months ended September 30, 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 and nine months ended September 30, 2022 represents a change in our net deferred tax liability. As of September 30, 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.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 17
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 14
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 270
-Section 50
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-URI https://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: 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(h)(2))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Warrants (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended		9 Months Ended
	Apr. 24, 2022	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021	Apr. 30, 2012
Debt Disclosure [Abstract]
Warrants issued (in shares)							992,000
Warrants contract term							10 years
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		$ 0		$ 0		$ 2,363	$ 5,100
Warrants expired unexercised during period (in shares)	90,000
Warrants expired unexercised resulting in gain (loss) during period	$ 900
Warrant liability		0		0
Warrants exercised (in shares)		0	32,000	110,000	73,000
Stock issued upon exercise of warrants (in shares)			28,000	84,000	60,000
Fair value of warrant liability reclassified to additional paid in capital upon exercise			$ 400	$ 1,300	$ 900

Stockholders' Equity (Details) - USD ($) $ / shares in Units, shares in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2022	Feb. 10, 2022
Equity [Abstract]
Stock repurchase program, authorized amount			$ 125,000,000
Repurchased shares (in shares)	1.0	2.7
Shares repurchased, average price per share (in dollar per share)	$ 20.94	$ 19.17
Remaining authorized repurchase amount	$ 73,800,000	$ 73,800,000

Reserves for Insurance Claims and Claim Expenses (Tables)

9 Months Ended

Sep. 30, 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 nine months ended September 30,
	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)	28,135		19,275
Prior years (3)	(35,179)		(6,469)
Total claims and claim (benefits) expenses incurred	(7,044)		12,806

Less claims paid:
Claims and claim expenses paid:
Current year (2)	73		15
Prior years (3)	925		1,566

Total claims and claim expenses paid	998		1,581

Reserve at end of period, net of reinsurance recoverables	75,189		84,184
Add reinsurance recoverables (1)	19,755		20,420
Ending balance	$	94,944	$	104,604

(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 $23.3 million attributed to net case reserves and $4.2 million attributed to net IBNR reserves for the nine months ended September 30, 2022 and $14.0 million attributed to net case reserves and $4.8 million attributed to net IBNR reserves for the nine months ended September 30, 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 $29.2 million attributed to net case reserves and $4.7 million attributed to net IBNR reserves for the nine months ended September 30, 2022 and $1.8 million attributed to net case reserves and $5.0 million attributed to net IBNR reserves for the nine months ended September 30, 2021.

Regulatory Information - Schedule of Combined Statutory Net Loss, Statutory Surplus, Contingency Reserve and RTC Ratios (Details) - NMIC and Re One combined $ in Thousands	Sep. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)
Statutory Accounting Practices [Line Items]
Statutory surplus	$ 911,369	$ 893,848
Contingency reserve	1,255,789	1,036,639
Statutory capital	$ 2,167,158	$ 1,930,487
Risk to capital ratio regulatory actual	10.9	11.6

Fair Value of Financial Instruments

9 Months Ended

Sep. 30, 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. All outstanding and unexercised warrants expired in April 2022 and there was no warrant liability remaining as of September 30, 2022.

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 September 30, 2022	(In Thousands)
U.S. Treasury securities and obligations of U.S. government agencies	$	79,912	$	—	$	—	$	79,912
Municipal debt securities	—		488,855		—		488,855
Corporate debt securities	—		1,224,526		—		1,224,526
Asset-backed securities	—		69,409		—		69,409

Cash, cash equivalents and short-term investments	237,041		—		—		237,041
Total assets	$	316,953	$	1,782,790	$	—	$	2,099,743


	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 nine months ended September 30, 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 nine months ended September 30,
Warrant Liability	2022		2021
	(In Thousands)
Balance, January 1	$	2,363	$	4,409
Change in fair value of warrant liability included in earnings	(1,113)		(454)

Issuance of common stock on warrant exercise	(1,250)		(945)
Balance, September 30	$	—	$	3,010

All outstanding and unexercised warrants expired in April 2022 and there was no warrant liability remaining as of September 30, 2022. For more information on the expiration of warrants and changes in the fair value of the warrant liability during the nine months ended September 30, 2022 and 2021, see Note 8, "Warrants". 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 date indicated:



	As of September 30, 2021
Common stock price	$	22.61
Risk free interest rate	0.05		%
Expected life	0.56 years
Expected volatility	34.4		%
Dividend yield	0		%

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 September 30, 2022, the Notes were carried at a cost of $395.7 million, net of unamortized debt issuance costs of $4.3 million, and had a fair value of $388.4 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

Fair Value of Financial Instruments - Rollforward of Level 3 Liabilities (Details) - Significant Unobservable Inputs (Level 3) - Warrant liability - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Roll-forward of Level 3 liabilities:
Beginning balance	$ 2,363	$ 4,409
Change in fair value of warrant liability included in earnings	(1,113)	(454)
Issuance of common stock on warrant exercise	(1,250)	(945)
Ending balance	$ 0	$ 3,010

Fair Value of Financial Instruments - Narrative (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2021	Jun. 19, 2020	Jan. 19, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Warrant liability	0
Secured Debt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt instrument face amount			$ 400,000,000
Carried cost	$ 395,700,000	$ 394,600,000
Debt issuance costs	4,300,000	5,400,000	$ 7,400,000
Secured Debt \| 2018 Term loan
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt instrument face amount				$ 150,000,000
Secured Debt \| 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	$ 388,400,000	$ 454,600,000

- Definition

Amount, excluding unamortized premium (discount) and debt issuance cost, of long-term debt. Excludes lease obligation.

+ References + Details

Earnings per Share (EPS) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2022	Sep. 30, 2021
Earnings per Share, Basic [Abstract]
Net income	$ 76,838	$ 75,444	$ 67,680	$ 60,193	$ 57,522	$ 52,891	$ 219,962	$ 170,606
Basic weighted average shares outstanding (in shares)	84,444			85,721			85,369	85,563
Basic earnings per share (in dollars per share)	$ 0.91			$ 0.70			$ 2.58	$ 1.99
Earnings per Share, Diluted [Abstract]
Net income	$ 76,838	$ 75,444	$ 67,680	$ 60,193	$ 57,522	$ 52,891	$ 219,962	$ 170,606
Gain from change in fair value of warrant liability	0			0			(1,113)	(454)
Diluted net income	$ 76,838			$ 60,193			$ 218,849	$ 170,152
Basic weighted average shares outstanding (in shares)	84,444			85,721			85,369	85,563
Dilutive effect of issuable shares (in shares)	1,041			1,159			1,051	1,231
Dilutive weighted average shares outstanding (in shares)	85,485			86,880			86,420	86,794
Diluted earnings per share (in dollars per share)	$ 0.90			$ 0.69			$ 2.53	$ 1.96
Anti-dilutive shares (in shares)	30			1			30	2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Cash flows from operating activities
Net income	$ 219,962	$ 170,606
Adjustments to reconcile net income to net cash provided by operating activities:
Net realized investment gains	(475)	(15)
Gain from change in fair value of warrant liability	(1,113)	(454)
Depreciation and amortization	8,976	8,250
Net amortization of premium on investment securities	4,864	5,020
Amortization of debt discount and debt issuance costs	1,374	1,349
Deferred income taxes	61,647	47,949
Share-based compensation expense	11,945	10,121
Changes in operating assets and liabilities:
Premiums receivable	(6,844)	(8,720)
Accrued investment income	(1,442)	(2,252)
Prepaid expenses	(1,164)	(1,117)
Deferred policy acquisition costs, net	101	863
Reinsurance recoverable	565	(2,812)
Other assets	849	(79)
Unearned premiums	(8,585)	20,807
Reserve for insurance claims and claim expenses	(8,607)	14,037
Reinsurance balances, net	(1,067)	(174)
Accounts payable and accrued expenses	617	18,002
Net cash provided by operating activities	281,603	281,381
Cash flows from investing activities
Purchase of short-term investments	(229,816)	(10,640)
Purchase of fixed-maturity investments, available-for-sale	(156,973)	(390,988)
Proceeds from maturity of short-term investments	129,570	0
Proceeds from redemptions, maturities and sale of fixed-maturity investments, available-for-sale	82,865	100,215
Software and equipment	(7,757)	(9,107)
Net cash used in investing activities	(182,111)	(310,520)
Cash flows from financing activities
Proceeds from issuance of common stock related to employee equity plans	5,392	4,137
Proceeds from issuance of common stock related to warrants	518	412
Taxes paid related to net share settlement of equity awards	(5,041)	(5,087)
Repurchases of common stock	(51,195)	0
Net cash used in financing activities	(50,326)	(538)
Net increase (decrease) in cash, cash equivalents and restricted cash	49,166	(29,677)
Cash, cash equivalents and restricted cash, beginning of period	76,646	126,937
Cash, cash equivalents and restricted cash, end of period	125,812	97,260
Supplemental disclosures of cash flow information
Interest paid	14,750	14,750
Income taxes refunded	$ 0	$ 457

