Even though NMI Holdings Inc. lost $2.5 million in the first quarter, the Emeryville, Calif.-based private mortgage insurer said it remains on track to become profitable for the first time in the second half of this year.
In the first quarter of 2015, NMI lost $7.8 million.
Its National MI subsidiary did $4.3 billion of new insurance written during the quarter, compared with only $1.7 billion in the same period the prior year.
Primary insurance-in-force at the end of the quarter was $18.6 billion, compared with just $4.8 billion on March 31, 2015. National MI is the newer of the two private mortgage insurers which started in the business after the housing crisis.
"We continue to expect GAAP profitability in the second half of 2016 and thereafter to demonstrate the growing earnings leverage this business produces as we scale into our largely fixed expense base."
"In addition, we currently are negotiating reinsurance relationships that we believe will provide substantial capital credit while allowing for continued growth in net premiums and the generation of internal capital. We expect that reinsurance will become a permanent part of our capital structure and will allow us to defer indefinitely an equity capital raise," NMI Chairman and CEO Bradley Shuster said in a press release.
