MGIC Investment (MTG) Q3 2026 earnings summary

Executive summary

• Q3 net income was $175.0M, down 8% YoY; diluted EPS was $0.85 versus $0.83. Annualized ROE was 14.2%.

• Q3 NIW rose to $17.1B from $16.5B; primary insurance in force reached $307.3B, up from $300.8B a year earlier.

• Credit performance remained strong, with delinquencies rising gradually from exceptionally favorable COVID-era levels; the count-based delinquency rate was 2.52%.

Financial highlights

• Q3 revenue was $299.1M versus $304.5M YoY; net premiums earned were $238.5M and net investment income was $60.9M.

• Net losses incurred rose 119% YoY to $23.9M, primarily reflecting more new delinquencies and higher estimated severity on current-year delinquencies.

• Q3 loss ratio was 10.0%, including $34M of favorable reserve development, primarily from better-than-expected cures on 2025 and Q1 2026 delinquencies.

• Underwriting and other expenses declined 9% YoY to $44.9M, mainly due to lower outside-service and employee costs.

• Book value per share was $24.06 versus $22.87 in Q3 2025; tangible book value per share was $25.68 versus $23.58.

Outlook and guidance

• Full-year 2026 NIW is expected to increase modestly versus 2025; in-force portfolio premium yield is expected to remain relatively flat, reflecting elevated persistency and high credit quality in new business.

• Full-year operating expenses are expected slightly below the prior $190M-$200M guidance range.

• Delinquencies are expected to rise gradually as the portfolio shifts toward 2022-and-later vintages; the initial claim-rate assumption remains 7.5%, with any future adjustment more likely to be upward.

• Net losses and LAE paid are expected to increase, though timing and magnitude are uncertain; net premium yield may fluctuate due to single-premium policy earnings, reinsurance and other factors.