MGIC Investment Corporation Reports First Quarter 2026 Results
Rhea-AI Summary
MGIC Investment (NYSE: MTG) reported Q1 2026 net income of $165.3 million ($0.76 per diluted share) and adjusted net operating income of $165.1 million ($0.76 per diluted share). Return on equity was 13.0%. New insurance written totaled $14.4 billion; insurance in force was $302.7 billion. The company executed a $324 million excess-of-loss reinsurance agreement, repurchased 7.2 million shares for $192.6 million, paid a $0.15 per-share dividend, and announced a $750 million additional buyback authorization.
Positive
- Net income of $165.3 million in Q1 2026
- Adjusted net operating income $165.1 million (per share $0.76)
- Executed $324 million excess-of-loss reinsurance transaction
- Repurchased 7.2 million shares for $192.6 million; additional $750 million authorization
- Declared and paid $0.15 per-share dividend
Negative
- Losses incurred rose to $33.2 million in Q1 2026 from $9.6 million in Q1 2025
- Holding company liquidity declined to $709 million as of March 31, 2026
- Net premiums earned decreased to $235.4 million from $243.7 million year-over-year
News Market Reaction – MTG
In the Apr 30 session, MTG declined 9.10%, reflecting a notable negative market reaction. Argus tracked a trough of -5.3% from its starting point during tracking. Our momentum scanner triggered 61 alerts that day, indicating high trading interest and price volatility. Trading volume was above average at 1.7x the daily average, suggesting increased trading activity.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Feb 02 | Quarterly earnings | Positive | -5.2% | Reported Q4 2025 and full-year 2025 results with strong capital returns. |
| Oct 29 | Quarterly earnings | Positive | +4.3% | Q3 2025 earnings with strong income, NIW growth, and capital actions. |
| Sep 30 | Earnings call scheduling | Neutral | -0.9% | Announcement of timing and access details for Q3 2025 results call. |
| Jul 30 | Quarterly earnings | Positive | +2.1% | Q2 2025 earnings with strong income, ROE, and shareholder returns. |
| Jul 07 | Earnings call scheduling | Neutral | -0.6% | Notice of upcoming Q2 2025 earnings release and conference call. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings-related headlines have produced mixed reactions, with some strong positive moves but also a notable selloff on the prior quarter’s results.
Over the past few quarters, MGIC has consistently reported sizable net income and adjusted operating income, alongside robust capital returns through dividends and share repurchases. Q2 and Q3 2025 earnings saw positive price reactions, while Q4 2025 results on Feb 2, 2026 were followed by a -5.19% move. The current Q1 2026 release continues themes of solid profitability, large insurance in force, and active capital management, fitting into a pattern of steady financial performance but varied market responses to earnings updates.
Key Terms
insurance linked note financial
excess of loss reinsurance financial
insurance in force financial
primary delinquency inventory financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
First Quarter 2026 Net Income of
First Quarter 2026 Adjusted Net Operating Income (Non-GAAP) of
Tim Mattke, CEO of MTG and Mortgage Guaranty Insurance Corporation ("MGIC") said, "We had a strong start to the year, successfully executing on our business strategies and generating solid first quarter results. We achieved a return on equity of
"We are well-positioned to navigate dynamic environments, supported by our deep industry expertise, strong balance sheet, and disciplined approach to capital allocation. Our continued focus and commitment to meet our customers' evolving needs has allowed us to drive long-term shareholder value," concluded Mattke.
