MGIC Investment (MTG) Q1 2025 earnings summary

Executive summary

• Q1 2025 net income was $186 million ($0.75 per diluted share), up 7% year-over-year, with annualized return on equity of 14.3% and strong financial performance supported by disciplined risk management.

• Adjusted net operating income was $185.2 million ($0.75 per share), reflecting higher net income and fewer diluted shares outstanding.

• New insurance written in Q1 2025 was $10.2 billion, with insurance in force ending at $294 billion and annual persistency at 85%.

• Maintained strong credit quality with weighted average FICO of 747 and LTV of 93.3% for risk in force as of March 31, 2025.

• CEO highlighted robust capital, liquidity, and increased macroeconomic and geopolitical concerns.

Financial highlights

• Net premiums earned were $243.7 million, up from $242.6 million year-over-year; net investment income was $61.4 million, up from $59.7 million.

• Net income per diluted share was $0.75, up from $0.64 year-over-year; adjusted net operating income also $0.75 per share, up from $0.65.

• Favorable loss reserve development of $50 million, with net losses incurred at $10 million due to higher-than-expected cure rates.

• Delinquency rate was 2.3% at quarter end, with 25,438 loans delinquent.

• Operating expenses were $51.4 million, down 13% year-over-year, primarily due to lower employee costs.

Outlook and guidance

• Persistency rate expected to remain high, supporting stable premium yields in 2025.

• Insurance in force growth expected to remain constrained due to market conditions, with high persistency and flat premium yields anticipated.

• Operating expenses for the full year expected in the $195 million-$205 million range.

• New delinquency notices may increase modestly as 2021 and 2022 book years age.

• Forward-looking statements highlight potential impact from macroeconomic and regulatory risks, with no obligation to update guidance.