Original source text
Second Quarter 2026 Net Income of $182.1 million or $0.86 per Diluted Share
Second Quarter 2026 Adjusted Net Operating Income (Non-GAAP) of $183.7 million or $0.87 per Diluted Share
, /PRNewswire/ -- MGIC Investment Corporation (NYSE: MTG) today reported operating and financial results for the second quarter of 2026.
Tim Mattke, CEO of MTG and Mortgage Guaranty Insurance Corporation ("MGIC") said, "Our strong second quarter results, highlighted by a 14.5% return on equity, reflect the continued success of our disciplined execution. We've delivered consistent performance, generated meaningful returns for shareholders, and strengthened our position for the future. Our deep industry expertise, strong balance sheet, and customer-focused approach continue to drive sustainable value."
SUMMARY FINANCIAL METRICS
Quarter ended
($ in millions, except where otherwise noted)
Q2 2026
Q1 2026
Q2 2025
Net income
$ 182.1
$ 165.3
$ 192.5
Net income per diluted share
$ 0.86
$ 0.76
$ 0.81
Adjusted net operating income
$ 183.7
$ 165.1
$ 194.0
Adjusted net operating income per diluted share
$ 0.87
$ 0.76
$ 0.82
New insurance written (NIW) (billions)
$ 17.8
$ 14.4
$ 16.4
Net premiums earned
$ 238.1
$ 235.4
$ 244.3
Insurance in force (billions)
$ 304.8
$ 302.7
$ 297.0
Annual persistency
83.3 %
84.0 %
84.7 %
Losses incurred, net
$ 11.0
$ 33.2
$ (2.8)
Primary delinquency inventory
26,152
27,006
24,444
Primary IIF delinquency rate (count based)
2.37 %
2.44 %
2.21 %
Loss ratio
4.6 %
14.1 %
(1.2 %)
Underwriting expense ratio
19.8 %
20.5 %
21.9 %
In force portfolio yield (bps)
37.8
38.0
38.3
Net premium yield (bps)
31.3
31.1
33.0
Annualized return on equity
14.5 %
13.0 %
15.0 %
Book value per common share outstanding
$ 24.27
$ 23.63
$ 22.11
Adjust for AOCI
$ 0.81
$ 0.79
$ 0.88
Tangible book value per share
$ 25.08
$ 24.41
$ 22.99
CAPITAL AND LIQUIDITY
As of
($ in billions, except where otherwise noted)
June 30, 2026
March 31, 2026
June 30, 2025
PMIERs available assets
$ 5.6
$ 5.8
$ 5.7
PMIERs excess
$ 2.7
$ 2.9
$ 2.4
Holding company liquidity (millions)
$ 930
$ 709
$ 1,046
SECOND QUARTER 2026 HIGHLIGHTS
We repurchased 6.6 million shares of common stock for $176.6 million. We paid a dividend of $0.15 per common share to shareholders. MGIC paid a $400 million dividend to our holding company. Our board of directors approved a share repurchase program, authorizing us to purchase an additional $750 million of common stock prior to December 31, 2028. THIRD QUARTER 2026 HIGHLIGHTS
Through July 24, 2026 we repurchased an additional 1.5 million shares of our common stock for $42.4 million. We declared a dividend of $0.17 per common share to shareholders payable on August 20, 2026, to shareholders of record at the close of business on August 5, 2026. We executed a traditional excess-of-loss reinsurance transaction which provides up to $168 million of reinsurance coverage on eligible NIW in 2027. Conference Call and Webcast Details
MGIC Investment Corporation will hold a conference call July 30, 2026, at 10:00 a.m. ET to allow securities analysts and shareholders the opportunity to hear management discuss the company's quarterly results. Individuals interested in joining by telephone should register for the call at https://edge.media-server.com/mmc/p/m2vjy8nq/ to receive the dial-in number and unique PIN to access the call. It is recommended that you join the call at least 10 minutes before the conference call begins. The call is also being webcast and can be accessed at the company's website at http://mtg.mgic.com/ under "Newsroom." A replay of the webcast will be available on the company's website through August 31, 2026.
