MTG

A month has gone by since the last earnings report for Assurant (AIZ). Shares have lost about 5.8% in that time frame, underperforming the S&P 500. But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Assurant due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Assurant, Inc. before we dive into how investors and analysts have reacted as of late. AIZ Q2 Earnings Beat Estimates on Lifestyle and Housing StrengthAssurant, Inc. reported second-quarter 2026 adjusted earnings of $6.41 per share, which beat the Zacks Consensus Estimate of $5.16 by 24.2%. The bottom line increased 25.7% year over year. Revenues rose 9.4% to $3.46 billion and surpassed the consensus estimate of $3.40 billion by 1.8%. Results benefited from strong Global Lifestyle and Global Housing earnings, lower catastrophe losses and growth in segment net earned premiums, fees and other income. Net earned premiums increased 6.9% year over year to $2.77 billion. The figure was higher than our estimate of $2.71 billion. Fees and other income climbed 19.6% year over year to $554.6 million, reflecting continued expansion across the company’s protection and service programs. The figure was higher than our estimate of $500.3 million.Net investment income advanced 10.6% year over year to $142.4 million. The figure was lower than our estimate of $153.1 million. Total segment net earned premiums, fees and other income grew 8.9% to $3.32 billion, supported by gains in both operating segments. Global Lifestyle revenues increased 9.5% year over year to $2.67 billion. The figure was higher than our estimate of $2.61 billion. Net earned premiums, fees and other income rose 9.4% year over year to $2.57 billion, primarily due to higher global supply-chain volumes, device protection programs, extended service contracts and financial services contributions. The figure was higher than our estimate of $2 billion.Adjusted EBITDA increased 21.4% year over year to $244.4 million. The figure was higher than our estimate of $196.2 million. Connected Living adjusted EBITDA surged 29.3% year over year to $170.4 million, including $10 million of favorable non-run-rate benefits. Excluding those benefits, earnings rose 22%, driven by global mobile growth and financial services.Global Automotive adjusted EBITDA increased 6.3% year over year to $74 million, aided by growth within global partnerships. The number of protected mobile devices rose 6.2% to 69 million, while serviced devices increased 32.1% to 7.4 million. Global Housing revenues increased 7% year over year to $783.4 million. The figure was higher than our estimate of $748.1 million. Net earned premiums, fees and other income advanced 7.2% year over year to $747.8 million, primarily reflecting Homeowners growth in specialty products and lender-placed insurance, along with lower catastrophe reinsurance costs. The figure was higher than our estimate of $709.3 million.Adjusted EBITDA rose 28.2% year over year to $274.8 million. The figure was higher than our estimate of $217.4 million. Excluding reportable catastrophes, adjusted EBITDA increased 17.5% to $287 million, mainly due to favorable non-catastrophe loss experience and lower-than-typical claims frequency.Reportable catastrophe losses declined to $12.2 million from $29.8 million. The Global Housing combined ratio improved 560 basis points year over year to 69.8%, while the loss ratio decreased 620 basis points year over year to 33.6%. Results were partly offset by $12 million of lower favorable prior-period reserve development. Total benefits, losses and expenses increased 7.2% year over year to $3.08 billion. The figure was higher than our estimate of $3 billion. Cost of sales jumped 30.8% to $302.6 million, while general expenses increased 10.2% to $668.8 million. Corporate and Other recorded an adjusted EBITDA loss of $40 million, wider than the year-ago loss of $29.8 million. The deterioration reflected higher employee-related expenses and organic investments supporting the Home Warranty business, partially offset by increased investment income from a larger asset base. Despite the expense increase, the pre-tax income margin expanded 180 basis points to 11.3%. The net income margin improved 130 basis points to 9%, supported by stronger operating earnings and lower catastrophe losses. Holding company liquidity totaled $911 million as of June 30, 2026, exceeding the company’s minimum target by $686 million. Operating segments paid $235 million in dividends to the holding company during the quarter. Assurant repurchased about 310,000 shares for $75 million and paid $48 million in common stock dividends. From July 1 through July 31, the company bought back an additional 108,000 shares for $30 million, leaving $544 million under its authorization. Total assets were $36.08 billion, while stockholders’ equity increased to $6.10 billion from $5.87 billion at the end of 2025. The debt-to-total-capital ratio improved 90 basis points year over year to 26.6%. Assurant now expects adjusted EBITDA, excluding reportable catastrophes, to increase by a mid-single-digit percentage in 2026. Excluding the impact of lower favorable prior-year reserve development, underlying growth is expected to approximate 10%. Global Lifestyle adjusted EBITDA is projected to rise by a low-double-digit percentage, supported by Connected Living and Global Automotive. Global Housing adjusted EBITDA, excluding catastrophes, is expected to grow modestly. Adjusted earnings per share, excluding reportable catastrophes, are also expected to increase by a mid-single-digit percentage. Corporate and Other’s adjusted EBITDA loss is now projected at about $145 million. Management expects share repurchases toward the upper end of its previously announced $300-$350 million range. Since the earnings release, investors have witnessed a flat trend in estimates revision. At this time, Assurant has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. However, the stock has a grade of A on the value side, putting it in the top quintile for value investors. Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in. Assurant has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months. Assurant is part of the Zacks Insurance - Multi line industry. Over the past month, MGIC Investment (MTG), a stock from the same industry, has gained 1.5%. The company reported its results for the quarter ended June 2026 more than a month ago. MGIC reported revenues of $297.61 million in the last reported quarter, representing a year-over-year change of -2.6%. EPS of $0.87 for the same period compares with $0.82 a year ago. MGIC is expected to post earnings of $0.78 per share for the current quarter, representing a year-over-year change of -6%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.6%. MGIC has a Zacks Rank #1 (Strong Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Assurant, Inc. (AIZ) : Free Stock Analysis Report MGIC Investment Corporation (MTG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

MGIC Investment Corporation MTG appears well positioned to sustain attractive earnings and capital returns in the near term. However, the earnings mix could shift as mortgage-insurance credit conditions gradually normalize.New insurance written (NIW) rose 8.5% year over year to $17.8 billion in the second quarter of 2026, the highest quarterly level since the third quarter of 2022, while insurance in force (IIF) increased 2.6% to $304.8 billion. The growth in NIW and IIF provides MTG with a larger premium-generating base and supports future revenue growth.For MTG, credit normalization refers to a gradual increase in mortgage delinquencies and potential claims as the exceptionally favorable credit performance of recent years moves closer to historical norms. So far, the normalization appears manageable. MTG's primary delinquency rate increased to 2.37% from 2.21% a year earlier, but declined 7 basis points sequentially from 2.44% in the first quarter of 2026. Management expects some seasonal increase in delinquencies in the second half of the year, but current trends do not indicate a material deterioration in credit quality.MTG also benefits from strong cure activity, favorable performance from newer policy vintages and substantial capital resources. The company had $2.7 billion of PMIERs excess as of June 30, 2026, while its reinsurance program reduced PMIERs required assets by approximately 52%. These factors provide a meaningful cushion against higher delinquencies and claims and help support capital flexibility.Overall, MTG should be able to sustain attractive earnings and capital returns as long as credit normalization remains gradual rather than developing into a broader deterioration in mortgage credit quality. Improving NIW, a growing IIF portfolio, disciplined expenses, strong capitalization and reinsurance protection provide a solid foundation. However, investors should expect future earnings to rely increasingly on portfolio growth and recurring operating performance rather than exceptionally favorable loss development. Radian Group’s RDN mortgage-insurance portfolio is exposed to the same gradual normalization in borrower delinquencies and claims, although strong home equity provides an important buffer.Essent Group's ESNT significant portion of its portfolio is entering the period when mortgage-insurance claims are typically highest. Essent expects incurred losses and claims to increase as older books mature. Shares of MTG have gained 11.3% over the past year, outperforming the industry. Image Source: Zacks Investment Research The stock is undervalued compared with its industry. Its forward price-to-book value of 1.27X is lower than the industry average of 2.67X. It carries a Value Score of B. Image Source: Zacks Investment Research The Zacks Consensus Estimate for MTG’s full-year 2026 and 2027 EPS has moved up 6.2% and 4.8%, respectively, in the past 30 days.The consensus estimate for MTG’s 2027 EPS and revenues indicates a year-over-year increase. Image Source: Zacks Investment Research MTG stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MGIC Investment Corporation (MTG) : Free Stock Analysis Report Radian Group Inc. (RDN) : Free Stock Analysis Report Essent Group Ltd. (ESNT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

