MGIC Investment Corp. reported third‑quarter 2025 financial results, posting net income of $191.1 million, or $0.83 per diluted share, a 4.5% decline from the $200.0 million and $0.77 EPS reported in Q3 2024 and a slight drop from the $192.5 million and $0.81 EPS of the second quarter. The company beat consensus estimates by 12.2 %.
Net premiums earned fell to $241.8 million from $244.3 million in Q2 and were 1.2% lower than the $244.9 million earned in Q3 2024. New insurance written increased to $16.5 billion, up 0.6% from $16.4 billion in Q2 and 0.8% from $16.2 billion in Q3 2024. Losses incurred, net rose to $10.9 million, up from a $2.8 million loss in Q2 and 45 % higher than the $7.5 million loss recorded in Q3 2024, driven by higher delinquency costs and a 2.32 % primary delinquency inventory rate.
Revenue for the quarter was $304.5 million, slightly below analyst consensus of $308.2 million. Net premium yield remained steady at 32.3 bps and the in‑force portfolio yield held at 38.3 bps.
MGIC maintained a strong capital position, with PMIERs available assets of $5.9 billion, $2.5 billion above the minimum required, and a risk‑to‑capital ratio of 9.8x. Holding‑company liquidity stood at $858 million, supporting ongoing share repurchases and a dividend of $0.15 per common share.
Management highlighted that the modest decline in net income and premiums was largely due to increased delinquency costs and a shift toward newer policies, which are expected to moderate profitability in the near term. The company also noted that its reinsurance strategy, including an amendment to the 2022 quota‑share transaction, has helped optimize capital.
MGIC repurchased 7.0 million shares for $187.9 million in Q3 2025 and appointed Martin P. Klein and Daniela A. O'Leary‑Gill to its board of directors.
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