Did Mgic Investment beat or miss consensus estimates last quarter?

What were the key takeaways from Mgic Investment's earnings call?

What is Mgic Investment's latest dividend and current dividend yield?

What does Mgic Investment do and what are its main business segments?

What guidance did Mgic Investment's management provide for the next earnings period?

What is the market's earnings forecast for Mgic Investment next quarter?

What factors drove the changes in Mgic Investment's revenue and profit?

What is the revenue and EPS growth rate for Mgic Investment year over year?

- **Record Capital Returns**: Returned $980 million to shareholders over the past year, reducing shares by 12%.
- **Strong Financial Performance**: Adjusted net operating income of $0.83 per share, up 7.8% year-over-year.
- **Market Leadership**: $300 billion in-force insurance, highest in industry, with 13,600 new delinquency notices (consistent with pre-pandemic levels).
- **Cost Efficiency**: Operating expenses down 8.5% year-to-date, with 2025 guidance of $195-205 million.
- **Reinsurance Optimization**: $250 million seasoned excess of loss transaction and 40% quota share for 2027 NIW, reducing PMIERs by 43%.

**【CEO Opening Remarks】**
- Reported net income of $191 million for the quarter, with book value per share increasing to $22.87, up 11% year-over-year.
- Returned $980 million to shareholders through dividends and share repurchases over the past year, reducing outstanding shares by 12%.
- Achieved a milestone of $300 billion in-force insurance, driven by $16.5 billion in new insurance written (NIW) with strong credit characteristics.
- Emphasized disciplined capital management, maintaining a debt-to-capital ratio of 14.8% and a low to mid-teens book yield on investments.

**【CFO Financial Commentary】**
- Adjusted net operating income of $0.83 per diluted share, up from $0.77 in the prior year, driven by $47 million of favorable loss reserve development.
- Operating expenses decreased 8.5% year-to-date, with full-year expectations for $195-205 million in operating expenses.
- Expanded reinsurance program with $250 million seasoned excess of loss transaction and 40% quota share for 2027 NIW, reducing PMIERs required assets by 43%.

**【Q&A Highlights】**
- **Provisions & Reserves**: Maintained 7.5% claim rate assumption for new delinquency notices, with 13,600 new notices received in Q3, consistent with pre-pandemic levels.
- **Market Competition**: Acknowledged potential new entrants but emphasized MGIC's operational scale and risk management expertise.
- **Capital Allocation**: Targeted 122% payout ratio (dividends + share buybacks), with $400 million dividend to holding company in Q3.
- **Persistency Trends**: Flat persistency despite rate cuts, with refinance volume offsetting cancellation activity.
- **Reinsurance Strategy**: Amended 2022 quota share treaties to reduce costs by 40% starting in 2026, enhancing long-term profitability.

MTG

MTG fundamentals

You can ask Aime