MGIC Investment Corp Reports Stable Q2 2025 Earnings, Net Income Down Slightly

MGIC Investment Corp reported Q2 2025 earnings with net income of $192.5 million, slightly down from $204.2 million last year. Total revenues were $304.2 million, with net premiums earned at $244.3 million. Earnings per share increased to $0.81, and comprehensive income was $224 million. The company maintains a strong focus on mortgage insurance and risk management.

MGIC Investment Corp (MTG) has reported its Q2 2025 earnings, with net income of $193 million, slightly down from $204.2 million in the same period last year. Total revenues for the quarter were $304.2 million, with net premiums earned at $244.3 million. Earnings per share (EPS) increased to $0.81, and comprehensive income was $224 million. The company continues to maintain a strong focus on mortgage insurance and risk management.

The company's disciplined risk management and strong underwriting standards have resulted in a high-quality insurance portfolio. Net income per diluted share was $0.81, compared to $0.77 last year, while adjusted net operating income per diluted share was $0.82, also up from $0.77 last year. The book value per share increased to $22.11, a 13% year-over-year increase.

Despite the slight decline in net income, the company's capital management strategy remains robust. The debt-to-capital ratio is in the low to mid-teens, and there is a healthy liquidity buffer. The company also increased its quarterly common stock dividend by 15%, marking five consecutive years of dividend increases with a compound annual growth rate of 20%.

However, market conditions have limited the growth of insurance in force, a trend expected to persist through the remainder of the year. The delinquency rate increased by 12 basis points compared to a year ago, although it remains low by historical standards. The company anticipates an increase in new delinquency notices and the delinquency rate in the second half of the year due to seasonality and aging of recent book year vintages.

Investment income remained relatively flat, with the book yield on the portfolio at 4%, limiting growth due to a decline in shorter-term interest rates. Operating expenses included a $4 million accounting charge related to lump sum settlements from the pension plan, which may continue to impact future expenses.

During the earnings call, Nathan Colson, Executive Vice President, CFO, and Chief Risk Officer, explained that the company prioritizes growth over capital return. He noted that while there is a natural governor due to the contingency reserve balance, the company prefers a long-term approach. The elevated payout ratio is a way to slowly draw down excess capital while monitoring market conditions.

Timothy Mattke, CEO, highlighted the impact of the One Big Beautiful Bill Act on the company's operations. The Act restores and makes permanent the tax deduction of MI premiums, providing meaningful tax relief to homeowners and supporting MGIC's mission of helping low down payment borrowers achieve homeownership.

References:
[1] https://finance.yahoo.com/news/mgic-investment-corp-mtg-q2-072320238.html
[2] https://www.gurufocus.com/news/3025954/mgic-investment-corp-mtg-q2-2025-earnings-call-highlights-strong-financial-performance-amid-market-challenges