SUMMARY FINANCIAL METRICS | Quarter ended | ||
($ in millions, except where otherwise noted) | Q1 2026 | Q4 2025 | Q1 2025 |
Net income | $ 165.3 | $ 169.3 | $ 185.5 |
Net income per diluted share | $ 0.76 | $ 0.75 | $ 0.75 |
Adjusted net operating income | $ 165.1 | $ 168.4 | $ 185.2 |
Adjusted net operating income per diluted share | $ 0.76 | $ 0.75 | $ 0.75 |
New insurance written (NIW) (billions) | $ 14.4 | $ 17.1 | $ 10.2 |
Net premiums earned | $ 235.4 | $ 236.0 | $ 243.7 |
Insurance in force (billions) | $ 302.7 | $ 303.1 | $ 293.8 |
Annual persistency | 84.0 % | 84.8 % | 84.7 % |
Losses incurred, net | $ 33.2 | $ 31.2 | $ 9.6 |
Primary delinquency inventory | 27,006 | 27,072 | 25,438 |
Primary IIF delinquency rate (count based) | 2.44 % | 2.43 % | 2.30 % |
Loss ratio | 14.1 % | 13.2 % | 3.9 % |
Underwriting expense ratio | 20.5 % | 19.9 % | 22.5 % |
In force portfolio yield (bps) | 38.0 | 38.0 | 38.4 |
Net premium yield (bps) | 31.1 | 31.2 | 33.0 |
Annualized return on equity | 13.0 % | 13.1 % | 14.3 % |
Book value per common share outstanding | $ 23.63 | $ 23.47 | $ 21.40 |
Adjust for AOCI | $ 0.79 | $ 0.61 | $ 0.98 |
Tangible book value per share | $ 24.41 | $ 24.08 | $ 22.38 |
CAPITAL AND LIQUIDITY | As of | ||
($ in billions, except where otherwise noted) | March 31, 2026 | December 31, 2025 | March 31, 2025 |
PMIERs available assets | $ 5.8 | $ 5.7 | $ 5.9 |
PMIERs excess | $ 2.9 | $ 2.5 | $ 2.6 |
Holding company liquidity (millions) | $ 709 | $ 1,074 | $ 824 |
FIRST QUARTER 2026 HIGHLIGHTS
- Through an insurance linked note transaction, we executed a
$324 million - We repurchased 7.2 million shares of common stock for
$192.6 million - We paid a dividend of
$0.15
SECOND QUARTER 2026 HIGHLIGHTS
- Through April 24, 2026 we repurchased an additional 1.7 million shares of our common stock for
$47.4 million - We declared a dividend of
$0.15 - MGIC paid a
$400 million - Our board of directors approved a share repurchase program, authorizing us to purchase an additional
$750 million
Conference Call and Webcast Details
MGIC Investment Corporation will hold a conference call April 30, 2026, at 10:00 a.m. ET to allow securities analysts and shareholders the opportunity to hear management discuss the company's quarterly results. Individuals interested in joining by telephone should register for the call at https://register-conf.media-server.com/register/BIeb1b95ef583c49419a8d6b744e509dce to receive the dial-in number and unique PIN to access the call. It is recommended that you join the call at least 10 minutes before the conference call begins. The call is also being webcast and can be accessed at the company's website at http://mtg.mgic.com/ under "Newsroom." A replay of the webcast will be available on the company's website through May 30, 2026.
About MGIC
Mortgage Guaranty Insurance Corporation (MGIC) (www.mgic.com), the principal subsidiary of MGIC Investment Corporation, provides mortgage insurance solutions that support responsible credit risk management for mortgage lenders and investors and enable borrowers to qualify for mortgages with lower down payments. As the founder and longstanding leader of today's private mortgage insurance industry, MGIC continues to guide the industry's evolution while serving as a trusted partner to lenders across the country.
This press release, which includes certain additional statistical and other information, including non-GAAP financial information and a supplement that contains various portfolio statistics, are all available on the Company's website at https://mtg.mgic.com/ under "Newsroom."
From time to time MGIC Investment Corporation releases important information via postings on its corporate website, and via postings on MGIC's website for information related to underwriting and pricing, and intends to continue to do so in the future. Such postings include corrections of previous disclosures and may be made without any other disclosure. Investors and other interested parties are encouraged to enroll to receive automatic email alerts and Really Simple Syndication (RSS) feeds regarding new postings. Enrollment information for MGIC Investment Corporation alerts can be found at https://mtg.mgic.com/shareholder-services/email-alerts. For information about our underwriting and rates, see https://www.mgic.com/underwriting.
