Why Is MGIC (MTG) Up 3.2% Since Last Earnings Report?

A month has gone by since the last earnings report for MGIC Investment (MTG). Shares have added about 3.2% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is MGIC due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.

MGIC Investment Q3 Earnings Beat Estimates, Revenues Fall Y/Y

MGIC Investment Corporation reported third-quarter 2025 operating net income per share of 83 cents, which beat the Zacks Consensus Estimate by 15.2%. 
Moreover, the bottom line increased 7.8% year over year. The quarterly results reflected higher insurance in force, primary delinquency inventory and improved net investment income, partially offset by lower Persistency and new insurance written.

MGIC Investment recorded total operating revenues of $304 million, which decreased 0.6% year over year due to lower premiums earned and other revenue. The top line missed the Zacks Consensus Estimate by 1.3%.

Operational Update

Insurance in force increased 2.7% from the prior-year quarter to $300.8 billion. The Zacks Consensus Estimate was pegged at $298 billion. The figure was higher than our estimate of 298.4 billion. The insurer witnessed a 2.6% increase in primary delinquency to 25,747 loans.

Net premiums written increased 0.5% year over year to $235.2 million. The figure was higher than our estimate of $233.4 million. Net investment income increased 0.2% year over year to $62.2 million. Our estimate was $65.8 million. The Zacks Consensus Estimate was pegged at $63 million.

Persistency — the percentage of insurance remaining in force from one year prior — was 85% as of Sept. 30, 2025, down from 85.3% in the year-ago quarter. New insurance written was $16.5 billion, down 4% year over year.

Net underwriting and other expenses totaled $49.6 million, down 7% year over year. For the quarter under review, the loss ratio was 4.5% compared with (4%) for the third quarter of 2024.

Financial Update

Book value per share, a measure of net worth, increased 10.7% year over year to $22.87 as of Sept. 30, 2025. Shareholder equity was $5.2 billion as of Sept. 30, 2025, down 2.3% from 2024-end.

MGIC Investment's PMIERs Available Assets totaled $5.9 billion, or $$2.5 billion above its Minimum Required Assets as of Sept. 30, 2025. Assets were $6.6 billion as of Sept. 30, 2025, up 1.2% from 2024-end. Debt was $645.8 million as of Sept. 30, 2025, up 0.2% from the 2024-end level.

Capital Deployment

The company bought back 7 million shares in the third quarter for $187.9 million. In the twelve months ended Sept 30, 2025, MGIC paid $800 million in dividends to the holding company.

Through October 24, 2025, MTG repurchased an additional 2.4 million shares for $65.7 million. The board also declared a dividend of 15 cents per share to shareholders to be paid on Nov. 20, 2025, to shareholders of record at the close of business on Nov. 6, 2025.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates.

VGM Scores

At this time, MGIC has a subpar Growth Score of D, a grade with the same score on the momentum front. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, MGIC has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry Player

MGIC is part of the Zacks Insurance - Multi line industry. Over the past month, Everest Group (EG), a stock from the same industry, has gained 0.9%. The company reported its results for the quarter ended September 2025 more than a month ago.

Everest Group reported revenues of $4.32 billion in the last reported quarter, representing a year-over-year change of +0.8%. EPS of $7.54 for the same period compares with $14.62 a year ago.

For the current quarter, Everest Group is expected to post earnings of $12.15 per share, indicating a change of +166.1% from the year-ago quarter. The Zacks Consensus Estimate has changed -6.9% over the last 30 days.

Everest Group has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.

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This article originally published on Zacks Investment Research (zacks.com).

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