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MGIC Investment Shares Gain 2.3% as Q2 Earnings Top Estimates
ZACKSยท2025-08-04 17:26

Core Viewpoint - MGIC Investment Corporation (MTG) reported strong second-quarter 2025 results, with operating net income per share of 82 cents, exceeding expectations and showing a year-over-year increase of 6.5% [1][7]. Financial Performance - Total operating revenues for MGIC Investment were $306 million, remaining flat year over year, and slightly missing the consensus estimate by 0.4% [2]. - The book value per share increased by 12.9% from the end of 2024 to $22.11 as of June 30, 2025 [5]. - Shareholder equity stood at $5.2 billion, a decrease of 0.3% from the end of 2024 [5]. - MGIC paid $400 million in dividends to the holding company and declared a dividend of 15 cents per share to be paid on August 21, 2025 [8]. Operational Metrics - Insurance in force rose by 1.9% year over year to $297 billion, falling short of the Zacks Consensus Estimate of $299 billion [3]. - Primary delinquency increased by 4.6% year over year to 24,444 loans [3][7]. - New insurance written reached $16.4 billion, marking a significant year-over-year increase of 21.5% [4][7]. - The loss ratio for the quarter was negative 1.2%, an improvement from negative 7.5% in the same quarter of the previous year [4]. Capital Management - MGIC repurchased 7.1 million shares for $180.7 million and has an additional share repurchase program authorized for up to $750 million [6]. - As of July 25, 2025, MGIC repurchased an additional 2.6 million shares for $68 million [6]. Industry Comparison - Other insurers like Prudential Financial, Everest Group, and Chubb Limited also reported positive results in Q2 2025, with adjusted operating incomes and total revenues beating consensus estimates [10][11][12].