 EMERYVILLE, Calif., Aug. 05, 2020 GLOBE NEWSWIRE -- NMI Holdings, Inc. Nasdaq: NMIH today reported GAAP net income of 26.8 million, or 0.36 per diluted share, for the second quarter ended June 30, 2020, which compares to 58.3 million, or 0.74 per diluted share, in the first quarter ended March 31, 2020 and 39.1 million, or 0.56 per diluted share, in the second quarter ended June 30, 2019. Adjusted net income for the quarter was 29.7 million or 0.40 per diluted share, which compares to 52.7 million or 0.75 per diluted share in the first quarter ended March 31, 2020 and 41.4 million or 0.59 per diluted share in the second quarter ended June 30, 2019. Results for the second quarter ended June 30, 2020, reflect the impact of additional claims and claim expenses incurred on higher default experience in connection with the COVID-19 pandemic. The non-GAAP financial measures adjusted net income, adjusted diluted earnings per share and adjusted return-on-equity are presented in this release to enhance the comparability of financial results between periods. See Use of Non-GAAP Financial Measures and our reconciliation of such measures to their most comparable GAAP measures, below. Claudia Merkle, CEO of National MI, said, From the start of this crisis, we have taken steps to protect the health and safety of our employees and ensure our continued ability to seamlessly support our lenders and their borrowers. While still early, we have been encouraged by the resiliency weve seen in the housing market. Demand has been robust, house prices have continued to rise and record low interest rates have giving more Americans a chance to access homeownership at a time when its most critical. Merkle continued, This is the time when our customers need us most, and our broadly conservative stance heading into this crisis, and the recent success we have achieved in the capital and reinsurance markets positions us well to continue supporting them and the overall housing market during the COVID-19 pandemic.Selected highlights from the second quarter 2020 include: Primary insurance-in-force at quarter end was 98.9 billion, up 21 compared to the second quarter of 2019 New insurance written was 13.1 billion, up 8 compared to 12.2 billion in the second quarter of 2019 Net premiums earned were 98.9 million, up 19 compared to 83.2 million in the second quarter of 2019 Underwriting and operating expenses were 30.4 million, including 0.2 million of capital market transaction costs, compared to 32.2 million in the second quarter of 2019, including 0.7 million of capital market transaction costs Insurance claims and claim expenses were 34.3 million, compared to 2.9 million in the second quarter of 2019, reflecting higher default experience attributable to the COVID-19 pandemic At quarter-end, cash and investments were 1.9 billion and shareholders equity was 1.3 billion, equal to 14.82 per share Annualized return-on-equity for the quarter was 9.6 and annualized adjusted return-on-equity was 10.7 At quarter-end, the company reported total PMIERs available assets of 1.7 billion and net risk- based required assets of 1.0 billionConcurrent with the release of second quarter earnings, the company has filed a Form 8-K that includes its current assessment of the impact the COVID-19 outbreak will have on the U.S. economy and housing market, and its perspective on the implications for the U.S. mortgage insurance market, and its business performance and financial position. The Form 8-K also includes selected operating statistics for the month ended July 31, 2020. Investors may access the Form 8-K on the companys website, in the Investor Relations section. Quarter EndedQuarter EndedQuarter EndedChange 1Change 1 630202033120206302019QQYY INSURANCE METRICS billions Primary Insurance-in-Force 98.9 98.5 81.7 21 New Insurance Written - NIW Monthly premium11.9 10.5 11.1 14 7 Single premium1.2 0.8 1.1 48 11 Total 213.1 11.3 12.2 16 8 FINANCIAL HIGHLIGHTS millions, except per share amounts Net Premiums Earned98.9 98.7 83.2 19 Insurance Claims and Claim Expenses34.3 5.7 2.9 503 1075 Underwriting and Operating Expenses 330.4 32.3 32.2 66 Net Income 26.8 58.3 39.1 5431 Adjusted Net Income 29.7 52.7 41.4 4428 Cash and Investments 1,855 1,180 1,053 57 76 Shareholders Equity 1,257 975 812 29 55 Book Value per Share14.82 14.15 11.99 5 24 Loss Ratio34.75.83.5 Expense Ratio 330.732.738.7 1 Percentages may not be replicated based on the rounded figures presented in the table. 2 Total may not foot due to rounding. 3 Certain Underwriting and operating expenses have been reclassified as Service expenses in prior periods.Conference Call and Webcast Details The company will hold a conference call, which will be webcast live today, August 5, 2020, at 2:00 p.m. Pacific Time 5:00 p.m. Eastern Time. The webcast will be available on the companys website, in the Investor Relations section. The conference call can also be accessed by dialing 888 734-0328 in the U.S., or 914 495-8578 internationally, and using Conference ID: 3189949 or by referencing NMI Holdings, Inc.About NMI Holdings, Inc.NMI Holdings, Inc. NASDAQ: NMIH, is the parent company of National Mortgage Insurance Corporation National MI, a U.S.-based, private mortgage insurance company enabling low down payment borrowers to realize home ownership while protecting lenders and investors against losses related to a borrowers default. To learn more, please visit Note Regarding Forward-Looking StatementsCertain statements contained in this press release or any other written or oral statements made by or on behalf of the Company in connection therewith may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended the Securities Act, Section 21E of the Securities Exchange Act of 1934, as amended the Exchange Act, and the U.S. Private Securities Litigation Reform Act of 1995 the PSLRA. The PSLRA provides a safe harbor for any forward-looking statements. All statements other than statements of historical fact included in or incorporated by reference in this release are forward-looking statements, including any statements about our expectations, outlook, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance. These statements are often, but not always, made through the use of words or phrases such as anticipate, believe, can, could, may, predict, assume, potential, should, will, estimate, plan, project, continuing, ongoing, expect, intend and similar words or phrases. All forward-looking statements are only predictions and involve estimates, known and unknown risks, assumptions and uncertainties that may turn out to be inaccurate and could cause actual results to differ materially from those expressed in them. Many risks and uncertainties are inherent in our industry and markets. Others are more specific to our business and operations. Important factors that could cause actual events or results to differ materially from those indicated in such statements include, but are not limited to: uncertainty relating to the coronavirus COVID-19 pandemic and the measures taken by governmental authorities and other third parties to combat it, including their impact on the global economy, the U.S. housing, real estate, housing finance and mortgage insurance markets, and the Companys business, operations and personnel, changes in the business practices of Fannie Mae and Freddie Mac collectively, the GSEs, including decisions that have the impact of decreasing or discontinuing the use of mortgage insurance as credit enhancement generally, or with first time homebuyers or on very high loan-to-value mortgages; our ability to remain an eligible mortgage insurer under the private mortgage insurer eligibility requirements PMIERs and other requirements imposed by the GSEs, which they may change at any time; retention of our existing certificates of authority in each state and the District of Columbia D.C. and our ability to remain a mortgage insurer in good standing in each state and D.C.; our future profitability, liquidity and capital resources; actions of existing competitors, including other private mortgage insurers and government mortgage insurers, such as the Federal Housing Administration, U.S. Department of Agricultures Rural Housing Service and the U.S. 