A pioneer of the private mortgage insurance industry, this company protects lenders against losses when homebuyers make small down payments, helping more people afford homes. Founded in 1957 by Milwaukee real-estate attorney Max H. Karl, it launched with money raised from friends, associates, and even his barber. Its name, Mortgage Guaranty Insurance Corporation, is often pronounced like "magic" — which early lenders thought it was.
Q2 2026 net income fell 5% to $182.1M as losses incurred swung to an $11M expense
Losses incurred turned to a net expense this quarter after years of reserve releases. fell 2.9% to $295.4M and rose 6.2% to $0.86 as lower expenses and buybacks offset the loss swing. The earnings engine now depends on new business and cost control rather than favorable reserve development.
Key takeaways
fell 5% to $182.1M as losses incurred, net swung to an $11M expense from a $3M benefit a year earlier, driven by higher new and increased severity on current-year delinquencies.
Net premiums earned decreased 3% to $238M, driven by higher written under .
Underwriting and other expenses, net declined 13% to $46M, primarily from lower outside service expenses and employee costs, partially offsetting the loss increase.
Section summaries
Management's Discussion and Analysis
Q2 2026 net income fell 5% to $182M on higher losses incurred and lower net premiums earned, partially offset by lower expenses.
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Net premiums earned decreased 3% to $238M, driven by higher under .
rose to $17.8B from $16.4B in Q2 2025, reflecting a larger purchase origination market; full-year 2026 NIW is expected relatively flat versus 2025.
rose 6.2% to $0.86 as the company repurchased 13.8M shares for $369M and paid $0.15 per share dividends; a $0.17 was declared for Q3.
MGIC's Available Assets were $5.6B, exceeding Minimum Required Assets by $2.7B, with risk-to-capital at 9.9:1.
What changed
Q2 2026 rose to $17.8B against the $16.4B Q2 2025 level flagged to watch, with full-year NIW expected flat versus $60.2B.
Losses incurred stayed a net expense at $11M after Q1's $33.2M claims cost, confirming the flagged risk that may not return.
Share repurchases continued at $369M in Q2 after the $192.6M Q1 deployment and $750M April authorization, against the flagged $425.2M remaining at year-end 2025.
Net premiums earned fell 3% to $238M, consistent with the flagged 2026 expectation of modestly lower premiums from ceded reinsurance pressure.
MGIC excess was $2.7B, down from the $2.9B Q1 level and $2.5B year-end 2025, but above the $2.4B Q2 2025 figure.
What to watch
Q3 2026 against the $17.8B Q2 level as management expects full-year NIW flat versus $60.2B.
Whether losses incurred stays a net expense or returns after $11M of Q2 claims cost.
Pace of the expanded program after $561.6M deployed year-to-date and the $750M April 2026 authorization.
Q3 2026 net premiums earned and as under reinsurance treaties keep pressure on the book.
swung to $11M from a $3M benefit a year ago, due to higher new delinquency notices and increased severity on current-year delinquencies.
Underwriting and other expenses, net declined 13% to $46M, primarily from lower outside service expenses and employee costs.
New insurance written rose to $17.8B from $16.4B, reflecting a larger purchase origination market; full-year 2026 NIW is expected to be relatively flat versus 2025.
MGIC’s Available Assets were $5.6B, exceeding Minimum Required Assets by $2.7B, and the was 9.9:1.
The company repurchased 13.8M shares for $369M and paid $0.15 per share quarterly dividends; a $0.17 was declared for Q3 2026.
Quantitative and Qualitative Disclosures About Market Risk
The company's fixed-income portfolio is exposed to credit spread and interest rate risk, managed through investment-grade limits and measured by effective duration.
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risk arises from adverse changes in the additional yield over risk-free rates that compensates for credit, liquidity, and prepayment risks.
The company manages credit risk by restricting investments to primarily investment-grade securities and limiting exposure to any single issue, issuer, or instrument type.
Interest rate risk is quantified using , which was 4.1 years as of June 30, 2026.
A 100-basis-point parallel yield-curve shift would change the fixed-income portfolio's fair value by approximately 4.1%, decreasing for upward shifts and increasing for downward shifts.
Certain legal proceedings arising in the ordinary course of business may be filed or pending against us from time to time. For information about such legal proceedings, you should review Note 15 - “Litigation and Contingencies” to our consolidated financial statements and our Ri…
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Certain legal proceedings arising in the ordinary course of business may be filed or pending against us from time to time. For information about such legal proceedings, you should review Note 15 - “Litigation and Contingencies” to our consolidated financial statements and our Risk Factor titled “We are subject to the risk of legal proceedings” in Item 1A in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.
In addition to the information in this report, you should review the risk factors outlined in our Annual Report on Form 10-K for the year ended December 31, 2025. As of the date of this report, we are not aware of any material changes to those risk factors. Please carefully cons…
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In addition to the information in this report, you should review the risk factors outlined in our Annual Report on Form 10-K for the year ended December 31, 2025. As of the date of this report, we are not aware of any material changes to those risk factors. Please carefully consider the risks and uncertainties discussed here and in our risk factor disclosures, as they could impact our business, operating results, and financial condition.