Core Insights - MGIC Investment Corporation reported a net income of $191.1 million or $0.83 per diluted share for the third quarter of 2025, reflecting a slight decrease from $192.5 million in the previous quarter [1][2] - The adjusted net operating income for the same period was $190.8 million, also at $0.83 per diluted share, indicating a stable performance compared to $194.0 million in Q2 2025 [1][2] - The company emphasized the strength of its business model and effective risk management strategies, aiming for sustainable long-term value for shareholders [2] Financial Metrics - Net income for Q3 2025 was $191.1 million, down from $192.5 million in Q2 2025 [2] - Adjusted net operating income was $190.8 million, compared to $194.0 million in Q2 2025 [2] - New insurance written (NIW) increased to $16.5 billion from $16.4 billion in the previous quarter [2] - Net premiums earned were $241.8 million, a decrease from $244.3 million in Q2 2025 [2] - The annual persistency rate improved to 85.0% from 84.7% in Q2 2025 [2] Loss and Delinquency Statistics - Losses incurred, net, were reported at $10.9 million, a significant increase from a net gain of $2.8 million in Q2 2025 [2] - The primary delinquency inventory rose to 25,747 from 24,444 in the previous quarter, with a delinquency rate of 2.32% compared to 2.21% [2][20] - The loss ratio for the quarter was 4.5%, up from a negative 1.2% in Q2 2025 [2] Capital and Liquidity - As of September 30, 2025, the PMIERs available were $5.9 billion, an increase from $5.7 billion in June 2025 [2] - The company repurchased 7.0 million shares for $187.9 million and declared a dividend of $0.15 per common share [14] - The tangible book value per share increased to $23.58 from $22.99 in the previous quarter [2] Insurance Portfolio - The total primary insurance in force reached $300.8 billion, up from $297.0 billion in Q2 2025 [2][18] - The average loan size of insurance in force was $270.6 thousand, compared to $268.2 thousand in the previous quarter [18] - The company reported a total of 1,111,855 loans in force, an increase from 1,107,526 in Q2 2025 [18]

