Fourth Quarter 2025 Adjusted Net Operating Income (Non-GAAP) of $168.4 million or $0.75 per Diluted Share
Full Year 2025 Net Income of $738.3 million or $3.14 per Diluted Share
Full Year 2025 Adjusted Net Operating Income (Non-GAAP) of $738.4 million or $3.14 per Diluted Share
MILWAUKEE, Feb. 2, 2026 /PRNewswire/ -- MGIC Investment Corporation (NYSE:MTG) today reported operating and financial results for the fourth quarter of 2025.
Tim Mattke, CEO of MTG and Mortgage Guaranty Insurance Corporation ("MGIC") said, "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. We continued to strengthen and add flexibility to our balance sheet, while at the same time returning a significant amount of capital to shareholders totaling $915 million during the year.
"Grounded in decades of experience across market cycles, we are further strengthened by our disciplined risk management and financial stability. We are proud of the critical role we play in helping low-down payment borrowers achieve the American dream of homeownership sooner and protecting taxpayers from mortgage credit risk," concluded Mattke.
SUMMARY FINANCIAL METRICS
Quarter ended
($ in millions, except where otherwise noted)
Q4 2025
Q3 2025
Q4 2024
Net income
$ 169.3
$ 191.1
$ 184.7
Net income per diluted share
$ 0.75
$ 0.83
$ 0.72
Adjusted net operating income
$ 168.4
$ 190.8
$ 184.5
Adjusted net operating income per diluted share
$ 0.75
$ 0.83
$ 0.72
New insurance written (NIW) (billions)
$ 17.1
$ 16.5
$ 15.9
Net premiums earned
$ 236.0
$ 241.8
$ 241.3
Insurance in force (billions)
$ 303.1
$ 300.8
$ 295.4
Annual persistency
84.8 %
85.0 %
84.8 %
Losses incurred, net
$ 31.2
$ 10.9
$ 8.7
Primary delinquency inventory
27,072
25,747
26,791
Primary IIF delinquency rate (count based)
2.43 %
2.32 %
2.40 %
Loss ratio
13.2 %
4.5 %
3.6 %
Underwriting expense ratio
19.9 %
21.1 %
20.8 %
In force portfolio yield (bps)
38.0
38.3
38.6
Net premium yield (bps)
31.2
32.3
32.9
Annualized return on equity
13.1 %
14.8 %
14.0 %
Book value per common share outstanding
$ 23.47
$ 22.87
$ 20.82
Adjust for AOCI
$ 0.61
$ 0.71
$ 1.16
Tangible book value per share
$ 24.08
$ 23.58
$ 21.98
CAPITAL AND LIQUIDITY
As of
($ in billions, except where otherwise noted)
December 31, 2025
September 30, 2025
December 31, 2024
PMIERs available assets
$ 5.7
$ 5.9
$ 5.8
PMIERs excess
$ 2.5
$ 2.5
$ 2.2
Holding company liquidity (millions)
$ 1,074
$ 858
$ 1,076
FOURTH QUARTER 2025 HIGHLIGHTS
Martin (Marty) P. Klein and Daniela A. O'Leary-Gill were appointed to the Board of Directors of MGIC Investment Corporation and its principal subsidiary, MGIC.
MGIC paid a dividend of $400 million to the holding company.
We repurchased 6.8 million shares of common stock for $189.1 million.
We paid a dividend of $0.15 per common share to shareholders.
We executed a traditional excess of loss reinsurance transaction effective December 1, 2025, which provides $250 million of reinsurance coverage on NIW from 2021.
We executed a 40% quota share reinsurance transaction with a group of unaffiliated reinsurers covering eligible NIW in 2027.
On October 27th S&P revised its outlook to positive from stable on MGIC Investment Corporation and its core operating subsidiaries, including MGIC.
