MGIC Investment Corporation Reports Fourth Quarter 2025 Results

Core Insights - MGIC Investment Corporation reported a strong financial performance for the fourth quarter and full year of 2025, with net income of $169.3 million or $0.75 per diluted share for Q4, and $738.3 million or $3.14 per diluted share for the full year [1][2]. Financial Performance - Fourth Quarter 2025: - Net income: $169.3 million, down from $191.1 million in Q3 2025 and up from $184.7 million in Q4 2024 [4]. - Adjusted net operating income: $168.4 million, consistent with net income per diluted share of $0.75 [1][4]. - New insurance written (NIW): $17.1 billion, compared to $16.5 billion in Q3 2025 and $15.9 billion in Q4 2024 [4][25]. - Net premiums earned: $236.0 million, slightly up from $241.3 million in Q3 2025 [4]. - Insurance in force: $303.1 billion, an increase from $300.8 billion in Q3 2025 [4][25]. - Full Year 2025: - Net income: $738.3 million, down from $762.9 million in 2024 [1][4]. - Adjusted net operating income: $738.4 million, consistent with the previous year [1][4]. - Total revenues: $1.213 billion, compared to $1.208 billion in 2024 [21]. Capital and Liquidity - The company returned $915 million to shareholders in 2025, including dividends and share repurchases [2][10]. - As of December 31, 2025, PMIERs available assets were $5.9 billion, with PMIERs excess at $2.5 billion [5]. Risk Management and Market Position - The company emphasized its disciplined risk management and financial stability, playing a critical role in supporting low-down payment borrowers [3]. - MGIC had $303.1 billion of primary insurance in force, covering approximately 1.1 million mortgages as of December 31, 2025 [8]. Delinquency and Claims - Primary delinquency inventory increased to 27,072 loans, with a delinquency rate of 2.43% [27]. - Losses incurred in Q4 2025 were $31.2 million, significantly higher than $10.9 million in Q3 2025 [4][21]. Shareholder Actions - The company repurchased 6.8 million shares for $189.1 million and declared a dividend of $0.15 per common share [10]. - S&P revised its outlook on MGIC to positive from stable, indicating improved market confidence [10].