MGIC Investment Corporation Reports Third Quarter 2026 Results

MGIC delivers steady Q3 profits, robust capital returns, and stable insurance metrics.

What the company is saying

MGIC Investment Corporation, led by CEO Tim Mattke, presents its third quarter 2026 results as evidence of business strength and consistency, emphasizing nearly 70 years of market experience. The company highlights net income of $175.0 million ($0.85 per diluted share) and adjusted net operating income of $174.7 million ($0.85 per diluted share) as core achievements. Messaging focuses on disciplined management, ongoing capital strength, and long-term orientation. The announcement underscores active capital management through $152.5 million in Q3 share repurchases, a $0.17 per share dividend, and a further 2.5 million shares repurchased for $70.2 million in October. MGIC details reinsurance actions, including a $168 million excess-of-loss transaction for 2027 NIW, a reduction in quota share cede rate from 25% to 23.98% effective December 31, 2026, and the termination of the Home Re 2021-2, Ltd. reinsurance agreement. The company also flags new quota share agreements for 2028 and 2029 NIW and a $350 million dividend paid by MGIC to the holding company in November. The tone is confident, with a focus on financial stability, operational discipline, and proactive risk management.

What the data suggests

The reported Q3 2026 net income of $175.0 million and adjusted net operating income of $174.7 million, both at $0.85 per diluted share, indicate stable profitability. Net premiums earned were $238.5 million, nearly flat versus $238.1 million in Q2 2026 and slightly down from $241.8 million in Q3 2025, showing minimal volatility. New insurance written (NIW) reached $17.1 billion, up from $16.5 billion a year ago but down from $17.8 billion in the prior quarter, reflecting typical quarter-to-quarter movement. Insurance in force grew to $307.3 billion, and the persistency rate held at 82.5%. Losses incurred rose to $23.9 million, with a primary IIF delinquency rate of 2.52% and a loss ratio of 10.0%, both modestly higher than prior quarters. Book value per share increased to $24.06, and tangible book value per share hit $25.68. Capital and liquidity remain strong, with $5.8 billion in PMIERs available assets and $2.8 billion in PMIERs excess. The company returned capital aggressively, repurchasing 5.1 million shares for $152.5 million in Q3 and an additional 2.5 million shares for $70.2 million in October, while maintaining dividends. Reinsurance actions are forward-looking but supported by executed transactions and amended terms. The data supports a narrative of operational stability, strong capital position, and disciplined capital return.

Analysis

The announcement is a comprehensive quarterly update with a positive tone, but the language is proportionate to the realised financial and operational results. The majority of key claims are realised and supported by detailed numerical disclosures, including net income, premiums, insurance in force, and capital actions. Forward-looking statements (such as future reinsurance terms and upcoming dividend payments) are clearly identified and do not dominate the narrative. There is no evidence of exaggerated claims or narrative inflation; the company does not overstate the impact of future actions, and all major capital outlays (share repurchases, dividends) are already completed or imminent. The realised results show stable performance rather than dramatic improvement, so the true signal is weak_positive. No large capital outlay is paired with only long-dated, uncertain returns.

Risk flags

• ●Rising losses incurred and delinquency rates could signal emerging credit risk. Losses incurred increased to $23.9 million in Q3 2026, and the primary IIF delinquency rate rose to 2.52%, up from 2.37% in Q2 and 2.32% in Q3 2025, potentially reflecting macroeconomic headwinds or portfolio seasoning.
• ●Capital return pace may constrain future flexibility. The company repurchased 7.6 million shares for $222.7 million and paid out significant dividends, which, while accretive, could limit balance sheet flexibility if credit conditions deteriorate or investment opportunities arise.
• ●Forward-looking reinsurance transactions are not yet executed. While terms for 2028 and 2029 quota share reinsurance have been agreed, execution risk remains until these transactions are finalized and coverage is in force.
• ●Persistency rate is declining modestly. Annual persistency dropped to 82.5% from 85.0% a year ago, which could pressure future premium revenue if the trend continues.
• ●Expense ratios and yield metrics are stable but offer limited margin for error. The underwriting expense ratio is 19.1%, and net premium yield is 31.2 basis points, leaving little room for cost inflation or adverse claims trends without impacting profitability.

Bottom line

MGIC's Q3 2026 results confirm a steady, profitable business with robust capital returns and strong liquidity. The company continues to manage risk through reinsurance, active share repurchases, and consistent dividends, all backed by detailed financial disclosures. While credit losses and delinquency rates are ticking up, these remain within manageable ranges and do not yet threaten the company's stability. The forward-looking reinsurance actions and capital management plans are credible, with most benefits expected in the near term. Investors should focus on credit quality trends, persistency rates, and the execution of new reinsurance agreements as key variables for future performance. The main takeaway is that MGIC is delivering stable results and returning capital, but vigilance is warranted as credit and persistency metrics evolve.

Announcement summary

(NYSE: MTG) MGIC Investment Corporation reported third quarter 2026 net income of $175.0 million, or $0.85 per diluted share. Adjusted net operating income for the quarter was $174.7 million, also $0.85 per diluted share. Net premiums earned in Q3 2026 were $238.5 million, compared to $238.1 million in Q2 2026 and $241.8 million in Q3 2025. New insurance written (NIW) for the quarter totaled $17.1 billion, up from $16.5 billion in Q3 2025 but down from $17.8 billion in Q2 2026. Insurance in force at September 30, 2026, was $307.3 billion. The annual persistency rate was 82.5% for Q3 2026. Losses incurred, net, were $23.9 million, with a primary IIF delinquency rate of 2.52%. The loss ratio for the quarter was 10.0%, and the underwriting expense ratio was 19.1%. Book value per common share outstanding was $24.06, and tangible book value per share was $25.68. As of September 30, 2026, PMIERs available assets were $5.8 billion, with PMIERs excess at $2.8 billion. The company repurchased 5.1 million shares of common stock for $152.5 million in Q3 2026 and paid a dividend of $0.17 per common share. MGIC executed a traditional excess-of-loss reinsurance transaction providing up to $168 million of reinsurance coverage on eligible NIW in 2027 and amended the cede rate on its 2023 quota share reinsurance transaction from 25% to 23.98%, effective December 31, 2026. The company exercised its option to terminate the reinsurance agreement with Home Re 2021-2, Ltd., resulting in full redemption of the insurance-linked notes. For Q4 2026, MGIC agreed to terms for a 40% quota share reinsurance transaction covering eligible 2028 NIW and a 20% quota share reinsurance transaction covering eligible 2029 NIW with unaffiliated reinsurers. A dividend of $0.17 per common share was declared, payable November 23, 2026, to shareholders of record at the close of business on November 12, 2026. In October, MGIC repurchased an additional 2.5 million shares for $70.2 million, and in November, MGIC paid a $350 million dividend to the holding company. For the nine months ended September 30, 2026, net income was $522.4 million, or $2.47 per diluted share. Net premiums written for Q3 2026 were $235.3 million, and net investment income was $60.9 million. Total assets as of September 30, 2026, were $6,370,383,000, with shareholders' equity at $4,847,324,000. The average loan size of insurance in force was $279,000, and the total number of loans was 1,101,569. Primary risk in force was $82.5 billion. The company will hold a conference call on November 5, 2026, at 10:00 a.m. ET to discuss these results.

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