MGIC (MTG) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates

Core Insights - MGIC Investment reported a revenue of $304.34 million for the quarter ended September 2025, reflecting a decrease of 0.6% year-over-year, while EPS increased to $0.83 from $0.77 in the previous year [1] - The revenue fell short of the Zacks Consensus Estimate of $307.8 million, resulting in a surprise of -1.12%, whereas the EPS exceeded expectations with a surprise of +15.28% against a consensus estimate of $0.72 [1] Financial Performance Metrics - The combined ratio for the insurance segment was reported at 25.6%, significantly better than the average estimate of 36.8% from two analysts [4] - The GAAP underwriting expense ratio was 21.1%, compared to the average estimate of 19.5% [4] - The GAAP loss ratio stood at 4.5%, well below the average estimate of 17.3% [4] - Net premiums earned were $241.75 million, slightly below the average estimate of $243.92 million, marking a year-over-year decline of 0.7% [4] - Other revenue was reported at $0.38 million, significantly lower than the estimated $0.57 million, representing a year-over-year decrease of 39.5% [4] - Net investment income was $62.21 million, slightly below the estimate of $63.36 million, with a year-over-year increase of 0.2% [4] Stock Performance - Over the past month, MGIC shares have returned -5.6%, contrasting with the Zacks S&P 500 composite's increase of +3.8% [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential for outperformance in the near term [3]