MGIC Investment Shares Gain 2.3% as Q2 Earnings Top Estimates

Shares of MGIC Investment Corporation MTG gained 2.3% in the last three trading session as the insurer’s bottom line beat expectations. MTG reported second-quarter 2025 operating net income per share of 82 cents, which beat the Zacks Consensus Estimate by 17.1%. Moreover, the bottom line increased 6.5% year over year.MGIC Investment recorded total operating revenues of $306 million, which remained flat year over year on higher net investment income, other revenues and premiums earned. The top line missed the consensus mark by 0.4%.MGIC Investment Corporation Price, Consensus and EPS Surprise MGIC Investment Corporation price-consensus-eps-surprise-chart | MGIC Investment Corporation QuoteOperational UpdateInsurance in force increased 1.9% from the prior-year quarter to $297 billion, which missed the Zacks Consensus Estimate of $299 billion.The insurer witnessed a 4.6% year-over-year increase in primary delinquency to 24,444 loans.Net premiums written increased 1.7% year over year to $237.4 million. The figure was higher than our estimate of $230.9 million.Net investment income decreased 0.8% year over year to $61 million. Our estimate was $67.3 million.Persistency — the percentage of insurance remaining in force from one year prior — was 84.7% as of June 30, 2025, down from 85.4% reported in the year-ago quarter.New insurance written was $16.4 billion, up 21.5% year over year. Our estimate was $13.2 billion.Net underwriting and other expenses totaled $52.1 million, down 5% year over year.For the quarter under review, the loss ratio was negative 1.2% compared with negative 7.5% in the second quarter of 2024.Financial UpdateBook value per share, a measure of net worth, increased 12.9% from 2024-end to $22.11 as of June 30, 2025.Shareholder equity was $5.2 billion as of June 30, 2025, down 0.3% from 2024-end.MGIC's PMIERs available assets totaled $5.7 billion, or $2.4 billion above its Minimum Required Assets as of June 30, 2025.Assets were $6.5 billion as of June 30, 2024, down 0.1% from the 2024-end level. Debt was $645 million as of June 30, 2025, which increased 0.1% from the 2024-end level.Capital DeploymentMGIC Investment repurchased 7.1 million shares worth $180.7 millionIn April 2025, the board approved an additional share repurchase program that authorized it to purchase up to $750 million of shares prior to Dec. 31, 2027.Through July 25, 2025, MTG repurchased an additional 2.6 million shares for $68 million of holding company cash.MGIC Investment paid $400 million in dividends to the holding company and 13 cents per share to shareholders in the second quarter. The board also declared a dividend of 15 cents per share to shareholders to be paid on Aug. 21, 2025, to shareholders of record as of Aug. 7, 2025.Zacks RankMGIC Investment 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 InsurersPrudential Financial, Inc. PRU reported second-quarter 2025 adjusted operating income of $3.58 per share, which beat the Zacks Consensus Estimate by 11.5%. The bottom line rose 5.6% year over year. Total revenues of $13.5 billion beat the Zacks Consensus Estimate by 0.2% but declined 2.4% year over year. The decrease in revenues was due to lower premiums.Total benefits and expenses amounted to $11.8 billion, which declined 3.6% year over year in the second quarter.Everest Group, Ltd.’s EG second-quarter 2025 operating income of $17.36 per share beat the Zacks Consensus Estimate by 14.7%. The bottom line increased 3% year over year. Everest Group’s total operating revenues of $4.5 billion increased 6.3% year over year on higher premiums earned and net investment income. The top line beat the consensus mark by 2%. Gross written premiums deteriorated 0.7% year over year to $4.7 billion due to a decline of 3.3% in Insurance, partially offset by 1.6% growth in Reinsurance. Our estimate was $5 billion.Net investment income was $532 million, which increased 0.7% year over year.Chubb Limited CB reported second-quarter 2025 core operating income of $6.14 per share, which outpaced the Zacks Consensus Estimate by 4.2%. The bottom line increased 14.1% year over year. Net premiums written improved 6.3% year over year to $14.2 billion in the quarter, which is in line with the Zacks Consensus Estimate. Our estimate was pegged at $14 billion. Net investment income was $1.5 billion, up 6.8 % year over year. The Zacks Consensus Estimate was pegged at $1.8 billion, while our estimate for the same was $1.9 billion. Revenues of $14.8 million missed the Zacks Consensus Estimate by a whisker but improved 6.9% year over year.Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MGIC Investment Corporation (MTG): Free Stock Analysis Report Chubb Limited (CB): Free Stock Analysis Report Prudential Financial, Inc. (PRU): Free Stock Analysis Report Everest Group, Ltd. (EG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks