Second Quarter 2026 Net Income of $182.1 million or $0.86 per Diluted Share
Second Quarter 2026 Adjusted Net Operating Income (Non-GAAP) of $183.7 million or $0.87 per Diluted Share
MILWAUKEE, July 29, 2026 /PRNewswire/ -- MGIC Investment Corporation (NYSE: MTG) today reported operating and financial results for the second quarter of 2026.
Tim Mattke, CEO of MTG and Mortgage Guaranty Insurance Corporation ("MGIC") said, "Our strong second quarter results, highlighted by a 14.5% return on equity, reflect the continued success of our disciplined execution. We've delivered consistent performance, generated meaningful returns for shareholders, and strengthened our position for the future. Our deep industry expertise, strong balance sheet, and customer-focused approach continue to drive sustainable value."
SUMMARY FINANCIAL METRICS | Quarter ended | ||
($ in millions, except where otherwise noted) | Q2 2026 | Q1 2026 | Q2 2025 |
Net income | $ 182.1 | $ 165.3 | $ 192.5 |
Net income per diluted share | $ 0.86 | $ 0.76 | $ 0.81 |
Adjusted net operating income | $ 183.7 | $ 165.1 | $ 194.0 |
Adjusted net operating income per diluted share | $ 0.87 | $ 0.76 | $ 0.82 |
New insurance written (NIW) (billions) | $ 17.8 | $ 14.4 | $ 16.4 |
Net premiums earned | $ 238.1 | $ 235.4 | $ 244.3 |
Insurance in force (billions) | $ 304.8 | $ 302.7 | $ 297.0 |
Annual persistency | 83.3 % | 84.0 % | 84.7 % |
Losses incurred, net | $ 11.0 | $ 33.2 | $ (2.8) |
Primary delinquency inventory | 26,152 | 27,006 | 24,444 |
Primary IIF delinquency rate (count based) | 2.37 % | 2.44 % | 2.21 % |
Loss ratio | 4.6 % | 14.1 % | (1.2 %) |
Underwriting expense ratio | 19.8 % | 20.5 % | 21.9 % |
In force portfolio yield (bps) | 37.8 | 38.0 | 38.3 |
Net premium yield (bps) | 31.3 | 31.1 | 33.0 |
Annualized return on equity | 14.5 % | 13.0 % | 15.0 % |
Book value per common share outstanding | $ 24.27 | $ 23.63 | $ 22.11 |
Adjust for AOCI | $ 0.81 | $ 0.79 | $ 0.88 |
Tangible book value per share | $ 25.08 | $ 24.41 | $ 22.99 |
CAPITAL AND LIQUIDITY | As of | ||
($ in billions, except where otherwise noted) | June 30, 2026 | March 31, 2026 | June 30, 2025 |
PMIERs available assets | $ 5.6 | $ 5.8 | $ 5.7 |
PMIERs excess | $ 2.7 | $ 2.9 | $ 2.4 |
Holding company liquidity (millions) | $ 930 | $ 709 | $ 1,046 |
SECOND QUARTER 2026 HIGHLIGHTS
We repurchased 6.6 million shares of common stock for $176.6 million.
We paid a dividend of $0.15 per common share to shareholders.
MGIC paid a $400 million dividend to our holding company.
Our board of directors approved a share repurchase program, authorizing us to purchase an additional $750 million of common stock prior to December 31, 2028.
THIRD QUARTER 2026 HIGHLIGHTS
Through July 24, 2026 we repurchased an additional 1.5 million shares of our common stock for $42.4 million.
We declared a dividend of $0.17 per common share to shareholders payable on August 20, 2026, to shareholders of record at the close of business on August 5, 2026.
We executed a traditional excess-of-loss reinsurance transaction which provides up to $168 million of reinsurance coverage on eligible NIW in 2027.
Conference Call and Webcast Details
MGIC Investment Corporation will hold a conference call July 30, 2026, at 10:00 a.m. ET to allow securities analysts and shareholders the opportunity to hear management discuss the company's quarterly results. Individuals interested in joining by telephone should register for the call at https://edge.media-server.com/mmc/p/m2vjy8nq/ to receive the dial-in number and unique PIN to access the call. It is recommended that you join the call at least 10 minutes before the conference call begins. The call is also being webcast and can be accessed at the company's website at http://mtg.mgic.com/ under "Newsroom." A replay of the webcast will be available on the company's website through August 31, 2026.