A month has gone by since the last earnings report for MGIC Investment (MTG). Shares have added about 2.1% in that time frame, underperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is MGIC due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. MGIC Q2 Earnings Beat Estimates, Revenues Miss on Lower PremiumsMGIC Investment Corporation reported second-quarter 2026 operating net income per share of 87 cents, which beat the Zacks Consensus Estimate by 17.6%. The bottom line also improved 6.1% year over year. Total operating revenues declined 2.6% year over year to $298 million, due to lower net premiums earned and net investment income. The top line missed the Zacks Consensus Estimate by 0.3%. The quarterly results reflected strong underwriting performance and lower losses incurred, partially offset by lower premiums and investment income. Insurance in force increased 2.6% year over year to $304.8 billion, exceeding the Zacks Consensus Estimate of $297.5 billion and our estimate of $297.5 billion. Meanwhile, primary delinquency increased 7% to 26,152 loans year-over year during the reported quarter. Net premiums earned declined 2.6% year over year to $238.1 million, missing our estimate of $239 million. Meanwhile, net investment income decreased 2.5% year over year to $59.5 million. The figure was in line with our estimate of $59.3 million but below the Zacks Consensus Estimate of $60.7 million.Persistency, the percentage of insurance remaining in force, was 83.3% as of June 30, 2026, down 140 basis points from the year-ago quarter’s level. Meanwhile, new insurance written increased 8.5% year over year to $17.8 billion.Underwriting and other expenses, net, declined 12.5% year over year to $45.6 million. However, underwriting performance improved significantly, with the loss ratio declining to 4.6% from 14.1% in the prior quarter. Total losses and expenses increased 12.6% year over year to $65.5 million, attributable to a sharp rise in losses incurred, net. Book value per share, a measure of net worth, increased 9.8% year over year to $24.27 as of June 30, 2026. Shareholder equity was $5 billion as of June 30, 2026, down 2.6% from the 2025-end level. MGIC Investment's PMIERs Available Assets totaled $5.6 billion, or $2.7 billion above its Minimum Required Assets as of June 30, 2026. Total assets were $6.5 billion as of June 30, 2026, down 1.7% from the 2025-end level. Senior notes totaled $646.9 million as of June 30, 2026, reflecting a 0.1% increase from the 2025-end level. The company repurchased 6.6 million shares of common stock for $176.6 million. Mortgage Guaranty Insurance Corporation (MGIC), the insurance subsidiary, paid a $400 million dividend to MGIC Investment Corporation, the holding company. MTG  bought back shares worth $42.4 million in July 2026. The board approved a dividend of 17 cents per common share payable on Aug. 20 to shareholders of record on Aug. 5, 2026. Concurrently, the board of directors also approved a share repurchase program, authorizing MTG to repurchase an additional $750 million of common stock through Dec. 31, 2028. In the past month, investors have witnessed a flat trend in estimates review. Currently, MGIC has a poor Growth Score of F, a grade with the same score on the momentum front. However, the stock has a grade of B on the value side, putting it in the second quintile for value investors. Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in. MGIC has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MGIC Investment Corporation (MTG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

As the Q2 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the property & casualty insurance industry, including MGIC Investment (NYSE:MTG) and its peers. Property & Casualty (P&C) insurers protect individuals and businesses against financial loss from damage to property or from legal liability. This is a cyclical industry, and the sector benefits when there is 'hard market', characterized by strong premium rate increases that outpace loss and cost inflation, resulting in robust underwriting margins. The opposite is true in a 'soft market'. Interest rates also matter, as they determine the yields earned on fixed-income portfolios. On the other hand, P&C insurers face a major secular headwind from the increasing frequency and severity of catastrophe losses due to climate change. Furthermore, the liability side of the business is pressured by 'social inflation'—the trend of rising litigation costs and larger jury awards. The 32 property & casualty insurance stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 2.3% while next quarter’s revenue guidance was 0.9% above. In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results. Founded in 1957 when the modern mortgage insurance industry was in its infancy, MGIC Investment (NYSE:MTG) provides private mortgage insurance that protects lenders when homebuyers default on their loans, enabling borrowers to purchase homes with smaller down payments. MGIC Investment reported revenues of $295.4 million, down 2.9% year on year. This print was in line with analysts’ expectations, and overall, it was a strong quarter for the company with a beat of analysts’ EPS estimates. Tim Mattke, CEO of MTG and Mortgage Guaranty Insurance Corporation ("MGIC") said, "Our strong second quarter results, highlighted by a 14.5% return on equity, reflect the continued success of our disciplined execution. Interestingly, the stock is up 1.9% since reporting and currently trades at $31.15. Is now the time to buy MGIC Investment? Access our full analysis of the earnings results here, it’s free. Serving as a crucial bridge between homebuyers and the American dream of homeownership, Essent Group (NYSE:ESNT) provides private mortgage insurance and title services that enable lenders to offer home loans with down payments of less than 20%. Essent Group reported revenues of $362.7 million, up 13.6% year on year, outperforming analysts’ expectations by 9.7%. The business had a stunning quarter with a beat of analysts’ EPS estimates. The market seems happy with the results as the stock is up 6.2% since reporting. It currently trades at $69.56. Is now the time to buy Essent Group? Access our full analysis of the earnings results here, it’s free. Founded during the housing boom of 1977 and weathering multiple real estate cycles since, Radian Group (NYSE:RDN) provides mortgage insurance and real estate services, helping lenders manage risk and homebuyers achieve affordable homeownership. Radian Group reported revenues of $580.7 million, up 90.8% year on year, in line with analysts’ expectations. It was a softer quarter as it posted a significant miss of analysts’ EPS estimates. As expected, the stock is down 4.9% since the results and currently trades at $37.25. Read our full analysis of Radian Group’s results here. Tracing its roots back to 1889 when California was experiencing its first major real estate boom, First American Financial (NYSE:FAF) provides title insurance, settlement services, and risk solutions for residential and commercial real estate transactions across the United States and internationally. First American Financial reported revenues of $2.12 billion, up 15% year on year. This result surpassed analysts’ expectations by 3.4%. Overall, it was an exceptional quarter as it also logged a beat of analysts’ EPS estimates. The stock is up 4.8% since reporting and currently trades at $73.89. Read our full, actionable report on First American Financial here, it’s free. Born from a vision to help pet owners avoid economic euthanasia when faced with expensive veterinary bills, Trupanion (NASDAQ:TRUP) provides medical insurance for cats and dogs through data-driven, vertically-integrated products priced specifically for each pet's unique characteristics. Trupanion reported revenues of $392.9 million, up 11.1% year on year. This number topped analysts’ expectations by 0.8%. It was an exceptional quarter as it also recorded a beat of analysts’ EPS estimates and a solid beat of analysts’ book value per share estimates. The stock is up 25.6% since reporting and currently trades at $30.63. Read our full, actionable report on Trupanion here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Image source: The Motley Fool. Thursday, July 30, 2026 at 10 a.m. ET Head of Investor Relations - Dianna L. Higgins Chief Executive Officer - Timothy James Mattke Chief Financial Officer - Nathaniel Howe Colson Operator: Ladies and gentlemen, thank you for standing by, and welcome to the MGIC Investment Corporation second quarter 26 earnings call. At this time, all lines have been placed on mute to prevent any background noise. At the end of today's presentation, we will have a question and answer session. To ask a question during the session, you will need to press 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press 1-1 again. I will now turn the conference over to Dianna L. Higgins, Head of Investor Relations. Please go ahead. Dianna L. Higgins: Thank you, Ari. Good morning, and welcome, everyone. Thank you for your interest in MGIC. Joining me on the call today to discuss our results for the second quarter are Timothy Mattke, Chief Executive Officer and Nathaniel Howe Colson, Chief Financial Officer. Our press release, which contains MGIC's second quarter financial results, was issued yesterday and is available on our website at mtg.mgic.com under newsroom. It includes additional information about our quarterly results that we will refer to during the call today. It also includes a reconciliation of non GAAP financial measures to their most comparable GAAP measures. In addition, we posted on our website a quarterly supplement that contains information pertaining to our primary risk in force, and other information you may find valuable. As a reminder, from time to time, we may post information about our underwriting guidelines and other presentations or corrections to past presentations on our website. Before getting started today, I want to remind everyone that during the course of this call, we may make comments about our expectations of the future. Actual results could differ materially from those contained in these forward looking statements. Our 8-Ks and 10-Q filed yesterday, includes additional information about the factors that could cause actual results to differ materially from those discussed on the call today. If we make any forward looking statements, we are not undertaking an obligation to update those statements in the future in light of subsequent developments. No 1 should rely on the fact that such guidance or forward looking statements are current any time other than the time of this call or the issuance of our 8-Ks or 10-Q. With that, I now have the pleasure to turn the call over