Commitments and Contingencies - Future Payment Due Under Operating Leases (Details) $ in Thousands	Sep. 30, 2022 USD ($)
Future Payment Due Under Operating Leases
Remaining in 2022	$ 313
2023	1,498
2024	2,080
2025	2,128
2026	2,190
2027	2,256
2028 and thereafter	5,316
Total undiscounted lease payments	15,781
Less effects of discounting	(3,576)
Present value of lease payments	$ 12,205

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Income Statement [Abstract]
Unrealized losses in accumulated other comprehensive income (loss), net of tax benefit	$ 15,932	$ 2,165	$ 59,112	$ 9,168
Reclassification adjustment for realized gains included in net income, net of tax expense	$ 3	$ 1	$ 100	$ 3

Subsequent Events (Details) - Subsequent Event $ in Millions	Nov. 01, 2022 USD ($)
Subsequent Event [Line Items]
Amount reinsured	$ 96.8
Amount retained	106.3
Second layer amount reinsured	$ 96.8

Investments - Corporate Debt Securities by Industry Group (Details)	Sep. 30, 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)	37.00%	38.00%
Consumer
Debt Securities By Industry [Line Items]
Corporate debt securities as component of total (percent)	24.00%	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%

Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 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 September 30, 2022	(In Thousands)
U.S. Treasury securities and obligations of U.S. government agencies	$	79,912	$	—	$	—	$	79,912
Municipal debt securities	—		488,855		—		488,855
Corporate debt securities	—		1,224,526		—		1,224,526
Asset-backed securities	—		69,409		—		69,409

Cash, cash equivalents and short-term investments	237,041		—		—		237,041
Total assets	$	316,953	$	1,782,790	$	—	$	2,099,743


	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 nine months ended September 30,
Warrant Liability	2022		2021
	(In Thousands)
Balance, January 1	$	2,363	$	4,409
Change in fair value of warrant liability included in earnings	(1,113)		(454)

Issuance of common stock on warrant exercise	(1,250)		(945)
Balance, September 30	$	—	$	3,010

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 date indicated:



	As of September 30, 2021
Common stock price	$	22.61
Risk free interest rate	0.05		%
Expected life	0.56 years
Expected volatility	34.4		%
Dividend yield	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

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 (Loss)

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)

^[1]

23,750

Common stock: class A shares issued related to warrant exercises

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

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)

60,000

Net income

$ 170,606

Ending balance (in shares) at Sep. 30, 2021

85,743,000

Ending balance at Sep. 30, 2021

1,516,226

$ 857

948,395

19,357

547,617

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

85,600,000

Beginning balance at Mar. 31, 2021

1,380,308

$ 856

940,827

8,723

429,902

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

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

^[1]

8,096

Common stock: class A shares issued related to warrant exercises

197

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

95,000

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

(285)

$ 1

(286)

Share-based compensation expense

3,383

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

18,780

Net income

57,522

Ending balance (in shares) at Jun. 30, 2021

85,703,000

Ending balance at Jun. 30, 2021

$ 1,459,905

$ 857

944,121

27,503

487,424

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

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

28,000

27,715

^[1]

Common stock: class A shares issued related to warrant exercises

$ 603

603

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

^[1]

12,436

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

(45)

Share-based compensation expense

3,716

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

(8,146)

Net income

60,193

Ending balance (in shares) at Sep. 30, 2021

85,743,000

Ending balance at Sep. 30, 2021

1,516,226

$ 857

948,395

19,357

547,617

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

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

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

85,793,000

Beginning balance at Dec. 31, 2021

$ 1,565,786

$ 858

955,302

1,485

608,141

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

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

84,000

Net income

$ 219,962

Ending balance (in shares) at Sep. 30, 2022

83,796,000

Ending balance at Sep. 30, 2022

1,525,866

$ 865

969,359

(51,195)

(221,266)

828,103

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

86,039,000

Beginning balance at Mar. 31, 2022

1,535,042

$ 863

960,667

(5,000)

(97,309)

675,821

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

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

^[2]

32,659

Common stock: class A shares issued related to warrant exercises

624

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

68,000

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

(503)

$ 1

(504)

Repurchase of common stock (in shares)

(1,439,000)

Repurchase of common stock

(25,371)

Share-based compensation expense

3,867

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

(64,011)

Net income

75,444

Ending balance (in shares) at Jun. 30, 2022

84,701,000

Ending balance at Jun. 30, 2022

1,525,092

$ 864

964,654

(30,371)

(161,320)

751,265

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

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

89,000

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

824

$ 1

823

Repurchase of common stock (in shares)

(994,000)

Repurchase of common stock

(20,824)

Share-based compensation expense

3,882

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

(59,946)

Net income

76,838

Ending balance (in shares) at Sep. 30, 2022

83,796,000

Ending balance at Sep. 30, 2022

$ 1,525,866

$ 865

$ 969,359

$ (51,195)

$ (221,266)

$ 828,103

[1]

[2]

Fair Value of Financial Instruments - Assets and Liabilities at Fair Value (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of securities	$ 1,973,931	$ 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	79,912	30,424
Municipal debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of securities	488,855	554,078
Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of securities	1,224,526	1,393,830
Asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of securities	69,409	96,581
Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash, cash equivalents and short-term investments	237,041	87,664
Total assets	2,099,743	2,162,577
Warrant liability		2,363
Total liabilities		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	79,912	30,424
Recurring \| Municipal debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of securities	488,855	554,078
Recurring \| Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of securities	1,224,526	1,393,830
Recurring \| Asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of securities	69,409	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	237,041	87,664
Total assets	316,953	118,088
Warrant liability		0
Total liabilities		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	79,912	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	1,782,790	2,044,489
Warrant liability		0
Total liabilities		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	488,855	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	1,224,526	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	69,409	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		2,363
Total liabilities		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

