MGIC Investment Corp. Reports Mixed Results in Q2 2026

In Q2 2026, MGIC reported a net income of $182.1 million, a decrease from $192.4 million in Q2 2025. This decline is attributed to an increase in losses incurred alongside a decrease in net premiums earned. Despite the drop in net income, diluted income per share improved due to a reduction in the number of diluted weighted shares outstanding.

MGIC reported New Insurance Written (NIW) of $17.8 billion in the second quarter of 2026, up from $16.4 billion in Q2 2025. For the first half of 2026, NIW totaled $32.2 billion, compared to $26.6 billion in the same period of 2025. This increase reflects a larger expected purchase origination market, although the company anticipates that full-year 2026 NIW will remain relatively flat compared to 2025.

Losses incurred during the first half of 2026 showed an upward trend, primarily driven by new delinquencies and increased estimated severity on current delinquencies. However, MGIC noted favorable developments with a decrease in the expected claim rate on previously received delinquencies, benefitting from home price appreciation that allowed some borrowers to cure their delinquencies.

Underwriting and other expenses decreased in the first half of 2026 compared to 2025, mainly due to lower outside service expenses and a reduction in employee costs. This led to an improvement in the underwriting expense ratio, a positive sign for operational efficiency.

As of June 30, 2026, MGIC's holding company had $650 million in debt obligations. The company repurchased 13.8 million shares for $369.2 million during the first half of the year, showcasing its commitment to returning capital to shareholders. Additionally, dividends paid to shareholders were $0.15 per share for the first two quarters, with a subsequent declaration of $0.17 per share for Q3.

MGIC's balance sheet reflects total assets of $6.52 billion, slightly down from $6.54 billion a year earlier. The company's equity stood at $5.01 billion, a decrease from $5.15 billion in the previous year.

MGIC reported a net change in cash of -$34.39 million for Q2 2026, a contrast to a positive cash change of $86.20 million in Q2 2025. The negative cash flow was primarily driven by financing activities, including share repurchases and dividend payments.

MGIC operates under the PMIERs (Private Mortgage Insurers Eligibility Requirements) set forth by government-sponsored enterprises (GSEs). As of June 30, 2026, MGIC's available assets totaled $5.6 billion, exceeding the required minimum by $2.7 billion. This compliance is vital for the company's ability to insure loans, especially in light of ongoing discussions regarding GSE reforms and credit score modernization efforts initiated by the Federal Housing Finance Agency (FHFA).

MGIC Investment Corporation's Q2 2026 results highlight a mixed financial performance amidst a challenging market environment. As the company continues to focus on compliance with regulatory requirements and enhancing operational efficiency, its strategic initiatives in underwriting and risk management will be crucial in navigating future uncertainties. The ongoing commitment to shareholder returns through dividends and share repurchases also underscores MGIC's proactive approach in enhancing value for its investors.

The outlook for MGIC remains cautious, but the company is well-positioned to adapt to the evolving landscape of the mortgage insurance market.