Use of Non-GAAP financial measures
We believe that use of the Non-GAAP financial measures of adjusted pre-tax operating income (loss), adjusted net operating income (loss) and adjusted net operating income (loss) per diluted share facilitate the evaluation of the company's core financial performance thereby providing relevant information to investors. These measures are not recognized in accordance with accounting principles generally accepted in
Adjusted pre-tax operating income (loss) is defined as GAAP income (loss) before tax, excluding the effects of net realized investment gains (losses), gain and losses on debt extinguishment and infrequent or unusual non-operating items where applicable.
Adjusted net operating income (loss) is defined as GAAP net income (loss) excluding the after-tax effects of net realized investment gains (losses), gain and losses on debt extinguishment and infrequent or unusual non-operating items where applicable. The amounts of adjustments to components of pre-tax operating income (loss) are tax effected using a federal statutory tax rate of
Adjusted net operating income (loss) per diluted share is calculated in a manner consistent with the accounting standard regarding earnings per share by dividing (i) adjusted net operating income (loss) by (ii) diluted weighted average common shares outstanding, which reflects share dilution from unvested restricted stock units.
Although adjusted pre-tax operating income (loss) and adjusted net operating income (loss) exclude certain items that have occurred in the past and are expected to occur in the future, the excluded items represent items that are: (1) not viewed as part of the operating performance of our primary activities; or (2) impacted by both discretionary and other economic or regulatory factors and are not necessarily indicative of operating trends, or both. These adjustments, along with the reasons for their treatment, are described below. Trends in the profitability of our fundamental operating activities can be more clearly identified without the fluctuations of these adjustments. Other companies may calculate these measures differently. Therefore, their measures may not be comparable to those used by us.
(1) | Net realized investment gains (losses). The recognition of net realized investment gains or losses can vary significantly across periods as the timing of individual securities sales is highly discretionary and is influenced by such factors as market opportunities, our tax and capital profile, and overall market cycles. |
(2) | Gains and losses on debt extinguishment. Gains and losses on debt extinguishment result from discretionary activities that are undertaken to enhance our capital position, and/or improve our debt profile. |
(3) | Infrequent or unusual non-operating items. Items that are non-recurring in nature and are not part of our primary operating activities. |
MGIC INVESTMENT CORPORATION AND SUBSIDIARIES | ||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | ||||
Three Months Ended March 31, | ||||
(In thousands, except per share data) | 2026 | 2025 | ||
Net premiums written | $ 234,943 | $ 235,346 | ||
Revenues | ||||
Net premiums earned | $ 235,363 | $ 243,719 | ||
Net investment income | 61,742 | 61,443 | ||
