MGIC Investment Corporation Reports Third Quarter 2026 Results
MGIC INVESTMENT CORP (MTG) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99 Investor Relations: Andrea Bolyard | (262) 893-0562 | andrea_bolyard@mgic.com MGIC Investment Corporation Reports Third Quarter 2026 Results Third Quarter 2026 Net Income of $175.0 million or $0.85 per Diluted Share Third Quarter 2026 Adjusted Net Operating Income (Non
How this was made
The 30-second read
Why it matters
The earnings release provides fresh data for valuation models and may trigger short‑term trading activity.
Market read
Primary earnings disclosure for a mid‑cap insurer; relevant for sector and income‑focused investors.
What to watch
The new reinsurance transactions and share repurchases may support longer‑term cash flow and share price.
Third Quarter 2026 Net Income of $175.0 million or $0.85 per Diluted Share; Adjusted Net Operating Income (Non-GAAP) of $174.7 million or $0.85 per Diluted Share
Insurance in force and new insurance written were higher than the prior-year quarter, underwriting efficiency improved, and shareholder distributions continued, but net income, net premiums earned, persistency, net premium yield and return on equity were lower than the prior-year quarter while losses incurred and the delinquency rate increased.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 net premiums writtenGAAP | $235.3M | – | – |
| Q3 2026 net premiums earnedGAAP | $238.5M | – | – |
| Q3 2026 net investment incomeGAAP | 60,907 | – | – |
| Q3 2026 net gains (losses) on investments and other financial instrumentsGAAP | (382) | – | – |
| Q3 2026 other revenueGAAP | 96 | – | – |
| Q3 2026 total revenuesGAAP | 299,080 | – | – |
| Q3 2026 losses incurred, netGAAP | 23,939 | – | – |
| Q3 2026 underwriting and other expenses, netGAAP | 44,928 | – | – |
| Q3 2026 interest expenseGAAP | 8,906 | – | – |
| Q3 2026 total losses and expensesGAAP | 77,773 | – | – |
| Q3 2026 income before taxGAAP | 221,307 | – | – |
| Q3 2026 provision for income taxesGAAP | 46,335 | – | – |
| Q3 2026 net incomeGAAP | $175.0M | – | – |
| Q3 2026 net income per diluted shareGAAP | $ 0.85 | – | – |
| Q3 2026 adjusted pre-tax operating incomenon-GAAP | $ 220,930 | – | – |
| Q3 2026 adjusted net operating incomenon-GAAP | $174.7M | – | – |
| Q3 2026 adjusted net operating income per diluted sharenon-GAAP | $ 0.85 | – | – |
| Nine months ended September 30, 2026 net premiums writtenGAAP | $ 700,207 | – | – |
| Nine months ended September 30, 2026 net premiums earnedGAAP | $ 711,879 | – | – |
| Nine months ended September 30, 2026 total revenuesGAAP | 891,545 | – | – |
| Nine months ended September 30, 2026 losses incurred, netGAAP | 68,167 | – | – |
| Nine months ended September 30, 2026 underwriting and other expenses, netGAAP | 138,611 | – | – |
| Nine months ended September 30, 2026 interest expenseGAAP | 26,704 | – | – |
| Nine months ended September 30, 2026 net incomeGAAP | $ 522,420 | – | – |
| Nine months ended September 30, 2026 net income per diluted shareGAAP | $ 2.47 | – | – |
| Nine months ended September 30, 2026 adjusted net operating incomenon-GAAP | $ 523,515 | – | – |
| Nine months ended September 30, 2026 adjusted net operating income per diluted sharenon-GAAP | $ 2.48 | – | – |
| Q3 2026 new primary insurance written (NIW)other | $ 17.1 | – | – |
| Q3 2026 new primary risk writtenother | $ 4.5 | – | – |
| Q3 2026 primary insurance in force (IIF)other | $ 307.3 | – | – |
| Q3 2026 primary risk in force (RIF)other | $ 82.5 | – | – |
| Q3 2026 annual persistencyother | 82.5 % | – | – |
| Q3 2026 primary IIF delinquency rate (count based)other | 2.52 % | – | – |
| Q3 2026 loss ratioother | 10.0 % | – | – |
| Q3 2026 underwriting expense ratioother | 19.1 % | – | – |
| Q3 2026 in force portfolio yieldother | 37.9 | – | – |
| Q3 2026 net premium yieldother | 31.2 | – | – |
| Q3 2026 annualized return on equityother | 14.2 % | – | – |
| Q3 2026 book value per common share outstandingother | $ 24.06 | – | – |
| Q3 2026 tangible book value per shareother | $ 25.68 | – | – |
Capital returns
- We repurchased 5.1 million shares of common stock for $152.5 million.
