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- **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.

MGIC Investment Corporation (MTG) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

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Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

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Other Comprehensive Income

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Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

MTG

MTG fundamentals

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