MGIC Q4 Earnings Beat Estimates, Revenues Miss, Insurance in Force Up Y/Y

MGIC Investment Corporation MTG reported fourth-quarter 2025 operating net income per share of 75 cents, which beat the Zacks Consensus Estimate by 2.7%. The bottom line also improved 4.2% year over year.

Total operating revenues declined 0.9% year over year to $298.7 million, attributable to lower net premiums earned and other revenues. The top line missed the Zacks Consensus Estimate by 2.9%.

The quarterly results reflected stable investment income, partially offset by lower net premiums earned and other revenues.

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 2.6% year over year to $303.1 billion, exceeding the Zacks Consensus Estimate of $295.5 billion as well as our estimate of $295.6 billion. Meanwhile, primary delinquency rose 1.1% to 27,072 loans during the quarter.

Net premiums written declined 0.7% year over year to $230.5 million, missing our estimate of $234.3 million. Meanwhile, net investment income increased 0.5% year over year to $61.6 million, but came in below our estimate of $62.1 million and the Zacks Consensus Estimate of $62.4 million.

Persistency, the percentage of insurance remaining in force from one year earlier was 84.8% as of Dec. 31, 2025, unchanged from the year-ago quarter’s level. Meanwhile, new insurance written increased 7.5% year over year to $17.1 billion.

Underwriting and other expenses, net, declined 6.7% year over year to $45.8 million. However, underwriting performance weakened materially, with the loss ratio surging to 13.2% from 3.6% in the prior-year quarter.

Total losses and expenses increased 28.8% year over year to $85.9 million, attributable to a sharp rise in losses incurred, net, which nearly doubled from the year-ago period.

Financial Update

Book value per share, a measure of net worth, increased 12.7% year over year to $23.47 as of Dec. 31, 2025. Shareholder equity was $5.1 billion as of Dec. 31, 2025, down 0.5% from the 2024-end level.

MGIC Investment's PMIERs Available Assets totaled $5.7 billion, or $2.5 billion above its Minimum Required Assets as of Dec. 31, 2025. Total assets were $6.6 billion as of Dec. 31, 2025, up 1.4% from 2024-end level. Senior notes totaled $646.1 million as of Dec. 31, 2025, reflecting a 0.2% increase from the 2024-end level.

Capital Deployment

The company repurchased 6.8 million shares of common stock for $189.1 million and paid a dividend of $400 million to the holding company. MGIC also paid a dividend of 15 cents per common share to shareholders.

MTG executed a traditional excess of loss reinsurance transaction effective Dec. 1, 2025, which provides $250 million of reinsurance coverage on NIW from 2021.

MTG also bought back shares worth $73.2 million in January 2026.

The board approved a 15 cents dividend per common share to shareholders of record on Feb. 17, 2026, to be paid on March 6, 2026.

In January, through an insurance-linked note transaction, MTG executed a $324 million excess of loss reinsurance agreement that covers certain policies written between Jan. 1, 2022, and March 31, 2025.

Full-Year Highlights

MTG reported full-year 2025 operating net income per share of $3.14, which beat the Zacks Consensus Estimate by 11.7%. The bottom line also increased 8.6% year over year.

Total operating revenues were $1.2 billion, up 0.5% year over year on higher net investment income. However, the figure missed the Zacks Consensus Estimate by 1.5%.

Net investment income increased 0.7% year over year to $246.26 million, but came in below our estimate of $246.8 million.

Zacks Rank

MTG currently carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Insurers

The Travelers Companies, Inc. TRV reported fourth-quarter 2025 core income of $11.13 per share, which beat the Zacks Consensus Estimate by 32% and improved 22% year over year. Travelers’ total revenues increased 3.2% from the year-ago quarter to $12.4 billion, primarily driven by higher premiums, net investment income and other revenues. The top line beat the Zacks Consensus Estimate by 0.08%.

Net written premiums increased 1% year over year to a record $10.8 billion. Net investment income increased 10.3% year over year to $1 billion. The figure matched the Zacks Consensus Estimate.

The Progressive Corporation’s PGR fourth-quarter 2025 earnings per share of $4.67 beat the Zacks Consensus Estimate by 5.2%. The bottom line increased 14.4% year over year.

Operating revenues increased 10.6% year over year to $22.49 billion and beat the consensus estimate by 2.5%. Net premiums written were $19.5 billion in the quarter, up 8% from $18.1 billion a year ago.

Selective Insurance Group SIGI reported fourth-quarter 2025 operating income of $2.57 per share, which marginally beat the Zacks Consensus Estimate by 0.3%. The bottom line increased 59% year over year. The company’s quarterly performance reflects a huge underwriting income, average renewal pure price increase, and lower loss and loss expenses.

Total revenues of $1.4 billion increased 8.3% from the year-ago quarter’s level, driven primarily by higher net premiums earned and net investment income. The top line marginally exceeded the Zacks Consensus Estimate by 0.1%.

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