Net gains (losses) on investments and other financial instruments | (169) | 741 | ||
Other revenue | 141 | 331 | ||
Total revenues | 297,077 | 306,234 | ||
Losses and expenses | ||||
Losses incurred, net | 33,242 | 9,591 | ||
Underwriting and other expenses, net | 48,108 | 53,063 | ||
Interest expense | 8,899 | 8,899 | ||
Total losses and expenses | 90,249 | 71,553 | ||
Income before tax | 206,828 | 234,681 | ||
Provision for income taxes | 41,525 | 49,221 | ||
Net income | $ 165,303 | $ 185,460 | ||
Net income per diluted share | $ 0.76 | $ 0.75 | ||
MGIC INVESTMENT CORPORATION AND SUBSIDIARIES | ||||
EARNINGS PER SHARE (UNAUDITED) | ||||
Three Months Ended March 31, | ||||
(In thousands, except per share data) | 2026 | 2025 | ||
Net income - basic and diluted | $ 165,303 | $ 185,460 | ||
Basic weighted average common shares outstanding | 216,135 | 244,147 | ||
Dilutive effect of unvested restricted stock units | 2,051 | 2,343 | ||
Diluted weighted average common shares outstanding | 218,186 | 246,490 | ||
Diluted earnings per share | $ 0.76 | $ 0.75 | ||
NON-GAAP RECONCILIATIONS | |||||||||||||
Reconciliation of Income before tax / Net income to Adjusted pre-tax operating income / Adjusted net operating income | |||||||||||||
Three Months Ended March 31, | |||||||||||||
2026 | 2025 | ||||||||||||
(In thousands, except per share amounts) | Pre-tax | Tax Effect | Net (after-tax) | Pre-tax | Tax Effect | Net (after-tax) | |||||||
Income before tax / Net income | $ 41,525 | $ 165,303 | $ 49,221 | $ 185,460 | |||||||||
Adjustments: | |||||||||||||
Net realized investment (gains) losses | (200) | (42) | (158) | (319) | (67) | (252) | |||||||
Adjusted pre-tax operating income / Adjusted net operating income | $ 41,483 | $ 165,145 | $ 49,154 | $ 185,208 | |||||||||
Reconciliation of Net income per diluted share to Adjusted net operating income per diluted share | |||||||||||||
Weighted average shares - diluted | 218,186 | 246,490 | |||||||||||
Net income per diluted share | $ 0.76 | $ 0.75 | |||||||||||
Net realized investment (gains) losses | 0.00 | 0.00 | |||||||||||
Adjusted net operating income per diluted share | $ 0.76 | $ 0.75 | |||||||||||
MGIC INVESTMENT CORPORATION AND SUBSIDIARIES | ||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) | ||||||
March 31, | December 31, | March 31, | ||||
(In thousands, except per share data) | 2026 | 2025 | 2025 | |||
ASSETS | ||||||
Investments (1) | $ 5,719,421 | $ 5,807,662 | $ 5,901,057 | |||
Cash and cash equivalents | 235,090 | 368,989 | 206,988 | |||
Restricted cash and cash equivalents | 14,405 | 6,525 | 5,705 | |||
Reinsurance recoverable on loss reserves (2) | 73,184 | 65,055 | 51,864 | |||
Home office and equipment, net | 31,947 | 32,454 | 34,468 | |||
Deferred insurance policy acquisition costs | 7,955 | 8,377 | 11,114 | |||
Deferred income taxes, net | 15,494 | 18,512 | 46,196 | |||
Other assets | 319,253 | 331,912 | 277,744 | |||
Total assets | $ 6,416,749 | $ 6,639,486 | $ 6,535,136 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
Liabilities: | ||||||
Loss reserves (2) | $ 499,120 | $ 474,884 | $ 465,033 | |||
Unearned premiums | 92,606 | 93,026 | 111,987 | |||
Senior notes | 646,506 | 646,138 | 645,035 | |||
