Mgic Investment Corp.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 29 April 2026: press release. Guidance figures: 1 new, 1 kept. The quarter’s numbers.

Key takeaways

Net income and EPS reported: The company reported net income of $165.3 million, or $0.76 per diluted share, against $185.5 million, or $0.75 per diluted share, in the first quarter of 2025. Source
Net premium yield slipped: Net premium yield was 31.1 basis points, against 31.2 in the fourth quarter and 33.0 a year earlier. In force portfolio yield was 38.0 basis points. Source
New insurance written year-on-year: New insurance written was $14.4 billion, against $17.1 billion in the fourth quarter and $10.2 billion a year earlier. New primary risk written was $3.8 billion. Source
Refinance share of new business: Refinances were 21% of primary NIW, against 17% in the fourth quarter of 2025 and 6% in each of the second and third quarters of 2025. Source
Loss ratio rose from prior periods: The GAAP loss ratio was 14.1%, against 13.2% in the fourth quarter of 2025 and 3.9% in the first quarter of 2025. Losses incurred, net were $33.2 million, against $9.6 million. Source
Delinquency rate edged higher: Primary delinquency inventory was 27,006 loans, against 27,072 at year end and 25,438 a year earlier. The count-based delinquency rate was 2.44%. Source
Share repurchases in quarter and April: The company repurchased 7.2 million shares for $192.6 million in the first quarter. Through April 24, 2026 it repurchased a further 1.7 million shares for $47.4 million. Source
Excess of loss reinsurance agreement executed: Through an insurance linked note transaction, the company executed a $324 million excess of loss reinsurance agreement covering policies written January 1, 2022 to March 31, 2025. Source

“We achieved a return on equity of 13% while continuing to return meaningful capital to our shareholders.”
Tim Mattke, CEO of MTG and Mortgage Guaranty Insurance Corporation (“MGIC”)

Guidance

Area	Period	Figure	Against last quarter
Share repurchases Source	through December 31, 2028	$750 million	New
Quarterly dividend Source	payable May 21, 2026	$0.15 per common share	Kept

What changed from last quarter

New: A $750 million share repurchase program was approved, which the prior release did not contain. Source

Quarterly results and earnings

Net income and EPS reported: The company reported net income of $165.3 million, or $0.76 per diluted share, against $185.5 million, or $0.75 per diluted share, in the first quarter of 2025. Source
Adjusted net operating income reported: Adjusted net operating income was $165.1 million, or $0.76 per diluted share, against $168.4 million in the fourth quarter of 2025. Net realized investment gains were $0.2 million pre-tax. Source
Pre-tax income below prior year: Income before tax was $206.8 million, against $234.7 million a year earlier. The provision for income taxes was $41.5 million, against $49.2 million. Source

Premiums, yield and portfolio size

Net premiums written and earned: Net premiums written were $234.9 million, against $235.3 million a year earlier. Net premiums earned were $235.4 million, against $243.7 million. Source
Net premium yield slipped: Net premium yield was 31.1 basis points, against 31.2 in the fourth quarter and 33.0 a year earlier. In force portfolio yield was 38.0 basis points. Source
Insurance in force compared with prior periods: Insurance in force was $302.7 billion at March 31, 2026, against $303.1 billion at year end and $293.8 billion a year earlier. Source

“Our continued focus and commitment to meet our customers' evolving needs has allowed us to drive long-term shareholder value,”
Tim Mattke, CEO of MTG and Mortgage Guaranty Insurance Corporation (“MGIC”)

New business mix and volume

New insurance written year-on-year: New insurance written was $14.4 billion, against $17.1 billion in the fourth quarter and $10.2 billion a year earlier. New primary risk written was $3.8 billion. Source
Refinance share of new business: Refinances were 21% of primary NIW, against 17% in the fourth quarter of 2025 and 6% in each of the second and third quarters of 2025. Source
Low credit score share held: Loans with credit scores under 680 were 5% of primary NIW, and loans with LTVs above 95% were 14%, against 15% in the fourth quarter. Source
Monthly and annual plans dominate: Monthly and annual premium plans made up $13.9 billion of primary NIW. Single premium plans were $0.5 billion. Source
Average loan size compared with prior periods: Average loan size of insurance in force was $273.4 thousand, against $272.4 thousand in the fourth quarter and $265.7 thousand a year earlier. Source