Financial Performance - Third Quarter 2025 net income was $191.1 million, or $0.83 per diluted share, compared to $192.5 million and $0.81 per diluted share in Q2 2025[2][3] - Adjusted net operating income for Q3 2025 was $190.8 million, or $0.83 per diluted share, down from $194.0 million and $0.82 per diluted share in Q2 2025[3] - Net premiums earned in Q3 2025 totaled $241.8 million, compared to $244.3 million in Q2 2025[3] - For the three months ended September 30, 2025, the adjusted pre-tax operating income was $234,670,000, compared to $255,214,000 for the same period in 2024, reflecting a decrease of approximately 8.1%[21] - The net income per diluted share for Q3 2025 was $0.83, an increase from $0.77 in Q3 2024, representing a growth of 7.8%[22] - For the nine months ended September 30, 2025, the adjusted pre-tax operating income was $717,065,000, compared to $741,169,000 for the same period in 2024, indicating a decrease of about 3.2%[23] - The total assets as of September 30, 2025, were $6,625,643,000, an increase from $6,547,235,000 as of December 31, 2024, showing a growth of approximately 1.2%[26] - The book value per share increased to $22.87 as of September 30, 2025, from $20.82 as of December 31, 2024, indicating a growth of about 9.8%[26] Insurance Metrics - New insurance written (NIW) for Q3 2025 was $16.5 billion, slightly up from $16.4 billion in Q2 2025, but down from $17.2 billion in Q3 2024[3] - Insurance in force reached $300.8 billion as of September 30, 2025, an increase from $297.0 billion in Q2 2025[3][8] - The primary insurance in force (IIF) reached $300.8 billion as of Q3 2025, up from $292.8 billion in Q3 2024, marking an increase of about 2.9%[28] - New primary insurance written (NIW) for Q3 2025 was $16.5 billion, slightly up from $16.4 billion in Q2 2025, indicating a growth of approximately 0.6%[27] - The average loan size of insurance in force was $270,600 as of Q3 2025, compared to $261,600 in Q3 2024, reflecting an increase of about 3.4%[28] Shareholder Actions - The company repurchased 7.0 million shares of common stock for $187.9 million during the quarter[6] - A dividend of $0.15 per common share was declared, payable on November 20, 2025[6] - MGIC paid $800 million in dividends to the holding company in the twelve months ended September 30, 2025[130] - As of September 30, 2025, the holding company had approximately $858 million in cash and investments, with long-term debt obligations totaling $650 million[131] - Annual debt service on the long-term debt obligations is approximately $34 million[131] Risk and Compliance - The company has agreed to terms on a traditional excess of loss reinsurance transaction providing $250 million of coverage on NIW from 2021, effective December 1, 2025[6] - The PMIERs require significantly more Minimum Required Assets for delinquent loans compared to performing loans, which could adversely affect MGIC's business if loan delinquencies increase[49] - MGIC's compliance with the PMIERs is critical for eligibility to insure loans delivered to or purchased by the GSEs, with potential adverse effects on revenue if compliance is not maintained[45] - The risk of cybersecurity incidents affecting MGIC may increase, posing a threat to its operations and financial stability[40] - Legal and regulatory proceedings pose risks that could materially affect the company's business and financial condition[122] Market Conditions - The seasonally-adjusted Purchase-Only U.S. Home Price Index increased by 0.4% nationwide in August 2025 compared to July 2025, with a 12-month change in home prices reaching historically high rates but moderating to a 0.3% increase in the first 8 months of 2025[38] - The GSEs' business practices and policies regarding mortgage insurance coverage, costs, and cancellation may change, potentially negatively impacting the mortgage insurance industry and MGIC's financial results[43] - The volatility in financial markets may impact the performance of MGIC's investment portfolio, which could include investments negatively affected by global events[40] Delinquency and Claims - The ending delinquent inventory for Q3 2025 increased to 25,747 loans, up from 24,444 in Q2 2025, reflecting a 5.3% increase[30] - The primary IIF delinquency rate for Q3 2025 was 2.32%, compared to 2.21% in Q2 2025, indicating a rise of 4.97%[30] - The total primary net paid claims for Q3 2025 were $14 million, up from $12 million in Q2 2025, marking a 16.7% increase[31] - The total cures in the quarter were 11,814, a decrease from 12,588 in Q2 2025, reflecting a decline of 6.1%[30] Competitive Landscape - The company faces increased competition in the mortgage insurance industry, with new entrants potentially impacting market share[113] - The FHA's share of low down payment residential mortgages was 33.5% in 2024, which has negatively impacted the company's NIW due to a 30-basis point decrease in its mortgage insurance premium rates announced in February 2023[75] - The VA's share of low down payment residential mortgages was 24.5% in 2024, indicating a competitive landscape for mortgage insurance[76] Investment Portfolio - The investment portfolio is primarily composed of high-quality, investment-grade fixed income investments, but is subject to market volatility and economic conditions[124] - A prolonged period of low investment yields would adversely impact the company’s investment income[128] - The company’s investment income depends on the size of the portfolio and its reinvestment at prevailing interest rates[128] - The company faces liquidity risks from investments guaranteed by the federal government, which may be affected by potential downgrades in sovereign credit ratings[127] Underwriting and Risk Management - The company relies on third-party servicers for mortgage loan information, with approximately 58% of loans serviced by non-bank servicers as of September 30, 2025[81] - The company’s risk management programs and models are critical for identifying and mitigating risks, with potential material impacts if they are ineffective[87] - The company’s ability to rescind insurance coverage has become more limited for new insurance written since mid-2012, potentially leading to higher losses[100] - Approximately 70% of the new insurance written (NIW) in the first three quarters of 2025 was originated under delegated underwriting programs[105]

Core Insights - MGIC becomes the first mortgage insurer to manage its own updates and deliver faster access to solutions through the ICE Mortgage Technology Encompass Partner Connect platform [1][2]. Group 1: Company Developments - MGIC now directly manages new features and updates for its mortgage insurance products within the ICE EPC platform, allowing for quicker enhancements and timely access to solutions for customers [2]. - The new functionality reflects MGIC's commitment to improving customer experience and adapting to the evolving needs of the lending environment [3]. Group 2: Strategic Goals - The company aims to continually evolve its offerings to support future homebuyers with low-down-payment financing solutions [3]. Group 3: Company Overview - MGIC is the principal subsidiary of MGIC Investment Corporation, serving lenders across the United States and facilitating affordable low-down-payment mortgages through private mortgage insurance [4].

