MGIC Investment Q2 profit falls on higher incurred losses

MGIC Investment

29/07/2026 21:20

Overview
U.S. mortgage insurer's Q2 net income and adjusted operating income declined yr/yr
Company repurchased 6.6 mln shares for $176.6 mln and authorized $750 mln more for buybacks
Quarterly dividend raised to $0.17 per share for Q3

Outlook
Company did not provide specific financial guidance for the current or future periods

Result Drivers
HIGHER LOSSES INCURRED - Co reported an increase in net losses incurred in Q2 2026 compared to Q2 2025
LOWER NET PREMIUMS EARNED - Net premiums earned declined yr/yr, contributing to lower income
COST CONTROL - Underwriting expense ratio improved to 19.8% from 21.9% yr/yr

Company press release: ID:nPn6jgZWVa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Net Income
 
$182.14  mln
 
Q2 Adjusted Operating Income
 
$183.70 mln
 
Q2 Dividend
 
$0.15
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the property & casualty insurance peer group is "buy."
Wall Street's median 12-month price target for MGIC Investment Corp is $28.00, about 8.4% below its July 28 closing price of $30.58
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 8 three months ago

Reuters Recommended Reads
July 28 - Arch Capital's quarterly profit hit by softer underwriting, higher catastrophe losses
July 28 - Intact Financial Q2 operating income misses estimates on elevated catastrophe, large losses
July 28 - Redwood Trust Q2 net loss narrows sequentially, mortgage banking production doubles y/y

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)