Good day, ladies and gentlemen. And welcome to NMI Holdings Fourth Quarter and Full Year 2013 Earnings Results Conference Call. At this time, all participants are in listen-only mode. Later, we’ll conduct a question and answer session and instructions will be given at that time. (Operator Instructions). As a reminder, this conference call is being recorded. I would now like to hand the conference over to Mr. Jay Sherwood. Chief Financial Officer, sir you may begin.

Thank you, Saeed. Good afternoon and thank you for joining us today and for your interest in NMI Holdings. I’m Jay Sherwood, the Chief Financial Officer of NMI. Joining me on the call today to discuss the results for the fourth quarter and full year 2013 is Brad Shuster, the company’s Chairman and Chief Executive Officer. I want to remind all participants that today’s earnings release, which may be accessed on NMI’s website located at www.nationalmi.com under the Investor’s tab, includes additional information about the company’s quarterly results, which we may refer to during the call. During the course of this call, we may make comments about our expectations for the future. Actual results could differ materially from those contained in these forward-looking statements. Additional information about those factors that could cause actual results or trends to differ materially from those discussed on the call can be found on our website www.nationalmi.com under the Investor’s tab or through our regulatory filings with the SEC such as our recent Form 10-Q which is filed on December 17, 2013. If and speaks tend to company makes any forward-looking statements, we do not undertake any obligation to update those statements in the future in light of subsequent developments. Further, no interested party should rely on the fact that the guidance of forward-looking statements is current at any time other than the time of this call. I’ll now make some brief comments related to our financial information and then turn the call over to Brad. The company reported a net loss for the quarter ended December 31, 2013 of $13.1 million or $0.23 per share and a net loss of $55.2 million or $0.99 per share for the year-end December 31, 2013. In the fourth quarter of 2013, the company had primary new insurance…

Thank you, Jay. 2013 was a transformative year for NMI. During 2013, we obtained GSE approval, became licensed in 50 out of the 51 jurisdictions where we applied for a certificate of authority, wrote our first mortgage insurance policies, hired a nationwide sales force and completed our initial public offering. In summary, during 2013, we successfully laid the foundation to address the majority of the mortgage insurance market. We made substantial progress on lender integration and expect to begin insuring loans in the correspondent channels of two very large national lenders this month representing a critical milestone for the company. The small and medium size lenders where the majority of mortgage insurance as originated regularly sell loans to these large national lenders making the approvals -- these approvals of critical importance to our ability to fully address the market. We expect to be insuring loans in the retail channel of these two large national institutions at the same time or shortly after we are approved in their correspondent channels. Our national sales force has made good progress opening other customer accounts. As of the end of February 2014, we had approximately 60 lenders sending the company mortgage insurance applications and 34 customers generating new insurance written. One important step in boarding a new customer as a signed master policy agreement; as of the end of February 2014, we have approximately 400 master policy agreements signed with lenders, including 12 of the top 25 sellers of GSE loans with private mortgage insurance, as defined by Inside Mortgage Finance. Most of these lenders have not been able to send us loans prior to the opening of the aforementioned correspondent’s channel; therefore we expect a substantial number of these lenders to convert to customers generating new insurance written in the coming quarters. Turning…

Thank you. (Operator Instructions) Our first question comes from Steve Stelmach from FBR. Your line is open. Please go ahead.

Hi. Good afternoon guys and congrats on the first quarter out of the box.

Thank you, Steve.

Sure. In the past, you guys talked about those two correspondent, relationships to the top five correspondent lenders in the country. The ones that you mentioned today I assume that it’s the same that you’ve mentioned in the past, is that correct, or are these two more sort of correspondent relationships you’re sort of adding to the mix?

No these are the ones we’ve been talking about previously.

Okay.

Steve, this is Jay. We’ve never called them out by name, but yes, we’re being consistent in the discussion here.

Yes. Just making sure that these are the same guys that you’ve referred to in the past times. But okay, going forward, is that guidance still intact in terms of -- you’ve started the integration process and then writing business with those guys or at least the channel in which they opened up to you going forward or is that delayed at all or is it sort of on pace what you guys guided to?

No, it’s on pace. Steve, this is Brad. It’s on pace with what we talked about before. It’s relatively complicated process within a large institution to start doing business with the new mortgage insurer; it’s a fairly infrequent occurrence. So, we’ve been working through all that, we’re in daily if not hourly in some cases contact with the customers. And as we said in our remarks, we expect to start insuring loans here this month with both those institutions.

Steve to remind you, on our last call we said that we expected to be doing that by the end of the first quarter. And as Brad just said, we’re saying exactly that again here.

Got it. So, absolutely no change in guidance there, but maybe put some context around to sort of the customer adoption side beyond those two. You guys mentioned 34 customers generating NIW for you. I think one of your other MI competitors who is relatively new at the same sort of stage in their life cycle, they have disclosed [it faster], they are only doing about 13 customer relationships. So you are over two times that number, in a different part of the world, right, I think the MI number should be a little bit healthy than it was then and your adoption is running at two times their pace. What do you guys attribute that to? Is that execution, how should I think about that versus your comps?

Well Steve, this is Brad. We appreciate your pointing out that differential there, but in absolute term, the number is still relatively small. The exciting thing we look at is the number of master policies we have executed. And then when we open up these correspondent relationships, we can start making many of those go live as we continue to broaden our reach and execute more master policies. So, we think we’re still at the early stages, but the opportunity ahead of us is something that’s really what excites us.

