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 ...

Financial Data and Key Metrics Changes - Kinsale's operating earnings per share increased by 27.5% and gross written premium grew by 4.9% compared to Q2 2024 [4] - The company posted a combined ratio of 75.8% and a six-month operating return on equity of 24.7% [4] - Book value per share increased by 16% since the end of 2024 [4][10] Business Line Data and Key Metrics Changes - The commercial property division saw premiums drop by 16.8% in Q2 due to high competition and rate declines [6] - Excluding the commercial property division, Kinsale's premiums grew by 14.3% in Q2 [6] - Submission growth was 9% for the quarter, down from 10% in Q1, with the commercial property division experiencing a decline in submissions [17] Market Data and Key Metrics Changes - The E and S market remains competitive, with varying levels of competition across different industry segments [6] - Pricing trends align with the AmWINS index, which reported a 2.4% overall decrease, with commercial property down 20% [18] - Casualty pricing was mixed but modestly positive, with some professional and management liability lines slightly negative [18] Company Strategy and Development Direction - Kinsale focuses on small E and S accounts, maintaining control over underwriting and providing exceptional customer service [5] - The company continues to expand its product suite, including broadening its agribusiness vertical and launching new homeowners products in multiple states [17] - Kinsale aims to capture market opportunities while being cautious around loss cost trends and inflation [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in profitability and growth prospects despite heightened competition, particularly in the commercial property division [26] - The company remains optimistic about its loss results and growth prospects, emphasizing its position as a low-cost provider [19] - Management highlighted the importance of cautious reserving practices in the current economic environment [19][90] Other Important Information - Kinsale's net investment income increased by 29.6% in Q2 due to growth in the investment portfolio [11] - The company renewed its reinsurance program with favorable terms, reflecting strong historical results [7] Q&A Session Summary Question: Long-term growth target amidst competition - Management believes the 10% to 20% growth target is conservative, acknowledging variability due to heightened competition, especially in commercial property [25][26] Question: Underlying margin improvement - The underlying margin improvement is attributed to cautious approaches in long-tail casualty lines and strong performance in shorter-tail lines like property [30][31] Question: Commercial property pricing outlook - The commercial property division is experiencing intense competition, with rates and terms dropping significantly [33][34] Question: New business growth contribution - New business is likely driving most of the premium growth, with specific lines like high-value homeowners and small business property showing robust growth [48][51] Question: Reserve releases and trends - Management is conservative in releasing reserves, particularly in long-tail casualty lines, while short-tail business shows good results [89][90]