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Jun 30
MGIC Q2 2025 Earnings Report
MGIC Investment Corporation reported its second quarter 2025 results, with net income of $192.5 million and adjusted net operating income of $194.0 million.
Key Takeaways
MGIC Investment Corporation delivered a strong second quarter in 2025, achieving a net income of $192.5 million and an annualized return on equity of 15%. The company demonstrated robust capital management by returning $212 million to shareholders through share repurchases and dividends, further supported by a 15% increase in its common stock dividend.
Net income for Q2 2025 was $192.5 million, or $0.81 per diluted share.
Adjusted net operating income (Non-GAAP) for Q2 2025 was $194.0 million, or $0.82 per diluted share.
New insurance written (NIW) significantly increased to $16.4 billion in Q2 2025 from $13.5 billion in Q2 2024.
The company returned $212 million of capital to shareholders through share repurchases and dividends during the quarter.
MGIC
MGIC
MGIC Revenue by Segment
Revenue by Segment
Net Premiums Earned Revenue
CapyFin.comNet Investment Income Revenue
CapyFin.comNet Gains (Losses) on Investments Revenue
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CapyFin.com Forward Guidance
MGIC's forward guidance indicates continued focus on capital management and shareholder returns, with an additional share repurchase program approved and a higher dividend declared for the third quarter of 2025. The company also highlights ongoing reinsurance activities to manage risk.
Positive Outlook
- Approved an additional share repurchase program of up to $750 million through December 31, 2027.
- Declared a dividend of $0.15 per common share for Q3 2025, a 15% increase.
- Executed two traditional excess-of-loss reinsurance transactions providing significant coverage for 2025 and 2026.
- Repurchased an additional 2.6 million shares for $68.0 million through July 25, 2025.
- MGIC paid a $400 million dividend to the holding company, enhancing liquidity.
Challenges Ahead
- Potential for increased inflation rates, strained supply chains, and increased volatility in financial markets due to global events.
- Risk of cybersecurity incidents increasing, potentially impacting operations and financial results.
- Downturns in the domestic economy or declines in home prices could lead to increased loan delinquencies and losses.
- Changes in GSE business practices or federal legislation could reduce revenues or increase losses.
- Reinsurance may be unavailable at current levels and prices, or GSEs may reduce capital credit for reinsurance transactions.