About MGIC
Mortgage Guaranty Insurance Corporation (MGIC) (www.mgic.com), the principal subsidiary of MGIC Investment Corporation, provides mortgage insurance solutions that support responsible credit risk management for mortgage lenders and investors and enable borrowers to qualify for mortgages with lower down payments. As the founder and longstanding leader of today's private mortgage insurance industry, MGIC continues to guide the industry's evolution while serving as a trusted partner to lenders across the country.
This press release, which includes certain additional statistical and other information, including non-GAAP financial information and a supplement that contains various portfolio statistics, are all available on the Company's website at https://mtg.mgic.com/ under "Newsroom."
From time to time MGIC Investment Corporation releases important information via postings on its corporate website, and via postings on MGIC's website for information related to underwriting and pricing, and intends to continue to do so in the future. Such postings include corrections of previous disclosures and may be made without any other disclosure. Investors and other interested parties are encouraged to enroll to receive automatic email alerts and Really Simple Syndication (RSS) feeds regarding new postings. Enrollment information for MGIC Investment Corporation alerts can be found at https://mtg.mgic.com/shareholder-services/email-alerts. For information about our underwriting and rates, see https://www.mgic.com/underwriting.
Use of Non-GAAP financial measures
We believe that use of the Non-GAAP financial measures of adjusted pre-tax operating income (loss), adjusted net operating income (loss) and adjusted net operating income (loss) per diluted share facilitate the evaluation of the company's core financial performance thereby providing relevant information to investors. These measures are not recognized in accordance with accounting principles generally accepted in the United States of America (GAAP) and should not be viewed as alternatives to GAAP measures of performance.
Adjusted pre-tax operating income (loss) is defined as GAAP income (loss) before tax, excluding the effects of net realized investment gains (losses), gain and losses on debt extinguishment and infrequent or unusual non-operating items where applicable.
Adjusted net operating income (loss) is defined as GAAP net income (loss) excluding the after-tax effects of net realized investment gains (losses), gain and losses on debt extinguishment and infrequent or unusual non-operating items where applicable. The amounts of adjustments to components of pre-tax operating income (loss) are tax effected using a federal statutory tax rate of 21%.
Adjusted net operating income (loss) per diluted share is calculated in a manner consistent with the accounting standard regarding earnings per share by dividing (i) adjusted net operating income (loss) by (ii) diluted weighted average common shares outstanding, which reflects share dilution from unvested restricted stock units.
Although adjusted pre-tax operating income (loss) and adjusted net operating income (loss) exclude certain items that have occurred in the past and are expected to occur in the future, the excluded items represent items that are: (1) not viewed as part of the operating performance of our primary activities; or (2) impacted by both discretionary and other economic or regulatory factors and are not necessarily indicative of operating trends, or both. These adjustments, along with the reasons for their treatment, are described below. Trends in the profitability of our fundamental operating activities can be more clearly identified without the fluctuations of these adjustments. Other companies may calculate these measures differently. Therefore, their measures may not be comparable to those used by us.
(1) Net realized investment gains (losses). The recognition of net realized investment gains or losses can vary significantly across periods as the timing of individual securities sales is highly discretionary and is influenced by such factors as market opportunities, our tax and capital profile, and overall market cycles.
(2) Gains and losses on debt extinguishment. Gains and losses on debt extinguishment result from discretionary activities that are undertaken to enhance our capital position, and/or improve our debt profile.
(3) Infrequent or unusual non-operating items. Items that are non-recurring in nature and are not part of our primary operating activities.