FIRST QUARTER 2026 HIGHLIGHTS
In January, through an insurance linked note transaction, we executed a $324 million excess of loss reinsurance agreement that covers certain policies written between January 1, 2022 and March 31, 2025.
In January we repurchased an additional 2.7 million shares of our common stock for $73.2 million.
We declared a dividend of $0.15 per common share to shareholders payable on March 6, 2026, to shareholders of record at the close of business on February 17, 2026.
Conference Call and Webcast Details
MGIC Investment Corporation will hold a conference call February 3, 2026, at 10:00 a.m. ET to allow securities analysts and shareholders the opportunity to hear management discuss the company's quarterly results. Individuals interested in joining by telephone should register for the call at https://register-conf.media-server.com/register/BI8ca568b2a2fb4358aa00824b68076bd3 to receive the dial-in number and unique PIN to access the call. It is recommended that you join the call at least 10 minutes before the conference call begins. The call is also being webcast and can be accessed at the company's website at http://mtg.mgic.com/ under "Newsroom." A replay of the webcast will be available on the company's website through March 3, 2026.
About MGIC
Mortgage Guaranty Insurance Corporation (MGIC) (www.mgic.com), the principal subsidiary of MGIC Investment Corporation, serves lenders throughout the United States, helping families achieve homeownership sooner by making affordable low-down-payment mortgages a reality through the use of private mortgage insurance. At December 31, 2025, MGIC had $303.1 billion of primary insurance in force covering 1.1 million mortgages.
This press release, which includes certain additional statistical and other information, including non-GAAP financial information and a supplement that contains various portfolio statistics, are all available on the Company's website at https://mtg.mgic.com/ under "Newsroom."
From time to time MGIC Investment Corporation releases important information via postings on its corporate website, and via postings on MGIC's website for information related to underwriting and pricing, and intends to continue to do so in the future. Such postings include corrections of previous disclosures and may be made without any other disclosure. Investors and other interested parties are encouraged to enroll to receive automatic email alerts and Really Simple Syndication (RSS) feeds regarding new postings. Enrollment information for MGIC Investment Corporation alerts can be found at https://mtg.mgic.com/shareholder-services/email-alerts. For information about our underwriting and rates, see https://www.mgic.com/underwriting.
Safe Harbor Statement
Forward Looking Statements and Risk Factors:
Our actual results could be affected by the risk factors below. These risk factors should be reviewed in connection with this press release and our periodic reports to the Securities and Exchange Commission ("SEC"). These risk factors may also cause actual results to differ materially from the results contemplated by forward looking statements that we may make. Forward looking statements consist of statements which relate to matters other than historical fact, including matters that inherently refer to future events. Among others, statements that include words such as "believe," "anticipate," "will" or "expect," or words of similar import, are forward looking statements. We are not undertaking any obligation to update any forward looking statements or other statements we may make even though these statements may be affected by events or circumstances occurring after the forward looking statements or other statements were made. No investor should rely on the fact that such statements are current at any time other than the time at which this press release was delivered for dissemination to the public.
While we communicate with security analysts from time to time, it is against our policy to disclose to them any material non-public information or other confidential information. Accordingly, investors should not assume that we agree with any statement or report issued by any analyst irrespective of the content of the statement or report, and such reports are not our responsibility.
Use of Non-GAAP financial measures
We believe that use of the Non-GAAP financial measures of adjusted pre-tax operating income (loss), adjusted net operating income (loss) and adjusted net operating income (loss) per diluted share facilitate the evaluation of the company's core financial performance thereby providing relevant information to investors. These measures are not recognized in accordance with accounting principles generally accepted in the United States of America (GAAP) and should not be viewed as alternatives to GAAP measures of performance.
Adjusted pre-tax operating income (loss) is defined as GAAP income (loss) before tax, excluding the effects of net realized investment gains (losses), gain and losses on debt extinguishment and infrequent or unusual non-operating items where applicable.
