MGIC Investment (MTG) Q1 2026 earnings summary

Executive summary

• Net income for Q1 2026 was $165.3 million, or $0.76 per diluted share, down 11% year-over-year, primarily due to higher losses incurred and lower net premiums earned, partially offset by lower expenses and taxes.

• Adjusted net operating income was $165.1 million, or $0.76 per share, both down 11% from Q1 2025.

• Book value per share increased to $23.63 from $21.40 a year ago.

• New insurance written (NIW) was $14.4 billion in Q1 2026, up from $10.2 billion in Q1 2025 but down from $17.1 billion in Q4 2025.

• Insurance in force remained stable at $303.1 billion at quarter-end, with risk in force unchanged at $81.2 billion.

Financial highlights

• Net premiums earned were $235.4 million in Q1 2026, down from $243.7 million in Q1 2025, due to increased ceded premiums.

• Net investment income was $61.7 million, consistent with prior quarters.

• Losses incurred, net, rose to $33.2 million from $9.6 million in Q1 2025, driven by more new delinquencies and higher severity.

• Underwriting and other expenses were $48.1 million, down from $53.1 million in Q1 2025, lowering the underwriting expense ratio to 20.5%.

• Net cash provided by operating activities was $76.9 million, down from $223.7 million, mainly due to tax credit purchases and higher claims paid.

Outlook and guidance

• NIW for full-year 2026 is expected to remain relatively flat compared to 2025.

• Premium yield is expected to remain stable, though may fluctuate due to reinsurance and single premium policy impacts.

• Persistency rate remains high at 84.0%, supporting stable in-force portfolio yields.

• Flow delinquency rates remain low, with static pool delinquency rates below 3% for recent origination years.

• Capital and liquidity positions remain strong, with holding company liquidity at $709 million and shareholders' equity at $5.04 billion.