Core Insights - MGIC Investment Corporation has elected Martin P. Klein and Daniela A. O'Leary-Gill to its Board of Directors, enhancing its governance and strategic oversight [1][2][3] Group 1: Board Appointments - Martin P. Klein will serve on the Risk Management and Securities Investment Committees, while Daniela A. O'Leary-Gill will be part of the Audit and Business Transformation and Technology Committees [1] - Klein has extensive experience, having served as Executive Vice President and CFO at Athene Holdings and Genworth Financial, and currently holds a position at Apollo Global Management [2] - O'Leary-Gill has over 25 years of leadership experience in finance and strategy, previously serving as COO for BMO U.S. and on the Board of Discover Financial Services [3] Group 2: Company Overview - MGIC Investment Corporation, through its subsidiary MGIC, provides private mortgage insurance to facilitate affordable low-down-payment mortgages, aiding families in achieving homeownership [3]

Core Points - MGIC Investment Corporation declared a quarterly cash dividend of $0.15 per share, payable on November 20, 2025, to shareholders of record as of November 6, 2025 [1] - MGIC, the principal subsidiary of MGIC Investment Corporation, provides private mortgage insurance to lenders across the United States, facilitating affordable low-down-payment mortgages for families [1] Financial Information - The company plans to release its third quarter 2025 financial results after the market closes on a specified date [3] - Moody's Ratings upgraded MGIC Investment Corporation's senior unsecured debt rating to Baa2 from Baa3, indicating improved creditworthiness [4]

Core Insights - MGIC Investment Corporation (MTG) shares closed at $27.75, close to its 52-week high of $29.01, indicating strong investor confidence and potential for further price appreciation [2] - The stock is trading above its 50-day and 200-day simple moving averages, suggesting solid upward momentum [2] Market Performance - MTG has a market capitalization of $6.39 billion, with an average trading volume of 2.18 million shares over the last three months [3] - Year-to-date, MTG shares have gained 17.1%, outperforming the Finance sector and the Zacks S&P 500 composite, which grew by 13.8% and 15.2%, respectively [4] Growth Drivers - MTG is expanding its insurance-in-force portfolio through strong new business and solid annual persistency [6] - The company is enhancing its capital position through capital contributions, reinsurance deals, and maintaining solid cash reserves [6] - Key growth drivers include higher premiums, excellent credit quality, and continued new business momentum [6] Valuation Metrics - MTG shares are trading at a price to forward 12-month earnings ratio of 9.09X, which is higher than the industry average of 8.85X [7] - The return on invested capital (ROIC) has been increasing, currently at 11.2%, significantly better than the industry average of 1.9% [8] Earnings Projections - The Zacks Consensus Estimate for MTG's 2025 earnings per share indicates a year-over-year increase of 3.4%, with revenues projected at $1.23 billion, reflecting a 0.9% improvement [9] - Earnings have grown by 12% over the past five years, surpassing the industry average growth of 9.8% [10] Analyst Sentiment - MTG has consistently surpassed earnings estimates in the last four quarters, with an average surprise of 14.12% [11] - One out of three analysts covering MTG has raised estimates for 2025, leading to a 2.7% increase in the consensus estimate over the past 60 days [12] Strategic Initiatives - New business and solid annual persistency are expected to drive the insurance-in-force portfolio, supported by higher home sales and improved refinance activity [13] - The company is improving its capital position through capital contributions and reinsurance transactions, with a solid cash position [14] - MTG has $742.2 million remaining in its share repurchase authorization through December 2026, reflecting strong mortgage credit performance [16] Conclusion - Higher premiums, outstanding credit quality, and new business are anticipated to drive growth for MGIC Investment [17] - The company’s solid growth projections and attractive valuations, along with optimistic analyst sentiment and favorable ROIC, are expected to benefit MTG in the long term [18]

Market Performance - U.S. equity markets ended positively on September 30, 2025, with all major indexes recovering from earlier losses, marking a strong finish to the month and quarter [1][2] - The Dow Jones Industrial Average reached a new record high of 46,397.89 points, with a monthly gain of 1.9% and a quarterly gain of 5.2%, achieving five consecutive months of gains [3] - The S&P 500 rose 0.4% to close at 6,688.46 points, with a 3.5% gain for September and a 7.8% increase for the third quarter, marking its fifth consecutive winning month [2] - The Nasdaq Composite increased by 0.3% to close at 22,660.01 points, with a strong September performance of 5.6% and an 11.2% surge for the third quarter, extending its winning streak to six months [2] Corporate Developments - Pfizer's shares surged 6.8% after a deal was announced for lower medication prices for Medicaid patients, along with a three-year exemption from certain tariffs [4] - Merck also saw a 6.8% increase following a positive recommendation for its RSV prevention product and a new collaboration with Variational AI [4] - CoreWeave's stock jumped 13.9% after Meta Platforms placed a new order for cloud computing services valued at up to $14.2 billion [6] - Lamb Weston reported stronger-than-expected profits, leading to a 5.6% increase in its stock price [6] Sector Movements - Shares of Paycom and Block declined following a partnership announcement between OpenAI and Stripe, which is expected to create competitive pressures in the payment sector [5] - ExxonMobil announced plans to lay off 2,000 workers as part of a restructuring effort [7] Economic Indicators - The Consumer Confidence Index fell to 94.5 in September, its lowest since April, indicating concerns about the job market [9] - The Federal Reserve cut the federal funds rate by 25 basis points to a range of 4.00%-4.25%, with projections for further cuts by the end of 2025 [10] Upcoming Events - Key economic data releases are scheduled for October, including the ADP Employment Report and the Consumer Price Index [13][11]