Adjusted net operating income (loss) is defined as GAAP net income (loss) excluding the after-tax effects of net realized investment gains (losses), gain and losses on debt extinguishment and infrequent or unusual non-operating items where applicable. The amounts of adjustments to components of pre-tax operating income (loss) are tax effected using a federal statutory tax rate of 21%.
Adjusted net operating income (loss) per diluted share is calculated in a manner consistent with the accounting standard regarding earnings per share by dividing (i) adjusted net operating income (loss) by (ii) diluted weighted average common shares outstanding, which reflects share dilution from unvested restricted stock units.
Although adjusted pre-tax operating income (loss) and adjusted net operating income (loss) exclude certain items that have occurred in the past and are expected to occur in the future, the excluded items represent items that are: (1) not viewed as part of the operating performance of our primary activities; or (2) impacted by both discretionary and other economic or regulatory factors and are not necessarily indicative of operating trends, or both. These adjustments, along with the reasons for their treatment, are described below. Trends in the profitability of our fundamental operating activities can be more clearly identified without the fluctuations of these adjustments. Other companies may calculate these measures differently. Therefore, their measures may not be comparable to those used by us.
(1)
Net realized investment gains (losses). The recognition of net realized investment gains or losses can vary significantly across periods as the timing of individual securities sales is highly discretionary and is influenced by such factors as market opportunities, our tax and capital profile, and overall market cycles.
(2)
Gains and losses on debt extinguishment. Gains and losses on debt extinguishment result from discretionary activities that are undertaken to enhance our capital position, and/or improve our debt profile.
(3)
Infrequent or unusual non-operating items. Items that are non-recurring in nature and are not part of our primary operating activities.
MGIC INVESTMENT CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Three Months Ended December 31,
Twelve Months Ended December 31,
(In thousands, except per share data)
2025
2024
2025
2024
Net premiums written
$ 230,520
$ 232,104
$ 938,478
$ 933,388
Revenues
Net premiums earned
$ 236,021
$ 241,295
$ 965,812
$ 970,807
Net investment income
61,610
61,324
246,258
244,640
Net gains (losses) on investments and other financial instruments
857
(1,644)
334
(9,846)
Other revenue
164
469
1,232
2,130
Total revenues
298,652
301,444
1,213,636
1,207,731
Losses and expenses
Losses incurred, net
31,219
8,698
48,903
(14,861)
Underwriting and other expenses, net
45,828
49,139
200,593
218,281
Interest expense
8,899
8,899
35,603
35,602
Total losses and expenses
85,946
66,736
285,099
239,022
Income before tax
212,706
234,708
928,537
968,709
Provision for income taxes
43,396
50,008
190,190
205,715
Net income
$ 169,310
$ 184,700
$ 738,347
$ 762,994
Net income per diluted share
$ 0.75
$ 0.72
$ 3.14
$ 2.89
MGIC INVESTMENT CORPORATION AND SUBSIDIARIES
EARNINGS PER SHARE (UNAUDITED)
Three Months Ended December 31,
Twelve Months Ended December 31,
(In thousands, except per share data)
2025
2024
2025
2024
Net income - basic and diluted
$ 169,310
$ 184,700
$ 738,347
$ 762,994
Basic weighted average common shares outstanding
222,391
252,644
232,975
261,684
Dilutive effect of unvested restricted stock units
2,448
2,658
2,124
2,311