to Timothy. Timothy James Mattke: Thanks, Dianna. Good morning, everyone. Our deep industry expertise strong balance sheet, and unwavering focus on our customers continue to drive long term value creation. Our results reflect the strength of our business model, and our disciplined execution across the business. In the second quarter, we generated net income of $182 million delivering an annualized return on equity of 14.5%. Our consistent execution combined with the strength of our balance sheet drove book value per share to $24.27. An increase of 10% year-over-year. While we also paid 60¢ per share in dividends in the last 12 months. We wrote $18 billion of new insurance in the second quarter. An increase of 8.5% from the second quarter of 2025 and our highest NIW since the third quarter of 2022. We expect the increase was due to a slightly larger mortgage origination market, driven by seasonal growth in the purchase market. Insurance in force ended the quarter at $305 billion up slightly in the quarter and up 2.6% from a year ago. At the end of the second quarter, annual persistency was 83%, down slightly from 84% last quarter. Both insurance in force and annual persistency were in line with the expectations we previously shared. Continue to see solid performance across our well balanced portfolio, supported by strong credit quality, and disciplined underwriting practices. Early payment defaults continue to track at low levels, reinforcing our confidence in near term credit expectations. Our capital structure remains robust, with $6 billion of balance sheet capital and a well established reinsurance program that continues to be a core component of our risk and capital management strategy. loss volatility and stress scenarios Reinsurance agreements with a panel of highly rated reinsurers reduce loss volatility in stress scenarios while providing capital diversification and flexibility at attractive costs. During the second quarter, we further enhanced our reinsurance program by executing a traditional excess of loss reinsurance transaction that provides up to $168 million of protection on eligible NIW in 2027. At the end of the second quarter, our reinsurance program reduced our PMIERs required assets by $3.1 billion or approximately 52%. Nathaniel Howe Colson: With that, let me turn it over to Nathaniel to provide more details on our financial results and capital management activities for the quarter. Thanks, Timothy, and good morning. As Tim discussed, we had solid financial results for the second quarter. We earned net income of $0.86 per diluted share compared to $0.81 per diluted share last year. Our re estimation of ultimate losses on prior delinquencies resulted in $43 million of favorable loss reserve development in the quarter. This favorable development primarily reflects better than expected cure activity on delinquency notices received in 2025. As a reminder, delinquency notices in any quarter span multiple book year vintages. For new delinquency notices received in the second quarter, we continue to apply our initial claim rate assumption of 7.5%. In the quarter, our count based delinquency rate decreased 7 basis points, which we expect was driven by seasonal trends. Compared to a year ago, the delinquency rate increased 16 basis points to 2.37%. We expect seasonality to lead to an increase in delinquencies in the second half of the year, the delinquency trends through the second quarter remain consistent with the credit normalization we have been experiencing for the past 3 years and the delinquency rate remains 43 basis points below the second quarter of 2019. The in force premium yield was 38 basis points in the quarter down a little less than 1 basis point in the past 3 years. With high persistency expected in 2026, and MI origination trend similar to last year, we expect the in force premium yield to continue on a similar path to the past couple of years. Investment income totaled $59 million in the second quarter. The book yield on our investment portfolio remains approximately 4%. During the quarter, reinvestment rates on our fixed income portfolio continued to exceed our book yield but our capital return activities have limited the growth in the investment portfolio and the resulting investment income. Underwriting and other expenses in the quarter were $46 million down from $52 million in the second quarter of last year as we remain focused on disciplined expense management. We now expect operating expenses for the full year to be toward the low end of the $190 million to $200 million range we previously shared. Our approach to capital management remains unchanged. We prioritize prudent insurance in force growth over capital return. Market conditions have constrained insurance in force growth in recent years. And against that backdrop, our capital return activity reflects continued strong mortgage credit performance and our robust financial position. In the second quarter, we paid a common stock dividend of 15¢ per share. We also repurchased 6.6 million shares of stock for $177 million Over the prior 4 quarters, share repurchases totaled $746 million and shareholder dividends totaled $135 million Combined, they represented a 124% payout of the net income earned over the period. The strong financial position of both the holding company and the operating company was a key factor in the board's decision last week to approve an increase to our quarterly common stock dividend to $0.17 per share. This marks 6 consecutive years of dividend increases representing a compound annual growth rate of 19% over that period. Timothy James Mattke: With that, let me turn it back over to you. Thanks, Nathaniel. Last month, I assumed the role of chairman of USMI, our industry's trade association. Through decades of economic cycles, mortgage insurance has consistently demonstrated its value to homeowners, lenders, and the broader housing finance system. Mortgage insurance is at the center of several important policy discussions, and we are committed to ensuring those conversations are informed by data, experience, and a proven track record. I look forward to working with our great team at USMI and being able to represent the industry in those conversations. Turning back to MGIC, our second quarter results demonstrate the benefits of disciplined execution, and the strategy we have thoughtfully refined over time. This long term approach has supported our competitive position driven strong business performance, and generated meaningful returns for shareholders. Combined with our continued commitment to our customers, we believe we are well positioned to capitalize on opportunities, manage through evolving market conditions and deliver long term value. With that, Ari, let's take questions. Operator: Thank you. At this time, we will conduct the question and answer session. As a reminder, to ask a question, you will need to press 1-1 on your telephone, and wait for your name to be announced. To withdraw your question, please press 1-1 again. Our first question comes from the line of Terry Ma of Barclays. Your line is now open. Terry Ma: Hey, thank you. Good morning. Just want to get your latest thoughts on credit. Operator: I think Nathaniel, last quarter, you called out Ladies and gentlemen, thank you for standing by, and welcome to the MGIC Investment Corporation Second Quarter 26 Earnings Call. At this time, all lines have been placed on mute to prevent any background noise. At the end of today's presentation, we will have a question and answer session. To ask a question during the session, you will need to press 1-1 on your telephone. Will then hear an automated message advising your hand is raised. To withdraw your question, please press 1-1 again. I will now turn the conference over to Dianna L. Higgins, Head of Investor Relations. Please go ahead. Dianna L. Higgins: Thank you, Ari. Good morning, and welcome, everyone. Thank you for your interest in MGIC. Joining me on the call today to discuss our results for the second quarter are Timothy Mattke, Chief Executive Officer and Nathaniel Howe Colson, Chief Financial Officer. Our press release, which contains MGIC's second quarter financial results, was issued yesterday and is available on our website at mtg.mgic.com under newsroom. It includes additional information about our quarterly results that we will refer to during the call today. It also includes a reconciliation of non GAAP financial measures to their most comparable GAAP measures. In addition, we posted on our website a quarterly supplement that contains information pertaining to our primary risk in force, and other information you may find valuable. As a reminder, from time to time, we may post information about our underwriting guidelines and other presentations or corrections to past presentations on our website. Before getting started today, I want to remind everyone that during the course of this call, we may make comments about our expectations of the future. Actual results could differ materially from those contained in these forward looking statements. Our 8-Ks and 10-Q filed yesterday includes additional information about the factors that could cause actual results to differ materially from those discussed on the call today. If we make any forward looking statements, we are not undertaking an obligation to update those statements in the future in light of subsequent developments. No 1 should rely on the fact that such guidance or forward looking statements are current any time other than the time of this call or the issuance of our 8-Ks or 10 Q. With that, I now have the pleasure to turn the call over to Timothy. Timothy James Mattke: Thanks, Dianna. And good morning, everyone. Our deep industry expertise strong balance sheet, and unwavering focus on our customers continue to drive long term value creation. Our results reflect the strength of our business model, and our disciplined execution across the business. In the second quarter, we generated net income of $182 million delivering an annualized return on equity of 14.5%. Our consistent execution combined with the strength of our balance sheet drove book value per share to $24.27 an increase of 10% year-over-year. While we also paid 60¢ per share in dividends in the last 12 months. We wrote $18 billion of new insurance in the second quarter. An increase of 8.5% from the second quarter of 2025 and our highest NIW since the third quarter of 2022. We expect the increase is due to a slightly larger mortgage origination