NMI Holdings, Inc. (NASDAQ:NMIH) Q3 2023 Earnings Call Transcript

Geoffrey Dunn: Okay. And then as you think about the assumptions you’re making for your incremental reserving for particularly the assumption on home prices. How negative can you anchor, given the tightness of the housing supply?

Adam Pollitzer: Look, how negative can we anchor to – we have a responsibility to use – to establish a best estimate. But for reserving purposes, we talked for some time that we always aim to take an appropriate, but also an appropriately conservative view. And so in practice, what that generally means is that we do anchor more to our downside scenarios when setting our reserve position. We naturally have to balance that by what we’re actually seeing today. What we see today has to inform at all times our view of what’s going to happen tomorrow. And so as Ravi mentioned, at September 30, we did moderate our expectations for economic strain and house price declines that are embedded in our reserve position. But we also are still embedding a stress bias in our analysis.

Geoffrey Dunn: Okay. All right. Thank you.

Operator: This concludes our question-and-answer session. I’ll now hand back for closing remarks.

Adam Pollitzer: Well, thank you again for joining us. We’ll be hosting our annual Investor Day on Thursday, November 16, in New York and will be participating in the Goldman Sachs Financial Services Conference on December 5. We look forward to speaking with you again soon.

Operator: This conference has now concluded. Thank you for participating. You may now disconnect.