MGIC Investment Corporation (NYSE: MTG) reported first‑quarter 2026 results on April 29, 2026, delivering net income of $165.3 million and earnings per share of $0.76, a beat of the consensus estimate of $0.73. Total revenue reached $297.1 million, up 22.8% from $243.7 million in the same quarter a year earlier, but fell short of the $302.06 million consensus.
Operating performance was supported by a net premium yield of 31.1 basis points and a net operating income of $165.1 million. Insurance‑in‑force stood at $302.7 billion, while the primary delinquency inventory totaled 27,006 loans and the delinquency rate was 2.44%. Return on equity for the quarter was 13.0%.
The EPS beat was largely driven by disciplined underwriting and cost control, which helped maintain a net operating income that exceeded the prior‑year level. New insurance written rose 41% to $14 billion, providing a strong growth engine that offset the revenue miss.
Revenue fell short of the $302.06 million consensus because net premiums earned were lower than expected, reflecting a softer market for mortgage insurance premiums and a decline in other revenue streams. The flat insurance‑in‑force balance suggests that new business growth is being offset by cancellations and principal reductions.
The loss ratio climbed to 14.1% from 3.9% in Q1 2025, driven by higher claim severity and a larger portfolio of older loans. The increase in loss reserves, including a $31 million favorable reserve development, indicates that the company is proactively managing future claim costs.
CEO Tim Mattke said, "We had a strong start to the year, successfully executing on our business strategies and generating solid first quarter results." He added, "We achieved a return on equity of 13% while continuing to return meaningful capital to our shareholders." CFO Nathaniel Howe Colson noted, "As Tim discussed, we had solid financial results for the first quarter. We earned net income of $0.76 per diluted share compared to $0.75 per diluted share last year." He also highlighted the favorable reserve development.
Investors reacted cautiously, focusing on the revenue miss and the sharp rise in the loss ratio, which tempered enthusiasm for the earnings beat.
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