market, driven by seasonal growth in the purchase market. Insurance in force ended the quarter at $305 billion up slightly in the quarter and up 2.6% from a year ago. At the end of the second quarter, annual persistency was 83%, down slightly from 84% last quarter. Both insurance in force and annual persistency were in line with the expectations we previously shared. Continue to see solid performance across our well balanced portfolio, supported by strong credit quality, and disciplined underwriting practices. Early payment defaults continue to track at low levels, reinforcing our confidence in near term credit expectations. Our capital structure remains robust, with $6 billion of balance sheet capital and a well established reinsurance program that continues to be a core component of our risk and capital management strategy. Reinsurance agreements with a panel of highly rated reinsurers reduce loss volatility and stress scenarios while providing capital diversification and flexibility at attractive costs. During the second quarter, we further enhanced our reinsurance program by executing a traditional excess of loss reinsurance transaction that provides up to $168 million of protection on eligible NIW in 2027. At the end of the second quarter, our reinsurance program reduced our PMIERs required assets by $3.1 billion or approximately 52%. Nathaniel Howe Colson: With that, let me turn it over to Nathaniel to provide more details on our financial results and capital management activities for the quarter. Thanks, Timothy, and good morning. As Tim discussed, we had solid financial results for the second quarter. We earned net income of $0.86 per diluted share compared to $0.81 per diluted share last year. Our re estimation of ultimate losses on prior $43 million of favorable loss reserve development in the quarter. This favorable development primarily reflects better than expected cure activity on delinquency notices received in 2025. As a reminder, delinquency notices in any quarter span multiple book year vintages. For new delinquency notices received in the second quarter, we continue to apply our claim rate assumption of 7.5% In the quarter, our count based delinquency rate decreased 7 basis points. Which we expect was driven by seasonal trends. Compared to a year ago, the delinquency rate increased 16 basis points to 2.37%. While we expect seasonality to lead to an increase in delinquencies in the second half of the year, the delinquency trends through the second quarter remain consistent with the credit normalization we have been experiencing for the past 3 years and the delinquency rate remains 43 basis points below the second quarter of 2019. The in force premium yield was 38 basis points in the quarter down a little less than 1 basis point in the past 3 years. With high persistency expected in 2026, and MI origination trend similar to last year, we expect the in force premium yield to continue on a similar path to the past couple of years. Investment income totaled $59 million in the second quarter. The book yield on our investment portfolio remains approximately 4%. During the quarter, reinvestment rates on our fixed income portfolio continued to exceed our book yield but our capital return activities have limited the growth in the investment portfolio and the resulting investment income. Underwriting and other expenses in the quarter were $46 million down from $52 million in the second quarter last as we remain focused on disciplined expense management We now expect operating expenses for the full year to be toward the low end of the 190 million to $200 million range we previously shared. Our approach to capital management remains unchanged. We prioritize prudent insurance in force growth over capital return. Market conditions have constrained insurance in force growth in recent years, and against that backdrop, our capital return activity reflects continued strong mortgage credit performance and our robust financial position. In the second quarter, we paid a common stock dividend of 15¢ per share. Also repurchased 6.6 million shares of stock for $177 million Over the prior 4 quarters share repurchases totaled $746 million and shareholder dividends totaled $135 million Combined, they represented a 124% payout of the net income earned over the period. The strong financial position of both the holding company and the operating company was a key factor in the board's decision last week to approve an increase to our quarterly common stock dividend to $0.17 per share. This marks 6 consecutive years of dividend increases representing a compound annual growth rate of 19% over that period. Timothy James Mattke: With that, let me turn it back over to you. Thanks, Nathaniel. Last month, I assumed the role of chairman of USMI, our industry's trade association. Through decades of economic cycles, mortgage insurance has consistently demonstrated its value to homeowners, lenders, and the broader housing finance system. Mortgage insurance is at the center of several important policy discussions We are committed to ensuring those conversations are informed by data, experience, and a proven track record. I look forward to working with our great team at USMI and being able to represent the industry in those conversations. Turning back to MGIC, our second quarter results demonstrate the benefits of disciplined execution, and the strategy we have thoughtfully refined over time. This long term approach has supported our competitive position driven strong business performance, and generated meaningful returns for shareholders. Combined with our continued commitment to our customers, we believe we are well positioned to capitalize on opportunities, manage through evolving market conditions and deliver long term value. With that, Ari, let's take questions. Operator: Thank you. At this time, we will conduct the question and answer session. As a reminder, to ask a question, you will need to press 1-1 on your telephone, and wait for your name to be announced. To withdraw your question, please press 1-1 again. Our first question comes from the line of Terry Ma of Barclays. Your line is now open. Terry Ma: Hey, thank you. Good morning. Just want to get your latest thoughts on credit. I think Nathaniel, last quarter, you called out a 10- to 15-basis-point year over year increase in the delinquency rate as consistent with credit normalization. We are certainly in that ballpark the last 2 quarters. So is there any color you can kind of provide on new notices by region or vintage that can maybe just inform our view of credit going forward? Nathaniel Howe Colson: Yeah, Terry, it is Nathaniel. Thanks for the question. You know, it is something that we look at closely, not just quarterly, but really on a monthly basis. What is the mix of new delinquencies? What are we seeing in maybe early payment default trends? What are we seeing across certainly any of the single dimension variables but even multiple dimensions. As we look at it, other than the continuous roll forward to more recent vintages, which is what you would expect, When we look at it across other key credit variables, we really do not see a lot of difference in the mix, and we are not seeing it geographically. We are not seeing it really correlated to, say, home price changes in various states. So, again, something that makes us feel confident that we are looking at a broad based credit normalization versus real deterioration in any segment or anything that is going to lead to changes that we feel like we need to make? Terry Ma: Got it. And when we think about the cure rate, all the post COVID vintages, you know, about 90% of new notices cure within 4 quarters. I think, Timothy, when I had you on stage in my conference a few years ago, you gave a number pre-pandemic that was, you know, lower than 90%. I am just wondering, as we track all the data, like, everything's kind of tracking toward that 90% mark. Do you expect normalization going forward lower than 90% at any given point? Just trying to think about that. Nathaniel Howe Colson: Terry, it is Nathaniel. I would maybe think about it, less at a particular point in time. In terms of maybe 12 months after delinquency. What we are really focused on is what is the ultimate claim rate going to be on a group of new notices. So when we set our initial expectations at 7.5%, that is looking on a fully developed basis what percent of those new notices are ultimately going to result in a claim And the consistent favorable development that we have had as a result of actual claim rates being quite a bit lower than that 7.5% that we were putting up initially. I will say, and we have talked about this over the last couple of calls too, you know, we are coming off the lowest point for us for the new notice claim rate was the second quarter of 2020, the peak COVID quarter, which ultimate claim rates are less than 1%. Out of that group. So we are, we are certainly not running at that level anymore. But today it looks like fully developed notice quarters maybe from say 2 or 3 years ago are more in that 2% to 3% range. And more recent, maybe trending slightly higher than that. So fully developed notice quarters today, we might be thinking, you know, 3% to 4% ultimate claim rate. Still quite a bit lower than what we are expecting on new notices. I think that is because the conditions have played out quite favorably over the last 2 or 3 years, although there is been a lot of uncertainty at every point along the way. Think we still feel quite comfortable with our initial new notice expectations. But if credit conditions remain what they are today, we likely will have additional reserve redundancy that will be released through favorable development in the future. Terry Ma: Got it. Thank you. Operator: Thank you. Our next question comes from the line of Bose George of KBW. Your line is now open. Bose George: Hey, guys. Good morning. Just first, wanted to just ask about competitive trends in the market, anything to call out there? Timothy James Mattke: And then, I mean, your gross premium yield, it looks like it ticked down a tiny bit. Is that just noise? Yeah, Bose. I mean, from competitive dynamics, again, it is a competitive market. Marketplace, right, with 6 active participants. I would not say anything stands on this quarter. As you said, the when we look at the gross premium rate, which is what we really focus on, it did grind down a little bit more this quarter. And that is sort of been the trend over the last couple of years, quite