MGIC Investment Shares Gain 2.3% as Q2 Earnings Top Estimates

Shares of MGIC Investment Corporation MTG gained 2.3% in the last three trading session as the insurer’s bottom line beat expectations. MTG reported second-quarter 2025 operating net income per share of 82 cents, which beat the Zacks Consensus Estimate by 17.1%. Moreover, the bottom line increased 6.5% year over year.

MGIC Investment recorded total operating revenues of $306 million, which remained flat year over year on higher net investment income, other revenues and premiums earned. The top line missed the consensus mark by 0.4%.

MGIC Investment Corporation Price, Consensus and EPS Surprise

MGIC Investment Corporation price-consensus-eps-surprise-chart | MGIC Investment Corporation Quote

Operational Update

Insurance in force increased 1.9% from the prior-year quarter to $297 billion, which missed the Zacks Consensus Estimate of $299 billion.

The insurer witnessed a 4.6% year-over-year increase in primary delinquency to 24,444 loans.

Net premiums written increased 1.7% year over year to $237.4 million. The figure was higher than our estimate of $230.9 million.

Net investment income decreased 0.8% year over year to $61 million. Our estimate was $67.3 million.

Persistency — the percentage of insurance remaining in force from one year prior — was 84.7% as of June 30, 2025, down from 85.4% reported in the year-ago quarter.

New insurance written was $16.4 billion, up 21.5% year over year. Our estimate was $13.2 billion.

Net underwriting and other expenses totaled $52.1 million, down 5% year over year.

For the quarter under review, the loss ratio was negative 1.2% compared with negative 7.5% in the second quarter of 2024.

Financial Update

Book value per share, a measure of net worth, increased 12.9% from 2024-end to $22.11 as of June 30, 2025.

Shareholder equity was $5.2 billion as of June 30, 2025, down 0.3% from 2024-end.

MGIC's PMIERs available assets totaled $5.7 billion, or $2.4 billion above its Minimum Required Assets as of June 30, 2025.

Assets were $6.5 billion as of June 30, 2024, down 0.1% from the 2024-end level. Debt was $645 million as of June 30, 2025, which increased 0.1% from the 2024-end level.

Capital Deployment

MGIC Investment repurchased 7.1 million shares worth $180.7 million

In April 2025, the board approved an additional share repurchase program that authorized it to purchase up to $750 million of shares prior to Dec. 31, 2027.

Through July 25, 2025, MTG repurchased an additional 2.6 million shares for $68 million of holding company cash.

MGIC Investment paid $400 million in dividends to the holding company and 13 cents per share to shareholders in the second quarter. The board also declared a dividend of 15 cents per share to shareholders to be paid on Aug. 21, 2025, to shareholders of record as of Aug. 7, 2025.

Zacks Rank

MGIC Investment currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Insurers

Prudential Financial, Inc. PRU reported second-quarter 2025 adjusted operating income of $3.58 per share, which beat the Zacks Consensus Estimate by 11.5%. The bottom line rose 5.6% year over year. Total revenues of $13.5 billion beat the Zacks Consensus Estimate by 0.2% but declined 2.4% year over year. The decrease in revenues was due to lower premiums.Total benefits and expenses amounted to $11.8 billion, which declined 3.6% year over year in the second quarter.

Everest Group, Ltd.’s EG second-quarter 2025 operating income of $17.36 per share beat the Zacks Consensus Estimate by 14.7%. The bottom line increased 3% year over year. Everest Group’s total operating revenues of $4.5 billion increased 6.3% year over year on higher premiums earned and net investment income. The top line beat the consensus mark by 2%. Gross written premiums deteriorated 0.7% year over year to $4.7 billion due to a decline of 3.3% in Insurance, partially offset by 1.6% growth in Reinsurance. Our estimate was $5 billion.Net investment income was $532 million, which increased 0.7% year over year.

Chubb Limited CB reported second-quarter 2025 core operating income of $6.14 per share, which outpaced the Zacks Consensus Estimate by 4.2%. The bottom line increased 14.1% year over year. Net premiums written improved 6.3% year over year to $14.2 billion in the quarter, which is in line with the Zacks Consensus Estimate. Our estimate was pegged at $14 billion. Net investment income was $1.5 billion, up 6.8 % year over year. The Zacks Consensus Estimate was pegged at $1.8 billion, while our estimate for the same was $1.9 billion. Revenues of $14.8 million missed the Zacks Consensus Estimate by a whisker but improved 6.9% year over year.

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