About MGIC
Mortgage Guaranty Insurance Corporation (MGIC) (www.mgic.com), the principal subsidiary of MGIC Investment Corporation, provides mortgage insurance solutions that support responsible credit risk management for mortgage lenders and investors and enable borrowers to qualify for mortgages with lower down payments. As the founder and longstanding leader of today's private mortgage insurance industry, MGIC continues to guide the industry's evolution while serving as a trusted partner to lenders across the country.
This press release, which includes certain additional statistical and other information, including non-GAAP financial information and a supplement that contains various portfolio statistics, are all available on the Company's website at https://mtg.mgic.com/ under "Newsroom."
From time to time MGIC Investment Corporation releases important information via postings on its corporate website, and via postings on MGIC's website for information related to underwriting and pricing, and intends to continue to do so in the future. Such postings include corrections of previous disclosures and may be made without any other disclosure. Investors and other interested parties are encouraged to enroll to receive automatic email alerts and Really Simple Syndication (RSS) feeds regarding new postings. Enrollment information for MGIC Investment Corporation alerts can be found at https://mtg.mgic.com/shareholder-services/email-alerts. For information about our underwriting and rates, see https://www.mgic.com/underwriting.
Use of Non-GAAP financial measures
We believe that use of the Non-GAAP financial measures of adjusted pre-tax operating income (loss), adjusted net operating income (loss) and adjusted net operating income (loss) per diluted share facilitate the evaluation of the company's core financial performance thereby providing relevant information to investors. These measures are not recognized in accordance with accounting principles generally accepted in the United States of America (GAAP) and should not be viewed as alternatives to GAAP measures of performance.
Adjusted pre-tax operating income (loss) is defined as GAAP income (loss) before tax, excluding the effects of net realized investment gains (losses), gain and losses on debt extinguishment and infrequent or unusual non-operating items where applicable.
Adjusted net operating income (loss) is defined as GAAP net income (loss) excluding the after-tax effects of net realized investment gains (losses), gain and losses on debt extinguishment and infrequent or unusual non-operating items where applicable. The amounts of adjustments to components of pre-tax operating income (loss) are tax effected using a federal statutory tax rate of 21%.
Adjusted net operating income (loss) per diluted share is calculated in a manner consistent with the accounting standard regarding earnings per share by dividing (i) adjusted net operating income (loss) by (ii) diluted weighted average common shares outstanding, which reflects share dilution from unvested restricted stock units.
Although adjusted pre-tax operating income (loss) and adjusted net operating income (loss) exclude certain items that have occurred in the past and are expected to occur in the future, the excluded items represent items that are: (1) not viewed as part of the operating performance of our primary activities; or (2) impacted by both discretionary and other economic or regulatory factors and are not necessarily indicative of operating trends, or both. These adjustments, along with the reasons for their treatment, are described below. Trends in the profitability of our fundamental operating activities can be more clearly identified without the fluctuations of these adjustments. Other companies may calculate these measures differently. Therefore, their measures may not be comparable to those used by us.
(1) Net realized investment gains (losses). The recognition of net realized investment gains or losses can vary significantly across periods as the timing of individual securities sales is highly discretionary and is influenced by such factors as market opportunities, our tax and capital profile, and overall market cycles.
(2) Gains and losses on debt extinguishment. Gains and losses on debt extinguishment result from discretionary activities that are undertaken to enhance our capital position, and/or improve our debt profile.
(3) Infrequent or unusual non-operating items. Items that are non-recurring in nature and are not part of our primary operating activities.
