MGIC INVESTMENT CORP (MTG): Results of Operations and Financial Condition
MGIC INVESTMENT CORP (MTG) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99 Investor Relations: Dianna Higgins | (414) 347-2635 | dianna_higgins@mgic.com MGIC Investment Corporation Reports Second Quarter 2026 Results Second Quarter 2026 Net Income of $182.1 million or $0.86 per Diluted Share Second Quarter 2026 Adjusted Net Operating Income (
How this was made
The 30-second read
Why it matters
Improved underwriting profitability (loss ratio down to 4.6%) alongside higher NIW and a higher annualized ROE (14.5%) can strengthen the market’s view of credit performance and pricing discipline. The company also announces additional buyback authorization and a declared dividend, which can affect near-term demand and valuation multiples.
Market read
Traders can update MTG positioning based on the newly disclosed Q2 profitability metrics, delinquency/loss trends, and explicit capital return actions.
What to watch
Capital adequacy is framed via PMIERs available assets and excess; traders may focus on whether excess declines again and how the new excess-of-loss reinsurance coverage affects future loss volatility.
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
Second-quarter profitability, premiums earned, and annual persistency were below the prior-year figures, while new insurance written, insurance in force, book value per share, and tangible book value per share were higher. Results improved from Q1 2026 in net income, new insurance written, losses incurred, the loss ratio, and annualized return on equity.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net premiums writtenGAAP | $ 229,962 (In thousands) | – | – |
| Net premiums earnedGAAP | $ 238.1 million | – | – |
| Net investment incomeGAAP | 59,465 (In thousands) | – | – |
| Net gains (losses) on investments and other financial instrumentsGAAP | (2,226) (In thousands) | – | – |
| Other revenueGAAP | 92 (In thousands) | – | – |
| Total revenuesGAAP | 295,388 (In thousands) | – | – |
| Losses incurred, netGAAP | $ 11.0 million | – | – |
| Underwriting and other expenses, netGAAP | 45,575 (In thousands) | – | – |
| Interest expenseGAAP | 8,899 (In thousands) | – | – |
| Total losses and expensesGAAP | 65,460 (In thousands) | – | – |
| Income before taxGAAP | 229,928 (In thousands) | – | – |
| Provision for income taxesGAAP | 47,783 (In thousands) | – | – |
| Net incomeGAAP | $ 182.1 million | – | – |
| Net income per diluted shareGAAP | $ 0.86 | – | – |
| Adjusted pre-tax operating incomenon-GAAP | $ 231,891 (In thousands) | – | – |
| Adjusted net operating incomenon-GAAP | $ 183.7 million | – | – |
| Adjusted net operating income per diluted sharenon-GAAP | $ 0.87 | – | – |
| New insurance written (NIW)other | $ 17.8 billion | – | – |
| Insurance in forceother | $ 304.8 billion | – | – |
| Annual persistencyother | 83.3 % | – | – |
| Primary delinquency inventoryother | 26,152 | – | – |
| Primary IIF delinquency rate (count based)other | 2.37 % | – | – |
| Loss ratioother | 4.6 % | – | – |
| Underwriting expense ratioother | 19.8 % | – | – |
| In force portfolio yield (bps)other | 37.8 | – | – |
| Net premium yield (bps)other | 31.3 | – | – |
| Annualized return on equityother | 14.5 % | – | – |
| Book value per common share outstandingother | $ 24.27 | – | – |
| Adjust for AOCIother | $ 0.81 | – | – |
| Tangible book value per shareother | $ 25.08 | – | – |
Capital returns
- Repurchased 6.6 million shares of common stock for $176.6 million.
- Paid a dividend of $0.15 per common share to shareholders.
- MGIC paid a $400 million dividend to the holding company.
- Board approved a share repurchase program authorizing an additional $750 million of common stock purchases prior to December 31, 2028.
- Through July 24, 2026, repurchased an additional 1.5 million shares of common stock for $42.4 million.
- Declared a dividend of $0.17 per common share payable on August 20, 2026, to shareholders of record at the close of business on August 5, 2026.
What drove it
- New insurance written was $ 17.8 billion, compared with $ 14.4 billion in Q1 2026 and $ 16.4 billion in Q2 2025.
- Insurance in force was $ 304.8 billion, compared with $ 302.7 billion in Q1 2026 and $ 297.0 billion in Q2 2025.
- Losses incurred, net were $ 11.0 million, compared with $ 33.2 million in Q1 2026.
- The loss ratio was 4.6 %, compared with 14.1 % in Q1 2026.
- The underwriting expense ratio was 19.8 %, compared with 20.5 % in Q1 2026 and 21.9 % in Q2 2025.
- The company executed a traditional excess-of-loss reinsurance transaction that provides up to $168 million of reinsurance coverage on eligible NIW in 2027.
Concerns
- Net premiums earned were $ 238.1 million, compared with $ 244.3 million in Q2 2025.
- Net income was $ 182.1 million, compared with $ 192.5 million in Q2 2025.
- Annual persistency was 83.3 %, compared with 84.0 % in Q1 2026 and 84.7 % in Q2 2025.
- Primary delinquency inventory was 26,152, compared with 24,444 in Q2 2025.
- Primary IIF delinquency rate was 2.37 %, compared with 2.21 % in Q2 2025.
- PMIERs excess was $ 2.7 billion, compared with $ 2.9 billion as of March 31, 2026.
