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Core Insights - MGIC Investment Corporation (MTG) reported fourth-quarter 2025 operating net income per share of 75 cents, exceeding the Zacks Consensus Estimate by 2.7% and improving 4.2% year over year [1][10] - Total operating revenues decreased 0.9% year over year to $298.7 million, missing the Zacks Consensus Estimate by 2.9% [1][10] Operational Update - Insurance in force rose 2.6% year over year to $303.1 billion, surpassing the Zacks Consensus Estimate of $295.5 billion [5][10] - Primary delinquency increased 1.1% to 27,072 loans during the quarter [5] - Net premiums written fell 0.7% year over year to $230.5 million, below the estimate of $234.3 million [6] - Net investment income grew 0.5% year over year to $61.6 million, but was below both the estimate of $62.1 million and the Zacks Consensus Estimate of $62.4 million [6] - Persistency remained stable at 84.8% as of Dec. 31, 2025 [7] - New insurance written increased 7.5% year over year to $17.1 billion [7] - Underwriting and other expenses decreased 6.7% year over year to $45.8 million, but the loss ratio increased significantly to 13.2% from 3.6% in the prior-year quarter [7][10] - Total losses and expenses surged 28.8% year over year to $85.9 million due to a sharp rise in losses incurred [8][10] Financial Update - Book value per share increased 12.7% year over year to $23.47 as of Dec. 31, 2025 [11] - Shareholder equity was $5.1 billion as of Dec. 31, 2025, down 0.5% from the end of 2024 [11] - PMIERs Available Assets totaled $5.7 billion, exceeding the Minimum Required Assets by $2.5 billion [12] - Total assets rose 1.4% from the end of 2024 to $6.6 billion [12] - Senior notes increased by 0.2% to $646.1 million as of Dec. 31, 2025 [12] Capital Deployment - The company repurchased 6.8 million shares for $189.1 million and paid a dividend of $400 million to the holding company [13] - A dividend of 15 cents per common share was declared for shareholders [13] - In January 2026, the company executed a $324 million excess of loss reinsurance agreement covering certain policies written between Jan. 1, 2022, and March 31, 2025 [14] Full-Year Highlights - For the full year 2025, operating net income per share was $3.14, beating the Zacks Consensus Estimate by 11.7% and increasing 8.6% year over year [15] - Total operating revenues for the year were $1.2 billion, up 0.5% year over year, but missed the Zacks Consensus Estimate by 1.5% [15] - Net investment income rose 0.7% year over year to $246.26 million, but was below the estimate of $246.8 million [15]

Core Insights - The company reported solid financial results for Q4 2025, with a net income of $169 million and an annualized return on equity of 13% [1] - For the full year, net income reached $738 million, with a return on equity of 14.3% and a book value per share increase of 13% year-over-year to $23.47 [5] - The company surpassed $300 billion in insurance in force, ending the year with over $303 billion, a 3% increase from the previous year [5] Financial Performance - The company earned net income of $0.75 per diluted share in Q4, compared to $0.72 in the same quarter last year [11] - For the full year, net income per diluted share was $3.14, up from $2.89 the previous year [12] - Investment income for Q4 totaled $62 million, with a book yield on the investment portfolio at 4% [14] Insurance Metrics - Annual persistency remained stable at 85% by the end of Q4 2025 [6] - The company wrote $17 billion in new insurance in Q4 and $60 billion for the full year, an 8% increase from the prior year [6] - The average credit score at origination for the insurance portfolio was 748, with low early payment defaults indicating solid credit quality [7] Capital Management - The company returned $915 million to shareholders through dividends and share repurchases, reducing shares outstanding by 12% [17] - A quarterly common stock dividend of $0.15 per share was approved, marking five consecutive years of dividend growth [17] - The reinsurance program reduced PMIERs requirements by $2.8 billion, or approximately 47% [11] Market Outlook - The consensus mortgage origination forecast suggests the MI market size in 2026 will be similar to 2025, with elevated mortgage rates [6] - The company anticipates that if mortgage rates decrease more than expected, it could lead to increased refinance volume, although this may offset growth in insurance in force due to lower persistency [7] - Housing affordability remains a challenge, and the company supports policy changes to improve it [20]