frankly. So not any major changes quarter to quarter, but the trend has been slightly downward. Not unexpected from our standpoint. So, again, nothing that has changed in the competitive marketplace that is caused that, but it has been the general form of direction, but not anything that is sort of steepening or anything in that regard. Bose George: Okay. Great. Thanks. And then issue on reinsurance? So you guys did the transaction Just can you compare the execution in the, you know, traditional reinsurance versus the ILN market? Is the benefit here more Structural, or is the pricing better here? Or just yeah. Can you just contrast the 2? Nathaniel Howe Colson: Yep, Bose, it is Nathaniel. I think the biggest thing, the XOL that we just did is really covering 2027 NIW. Whereas the ILN market is all on a kind of a warehouse, already in-force loans. So we have to spend time to build a pool, I think there is also a lot of fixed costs associated with doing those deals and size requirements that are expected in the market. Whereas you can do smaller reinsurance deals. So our intention is to be programmatic in both the excess of loss and ILN markets, but the ILN deals are individually a little bit larger. And since we have to warehouse the risk, you know, just happen at a at a slightly less frequent cadence, but we have done deals pretty consistently. We have had you know, fill up periods as short as 5 months in the ILN market and as long as maybe 2 years, just depending on volume. So it is a market that we want to continue to operate in. But I do not view the excess of loss deal that we did covering our 2027 NIW as indicative of, we are not interested in the ILN market. They are just different executions in different parts of our program. Bose George: Okay. Great. Thanks. Operator: Thank you. Our next question comes from the line of Mihir Bhatia of Bank of America. Your line is now open. Mihir Bhatia: Good morning. Thank you for taking my question. I just wanted to maybe first just start big picture, just given the Tim you talked a little bit about credit conditions. Just given, you know, great move in rate, housing, your view on, like, the housing fundamentals, maybe talk about industry NIW. This year. And related to that, just wanted to understand the underwriting posture. Are you tightening, loosening, anywhere on the margin? Just your thoughts around that. Thank you. Timothy James Mattke: Yeah. No, Mihir, I appreciate the question. I mean, I think as far as the market goes, the size has been fairly consistent with what we have expected coming into the year. Right? Like, there is modest home price appreciation out there in certain parts. Purchase, again, it was our second largest it was our largest NIW since, you know, 2022. And up from where we were a year ago? So, again, you continue to see positive signs in the purchase market. Refi market, obviously, is going to be really stunted by where rates are right now and so, again, I do not think we bank on that changing. But, again, for us, that is normally churn in the portfolio as opposed to anything that really helps us grow in force. Affordability is definitely continues to be stretched, again, with where interest rates are and where home prices are. I think it makes it difficult to see a large change in sort of people coming to be buyers in this market. I think you can see there probably there is some thawing and, sort of lock in effect as far as people willing to sell their homes that have good interest rates. But, again, as interest rates remain high, generally, that makes it tougher to see that really, you know, sort of break loose in a meaningful way. So I am a general believer that sort of the market we have felt for this quarter and feels like we have been in for the last year for the most part of the little mini refi ways? Sort of what we are in for the foreseeable future. So that does not create a lot of growth for us. But as Nathaniel said, you know, we would love to grow the in force portfolio. But, really, we wanna do that if the overall sort of sort of pie is growing. And if it is not growing, like, we are we are content to return that capital to shareholders if we think that is the right answer. Mihir Bhatia: And then just from a credit perspective, is there any loosening or tightening going on at the margin Maybe any thoughts around the softer home price backdrop could flow through? Or to do? Nathaniel Howe Colson: Yep, Mihir, it is Nathaniel. I mean, I would say from a from an actual underwriting guideline perspective, there really has not been meaningful changes in quite some time from our guidelines. And the mix of business has been quite consistent as well. I think if anything, over the last 2 years, there is been a slight decrease in the amount of above 45 DTI business that is been done, but that is maybe the most notable change that I would see. That was not necessarily a result of you know, guideline changes by us. I think just what was what was getting done in the market changed a little bit. So I think we are quite comfortable with the mix that we are getting and the risk adjusted returns really across the spectrum. So I do not feel a need to make any meaningful underwriting changes right now given expected performance or actual performance today? Mihir Bhatia: Alright. And then just my last question, just around buyback. Obviously, you have a new authorization in play. Could we view that as a signal of an acceleration, or is it more just continuing the current steady state because you have been returning a fair amount of capital already? Timothy James Mattke: So, yep. Yeah, I would not view it as an acceleration. I think it would be-- I view it as a continuation. We always want to make sure we have authorized shares to continue to execute the way we have been. And those needs to talk over time. We have tried to size it appropriately based upon sort of earnings and capital generation and so I think when we talk with the board about sort of the authorization, it was much more of a continuance of what we have been doing as opposed to sort of any acceleration of what we have been doing. Got it. Thank you. you very much. Operator: Thank you. Our next question comes from the line of Roland Meyer of RBC Capital Markets. Your line is now open. Analyst: Hi. Good morning. I guess just going quickly off Mihir's question. On the quarter to date disclosure on the buyback, is that just slowed down because you are in blackout and that was set prior to the stock moving higher? Nathaniel Howe Colson: Roland, it is Nathaniel. I think we have been what we have been talking about for some time is really trying to size the share repurchases in this in this market where we are not really growing the in force, credit conditions remain good, we are generating a lot of organic capital that we do not think we can prudently redeploy into the business, trying to size the share repurchases approximately equal to the net income. And that is you know, we are not we are not exactly what the net income is going to be, obviously, in any period. But I think if you look on a you know, 6-month rolling 12-month basis, we have done a pretty good job of triangulating the share repurchases to be approximately equal to that and then slowly drawing down the excess liquidity and capital at the holding company via the shareholder dividend every quarter So it is not going to be possible, I think, for us to get it exactly right each quarter, but you know, we are we are largely targeting share repurchases to be approximate to net income in this kind of environment. Thank you. And then I guess a lot of your risk in force remains in the pre-22 years. As those policies age, are we approaching any sort of cliff where larger portions detach as the, you know, LTV hit 78%? Yes, it is Nathaniel again. I appreciate the question. And it is something that we actually talked about quite a bit internally lately, and if you think about a book of business for us, it is really across the LTV spectrum, you know, a lot of 85s, 90s, 95s and a significant amount of 97 LTV business even in those years. Most of the 85 LTV loans from those book years have already-- that were borrower paid subject to the Homeowners Protection Act have already canceled their coverage. It becomes more concentrated in the higher LTVs, but there is really no cliff event because there is a distribution of interest rates within those years too. At lower rates, you get to that point faster, but you know, for a 95 or 2097, it is still several years. So it is happening every month that falloff happens. We estimate about maybe 4 to 5 percentage points of our falloff. So persistency of 83%, about 5 percentage points of that 17% that is falling off is due to the homeowners protection act. And it is really been that way for the last we started tracking this more closely in the last several years, but 4 or 5 years ago, it was about the same. So this is, you know, something that is kind of in the background, but it is I think it is pretty embedded in persistency and has been over time. So you know, we do not see a big cliff coming or anything like that. it is just something that is happening every month. Thank you. Analyst: And then if I could just sneak 1 more in. it is a soft P and C market, and I am just curious if excess capital and reinsurance markets is helping you secure better terms on your own purchases. Timothy James Mattke: I think a reinsurance, I think in any markets, right, that are adjacent or that reinsurers are trying to think about how to deploy their capital and where returns are, it can have an impact. I think our continued sort of activities in the market and sort of programmatically of going about it helps us as well. And I think it is true that from a from a broader MI industry standpoint, the fact that GSEs have laid off less risk into those markets has probably helped us bring more, reinsurers to the table. Because if they are looking for, mortgage credit in The US, the MIs and MGIC are 1 spot that they can get it pretty consistently. So I think all those things have been beneficial to us as we look to place reinsurance in those markets. Thank you. Have a great rest of your summer. Sure. You too. Operator: Thank you. Our next question comes from the line of Geoffrey Dunn of Dowling and Partners. Your line is now open. Geoffrey Dunn: Thanks. Good morning. I had another question on reinsurance. Specifically, how do you go about approaching the incremental level of reinsurance you want to put on a