MGIC Investment Corporation
- Open
- 30.89
- Day high
- 31.00
- Day low
- 30.64
- Prev close
- 30.99
- Volume
- 2.2M
- Mkt cap
- $6.3B
- P/E (TTM)
- 9.5
- EPS (TTM)
- $3.21
- P/B
- 1.3
- P/S
- 5.3
- Yield
- 2.02%
- Per share
- $0.62
- ▼Insiders net selling -$7.8M over the last 3 months (0 open-market buys, 6 sales)
- 🏛Institutions mixed (13F)
MGIC Investment Corporation (MTG) is a Financial Services company listed on NYSE. The stock is up 11% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 6 sales (SEC Form 4).
MGIC Investment Corporation (MTG) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 2 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
MTG earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jul 30, 2026 | $0.76 | $0.87 | +14.0% | $295M | -0.7% |
| Apr 30, 2026 | $0.73 | $0.76 | +4.1% | $297M | -2.0% |
| Feb 2, 2026 | $0.73 | $0.75 | +2.7% | $299M | -0.8% |
| Oct 29, 2025 | $0.72 | $0.83 | +15.3% | $305M | -1.2% |
| Jul 30, 2025 | $0.70 | $0.82 | +17.1% | $304M | -1.3% |
| Apr 30, 2025 | $0.66 | $0.75 | +13.6% | $306M | -0.3% |
| Feb 3, 2025 | $0.65 | $0.72 | +10.8% | $301M | -0.7% |
| Jul 31, 2024 | $0.64 | $0.77 | +20.3% | $305M | +1.6% |
| May 1, 2024 | $0.60 | $0.65 | +8.9% | $294M | -1.7% |
| Jan 31, 2024 | $0.57 | $0.67 | +17.5% | $284M | -5.4% |
| Oct 31, 2023 | $0.57 | $0.64 | +12.7% | $297M | +0.2% |
| Aug 2, 2023 | $0.54 | $0.68 | +25.5% | $291M | -2.2% |
MTG insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Aug 21, 2026 | O'Leary-Gill Danieladirector | Grant | 28 | — |
| Aug 21, 2026 | Lowman Teresita M.director | Grant | 189 | — |
| Aug 21, 2026 | CULVER CURT Sdirector | Grant | 28 | — |
| Aug 21, 2026 | Sculley Sheryl L.director | Grant | 109 | — |
| Aug 21, 2026 | Zandi Markdirector | Grant | 268 | — |
| Aug 21, 2026 | Zandi Markdirector | Grant | 28 | — |
| Aug 21, 2026 | Hartzell Jay C.director | Grant | 195 | — |
| Aug 21, 2026 | CHAPLIN C EDWARDdirector | Grant | 145 | — |
| Aug 21, 2026 | Klein Martin Pdirector | Grant | 36 | — |
| Aug 21, 2026 | Thompson Michael Lealdirector | Grant | 28 | — |
| Aug 21, 2026 | Sculley Sheryl L.director | Grant | 130 | — |
| Aug 21, 2026 | CHAPLIN C EDWARDdirector | Grant | 276 | — |
| Aug 21, 2026 | Hartzell Jay C.director | Grant | 109 | — |
| Aug 10, 2026 | Maggio Paula Cofficer: EVP and General Counsel | Sell | 20,000 | $30.30 |
| Aug 6, 2026 | Mattke Timothy J.director, officer: Chief Executive Officer | Sell | 137,113 | $30.52 |
Source: MTG SEC Form 4 filings, latest Aug 21, 2026. For informational purposes only — not investment advice.
See the full MTG insider & 13F page →MGIC Investment Corporation company profile
Overview
MGIC Investment Corporation (NYSE:MTG) is a leading provider of private mortgage insurance in the United States, founded in 1957 and headquartered in Milwaukee, Wisconsin. The company went public in 1991 and has established itself as one of the dominant players in the mortgage insurance industry. MGIC operates primarily through its subsidiaries to provide mortgage credit risk management solutions to residential mortgage lenders, serving as a critical component in the U.S. housing finance system by enabling homebuyers to purchase homes with down payments as low as 3-5% while protecting lenders against default losses.
Business
MGIC operates in the private mortgage insurance (PMI) industry, which serves as a crucial bridge in the U.S. housing market. When homebuyers cannot make a 20% down payment on their home purchase, federal regulations require lenders to obtain mortgage insurance to protect against potential losses from borrower defaults. This insurance can come from government agencies like the FHA or from private companies like MGIC. The company's core product is primary mortgage insurance, which provides coverage on individual residential mortgage loans. When a borrower defaults on their mortgage, MGIC's insurance covers the unpaid loan principal, delinquent interest, and various expenses associated with foreclosure proceedings. This protection allows lenders to offer mortgages to borrowers with lower down payments, typically ranging from 3% to 19.99% of the home's purchase price. MGIC generates revenue through several complementary services. The primary revenue stream comes from monthly insurance premiums paid by borrowers, calculated as a percentage of the outstanding loan balance. The company also provides contract underwriting services, where MGIC's underwriters evaluate loan applications on behalf of lenders, and offers reinsurance services to transfer portions of its risk to other insurance companies. Additionally, MGIC provides various ancillary services to mortgage lenders and government-sponsored entities like Fannie Mae and Freddie Mac. The company maintains a massive portfolio with approximately $294 billion in insurance in force, representing hundreds of thousands of individual mortgage loans across the United States, Puerto Rico, and Guam. MGIC serves a diverse customer base including savings institutions, commercial banks, mortgage brokers, credit unions, mortgage bankers, and other residential mortgage originators.