MGIC INVESTMENT CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Three Months Ended June 30,
Six Months Ended June 30,
(In thousands, except per share data)
2026
2025
2026
2025
Net premiums written
$ 229,962
$ 237,384
$ 464,905
$ 472,730
Revenues
Net premiums earned
$ 238,057
$ 244,322
$ 473,420
$ 488,041
Net investment income
59,465
60,995
121,207
122,438
Net gains (losses) on investments and other financial instruments
(2,226)
(1,426)
(2,395)
(685)
Other revenue
92
354
233
685
Total revenues
295,388
304,245
592,465
610,479
Losses and expenses
Losses incurred, net
10,986
(2,835)
44,228
6,756
Underwriting and other expenses, net
45,575
52,092
93,683
105,155
Interest expense
8,899
8,899
17,798
17,798
Total losses and expenses
65,460
58,156
155,709
129,709
Income before tax
229,928
246,089
436,756
480,770
Provision for income taxes
47,783
53,607
89,308
102,828
Net income
$ 182,145
$ 192,482
$ 347,448
$ 377,942
Net income per diluted share
$ 0.86
$ 0.81
$ 1.62
$ 1.56
MGIC INVESTMENT CORPORATION AND SUBSIDIARIES
EARNINGS PER SHARE (UNAUDITED)
Three Months Ended June 30,
Six Months Ended June 30,
(In thousands, except per share data)
2026
2025
2026
2025
Net income - basic and diluted
$ 182,145
$ 192,482
$ 347,448
$ 377,942
Basic weighted average common shares outstanding
209,923
236,333
213,012
240,218
Dilutive effect of unvested restricted stock units
1,022
1,638
1,536
1,991
Diluted weighted average common shares outstanding
210,945
237,971
214,548
242,209
Diluted earnings per share
$ 0.86
$ 0.81
$ 1.62
$ 1.56
NON-GAAP RECONCILIATIONS
Reconciliation of Income before tax / Net income to Adjusted pre-tax operating income / Adjusted net operating income
Three Months Ended June 30,
2026
2025
(In thousands, except per share amounts)
Pre-tax
Tax Effect
Net
(after-tax)
Pre-tax
Tax Effect
Net
(after-tax)
Income before tax / Net income
$ 229,928
$ 47,783
$ 182,145
$ 246,089
$ 53,607
$ 192,482
Adjustments:
Net realized investment (gains) losses
1,963
412
1,551
1,944
408
1,536
Adjusted pre-tax operating income / Adjusted
net operating income
$ 231,891
$ 48,195
$ 183,696
$ 248,033
$ 54,015
$ 194,018
Reconciliation of Net income per diluted share to Adjusted net operating income per diluted share
Weighted average shares - diluted
210,945
237,971
Net income per diluted share
$ 0.86
$ 0.81
Net realized investment (gains) losses
0.01
0.01
Adjusted net operating income per diluted share
$ 0.87
$ 0.82
Reconciliation of Income before tax / Net income to Adjusted pre-tax operating income / Adjusted net operating income
Six Months Ended June 30,
2026
2025
(In thousands, except per share amounts)
Pre-tax
Tax Effect
Net
(after-tax)
Pre-tax
Tax Effect
Net
(after-tax)
Income before tax / Net income
$ 436,756
$ 89,308
$ 347,448
$ 480,770
$ 102,828
$ 377,942
Adjustments:
Net realized investment (gains) losses
1,763
370
1,393
1,625
341
1,284
Adjusted pre-tax operating income / Adjusted
net operating income
$ 438,519
$ 89,678
$ 348,841
$ 482,395
$ 103,169
$ 379,226
Reconciliation of Net income per diluted share to Adjusted net operating income per diluted share
Weighted average shares - diluted
214,548
242,209
Net income per diluted share
$ 1.62
$ 1.56
Net realized investment (gains) losses
0.01
0.01
Adjusted net operating income per diluted share
$ 1.63
$ 1.57
MGIC INVESTMENT CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