Other liabilities | 141,230 | 277,887 | 173,197 | |||
Total liabilities | 1,379,462 | 1,491,935 | 1,395,252 | |||
Shareholders' equity | 5,037,287 | 5,147,551 | 5,139,884 | |||
Total liabilities and shareholders' equity | $ 6,416,749 | $ 6,639,486 | $ 6,535,136 | |||
Book value per share (3) | $ 23.63 | $ 23.47 | $ 21.40 | |||
(1) Investments include net unrealized gains (losses) on securities | $ (194,840) | $ (152,767) | $ (261,022) | |||
(2) Loss reserves, net of reinsurance recoverable on loss reserves | $ 425,936 | $ 409,829 | $ 413,169 | |||
(3) Shares outstanding | 213,200 | 219,367 | 240,194 | |||
MGIC INVESTMENT CORPORATION AND SUBSIDIARIES | ||||||||||
ADDITIONAL INFORMATION - NEW INSURANCE WRITTEN | ||||||||||
2026 | 2025 | |||||||||
Q1 | Q4 | Q3 | Q2 | Q1 | ||||||
New primary insurance written (NIW) (billions) | $ 14.4 | $ 17.1 | $ 16.5 | $ 16.4 | $ 10.2 | |||||
Monthly (including split premium plans) and annual premium plans | 13.9 | 16.6 | 16.1 | 16.0 | 9.9 | |||||
Single premium plans | 0.5 | 0.5 | 0.4 | 0.4 | 0.3 | |||||
Product mix as a % of primary NIW | ||||||||||
Credit score < 680 | 5 % | 5 % | 4 % | 4 % | 4 % | |||||
> | 14 % | 15 % | 17 % | 13 % | 13 % | |||||
> | 25 % | 26 % | 27 % | 26 % | 31 % | |||||
Singles | 4 % | 3 % | 2 % | 2 % | 2 % | |||||
Refinances | 21 % | 17 % | 6 % | 6 % | 6 % | |||||
New primary risk written (billions) | $ 3.8 | $ 4.4 | $ 4.4 | $ 4.3 | $ 2.6 | |||||
MGIC INVESTMENT CORPORATION AND SUBSIDIARIES | |||||||||
ADDITIONAL INFORMATION - INSURANCE IN FORCE and RISK IN FORCE | |||||||||
2026 | 2025 | ||||||||
Q1 | Q4 | Q3 | Q2 | Q1 | |||||
Primary Insurance In Force (IIF) (billions) | $ 302.7 | $ 303.1 | $ 300.8 | $ 297.0 | $ 293.8 | ||||
Total # of loans | 1,106,958 | 1,112,727 | 1,111,855 | 1,107,526 | 1,105,863 | ||||
Premium Yield | |||||||||
In force portfolio yield (1) | 38.0 | 38.0 | 38.3 | 38.3 | 38.4 | ||||
Premium refunds (2) | (0.3) | (0.4) | (0.3) | (0.1) | 0.0 | ||||
Accelerated earnings on single premium | 0.2 | 0.3 | 0.2 | 0.2 | 0.2 | ||||
Total direct premium yield | 37.9 | 37.9 | 38.2 | 38.4 | 38.6 | ||||
Ceded premiums earned, net of profit commission and assumed premiums (3) | (6.8) | (6.7) | (5.9) | (5.4) | (5.6) | ||||
Net premium yield | 31.1 | 31.2 | 32.3 | 33.0 | 33.0 | ||||
Average Loan Size of IIF (thousands) | $ 273.4 | $ 272.4 | $ 270.6 | $ 268.2 | $ 265.7 | ||||
Annual Persistency | 84.0 % | 84.8 % | 85.0 % | 84.7 % | 84.7 % | ||||
Primary Risk In Force (RIF) (billions) | $ 81.2 | $ 81.2 | $ 80.6 | $ 79.5 | $ 78.5 | ||||
By credit score (%) (4) | |||||||||
760 & > | 45 % | 45 % | 45 % | 44 % | 44 % | ||||
740-759 | 18 % | 18 % | 18 % | 18 % | 18 % | ||||
720-739 | 14 % | 14 % | 14 % | 14 % | 14 % | ||||
700-719 | 10 % | 10 % | 10 % | 10 % | 10 % | ||||
680-699 | 7 % | 7 % | 7 % | 7 % | 7 % | ||||
660-679 | 3 % | 3 % | 3 % | 3 % | 3 % | ||||
640-659 | 2 % | 2 % | 2 % | 2 % | 2 % | ||||
639 & < | 1 % | 1 % | 1 % | 2 % | 2 % | ||||
Average Coverage Ratio (RIF/IIF) | 26.8 % | 26.8 % | 26.8 % | 26.8 % | 26.7 % | ||||
(1) | Total direct premiums earned, excluding premium refunds and accelerated premiums from single premium policy cancellations divided by average primary insurance in force. |
