MGIC Investment Corp
XMUN:MGC
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MGIC Investment Corp
XMUN:MGC
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US |
MGIC Investment Corp
MGIC Investment Corp. is a private mortgage insurance company. It helps lenders make home loans to borrowers who put down less than a standard down payment by promising to cover part of the lender’s loss if the borrower defaults. Its main product is mortgage insurance written on residential mortgages in the United States. Its customers are banks, mortgage lenders, and other loan originators, while the end users are homebuyers who need financing with a smaller down payment. MGIC earns money by collecting insurance premiums on the loans it insures and by investing the premiums it receives. That makes it a specialty insurer tied closely to the housing market and to the flow of new home loans. MGIC’s role in the mortgage market is different from a bank or a traditional property insurer. It does not lend money to homeowners or insure houses themselves; it insures the lender’s credit risk on individual mortgages. This business sits between the lender and the housing market, helping loans get approved while protecting lenders from some of the downside if borrowers fail to pay.
MGIC Investment Corp. is a private mortgage insurance company. It helps lenders make home loans to borrowers who put down less than a standard down payment by promising to cover part of the lender’s loss if the borrower defaults. Its main product is mortgage insurance written on residential mortgages in the United States.
Its customers are banks, mortgage lenders, and other loan originators, while the end users are homebuyers who need financing with a smaller down payment. MGIC earns money by collecting insurance premiums on the loans it insures and by investing the premiums it receives. That makes it a specialty insurer tied closely to the housing market and to the flow of new home loans.
MGIC’s role in the mortgage market is different from a bank or a traditional property insurer. It does not lend money to homeowners or insure houses themselves; it insures the lender’s credit risk on individual mortgages. This business sits between the lender and the housing market, helping loans get approved while protecting lenders from some of the downside if borrowers fail to pay.
Results: MGIC reported net income of $182 million and an annualized return on equity of 14.5%, supported by $43 million of favorable loss reserve development.
New Insurance: New insurance written was $18 billion, up 8.5% year over year and the highest since the third quarter of 2022.
Capital Return: The board raised the quarterly common dividend to $0.17 per share, while the company said buybacks are still being sized roughly to net income rather than accelerated.
Credit: Delinquencies rose 16 basis points from a year ago to 2.37%, but management said trends remain consistent with broad-based credit normalization rather than deterioration in any one segment.
Reinsurance: MGIC added a traditional excess of loss deal that provides up to $168 million of protection on eligible 2027 new insurance written and cut PMIERs required assets by $3.1 billion, or about 52%.
Outlook: Management expects seasonally higher delinquencies in the second half, full-year operating expenses toward the low end of the $190 million to $200 million range, and continued high persistency in 2026.