MGIC Investment (MGC) Q2 2026 Earnings Report

The call emphasized strong profitability, disciplined expense management, meaningful capital flexibility through an expanded reinsurance program, and continued capital returns to shareholders. Credit metrics showed some normalization with a moderate year-over-year rise in delinquencies and slightly lower persistency and premium yields, but management highlighted favorable reserve development, low early payment defaults, and confidence in underwriting. Insurance-in-force growth remains modest given market constraints. Overall, positive operational and capital-management developments outweighed the moderate credit and growth headwinds.

Management's guidance emphasized disciplined capital and expense management: operating expenses are now expected toward the low end of the $190–$200 million full‑year range, and underwriting continues to use a 7.5% initial claim‑rate assumption on new delinquency notices with seasonality expected to push delinquencies higher in H2 (Q2 count‑based delinquency fell 7 bps to 2.37%, +16 bps YoY and 43 bps below Q2‑2019); in‑force premium yield was ~38 bps and is expected to track similarly, investment book yield is ~4% (Q2 investment income $59M), and Q2 underwriting and other expenses were $46M (down from $52M). Capital guidance highlighted $6.0B of balance‑sheet capital, a reinsurance program that reduced PMIERs required assets by ~$3.1B (≈52%) and an XOL providing up to $168M protection on eligible 2027 NIW; Q2 NIW was $18B (+8.5% YoY), insurance in force $305B (+2.6% YoY), net income $182M (EPS $0.86, annualized ROE 14.5%), book value per share $24.27 (+10% YoY), and capital return plans include ongoing buybacks (6.6M shares/$177M in Q2; $746M repurchased over the prior four quarters) and dividends (Q2 dividend 15¢, recently increased to $0.17 quarterly after $135M paid prior four quarters; combined repurchases+dividends were 124% of net income over that period).