Financial Data and Key Metrics Changes - In Q1 2025, the company reported record total revenue of $173.2 million, up 4% from Q4 2024 and 10.9% from Q1 2024 [12][13] - GAAP net income reached a record $102.6 million, representing a 19% increase compared to Q4 2024 and a 15% increase compared to Q1 2024 [15] - Diluted earnings per share (EPS) was $1.28, up 20% from Q4 2024 and 18% from Q1 2024 [15] - Return on equity (ROE) was 18.1% for the quarter [12] Business Line Data and Key Metrics Changes - The company generated $9.2 billion in new insurance written (NIW) volume, maintaining a record primary insurance in force of $211.3 billion, which is a 1% increase from Q4 2024 and a 6% increase from Q1 2024 [5][12] - Net premiums earned were a record $149.4 million, compared to $143.5 million in Q4 2024 and $136.7 million in Q1 2024 [13] Market Data and Key Metrics Changes - The company's 12-month persistency rate was 84.3% in Q1 2025, slightly down from 84.6% in Q4 2024 [12] - The average loan-to-value (LTV) ratio for the defaulted population was 73.2% [25] Company Strategy and Development Direction - The company emphasized its commitment to providing low-cost, high-value solutions to make homeownership more accessible, while also ensuring the safety of the conventional mortgage market [8][10] - The management highlighted the importance of maintaining a disciplined approach to risk management and pricing, which has positioned the company well to navigate various market cycles [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's performance despite macroeconomic uncertainties, noting that the disciplined management approach will support continued growth and profitability [9][10] - The company is well-positioned to serve customers and invest in employee success, aiming for sustained growth in its high-quality insured portfolio [10][18] Other Important Information - The company extended its long-term IT engagement with Tata Consultancy Services, which is expected to maintain current operating expenses [11][27] Q&A Session Summary Question: Credit performance and vintage stability - Management indicated that recent vintages are performing well, with no significant concerns, although there is a normalization trend expected as the underlying borrower experience stabilizes [21][22] Question: Equity in defaults - The average mark-to-market equity on the defaulted population is 73.2% [25] Question: Impact of TCS renewal on OpEx - The renewal is expected to keep operating expenses stable, with no significant changes anticipated [27][28] Question: Pricing and credit loss expectations amid tariff uncertainties - Management noted that while they are monitoring macroeconomic factors, there are currently no significant changes to pricing or credit loss expectations [31] Question: Provision for new notices in Q1 - The reserve for new notices was $13.5 million, consistent with the previous quarter [32][34] Question: Buyback during the quarter - The company repurchased $25.9 million worth of common stock, retiring 718,000 shares [40]