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MGIC Investment Corporation Reports Second Quarter 2025 Results

MGIC Investment Corporation (NYSE: MTG) has released its operational and financial outcomes for the second quarter of 2025, underlining a robust performance in a competitive sector. CEO Tim Mattke announced a net income of $192.5 million, translating to $0.81 per diluted share. This represents a commendable 15% annualized return on equity, reflecting the company’s ongoing momentum amidst market fluctuations.

One of the key highlights of this quarter was the announcement of a $212 million capital return to shareholders. This capital has been distributed through a combination of share repurchases and dividends, emphasizing MGIC's commitment to enhancing shareholder value. Notably, the common stock dividend was increased by 15%, marking a significant gesture of confidence in the company’s financial stability and growth prospects.

Financial Performance Overview

The summary of financial metrics for the second quarter is as follows:

• - Net Income: $192.5 million (compared to $185.5 million in Q1 2025)
• - Adjusted Net Operating Income: $194.0 million, or $0.82 per diluted share.
• - New Insurance Written (NIW): $16.4 billion, a significant increase from $10.2 billion in Q1 2025.
• - Net Premiums Earned: $244.3 million, consistent with previous quarters.

Capital and Liquidity

As of June 30, 2025, MGIC demonstrated a solid capital position with PMIERs available assets of $5.7 billion and an excess of $2.4 billion over minimum required assets. The company's liquidity stood at $1,046 million, further solidifying its financial standing in the industry.

During Q2, MGIC executed two traditional excess-of-loss reinsurance transactions offering up to $160 million and $184 million in coverage on eligible new insurance written for 2025 and 2026, respectively. This strategic move aims to mitigate risk while enhancing capital efficiency.

Shareholder Value and Future Plans

The company repurchased 7.1 million shares for $180.7 million during the timeframe, reiterating its focus on returning value to shareholders. Moreover, MGIC plans to continue its share repurchase program, with an additional $750 million authorized for buybacks until December 31, 2027.

As MGIC moves forward, attention will be placed on sustaining growth momentum and managing risks associated with emerging market trends. The next quarterly earnings call is scheduled for July 31, 2025, at 9:30 a.m. ET, where MGIC's management will discuss the company's performance and strategies in greater detail.

Conclusion

MGIC Investment Corporation's strong financial results in the second quarter of 2025 showcase its resilience in a fluctuating economic environment. With a focus on shareholder returns and strategic capital management, the company is positioned well for continued success and stability in the mortgage insurance landscape. Investors and stakeholders are encouraged to stay updated with MGIC's financial reports and participate in forthcoming discussions regarding the company's direction.