MGIC Investment Corporation reported its financial results for the second quarter of 2025, revealing a net income of $192.5 million, or $0.81 per diluted share, a decrease from $204.2 million, or $0.77 per diluted share, in the same period last year. The decline in net income was primarily attributed to an increase in losses incurred, which rose to $(2.8) million compared to $(18.3) million in Q2 2024. Despite the decrease in net income, adjusted net operating income for the quarter was $194.0 million, down from $204.9 million in the prior year, reflecting a similar trend in profitability.
Total revenues for the quarter were $304.2 million, slightly down from $305.3 million in Q2 2024. Net premiums written increased by 2% to $237.4 million, while net premiums earned remained relatively stable at $244.3 million. Investment income, net of expenses, decreased marginally to $61.0 million from $61.5 million year-over-year. The company also reported net losses and gains on investments of $(1.4) million, a significant change from $(0.3) million in the previous year, indicating volatility in investment performance.
Operationally, MGIC's new insurance written (NIW) for the second quarter was $16.4 billion, up from $13.5 billion in Q2 2024, reflecting a stronger market position. The company’s risk in force (RIF) stood at $79.5 billion, with a delinquency rate of 2.21%. The annual persistency rate was reported at 84.7%, slightly down from 85.4% a year earlier. The company’s loss reserves decreased to $452.2 million from $462.7 million at the end of 2024, driven by favorable development on previously received delinquencies.
In terms of strategic developments, MGIC executed a 40% quota share reinsurance transaction covering most of its new insurance written in 2026. The company also repurchased 16.4 million shares for $405 million in the first half of 2025, with remaining authorization for share repurchases totaling $802.2 million. Looking ahead, MGIC remains compliant with the Private Mortgage Insurer Eligibility Requirements (PMIERs) and anticipates continued growth in NIW, supported by favorable market conditions and a strong capital position. The company’s available assets exceeded its minimum required assets by approximately $2.4 billion as of June 30, 2025, reinforcing its financial stability.
About MGIC INVESTMENT CORP
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