forward book? So, you know, obviously, you do not have a crystal ball about future credit. How did you just on the 2027 XOL, for example, how did you decide on the loss band that you wanted to achieve Does capital management come into play on that excess capital? Just some color on how you think about approaching incremental reinsurance, whether it is XOL or ILN. Nathaniel Howe Colson: Yeah, Jeff, it is Nathaniel. Appreciate the question. I mentioned before, we really think about our reinsurance program across, you know, the 3 key dimensions are quota share reinsurance, traditional, XOL, and the ILN market. it is not exactly the case every book year, but we try to do about a 1/3 of the risk sharing across each of those 3 categories. So, you know, we have done up to, say, 40% quota shares, the excess of loss deals that we have done in recent years have allocated about 30% of the risk to them, and, you know, that leaves about 30% of the risk for the ILN market. Which I think has worked quite well for us. In terms of actual structuring of the individual transactions, you know, there is a I think there are there is a pretty consistent pattern that has emerged in terms of what works well with reinsurers. So you are trying to see maybe first dollar loss would be less efficient from a capital standpoint and less alignment of interest from reinsurers perspective. So, you know, us retaining a meaningful amount of the initial and first loss position, I think, is helpful. So detachment points across maybe ILN and excess of loss structures where if the PMIERs requirement, let's say is 7%, traditional structure would be the MIs MGIC and others that we observe in the market, retaining the first, say, 2.5 to 3% of that and then seeding the next, say, 0.5% to 4% up to the PMIERs level. And I think that has emerged that way because that works quite well for reinsurers. it is quite risk remote. And then the cost of capital is very attractive from our perspective. So I think a combination of those factors leads to a you know, kind of a normalization in what structures look like. I do not think it means you cannot do other things, but those other things come with additional costs. Right now, we feel like we are, we are putting a lot of protection on the recent vintages, which is our goal. Geoffrey Dunn: And how does the layering of XOL and ILN work? If you are attaching at 3% on an ILN, are you laying off the 2% to 3% band through the traditional XOL? How does that mechanically work? Nathaniel Howe Colson: Yeah. it is if you think about it, in, like, maybe the quota share terms, so in a 40% quota share you know, we are ceding 40% of the premium and 40% of the losses. and 40% of the associated capital requirement. Those deals obviously have a profit commission, makes them in attractive times, you know, more beneficial than a straight quarter share to us. But we are still retaining at a loan level the remaining 60% of the risk We then have that 60% at the loan level to allocate to other deals. When I say 30%, it is not 30%, say, of the layer or 30% of the loans. it is really 30% of our retention of our risk in force, at the loan level is going into the excess of loss deal. So the same loan on our, say, 2024 vintage or 2025 where we have you know, quota share, excess of loss, and ILN coverage. The same loan would be in all 3 of those deals. Just maybe 40% of the risk of that loan in 1 deal, 30% in another, and 30% in another. So it is you know, we do not have to-- they sit side by side versus maybe being below or on top of 1 another. Geoffrey Dunn: Okay. Great. Thank you. Operator: Thank you. There are no further questions. I will now turn the call back over to management for closing remarks. Thank you, Ari. Timothy James Mattke: Let me thank everyone for your interest in MGIC. Have a great rest of your week. Operator: Ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect. Before you buy stock in MGIC Investment, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and MGIC Investment wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $397,405!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,344,091!* Now, it’s worth noting Stock Advisor’s total average return is 953% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 7, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. MGIC (MTG) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide. MGIC Investment (MTG) attracted fresh attention after its Q2 2026 earnings on July 29, which showed slightly softer revenue but higher adjusted earnings per share, alongside management’s focus on capital returns in a competitive mortgage insurance market. See our latest analysis for MGIC Investment. The recent Q2 report and dividend increase came after a solid run in MGIC Investment’s stock, with a 30 day share price return of 9.64% and a 1 year total shareholder return of 18.12%. That adds to a 5 year total shareholder return of 139.84% and indicates that recent performance has been supportive across multiple time periods. If you are comparing MGIC Investment with other financials, this could be a useful moment to widen your watchlist and check out 19 top founder-led companies Bulls point to MGIC Investment’s strong shareholder returns and higher EPS, while bears focus on softer revenue and margin pressure in a tough mortgage insurance market. Which side does the current valuation actually support? The most followed narrative currently places MGIC Investment’s fair value at $30.60, which sits just below the last close of $30.95. That small gap keeps the focus on how much of the story around capital returns and credit quality is already reflected in the price. Read the complete narrative. Want to see what is driving that fair value call for MGIC Investment? The narrative leans heavily on how stable revenue, shifting margins and a different future earnings multiple interact over time. Curious which of those inputs does most of the heavy lifting and how aggressive the assumed buyback effect really is? Result: Fair Value of $30.60 (OVERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, MGIC Investment still faces two clear risks: softer mortgage origination and potential credit deterioration from aging 2021 and 2022 vintages that could pressure margins and earnings. Find out about the key risks to this MGIC Investment narrative. The analyst narrative suggests MGIC Investment is about 1% overvalued at $30.60, yet the SWS DCF model points to a very different picture. On that approach, MTG at $30.95 is described as trading below an estimated future cash flow value of $78.13, which implies a wide valuation gap. When one framework says MGIC Investment sits close to fair value and another flags a large upside gap, it raises a useful question for you as an investor. Which set of assumptions about earnings, buybacks and mortgage risk feels more realistic over time, and how much weight should each method carry in your process? Look into how the SWS DCF model arrives at its fair value. With sentiment on MGIC Investment pulled between those risks and rewards, this is a good time to review the data yourself and move quickly. To see both sides set out clearly so you can shape your own view, take a closer look at the 2 key rewards and 1 important warning sign. If MGIC Investment has sharpened your thinking, do not stop here. Use fresh stock ideas to stress test your thesis and uncover opportunities you might be missing. Target potential value opportunities by scanning companies that combine quality fundamentals with attractive pricing using the 52 high quality undervalued stocks. Strengthen your focus on stability by reviewing companies that show resilient financial profiles in the 82 resilient stocks with low risk scores. Spot lesser known opportunities by checking the screener containing 18 high quality undiscovered gems before the wider market pays attention. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include MTG. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

EverQuote, Inc. EVER reported second-quarter 2026 operating net income per share of 65 cents, significantly exceeding the Zacks Consensus Estimate by 6.6%. The bottom line increased 66.7% from the prior-year period level. Total revenues rose 24.6% year over year to $195 million. The top line exceeded the Zacks Consensus Estimate by 2.6%. The quarterly results benefited from continued strength in the Automotive and Home & Renters insurance verticals, supported by higher variable marketing dollars and record adjusted EBITDA. EverQuote, Inc. price-consensus-eps-surprise-chart | EverQuote, Inc. Quote Revenues in the Automotive insurance vertical grew 23.3% year over year to $172.1 million, surpassing the Zacks Consensus Estimate of $170.4 million. Our estimate was $170.5 million. Revenues in the Home and Renters insurance vertical increased 35.2% year over year to $23 million, exceeding the Zacks Consensus Estimate of $19.4 million. Our estimate was $19 million. Revenues in the Other insurance vertical declined 100% year over year. Total costs and operating expenses rose 20.5% year over year to $171.6 million, mainly due to higher sales and marketing, research and development costs and general and administrative expenses. Our estimate was $164 million. EverQuote’s variable marketing dollars increased 25% year over year to $56.9 million, which beat the Zacks Consensus Estimate of $56.4 million. Adjusted EBITDA rose 37.1% year over year to $30.1 million, which outpaced our estimate of $29.6 million. EverQuote exited the second quarter of 2026 with cash and cash equivalents of $192.3 million, up 12.3% from the 2025-end level. Total assets increased 4.3% from the 2025-end level to $341 million, while total stockholders' equity rose 7.9% from the 2025-end level to $256.8 million. Cash from operations was $24.3 million, compared with $25.3 million in the prior-year quarter. During the second quarter, EVER repurchased 0.578 million shares of its common stock for approximately $9.1 million. For the third quarter of 2026, EverQuote guided revenues in the range of $198-$208 million. Management expects variable marketing dollars in the $56-$59 million range, suggesting 23% year-over-year growth. Adjusted EBITDA is projected in the range of  $28-$31 million EVER currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. MGIC Investment Corporation MTG reported second-quarter 2026 operating net income per share of 87 cents, which beat the Zacks Consensus Estimate by 17.6%. The bottom line also improved 6.1% year over