Core Points - MGIC Investment Corporation plans to release its third quarter 2025 financial results on October 29, 2025, after market close [1] - A conference call/webcast is scheduled for October 30, 2025, at 10:00 a.m. Eastern Time to discuss the quarterly results [1][2] - The company encourages interested individuals to register for the call and join at least 10 minutes early [2] Company Overview - MGIC, the principal subsidiary of MGIC Investment Corporation, provides private mortgage insurance to lenders across the United States, facilitating affordable low-down-payment mortgages [3] - The company aims to help families achieve homeownership sooner through its services [3] Investor Communication - MGIC Investment Corporation releases important information via its corporate website and encourages investors to enroll for automatic email alerts and RSS feeds regarding new postings [4] - The company intends to continue this practice for future disclosures [4]

Company Overview - MGIC Investment (MTG) is a mortgage insurance company headquartered in Milwaukee, operating in the Finance sector [3] - The stock has experienced a price change of 19.15% since the beginning of the year [3] Dividend Information - MGIC Investment currently pays a dividend of $0.15 per share, resulting in a dividend yield of 2.12%, which is higher than the Insurance - Multi line industry's yield of 1.71% and the S&P 500's yield of 1.51% [3] - The company's annualized dividend of $0.60 has increased by 22.4% from the previous year [4] - Over the past 5 years, MGIC Investment has raised its dividend 4 times, averaging an annual increase of 20.17% [4] - The current payout ratio is 17%, indicating that the company pays out 17% of its trailing 12-month EPS as dividends [4] Earnings Growth Expectations - For the fiscal year, MTG anticipates solid earnings growth, with the Zacks Consensus Estimate for 2025 at $3.01 per share, reflecting a 3.44% increase from the previous year [5] Investment Considerations - MGIC Investment is viewed as a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [6] - The company is positioned well for income investors, especially in the context of rising interest rates, where high-yielding stocks may face challenges [6]

Core Insights - MGIC Investment Corporation (MTG) has reached a 52-week high of $28.67, closing at $27.83, with a year-to-date gain of 17.4%, outperforming its industry and the S&P 500 composite [2] - The company has a market capitalization of $6.41 billion, with an average trading volume of 2.1 million shares over the last three months [3] - MTG is trading above its 50-day and 200-day simple moving averages, indicating strong upward momentum [4] Financial Performance - MTG is expanding its insurance-in-force portfolio through robust new business and high annual persistency [7] - The company has a price-to-book value of 1.25X, significantly lower than the industry average of 2.48X, making it an attractive entry point for investors [8] - The return on invested capital (ROIC) has improved to 11.2%, well above the industry average of 2% [9] - Earnings have grown by 12% over the past five years, surpassing the industry average of 9.8% [11] Growth Projections - The Zacks Consensus Estimate projects a 3.4% year-over-year increase in earnings per share for 2025, with revenues expected to reach $1.23 billion, reflecting a 0.9% increase [10] - Analysts have raised their estimates for 2025 and 2026, with the consensus for 2025 earnings moving up by 4.1% [13] Market Dynamics - New business and solid annual persistency are expected to drive growth, supported by increased home sales and refinancing activity [16] - The company is witnessing a decline in claim filings, which will strengthen its financial profile [16] - MTG is enhancing its capital position through capital contributions and reinsurance transactions, with $742.2 million remaining in its authorization for share repurchases through December 2026 [17] Strategic Outlook - Higher premiums, excellent credit quality, and new business are anticipated to continue driving growth for MGIC Investment [18] - The company engages in share buybacks as part of wealth distribution to shareholders, reflecting its capital strength and financial performance [18] - Optimistic analyst sentiment and favorable ROIC are expected to benefit MGIC Investment in the long term [19]