MGIC Investment Corporation reported its financial results for the third quarter of 2025, revealing a net income of $191.1 million, or $0.83 per diluted share, compared to $200.0 million, or $0.77 per diluted share, in the same period last year. The slight decrease in net income was attributed to an increase in losses incurred, which rose to $10.9 million from a negative $9.8 million in Q3 2024. Despite this, the company maintained a stable revenue stream, with net premiums earned totaling $241.8 million, a marginal decline from $243.3 million in the prior year. Investment income remained consistent at $62.2 million, reflecting the company's focus on maintaining a robust investment portfolio.

In terms of operational metrics, MGIC's new insurance written (NIW) for the third quarter was $16.5 billion, down from $17.2 billion in Q3 2024. However, for the nine months ended September 30, 2025, NIW increased to $43.1 billion from $39.8 billion year-over-year. The company reported a total primary insurance in force (IIF) of $300.8 billion, with a risk in force (RIF) of $80.6 billion. The annual persistency rate was reported at 85.0%, slightly down from 85.3% a year earlier, indicating a stable retention of policies despite market fluctuations.

MGIC's balance sheet showed total assets of $6.63 billion as of September 30, 2025, a slight increase from $6.55 billion at the end of 2024. The company’s loss reserves decreased to $452.2 million from $462.7 million, reflecting favorable developments in previously reported delinquencies. The reinsurance recoverable on loss reserves increased to $57.6 million, indicating a strategic use of reinsurance to manage risk exposure effectively. The company also reported a significant increase in federal tax credits payable, which rose to $139.6 million, reflecting ongoing tax strategies.

Looking ahead, MGIC remains compliant with the Private Mortgage Insurer Eligibility Requirements (PMIERs) and anticipates continued growth in its NIW, driven by favorable market conditions and strategic initiatives. The company has executed new quota share reinsurance transactions for 2026 and 2027, which are expected to enhance its capital position and support future growth. The management expressed confidence in maintaining its competitive edge in the mortgage insurance market, despite potential challenges from economic fluctuations and regulatory changes.

About MGIC INVESTMENT CORP

MGIC Investment Corporation is a leading provider of private mortgage insurance and credit risk management solutions. It insures residential loans, primarily on low down payment, high-LTV mortgages, supporting homebuyers and lenders in the U.S. The company offers primary and pool insurance, leveraging risk-based pricing, reinsurance, and strong capital management to maintain financial strength and competitive advantage in the housing finance market.

This description was generated via AI from an annual report. Updated 8 months ago.

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