MGIC tops Q3 profit estimates; revenue in line with expectations

MGIC Investment (MTG) said on Nov. 4 that it earned $175.0 million, or 85 cents per diluted share, in the third quarter of 2026, compared with $191.1 million, or 83 cents, a year earlier.

Adjusted net operating income was $174.7 million, or 85 cents per share, which topped the 82-cent consensus estimate for adjusted earnings. Revenue of $299.08 million was in line with the $301.63 million consensus estimate.

Here's how the company did:

• Adjusted EPS: 85 cents vs. 83 cents a year earlier, 82 cents expected
• Revenue: $299.08 million vs. $304.51 million a year earlier, in line with the $301.63 million consensus estimate

Mortgage Guaranty Insurance Corporation, the principal subsidiary of MGIC Investment, provides mortgage insurance that helps borrowers qualify for loans with lower down payments.

CEO Tim Mattke said, “Our third quarter results demonstrate the continued strength and consistency of our business.” He added that the company remains focused on financial strength and serving its customers.

Revenue fell in each of the last three quarters, from $304.5 million in the third quarter of 2025 to $295.4 million in the second quarter of 2026, according to its SEC filings.

Losses and expense ratios

Losses incurred, net were $23.9 million, compared with $10.9 million a year earlier. The loss ratio was 10.0%, up from 4.5%. The underwriting expense ratio fell to 19.1% from 21.1%.

New insurance written was $17.1 billion, up from $16.5 billion a year earlier. Insurance in force reached $307.3 billion, compared with $300.8 billion.

Capital returns and dividends

In the quarter, the company repurchased 5.1 million shares for $152.5 million and paid a dividend of 17 cents per share. In October it repurchased another 2.5 million shares for $70.2 million.

The company declared a quarterly dividend of 17 cents per share, payable Nov. 23, 2026, to shareholders of record at the close of business on Nov. 12, 2026.

Book value per share was $24.06 at Sept. 30, 2026, compared with $22.87 a year earlier.

Reinsurance changes

The company agreed to terms for a 40% quota share reinsurance transaction covering eligible 2028 new insurance written, and a 20% quota share covering eligible 2029 new insurance written, with unaffiliated reinsurers.

It also executed an excess-of-loss reinsurance transaction providing up to $168 million of coverage on eligible 2027 new insurance written. The quota share cede rate on its 2023 transaction will fall from 25% to 23.98%, effective Dec. 31, 2026.

The company exercised its option to terminate the reinsurance agreement with Home Re 2021-2, Ltd., and the related insurance-linked notes were redeemed in full.

The company will hold a conference call on Nov. 5, 2026, at 10:00 a.m. ET.