Mortgage insurer MGIC Q4 adjusted EPS misses estimates

Overview

• Mortgage insurer's Q4 net income declined yr/yr, adjusted EPS missed analyst expectations

• Company repurchased 6.8 mln shares for $189.1 mln

• Company executed $250 mln reinsurance transaction for 2021 NIW

Outlook

• MGIC Investment did not provide specific financial guidance for future quarters in press release

Result Drivers

• NEW INSURANCE WRITTEN - MGIC reported an increase in new insurance written to $17.1 bln in Q4 2025, up from $16.5 bln in Q3 2025

• REINSURANCE TRANSACTIONS - MGIC executed a $250 mln reinsurance transaction for 2021 NIW, enhancing risk management

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the property & casualty insurance peer group is "buy."

• Wall Street's median 12-month price target for MGIC Investment Corp is $28.75, about 6.8% above its January 30 closing price of $26.92

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nPn7ZdWCHa

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.