Losses and delinquency trends

Loss ratio rose from prior periods: The GAAP loss ratio was 14.1%, against 13.2% in the fourth quarter of 2025 and 3.9% in the first quarter of 2025. Losses incurred, net were $33.2 million, against $9.6 million. Source
Delinquency rate edged higher: Primary delinquency inventory was 27,006 loans, against 27,072 at year end and 25,438 a year earlier. The count-based delinquency rate was 2.44%. Source
New notices and cures in quarter: New delinquency notices were 13,791, against 14,489 in the fourth quarter. Cures were 13,393, against 12,632. Source
Average claim payment compared with prior periods: Primary average claim payment was $42.7 thousand, against $46.1 thousand in the fourth quarter and $38.8 thousand a year earlier. Source

Expenses and investment income

Underwriting expense ratio compared with prior year: The underwriting expense ratio was 20.5%, against 19.9% in the fourth quarter and 22.5% a year earlier. Underwriting and other expenses, net were $48.1 million, against $53.1 million. Source
Net investment income near prior year: Net investment income was $61.7 million, against $61.4 million a year earlier. Net losses on investments and other financial instruments were $0.2 million. Source
Total expenses compared with prior year: Total losses and expenses were $90.2 million, against $71.6 million a year earlier, including interest expense of $8.9 million in each period. Source

Persistency, risk in force and reinsurance

Annual persistency eased from prior periods: Annual persistency was 84.0%, against 84.8% in the fourth quarter and 84.7% a year earlier. Primary risk in force was $81.2 billion. Source
Coverage ratio stable: The average coverage ratio of risk in force to insurance in force was 26.8%, the same as the prior three quarters. Source
Quota share covers most new business: 86.4% of NIW was subject to quota share reinsurance, against 86.2% in the fourth quarter of 2025. Source

Capital, liquidity and shareholder returns

Share repurchases in quarter and April: The company repurchased 7.2 million shares for $192.6 million in the first quarter. Through April 24, 2026 it repurchased a further 1.7 million shares for $47.4 million. Source
Excess of loss reinsurance agreement executed: Through an insurance linked note transaction, the company executed a $324 million excess of loss reinsurance agreement covering policies written January 1, 2022 to March 31, 2025. Source
MGIC dividend to holding company: Second quarter 2026 highlights list a $400 million dividend from MGIC to the holding company. Source
Holding company liquidity lower than year end: Holding company liquidity was $709 million at March 31, 2026, against $1,074 million at December 31, 2025 and $824 million a year earlier. Source
PMIERs excess higher than year end: PMIERs available assets were $5.8 billion and PMIERs excess was $2.9 billion, against $2.5 billion at December 31, 2025. Source
Book value per share compared with prior periods: Book value per common share was $23.63, against $23.47 at year end and $21.40 a year earlier. Tangible book value per share was $24.41. Source

Company profile and disclosure

Founder and industry position described: The company describes MGIC as the founder and longstanding leader of today's private mortgage insurance industry, serving lenders across the country. Source
Underwriting information posted online: Underwriting and rate information is available on the company website, which the release points to for underwriting and rates. Source
Email alerts and RSS offered: Investors are encouraged to enroll for automatic email alerts and RSS feeds on new postings, which may include corrections of previous disclosures. Source

Figures management reported

Figure	Reported
Net premiums written Source	$234.9 million
Investment income Source	$61.7 million
Book value per share Source	$23.63

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

MGIC Investment Corporation Reports First Quarter 2026 Results

First Quarter 2026 Net Income of $165.3 million or $0.76 per Diluted Share

First Quarter 2026 Adjusted Net Operating Income (Non-GAAP) of $165.1 million or $0.76 per Diluted Share

MILWAUKEE (April 29, 2026) - MGIC Investment Corporation (NYSE: MTG) today reported operating and financial results for the first quarter of 2026.

