MGIC Investment Corporation reported a robust first quarter for 2026, achieving a net income of $165 million and an annualized return on equity of 13%. The company’s book value per share increased by 10% year-over-year to $23.63, driven by a significant 41% rise in New Insurance Written (NIW) to $14 billion, the highest first-quarter figure since 2022. This growth was primarily fueled by increased refinance activity and a modestly larger purchase market, despite a slight decline in annual persistency to 84%.
These results highlight MGIC’s strong operational performance and effective capital management strategy, including a $750 million share repurchase program and a quarterly dividend of $0.15 per share. The company’s favorable reserve development of $31 million due to lower-than-expected losses on prior delinquencies further underscores its solid credit quality and risk management practices.
For market professionals, MGIC’s continued focus on prudent insurance growth over capital return, alongside its commitment to enhancing housing affordability, positions the company well for future market dynamics while delivering value to shareholders.
Source: fool.com