Contradictions Unveiled: Analyzing Dividend Strategies, Home Prices, and Cost Management in Recent Earnings Calls

Strong Financial Performance and Capital Return:
- MGIC Investment Corporation recorded net income of $193 million and an annualized return on equity of 15% for the second quarter of 2025.
- This performance was driven by disciplined risk management, strong underwriting standards, and a commitment to long-term value creation.

Capital Management and Dividend Increase:
- The company allocated excess capital to share repurchases totaling 7.1 million shares for $181 million and paid a quarterly common stock dividend of $0.13 per share, totaling $31 million.
- The Board approved a 15% increase to the quarterly common stock dividend, marking 5 consecutive years of dividend increases, due to strong financial positions and ongoing capital return.

Credit Performance and Delinquency Trends:
- The account-based delinquency rate decreased by 9 basis points to 2.21%, consistent with seasonal trends.
- Favorable loss reserve development of $54 million was attributed to higher-than-expected cure rates on recent delinquency notices.

Persistency and Insurance in Force:
- Insurance in force ended the quarter at $297 billion, with an annual persistency rate of 85%.
- The relatively flat insurance in force and persistency levels were in line with expectations, reflecting a disciplined approach to the market and cautious growth strategy.

Operating Expenses and Pension Plan Impact:
- Operating expenses were $52 million, down from $55 million in the same period last year.
- A $4 million accounting charge related to lump sum settlements from the frozen pension plan was included in operating expenses, impacting full-year guidance.