MGIC Q2 Earnings Beat Estimates, Revenues Miss on Lower Premiums

The quarterly results reflected strong underwriting performance and lower losses incurred, partially offset by lower premiums and investment income.

MTG's Operational Update

Insurance in force increased 2.6% year over year to $304.8 billion, exceeding the Zacks Consensus Estimate of $297.5 billion and our estimate of $297.5 billion. Meanwhile, primary delinquency increased 7% to 26,152 loans year-over year during the reported quarter.

Net premiums earned declined 2.6% year over year to $238.1 million, missing our estimate of $239 million. Meanwhile, net investment income decreased 2.5% year over year to $59.5 million. The figure was in line with our estimate of $59.3 million but below the Zacks Consensus Estimate of $60.7 million.

Persistency, the percentage of insurance remaining in force, was 83.3% as of June 30, 2026, and declining 140 basis points from the year-ago quarter’s level. Meanwhile, new insurance written increased 8.5% year over year to $17.8 billion.

Underwriting and other expenses, net, declined 12.5% year over year to $45.6 million. However, underwriting performance improved significantly, with the loss ratio declining to 4.6% from 14.1% in the prior quarter

Total losses and expenses increased 12.6% year over year to $65.5 million, attributable to a sharp rise in losses incurred, net, which nearly doubled from the year-ago period.

MTG‘s Financial Update

Book value per share, a measure of net worth, increased 9.8% year over year to $24.27 as of June 30, 2026.

Shareholder equity was $5 billion as of June 30, 2026, down 2.6% from the 2025-end level.

MGIC Investment's PMIERs Available Assets totaled $5.6 billion, or $2.7 billion above its Minimum Required Assets as of June 30, 2026.

Total assets were $6.5 billion as of June 30, 2026, down 1.7% from the 2025-end level.

Senior notes totaled $646.9 million as of June 30, 2026, reflecting a 1.7% decrease from the 2025-end level.

MTG’s Capital Deployment

The company repurchased 6.6 million shares of common stock for $176.6 million and paid a dividend of $400 million to the holding company. MGIC also paid a dividend of 15 cents per common share to shareholders.

MTG  bought back shares worth $42.4 million in July 2026.

The board approved a dividend of 17 cents per common share payable in Aug 20 to shareholders of record on Aug 5, 2026.

Concurrently, the board of directors also approved a share repurchase program, authorizing MTG to repurchase an additional $750 million of common stock through Dec. 31, 2028.

MTG’s Zacks Rank

MTG currently has a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Insurers

Selective Insurance Group, Inc. SIGI reported second-quarter 2026 operating earnings of $1.95 per share, which beat the Zacks Consensus Estimate by 13.4%. The bottom line increased 48.9% year over year. Revenues of $1.37 billion rose 4.5% from the year-ago quarter and topped the consensus estimate by 0.7%.

Net premiums written declined 5% year over year to $1.22 billion due to a 6% decrease in Standard Commercial Lines, an 8% fall in Standard Personal Lines, and a 2% decline in Excess and Surplus Lines. Our estimate was $1.33 billion. Net premiums earned increased 2.3%. Direct new business plunged to $206.1 million from $248.1 million. Renewal pure price increases averaged 6.5%, down from 9.9% in the prior-year quarter.

Chubb Limited CB reported second-quarter 2026 core operating earnings of $7.26 per share, which beat the Zacks Consensus Estimate of $6.63 by 9.5%. The bottom line increased 18.2% year over year. Revenues rose 2.7% year over year to $15.77 billion but missed the consensus mark of $15.90 billion by 0.8%.

Net premiums earned increased 5.8% to $13.89 billion. P&C underwriting income increased 18.8% year over year to $1.94 billion. The combined ratio improved 180 basis points to 83.8%, reflecting a lower share of premiums consumed by claims and expenses. Our estimate was $1.15 billion.

Cincinnati Financial Corporation CINF reported second-quarter 2026 operating income of $1.43 per share, which missed the Zacks Consensus Estimate by 21.4%. The bottom line declined 27.4% from the year-ago quarter. Total operating revenues for the second quarter were $3 billion, reflecting a 6.8% year-over-year increase. The figure, however, missed the Zacks Consensus Estimate by 1.4%.

Earned premiums climbed 6.3% year over year to $2.6 billion. The figure marginally missed the Zacks Consensus Estimate by 1.5%. Net investment income, net of expenses, increased 12% year over year to $319 million, primarily due to a 14% rise in interest income from fixed-maturity securities and a 3% jump in equity portfolio dividends. The figure marginally beat the Zacks Consensus Estimate by 1.8%. 

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