Debt - Narrative (Details) - USD ($)				3 Months Ended	9 Months Ended
Debt - Narrative (Details) - USD ($)	Sep. 30, 2022	Nov. 29, 2021	Jun. 19, 2020	Sep. 30, 2022	Sep. 30, 2022	Dec. 31, 2021
Revolving credit facility
Debt Instrument [Line Items]
Commitment fees in interest expense				$ 200,000	$ 600,000
2018 Term loan
Debt Instrument [Line Items]
Interest payable	$ 9,800,000			9,800,000	9,800,000	$ 2,500,000
2020 Revolving credit facility
Debt Instrument [Line Items]
Debt issuance costs		$ 600,000
2020 Revolving credit facility \| Revolving credit facility
Debt Instrument [Line Items]
Credit facility borrowing capacity		110,000,000
Remaining deferred issuance costs, net of accumulated amortization	1,300,000			1,300,000	1,300,000
2021 Revolving credit facility
Debt Instrument [Line Items]
Debt Issuance costs		1,100,000
2021 Revolving credit facility \| Revolving credit facility
Debt Instrument [Line Items]
Credit facility borrowing capacity		$ 250,000,000
Borrowings outstanding	$ 0			0	$ 0	0
Debt instrument covenant, maximum debt-to-total capitalization ratio					35.00%
2021 Revolving credit facility \| Revolving credit facility \| Minimum
Debt Instrument [Line Items]
Commitment fee (in percent)	0.30%	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%
Secured Debt
Debt Instrument [Line Items]
Senior secured notes	$ 400,000,000			$ 400,000,000	$ 400,000,000
Stated interest rate (in percent)	7.375%			7.375%	7.375%
Applicable premium			1.00%
Debt issuance costs	$ 4,300,000		$ 7,400,000	$ 4,300,000	$ 4,300,000	$ 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%

Reinsurance - Amounts Related to QSR Transactions (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Ceded Credit Risk [Line Items]
Ceded premiums earned	$ (33,904)	$ (23,565)	$ (82,617)	$ (68,644)
Third-party reinsurers
Ceded Credit Risk [Line Items]
Ceded risk-in-force	12,511,797	7,610,870	12,511,797	7,610,870
Ceded premiums earned	(42,265)	(28,366)	(101,501)	(81,650)
Ceded claims and claim expenses (benefits)	248	840	(314)	3,214
Ceding commission earned	10,193	6,142	22,225	17,265
Profit commission	$ 23,899	$ 15,191	$ 58,400	$ 42,962

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
Income Taxes (Details) - USD ($) $ in Millions	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Effective income tax rate on pre-tax income or loss	22.10%	22.30%	22.10%	21.90%
Tax and loss bonds	$ 89.2		$ 89.2		$ 89.2

Investments (Tables)

9 Months Ended

Sep. 30, 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 September 30, 2022	(In Thousands)
U.S. Treasury securities and obligations of U.S. government agencies	$	82,275	$	82	$	(2,445)	$	79,912
Municipal debt securities	569,931		33		(81,109)		488,855
Corporate debt securities	1,409,344		248		(185,066)		1,224,526
Asset-backed securities	75,783		—		(6,374)		69,409
Total bonds	2,137,333		363		(274,994)		1,862,702

Short-term investments	111,404		54		(229)		111,229
Total investments	$	2,248,737	$	417	$	(275,223)	$	1,973,931


	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 September 30, 2022 and December 31, 2021:


	September 30, 2022		December 31, 2021
Financial	37	%	38	%
Consumer	24		24
Communications	12		11
Utilities	10		10
Technology	9		9
Industrial	8		8


Total	100	%	100	%

Schedule of investments by maturity


As of September 30, 2022	Amortized Cost		Fair Value
	(In Thousands)
Due in one year or less	$	212,904	$	211,769
Due after one through five years	896,340		822,528
Due after five through ten years	1,048,875		858,304
Due after ten years	14,835		11,921
Asset-backed securities	75,783		69,409
Total investments	$	2,248,737	$	1,973,931


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 September 30, 2022		($ In Thousands)
U.S. Treasury securities and obligations of U.S. government agencies	23	$	79,912	$	(2,445)	—	$	—	$	—	23	$	79,912	$	(2,445)
Municipal debt securities	114	284,217		(39,319)		126	201,638		(41,790)		240	485,855		(81,109)
Corporate debt securities	205	590,692		(55,393)		115	621,820		(129,673)		320	1,212,512		(185,066)
Asset-backed securities	19	56,981		(4,454)		7	12,428		(1,920)		26	69,409		(6,374)
Short-term investments	9	78,859		(229)		—	—		—		9	78,859		(229)
Total	370	$	1,090,661	$	(101,840)	248	$	835,886	$	(173,383)	618	$	1,926,547	$	(275,223)


	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		($ 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 September 30,				For the nine months ended September 30,
	2022		2021		2022		2021
	(In Thousands)
Investment income	$	12,314	$	10,170	$	34,084	$	29,003
Investment expenses	(369)		(339)		(1,019)		(976)
Net investment income	$	11,945	$	9,831	$	33,065	$	28,027

Schedule of net realized investment losses

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


	For the three months ended September 30,				For the nine months ended September 30,
	2022		2021		2022		2021
	(In Thousands)
Gross realized investment gains	$	24	$	3	$	490	$	15
Gross realized investment losses	(10)		—		(15)		—
Net realized investment gains	$	14	$	3	$	475	$	15

Investments - Aging of Unrealized Losses (Details) $ in Thousands	Sep. 30, 2022 USD ($) security	Dec. 31, 2021 USD ($) security
Debt Securities, Available-for-sale [Line Items]
Number of securities, less than 12 months \| security	370	276
Fair value, less than 12 months	$ 1,090,661	$ 1,025,912
Unrealized losses, less than 12 months	$ (101,840)	$ (16,742)
Number of securities,12 months or greater \| security	248	23
Fair value, 12 months or greater	$ 835,886	$ 156,118
Unrealized losses, 12 months or greater	$ (173,383)	$ (6,453)
Number of securities, total \| security	618	299
Fair Value	$ 1,926,547	$ 1,182,030
Unrealized Losses	$ (275,223)	$ (23,195)
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	23
Fair value, less than 12 months	$ 79,912
Unrealized losses, less than 12 months	$ (2,445)
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	23
Fair Value	$ 79,912
Unrealized Losses	$ (2,445)
Municipal debt securities
Debt Securities, Available-for-sale [Line Items]
Number of securities, less than 12 months \| security	114	151
Fair value, less than 12 months	$ 284,217	$ 314,823
Unrealized losses, less than 12 months	$ (39,319)	$ (4,959)
Number of securities,12 months or greater \| security	126	2
Fair value, 12 months or greater	$ 201,638	$ 8,138
Unrealized losses, 12 months or greater	$ (41,790)	$ (445)
Number of securities, total \| security	240	153
Fair Value	$ 485,855	$ 322,961
Unrealized Losses	$ (81,109)	$ (5,404)
Corporate debt securities
Debt Securities, Available-for-sale [Line Items]
Number of securities, less than 12 months \| security	205	114
Fair value, less than 12 months	$ 590,692	$ 653,488
Unrealized losses, less than 12 months	$ (55,393)	$ (11,426)
Number of securities,12 months or greater \| security	115	20
Fair value, 12 months or greater	$ 621,820	$ 146,003
Unrealized losses, 12 months or greater	$ (129,673)	$ (5,938)
Number of securities, total \| security	320	134
Fair Value	$ 1,212,512	$ 799,491
Unrealized Losses	$ (185,066)	$ (17,364)
Asset-backed securities
Debt Securities, Available-for-sale [Line Items]
Number of securities, less than 12 months \| security	19	11
Fair value, less than 12 months	$ 56,981	$ 57,601
Unrealized losses, less than 12 months	$ (4,454)	$ (357)
Number of securities,12 months or greater \| security	7	1
Fair value, 12 months or greater	$ 12,428	$ 1,977
Unrealized losses, 12 months or greater	$ (1,920)	$ (70)
Number of securities, total \| security	26	12
Fair Value	$ 69,409	$ 59,578
Unrealized Losses	$ (6,374)	$ (427)
Short-term investments
Debt Securities, Available-for-sale [Line Items]
Number of securities, less than 12 months \| security	9
Fair value, less than 12 months	$ 78,859
Unrealized losses, less than 12 months	$ (229)
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	9
Fair Value	$ 78,859
Unrealized Losses	$ (229)