June 30,
December 31,
June 30,
(In thousands, except per share data)
2026
2025
2025
ASSETS
Investments (1)
$ 5,717,441
$ 5,807,662
$ 5,818,478
Cash and cash equivalents
207,277
368,989
294,871
Restricted cash and cash equivalents
7,819
6,525
4,024
Reinsurance recoverable on loss reserves (2)
76,144
65,055
53,781
Home office and equipment, net
31,604
32,454
33,210
Deferred insurance policy acquisition costs
7,473
8,377
10,274
Deferred income taxes, net
131,243
18,512
41,818
Other assets
347,981
331,912
285,871
Total assets
$ 6,526,982
$ 6,639,486
$ 6,542,327
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Loss reserves (2)
$ 492,001
$ 474,884
$ 452,154
Unearned premiums
84,511
93,026
105,049
Senior notes
646,874
646,138
645,402
Other liabilities
290,237
277,887
184,778
Total liabilities
1,513,623
1,491,935
1,387,383
Shareholders' equity
5,013,359
5,147,551
5,154,944
Total liabilities and shareholders' equity
$ 6,526,982
$ 6,639,486
$ 6,542,327
Book value per share (3)
$ 24.27
$ 23.47
$ 22.11
(1) Investments include net unrealized gains (losses) on securities
$ (196,727)
$ (152,767)
$ (224,917)
(2) Loss reserves, net of reinsurance recoverable on loss reserves
$ 415,857
$ 409,829
$ 398,373
(3) Shares outstanding
206,603
219,367
233,138
MGIC INVESTMENT CORPORATION AND SUBSIDIARIES
ADDITIONAL INFORMATION - NEW INSURANCE WRITTEN
2026
2025
Year-to-date
Q2
Q1
Q4
Q3
Q2
2026
2025
New primary insurance written (NIW) (billions)
$ 17.8
$ 14.4
$ 17.1
$ 16.5
$ 16.4
$ 32.2
$ 26.6
Monthly (including split premium plans) and
annual premium plans
17.2
13.9
16.6
16.1
16.0
31.1
25.9
Single premium plans
0.6
0.5
0.5
0.4
0.4
1.1
0.7
Product mix as a % of primary NIW
Credit score < 680
5 %
5 %
5 %
4 %
4 %
5 %
4 %
>95% LTVs
15 %
14 %
15 %
17 %
13 %
14 %
13 %
>45% DTI
25 %
25 %
26 %
27 %
26 %
25 %
28 %
Singles
3 %
4 %
3 %
2 %
2 %
3 %
2 %
Refinances
10 %
21 %
17 %
6 %
6 %
15 %
6 %
New primary risk written (billions)
$ 4.6
$ 3.8
$ 4.4
$ 4.4
$ 4.3
$ 8.4
$ 6.9
MGIC INVESTMENT CORPORATION AND SUBSIDIARIES
ADDITIONAL INFORMATION - INSURANCE IN FORCE and RISK IN FORCE
2026
2025
Q2
Q1
Q4
Q3
Q2
Primary Insurance In Force (IIF) (billions)
$ 304.8
$ 302.7
$ 303.1
$ 300.8
$ 297.0
Total # of loans
1,105,114
1,106,958
1,112,727
1,111,855
1,107,526
Premium Yield
In force portfolio yield (1)
37.8
38.0
38.0
38.3
38.3
Premium refunds (2)
(0.2)
(0.3)
(0.4)
(0.3)
(0.1)
Accelerated earnings on single premium
0.2
0.2
0.3
0.2
0.2
Total direct premium yield
37.8
37.9
37.9
38.2
38.4
Ceded premiums earned, net of profit
commission and assumed premiums (3)
(6.5)
(6.8)
(6.7)
(5.9)
(5.4)
Net premium yield
31.3
31.1
31.2
32.3
33.0
Average Loan Size of IIF (thousands)
$ 275.8
$ 273.4
$ 272.4
$ 270.6
$ 268.2
Annual Persistency
83.3 %
84.0 %
84.8 %
85.0 %
84.7 %
Primary Risk In Force (RIF) (billions)
$ 81.8
$ 81.2
$ 81.2
$ 80.6
$ 79.5
By credit score (%) (4)
760 & >
45 %
45 %
45 %
45 %
44 %
740-759
18 %
18 %
18 %
18 %
18 %
720-739
14 %
14 %
14 %
14 %
14 %
700-719
10 %
10 %
10 %
10 %
10 %
680-699
7 %
7 %
7 %
7 %
7 %
660-679
3 %
3 %
3 %
3 %
3 %
640-659
2 %
2 %
2 %
2 %
2 %
639 & <
1 %
1 %
1 %
1 %
2 %
Average Coverage Ratio (RIF/IIF)
26.8 %
26.8 %
26.8 %
26.8 %
26.8 %
(1)
Total direct premiums earned, excluding premium refunds and accelerated premiums from single premium policy cancellations divided by average primary insurance in force.
