Key Highlights

  • Third-quarter Net Income declined 8% to USD 175.0 million, but net income per diluted share edged up 2% to USD 0.85 from USD 0.83, as diluted shares for MGIC Investment (NYSE:MTG) dropped to 205.4 million from 231.4 million.
  • Losses incurred, net, rose to USD 23.9 million from USD 10.9 million, a more-than-doubling, while net premiums earned declined 1% to USD 238.5 million and total revenues dropped 2% to USD 299.1 million.
  • A non-GAAP adjusted net Operating Income figure stood at USD 174.7 million, or USD 0.85 a diluted share, versus USD 190.8 million, or USD 0.83, twelve months prior.
  • Over nine months the company bought back 19.0 million shares for USD 521.7 million and declared a quarterly Dividend of USD 0.17 per share, payable on November 23, 2026.

Fewer Diluted Shares Cushion an 8% Drop in Net Income

A filing dated November 4, 2026 covers the quarter ended September 30, 2026 for MGIC Investment (NYSE:MTG). Through its subsidiary, Mortgage Guaranty Insurance Corporation, the company writes private mortgage insurance that protects lenders against borrower defaults on loans with low down payments. Income before tax slid to USD 221.3 million from USD 235.1 million, and net income dropped to USD 175.0 million from USD 191.1 million. According to the filing, per-share Earnings rose only because the diluted share count fell, while realized investment gains and losses were too small to move the numbers, leaving adjusted and GAAP EPS both at USD 0.85.

Ceded Premiums and a Doubling of Loss Costs Pressure the Income Statement

Net premiums earned declined to USD 238.5 million, a shortfall the company attributes mainly to higher premiums ceded under reinsurance. Net premium Yield fell to 31.2 basis points from 32.3 basis points. Losses incurred, net, surged 119% to USD 23.9 million, with the loss ratio at 10.0% versus 4.5%, since new delinquency notices climbed to 14,412 from 13,582 and favorable prior-year reserve releases contracted. The effective tax rate rose to 20.9% from 18.7%. Working in the other direction, Underwriting and other expenses dropped 9% to USD 44.9 million, and net investment income reached USD 60.9 million. Across nine months, net income totaled USD 522.4 million against USD 569.0 million, while EPS was USD 2.47 compared with USD 2.39. Insurance in force stood at USD 307.3 billion and risk in force at USD 82.5 billion.

Capital Cushion, Repurchase Runway and Policy Exposure

Mortgage Guaranty Insurance Corporation held USD 5.8 billion of available Assets under GSE private mortgage insurer requirements, which is USD 2.8 billion above the minimum, with a risk-to-capital ratio of 9.6 to 1. The repurchase authorization still had USD 653.5 million remaining at quarter end, and another 2.5 million shares were bought in October for USD 70.2 million. The filing flags policy risks such as an October 2026 executive order that could speed up mortgage insurance cancellations if a pilot program is established, a push to modernize Credit scoring at the housing finance agencies, along with the unsettled outlook for Fannie Mae and Freddie Mac.

Where Things Stand

Share repurchases do most of the work. MGIC Investment (NYSE:MTG) trimmed diluted shares roughly 11% (calculated) from a year earlier, which carried EPS to USD 0.85 despite an 8% fall in net income, softer premiums and losses that more than doubled off a small base. The filing offers no share price reaction and no guidance. Next markers are the pace of repurchases against the remaining USD 653.5 million, loss trends as delinquencies season, Reinsurance terms for 2027 to 2029, and the USD 0.17 dividend payable on November 23, 2026.