Tim Mattke, CEO of MTG and Mortgage Guaranty Insurance Corporation (“MGIC”) said, “We had a strong start to the year, successfully executing on our business strategies and generating solid first quarter results. We achieved a return on equity of 13% while continuing to return meaningful capital to our shareholders.

“We are well-positioned to navigate dynamic environments, supported by our deep industry expertise, strong balance sheet, and disciplined approach to capital allocation. Our continued focus and commitment to meet our customers' evolving needs has allowed us to drive long-term shareholder value,” concluded Mattke.

SUMMARY FINANCIAL METRICS	Quarter ended
($ in millions, except where otherwise noted)	Q1 2026	Q4 2025	Q1 2025
Net income	$165.3	$169.3	$185.5
Net income per diluted share	$0.76	$0.75	$0.75
Adjusted net operating income	$165.1	$168.4	$185.2
Adjusted net operating income per diluted share	$0.76	$0.75	$0.75
New insurance written (NIW) (billions)	$14.4	$17.1	$10.2
Net premiums earned	$235.4	$236.0	$243.7
Insurance in force (billions)	$302.7	$303.1	$293.8
Annual persistency	84.0%	84.8%	84.7%
Losses incurred, net	$33.2	$31.2	$9.6
Primary delinquency inventory	27,006	27,072	25,438
Primary IIF delinquency rate (count based)	2.44%	2.43%	2.30%
Loss ratio	14.1%	13.2%	3.9%
Underwriting expense ratio	20.5%	19.9%	22.5%
In force portfolio yield (bps)	38.0	38.0	38.4
Net premium yield (bps)	31.1	31.2	33.0
Annualized return on equity	13.0%	13.1%	14.3%
Book value per common share outstanding	$23.63	$23.47	$21.40
Adjust for AOCI	$0.79	$0.61	$0.98
Tangible book value per share	$24.41	$24.08	$22.38

CAPITAL AND LIQUIDITY	As of
($ in billions, except where otherwise noted)	March 31, 2026	December 31, 2025	March 31, 2025
PMIERs available assets	$5.8	$5.7	$5.9
PMIERs excess	$2.9	$2.5	$2.6
Holding company liquidity (millions)	$709	$1,074	$824

FIRST QUARTER 2026 HIGHLIGHTS

Through an insurance linked note transaction, we executed a $324 million excess of loss reinsurance agreement that covers certain policies written between January 1, 2022 and March 31, 2025.
We repurchased 7.2 million shares of common stock for $192.6 million.
We paid a dividend of $0.15 per common share to shareholders.

SECOND QUARTER 2026 HIGHLIGHTS

Through April 24, 2026 we repurchased an additional 1.7 million shares of our common stock for $47.4 million.
We declared a dividend of $0.15 per common share to shareholders payable on May 21, 2026, to shareholders of record at the close of business on May 6, 2026.
MGIC paid a $400 million dividend to our holding company.
Our board of directors approved a share repurchase program, authorizing us to purchase an additional $750 million of common stock prior to December 31, 2028.

Conference Call and Webcast Details

MGIC Investment Corporation will hold a conference call April 30, 2026, at 10:00 a.m. ET to allow securities analysts and shareholders the opportunity to hear management discuss the company’s quarterly results. Individuals interested in joining by telephone should register for the call at https://register-conf.media-server.com/register/BIeb1b95ef583c49419a8d6b744e509dce to receive the dial-in number and unique PIN to access the call. It is recommended that you join the call at least 10 minutes before the conference call begins. The call is also being webcast and can be accessed at the company's website at http://mtg.mgic.com/ under "Newsroom." A replay of the webcast will be available on the company’s website through May 30, 2026.

About MGIC

Mortgage Guaranty Insurance Corporation (MGIC) (www.mgic.com), the principal subsidiary of MGIC Investment Corporation, provides mortgage insurance solutions that support responsible credit risk management for mortgage lenders and investors and enable borrowers to qualify for mortgages with lower down payments. As the founder and longstanding leader of today's private mortgage insurance industry, MGIC continues to guide the industry’s evolution while serving as a trusted partner to lenders across the country.