(2)
Premium refunds and our estimate of refundable premium on our delinquency inventory divided by average primary insurance in force.
(3)
Ceded premiums earned, net of profit commissions and assumed premiums. Assumed premiums include our participation in GSE Credit Risk Transfer programs, of which the impact on the net premium yield was 0.3 bps in the second quarter of 2026.
(4)
The credit score at the time of origination for a loan with multiple borrowers is the lowest of the borrowers' "decision credit scores." A borrower's "decision credit score" is determined as follows: if there are three credit scores available, the middle credit score is used; if two credit scores are available, the lower of the two is used; if only one credit score is available, it is used.
MGIC INVESTMENT CORPORATION AND SUBSIDIARIES
ADDITIONAL INFORMATION - DELINQUENCY STATISTICS
2026
2025
Q2
Q1
Q4
Q3
Q2
Primary IIF - Delinquent Roll Forward - # of
Loans
Beginning Delinquent Inventory
27,006
27,072
25,747
24,444
25,438
New Notices
12,433
13,791
14,489
13,582
11,970
Cures
(12,814)
(13,393)
(12,632)
(11,814)
(12,588)
Paid claims
(455)
(457)
(359)
(359)
(341)
Rescissions and denials
(18)
(7)
(13)
(18)
(35)
Other items removed from inventory (1)
—
—
(160)
(88)
—
Ending Delinquent Inventory
26,152
27,006
27,072
25,747
24,444
Primary IIF Delinquency Rate (count based)
2.37 %
2.44 %
2.43 %
2.32 %
2.21 %
Primary claim received inventory included in ending delinquent inventory
355
383
398
333
295
Composition of Cures
Reported delinquent and cured
intraquarter
3,031
3,973
3,917
3,606
3,268
Number of payments delinquent prior to
cure
3 payments or less
6,391
6,262
5,734
5,141
5,708
4-11 payments
2,834
2,702
2,466
2,500
2,887
12 payments or more
558
456
515
567
725
Total Cures in Quarter
12,814
13,393
12,632
11,814
12,588
Composition of Paids
Number of payments delinquent at time
of claim payment
3 payments or less
—
1
—
1
—
4-11 payments
48
57
32
32
32
12 payments or more
407
399
327
326
309
Total Paids in Quarter
455
457
359
359
341
Aging of Primary Delinquent Inventory
Consecutive months delinquent
3 months or less
9,268
35 %
9,655
36 %
10,389
38 %
9,817
38 %
8,552
35 %
4-11 months
9,682
37 %
10,289
38 %
9,559
35 %
8,858
34 %
8,868
36 %
12 months or more
7,202
28 %
7,062
26 %
7,124
27 %
7,072
28 %
7,024
29 %
Number of payments delinquent
3 payments or less
12,874
49 %
13,376
49 %
14,121
52 %
13,406
52 %
12,260
50 %
4-11 payments
8,905
34 %
9,364
35 %
8,747
32 %
8,122
32 %
7,963
33 %
12 payments or more
4,373
17 %
4,266
16 %
4,204
16 %
4,219
16 %
4,221
17 %
(1) Items removed from inventory are associated with commutations of coverage on non-performing policies.