(2) | Premium refunds and our estimate of refundable premium on our delinquency inventory divided by average primary insurance in force. |
(3) | Ceded premiums earned, net of profit commissions and assumed premiums. Assumed premiums include our participation in GSE Credit Risk Transfer programs, of which the impact on the net premium yield was 0.5 bps in the first quarter of 2026. |
(4) | The credit score at the time of origination for a loan with multiple borrowers is the lowest of the borrowers' "decision credit scores." A borrower's "decision credit score" is determined as follows: if there are three credit scores available, the middle credit score is used; if two credit scores are available, the lower of the two is used; if only one credit score is available, it is used. |
MGIC INVESTMENT CORPORATION AND SUBSIDIARIES | |||||||||||
ADDITIONAL INFORMATION - DELINQUENCY STATISTICS | |||||||||||
2026 | 2025 | ||||||||||
Q1 | Q4 | Q3 | Q2 | Q1 | |||||||
Primary IIF - Delinquent Roll Forward - # of Loans | |||||||||||
Beginning Delinquent Inventory | 27,072 | 25,747 | 24,444 | 25,438 | 26,791 | ||||||
New Notices | 13,791 | 14,489 | 13,582 | 11,970 | 12,965 | ||||||
Cures | (13,393) | (12,632) | (11,814) | (12,588) | (13,981) | ||||||
Paid claims | (457) | (359) | (359) | (341) | (312) | ||||||
Rescissions and denials | (7) | (13) | (18) | (35) | (25) | ||||||
Other items removed from inventory (1) | — | (160) | (88) | — | — | ||||||
Ending Delinquent Inventory | 27,006 | 27,072 | 25,747 | 24,444 | 25,438 | ||||||
Primary IIF Delinquency Rate (count based) | 2.44 % | 2.43 % | 2.32 % | 2.21 % | 2.30 % | ||||||
Primary claim received inventory included in | 383 | 398 | 333 | 295 | 304 | ||||||
Composition of Cures | |||||||||||
Reported delinquent and cured intraquarter | 3,973 | 3,917 | 3,606 | 3,268 | 4,321 | ||||||
Number of payments delinquent prior to cure | |||||||||||
3 payments or less | 6,262 | 5,734 | 5,141 | 5,708 | 6,379 | ||||||
4-11 payments | 2,702 | 2,466 | 2,500 | 2,887 | 2,759 | ||||||
12 payments or more | 456 | 515 | 567 | 725 | 522 | ||||||
Total Cures in Quarter | 13,393 | 12,632 | 11,814 | 12,588 | 13,981 | ||||||
Composition of Paids | |||||||||||
Number of payments delinquent at time of claim payment | |||||||||||
3 payments or less | 1 | — | 1 | — | 1 | ||||||
4-11 payments | 57 | 32 | 32 | 32 | 28 | ||||||
12 payments or more | 399 | 327 | 326 | 309 | 283 | ||||||
Total Paids in Quarter | 457 | 359 | 359 | 341 | 312 | ||||||
Aging of Primary Delinquent Inventory | |||||||||||
Consecutive months delinquent | |||||||||||
3 months or less | 9,655 | 36 % | 10,389 | 38 % | 9,817 | 38 % | 8,552 | 35 % | 8,497 | 33 % | |
4-11 months | 10,289 | 38 % | 9,559 | 35 % | 8,858 | 34 % | 8,868 | 36 % | 9,907 | 39 % | |
12 months or more | 7,062 | 26 % | 7,124 | 27 % | 7,072 | 28 % | 7,024 | 29 % | 7,034 | 28 % | |
Number of payments delinquent | |||||||||||
3 payments or less | 13,376 | 49 % | 14,121 | 52 % | 13,406 | 52 % | 12,260 | 50 % | 12,319 | 48 % | |
4-11 payments | 9,364 | 35 % | 8,747 | 32 % | 8,122 | 32 % | 7,963 | 33 % | 8,788 | 35 % | |
12 payments or more | 4,266 | 16 % | 4,204 | 16 % | 4,219 | 16 % | 4,221 | 17 % | 4,331 | 17 % | |
(1) | Items removed from inventory are associated with commutations of coverage on non-performing policies. |