MGIC INVESTMENT CORPORATION AND SUBSIDIARIES | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | ||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||
(In thousands, except per share data) | 2026 | 2025 | 2026 | 2025 | ||||
Net premiums written | $ 229,962 | $ 237,384 | $ 464,905 | $ 472,730 | ||||
Revenues | ||||||||
Net premiums earned | $ 238,057 | $ 244,322 | $ 473,420 | $ 488,041 | ||||
Net investment income | 59,465 | 60,995 | 121,207 | 122,438 | ||||
Net gains (losses) on investments and other financial instruments | (2,226) | (1,426) | (2,395) | (685) | ||||
Other revenue | 92 | 354 | 233 | 685 | ||||
Total revenues | 295,388 | 304,245 | 592,465 | 610,479 | ||||
Losses and expenses | ||||||||
Losses incurred, net | 10,986 | (2,835) | 44,228 | 6,756 | ||||
Underwriting and other expenses, net | 45,575 | 52,092 | 93,683 | 105,155 | ||||
Interest expense | 8,899 | 8,899 | 17,798 | 17,798 | ||||
Total losses and expenses | 65,460 | 58,156 | 155,709 | 129,709 | ||||
Income before tax | 229,928 | 246,089 | 436,756 | 480,770 | ||||
Provision for income taxes | 47,783 | 53,607 | 89,308 | 102,828 | ||||
Net income | $ 182,145 | $ 192,482 | $ 347,448 | $ 377,942 | ||||
Net income per diluted share | $ 0.86 | $ 0.81 | $ 1.62 | $ 1.56 |
MGIC INVESTMENT CORPORATION AND SUBSIDIARIES | ||||||||
EARNINGS PER SHARE (UNAUDITED) | ||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||
(In thousands, except per share data) | 2026 | 2025 | 2026 | 2025 | ||||
Net income - basic and diluted | $ 182,145 | $ 192,482 | $ 347,448 | $ 377,942 | ||||
Basic weighted average common shares outstanding | 209,923 | 236,333 | 213,012 | 240,218 | ||||
Dilutive effect of unvested restricted stock units | 1,022 | 1,638 | 1,536 | 1,991 | ||||
Diluted weighted average common shares outstanding | 210,945 | 237,971 | 214,548 | 242,209 | ||||
Diluted earnings per share | $ 0.86 | $ 0.81 | $ 1.62 | $ 1.56 |
NON-GAAP RECONCILIATIONS | |||||||||||||
Reconciliation of Income before tax / Net income to Adjusted pre-tax operating income / Adjusted net operating income | |||||||||||||
Three Months Ended June 30, | |||||||||||||
2026 | 2025 | ||||||||||||
(In thousands, except per share amounts) | Pre-tax | Tax Effect | Net (after-tax) | Pre-tax | Tax Effect | Net (after-tax) | |||||||
Income before tax / Net income | $ 229,928 | $ 47,783 | $ 182,145 | $ 246,089 | $ 53,607 | $ 192,482 | |||||||
Adjustments: | |||||||||||||
Net realized investment (gains) losses | 1,963 | 412 | 1,551 | 1,944 | 408 | 1,536 | |||||||
Adjusted pre-tax operating income / Adjusted net operating income | $ 231,891 | $ 48,195 | $ 183,696 | $ 248,033 | $ 54,015 | $ 194,018 | |||||||
Reconciliation of Net income per diluted share to Adjusted net operating income per diluted share | |||||||||||||
Weighted average shares - diluted | 210,945 | 237,971 | |||||||||||
Net income per diluted share | $ 0.86 | $ 0.81 | |||||||||||
Net realized investment (gains) losses | 0.01 | 0.01 | |||||||||||
Adjusted net operating income per diluted share | $ 0.87 | $ 0.82 | |||||||||||
Reconciliation of Income before tax / Net income to Adjusted pre-tax operating income / Adjusted net operating income | |||||||||||||
Six Months Ended June 30, | |||||||||||||
2026 | 2025 | ||||||||||||
(In thousands, except per share amounts) | Pre-tax | Tax Effect | Net | Pre-tax | Tax Effect | Net | |||||||
Income before tax / Net income | $ 436,756 | $ 89,308 | $ 347,448 | $ 480,770 | $ 102,828 | $ 377,942 | |||||||
Adjustments: | |||||||||||||
Net realized investment (gains) losses | 1,763 | 370 | 1,393 | 1,625 | 341 | 1,284 | |||||||