MGIC INVESTMENT CORPORATION AND SUBSIDIARIES
ADDITIONAL INFORMATION - RESERVES and CLAIMS PAID
2026
2025
Year-to-date
Q2
Q1
Q4
Q3
Q2
2026
2025
Reserves (millions)
Primary Direct Loss Reserves
$ 490
$ 497
$ 472
$ 450
$ 450
Other Gross Loss Reserves
2
2
3
2
2
Total Gross Loss Reserves
$ 492
$ 499
$ 475
$ 452
$ 452
Primary Average Direct Reserve
Per Delinquency
$ 18,732
$ 18,398
$ 17,449
$ 17,462
$ 18,395
Net Paid Claims (millions) (1)
$ 21
$ 17
$ 16
$ 14
$ 12
$ 38
$ 24
Total primary (excluding settlements)
24
20
16
14
13
44
25
Rescission and NPL settlements
—
—
3
1
—
—
—
Reinsurance
(5)
(4)
(3)
(2)
(2)
(9)
(4)
LAE and other
2
1
1
1
1
3
3
Reinsurance Terminations (1)
—
—
(1)
—
—
—
—
Primary Average Claim Payment
(thousands) (2)
$ 54.7
$ 42.7
$ 46.1
$ 39.7
$ 36.5
$ 48.6
$ 37.6
(1) Net paid claims, as presented, does not include amounts received in conjunction with terminations or commutations of reinsurance agreements.
(2) Excludes amounts paid in settlement disputes for claims paying practices and/or commutations of policies.
MGIC INVESTMENT CORPORATION AND SUBSIDIARIES
ADDITIONAL INFORMATION - REINSURANCE AND MI RATIOS
2026
2025
Year-to-date
Q2
Q1
Q4
Q3
Q2
2026
2025
Quota Share Reinsurance
% NIW subject to reinsurance
87.6 %
86.4 %
86.2 %
88.2 %
87.7 %
87.1 %
87.4 %
Ceded premiums written and earned (millions)
$ 35.6
$ 37.8
$ 38.9
$ 32.0
$ 28.1
$ 73.4
$ 58.0
Ceded losses incurred (millions)
$ 8.4
$ 12.0
$ 11.9
$ 6.1
$ 4.0
$ 20.4
$ 10.4
Ceding commissions (millions) (included in
underwriting and other expenses)
$ 14.1
$ 13.4
$ 13.4
$ 12.9
$ 12.1
$ 27.5
$ 23.8
Profit commission (millions) (included in ceded
premiums)
$ 35.1
$ 29.1
$ 28.3
$ 32.6
$ 32.3
$ 64.2
$ 61.0
Excess-of-Loss Reinsurance
Ceded premiums earned (millions)
$ 16.3
$ 17.8
$ 14.8
$ 16.2
$ 15.4
$ 34.1
$ 30.1
GAAP loss ratio
4.6 %
14.1 %
13.2 %
4.5 %
(1.2 %)
9.3 %
1.4 %
GAAP underwriting expense ratio
19.8 %
20.5 %
19.9 %
21.1 %
21.9 %
20.2 %
22.2 %
Mortgage Guaranty Insurance Corporation - Risk to
Capital
9.9:1
9.6:1
10.0:1
9.7:1
10.0:1
Combined Insurance Companies - Risk to Capital
9.9:1
9.6:1
10.0:1
9.7:1
10.0:1
Safe Harbor Statement
Forward Looking Statements and Risk Factors:
This release contains forward looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on current assumptions, expectations, and projections and are subject to risks and uncertainties that could cause actual results to differ materially. Forward-looking statements consist of statements which relate to matters other than historical fact, including matters that inherently refer to future events. Among others, statements that include words such as "believe," "anticipate," "will" or "expect," or words of similar import, are forward-looking statements. Our actual results may differ, possibly materially, from those expressed or implied in such forward-looking statements. Factors and uncertainties that could cause actual results to differ can be found in the "Risk Factors" and "Forward-Looking Statements" sections included in MGIC Investment Corporation's Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. Such factors and uncertainties include, without limitation:
Our results are dependent on U.S. economic and housing market conditions; adverse conditions may cause a decrease in new insurance written and/or an increase in delinquencies, claim frequency, and claim severity. Additionally, if the volume of low down payment home mortgage originations declines, the amount of new insurance that we write could decline. The substantial majority of MGIC's new insurance written is for loans purchased by Fannie Mae and Freddie Mac ("the GSEs"); therefore, changes to their business practices or legislative, regulatory or administrative reforms could materially affect our business and financial results. Failure to comply with the GSEs' Private Mortgage Insurance Eligibility Requirements ("PMIERs") could limit our operations, or at the extreme, lead to suspension or termination of eligibility to insure loans purchased by the GSEs. Loss reserve estimates are subject to uncertainties; actual losses may differ materially from estimates. Additionally, because reserves are established only upon delinquency, losses may disproportionately impact earnings in certain periods. We operate in a highly regulated environment at both the federal and state levels; regulatory changes