MGIC Investment Corporation — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net income for the quarter ended September 30, 2026, was $175.0 million ($0.85 per diluted share), compared to $191.1 million ($0.83 per diluted share) in the same period in 2025.
• Adjusted net operating income (Non-GAAP) was $174.7 million ($0.85 per diluted share), compared to $190.8 million ($0.83 per diluted share) in Q3 2025.
• Net premiums earned were $238.5 million for the quarter, down from $241.8 million in Q3 2025.
• Losses incurred, net, increased to $23.9 million in Q3 2026 from $10.9 million in Q3 2025.
• The loss ratio was 10.0% in Q3 2026, compared to 4.5% in Q3 2025.
• Underwriting expense ratio was 19.1% in Q3 2026, down from 21.1% in Q3 2025.
• Annual persistency was 82.5% in Q3 2026, compared to 85.0% in Q3 2025.
• Book value per common share was $24.06 as of September 30, 2026, compared to $22.87 in Q3 2025.
• Tangible book value per share was $25.68 as of September 30, 2026, compared to $23.58 in Q3 2025.
• Annualized return on equity was 14.2% in Q3 2026, compared to 14.8% in Q3 2025.
• Primary delinquency inventory count-based rate was 2.52% as of September 30, 2026, up from 2.32% in Q3 2025.
• Net investment income was $60.9 million for the quarter, compared to $62.2 million in Q3 2025.

Guidance and Future Outlook:

• The press release does not provide specific forward guidance for future revenue, earnings, or growth rates.
• Management stated a focus on maintaining financial strength and managing the business for the long term.

Business Segments and Product Lines:

• New insurance written (NIW) was $17.1 billion in Q3 2026, up from $16.5 billion in Q3 2025.
• Insurance in force (IIF) was $307.3 billion as of September 30, 2026, compared to $300.8 billion in Q3 2025.
• Primary risk in force (RIF) was $82.5 billion as of September 30, 2026.
• In force portfolio yield was 37.9 basis points in Q3 2026, compared to 38.3 basis points in Q3 2025.
• Net premium yield was 31.2 basis points in Q3 2026, compared to 32.3 basis points in Q3 2025.
• Product mix for NIW in Q3 2026 included 5% with credit scores below 680, 15% with >95% LTVs, and 29% with >45% DTI.
• Refinances accounted for 5% of primary NIW in Q3 2026, compared to 6% in Q3 2025.

Market and Competitive Landscape:

• The document notes the mortgage insurance market is highly competitive with competition from private mortgage insurers, government programs, and potential new entrants.
• MGIC is a founder and longstanding leader of the private mortgage insurance industry.
• The substantial majority of MGIC's new insurance written is for loans purchased by Fannie Mae and Freddie Mac.

Risks and Challenges:

• Results are dependent on U.S. economic and housing market conditions; adverse conditions may increase delinquencies, claim frequency, and severity.
• Failure to comply with GSE Private Mortgage Insurance Eligibility Requirements (PMIERs) could limit operations or lead to suspension of eligibility.
• Loss reserve estimates are subject to uncertainties, and losses may disproportionately impact earnings in certain periods.
• Regulatory changes or enforcement actions at federal and state levels may adversely affect operations.
• Pandemics, severe weather events, and climate-related developments may negatively affect home prices and affordability.
• Instability in financial markets or counterparty failures could increase credit risk and losses.
• Adverse rating agency actions could affect competitiveness and GSE eligibility.

Management Commentary and Tone:

• Tim Mattke, CEO, stated that third-quarter results demonstrate the "continued strength and consistency of our business."
• Management emphasized the importance of a "thoughtful, disciplined approach" reinforced by nearly 70 years of experience across market cycles.
• The tone reflects a focus on maintaining financial strength and serving customers for the long term.

Other Key Points:

• The company repurchased 5.1 million shares of common stock for $152.5 million during the third quarter.
• A dividend of $0.17 per common share was paid to shareholders in the third quarter.
• MGIC executed a traditional excess-of-loss reinsurance transaction providing up to $168 million of coverage on eligible NIW in 2027.
• The quota share cede rate for a 2023 reinsurance transaction was amended to decrease 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., and the associated insurance-linked notes were redeemed in full.
• In October 2026, the company repurchased an additional 2.5 million shares for $70.2 million.
• In November 2026, MGIC paid a $350 million dividend to the holding company.
• The company agreed to terms for a 40% quota share reinsurance transaction covering eligible 2028 NIW and a 20% quota share transaction covering eligible 2029 NIW.
• PMIERs available assets were $5.8 billion as of September 30, 2026, with PMIERs excess of $2.8 billion.
• Holding company liquidity was $783 million as of September 30, 2026.
• Senior notes on the balance sheet were $647.2 million as of September 30, 2026.
• Total assets were $6.37 billion as of September 30, 2026.