Financial Data and Key Metrics Changes - For the full year 2025, the company reported adjusted operating income of $688 million or $4.61 per diluted share, with a year-end adjusted book value per share increasing by 11% to $37.87 [4][12] - In Q4 2025, adjusted operating income was $179 million or $1.23 per diluted share, compared to $1.09 per diluted share in the same period last year [12][14] - Adjusted return on equity for Q4 was 13.5% [7][12] Business Line Data and Key Metrics Changes - New insurance written in Q4 was $14 billion, up 2% sequentially and 8% year-over-year [13] - The primary insurance in force reached $273 billion in Q4, up $1 billion from Q3 2025 and $4 billion year-over-year [14] - Operating expenses for Q4 were $59 million, with an expense ratio of 24%, compared to $53 million and 22% in Q3 2025 [18] Market Data and Key Metrics Changes - Persistency was 80% in Q4, down 3 points sequentially and 2 points year-over-year [13] - The risk-weighted average FICO score of the insurance in-force portfolio was 746, with a risk-weighted average loan-to-value ratio of 93% [8] Company Strategy and Development Direction - The company is focused on disciplined capital allocation, supporting existing policyholders, and investing in business growth while returning excess capital to shareholders [9][10] - The company plans to return approximately $500 million to shareholders in 2026, supported by a strong capital position and effective risk management [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the uncertain macro environment and highlighted strong long-term housing demand driven by demographic tailwinds [23] - The company remains engaged with policymakers regarding housing affordability and supply constraints, indicating a proactive approach to evolving regulatory environments [31][32] Other Important Information - The company received multiple credit ratings upgrades and industry awards, reflecting its commitment to excellence and employee experience [6][7] - The PMIER sufficiency ratio was 162%, providing significant financial flexibility [19] Q&A Session Summary Question: Capital return guidance for 2026 - Management is confident in delivering $500 million back to shareholders but will evaluate market dynamics and business performance throughout the year [25][26] Question: Regulatory environment and potential FHA re-rate cut - Management is actively engaged with the administration on various regulatory topics, including affordability challenges and credit score discussions [30][32] Question: Mortgage market expectations for 2026 - The company anticipates a 10%-15% increase in the mortgage insurance market from 2025 to 2026, based on external forecasts [34] Question: Default rates and delinquency trends - Management expects new delinquencies to moderate, with a focus on the aging of book years contributing to delinquency patterns [38] Question: Performance of new book years - Recent book years are performing in line with pricing expectations, with no significant negative variations observed [44]