Financial Data and Key Metrics Changes - The company reported a net income of $169 million for the fourth quarter, resulting in an annualized return on equity of 13% [5] - For the full year, net income reached $738 million, with a return on equity of 14.3% [6] - Book value per share increased to $23.47, reflecting a 13% year-over-year growth [6] - Insurance in force grew to over $303 billion, a 3% increase from the previous year [7] - The in-force premium yield remained stable at 38 basis points [14] Business Line Data and Key Metrics Changes - The company wrote $17 billion in new business during the fourth quarter and $60 billion for the full year, marking an 8% increase from the prior year [8] - The average credit score at origination for the insurance portfolio was 748, indicating solid credit quality [8] Market Data and Key Metrics Changes - The consensus mortgage origination forecasts suggest that the size of the mortgage insurance market in 2026 will be similar to that of 2025, with elevated mortgage rates expected to persist [8] - Annual persistency remained stable at 85% throughout 2025, aligning with initial expectations [7] Company Strategy and Development Direction - The company aims to maintain a strong, well-diversified insurance portfolio while focusing on disciplined risk management and capital management strategies [9][10] - The reinsurance program was strengthened with a $250 million excess of loss transaction and a 40% quota share transaction covering most of the 2027 new insurance written [10] - The company emphasizes the importance of private mortgage insurance in enhancing housing affordability and plans to engage with industry stakeholders to support responsible policy changes [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position and ability to execute business strategies in 2026 and beyond, despite challenges in housing affordability [20] - The company noted that while there is potential for increased refinance volume if mortgage rates decrease, this could lead to lower persistency [8][59] Other Important Information - The company returned $915 million to shareholders through dividends and share repurchases, reducing shares outstanding by 12% [17] - The quarterly common stock dividend was increased by 15% in the third quarter, marking five consecutive years of dividend growth [17] Q&A Session Summary Question: Any price competition or changes in the industry? - Management noted that premiums remained stable and they were able to find value without major adjustments in premiums [25][26] Question: Any updates on potential reduction in FHA premiums? - Management indicated that while affordability discussions are ongoing, there is no imminent indication of a reduction in FHA premiums [27][28] Question: Insights on credit trends by region or state? - Management reported no significant geographic movement in new delinquencies, with no areas of concern identified [30][32] Question: Comparison of reserve releases to previous quarters? - Management explained that reserve releases are based on the comparison of initial estimates to current best estimates, with recent quarters reflecting different notice ages [33][36] Question: Composition of new delinquencies and their vintages? - Management stated that there has been no significant divergence in cure activity based on vintage, with recent vintages performing better than pre-COVID levels [40][42] Question: Any levers to improve returns on capital? - Management highlighted the importance of a robust reinsurance program to enhance returns on equity, especially in a challenging market environment [46][47] Question: Impact of refinance activity on premium rates? - Management noted that while premium rates have been stable, the impact of refinancing could lead to lower premiums for new loans [49][50] Question: Expectations for default rates in 2026 and 2027? - Management suggested that while there may be modestly higher delinquency rates in newer vintages, the overall market conditions are expected to stabilize [60][62]