Revenue model
MGIC's business model centers on premium collection from borrowers who pay monthly mortgage insurance premiums as part of their mortgage payment. These premiums are calculated as basis points of the outstanding loan balance, with MGIC currently earning approximately 38-39 basis points annually on its insurance in force. For a $300,000 mortgage, this translates to roughly $1,140 in annual premiums paid by the borrower. The company's customers are mortgage lenders who purchase the insurance policies, but the ultimate payers are homebuyers who cannot make 20% down payments. MGIC also generates income from its investment portfolio, earning approximately $61 million quarterly from invested premiums and capital reserves. Contract underwriting services and reinsurance operations provide additional revenue streams, though these represent smaller portions of total income. Several factors significantly impact MGIC's profitability margins. Interest rate environments dramatically affect both new business volume and persistency rates - when rates rise, fewer people refinance (increasing persistency and extending premium collection periods), but new mortgage originations decline. Home price appreciation benefits MGIC by building borrower equity, reducing default risk and enabling automatic policy cancellation when loan-to-value ratios drop below 80%. Conversely, home price declines increase default risk and extend the duration of insurance coverage. Economic conditions directly impact claim frequencies, with unemployment rates being a primary driver of mortgage defaults. Credit quality of new originations affects future loss ratios, while competitive dynamics in the mortgage insurance industry influence pricing power. Regulatory changes, particularly from the Federal Housing Finance Agency (FHFA) which oversees Fannie Mae and Freddie Mac, can significantly impact market dynamics and pricing structures. The company's reinsurance strategy also affects profitability by transferring risk and reducing required capital reserves, currently covering approximately 85% of risk in force.
Competitive moat
MGIC operates in an industry with significant regulatory barriers to entry and substantial capital requirements, creating a moderate competitive moat. The private mortgage insurance industry is dominated by only a handful of players, with MGIC being one of the largest. New entrants face extensive regulatory approval processes, must demonstrate substantial financial strength to meet PMIERs (Private Mortgage Insurer Eligibility Requirements) capital standards, and need to build relationships with thousands of mortgage lenders nationwide. The company benefits from high switching costs for lenders who have integrated MGIC's underwriting systems and processes into their operations. Lenders prefer working with established, financially strong mortgage insurers due to the long-term nature of the coverage and the need for reliable claims paying ability over decades. MGIC's scale advantages include sophisticated risk management systems, extensive actuarial capabilities, and operational efficiencies that smaller competitors struggle to match. However, MGIC's moat faces several competitive pressures. The company competes directly with other large private mortgage insurers like Radian Group, Essent Group, and National MI, leading to periodic pricing pressure during soft market cycles. Government competition through FHA insurance provides an alternative for borrowers, particularly during economic downturns when private insurers may tighten underwriting standards. Additionally, when home prices appreciate significantly, borrowers can cancel their mortgage insurance once reaching 80% loan-to-value ratios, creating natural portfolio runoff. The industry's cyclical nature means that competitive dynamics shift with economic conditions. During favorable economic periods, competitors may engage in aggressive pricing to gain market share, while economic stress can lead to industry consolidation and more disciplined pricing. MGIC's financial strength and long operating history provide some defensive characteristics, but the company cannot entirely escape the commodity-like aspects of mortgage insurance pricing during highly competitive periods.
Risks & safety
MGIC demonstrates a strong margin of safety with robust financial metrics and conservative capital management, though the business remains inherently cyclical and sensitive to economic conditions. • Capital Position: Holding company liquidity of $824 million provides substantial financial flexibility. PMIERs excess assets of $2.5 billion significantly exceed regulatory requirements, indicating strong solvency position. • Debt and Leverage: Minimal debt burden with debt-to-equity ratio of approximately 12%. The company recently retired convertible debentures, further strengthening the balance sheet. • Cash Generation: Strong free cash flow of $224 million in Q1 2025, with operating cash flows consistently exceeding $180 million quarterly. Annual free cash flow of approximately $724 million in 2024 demonstrates robust cash generation capability. • Valuation Metrics: Trading at reasonable valuation with P/E ratio around 8.1x and price-to-book ratio of 1.18x. Return on equity of 14-16% indicates efficient capital utilization. • Credit Quality: Portfolio dominated by recent vintages (2020 and later) with strong credit characteristics. Average FICO score of 747 at origination and historically low delinquency rates provide credit quality buffer. • Risk Considerations: Business model inherently exposed to economic cycles and housing market downturns. Concentrated exposure to U.S. residential real estate market creates geographic and sector concentration risk.
Recent development
Over the past few years, MGIC has executed several strategic initiatives to enhance its competitive position and capital efficiency. The company has significantly expanded its reinsurance program, with approximately 85% of its risk in force now covered by reinsurance arrangements. This includes executing multiple quota share agreements and Insurance-Linked Note (ILN) transactions, which reduce required capital reserves by $2.2 billion and improve return on equity. MGIC has pursued aggressive capital return strategies, returning approximately $700 million to shareholders in 2024 through share repurchases and dividends. The company has consistently increased its dividend, most recently by 13% to $0.13 per share quarterly, and has authorized multiple share repurchase programs totaling $750 million. This capital deployment reflects management's confidence in the business model and excess capital generation capabilities. The company has focused on operational efficiency improvements and expense management while maintaining its underwriting discipline. MGIC has invested in technology and risk management systems to enhance its competitive position and operational scalability. The company has also strengthened its financial profile, earning credit rating upgrades from both S&P (to A-) and A.M. Best (to A with stable outlook). Recent strategic positioning includes maintaining pricing discipline during competitive market periods and focusing on risk-adjusted returns rather than pure market share gains. MGIC has demonstrated flexibility in adjusting its reinsurance arrangements, recently signing a multiyear 40% quota share agreement for 2025-2026 policies while canceling older reinsurance treaties to optimize its risk profile and capital efficiency.
MTG company profile · for informational purposes only — not investment advice.
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