Adjusted pre-tax operating income / Adjusted | $ 438,519 | $ 89,678 | $ 348,841 | $ 482,395 | $ 103,169 | $ 379,226 | |||||||
Reconciliation of Net income per diluted share to Adjusted net operating income per diluted share | |||||||||||||
Weighted average shares - diluted | 214,548 | 242,209 | |||||||||||
Net income per diluted share | $ 1.62 | $ 1.56 | |||||||||||
Net realized investment (gains) losses | 0.01 | 0.01 | |||||||||||
Adjusted net operating income per diluted share | $ 1.63 | $ 1.57 | |||||||||||
MGIC INVESTMENT CORPORATION AND SUBSIDIARIES | ||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) | ||||||
June 30, | December 31, | June 30, | ||||
(In thousands, except per share data) | 2026 | 2025 | 2025 | |||
ASSETS | ||||||
Investments (1) | $ 5,717,441 | $ 5,807,662 | $ 5,818,478 | |||
Cash and cash equivalents | 207,277 | 368,989 | 294,871 | |||
Restricted cash and cash equivalents | 7,819 | 6,525 | 4,024 | |||
Reinsurance recoverable on loss reserves (2) | 76,144 | 65,055 | 53,781 | |||
Home office and equipment, net | 31,604 | 32,454 | 33,210 | |||
Deferred insurance policy acquisition costs | 7,473 | 8,377 | 10,274 | |||
Deferred income taxes, net | 131,243 | 18,512 | 41,818 | |||
Other assets | 347,981 | 331,912 | 285,871 | |||
Total assets | $ 6,526,982 | $ 6,639,486 | $ 6,542,327 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
Liabilities: | ||||||
Loss reserves (2) | $ 492,001 | $ 474,884 | $ 452,154 | |||
Unearned premiums | 84,511 | 93,026 | 105,049 | |||
Senior notes | 646,874 | 646,138 | 645,402 | |||
Other liabilities | 290,237 | 277,887 | 184,778 | |||
Total liabilities | 1,513,623 | 1,491,935 | 1,387,383 | |||
Shareholders' equity | 5,013,359 | 5,147,551 | 5,154,944 | |||
Total liabilities and shareholders' equity | $ 6,526,982 | $ 6,639,486 | $ 6,542,327 | |||
Book value per share (3) | $ 24.27 | $ 23.47 | $ 22.11 | |||
(1) Investments include net unrealized gains (losses) on securities | $ (196,727) | $ (152,767) | $ (224,917) | |||
(2) Loss reserves, net of reinsurance recoverable on loss reserves | $ 415,857 | $ 409,829 | $ 398,373 | |||
(3) Shares outstanding | 206,603 | 219,367 | 233,138 |
MGIC INVESTMENT CORPORATION AND SUBSIDIARIES | |||||||||||||
ADDITIONAL INFORMATION - NEW INSURANCE WRITTEN | |||||||||||||
2026 | 2025 | Year-to-date | |||||||||||
Q2 | Q1 | Q4 | Q3 | Q2 | 2026 | 2025 | |||||||
New primary insurance written (NIW) (billions) | $ 17.8 | $ 14.4 | $ 17.1 | $ 16.5 | $ 16.4 | $ 32.2 | $ 26.6 | ||||||
Monthly (including split premium plans) and annual premium plans | 17.2 | 13.9 | 16.6 | 16.1 | 16.0 | 31.1 | 25.9 | ||||||
Single premium plans | 0.6 | 0.5 | 0.5 | 0.4 | 0.4 | 1.1 | 0.7 | ||||||
Product mix as a % of primary NIW | |||||||||||||
Credit score < 680 | 5 % | 5 % | 5 % | 4 % | 4 % | 5 % | 4 % | ||||||
>95% LTVs | 15 % | 14 % | 15 % | 17 % | 13 % | 14 % | 13 % | ||||||
>45% DTI | 25 % | 25 % | 26 % | 27 % | 26 % | 25 % | 28 % | ||||||
Singles | 3 % | 4 % | 3 % | 2 % | 2 % | 3 % | 2 % | ||||||
Refinances | 10 % | 21 % | 17 % | 6 % | 6 % | 15 % | 6 % | ||||||
New primary risk written (billions) | $ 4.6 | $ 3.8 | $ 4.4 | $ 4.4 | $ 4.3 | $ 8.4 | $ 6.9 |
MGIC INVESTMENT CORPORATION AND SUBSIDIARIES | |||||||||
ADDITIONAL INFORMATION - INSURANCE IN FORCE and RISK IN FORCE | |||||||||
2026 | 2025 | ||||||||
Q2 | Q1 | Q4 | Q3 | Q2 | |||||
Primary Insurance In Force (IIF) (billions) | $ 304.8 | $ 302.7 | $ 303.1 | $ 300.8 | $ 297.0 | ||||
Total # of loans | 1,105,114 | 1,106,958 | 1,112,727 | 1,111,855 | 1,107,526 | ||||
Premium Yield | |||||||||
In force portfolio yield (1) | 37.8 | 38.0 | 38.0 | 38.3 | 38.3 | ||||
Premium refunds (2) | (0.2) | (0.3) | (0.4) | (0.3) |