- We paid a dividend of $0.17 per common share to shareholders.
- We declared a dividend of $0.17 per common share to shareholders payable on November 23, 2026, to shareholders of record at the close of business on November 12, 2026.
- In October we repurchased an additional 2.5 million shares of our common stock for $70.2 million.
- In November, MGIC paid a dividend of $350 million to the holding company.
What drove it
- Q3 2026 NIW was $ 17.1, including 16.5 for monthly and annual premium plans and 0.6 for single premium plans.
- Year-to-date 2026 NIW was $ 49.3, compared with $ 43.1 in 2025.
- Q3 2026 current quarter losses incurred, net were $ 58, while prior period losses incurred, net were $ (34).
- Q3 2026 net paid claims were $ 21, compared with $ 14 in Q3 2025 and $ 21 in Q2 2026.
- Q3 2026 quota share reinsurance covered 88.4 % of NIW; ceded premiums written and earned were $ 38.8, ceded losses incurred were $ 10.2, ceding commissions were $ 15.0, and profit commission was $ 36.0.
- The company executed a traditional excess-of-loss reinsurance transaction providing up to $168 million of reinsurance coverage on eligible NIW in 2027.
- The 2023 quota share reinsurance cede rate will decrease from 25% to 23.98%, effective December 31, 2026.
- The company agreed to terms for a 40% quota share reinsurance transaction covering eligible 2028 NIW and a 20% quota share reinsurance transaction covering eligible 2029 NIW.
Concerns
- Primary delinquency inventory was 27,814, compared with 25,747 in Q3 2025 and 26,152 in Q2 2026.
- Losses incurred, net were $ 23.9, compared with $ 10.9 in Q3 2025 and $ 11.0 in Q2 2026.
- Annual persistency was 82.5 %, compared with 85.0 % in Q3 2025 and 83.3 % in Q2 2026.
- Net premium yield was 31.2, compared with 32.3 in Q3 2025 and 31.3 in Q2 2026.
- Holding company liquidity was $ 783, compared with $ 930 at June 30, 2026.
What to watch
- Primary IIF delinquency rate (count based), which was 2.52 % in Q3 2026.
- Current quarter losses incurred, net, which were $ 58 in Q3 2026, and prior period losses incurred, net, which were $ (34).
- New primary insurance written and persistency, reported at $ 17.1 and 82.5 % in Q3 2026.
- Net premium yield of 31.2 and ceded premiums earned, net of profit commission and other premiums of (6.7).
- PMIERs excess of $ 2.8 and holding company liquidity of $ 783.
- Implementation of reinsurance arrangements covering eligible 2027, 2028 and 2029 NIW.
Balance sheet and cash flow
- September 30, 2026 cash and cash equivalents were $ 215,376, compared with $ 368,989 at December 31, 2025 and $ 266,901 at September 30, 2025.
- September 30, 2026 investments were $ 5,537,858, compared with $ 5,807,662 at December 31, 2025 and $ 5,884,989 at September 30, 2025.
- September 30, 2026 senior notes were $ 647,241, compared with $ 646,138 at December 31, 2025 and $ 645,770 at September 30, 2025.
- September 30, 2026 shareholders' equity was 4,847,324, compared with 5,147,551 at December 31, 2025 and 5,172,699 at September 30, 2025.
- PMIERs available assets were $ 5.8, compared with $ 5.6 at June 30, 2026 and $ 5.9 at September 30, 2025.
- PMIERs excess was $ 2.8, compared with $ 2.7 at June 30, 2026 and $ 2.5 at September 30, 2025.
- Holding company liquidity was $ 783, compared with $ 930 at June 30, 2026 and $ 858 at September 30, 2025.
- No operating cash flow, capital expenditures, or free cash flow was reported.
