Q2 2025 MGIC Investment Corp Earnings Call Transcript
Key Points
- MGIC Investment Corp (MTG) recorded a net income of $193 million with an annualized return on equity of 15% for the second quarter.
- The company wrote $16 billion of new insurance, maintaining a stable insurance in force at $297 billion.
- MGIC Investment Corp's disciplined risk management and strong underwriting standards have resulted in a high-quality insurance portfolio.
- The company has a strong capital management strategy, maintaining a low to mid-teens debt-to-capital ratio and a healthy liquidity buffer.
- MGIC Investment Corp increased its quarterly common stock dividend by 15%, marking five consecutive years of dividend increases with a compound annual growth rate of 20%.
- Market conditions have limited the growth of insurance in force, a trend expected to persist through the remainder of the year.
- The delinquency rate increased by 12 basis points compared to a year ago, although it remains low by historical standards.
- The company anticipates an increase in new delinquency notices and the delinquency rate in the second half of the year due to seasonality and aging of recent book year vintages.
- Investment income remained relatively flat, with the book yield on the portfolio at 4%, limiting growth due to a decline in shorter-term interest rates.
- Operating expenses included a $4 million accounting charge related to lump sum settlements from the pension plan, which may continue to impact future expenses.
Ladies and gentlemen, thank you for standing by, and welcome to the MGIC Investment Corporation second quarter 2025 earnings call (Operator Instructions).
I will now turn the conference over to Dianna Higgins, Head of Investor Relations. Please go ahead.
Thank you, Brittany. 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 Tim Mattke, Chief Executive Officer; and Nathan Colson, Chief Financial Officer and Chief Risk 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, 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
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