MGIC Investment (MTG) Q3 2025 earnings summary

Executive summary

• Q3 2025 net income was $191.1 million ($0.83 per diluted share), with adjusted net operating income of $190.8 million, reflecting stable profitability and strong capital management.

• Annualized ROE was 14.8%, and book value per share grew to $22.87, up 11% year-over-year.

• Insurance in force surpassed $300 billion, with NIW of $16.5 billion in Q3 and persistency at 85.0%.

• Maintained strong credit quality with a weighted average FICO of 748 and average LTV of 93.4%.

• S&P revised its outlook to positive from stable on the company and its subsidiaries.

Financial highlights

• Net premiums earned for Q3 2025 were $241.8 million, nearly flat year-over-year; investment income was $62.2 million.

• Net income and adjusted net operating income were $0.83 per diluted share, up from $0.77 per share year-over-year.

• Losses incurred, net, were $10.9 million in Q3 2025, reflecting favorable prior period development.

• Underwriting and other expenses, net, decreased 8% year-over-year for the nine months, totaling $149.5 million.

• Book value per share rose to $22.87 from $20.66 year-over-year.

Outlook and guidance

• Persistency rate remains high at 85.0%, supporting stable premium yields.

• 2025 NIW expected to exceed 2024, driven by higher market position.

• Full-year operating expenses expected at the higher end of $195–$205 million due to pension settlement charges.

• Amended 2022 quota share reinsurance transaction, reducing cede rate from 30% to 28% effective December 31, 2025.

• Scheduled contingency reserve releases projected through 2035, supporting future capital flexibility.