Reserves for Insurance Claims and Claim Expenses

9 Months Ended

Sep. 30, 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 September 30, 2022, we had 4,096 primary loans in default and held gross reserves for insurance claims and claim expenses of $94.9 million. During the nine months ended September 30, 2022, we paid 59 claims totaling $1.2 million, including 56 claims covered under the QSR Transactions representing $0.3 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 September 30, 2022, 47 loans in the pool were in default. These 47 loans represented approximately $3.6 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 September 30, 2022. In connection with the settlement of pool claims, we applied $1.0 million to the pool deductible through September 30, 2022. At September 30, 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 4,096 loans in default in our primary insured portfolio as of September 30, 2022, which represented a 0.71% default rate against 580,525 total policies in-force. We had 7,670 loans in default in our primary insured portfolio as of September 30, 2021, which represented a 1.56% default rate against 490,714 total policies in-force. Although our default count declined from September 30, 2021 to September 30, 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.

We generally observe that forbearance, repayment and modification, and other assistance programs aid affected borrowers and drive higher cure rates on defaults than would otherwise be expected on similarly situated loans that did not benefit from broad-based assistance programs. Our reserve setting process considers the beneficial impact of forbearance, foreclosure moratorium and other assistance programs available to defaulted borrowers.

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


	For the nine months ended September 30,
	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)	28,135		19,275
Prior years (3)	(35,179)		(6,469)
Total claims and claim (benefits) expenses incurred	(7,044)		12,806

Less claims paid:
Claims and claim expenses paid:
Current year (2)	73		15
Prior years (3)	925		1,566

Total claims and claim expenses paid	998		1,581

Reserve at end of period, net of reinsurance recoverables	75,189		84,184
Add reinsurance recoverables (1)	19,755		20,420
Ending balance	$	94,944	$	104,604

(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 $58.9 million related to prior year defaults remained as of September 30, 2022.

Reinsurance

9 Months Ended

Sep. 30, 2022

Reinsurance Disclosures [Abstract]

Reinsurance

We 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				For the nine months ended
	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
	(In Thousands)
Net premiums written
Direct	$	147,192	$	134,635	$	429,715	$	419,811
Ceded (1)	(33,646)		(22,704)		(81,678)		(65,423)
Net premiums written	$	113,546	$	111,931	$	348,037	$	354,388

Net premiums earned
Direct	$	152,221	$	137,159	$	438,299	$	399,005
Ceded (1)	(33,904)		(23,565)		(82,617)		(68,644)
Net premiums earned	$	118,317	$	113,594	$	355,682	$	330,361

(1) Net of profit commission.

Excess-of-loss reinsurance

Insurance-linked notes

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 $10.7 million and $31.8 million during the three and nine months ended September 30, 2022, respectively, and $10.4 million and $30.0 million during the three and nine months ended September 30, 2021, respectively.

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 and nine months ended September 30, 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 September 30, 2022, the 2018 ILN Transaction was deemed to be in Lock Out due to the default experience of its underlying reference pool 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 both ILN Transactions. The amortization of reinsurance coverage, distribution of collateral assets and amortization of insurance-linked notes issued in connection with the 2018 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. Effective August 31, 2022, a Lock-Out Event for the 2019 ILN Transaction was deemed to have cleared and amortization of the associated reinsurance coverage, and distribution of collateral assets and amortization of the associated insurance-linked notes resumed.

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 and April 25, 2022, NMIC exercised its optional clean-up call to terminate the 2017 and 2020-1 ILN Transactions, respectively. In connection with the termination of each respective transaction, NMIC’s excess of loss reinsurance agreements with Oaktown Re Ltd. and Oaktown Re IV Ltd. were commuted and the insurance-linked notes issued by the respective Oaktown Re Ltd and Oaktown Re IV Ltd. were redeemed in full with a distribution of remaining collateral assets.

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 September 30, 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	$	122,271
2019 ILN Transaction	July 30, 2019	6/1/2018 - 6/30/2019	326,905		218,121		123,424		122,412

2020-2 ILN Transaction	October 29, 2020	4/1/2020 - 9/30/2020 (2)	242,351		110,623		121,777		121,177
2021-1 ILN Transaction	April 27, 2021	10/1/2020 - 3/31/2021 (3)	367,238		322,290		163,708		163,665
2021-2 ILN Transaction (5)	October 26, 2021	4/1/2021 - 9/30/2021 (4)	363,596		363,596		146,229		146,204

(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) As of September 30, 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 its target credit enhancement level is reached.

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 $2.2 million and $3.2 million as of September 30, 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.

Traditional reinsurance

NMIC is a party to two excess-of-loss reinsurance agreements with broad panels of third-party reinsurers – the 2022-1 XOL Transaction, effective April 1, 2022, and the 2022-2 XOL Transaction, effective July 1, 2022 – which we refer to collectively as the XOL Transactions. Each XOL Transaction 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 reinsurers then provide second layer loss protection up to a defined reinsurance coverage amount. The reinsurance coverage amount of each XOL Transaction is set to approximate the PMIERs minimum required assets of its reference pool and decreases from the inception of each respective agreement over a ten-year period in the event the PMIERs minimum required assets of the pool declines. NMIC retains losses in excess of the outstanding reinsurance coverage amount.

As of September 30, 2022, NMIC’s first layer aggregate retained loss exposure under the 2022-1 and 2022-2 XOL Transactions, was $133.4 million and $78.9 million, respectively, and the outstanding reinsurance coverage amount provided under each agreement was $284.0 million and $152.3 million, respectively.

Under the terms of the XOL Transactions, NMIC makes risk premium payments to its third-party reinsurance providers for the outstanding reinsurance coverage amount and ceded aggregate premiums of $4.8 million and $7.7 million during the three and nine months ended September 30, 2022, respectively. NMIC applies claims paid on covered policies against its first layer aggregate retained loss exposure under each agreement. NMIC did not cede any incurred losses on covered policies under the XOL Transactions during the three and nine months ended September 30, 2022, as the aggregate first layer risk retention for each agreement was not exhausted during such periods.

NMIC holds optional termination rights which provide it the discretion to terminate each XOL Transaction on or after a specified date. NMIC may also elect to terminate the XOL Transactions at any point if the outstanding reinsurance coverage amount amortizes to 10% or less of the reinsurance coverage amount provided at inception, or if it determines that it will no longer be able to take full PMIERs asset credit for the coverage. Additionally, under the terms of the treaties, NMIC may

selectively terminate its engagement with individual reinsurers 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 obligation.

Each of the third-party reinsurance providers that is party to the XOL Transactions 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.

Quota share reinsurance

NMIC is a party to six 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, the 2022 QSR Transaction, effective October 1, 2021 and the 2022 Seasoned QSR Transaction, effective July 1, 2022 – 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 to panels of third-party reinsurance providers. Each of the third-party reinsurance providers that is party to the QSR Transactions has an insurer financial strength rating of A- or better by S&P, 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.