Financial Data and Key Metrics Changes - The company reported a net income of $169 million for the fourth quarter, resulting in an annualized return on equity of 13% [5] - For the full year, net income reached $738 million, with a return on equity of 14.3% [6] - Book value per share increased to $23.47, reflecting a 13% year-over-year growth [6] - Insurance in force grew to over $303 billion, marking a 3% increase from the previous year [7] - The in-force premium yield remained stable at 38 basis points for the quarter [14] Business Line Data and Key Metrics Changes - The company wrote $17 billion in new business during the fourth quarter and $60 billion for the full year, an 8% increase from the prior year [8] - The average credit score at origination for the insurance portfolio was 748, indicating solid credit quality [8] Market Data and Key Metrics Changes - The consensus mortgage origination forecasts suggest that the size of the mortgage insurance market in 2026 will be similar to that of 2025, with elevated mortgage rates expected [8] - Annual persistency remained stable at 85% throughout 2025, aligning with expectations [7] Company Strategy and Development Direction - The company aims to maintain a strong, well-diversified insurance portfolio while focusing on disciplined risk management and capital management strategies [9][10] - The reinsurance program was strengthened with a $250 million excess of loss transaction and a 40% quota share transaction covering most of the 2027 new insurance written [10] - The company is committed to enhancing housing affordability and actively participates in industry discussions to support responsible policy changes [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position and ability to execute business strategies in 2026 and beyond, despite challenges in housing affordability [20] - The company noted that while there is potential for increased refinance volume if mortgage rates decrease, this could lead to lower persistency [8][58] Other Important Information - The company paid a quarterly common stock dividend of $33 million and repurchased 6.8 million shares for $189 million in the fourth quarter [17] - For the full year, the company returned $915 million to shareholders, representing a 124% payout ratio of the year's net income [17] Q&A Session Summary Question: Price competition in the industry - Management noted that premiums remained stable and they were able to find value without major adjustments in premiums [25][26] Question: Potential reduction in FHA premiums - Management indicated that while affordability discussions are ongoing, there is no imminent indication of a reduction in FHA premiums [27] Question: Credit trends by region - Management reported no significant geographic movement in new delinquencies, with no areas of concern identified [30][32] Question: Reserve release comparison - Management explained that reserve releases are based on the comparison of initial estimates to current best estimates, with recent quarters showing different drivers for reserve development [33][36] Question: Composition of new delinquencies - Management stated that there has been no significant divergence in cure activity based on vintage, with recent vintages performing better than pre-COVID levels [40][42] Question: Improving returns on capital - Management emphasized the importance of a robust reinsurance program to enhance returns on equity, especially in a challenging market environment [46][47] Question: In-force premium yield decline - Management clarified that the slight decline in in-force premium yield was within the margin of flat and attributed it to increased business written due to refinance activity [54][55] Question: Default rate expectations - Management suggested that while there may be modestly higher delinquency rates in newer vintages, the overall impact on default rates is expected to be limited [60][62]

MGIC Investment (NYSE:MTG) Q4 2025 Earnings call February 03, 2026 10:00 AM ET Speaker6Good day, ladies and gentlemen, and thank you for standing by. Welcome to the MGIC Investment Corporation fourth quarter 2025 earnings call. At this time, all lines have been placed on mute to prevent any background noise. At the end of today's presentation, we'll have a question and answer session. If anyone should require to ask a question at this time, please press star one one on your telephone keypad. At this time, I ...

Quarterly Supplement Q4 2025 NYSE: MTG Forward-Looking Statements As used below, "we," "our" and "us" refer to MGIC Investment Corporation's consolidated operations or to MGIC Investment Corporation, as the context requires, and "MGIC" refers to Mortgage Guaranty Insurance Corporation. This presentation may contain forward looking statements. Our actual results could be affected by the risks affecting the company which can be found in the risk factors included in our 8-K filing for the quarter ended Decembe ...

Core Viewpoint - MGIC Investment reported a slight decline in revenue for the quarter ended December 2025, with a year-over-year decrease of 1.8% despite a positive EPS surprise [1] Financial Performance - Revenue for the quarter was $297.8 million, which was below the Zacks Consensus Estimate of $306.65 million, resulting in a surprise of -2.89% [1] - The EPS for the quarter was $0.75, compared to $0.72 a year ago, indicating a year-over-year increase [1] - The company delivered an EPS surprise of +3.21%, with the consensus EPS estimate being $0.73 [1] Key Metrics - Net investment income was reported at $61.61 million, slightly below the average estimate of $62.37 million, reflecting a year-over-year change of +0.5% [4] - Net premiums earned were $236.02 million, which was lower than the estimated $243.82 million, showing a year-over-year decline of -2.2% [4] - Other revenue was reported at $0.16 million, significantly below the estimated $0.46 million, representing a year-over-year decrease of -65% [4] Stock Performance - MGIC shares have returned -7.7% over the past month, contrasting with the Zacks S&P 500 composite's increase of +0.7% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Shares of MGIC Investment Corporation ( MTG ) have been a solid performer over the past year, gaining about 8%, though shares have dropped about 10% from their highs recently. The Trump Administration has increasingly been focused on improving homeowner affordability, from potentially using 401(K)s forOver fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a s ...

Group 1 - MGIC Investment Corporation (MTG) shares have performed well over the past year, gaining approximately 8%, although they have recently dropped about 10% from their highs [1] - The Trump Administration is focusing on improving homeowner affordability, which may include potential measures such as allowing the use of 401(K)s for home purchases [1]