This press release, which includes certain additional statistical and other information, including non-GAAP financial information and a supplement that contains various portfolio statistics, are all available on the Company's website at https://mtg.mgic.com/ under “Newsroom.”

From time to time MGIC Investment Corporation releases important information via postings on its corporate website, and via postings on MGIC’s website for information related to underwriting and pricing, and intends to continue to do so in the future. Such postings include corrections of previous disclosures and may be made without any other disclosure. Investors and other interested parties are encouraged to enroll to receive automatic email alerts and Really Simple Syndication (RSS) feeds regarding new postings. Enrollment information for MGIC Investment Corporation alerts can be found at https://mtg.mgic.com/shareholder-services/email-alerts. For information about our underwriting and rates, see https://www.mgic.com/underwriting.

Use of Non-GAAP financial measures

We believe that use of the Non-GAAP financial measures of adjusted pre-tax operating income (loss), adjusted net operating income (loss) and adjusted net operating income (loss) per diluted share facilitate the evaluation of the company's core financial performance thereby providing relevant information to investors. These measures are not recognized in accordance with accounting principles generally accepted in the United States of America (GAAP) and should not be viewed as alternatives to GAAP measures of performance.

Adjusted pre-tax operating income (loss) is defined as GAAP income (loss) before tax, excluding the effects of net realized investment gains (losses), gain and losses on debt extinguishment and infrequent or unusual non-operating items where applicable.

Adjusted net operating income (loss) is defined as GAAP net income (loss) excluding the after-tax effects of net realized investment gains (losses), gain and losses on debt extinguishment and infrequent or unusual non-operating items where applicable. The amounts of adjustments to components of pre-tax operating income (loss) are tax effected using a federal statutory tax rate of 21%.

Adjusted net operating income (loss) per diluted share is calculated in a manner consistent with the accounting standard regarding earnings per share by dividing (i) adjusted net operating income (loss) by (ii) diluted weighted average common shares outstanding, which reflects share dilution from unvested restricted stock units.

Although adjusted pre-tax operating income (loss) and adjusted net operating income (loss) exclude certain items that have occurred in the past and are expected to occur in the future, the excluded items represent items that are: (1) not viewed as part of the operating performance of our primary activities; or (2) impacted by both discretionary and other economic or regulatory factors and are not necessarily indicative of operating trends, or both. These adjustments, along with the reasons for their treatment, are described below. Trends in the profitability of our fundamental operating activities can be more clearly identified without the fluctuations of these adjustments. Other companies may calculate these measures differently. Therefore, their measures may not be comparable to those used by us.

(1)Net realized investment gains (losses). The recognition of net realized investment gains or losses can vary significantly across periods as the timing of individual securities sales is highly discretionary and is influenced by such factors as market opportunities, our tax and capital profile, and overall market cycles.

(2)Gains and losses on debt extinguishment. Gains and losses on debt extinguishment result from discretionary activities that are undertaken to enhance our capital position, and/or improve our debt profile.

(3)Infrequent or unusual non-operating items. Items that are non-recurring in nature and are not part of our primary operating activities.

	Three Months Ended March 31,
MGIC INVESTMENT CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In thousands, except per share data)		2026		2025
Net premiums written	$234,943		$235,346
Revenues
Net premiums earned	$235,363		$243,719
Net investment income	61,742		61,443
Net gains (losses) on investments and other financial instruments	(169)		741
Other revenue	141		331
Total revenues	297,077		306,234
Losses and expenses
Losses incurred, net	33,242		9,591
Underwriting and other expenses, net	48,108		53,063
Interest expense	8,899		8,899
Total losses and expenses	90,249		71,553
Income before tax	206,828		234,681
Provision for income taxes	41,525		49,221
Net income	$165,303		$185,460
Net income per diluted share	$0.76		$0.75