year. Total operating revenues declined 2.6% year over year to $298 million, primarily due to lower net premiums earned and net investment income. The top line missed the Zacks Consensus Estimate by 0.3%. Net premiums earned declined 2.6% year over year to $238.1 million, missing our estimate of $239 million. Meanwhile, net investment income decreased 2.5% year over year to $59.5 million. The figure was in line with our estimate of $59.3 million. AXIS Capital Holdings Limited AXS reported second-quarter 2026 operating income of $2.84 per share, which missed the Zacks Consensus Estimate of $3.23 and fell 12.1% year over year. Total operating revenues of $1.7 billion marginally missed the Zacks Consensus Estimate by 1%. The top line rose nearly 7.4% year over year on higher premiums earned. Net premiums written decreased 1.8% to $1.6 billion, reflecting lower premiums in the Reinsurance segment, partially offset by growth in the Insurance segment. AXIS Capital’s underwriting income of $142.9 million decreased 24.5% year over year. The combined ratio deteriorated to 93.1 in the quarter from 88.9 a year ago, reflecting higher catastrophe and weather-related losses. The Zacks Consensus Estimate was pegged at 93.2. Our estimate was 93.8. NMI Holdings, Inc. NMIH reported second-quarter 2026 adjusted earnings of $1.38 per share, which rose 13.1% year over year. The bottom line beat the Zacks Consensus Estimate of $1.28 by 7.81%. Revenues rose 8.1% year over year to $188 million and surpassed the consensus mark of $185 million by 1.73%. Primary insurance in force increased 5.8% to $227.1 billion. Net premiums earned increased 5.7% year over year to $157.5 million, reflecting continued expansion in the insured portfolio. Our estimate was $157 million. Net investment income climbed 21.6% to $30.3 million, providing another meaningful lift to the top line. Our estimate was $27 million. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report EverQuote, Inc. (EVER) : Free Stock Analysis Report MGIC Investment Corporation (MTG) : Free Stock Analysis Report Axis Capital Holdings Limited (AXS) : Free Stock Analysis Report NMI Holdings Inc (NMIH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in MGIC Investment Corporation? Here are five stocks we like better. Strong quarterly results: MGIC reported $182 million in second-quarter net income, or $0.86 per share, aided by $43 million in favorable reserve development and lower expenses. Book value per share increased 10% year over year to $24.27, while annualized ROE reached 14.5%. Business growth with stable credit performance: New insurance written rose 8.5% year over year to $18 billion, and insurance in force increased 2.6% to $305 billion. Although delinquencies were higher than a year ago, management said credit trends remain consistent with normalization and broad-based rather than concentrated deterioration. Higher shareholder returns: The board raised the quarterly dividend 13% to $0.17 per share, marking the sixth consecutive year of increases. MGIC also repurchased $177 million of stock during the quarter and plans to continue returning capital at approximately the level of net income. 2 Real-Estate Related Stocks Showing Signs Of Being Undervalued MGIC Investment (NYSE:MTG) reported second-quarter 2026 net income of $182 million, or $0.86 per diluted share, as favorable reserve development and lower operating expenses supported results. The mortgage insurer recorded an annualized return on equity of 14.5% and said book value per share rose 10% from a year earlier to $24.27. Chief Executive Officer Tim Mattke said the company wrote $18 billion in new insurance written during the quarter, up 8.5% from the second quarter of 2025 and its highest quarterly level since the third quarter of 2022. He attributed the increase to a slightly larger mortgage-origination market, supported by seasonal growth in purchase activity. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now Insurance in force ended the quarter at $305 billion, rising slightly sequentially and 2.6% year over year. Annual persistency was 83%, compared with 84% in the first quarter, in line with management's previous expectations. Chief Financial Officer Nathan Colson said the company recognized $43 million in favorable loss reserve development during the quarter, primarily reflecting better-than-expected cure activity among delinquency notices received in 2025. → Microsoft Just Flipped the AI Spending Narrative Overnight MGIC maintained its initial claim-rate assumption of 7.5% for new delinquency notices received in the second quarter. Its count-based delinquency rate declined seven basis points from the prior quarter, which Colson said was expected to reflect seasonal trends. The delinquency rate was nevertheless 16 basis points higher than a year earlier at 2.37%. Management expects seasonal patterns to contribute to higher delinquencies in the second half of 2026, but said credit performance remains consistent with the “credit normalization” the company has experienced over the past three years. The delinquency rate remained 43 basis points below the level reported in the second quarter of 2019. → Carrier Earnings Could Send the Stock to a New All-Time High In response to questions about the composition of new delinquencies, Colson said the company has not seen meaningful changes by geography, key credit variables or home-price performance. He said the trends appeared broad-based rather than indicative of deterioration in a particular segment. Colson said fully developed claim rates for delinquency notices from two or three years ago have generally been in the 2% to 3% range, while more recent notices may trend modestly higher. Management currently sees fully developed notice quarters at roughly 3% to 4% ultimate claim rates, still below the 7.5% assumption used for newly reported notices. If current credit conditions continue, the company expects it could have further reserve redundancy available for release through favorable development. MGIC’s in-force premium yield was 38 basis points in the quarter, down by less than one basis point over the past three years. Colson said that with persistency expected to remain high in 2026 and mortgage-insurance origination trends resembling last year’s levels, the yield is expected to continue along a similar trajectory. Mattke described the mortgage insurance market as competitive, with six active participants. He said gross premium rates declined slightly during the quarter, continuing a gradual multiyear trend, but added that the company did not see a material change in competitive conditions or a steepening in the rate decline. Management said affordability remains strained by mortgage rates and home prices, while the refinance market is likely to remain limited at current interest-rate levels. Mattke said the purchase market showed positive signs during the quarter, but that the company does not expect a major change in the broader market in the foreseeable future. MGIC has not made meaningful changes to its underwriting guidelines, Colson said. The mix of business has remained broadly consistent, although the amount of business with debt-to-income ratios above 45% has declined modestly over the past two years. He said management is comfortable with the current mix and does not see a need for significant underwriting changes. Investment income totaled $59 million, with the investment portfolio’s book yield remaining near 4%. Reinvestment rates on fixed-income securities continued to exceed the book yield, although capital-return activity has limited investment portfolio growth. Underwriting and other expenses declined to $46 million from $52 million a year earlier. The company now expects full-year operating expenses to fall toward the low end of its previously stated $190 million to $200 million range. MGIC paid a quarterly common dividend of $0.15 per share and repurchased 6.6 million shares for $177 million during the second quarter. Over the past four quarters, the company repurchased $746 million of shares and paid $135 million in dividends, representing 124% of net income over that period. The board approved an increase in the quarterly common dividend to $0.17 per share. Colson said the increase marked the company’s sixth consecutive year of dividend growth, representing a 19% compound annual growth rate over that period. Management said share repurchases are being targeted at approximately the level of net income while insurance in force has limited growth and credit performance remains strong. Mattke said the company’s new repurchase authorization should be viewed as a continuation of its existing capital-return approach rather than an acceleration. The company ended the quarter with $6 billion of balance-sheet capital. Its reinsurance program reduced PMIERs required assets by $3.1 billion, or about 52%, at quarter-end. During the quarter, MGIC completed a traditional excess-of-loss reinsurance transaction that provides up to $168 million of protection on eligible 2027 new insurance written. Colson said MGIC intends to remain active in quota-share, excess-of-loss and insurance-linked note markets. The company generally seeks to allocate risk-sharing across those three channels, while using differing structures based on the timing and characteristics of the underlying insured loans. MGIC Investment Corporation (NYSE: MTG) is a leading provider of private mortgage insurance in the United States. Established in 1957 as the nation's first private mortgage insurer, MGIC helps lenders manage credit risk and facilitates homeownership by protecting mortgage loans against default. Headquartered in Milwaukee, Wisconsin, the company operates through its principal subsidiary, Mortgage Guaranty Insurance Corporation, and maintains relationships with a broad network of originators and servicers nationwide. The company's primary business activity involves issuing mortgage insurance policies that enable borrowers to purchase homes with down payments below traditional lending thresholds. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "MGIC Investment Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