MGIC INVESTMENT CORPORATION AND SUBSIDIARIES | ||||||||||
ADDITIONAL INFORMATION - RESERVES and CLAIMS PAID | ||||||||||
2026 | 2025 | |||||||||
Q1 | Q4 | Q3 | Q2 | Q1 | ||||||
Reserves (millions) | ||||||||||
Primary Direct Loss Reserves | $ 497 | $ 472 | $ 450 | $ 450 | $ 462 | |||||
Other Gross Loss Reserves | 2 | 3 | 2 | 2 | 3 | |||||
Total Gross Loss Reserves | $ 499 | $ 475 | $ 452 | $ 452 | $ 465 | |||||
Primary Average Direct Reserve Per Delinquency | $ 18,398 | $ 17,449 | $ 17,462 | $ 18,395 | $ 18,167 | |||||
Net Paid Claims (millions) (1) | $ 17 | $ 16 | $ 14 | $ 12 | $ 12 | |||||
Total primary (excluding settlements) | 20 | 16 | 14 | 13 | 12 | |||||
Rescission and NPL settlements | — | 3 | 1 | — | — | |||||
Reinsurance | (4) | (3) | (2) | (2) | (2) | |||||
LAE and other | 1 | 1 | 1 | 1 | 2 | |||||
Reinsurance Terminations (1) | — | (1) | — | — | — | |||||
Primary Average Claim Payment (thousands) (2) | $ 42.7 | $ 46.1 | $ 39.7 | $ 36.5 | $ 38.8 | |||||
(1) | Net paid claims, as presented, does not include amounts received in conjunction with terminations or commutations of reinsurance agreements. |
(2) | Excludes amounts paid in settlement disputes for claims paying practices and/or commutations of policies. |
MGIC INVESTMENT CORPORATION AND SUBSIDIARIES | ||||||||||
ADDITIONAL INFORMATION - REINSURANCE AND MI RATIOS | ||||||||||
2026 | 2025 | |||||||||
Q1 | Q4 | Q3 | Q2 | Q1 | ||||||
Quota Share Reinsurance | ||||||||||
% NIW subject to reinsurance | 86.4 % | 86.2 % | 88.2 % | 87.7 % | 86.8 % | |||||
Ceded premiums written and earned (millions) | $ 37.8 | $ 38.9 | $ 32.0 | $ 28.1 | $ 29.9 | |||||
Ceded losses incurred (millions) | $ 12.0 | $ 11.9 | $ 6.1 | $ 4.0 | $ 6.4 | |||||
Ceding commissions (millions) (included in underwriting and other expenses) | $ 13.4 | $ 13.4 | $ 12.9 | $ 12.1 | $ 11.7 | |||||
Profit commission (millions) (included in ceded premiums) | $ 29.1 | $ 28.3 | $ 32.6 | $ 32.3 | $ 28.7 | |||||
Excess-of-Loss Reinsurance | ||||||||||
Ceded premiums earned (millions) | $ 17.8 | $ 14.8 | $ 16.2 | $ 15.4 | $ 14.7 | |||||
GAAP loss ratio | 14.1 % | 13.2 % | 4.5 % | (1.2 %) | 3.9 % | |||||
GAAP underwriting expense ratio | 20.5 % | 19.9 % | 21.1 % | 21.9 % | 22.5 % | |||||
Mortgage Guaranty Insurance Corporation - Risk to Capital | 9.6:1 | 10.0:1 | 9.7:1 | 10.0:1 | 9.8:1 | |||||
Combined Insurance Companies - Risk to Capital | 9.6:1 | 10.0:1 | 9.7:1 | 10.0:1 | 9.7:1 | |||||
Safe Harbor Statement
Forward Looking Statements and Risk Factors:
This release contains forward looking statements within the meaning of the
- Our results are dependent on
U.S. economic and housing market conditions; adverse conditions may cause a decrease in new insurance written and/or an increase in delinquencies, claim frequency, and claim severity. Additionally, if the volume of low down payment home mortgage originations declines, the amount of new insurance that we write could decline. - The substantial majority of MGIC's new insurance written is for loans purchased by Fannie Mae and Freddie Mac ("the GSEs"); therefore, changes to their business practices or legislative, regulatory or administrative reforms could materially affect our business and financial results.