	Three Months Ended March 31,
MGIC INVESTMENT CORPORATION AND SUBSIDIARIES
EARNINGS PER SHARE (UNAUDITED)
(In thousands, except per share data)		2026		2025
Net income - basic and diluted	$165,303		$185,460
Basic weighted average common shares outstanding	216,135		244,147
Dilutive effect of unvested restricted stock units	2,051		2,343
Diluted weighted average common shares outstanding	218,186		246,490
Diluted earnings per share	$0.76		$0.75

NON-GAAP RECONCILIATIONS

	Three Months Ended March 31,
	2026			2025
Reconciliation of Income before tax / Net income to Adjusted pre-tax operating income / Adjusted net operating income
(In thousands, except per share amounts)	Pre-tax	Tax Effect	Net(after-tax)	Pre-tax	Tax Effect	Net(after-tax)
Income before tax / Net income	$206,828	$41,525	$165,303	$234,681	$49,221	$185,460
Adjustments:
Net realized investment (gains) losses	(200)	(42)	(158)	(319)	(67)	(252)
Adjusted pre-tax operating income / Adjustednet operating income	$206,628	$41,483	$165,145	$234,362	$49,154	$185,208
Reconciliation of Net income per diluted share to Adjusted net operating income per diluted share
Weighted average shares - diluted			218,186			246,490
Net income per diluted share			$0.76			$0.75
Net realized investment (gains) losses			0.00			0.00
Adjusted net operating income per diluted share			$0.76			$0.75

	March 31,		December 31,		March 31,
MGIC INVESTMENT CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In thousands, except per share data)		2026		2025		2025
ASSETS
Investments	$5,719,421		$5,807,662		$5,901,057
Cash and cash equivalents	235,090		368,989		206,988
Restricted cash and cash equivalents	14,405		6,525		5,705
Reinsurance recoverable on loss reserves	73,184		65,055		51,864
Home office and equipment, net	31,947		32,454		34,468
Deferred insurance policy acquisition costs	7,955		8,377		11,114
Deferred income taxes, net	15,494		18,512		46,196
Other assets	319,253		331,912		277,744
Total assets	$6,416,749		$6,639,486		$6,535,136
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Loss reserves	$499,120		$474,884		$465,033
Unearned premiums	92,606		93,026		111,987
Senior notes	646,506		646,138		645,035
Other liabilities	141,230		277,887		173,197
Total liabilities	1,379,462		1,491,935		1,395,252
Shareholders' equity	5,037,287		5,147,551		5,139,884
Total liabilities and shareholders' equity	$6,416,749		$6,639,486		$6,535,136
Book value per share	$23.63		$23.47		$21.40
Investments include net unrealized gains (losses) on securities	$(194,840)		$(152,767)		$(261,022)
Loss reserves, net of reinsurance recoverable on loss reserves	$425,936		$409,829		$413,169
Shares outstanding	213,200		219,367		240,194

	2026	2025
	Q1	Q4	Q3	Q2	Q1
MGIC INVESTMENT CORPORATION AND SUBSIDIARIES
ADDITIONAL INFORMATION - NEW INSURANCE WRITTEN
New primary insurance written (NIW) (billions)	$14.4	$17.1	$16.5	$16.4	$10.2
Monthly (including split premium plans) andannual premium plans	13.9	16.6	16.1	16.0	9.9
Single premium plans	0.5	0.5	0.4	0.4	0.3
Product mix as a % of primary NIW
Credit score < 680	5%	5%	4%	4%	4%
>95% LTVs	14%	15%	17%	13%	13%
>45% DTI	25%	26%	27%	26%	31%
Singles	4%	3%	2%	2%	2%
Refinances	21%	17%	6%	6%	6%
New primary risk written (billions)	$3.8	$4.4	$4.4	$4.3	$2.6