MGIC Investment Corporation MTG reported second-quarter 2026 operating net income per share of 87 cents, which beat the Zacks Consensus Estimate by 17.6%. The bottom line also improved 6.1% year over year. Total operating revenues declined 2.6% year over year to $298 million, due to lower net premiums earned and net investment income. The top line missed the Zacks Consensus Estimate by 0.3%. The quarterly results reflected strong underwriting performance and lower losses incurred, partially offset by lower premiums and investment income. MGIC Investment Corporation price-consensus-eps-surprise-chart | MGIC Investment Corporation Quote Insurance in force increased 2.6% year over year to $304.8 billion, exceeding the Zacks Consensus Estimate of $297.5 billion and our estimate of $297.5 billion. Meanwhile, primary delinquency increased 7% to 26,152 loans year-over year during the reported quarter. Net premiums earned declined 2.6% year over year to $238.1 million, missing our estimate of $239 million. Meanwhile, net investment income decreased 2.5% year over year to $59.5 million. The figure was in line with our estimate of $59.3 million but below the Zacks Consensus Estimate of $60.7 million. Persistency, the percentage of insurance remaining in force, was 83.3% as of June 30, 2026, and declining 140 basis points from the year-ago quarter’s level. Meanwhile, new insurance written increased 8.5% year over year to $17.8 billion. Underwriting and other expenses, net, declined 12.5% year over year to $45.6 million. However, underwriting performance improved significantly, with the loss ratio declining to 4.6% from 14.1% in the prior quarter Total losses and expenses increased 12.6% year over year to $65.5 million, attributable to a sharp rise in losses incurred, net, which nearly doubled from the year-ago period. Book value per share, a measure of net worth, increased 9.8% year over year to $24.27 as of June 30, 2026. Shareholder equity was $5 billion as of June 30, 2026, down 2.6% from the 2025-end level. MGIC Investment's PMIERs Available Assets totaled $5.6 billion, or $2.7 billion above its Minimum Required Assets as of June 30, 2026. Total assets were $6.5 billion as of June 30, 2026, down 1.7% from the 2025-end level. Senior notes totaled $646.9 million as of June 30, 2026, reflecting a 1.7% decrease from the 2025-end level. The company repurchased 6.6 million shares of common stock for $176.6 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  bought back shares worth $42.4 million in July 2026. The board approved a dividend of 17 cents per common share payable in Aug 20 to shareholders of record on Aug 5, 2026. Concurrently, the board of directors also approved a share repurchase program, authorizing MTG to repurchase an additional $750 million of common stock through Dec. 31, 2028. MTG currently has a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Selective Insurance Group, Inc. SIGI reported second-quarter 2026 operating earnings of $1.95 per share, which beat the Zacks Consensus Estimate by 13.4%. The bottom line increased 48.9% year over year. Revenues of $1.37 billion rose 4.5% from the year-ago quarter and topped the consensus estimate by 0.7%. Net premiums written declined 5% year over year to $1.22 billion due to a 6% decrease in Standard Commercial Lines, an 8% fall in Standard Personal Lines, and a 2% decline in Excess and Surplus Lines. Our estimate was $1.33 billion. Net premiums earned increased 2.3%. Direct new business plunged to $206.1 million from $248.1 million. Renewal pure price increases averaged 6.5%, down from 9.9% in the prior-year quarter. Chubb Limited CB reported second-quarter 2026 core operating earnings of $7.26 per share, which beat the Zacks Consensus Estimate of $6.63 by 9.5%. The bottom line increased 18.2% year over year. Revenues rose 2.7% year over year to $15.77 billion but missed the consensus mark of $15.90 billion by 0.8%. Net premiums earned increased 5.8% to $13.89 billion. P&C underwriting income increased 18.8% year over year to $1.94 billion. The combined ratio improved 180 basis points to 83.8%, reflecting a lower share of premiums consumed by claims and expenses. Our estimate was $1.15 billion. Cincinnati Financial Corporation CINF reported second-quarter 2026 operating income of $1.43 per share, which missed the Zacks Consensus Estimate by 21.4%. The bottom line declined 27.4% from the year-ago quarter. Total operating revenues for the second quarter were $3 billion, reflecting a 6.8% year-over-year increase. The figure, however, missed the Zacks Consensus Estimate by 1.4%. Earned premiums climbed 6.3% year over year to $2.6 billion. The figure marginally missed the Zacks Consensus Estimate by 1.5%. Net investment income, net of expenses, increased 12% year over year to $319 million, primarily due to a 14% rise in interest income from fixed-maturity securities and a 3% jump in equity portfolio dividends. The figure marginally beat the Zacks Consensus Estimate by 1.8%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MGIC Investment Corporation (MTG) : Free Stock Analysis Report Chubb Limited (CB) : Free Stock Analysis Report Cincinnati Financial Corporation (CINF) : Free Stock Analysis Report Selective Insurance Group, Inc. (SIGI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

For the quarter ended June 2026, MGIC Investment (MTG) reported revenue of $297.61 million, down 2.6% over the same period last year. EPS came in at $0.87, compared to $0.82 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $298.54 million, representing a surprise of -0.31%. The company delivered an EPS surprise of +17.57%, with the consensus EPS estimate being $0.74. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how MGIC performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: GAAP loss ratio (insurance operations only): 4.6% versus 16.6% estimated by two analysts on average. Combined Ratio - Insurance Segment (Net of underwriting expense ratio and Loss ratio): 24.4% versus 38.4% estimated by two analysts on average. GAAP underwriting expense ratio (insurance operations only): 19.8% versus the two-analyst average estimate of 21.9%. Revenues- Net investment income: $59.47 million compared to the $60.69 million average estimate based on two analysts. The reported number represents a change of -2.5% year over year. Revenues- Net premiums earned: $238.06 million compared to the $237.53 million average estimate based on two analysts. The reported number represents a change of -2.6% year over year. Revenues- Other revenue: $0.09 million versus $0.41 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -74% change. View all Key Company Metrics for MGIC here>>> Shares of MGIC have returned +8.4% over the past month versus the Zacks S&P 500 composite's +1.9% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MGIC Investment Corporation (MTG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved the highest New Insurance Written (NIW) since Q3 2022, driven by seasonal growth in a slightly larger mortgage origination market. Performance was bolstered by a $43 million favorable loss reserve development, primarily resulting from better-than-expected cure activity on 2025 delinquency notices. Management attributes the 16-basis-point year-over-year increase in delinquency rates to a broad-based 'credit normalization' rather than geographic or segment-specific deterioration. Maintained a robust capital structure with $6 billion in balance sheet capital, utilizing a diversified reinsurance program to reduce PMIERs required assets by approximately 52%. Operational efficiency improved as management focused on disciplined expense management, leading to a downward revision of expected full-year operating expenses. Strategic positioning remains focused on long-term value through high persistency (83%) and a well-balanced portfolio supported by strong credit quality. Expects in-force premium yield to continue its current trajectory, assuming high persistency and mortgage insurance origination trends remain similar to the previous year. Anticipates a seasonal increase in delinquencies during the second half of the year, though trends are expected to remain consistent with the three-year normalization cycle. Management maintains a 7.5% initial claim rate assumption for new delinquency notices, though current data suggests ultimate claim rates for recent quarters may trend in the 3% to 4% range. Capital allocation strategy prioritizes prudent insurance-in-force growth, but management will continue returning capital to shareholders if market conditions limit growth opportunities. Full-year operating expenses are now projected to be toward the low end of the previously stated $190 million to $200 million range. Executed a traditional excess of loss reinsurance transaction providing up to $168 million of protection on eligible 2027 NIW to manage future loss volatility. Increased the quarterly common stock dividend to $0.17 per share, marking six consecutive years of increases and a 19% compound annual growth rate over that period. Management noted that affordability remains stretched due to high interest rates and home prices, which may continue to limit the pool of potential homebuyers. Identified that approximately 5 percentage points of the 17% annual falloff in persistency is driven by mandatory cancellations under the Homeowners Protection Act. Management confirmed that delinquency increases are broad-based and not correlated to specific regions or home price changes in particular states. The trend is viewed as a continuous roll-forward to more recent vintages, which is expected as the market moves away from pandemic-era lows. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. While current ultimate claim rates are trending between 3% and 4%, management is maintaining a conservative 7.5% initial expectation for new notices. If current favorable credit conditions persist, management anticipates additional reserve redundancy may be released through future favorable development. The market remains competitive with six active participants, causing a slight downward 'grind' in gross premium rates over the last couple of years. Management characterized this trend as expected and not indicative of a steepening decline or major shift in the competitive landscape. The recent excess of loss (XOL) deal was chosen to cover 2027 NIW specifically, as ILN markets typically require a 'warehouse' of already in-force loans. Management intends to remain programmatic in both markets, using XOL for forward-looking risk and ILNs for larger, established pools of risk. The new share repurchase authorization is a continuation of current strategy rather than an acceleration. Management aims to size repurchases to be approximately equal to net income while using dividends to draw down excess liquidity at the holding company.