Financial Data and Key Metrics Changes - In Q3 2025, the company achieved record total revenue of $178.7 million, with GAAP net income of $96 million, translating to $1.22 per diluted share and a return on equity of 15.6% [10][12] - The company generated $13 billion of new insurance written (NIW) and ended the period with a record $218.4 billion of primary insurance in force, reflecting a 2% increase from Q2 and a 5% increase compared to Q3 2024 [10][12] - The expense ratio reached a record low of 19.3%, indicating significant operating leverage and efficient cost management [11][12] Business Line Data and Key Metrics Changes - The company reported net premiums earned of $151.3 million in Q3, up from $149.1 million in Q2 and $143.3 million in Q3 2024 [11] - Investment income for the quarter was $26.8 million, compared to $24.9 million in Q2 and $22.5 million in Q3 2024 [11] Market Data and Key Metrics Changes - The company noted a 12-month persistency rate of 83.9% in Q3, slightly down from 84.1% in Q2 [10] - The default rate at quarter end was 1.05%, with 7,093 defaults reported, an increase from 6,709 at the end of Q2 [11] Company Strategy and Development Direction - The company emphasized its commitment to providing low-cost down payment support and maintaining a high-quality insured portfolio, positioning itself to capitalize on long-term trends in the housing market [4][8] - The management highlighted the importance of maintaining a robust balance sheet and disciplined expense management to drive growth and shareholder value [7][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the macro environment and housing market, despite potential risks, and noted that the company is well-positioned for continued outperformance [6][8] - The management acknowledged the challenges of new market entrants but emphasized the strength and capacity of the existing players in the private mortgage insurance market [20][22] Other Important Information - The company repurchased $24.6 million of common stock during the quarter, retiring 628,000 shares at an average price of $39.13, with a total repurchase capacity of $256 million remaining [12][13] - Total cash and investments at quarter end were reported at $3.1 billion, with shareholders' equity at $2.5 billion and book value per share at $32.62, reflecting a 4% increase from Q2 and a 16% increase from Q3 2024 [12] Q&A Session Summary Question: Credit performance and new defaults - Management noted that new defaults increased by only 5% year-over-year, indicating a more stable credit environment, and attributed some of the increase to seasonal factors and portfolio seasoning [17][18] Question: Competitive environment and potential new entrants - Management acknowledged awareness of new market entrants but emphasized the challenges of establishing a private mortgage insurance business, suggesting that the current market is well-served by existing players [19][20][22] Question: Consumer strength and housing market observations - Management reported broad economic resilience, with low unemployment and cooling inflation, while noting potential weaknesses in certain housing markets, particularly in Florida and Texas [25][26][28] Question: Reinsurance market dynamics - Management indicated that the reinsurance market remains robust, with favorable pricing achieved, and discussed a preference for traditional reinsurance due to its forward coverage capabilities [29][31] Question: Core yield stability and persistency impacts - Management confirmed that core yield has remained stable at 34 basis points, with expectations for continued stability, while acknowledging potential impacts from refinancing activity [35][36] Question: Proactive strategies for capturing MI on refinanced loans - Management emphasized the importance of maintaining strong relationships with lenders and being present in the market to capture refinancing opportunities, rather than relying on specific strategies [42][43]

Financial Data and Key Metrics Changes - The company achieved a 10% year-to-date growth in tangible book value per share and over 20% growth over the past twelve months [6] - The annualized return on equity was reported at 34% with an operating return on equity of 24% for the quarter [17] - Operating income per share reached $12.29, marking the second-best result ever [17] - Underwriting income was $600 million, up 26% from the previous year [17] - Retained net investment income was $286 million, consistent and significant for the bottom line [17] Business Line Data and Key Metrics Changes - Gross premiums written were $3.4 billion, flat compared to the previous year, while net premiums written were $2.7 billion, also flat [21] - Property catastrophe gross premiums written increased by $98 million or 8% [21] - Other property gross premiums written decreased by $119 million or 24% due to rate decreases [22] - General casualty premiums decreased by $118 million or 19%, with actions taken to reduce exposure [22] - The adjusted combined ratio for underwriting was reported at 73%, reflecting low catastrophe losses [20] Market Data and Key Metrics Changes - The underwriting market remains attractive with healthy returns