What to watch
- Third-quarter share repurchases following the 1.5 million shares repurchased for $42.4 million through July 24, 2026.
- The $0.17 per common share dividend payable on August 20, 2026.
- Eligible NIW in 2027 covered by the excess-of-loss reinsurance transaction, which provides up to $168 million of coverage.
- Annual persistency, primary delinquency inventory, primary IIF delinquency rate, and PMIERs excess.
Balance sheet and cash flow
- PMIERs available assets were $ 5.6 billion as of June 30, 2026, compared with $ 5.8 billion as of March 31, 2026 and $ 5.7 billion as of June 30, 2025.
- PMIERs excess was $ 2.7 billion as of June 30, 2026, compared with $ 2.9 billion as of March 31, 2026 and $ 2.4 billion as of June 30, 2025.
- Holding company liquidity was $ 930 million as of June 30, 2026, compared with $ 709 million as of March 31, 2026 and $ 1,046 million as of June 30, 2025.
Analysis
MGIC reported second-quarter GAAP net income of $182.1 million, or $0.86 per diluted share, and adjusted net operating income of $183.7 million, or $0.87 per diluted share. GAAP net income compared with $165.3 million in Q1 2026 and $192.5 million in Q2 2025. Adjusted net operating income compared with $165.1 million in Q1 2026 and $194.0 million in Q2 2025. Annualized return on equity was 14.5 %, versus 13.0 % in Q1 2026 and 15.0 % in Q2 2025.
Production and the insured portfolio expanded. New insurance written was $17.8 billion, versus $14.4 billion in Q1 2026 and $16.4 billion in Q2 2025, while insurance in force reached $304.8 billion, versus $302.7 billion in Q1 2026 and $297.0 billion in Q2 2025. Net premiums earned were $238.1 million, compared with $235.4 million in Q1 2026 and $244.3 million in Q2 2025. Annual persistency was 83.3 %, compared with 84.0 % in Q1 2026 and 84.7 % in Q2 2025.
Underwriting indicators improved sequentially. Losses incurred, net were $11.0 million and the loss ratio was 4.6 %, compared with $33.2 million and 14.1 % in Q1 2026. The underwriting expense ratio was 19.8 %, versus 20.5 % in Q1 2026 and 21.9 % in Q2 2025. The primary IIF delinquency rate was 2.37 %, compared with 2.44 % in Q1 2026, although it was above 2.21 % in Q2 2025. Primary delinquency inventory was 26,152, compared with 27,006 in Q1 2026 and 24,444 in Q2 2025.
Capital deployment was substantial. The company repurchased 6.6 million shares for $176.6 million during the second quarter and paid a $0.15 per common share dividend. MGIC paid a $400 million dividend to the holding company, and the board authorized an additional $750 million repurchase program through December 31, 2028. Through July 24, 2026, the company repurchased an additional 1.5 million shares for $42.4 million and declared a $0.17 per common share dividend payable on August 20, 2026.
Liquidity and capital remained material watchpoints. Holding company liquidity was $930 million as of June 30, 2026, versus $709 million at March 31, 2026 and $1,046 million at June 30, 2025. PMIERs available assets were $5.6 billion and PMIERs excess was $2.7 billion. The company also executed a traditional excess-of-loss reinsurance transaction providing up to $168 million of coverage on eligible NIW in 2027. The release did not provide forward financial guidance.
Management, verbatim
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.
Tim Mattke, CEO of MTG and Mortgage Guaranty Insurance Corporation (“MGIC”)
Not in the filing
stated, not guessed- Forward revenue, earnings, premium, loss-ratio, expense-ratio, tax-rate, or capital guidance.
- Prior-period outlook for comparison.
- Gross margin.
- Operating income.
- Operating cash flow.
- Free cash flow.
- Cash balance.
- Debt balance.
- Complete balance sheet figures, as the filing text is truncated within the condensed consolidated balance sheets.
- Reportable segment revenue and profitability.
- Effective tax rate.
- Quarter-over-quarter comparisons for statement-of-operations line items other than those included in the summary financial metrics.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
The article is an SEC Form 8-K (Item 2.02) with MGIC Investment Corp’s Q2 2026 operating and financial results, including non-GAAP metrics and capital/liquidity updates.
Ticker impact
MGIC Investment Corp reported Q2 2026 net income of $182.1M, NIW of $17.8B, and a lower loss ratio of 4.6% versus 14.1% in Q1.
Likely positive bias for MTG shares on earnings-day sentiment, with follow-through dependent on whether loss ratio and delinquency trends persist.
The filing provides multiple concrete operating metrics (loss ratio, delinquency rates, ROE) plus explicit capital return actions (repurchase authorization, declared dividend), which are direct inputs to trader positioning.
Market effects
Mortgage insurer read-through: improved loss ratio and delinquency metrics can support sector sentiment around credit performance and pricing adequacy.
Primarily US housing credit risk sentiment; no explicit regional breakdown provided.
Limited direct global impact; mortgage credit risk is mostly domestic for this issuer.
Counterpoint
Despite improved Q2 metrics, primary delinquency inventory and IIF delinquency rate remain elevated versus Q2 2025, so the improvement could be partly timing-related.
Key entities
- issuerMGIC Investment Corporation
Mortgage insurance provider reporting Q2 2026 results and capital actions via SEC 8-K.
- subsidiaryMortgage Guaranty Insurance Corporation (MGIC)
Principal operating subsidiary referenced in the release.
