Q4 2025 MGIC Investment Corp Earnings Call Transcript
Key Points
- MGIC Investment Corp (MTG) reported a net income of $169 million for the fourth quarter, with an annualized return on equity of 13%.
- The company achieved a significant milestone by surpassing $300 billion of insurance in force, ending the year with over $303 billion.
- MGIC Investment Corp (MTG) wrote $17 billion of high-quality new business in the fourth quarter and $60 billion for the full year, marking an 8% increase from the prior year.
- The credit quality of the insurance portfolio remains solid with an average credit score at origination of 748, and early payment defaults remain low.
- The company returned $915 million of capital to shareholders through share repurchases and dividends, reducing shares outstanding by 12% and marking five consecutive years of dividend growth.
- The account-based delinquency rate increased by 3 basis points year-over-year and 11 basis points in the quarter, reflecting normal seasonal patterns and aging of the 2021 and 2022 book years.
- The in-force premium yield slightly declined in the fourth quarter, attributed to increased refinance activity and the timing of premium collection.
- Persistency remained high, which could limit growth in insurance in force if mortgage rates decrease and refinance activity increases.
- The company faces potential regulatory risks, such as possible reductions in FHFA premiums, which could impact the mortgage insurance market.
- Housing affordability remains a challenge, and while MGIC Investment Corp (MTG) supports policy changes to improve affordability, these challenges could impact future business growth.
Good day, ladies and gentlemen, and thank you for standing by. Welcome to the MGIC Investment Corporation fourth-quarter 2025 earnings call. (Operator Instructions) At this time, I would like to turn the conference over to Dianna Higgins, Head of Investor Relations. Please go ahead.
Thank you, Howard. Good morning, and welcome, everyone. Thank you for your interest in MGIC. Joining me on today's call to discuss our results for the fourth quarter are Tim Mattke, Chief Executive Officer; and Nathan Colson, Chief Financial Officer and Chief Risk Officer.
Our press release, which contains MGIC's fourth 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 reference during today's call. As well as a reconciliation of non-GAAP financial measures to their most comparable GAAP measures.
In addition, we posted a quarterly supplement on our website that
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