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MGIC Investment Corporation's Fourth Quarter 2025 Results

MGIC Investment Corporation (NYSE: MTG) announced their results for the fourth quarter of 2025 on February 2, 2026, showcasing impressive financial performance and strategic initiatives that bolster their position in the mortgage insurance industry.

Financial Highlights

During the fourth quarter of 2025, MGIC reported a net income of $169.3 million, translating to $0.75 per diluted share. This performance, although slightly lower compared to the previous quarter ($191.1 million), reflects a solid outcome amid fluctuating market conditions. Additionally, the company achieved an adjusted net operating income of $168.4 million, consistent with the previous quarterly performance. Following a productive year, MGIC's total net income for 2025 reached $738.3 million, equating to $3.14 per diluted share.

CEO Tim Mattke expressed confidence stating, "We closed 2025 on a strong note, once again delivering solid financial results and ending the year with more than $303 billion of insurance in-force". MGIC aims to continue strengthening their balance sheet and returning capital to shareholders. In 2025, the total capital returned to shareholders was approximately $915 million. This included dividends and stock repurchases, reflecting the company’s commitment to enhancing shareholder value.

Operational Metrics

MGIC also reported several operational highlights, including:

• - New Insurance Written (NIW) of $17.1 billion, up from previous quarters in 2025.
• - Insurance in Force now stands at $303.1 billion with a primary delinquency inventory recorded at 27,072.
• - The loss ratio reflected a significant increase from 4.5% in the previous quarter to 13.2%, likely due to adjusting market conditions and an increase in incurred losses.

The underwriting expense ratio showed improvement at 19.9%, highlighting management's efficiency in controlling costs relative to premium earnings.

Shareholder Returns and Market Position

During the fourth quarter, MGIC further solidified its market standing by declaring a dividend of $0.15 per common share, exceeding shareholder expectations in an inflationary environment. Furthermore, the company repurchased 6.8 million shares of common stock, signaling confidence in their long-term strategy.

The current stock performance reflects positive sentiment, particularly following a recent rating upgrade by a key credit agency, indicating improved market perception of MGIC’s financial health and future prospects.

Challenges and Future Outlook

However, challenges remain. Increased claims sectors, driven by macroeconomic pressures and evolving regulatory landscapes, may influence earnings volatility. Importantly, the company's risk management practices have prepared them to navigate these market dynamics effectively.

As MGIC moves forward, strategies will focus not only on organic growth through insurance underwriting but also on maintaining robust collateralized reinsurance structures to counteract potential losses.

Looking Ahead

MGIC is scheduled for a conference call on February 3, 2026, where executives will discuss these results in depth. The firm plans to provide insights into its strategic focus areas, anticipated market developments, and proactive measures undertaken amidst a competitive landscape.

In conclusion, MGIC Investment Corporation's solid fourth-quarter performance reaffirms its position as a leader in the mortgage insurance sector, driven by a commitment to shareholder returns and strategic growth initiatives. As market pressures evolve, the company's adaptive strategies are expected to sustain its competitive edge while assisting low-down payment borrowers in achieving homeownership.

For further details, please visit MGIC's official website.