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MGIC Investment Corporation First Quarter 2025 Financial Results

On April 30, 2025, MGIC Investment Corporation (NYSE: MTG) reported its financial performance for the first quarter of 2025. The results showed a strong net income of $185.5 million, equivalent to $0.75 per diluted share. The performance reflects the company's consistent progress over recent years, which continues to be characterized by significant market leadership, solid capital position, and strong liquidity.

Overview of Financial Metrics

The company's adjusted net operating income stood at $185.2 million for Q1 2025, also amounting to $0.75 per diluted share. In comparison to previous quarters, the results are indicative of a positive trend in MGIC's operations.

• - Q1 2025 vs. Q4 2024: Net income increased from $184.7 million.
• - Year-over-Year Comparison: The current quarter's net income also shows an increase from $174.1 million reported in Q1 2024, illustrating MGIC's steady growth amidst various challenges.

Key Metrics Summary

• - Net premiums earned: $243.7 million
• - Primary delinquency inventory: 25,438 loans
• - Annual persistency: 84.7%
• - Insurance in force: $293.8 billion covering 1.1 million mortgages

Strategic Direction and Management Commentary

MGIC's CEO, Tim Mattke, expressed confidence in the company's performance despite growing macroeconomic and geopolitical concerns. According to Mattke, "Our robust capital and liquidity place us in an ideal position to continue our growth trajectory while providing high-quality mortgage insurance products to our customers. We are dedicated to delivering sustainable, long-term value to all stakeholders."

The company executed a traditional reinsurance transaction effective from March 1, 2025, providing coverage of $250.6 million on new insurance written from 2020. MGIC also repurchased 9.2 million shares at a cost of $224.3 million during this quarter, reflecting its commitment to enhancing shareholder value.

Dividend Payments and Repurchase Program

To further solidify its strategy of rewarding shareholders, MGIC declared a dividend of $0.13 per common share, also paid in Q1 2025. Furthermore, an additional $750 million share repurchase program was authorized to enhance shareholder returns.

Additionally, reflecting a commitment to return capital to shareholders, MGIC consistently distributed dividends and indicated plans for future share repurchases as announced on April 25, 2025, with 2.8 million additional shares repurchased for approximately $65.8 million.

Economic Challenges Ahead

Despite a solid financial outcome, the company acknowledges ongoing economic uncertainties such as inflationary pressures and potential volatility in financial markets. However, MGIC remains focused on adapting its strategies in response to these challenges. Mattke stated, "Our talented team is built to navigate the evolving landscape, ensuring we remain a strong and viable partner within the mortgage insurance sector."

Upcoming Conference Call

MGIC is scheduled to hold a conference call on May 1, 2025, at 10 a.m. ET to discuss the quarterly results. This will provide an opportunity for analysts and investors to hear directly from management about future strategies and operational goals.

In summary, MGIC Investment Corporation's Q1 2025 results display a robust financial performance alongside a proactive approach towards shareholder returns amid a complex economic landscape. The company's resilience and commitment to growth ensure that MGIC remains well-positioned for the future.