Under the terms of the 2022 Seasoned QSR Transaction, NMIC cedes premiums earned related to 95% of the net risk on eligible policies primarily for a seasoned pool of mortgage insurance policies that had previously been covered under the now retired 2017 and 2020-1 ILN Transactions, after the consideration of coverage provided by other QSR Transactions. The 2022 Seasoned QSR Transaction is scheduled to terminate on June 30, 2032. NMIC has the option, based on certain conditions, to terminate the agreement as of June 30, 2025 or quarterly thereafter through December 31, 2027 with the payment of a termination fee, and as of March 31, 2028 or quarterly thereafter without the payment of a termination fee. Such termination would result in NMIC recapturing the related risk.

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:


	As of and for the three months ended				As of and for the nine months ended
	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
	(In Thousands)
Ceded risk-in-force	$	12,511,797	$	7,610,870	$	12,511,797	$	7,610,870

Ceded premiums earned	(42,265)		(28,366)		(101,501)		(81,650)
Ceded claims and claim expenses (benefits)	248		840		(314)		3,214

Ceding commission earned	10,193		6,142		22,225		17,265
Profit commission	23,899		15,191		58,400		42,962

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, except with respect to the 2022 Seasoned QSR Transaction under which it receives a 35% ceding commission. 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, 2022 QSR and 2022 Seasoned QSR Transactions, generally remain below 60%, 61%, 50%, 57.5%, 62%, and 55% 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 $3.5 million as of September 30, 2022.

In accordance with the terms of the 2018, 2020, 2021, 2022 QSR and 2022 Seasoned 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, 2022 QSR and 2022 Seasoned QSR Transactions was $16.3 million as of September 30, 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 September 30, 2022 and December 31, 2021.

Reinsurance - Narrative (Details) $ in Thousands			3 Months Ended		9 Months Ended
Reinsurance - Narrative (Details) $ in Thousands	Apr. 01, 2019 USD ($) reinsurance_engagement	Mar. 31, 2019	Sep. 30, 2022 USD ($) claim	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($) claim	Sep. 30, 2021 USD ($)	Sep. 30, 2020	Sep. 30, 2018	Sep. 30, 2016	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Ceded Credit Risk [Line Items]
Reinsurance coverage amount amortized (as a percent)			10.00%		10.00%
Restricted cash			$ 2,159		$ 2,159					$ 3,165
Number of traditional excess-of-loss reinsurance treaties \| claim			2		2
Reinsurance coverage amount			$ 4,800		$ 7,700
Reinsurance recoverable on unpaid claims			19,755	$ 20,420	19,755	$ 20,420				$ 20,320	$ 17,608
Reinsurance Policy, Type [Axis]: 2022-1 XOL Transaction
Ceded Credit Risk [Line Items]
First layer retained loss			133,400		133,400
Reinsurance coverage			284,000		284,000
Reinsurance Policy, Type [Axis]: 2022-2 XOL Transaction
Ceded Credit Risk [Line Items]
First layer retained loss			78,900		78,900
Reinsurance coverage			152,300		152,300
Reinsurance Policy, Type [Axis]: Aggregate 2018 QSR Transactions
Ceded Credit Risk [Line Items]
Reinsurance recoverable on unpaid claims			16,300		16,300
Reinsurance Policy, Type [Axis]: Aggregate 2020 QSR Transactions
Ceded Credit Risk [Line Items]
Reinsurance recoverable on unpaid claims			16,300		16,300
Reinsurance Policy, Type [Axis]: Aggregate 2021 QSR Transactions
Ceded Credit Risk [Line Items]
Reinsurance recoverable on unpaid claims			16,300		16,300
Reinsurance Policy, Type [Axis]: Aggregate 2022 QSR Transactions
Ceded Credit Risk [Line Items]
Reinsurance recoverable on unpaid claims			16,300		16,300
Reinsurance Policy, Type [Axis]: Aggregate 2022 Seasoned QSR Transactions
Ceded Credit Risk [Line Items]
Reinsurance recoverable on unpaid claims			16,300		$ 16,300
Third-party reinsurers \| Reinsurance Policy, Type [Axis]: 2016 QSR
Ceded Credit Risk [Line Items]
Percent of premiums ceded under QSR Transaction		25.00%			100.00%
Number of reinsurance engagements terminated \| reinsurance_engagement	1
Previously ceded primary risk-in-force recaptured	$ 500,000
Threshold for loss ratio on loans to qualify for profit commission									60.00%
Reinsurance recoverable on unpaid claims			3,500		$ 3,500
Third-party reinsurers \| Reinsurance Policy, Type [Axis]: 2018 QSR
Ceded Credit Risk [Line Items]
Percent of premiums ceded under QSR Transaction					20.00%
Percent of premiums earned under 2018 QSR Transaction					25.00%
Threshold for loss ratio on loans to qualify for profit commission								61.00%
Third-party reinsurers \| Reinsurance Policy, Type [Axis]: 2020 QSR
Ceded Credit Risk [Line Items]
Threshold for loss ratio on loans to qualify for profit commission							50.00%
Third-party reinsurers \| Reinsurance Policy, Type [Axis]: 2020 QSR Transaction
Ceded Credit Risk [Line Items]
Percent of premiums earned under 2018 QSR Transaction					21.00%
Third-party reinsurers \| Reinsurance Policy, Type [Axis]: 2021 QSR
Ceded Credit Risk [Line Items]
Threshold for loss ratio on loans to qualify for profit commission						57.50%
Third-party reinsurers \| Reinsurance Policy, Type [Axis]: 2021 QSR Transaction
Ceded Credit Risk [Line Items]
Percent of premiums earned under 2018 QSR Transaction					22.50%
Third-party reinsurers \| Reinsurance Policy, Type [Axis]: 2022 QSR
Ceded Credit Risk [Line Items]
Threshold for loss ratio on loans to qualify for profit commission					62.00%
Third-party reinsurers \| Reinsurance Policy, Type [Axis]: 2022 QSR Transaction
Ceded Credit Risk [Line Items]
Percent of premiums earned under 2018 QSR Transaction					20.00%
Third-party reinsurers \| Reinsurance Policy, Type [Axis]: 2022 Seasoned QSR
Ceded Credit Risk [Line Items]
Threshold for loss ratio on loans to qualify for profit commission					55.00%
Third-party reinsurers \| Reinsurance Policy, Type [Axis]: 2022 Seasoned QSR Transaction
Ceded Credit Risk [Line Items]
Percent of premiums earned under 2018 QSR Transaction					95.00%
Percentage of ceding commission received					35.00%
Third-party reinsurers \| Reinsurance Policy, Type [Axis]: 2023 QSR Transaction
Ceded Credit Risk [Line Items]
Percent of premiums earned under 2018 QSR Transaction					20.00%
Third-party reinsurers \| Reinsurance Policy, Type [Axis]: Oaktown Re Vehicles
Ceded Credit Risk [Line Items]
Risk premiums paid			$ 10,700	$ 10,400	$ 31,800	$ 30,000
Third-party reinsurers \| Reinsurance Policy, Type [Axis]: QSR Transactions, Excluding 2016 QSR
Ceded Credit Risk [Line Items]
Percentage of ceding commission received					20.00%
Maximum
Ceded Credit Risk [Line Items]
Reinsurance coverage, term of underlying mortgage amortization (in years)					12 years 6 months
Maximum \| Third-party reinsurers \| Reinsurance Policy, Type [Axis]: 2016 QSR
Ceded Credit Risk [Line Items]
Percent of premiums ceded under QSR Transaction	20.50%	25.00%
Maximum \| Third-party reinsurers \| Reinsurance Policy, Type [Axis]: Oaktown Re LTD
Ceded Credit Risk [Line Items]
Anticipated payment related to annual operating expenses					$ 300
Maximum \| Third-party reinsurers \| Reinsurance Policy, Type [Axis]: Oaktown Re Vehicles
Ceded Credit Risk [Line Items]
Anticipated payment related to annual operating expenses					$ 250
Minimum
Ceded Credit Risk [Line Items]
Reinsurance coverage, term of underlying mortgage amortization (in years)					10 years