or enforcement actions may adversely affect our operations and/or financial results. If we fail to meet the State Capital Requirements of Wisconsin, we could be prevented from writing new business in all jurisdictions; we could be prevented from writing new business in a particular jurisdiction if we fail to meet the state capital requirements of that jurisdiction. Pandemics, severe weather events, and climate related developments may negatively affect home prices and affordability, potentially leading to an increase in delinquencies, claim frequency, and claim severity. Actions by government authorities, including FHFA and the GSEs, to address climate related issues could similarly affect our results. The availability, cost, and capital credit for reinsurance may change due to market conditions or GSE actions, potentially requiring us to retain more risk and maintain additional capital. Our financial results may be impacted if lenders and investors seek alternatives to private mortgage insurance. In addition, changes in GSE programs, growth in government market share, or changes to regulatory capital rules to limit capital relief for mortgage insurance could affect our business in similar ways. The premium rates we charge may prove inadequate due to unknown future economic conditions, modelling limitations or errors, or other unexpected events. The length of time our insurance policies remain in force ("persistency") affects our results. Among other things, persistency can be influenced by interest rates, borrower equity, refinancing activity, and mortgage insurance cancellation requirements. Instability in financial markets or counterparty failures, including by reinsurers or mortgage servicers, could increase our credit risk and losses. Ineffective risk management programs, inaccurate data or model errors could impair our ability to identify and respond to risks, and materially adversely affect our business, results of operations, and financial condition. Technology system failures, cybersecurity breaches, or data privacy incidents could materially disrupt operations and cause financial and reputational damage. Changes in our underwriting practices and mix of business have the potential to increase risk and negatively affect our financial results. Our business depends on hiring and retaining experienced management and key personnel; the failure to do so could disrupt operations and negatively impact our financial condition. The mortgage insurance market is highly competitive. Competition from private mortgage insurers, government programs, and potential new market entrants —combined with pricing pressure and shifting customer preferences and relationships—could lead to a reduction in our new insurance written. Adverse rating agency actions could affect our competitiveness, GSE eligibility, and access to capital. Litigation and regulatory proceedings could result in fines, settlements, operational restrictions, or reputational harm. Our investment portfolio is exposed to risks that could adversely impact our operations and financial results. Future capital needs could require issuance of debt or equity, potentially diluting shareholders. Our stock price may fluctuate due to economic, industry, regulatory, or company specific developments. Regulatory limits on dividends from our insurance subsidiaries have the potential to constrain holding company liquidity and our ability to pay shareholder dividends or repurchase stock in the future. We are not undertaking any obligation to update any forward-looking statements or other statements we may make even though these statements may be affected by events or circumstances occurring after the forward looking statements or other statements were made. No investor should rely on the fact that such statements are current at any time other than the time at which this press release was delivered for dissemination to the public.
While we communicate with security analysts from time to time, it is against our policy to disclose to them any material non-public information or other confidential information. Accordingly, investors should not assume that we agree with any statement or report issued by any analyst irrespective of the content of the statement or report, and such reports are not our responsibility.
SOURCE MGIC Investment Corporation