- Failure to comply with the GSEs' Private Mortgage Insurance Eligibility Requirements ("PMIERs") could limit our operations, or at the extreme, lead to suspension or termination of eligibility to insure loans purchased by the GSEs.
- Loss reserve estimates are subject to uncertainties; actual losses may differ materially from estimates. Additionally, because reserves are established only upon delinquency, losses may disproportionately impact earnings in certain periods.
- We operate in a highly regulated environment at both the federal and state levels; regulatory changes or enforcement actions may adversely affect our operations and/or financial results.
- If we fail to meet the State Capital Requirements of
Wisconsin , we could be prevented from writing new business in all jurisdictions; we could be prevented from writing new business in a particular jurisdiction if we fail to meet the state capital requirements of that jurisdiction. - Pandemics, severe weather events, and climate related developments may negatively affect home prices and affordability, potentially leading to an increase in delinquencies, claim frequency, and claim severity. Actions by government authorities, including FHFA and the GSEs, to address climate related issues could similarly affect our results.
- The availability, cost, and capital credit for reinsurance may change due to market conditions or GSE actions, potentially requiring us to retain more risk and maintain additional capital.
- Our financial results may be impacted if lenders and investors seek alternatives to private mortgage insurance. In addition, changes in GSE programs, growth in government market share, or changes to regulatory capital rules to limit capital relief for mortgage insurance could affect our business in similar ways.
- The premium rates we charge may prove inadequate due to unknown future economic conditions, modelling limitations or errors, or other unexpected events.
- The length of time our insurance policies remain in force ("persistency") affects our results. Among other things, persistency can be influenced by interest rates, borrower equity, refinancing activity, and mortgage insurance cancellation requirements.
- Instability in financial markets or counterparty failures, including by reinsurers or mortgage servicers, could increase our credit risk and losses.
- Ineffective risk management programs, inaccurate data or model errors could impair our ability to identify and respond to risks, and materially adversely affect our business, results of operations, and financial condition.
- Technology system failures, cybersecurity breaches, or data privacy incidents could materially disrupt operations and cause financial and reputational damage.
- Changes in our underwriting practices and mix of business have the potential to increase risk and negatively affect our financial results.
- Our business depends on hiring and retaining experienced management and key personnel; the failure to do so could disrupt operations and negatively impact our financial condition.
- The mortgage insurance market is highly competitive. Competition from private mortgage insurers, government programs, and potential new market entrants —combined with pricing pressure and shifting customer preferences and relationships—could lead to a reduction in our new insurance written.
- Adverse rating agency actions could affect our competitiveness, GSE eligibility, and access to capital.
- Litigation and regulatory proceedings could result in fines, settlements, operational restrictions, or reputational harm.
- Our investment portfolio is exposed to risks that could adversely impact our operations and financial results. Future capital needs could require issuance of debt or equity, potentially diluting shareholders.
- Our stock price may fluctuate due to economic, industry, regulatory, or company specific developments.
- Regulatory limits on dividends from our insurance subsidiaries have the potential to constrain holding company liquidity and our ability to pay shareholder dividends or repurchase stock in the future.
We are not undertaking any obligation to update any forward-looking statements or other statements we may make even though these statements may be affected by events or circumstances occurring after the forward looking statements or other statements were made. No investor should rely on the fact that such statements are current at any time other than the time at which this press release was delivered for dissemination to the public.
While we communicate with security analysts from time to time, it is against our policy to disclose to them any material non-public information or other confidential information. Accordingly, investors should not assume that we agree with any statement or report issued by any analyst irrespective of the content of the statement or report, and such reports are not our responsibility.
View original content:https://www.prnewswire.com/news-releases/mgic-investment-corporation-reports-first-quarter-2026-results-302757736.html
SOURCE MGIC Investment Corporation