Diluted weighted average common shares outstanding
224,839
255,302
235,099
263,995
Diluted earnings per share
$ 0.75
$ 0.72
$ 3.14
$ 2.89
NON-GAAP RECONCILIATIONS
Reconciliation of Income before tax / Net income to Adjusted pre-tax operating income / Adjusted net operating income
Three Months Ended December 31,
2025
2024
(In thousands, except per share amounts)
Pre-tax
Tax Effect
Net
(after-tax)
Pre-tax
Tax Effect
Net
(after-tax)
Income before tax / Net income
$ 212,706
$ 43,396
$ 169,310
$ 234,708
$ 50,008
$ 184,700
Adjustments:
Net realized investment (gains) losses
(1,159)
(243)
(916)
(254)
(53)
(201)
Adjusted pre-tax operating income / Adjusted
net operating income
$ 211,547
$ 43,153
$ 168,394
$ 234,454
$ 49,955
$ 184,499
Reconciliation of Net income per diluted share to Adjusted net operating income per diluted share
Weighted average shares - diluted
224,839
255,302
Net income per diluted share
$ 0.75
$ 0.72
Net realized investment (gains) losses
0.00
0.00
Adjusted net operating income per diluted share
$ 0.75
$ 0.72
Reconciliation of Income before tax / Net income to Adjusted pre-tax operating income / Adjusted net operating income
Twelve Months Ended December 31,
2025
2024
(In thousands, except per share amounts)
Pre-tax
Tax Effect
Net(after-tax)
Pre-tax
Tax Effect
Net(after-tax)
Income before tax / Net income
$ 928,537
$ 190,190
$ 738,347
$ 968,709
$ 205,715
$ 762,994
Adjustments:
Net realized investment (gains) losses
75
16
59
6,914
1,452
5,462
Adjusted pre-tax operating income / Adjustednet operating income
$ 928,612
$ 190,206
$ 738,406
$ 975,623
$ 207,167
$ 768,456
Reconciliation of Net income per diluted share to Adjusted net operating income per diluted share
Weighted average shares - diluted
235,099
263,995
Net income per diluted share
$ 3.14
$ 2.89
Net realized investment (gains) losses
0.00
0.02
Adjusted net operating income per diluted share
$ 3.14
$ 2.91
MGIC INVESTMENT CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
December 31,
December 31,
December 31,
(In thousands, except per share data)
2025
2024
2023
ASSETS
Investments (1)
$ 5,807,662
$ 5,867,560
$ 5,738,734
Cash and cash equivalents
368,989
229,485
363,666
Restricted cash and cash equivalents
6,525
5,142
6,978
Reinsurance recoverable on loss reserves (2)
65,055
47,281
33,302
Home office and equipment, net
32,454
35,679
38,755
Deferred insurance policy acquisition costs
8,377
11,694
14,591
Deferred income taxes, net
18,512
69,875
79,782
Other assets
331,912
280,519
262,572
Total assets
$ 6,639,486
$ 6,547,235
$ 6,538,380
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Loss reserves (2)
$ 474,884
$ 462,662
$ 505,379
Unearned premiums
93,026
120,360
157,779
Senior notes
646,138
644,667
643,196
Other liabilities
277,887
147,171
160,009
Total liabilities
1,491,935
1,374,860
1,466,363
Shareholders' equity
5,147,551
5,172,375
5,072,017
Total liabilities and shareholders' equity
$ 6,639,486
$ 6,547,235
$ 6,538,380
Book value per share (3)
$ 23.47
$ 20.82
$ 18.61
(1) Investments include net unrealized gains (losses) on securities
$ (152,767)
$ (326,428)
$ (337,909)
(2) Loss reserves, net of reinsurance recoverable on loss reserves
$ 409,829
$ 415,381
$ 472,077
(3) Shares outstanding
219,367
248,449
272,494
MGIC INVESTMENT CORPORATION AND SUBSIDIARIES
ADDITIONAL INFORMATION - NEW INSURANCE WRITTEN
2025
2024
Year-to-date
Q4
Q3
Q2
Q1
Q4
2025
2024
New primary insurance written (NIW) (billions)
$ 17.1
$ 16.5
$ 16.4
$ 10.2
$ 15.9
$ 60.2
$ 55.7
Monthly (including split premium plans) and
annual premium plans
16.6
16.1
16.0
9.9
15.5
58.6
54.3
Single premium plans
0.5
0.4
0.4
0.3
0.4
1.6
1.4