across property catastrophe and specialty lines [14] - The company successfully grew its property catastrophe portfolio at midyear renewals, outperforming the market [33] - The pricing environment in Florida has stabilized, allowing the company to write 80% of its Florida premium at private terms above market rates [39] Company Strategy and Development Direction - The company aims to grow tangible book value per share over the long term, focusing on underwriting income, investment income, and fee income [6][7] - The strategy includes optimizing the casualty and specialty portfolio while maintaining a strong property catastrophe exposure [15] - The company is positioned to continue delivering shareholder value, with a focus on capital management and share repurchases [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to preserve margins and find opportunities to deploy capital despite potential market fluctuations [55] - The current underwriting market is viewed as attractive, with expectations for continued strong returns [36] - Management noted that the dynamics driving strong results since 2023 are still in effect, supporting sustainable superior returns [36] Other Important Information - The company repurchased 1.6 million shares for $376 million at an average price of $242 per share [30] - The effective tax rate on GAAP net income was 13% for the quarter, influenced by the new 15% Bermuda corporate income tax [30] Q&A Session Summary Question: Reserve releases in the quarter - The reserve releases came from across all accident periods going back to 2017, with half of the losses shared with a joint venture [51] Question: Thoughts on renewals and planning for 2026 - The company has grown its portfolios and continues to execute its strategy well, with expectations that 2026 will look similar to 2025 [55] Question: Management fees and performance - Management fees bounced back due to favorable developments and quicker recovery of deferred fees [60][62] Question: Confidence in pricing and market conditions - The company believes rates will trade at adequate levels, with no downward trend expected in the near term [70] Question: Buybacks and capital deployment - The company has been active in buybacks due to freed-up capital and sees opportunities to deploy capital at attractive prices [71] Question: Impact of Florida tort reform - The tort reform has a more meaningful impact on domestic carriers, with the company seeing some benefits but also price competition [100]

Financial Data and Key Metrics Changes - The company's tangible book value plus accumulated dividends grew by 26% [6] - Operating income exceeded $220 million, with operating income per share just shy of $43 [6][23] - The adjusted combined ratio for the year was 81.5%, while the combined ratio for the Casualty and Specialty segment was 98%, up from 94% the previous year [10][31] Business Line Data and Key Metrics Changes - Underwriting income was $1.6 billion with an adjusted combined ratio of 81.5% [6][30] - The Property segment reported an adjusted combined ratio of 55%, while the Casualty segment reported an adjusted combined ratio of 98% [32][34] - Gross premiums written increased by 32% to $1.17 billion, with significant growth in property catastrophe and specialty lines [31] Market Data and Key Metrics Changes - The company expects an increase in demand for reinsurance in 2025 due to recent catastrophic events [30][43] - Property catastrophe rates were down in the high single digits, but the company found opportunities to grow, keeping top-line premiums flat [14][51] Company Strategy and Development Direction - The integration of Validus has been successful, retaining substantially all of its underwriting portfolio and generating capital efficiencies [9][30] - The company aims to be a first-call market for clients, focusing on strong partnerships and consistent pricing [48][50] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the improving market for property catastrophe reinsurance, anticipating upward pressure on rates [43][44] - The company is prepared to deploy additional capacity to support customers in light of recent catastrophic events [42][43] Other Important Information - The California wildfires are expected to have a pretax net negative impact of approximately $7.5 million based on a market loss estimate of $50 billion [17][18] - The Bermuda government will implement a 15% corporate income tax starting in 2025, which will affect the company's tax expenses [39][40] Q&A Session Summary Question: Concerns about Casualty Specialty combined ratio trends - Management noted that despite the higher combined ratio, they had a profitable year in Casualty Specialty and are comfortable with their reserves [63][65] Question: Impact of California wildfires on renewals - Management indicated that the California wildfires would impact pricing during renewals, with expectations for better opportunities in the upcoming renewals [68][70] Question: Clarification on reserve management and charges - Management confirmed that they have added to reserves in the Casualty segment but emphasized that the overall reserve pool remains in a comfortable position [82][84]