Okay. And then last question and maybe I’ll hop back in the queue. On the NIW side you have pretty big number relative to what I was expecting at least $158 million, yet the revenue came up a little bit later than I expected. What attributes that? Is it mostly the NIW [filings] towards the back half of the quarter, I mean you’ve eclipsed my number of $20 million of NIW versus [your 137] your revenue came a little late, how should I think about that?

Steve that’s right, it’s more about a timing issue there, right?

Okay. Yes, great. All right guys thanks.

Thank you.

Thank you. Our next question comes from Geoffrey Dunn from Dowling & Partners. Your line is open. Please go ahead. Geoffrey Dunn - Dowling & Partners: Thanks. A couple of number questions first, Jay what was the holding company liquidity at the end of the quarter?

So Geoff, are you asking what’s the cash at the holding company level? Geoffrey Dunn - Dowling & Partners: Right.

So let me pull up that number. So Geoff, why don’t you give me your next question, we’ll come back to that. Geoffrey Dunn - Dowling & Partners: Okay. I was hoping that you could also maybe talk about your outlook for expenses, you’ve obviously been doubling out your sales force, but sequentially we saw the expenses come down a bit which I guess surprised me. How should we be thinking about the quarterly run rate as we go into ‘14?

Yes. So Geoff, I think the easiest way to think about it is this, for the year we had and you saw --total expenses of $60 million. And about 50% of those expenses are payroll related and we’re going to increase our headcount from an average of 120 people in 2013 going about 180 people in 2014 so up about 50%. So you can -- this will get you, we haven’t guidance on the expense, but this will get you relatively close. If you increase that payroll number by the same amount by about 50% and keep all their other expenses relatively constant, I think you will get to a reasonable number for expenses in 2014. Geoffrey Dunn - Dowling & Partners: Okay, great.

So going back, you were asking about the cash at the holding company level, Geoff? Geoffrey Dunn - Dowling & Partners: Yes.

So we have about $265 million in cash at the holding company as of year-end. Geoffrey Dunn - Dowling & Partners: And then just one technical question and then I have one last big picture. Your new business was not captured inside mortgage financer’s market share statistics, are you reporting to them or did they just miss it for some reason?

I think we will start to report to them going forward at some point this year. Geoffrey Dunn - Dowling & Partners: Okay. And then my last question has to deal with how you are trying to compete in the marketplace. You are adding new lenders; I did see that you lowered some of your lender pays single premium business below peers. How are you approaching the market competitively with pricing, but also with an eye on remaining [years] on your returns?

Geoff, this is Brad. We have said all along we intend to be competitively priced relative to the competition and I think you will see us doing that going forward. So we will offer competitive pricing I think some of the other provisions that we are offering in terms of our underwriting every loan and insight that can help us provide the customers following up with the strong master policy terms and the strong capital creates a nice value proposition that we are having good uptake in the market. And so customer response has been very favorable. There has been some lowering of premiums among the industry participants that has some effect on returns, but the returns are still very attractive and we think will continue to be so for some period of time. And particularly with the market gets back to sort of underwriting a whole gamut of insurable risk there can be some increased premium yields coming with that, so that will help writtens as well.

Hey Geoff this is Jay here. Hey Geoff on the LPMI pricing your comment there? Geoffrey Dunn - Dowling & Partners: Yes.

You may want to double check that data point, there could be FICO bucket or two where we did that, but by and large it can be fair. Geoffrey Dunn - Dowling & Partners: Probably 90 to 95.

Yes. It’s going to be very consistent with everybody else. So I wouldn’t characterize this as [such]. Geoffrey Dunn - Dowling & Partners: That will call my attention as a new entrant, you cut your 90 to 95 LTV lender pay single, and obviously those are lot of backlash when the couple of companies where the FICO cut on monthly, just a couple of months to go. I guess I am just a little surprise to see the pricing adjusted below the peer level, even if it’s just at a sub segment?

Yes, I think that’s a very small segment of the market relative to a five basis point decrease across the board. So I wouldn’t read too much into that. Geoffrey Dunn - Dowling & Partners: Okay. All right thank you.

Thank you.

Thank you. (Operator Instructions) And our next question comes from Jacqueline Ho from Compass Point. Your line is open. Please go ahead.

Guys thanks for taking my question. When you guys are officially on board or approved those two national lenders will you notify us like press release or 8-K?

I don’t think so Jackie. They tend not to allow us to mention their name in the press.

Okay. So just assume this month it will happen and you will start writing with them?

As Brad said, that’s what we are expecting, yes.

Okay. And then just one other quick one book value, what share count are you using? I am not --I’m a little off I am not sure if I am using wrong number?

Hey Jackie, we’ll double check that before, it should be the $57 million or we could be using, $58 million, it could be the actual number. We’d double check that before we can get to you.

Okay. Thank you. That’s it, I appreciate it.

Sure.

Thank you.

Thank you. We have a follow-up question from Steve Stelmach from FBR. Your line is open. Please go ahead.

Yes. Just real quick needed a follow-up to Geoff’s line of questions. How should we think about sort of average premiums going forward even after all those adjustments that you (inaudible) and what your analysts really talked about recently or is there?

Yes, so as we’ve talked about from the start Steve it’s in 50 to 60 basis points is where we expect it to come in.

Okay. So you made some tweaks, but no change in terms of average premiums?

Yes, that’s right.

Got it. Thanks guys.

Thank you.

Thank you. And I’m showing no one in queue at this time.

Okay. All right. Well, we thank you all for your interest in the company and we’ll be talking to you soon. Thanks.

Ladies and gentlemen thank you for participating in today’s conference. This concludes our program. You may all disconnect and have a wonderful day.