Reserves for Insurance Claims and Claim (Benefits) Expenses - Reconciliation of Reserve Balances for Insurance Claims and Claim Expense (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 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	28,135	19,275
Prior years	(35,179)	(6,469)
Total claims and claim (benefits) expenses incurred	(7,044)	12,806
Claims and claim expenses paid:
Current year	73	15
Prior years	925	1,566
Total claims and claim expenses paid	998	1,581
Reserve at end of period, net of reinsurance recoverables	75,189	84,184
Add reinsurance recoverables	19,755	20,420
Ending balance	94,944	104,604
Current year case reserves	23,300	14,000
Current year IBNR	4,200	4,800
Prior year case reserves	29,200	1,800
Prior year, IBNR	$ 4,700	$ 5,000

Investments - Net Investment Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Investment Income, Net [Abstract]
Investment income	$ 12,314	$ 10,170	$ 34,084	$ 29,003
Investment expenses	(369)	(339)	(1,019)	(976)
Net investment income	$ 11,945	$ 9,831	$ 33,065	$ 28,027

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Debt securities, amortized cost	$ 2,248,737	$ 2,078,773
Restricted cash	$ 2,159	$ 3,165
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, issued (in shares)	86,463,874	85,792,849
Common stock, outstanding (in shares)	83,796,313	85,792,849
Common stock, authorized (in shares)	250,000,000	250,000,000
Treasury stock, common shares (in shares)	2,667,561	0

Regulatory Information - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2022	Apr. 01, 2022	Dec. 31, 2021
NMIC and Re One combined
Statutory Accounting Practices [Line Items]
Net income amount	$ 23,600	$ 8,700	$ 67,800	$ 23,900
Statutory capital	2,167,158		2,167,158				$ 1,930,487
Aggregate dividend capacity						$ 34,900
NMIC and Re One combined \| Forecast
Statutory Accounting Practices [Line Items]
Aggregate dividend capacity					$ 34,900
Re One
Statutory Accounting Practices [Line Items]
Statutory capital	$ 5,600		$ 5,600				$ 5,600

Organization, Basis of Presentation and Summary of Accounting Principles (Policies)	9 Months Ended
	Sep. 30, 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 - Adopted and Not Yet Adopted	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 have evaluated the impact of the adoption of this guidance and have determined it will not have a material impact 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.
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 September 30, 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 $2.0 million and $2.3 million reserve for premium write-offs at September 30, 2022 and December 31, 2021, respectively.

Reinsurance - ILN Transactions (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Oct. 26, 2021	Apr. 27, 2021	Oct. 29, 2020	Jul. 30, 2019	Jul. 25, 2018
Reinsurance Policy, Type [Axis]: 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	122,271
Reinsurance Policy, Type [Axis]: 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	218,121
Initial First Layer Retained Loss					$ 123,424
Current first layer retained loss	$ 122,412
Reinsurance Policy, Type [Axis]: 2020-2 ILN
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
Percentage of population with production prior to period start date	1.00%
Reinsurance Policy, Type [Axis]: 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	$ 110,623
Initial First Layer Retained Loss				$ 121,777
Current first layer retained loss	$ 121,177
Reinsurance Policy, Type [Axis]: 2021-1 ILN
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
Percentage of population with production prior to period start date	1.00%
Reinsurance Policy, Type [Axis]: 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	$ 322,290
Initial First Layer Retained Loss			$ 163,708
Current first layer retained loss	$ 163,665
Reinsurance Policy, Type [Axis]: 2021-2 ILN
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
Percentage of population with production prior to period start date	2.00%
Reinsurance Policy, Type [Axis]: 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	$ 146,204

Organization, Basis of Presentation and Summary of Accounting Principles	9 Months Ended
	Sep. 30, 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 (WHO) 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 have evaluated the impact of the adoption of this guidance and have determined it will not have a material impact 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.

Fair Value of Financial Instruments - Valuation Assumptions for Warrant Liabilities (Details)	Sep. 30, 2021 $ / shares	Apr. 30, 2012
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	22.61
Significant Unobservable Inputs (Level 3) \| Valuation technique, option pricing model \| Risk free interest rate
Key Inputs and Assumptions, Valuation Techniques
Warrant liability, measurement input	0.0005
Significant Unobservable Inputs (Level 3) \| Valuation technique, option pricing model \| Expected life
Key Inputs and Assumptions, Valuation Techniques
Warrant liability, expected life	6 months 21 days
Significant Unobservable Inputs (Level 3) \| Valuation technique, option pricing model \| Expected volatility
Key Inputs and Assumptions, Valuation Techniques
Warrant liability, measurement input	0.344
Significant Unobservable Inputs (Level 3) \| Valuation technique, option pricing model \| Dividend yield
Key Inputs and Assumptions, Valuation Techniques
Warrant liability, measurement input	0

Reinsurance (Tables)

9 Months Ended

Sep. 30, 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				For the nine months ended
	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
	(In Thousands)
Net premiums written
Direct	$	147,192	$	134,635	$	429,715	$	419,811
Ceded (1)	(33,646)		(22,704)		(81,678)		(65,423)
Net premiums written	$	113,546	$	111,931	$	348,037	$	354,388

Net premiums earned
Direct	$	152,221	$	137,159	$	438,299	$	399,005
Ceded (1)	(33,904)		(23,565)		(82,617)		(68,644)
Net premiums earned	$	118,317	$	113,594	$	355,682	$	330,361

(1) Net of profit commission.

The following table shows amounts related to the QSR Transactions:


	As of and for the three months ended				As of and for the nine months ended
	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
	(In Thousands)
Ceded risk-in-force	$	12,511,797	$	7,610,870	$	12,511,797	$	7,610,870

Ceded premiums earned	(42,265)		(28,366)		(101,501)		(81,650)
Ceded claims and claim expenses (benefits)	248		840		(314)		3,214

Ceding commission earned	10,193		6,142		22,225		17,265
Profit commission	23,899		15,191		58,400		42,962

Schedule of ILN transactions


($ 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	$	122,271
2019 ILN Transaction	July 30, 2019	6/1/2018 - 6/30/2019	326,905		218,121		123,424		122,412

2020-2 ILN Transaction	October 29, 2020	4/1/2020 - 9/30/2020 (2)	242,351		110,623		121,777		121,177
2021-1 ILN Transaction	April 27, 2021	10/1/2020 - 3/31/2021 (3)	367,238		322,290		163,708		163,665
2021-2 ILN Transaction (5)	October 26, 2021	4/1/2021 - 9/30/2021 (4)	363,596		363,596		146,229		146,204

(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.

Premium Receivable (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
Premium Receivable (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Insurance [Abstract]
Number of days to be written off	120 days
Premium receivable, allowance for credit loss, uncollected	$ 2.0	$ 2.3

Regulatory Information

9 Months Ended

Sep. 30, 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 $23.6 million and $67.8 million for the three and nine months ended September 30, 2022, respectively, compared to $8.7 million and $23.9 million for the three and nine months September 30, 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 September 30, 2022 and December 31, 2021.



