MGIC Investment Corporation MTG reported first-quarter 2025 operating net income per share of 75 cents, which beat the Zacks Consensus Estimate by 13.6%. Moreover, the bottom line increased 15.4% year over year. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Shares gained 1.9% in the aftermarket trading session to reflect the outperformance. 

MGIC Investment recorded total operating revenues of $305 million, which increased 0.7% year over year on higher net investment income and net premiums earned. The top line however missed the consensus mark by 1.5%.

Operational Update

Insurance in force increased 1% from the prior-year quarter to $293.8 billion. The Zacks Consensus Estimate was $297 billion. Our estimate was $296.8 billion. New insurance written was $10.2 billion, up 12.1% year over year.

MGIC Investment Corporation Price, Consensus and EPS SurpriseMGIC Investment Corporation Price, Consensus and EPS Surprise

MGIC Investment Corporation price-consensus-eps-surprise-chart | MGIC Investment Corporation Quote

The insurer witnessed a 5.3% increase in primary delinquency to 25,438 loans. 

Net premiums written increased 0.7% year over year to $235 million. The figure was lower than our estimate of $238.4 million.

Net investment income increased 2.8% year over year to $61.4 million. Our estimate was $64.3 million. The Zacks Consensus Estimate was pegged at $64 million.

Persistency — the percentage of insurance remaining in force from one year prior — was 84.7% as of March 31, 2025, down from 85.7% in the year-ago quarter. 

Total losses and expenses decreased 3.9% year over year to $71.6 million. 

For the quarter under review, the loss ratio was 3.9% deteriorating 20 basis points year over year. Underwriting expense ratio was 20.8, marking an improvement of 320 basis points year over year.

Financial Update

Book value per share, a measure of net worth, increased 2.8% year over year to $21.40 as of March 31, 2025. 

Shareholder equity was $5.1 billion as of March 31, 2025, down 0.6% from 2024-end. 

MGIC Investment's PMIERs Available Assets totaled $5.9 billion, or $2.6 billion above its Minimum Required Assets as of March 31, 2025.

Assets were $6.5 billion as of March 31, 2025, down 0.1% from 2024-end. Debt was $645 million as of March 31, 2025, up 0.1% from the 2024-end level.

Capital Deployment

The company bought back 9.2 million shares in the first quarter for $224.3 million. In April, MTG repurchased an additional 2.8 million shares for $65.8 million.

Also, in April 2025, its board of directors approved an additional share repurchase program, authorizing MTG to purchase up to $750 million of common stock prior to Dec. 31, 2027.

MGIC Investment paid $400 million in dividends to the holding company and 13 cents per share to shareholders in the first quarter. The board also declared a dividend of 13 cents per share to shareholders to be paid out on May 21, 2025, to shareholders of record as of May 8, 2025.

Story Continues

Zacks Rank

MTG currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Insurers

Radian Group RDN reported first-quarter 2025 adjusted operating income of 99 cents per share, which beat the Zacks Consensus Estimate by 4.2%. The bottom line decreased 3.9% year over year. Operating revenues remained flat year over year at $306 million.  It missed the Zacks Consensus Estimate by 6.4%. 

MI New insurance written decreased 17.7% year over year to $9.5 billion. Net premiums earned were $234 million, flat year over year. Persistency was 83.7% as of March 31, 2025, contracting 60 basis points year over year.

Prudential Financial, Inc. PRU reported first-quarter 2025 adjusted operating income of $3.29 per share, which beat the Zacks Consensus Estimate by 2.5%. The bottom line rose 7.8% year over year. Total revenues of $13.4 billion declined 38% year over year and missed the Zacks Consensus Estimate by 7.7%. The decrease in revenues was due to lower premiums.

Total benefits and expenses amounted to $18.9 billion, which declined 41% year over year in the first quarter. This increase was due to lower insurance and annuity benefits, interest expense and operating expenses. The figure was higher than our estimate of $13 billion. 

Everest Group EG reported first-quarter 2025 operating income of $6.45 per share, which missed the Zacks Consensus Estimate by 13.5%. The bottom line dropped 60.5% year over year. Total operating revenues of nearly $4.3 billion increased 3.1% year over year on higher premiums earned and net investment income. The top line missed the consensus mark by 4.5%.

Gross written premiums declined 2% year over year to $4.4 billion, attributable to a 1.1% decline in Reinsurance and 0.1% lower gross written premiums in Insurance. The combined ratio deteriorated 1390 basis points (bps) year over year to 102.7 in the reported quarter. The Zacks Consensus Estimate was pegged at 99, while our estimate was pinned at 93.

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