MGIC Investment Corporation
MGIC Investment Corp. is a U.S. mortgage insurance holding company whose main operating subsidiary, MGIC, insures residential mortgage loans for lenders and related mortgage credit risk programs. The company earns premiums by protecting lenders and investors against borrower default, while also providing ancillary mortgage credit risk management solutions and reinsurance-linked products tied to GSE programs.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenueInsurance on residential first-lien mortgages that protects lenders against borrower default.
Insurance and reinsurance covering portions of credit risk in GSE CRT and pool programs.
Net investment income generated from the company’s insurance float and holding company assets.
Smaller revenue streams from ancillary mortgage credit risk services and other items.
Customers
MGIC sells to originators of residential mortgage loans, including banks, mortgage bankers, credit unions, mortgage brokers, savings institutions and other lenders. These customers buy mortgage insurance to obtain credit enhancement, capital relief, and access to mortgage lending channels that require or prefer insured loans. The company’s business is highly relationship-driven, and pricing, underwriting standards, and claims-paying practices are central to customer retention.
Banks, mortgage bankers, savings institutions, credit unions and brokers buy primary mortgage insurance to originate more loans with lower credit risk.
A small number of large customers place substantial volumes and can materially affect NIW and premiums if relationships change.
Participants in CRT and pool insurance programs buy coverage linked to GSE mortgage reference pools.
Originators and brokers influence placement decisions and drive policy flow into MGIC’s insurance platform.
Strategy
MGIC’s strategy centers on maximizing value from mortgage credit enhancement, improving customer experience, and using digital and analytical capabilities to compete on pricing and service. The company also emphasizes capital strength, risk transfer, and disciplined capital deployment so it can support growth, meet regulatory requirements, and return excess capital to shareholders.
Large lender relationships drive new insurance volume and premium stability.
Risk-based pricing and customized rate plans require faster, more precise underwriting.
Capital strength supports PMIERs compliance, ratings, and the ability to write new business.
Reinsurance and CRT programs help manage exposure and capital usage across cycles.
Geography
MGIC writes business throughout the United States and also in Puerto Rico and Guam. Its principal mortgage insurance subsidiary is licensed in all 50 states, the District of Columbia, Puerto Rico and Guam, so the company’s exposure is tied to U.S. housing, employment and mortgage-credit conditions rather than international markets.
Risks
MGIC’s earnings depend on mortgage credit performance, lender relationships, and its ability to maintain regulatory capital and PMIERs eligibility. The company also faces investment portfolio risk, litigation and claims-related regulatory scrutiny, and concentration risk from a few large customers that can shift business volumes quickly.
- Mortgage credit deteriorationImpact: HighLikelihood: Medium
Higher unemployment, lower home prices or tighter credit can increase defaults and claims.
Exposure: Primary mortgage insurance portfolio and CRT programs
- Customer concentrationImpact: HighLikelihood: Medium
A few large lenders account for a meaningful share of NIW and premiums, so volume loss can be abrupt.
Exposure: Top lender relationships
- Regulatory capital and PMIERs complianceImpact: HighLikelihood: Medium
Insurance regulations and GSE eligibility rules affect how much business MGIC can write and how much capital it must hold.
Exposure: Insurance subsidiaries and holding company liquidity
- Investment portfolio market riskImpact: MediumLikelihood: Medium
Interest-rate changes and credit impairments can reduce investment income and book value.
Exposure: Fixed income and short-term investment portfolio
- Claims-paying and litigation riskImpact: MediumLikelihood: Low
Disputes over rescissions, curtailments and claims handling can lead to legal and regulatory costs.
Exposure: Mortgage insurance claims process
Accounting
Judgemental itemsReserve estimates drive reported earnings and can change with housing and delinquency trends.
Impact: Affects claims expense and policyholders' position
Mortgage insurance premiums are recognized over time as coverage is provided.
Impact: Affects revenue timing and quarterly comparability
Market movements and security sales affect net investment income and book value.
Impact: Affects total revenues and equity
Insurance regulation limits upstream cash flow from MGIC to the holding company.
Impact: Affects liquidity, buybacks and shareholder dividends
Asset haircuts and exclusions influence capital required to support the insurance book.
Impact: Affects capital efficiency and growth capacity
Similar listed companies
Publicly listed companies with a comparable business focus.
NMI Holdings, Inc.
NMIH · Surety Insurance
American Integrity Insurance Group, Inc.
AII · Fire, Marine & Casualty Insurance
Enact Holdings, Inc.
ACT · Insurance Agents, Brokers & Service
AGNC Investment Corp.
AGNC · Real Estate Investment Trusts
PennyMac Financial Services, Inc.
PFSI · Mortgage Bankers & Loan Correspondents
Radian Group Inc
RDN · Surety Insurance
Last updated: 24/09/2026