MGIC Loss Ratio Doubles as Delinquencies Climb

The Tip Desk · November 10, 2026 · 3 min read

Net income was $175.0 million, or $0.85 a share, as losses incurred, net more than doubled to $23.9 million and the loss ratio reached 10.0%.

MGIC Investment Corporation (MTG), the mortgage guaranty insurer, reported third-quarter 2026 net income of $175.0 million, or $0.85 a share, down from $182.1 million, or $0.86 a share, in the second quarter. Adjusted net operating income was $174.7 million, or $0.85 a share.

The decline tracked a sharp rise in credit costs. Losses incurred, net more than doubled to $23.9 million from $11.0 million in the prior quarter, lifting the loss ratio to 10.0% from 4.6%. Primary delinquency inventory rose to 27,814 loans and the count-based insurance-in-force delinquency rate to 2.52%, from 26,152 loans and 2.37%.

New notices increased to 14,412 from 12,433, while cures fell to 12,236 from 12,814. Current-quarter losses incurred, net were $58 million, matching the year-earlier figure. Prior-period losses incurred, net were a $34 million release, versus a $43 million release in the second quarter. Average claim rate declined to 22.6% from 23.8%; average severity rose to $69.0 thousand. Net paid claims were $21 million.

New insurance written slipped to $17.1 billion from $17.8 billion in the second quarter. Net premiums earned were essentially unchanged at $238.5 million. Insurance in force increased to $307.3 billion. Annual persistency declined to 82.5% from 83.3%. Net premium yield edged down to 31.2 basis points; in-force portfolio yield was 37.9 basis points. Annualized return on equity declined to 14.2% from 14.5%.

Underwriting expense ratio was 19.1%. Book value per common share fell to $24.06 from $24.27; tangible book value was $25.68. Holding company liquidity declined to $783 million from $930 million at June 30, 2026. PMIERs available assets were $5.8 billion and PMIERs excess $2.8 billion.

The company repurchased 5.1 million shares for $152.5 million in the quarter, after 6.6 million shares for $176.6 million in the second quarter. It paid a dividend of $0.17 a share. Chief executive Tim Mattke said the results demonstrated continued strength and consistency of the business.

MGIC executed a traditional excess-of-loss reinsurance transaction providing up to $168 million of coverage on eligible 2027 new insurance written. It amended the 2023 quota share cede rate to 23.98%, effective December 31, 2026, and exercised its option to terminate the Home Re 2021-2 agreement, redeeming the related insurance-linked notes in full.

For the fourth quarter, the company agreed to a 40% quota share covering eligible 2028 new insurance written and a 20% quota share covering eligible 2029 new insurance written with unaffiliated reinsurers. It declared a $0.17 dividend payable November 23, 2026. In October it repurchased an additional 2.5 million shares for $70.2 million. In November, MGIC paid a $350 million dividend to the holding company.