	2026	2025
	Q1	Q4	Q3	Q2	Q1
MGIC INVESTMENT CORPORATION AND SUBSIDIARIES
ADDITIONAL INFORMATION - INSURANCE IN FORCE and RISK IN FORCE
Primary Insurance In Force (IIF) (billions)	$302.7	$303.1	$300.8	$297.0	$293.8
Total # of loans	1,106,958	1,112,727	1,111,855	1,107,526	1,105,863
Premium Yield
In force portfolio yield	38.0	38.0	38.3	38.3	38.4
Premium refunds	(0.3)	(0.4)	(0.3)	(0.1)	0.0
Accelerated earnings on single premium	0.2	0.3	0.2	0.2	0.2
Total direct premium yield	37.9	37.9	38.2	38.4	38.6
Ceded premiums earned, net of profitcommission and assumed premiums	(6.8)	(6.7)	(5.9)	(5.4)	(5.6)
Net premium yield	31.1	31.2	32.3	33.0	33.0
Average Loan Size of IIF (thousands)	$273.4	$272.4	$270.6	$268.2	$265.7
Annual Persistency	84.0%	84.8%	85.0%	84.7%	84.7%
Primary Risk In Force (RIF) (billions)	$81.2	$81.2	$80.6	$79.5	$78.5
By credit score (%)
760 & >	45%	45%	45%	44%	44%
740-759	18%	18%	18%	18%	18%
720-739	14%	14%	14%	14%	14%
700-719	10%	10%	10%	10%	10%
680-699	7%	7%	7%	7%	7%
660-679	3%	3%	3%	3%	3%
640-659	2%	2%	2%	2%	2%
639 & <	1%	1%	1%	2%	2%
Average Coverage Ratio (RIF/IIF)	26.8%	26.8%	26.8%	26.8%	26.7%

(1) Total direct premiums earned, excluding premium refunds and accelerated premiums from single premium policy cancellations divided by average primary insurance in force.

(2) Premium refunds and our estimate of refundable premium on our delinquency inventory divided by average primary insurance in force.

(3) Ceded premiums earned, net of profit commissions and assumed premiums. Assumed premiums include our participation in GSE Credit Risk Transfer programs, of which the impact on the net premium yield was 0.5 bps in the first quarter of 2026.

(4) The credit score at the time of origination for a loan with multiple borrowers is the lowest of the borrowers’ “decision credit scores.” A borrower’s “decision credit score” is determined as follows: if there are three credit scores available, the middle credit score is used; if two credit scores are available, the lower of the two is used; if only one credit score is available, it is used.

	2026	2025
	Q1		Q4		Q3		Q2		Q1
MGIC INVESTMENT CORPORATION AND SUBSIDIARIES
ADDITIONAL INFORMATION - DELINQUENCY STATISTICS
Primary IIF - Delinquent Roll Forward - # ofLoans
Beginning Delinquent Inventory	27,072		25,747		24,444		25,438		26,791
New Notices	13,791		14,489		13,582		11,970		12,965
Cures	(13,393)		(12,632)		(11,814)		(12,588)		(13,981)
Paid claims	(457)		(359)		(359)		(341)		(312)
Rescissions and denials	(7)		(13)		(18)		(35)		(25)
Other items removed from inventory	-		(160)		(88)		-		-
Ending Delinquent Inventory	27,006		27,072		25,747		24,444		25,438
Primary IIF Delinquency Rate (count based)	2.44%		2.43%		2.32%		2.21%		2.30%
Primary claim received inventory included in ending delinquent inventory	383		398		333		295		304
Composition of Cures
Reported delinquent and curedintraquarter	3,973		3,917		3,606		3,268		4,321
Number of payments delinquent prior tocure
3 payments or less	6,262		5,734		5,141		5,708		6,379
4-11 payments	2,702		2,466		2,500		2,887		2,759
12 payments or more	456		515		567		725		522
Total Cures in Quarter	13,393		12,632		11,814		12,588		13,981
Composition of Paids
Number of payments delinquent at timeof claim payment
3 payments or less	1		-		1		-		1
4-11 payments	57		32		32		32		28
12 payments or more	399		327		326		309		283
Total Paids in Quarter	457		359		359		341		312
Aging of Primary Delinquent Inventory
Consecutive months delinquent
3 months or less	9,655	36%	10,389	38%	9,817	38%	8,552	35%	8,497	33%
4-11 months	10,289	38%	9,559	35%	8,858	34%	8,868	36%	9,907	39%
12 months or more	7,062	26%	7,124	27%	7,072	28%	7,024	29%	7,034	28%
Number of payments delinquent
3 payments or less	13,376	49%	14,121	52%	13,406	52%	12,260	50%	12,319	48%
4-11 payments	9,364	35%	8,747	32%	8,122	32%	7,963	33%	8,788	35%
12 payments or more	4,266	16%	4,204	16%	4,219	16%	4,221	17%	4,331	17%