	September 30, 2022		December 31, 2021
	(In Thousands)
Statutory surplus	$	911,369	$	893,848
Contingency reserve	1,255,789		1,036,639
Statutory capital (1)	$	2,167,158	$	1,930,487

Risk-to-capital	10.9:1		11.6:1

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

Re One had $5.6 million of statutory capital at September 30, 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.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Assets
Fixed maturities, available-for-sale, at fair value (amortized cost of $2,248,737 and $2,078,773 as of September 30, 2022 and December 31, 2021, respectively)	$ 1,973,931	$ 2,085,931
Cash and cash equivalents (including restricted cash of $2,159 and $3,165 as of September 30, 2022 and December 31, 2021, respectively)	125,812	76,646
Premiums receivable	67,202	60,358
Accrued investment income	13,342	11,900
Prepaid expenses	4,694	3,530
Deferred policy acquisition costs, net	59,483	59,584
Software and equipment, net	32,156	32,047
Intangible assets and goodwill	3,634	3,634
Prepaid reinsurance premiums	1,454	2,393
Reinsurance recoverable	19,755	20,320
Other assets	102,380	94,238
Total assets	2,403,843	2,450,581
Liabilities
Debt	395,683	394,623
Unearned premiums	130,652	139,237
Accounts payable and accrued expenses	73,945	72,000
Reserve for insurance claims and claim expenses	94,944	103,551
Reinsurance funds withheld	3,716	5,601
Warrant liability, at fair value	0	2,363
Deferred tax liability, net	166,609	164,175
Other liabilities	12,428	3,245
Total liabilities	877,977	884,795
Commitments and contingencies (see Note 11)
Shareholders' equity
Common stock - class A shares, $0.01 par value; 86,463,874 shares issued and 83,796,313 shares outstanding as of September 30, 2022 and 85,792,849 shares issued and outstanding as of December 31, 2021 (250,000,000 shares authorized)	865	858
Additional paid-in capital	969,359	955,302
Treasury Stock, at cost: 2,667,561 and 0 common shares as of September 30, 2022 and December 31, 2021, respectively	(51,195)	0
Accumulated other comprehensive (loss) income, net of tax	(221,266)	1,485
Retained earnings	828,103	608,141
Total shareholders' equity	1,525,866	1,565,786
Total liabilities and shareholders' equity	$ 2,403,843	$ 2,450,581

Investments - Fair Values and Gross Unrealized Gains and Losses (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 2,248,737	$ 2,078,773
Gross unrealized gains	417	30,353
Gross unrealized losses	(275,223)	(23,195)
Fair Value	1,973,931	2,085,931
U.S. Treasury securities and obligations of U.S. government agencies
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	82,275	29,443
Gross unrealized gains	82	981
Gross unrealized losses	(2,445)	0
Fair Value	79,912	30,424
Municipal debt securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	569,931	553,793
Gross unrealized gains	33	5,689
Gross unrealized losses	(81,109)	(5,404)
Fair Value	488,855	554,078
Corporate debt securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	1,409,344	1,388,204
Gross unrealized gains	248	22,990
Gross unrealized losses	(185,066)	(17,364)
Fair Value	1,224,526	1,393,830
Asset-backed securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	75,783	96,324
Gross unrealized gains	0	684
Gross unrealized losses	(6,374)	(427)
Fair Value	69,409	96,581
Total bonds
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	2,137,333	2,067,764
Gross unrealized gains	363	30,344
Gross unrealized losses	(274,994)	(23,195)
Fair Value	1,862,702	2,074,913
Short-term investments
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	111,404	11,009
Gross unrealized gains	54	9
Gross unrealized losses	(229)	0
Fair Value	$ 111,229	$ 11,018

Earnings per Share (EPS)

9 Months Ended

Sep. 30, 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 September 30,				For the nine months ended September 30,
	2022		2021		2022		2021
	(In Thousands, except for per share data)
Net income	$	76,838	$	60,193	$	219,962	$	170,606
Basic weighted average shares outstanding	84,444		85,721		85,369		85,563
Basic earnings per share	$	0.91	$	0.70	$	2.58	$	1.99

Net income	$	76,838	$	60,193	$	219,962	$	170,606
Gain from change in fair value of warrant liability	—		—		(1,113)		(454)
Diluted net income	$	76,838	$	60,193	$	218,849	$	170,152

Basic weighted average shares outstanding	84,444		85,721		85,369		85,563
Dilutive effect of issuable shares	1,041		1,159		1,051		1,231
Diluted weighted average shares outstanding	85,485		86,880		86,420		86,794

Diluted earnings per share	$	0.90	$	0.69	$	2.53	$	1.96

Anti-dilutive shares	30		1		30		2

Regulatory Information (Tables)

9 Months Ended

Sep. 30, 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 September 30, 2022 and December 31, 2021.



	September 30, 2022		December 31, 2021
	(In Thousands)
Statutory surplus	$	911,369	$	893,848
Contingency reserve	1,255,789		1,036,639
Statutory capital (1)	$	2,167,158	$	1,930,487

Risk-to-capital	10.9:1		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

Warrants	9 Months Ended
Warrants	Sep. 30, 2022
Debt Disclosure [Abstract]
Warrants	Warrants We issued 992 thousand warrants in connection with a private placement of our common stock in April 2012 with a ten-year contractual term that expired in April 2022. Each warrant provided 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. On April 24, 2022, 90 thousand warrants expired unexercised, resulting in a gain of approximately $0.9 million. No warrants remained outstanding as of September 30, 2022 and there were no warrant exercises or changes in warrant liability fair value during the three months ended September 30, 2022. During the nine months ended September 30, 2022, 110 thousand warrants were exercised resulting in the issuance of 84 thousand shares of common stock. Upon exercise, we reclassified approximately $1.3 million of warrant fair value from warrant liability to additional paid-in capital. During the three months ended September 30, 2021, 32 thousand warrants were exercised resulting in the issuance of 28 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. During the nine months ended September 30, 2021, 73 thousand warrants were exercised resulting in the issuance of 60 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.

Commitments and Contingencies

9 Months Ended

Sep. 30, 2022

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

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 $10.7 million and $12.2 million in "Other assets" and "Other liabilities," respectively, on our consolidated balance sheet as of September 30, 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 September 30, 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.

The following table provides a summary of our ROU asset and lease liability assumptions as of September 30, 2022:


Weighted-average remaining lease term	7.4 years
Weighted-average discount rate	6.50	%

Cash paid on our operating leases for the three and nine months ended September 30, 2022 was $0.4 million and $0.5 million, respectively, compared to $0.6 million and $1.9 million for the three and nine months ended September 30, 2021, respectively. Lease expenses incurred for the three and nine months ended September 30, 2022 were $0.5 million and $1.5 million, respectively, compared to $0.6 million and $1.7 million for the three and nine months ended September 30, 2021.

Future payments due under our existing operating leases as of September 30, 2022 are as follows:


	(In Thousands)

Remaining in 2022	$	313
2023	1,498
2024	2,080
2025	2,128
2026	2,190
2027	2,256
2028 and thereafter	5,316


Total undiscounted lease payments	15,781
Less effects of discounting	(3,576)
Present value of lease payments	$	12,205

Lease expense is recorded in underwriting and operating expenses on the consolidated statements of operations and comprehensive income. Our existing leases have original 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.

Litigation

We record a liability when we believe that it is probable that a loss has been incurred, and the amount can be reasonably estimated. If we determine that a loss is reasonably possible, we disclose an estimate of the possible loss or range of loss. If no estimate can be made, we disclose the matter as such. We evaluate litigation and other legal developments that could affect the amount of liability that may need to be accrued, related reasonably possible losses disclosed and make adjustments as appropriate. Significant judgment is required to determine both the likelihood and the estimated amount of losses related to such matters.

