MGIC Investment (MTG) investor relations material

Executive summary

• Net income for Q1 2026 was $165.3 million, or $0.76 per diluted share, down from $185.5 million in Q1 2025, with annualized ROE at 13.0%.

• Book value per share increased to $23.63, up from $21.40 year-over-year.

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

• Insurance in force ended at $303.1 billion, up 3% year-over-year and flat sequentially.

• Adjusted net operating income was $165.1 million, or $0.76 per share, down 11% year-over-year.

Financial highlights

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

• Net investment income was $61.7 million, stable year-over-year.

• 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, improving 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

• Insurance in force and NIW for full-year 2026 are expected to remain relatively flat.

• In-force premium yield anticipated to stay flat, though may fluctuate due to reinsurance and single premium policy impacts.

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

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

• Management emphasizes strong positioning and disciplined capital allocation to navigate dynamic environments.