(1) Items removed from inventory are associated with commutations of coverage on non-performing policies.

	2026	2025
	Q1	Q4	Q3	Q2	Q1
MGIC INVESTMENT CORPORATION AND SUBSIDIARIES
ADDITIONAL INFORMATION - RESERVES and CLAIMS PAID
Reserves (millions)
Primary Direct Loss Reserves	$497	$472	$450	$450	$462
Other Gross Loss Reserves	2	3	2	2	3
Total Gross Loss Reserves	$499	$475	$452	$452	$465
Primary Average Direct ReservePer Delinquency	$18,398	$17,449	$17,462	$18,395	$18,167
Net Paid Claims (millions)	$17	$16	$14	$12	$12
Total primary (excluding settlements)	20	16	14	13	12
Rescission and NPL settlements	-	3	1	-	-
Reinsurance	(4)	(3)	(2)	(2)	(2)
LAE and other	1	1	1	1	2
Reinsurance Terminations	-	(1)	-	-	-
Primary Average Claim Payment(thousands)	$42.7	$46.1	$39.7	$36.5	$38.8

(1) Net paid claims, as presented, does not include amounts received in conjunction with terminations or commutations of reinsurance agreements.

(2) Excludes amounts paid in settlement disputes for claims paying practices and/or commutations of policies.

	2026	2025
	Q1	Q4	Q3	Q2	Q1
MGIC INVESTMENT CORPORATION AND SUBSIDIARIES
ADDITIONAL INFORMATION - REINSURANCE AND MI RATIOS
Quota Share Reinsurance
% NIW subject to reinsurance	86.4%	86.2%	88.2%	87.7%	86.8%
Ceded premiums written and earned (millions)	$37.8	$38.9	$32.0	$28.1	$29.9
Ceded losses incurred (millions)	$12.0	$11.9	$6.1	$4.0	$6.4
Ceding commissions (millions) (included inunderwriting and other expenses)	$13.4	$13.4	$12.9	$12.1	$11.7
Profit commission (millions) (included in cededpremiums)	$29.1	$28.3	$32.6	$32.3	$28.7
Excess-of-Loss Reinsurance
Ceded premiums earned (millions)	$17.8	$14.8	$16.2	$15.4	$14.7
GAAP loss ratio	14.1%	13.2%	4.5%	(1.2%)	3.9%
GAAP underwriting expense ratio	20.5%	19.9%	21.1%	21.9%	22.5%
Mortgage Guaranty Insurance Corporation - Risk toCapital	9.6:1	10.0:1	9.7:1	10.0:1	9.8:1
Combined Insurance Companies - Risk to Capital	9.6:1	10.0:1	9.7:1	10.0:1	9.7:1

Safe Harbor Statement

Forward Looking Statements and Risk Factors:

This release contains forward looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on current assumptions, expectations, and projections and are subject to risks and uncertainties that could cause actual results to differ materially. Forward-looking statements consist of statements which relate to matters other than historical fact, including matters that inherently refer to future events. Among others, statements that include words such as "believe," "anticipate," "will" or "expect," or words of similar import, are forward-looking statements. Our actual results may differ, possibly materially, from those expressed or implied in such forward-looking statements. Factors and uncertainties that could cause actual results to differ can be found in the “Risk Factors” and “Forward-Looking Statements” sections included in MGIC Investment Corporation’s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. Such factors and uncertainties include, without limitation:

Our results are dependent on U.S. economic and housing market conditions; adverse conditions may cause a decrease in new insurance written and/or an increase in delinquencies, claim frequency, and claim severity. Additionally, if the volume of low down payment home mortgage originations declines, the amount of new insurance that we write could decline.
The substantial majority of MGIC’s new insurance written is for loans purchased by Fannie Mae and Freddie Mac (“the GSEs”); therefore, changes to their business practices or legislative, regulatory or administrative reforms could materially affect our business and financial results.
Failure to comply with the GSEs’ Private Mortgage Insurance Eligibility Requirements (“PMIERs”) could limit our operations, or at the extreme, lead to suspension or termination of eligibility to insure loans purchased by the GSEs.
Loss reserve estimates are subject to uncertainties; actual losses may differ materially from estimates. Additionally, because reserves are established only upon delinquency, losses may disproportionately impact earnings in certain periods.
We operate in a highly regulated environment at both the federal and state levels; regulatory changes or enforcement actions may adversely affect our operations and/or financial results.
If we fail to meet the State Capital Requirements of Wisconsin, we could be prevented from writing new business in all jurisdictions; we could be prevented from writing new business in a particular jurisdiction if we fail to meet the state capital requirements of that jurisdiction.
Pandemics, severe weather events, and climate related developments may negatively affect home prices and affordability, potentially leading to an increase in delinquencies, claim frequency, and claim severity. Actions by government authorities, including FHFA and the GSEs, to address climate related issues could similarly affect our results.
The availability, cost, and capital credit for reinsurance may change due to market conditions or GSE actions, potentially requiring us to retain more risk and maintain additional capital.
Our financial results may be impacted if lenders and investors seek alternatives to private mortgage insurance. In addition, changes in GSE programs, growth in government market share, or changes to regulatory capital rules to limit capital relief for mortgage insurance could affect our business in similar ways.
The premium rates we charge may prove inadequate due to unknown future economic conditions, modelling limitations or errors, or other unexpected events.
The length of time our insurance policies remain in force (“persistency”) affects our results. Among other things, persistency can be influenced by interest rates, borrower equity, refinancing activity, and mortgage insurance cancellation requirements.
Instability in financial markets or counterparty failures, including by reinsurers or mortgage servicers, could increase our credit risk and losses.
Ineffective risk management programs, inaccurate data or model errors could impair our ability to identify and respond to risks, and materially adversely affect our business, results of operations, and financial condition.
Technology system failures, cybersecurity breaches, or data privacy incidents could materially disrupt operations and cause financial and reputational damage.
Changes in our underwriting practices and mix of business have the potential to increase risk and negatively affect our financial results.
Our business depends on hiring and retaining experienced management and key personnel; the failure to do so could disrupt operations and negatively impact our financial condition.
The mortgage insurance market is highly competitive. Competition from private mortgage insurers, government programs, and potential new market entrants - combined with pricing pressure and shifting customer preferences and relationships - could lead to a reduction in our new insurance written.
Adverse rating agency actions could affect our competitiveness, GSE eligibility, and access to capital.
Litigation and regulatory proceedings could result in fines, settlements, operational restrictions, or reputational harm.
Our investment portfolio is exposed to risks that could adversely impact our operations and financial results. Future capital needs could require issuance of debt or equity, potentially diluting shareholders.
Our stock price may fluctuate due to economic, industry, regulatory, or company specific developments.
Regulatory limits on dividends from our insurance subsidiaries have the potential to constrain holding company liquidity and our ability to pay shareholder dividends or repurchase stock in the future.

We are not undertaking any obligation to update any forward-looking statements or other statements we may make even though these statements may be affected by events or circumstances occurring after the forward looking statements or other statements were made. No investor should rely on the fact that such statements are current at any time other than the time at which this press release was delivered for dissemination to the public.

While we communicate with security analysts from time to time, it is against our policy to disclose to them any material non-public information or other confidential information. Accordingly, investors should not assume that we agree with any statement or report issued by any analyst irrespective of the content of the statement or report, and such reports are not our responsibility.

Contacts
Investor Relations: Dianna Higgins | (414) 347-2635 | dianna_higgins@mgic.com