Analysis
MGIC reported Q3 2026 GAAP net income of $ 174,972 and diluted EPS of $ 0.85, compared with $ 191,095 and $ 0.83 in Q3 2025. Adjusted net operating income was $ 174,674, compared with $ 190,786. The prior-year EPS comparison reflects diluted weighted average common shares outstanding of 205,421 in Q3 2026 versus 231,376 in Q3 2025. Net premiums written were essentially unchanged at $ 235,302 versus $ 235,228, while net premiums earned declined to $ 238,459 from $ 241,750 and total revenues were 299,080 versus 304,505.
New-business and in-force measures remained constructive. New primary insurance written was $ 17.1, compared with $ 16.5 in Q3 2025, while primary insurance in force reached $ 307.3 versus $ 300.8. Primary risk in force was $ 82.5 compared with $ 80.6. However, annual persistency was 82.5 % versus 85.0 %, and net premium yield was 31.2 versus 32.3. The in force portfolio yield was 37.9, compared with 38.3.
Credit costs were the main adverse movement. Losses incurred, net were $ 23,939 versus $ 10,928, and the loss ratio was 10.0 % versus 4.5 %. The primary IIF delinquency rate was 2.52 % versus 2.32 %, with ending delinquent inventory of 27,814 versus 25,747. The quarter included $ 58 of current quarter losses incurred, net and $ (34) of prior period losses incurred, net. Offsetting this pressure, underwriting and other expenses, net were 44,928 versus 49,610, and the underwriting expense ratio improved to 19.1 % from 21.1 %.
Capital management remained active. The company repurchased 5.1 million shares for $152.5 million and paid a dividend of $0.17 per common share during the third quarter. It then repurchased an additional 2.5 million shares for $70.2 million in October, declared a $0.17 per-share dividend payable on November 23, 2026, and received a $350 million dividend from MGIC in November. September 30 PMIERs excess was $ 2.8, versus $ 2.5 at September 30, 2025, while holding company liquidity was $ 783, versus $ 858.
The company did not provide financial outlook guidance. Management instead detailed reinsurance actions: a traditional excess-of-loss transaction providing up to $168 million on eligible 2027 NIW, a reduction in the 2023 quota-share cede rate from 25% to 23.98% effective December 31, 2026, and agreed terms for quota-share coverage on eligible 2028 and 2029 NIW. Investors should focus on delinquency development, loss provisioning, persistency and premium yield alongside the effect of the revised and new reinsurance arrangements.
Management, verbatim
Our third quarter results demonstrate the continued strength and consistency of our business. Our nearly 70 years of experience across market cycles reinforces the importance of a thoughtful, disciplined approach. We remain focused on maintaining financial strength, serving our customers and managing the business for the long term.
Tim Mattke, CEO of MTG and Mortgage Guaranty Insurance Corporation (“MGIC”)
Not in the filing
stated, not guessed- Forward financial guidance was not provided.
- Prior-quarter comparative figures were not reported for the condensed consolidated statements of operations other than figures separately shown in the summary financial metrics and supplemental operating tables.
- Gross margin was not reported.
- Operating cash flow was not reported.
- Capital expenditures were not reported.
- Free cash flow was not reported.
- No reportable operating segments or segment revenue were disclosed.
- A tax rate was not reported.
- Percentage changes for the reported financial and operating metrics were not printed.
Written by an AI language model 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 checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. 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
MGIC Investment Corp filed a Form 8‑K reporting its third‑quarter 2026 results, including earnings, dividend, share repurchase activity, and reinsurance transactions.
Ticker impact
MGIC Investment Corp reported Q3 2026 net income of $175.0 million, or $0.85 per diluted share, a slight decline from the prior quarter.
likely modest pressure as the market prices in the lower earnings and unchanged guidance
The decline in net income and unchanged dividend suggest limited upside; investors may trim positions.
Market effects
Mortgage insurance sector may see slight valuation adjustments based on MGIC's earnings trend.
U.S. financial services market may experience modest ripple effects.
Limited global impact; primarily relevant to U.S. investors.
Counterpoint
If investors focus on the stable dividend and strong balance sheet, the stock could hold or rebound despite earnings dip.
Key entities
- companyMGIC Investment Corp
Mortgage guaranty insurance provider listed on NYSE under ticker MTG.