We are currently monitoring litigation regarding the refund of certain mortgage insurance premiums as it pertains to provisions of the Homeowners Protection Act and have been named as a third-party defendant in one such case. We are unable to assess the outcome of such litigation at this time or its potential impact on us.

Reinsurance - Effect of Reinsurance Agreements on Premiums Written and Earned (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Net premiums written
Direct	$ 147,192	$ 134,635	$ 429,715	$ 419,811
Ceded	(33,646)	(22,704)	(81,678)	(65,423)
Net premiums written	113,546	111,931	348,037	354,388
Net premiums earned
Direct	152,221	137,159	438,299	399,005
Ceded	(33,904)	(23,565)	(82,617)	(68,644)
Net premiums earned	$ 118,317	$ 113,594	$ 355,682	$ 330,361

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Revenues
Net premiums earned	$ 118,317	$ 113,594	$ 355,682	$ 330,361
Net investment income	11,945	9,831	33,065	28,027
Net realized investment gains	14	3	475	15
Other revenues	301	613	1,016	1,597
Total revenues	130,577	124,041	390,238	360,000
Expenses
Insurance claims and claim (benefits) expenses	(3,389)	3,204	(7,044)	12,806
Underwriting and operating expenses	27,144	34,669	90,779	103,460
Service expenses	197	787	963	1,859
Interest expense	8,036	7,930	24,128	23,767
Gain from change in fair value of warrant liability	0	0	(1,113)	(454)
Total expenses	31,988	46,590	107,713	141,438
Income before income taxes	98,589	77,451	282,525	218,562
Income tax expense	21,751	17,258	62,563	47,956
Net income	$ 76,838	$ 60,193	$ 219,962	$ 170,606
Earnings per share
Basic (in dollars per share)	$ 0.91	$ 0.70	$ 2.58	$ 1.99
Diluted (in dollars per share)	$ 0.90	$ 0.69	$ 2.53	$ 1.96
Weighted average common shares outstanding
Basic (in shares)	84,444	85,721	85,369	85,563
Diluted (in shares)	85,485	86,880	86,420	86,794
Comprehensive income:
Net income	$ 76,838	$ 60,193	$ 219,962	$ 170,606
Other comprehensive loss, net of tax:
Unrealized losses in accumulated other comprehensive income (loss), net of tax benefit of $15,932 and $2,165 for the three months ended September 30, 2022 and 2021, and $59,112 and $9,168 for the nine month ended September 30, 2022 and 2021, respectively	(59,936)	(8,144)	(222,374)	(34,487)
Reclassification adjustment for realized gains included in net income, net of tax expense of $3 and $1 for the three months ended September 30, 2022 and 2021, and $100 and $3 for the nine months ended September 30, 2022 and 2021, respectively	(10)	(2)	(377)	(12)
Other comprehensive loss, net of tax	(59,946)	(8,146)	(222,751)	(34,499)
Comprehensive income (loss)	$ 16,892	$ 52,047	$ (2,789)	$ 136,107

Reserves for Insurance Claims and Claim Expenses - Narrative (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2022 USD ($) claim loan	Dec. 31, 2021 USD ($)	Sep. 30, 2021 USD ($) loan policy	Dec. 31, 2020 USD ($)
Liability for Claims and Claims Adjustment Expense [Line Items]
Primary loans in default \| loan	4,096		7,670
Total gross liability for unpaid claims and claim adjustment expenses	$ 94,944	$ 103,551	$ 104,604	$ 90,567
Number of claims paid \| claim	59
Claims paid, including amounts covered by insurance	$ 1,200
Default percent (in percent)	0.71%		1.56%
Total number of policies in-force	580,525		490,714
Reserve for prior year insurance claims and claim expenses	$ 58,900
Fannie Mae
Liability for Claims and Claims Adjustment Expense [Line Items]
Number of loans in pool past due 60 days or more \| loan	47
Risk-in-Force of loans in pool past due 60 days or more	$ 3,600
Loan-to-value ratio (less than)	0.80
Claims applied to pool deductible	$ 1,000
Deductible on policy	$ 9,400
Reinsurance Policy, Type [Axis]: 2016 QSR Transaction \| Fannie Mae
Liability for Claims and Claims Adjustment Expense [Line Items]
Percent of pool RIF reinsured	100.00%
Reinsurance Policy, Type [Axis]: QSR Transactions
Liability for Claims and Claims Adjustment Expense [Line Items]
Number of covered claims included in number of claims paid \| claim \| claim	56
Component of claims paid covered under QSR Transaction	$ 300

Commitments and Contingencies - Right-of-Use Asset and Lease Liability Assumptions (Details)	Sep. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Weighted-average remaining lease term (in years)	7 years 4 months 24 days
Weighted-average discount rate	6.50%

Investments - Net Realized Investment Gains (Losses) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Investments, Debt and Equity Securities [Abstract]
Gross realized investment gains	$ 24	$ 3	$ 490	$ 15
Gross realized investment losses	(10)	0	(15)	0
Net realized investment gains	$ 14	$ 3	$ 475	$ 15

Organization, Basis of Presentation and Summary of Accounting Principles - Narrative (Details)	Sep. 30, 2022 state
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of states in which the entity operates	50

Subsequent Events	9 Months Ended
Subsequent Events	Sep. 30, 2022
Subsequent Events [Abstract]
Subsequent Events	Subsequent EventsOn November 1, 2022, NMIC entered into a reinsurance agreement with a broad panel of highly rated reinsurers that provides for $96.8 million of aggregate excess-of-loss reinsurance coverage at inception for new delinquencies on an existing portfolio of mortgage insurance policies primarily written between July 1, 2022, and September 30, 2022 (2022-3 XOL Transaction). For the reinsurance coverage period, NMIC will retain the first layer of $106.3 million of aggregate losses and reinsurers then provide second layer coverage up to $96.8 million, subject to retained participation limits. NMIC will then retain losses in excess of the outstanding reinsurance coverage amount.

Debt	9 Months Ended
Debt	Sep. 30, 2022
Debt Disclosure [Abstract]
Debt	Debt Senior Secured Notes At September 30, 2022, we had a $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. 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 September 30, 2022 and December 31, 2021, approximately $4.3 million and $5.4 million, respectively, of unamortized debt issuance costs remained. At September 30, 2022 and December 31, 2021, $9.8 million and $2.5 million 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 Secured Overnight Financing 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 September 30, 2022 and December 31, 2021, 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 September 30, 2022, the applicable commitment fee was 0.30%. For the three and nine months ended September 30, 2022, we recorded $0.2 million and $0.6 million of commitment fees in interest expense, respectively. 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 September 30, 2022, remaining unamortized deferred debt issuance costs were $1.3 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 September 30, 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 https://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 https://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 https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (a)
-URI https://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 https://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 https://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 https://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 https://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 https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1E
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495348-112611

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-URI https://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 https://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 https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

+ Details

Commitments and Contingencies (Tables)

9 Months Ended

Sep. 30, 2022

Commitments and Contingencies Disclosure [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 September 30, 2022:


Weighted-average remaining lease term	7.4 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 September 30, 2022 are as follows:


	(In Thousands)

Remaining in 2022	$	313
2023	1,498
2024	2,080
2025	2,128
2026	2,190
2027	2,256
2028 and thereafter	5,316


Total undiscounted lease payments	15,781
Less effects of discounting	(3,576)
Present value of lease payments	$	12,205