MGIC Investment (MTG) Q2 2025 earnings summary

Executive summary

• Net income for Q2 2025 was $192.5 million ($0.81 per diluted share), with adjusted net operating income of $194.0 million ($0.82 per diluted share), reflecting strong profitability and a 15% annualized ROE.

• New insurance written (NIW) reached $16.4 billion in Q2 2025, up from $13.5 billion in Q2 2024, with annual persistency at 84.7%.

• $212 million was returned to shareholders via share repurchases and dividends, including a 15% increase in the common stock dividend.

• Primary risk in force as of June 30, 2025, totaled $181.5 billion, with a weighted average FICO of 747 and LTV of 93.3%.

• Delinquency rate was 2.21% at June 30, 2025, with 24,444 loans delinquent.

Financial highlights

• Net premiums earned for Q2 2025 were $244.3 million, nearly flat year-over-year; net premiums written were $237.4 million, up 2%.

• Book value per share rose to $22.11 at June 30, 2025, from $19.58 a year earlier.

• Loss ratio improved to (1.2%) in Q2 2025 from (7.5%) in Q2 2024, reflecting favorable credit trends.

• Underwriting expense ratio decreased to 21.9% from 23.1% year-over-year.

• Net investment income was $61 million, with a book yield of 4%.

Outlook and guidance

• Expect 2025 NIW to exceed 2024 levels, supported by higher market position and strong credit quality.

• In force portfolio premium yield anticipated to remain relatively flat in 2025 due to high persistency and credit quality.

• Full-year operating expenses expected in the $195–$205 million range, including pension-related charges.

• Additional $750 million share repurchase program authorized through December 2027.

• Effective tax rate expected to decrease modestly for the remainder of 2025 due to purchases of transferable federal tax credits.