First Quarter 2026 Adjusted Net Operating Income (Non-GAAP) of $165.1 million or $0.76 per Diluted Share
MILWAUKEE, April 29, 2026 /PRNewswire/ -- MGIC Investment Corporation (NYSE:MTG) today reported operating and financial results for the first quarter of 2026.
Tim Mattke, CEO of MTG and Mortgage Guaranty Insurance Corporation ("MGIC") said, "We had a strong start to the year, successfully executing on our business strategies and generating solid first quarter results. We achieved a return on equity of 13% while continuing to return meaningful capital to our shareholders.
"We are well-positioned to navigate dynamic environments, supported by our deep industry expertise, strong balance sheet, and disciplined approach to capital allocation. Our continued focus and commitment to meet our customers' evolving needs has allowed us to drive long-term shareholder value," concluded Mattke.
SUMMARY FINANCIAL METRICS
Quarter ended
($ in millions, except where otherwise noted)
Q1 2026
Q4 2025
Q1 2025
Net income
$ 165.3
$ 169.3
$ 185.5
Net income per diluted share
$ 0.76
$ 0.75
$ 0.75
Adjusted net operating income
$ 165.1
$ 168.4
$ 185.2
Adjusted net operating income per diluted share
$ 0.76
$ 0.75
$ 0.75
New insurance written (NIW) (billions)
$ 14.4
$ 17.1
$ 10.2
Net premiums earned
$ 235.4
$ 236.0
$ 243.7
Insurance in force (billions)
$ 302.7
$ 303.1
$ 293.8
Annual persistency
84.0 %
84.8 %
84.7 %
Losses incurred, net
$ 33.2
$ 31.2
$ 9.6
Primary delinquency inventory
27,006
27,072
25,438
Primary IIF delinquency rate (count based)
2.44 %
2.43 %
2.30 %
Loss ratio
14.1 %
13.2 %
3.9 %
Underwriting expense ratio
20.5 %
19.9 %
22.5 %
In force portfolio yield (bps)
38.0
38.0
38.4
Net premium yield (bps)
31.1
31.2
33.0
Annualized return on equity
13.0 %
13.1 %
14.3 %
Book value per common share outstanding
$ 23.63
$ 23.47
$ 21.40
Adjust for AOCI
$ 0.79
$ 0.61
$ 0.98
Tangible book value per share
$ 24.41
$ 24.08
$ 22.38
CAPITAL AND LIQUIDITY
As of
($ in billions, except where otherwise noted)
March 31, 2026
December 31, 2025
March 31, 2025
PMIERs available assets
$ 5.8
$ 5.7
$ 5.9
PMIERs excess
$ 2.9
$ 2.5
$ 2.6
Holding company liquidity (millions)
$ 709
$ 1,074
$ 824
FIRST QUARTER 2026 HIGHLIGHTS
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.
We repurchased 7.2 million shares of common stock for $192.6 million.
We paid a dividend of $0.15 per common share to shareholders.
SECOND QUARTER 2026 HIGHLIGHTS
Through April 24, 2026 we repurchased an additional 1.7 million shares of our common stock for $47.4 million.
We declared a dividend of $0.15 per common share to shareholders payable on May 21, 2026, to shareholders of record at the close of business on May 6, 2026.
MGIC paid a $400 million dividend to our holding company.
Our board of directors approved a share repurchase program, authorizing us to purchase an additional $750 million of common stock prior to December 31, 2028.
Conference Call and Webcast Details
MGIC Investment Corporation will hold a conference call April 30, 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/BIeb1b95ef583c49419a8d6b744e509dce 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 May 30, 2026.
About MGIC
Mortgage Guaranty Insurance Corporation (MGIC) (www.mgic.com), the principal subsidiary of MGIC Investment Corporation, provides mortgage insurance solutions that support responsible credit risk management for mortgage lenders and investors and enable borrowers to qualify for mortgages with lower down payments. As the founder and longstanding leader of today's private mortgage insurance industry, MGIC continues to guide the industry's evolution while serving as a trusted partner to lenders across the country.
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.
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 March 31,
(In thousands, except per share data)
2026
2025
Net premiums written
$ 234,943
$ 235,346
Revenues
Net premiums earned
$ 235,363
$ 243,719
Net investment income
61,742
61,443
Net gains (losses) on investments and other financial instruments
(169)
741
Other revenue
141
331
Total revenues
297,077
306,234
Losses and expenses
Losses incurred, net
33,242
9,591
Underwriting and other expenses, net
48,108
53,063
Interest expense
8,899
8,899
Total losses and expenses
90,249
71,553
Income before tax
206,828
234,681
Provision for income taxes
41,525
49,221
Net income
$ 165,303
$ 185,460
Net income per diluted share
$ 0.76
$ 0.75
MGIC INVESTMENT CORPORATION AND SUBSIDIARIES
EARNINGS PER SHARE (UNAUDITED)
Three Months Ended March 31,
(In thousands, except per share data)
2026
2025
Net income - basic and diluted
$ 165,303
$ 185,460
Basic weighted average common shares outstanding
216,135
244,147
Dilutive effect of unvested restricted stock units
2,051
2,343
Diluted weighted average common shares outstanding
218,186
246,490
Diluted earnings per share
$ 0.76
$ 0.75
NON-GAAP RECONCILIATIONS
Reconciliation of Income before tax / Net income to Adjusted pre-tax operating income / Adjusted net operating income
Three Months Ended March 31,
2026
2025
(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
$ 206,828
$ 41,525
$ 165,303
$ 234,681
$ 49,221
$ 185,460
Adjustments:
Net realized investment (gains) losses
(200)
(42)
(158)
(319)
(67)
(252)
Adjusted pre-tax operating income / Adjusted
net operating income
$ 206,628
$ 41,483
$ 165,145
$ 234,362
$ 49,154
$ 185,208
Reconciliation of Net income per diluted share to Adjusted net operating income per diluted share
Weighted average shares - diluted
218,186
246,490
Net income per diluted share
$ 0.76
$ 0.75
Net realized investment (gains) losses
0.00
0.00
Adjusted net operating income per diluted share
$ 0.76
$ 0.75
MGIC INVESTMENT CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
March 31,
December 31,
March 31,
(In thousands, except per share data)
2026
2025
2025
ASSETS
Investments (1)
$ 5,719,421
$ 5,807,662
$ 5,901,057
Cash and cash equivalents
235,090
368,989
206,988
Restricted cash and cash equivalents
14,405
6,525
5,705
Reinsurance recoverable on loss reserves (2)
73,184
65,055
51,864
Home office and equipment, net
31,947
32,454
34,468
Deferred insurance policy acquisition costs
7,955
8,377
11,114
Deferred income taxes, net
15,494
