MGIC Investment’s (NYSE:MTG) Q2 CY2026 Earnings Results: Revenue In Line With Expectations

Mortgage insurer MGIC Investment (NYSE:MTG) met Wall Street’s revenue expectations in Q2 CY2026, but sales fell by 2.9% year on year to $295.4 million. Its non-GAAP profit of $0.87 per share was 14.2% above analysts’ consensus estimates.

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Tim Mattke, CEO of MTG and Mortgage Guaranty Insurance Corporation (“MGIC”) said, “Our strong second quarter results, highlighted by a 14.5% return on equity, reflect the continued success of our disciplined execution.

Company Overview

Founded in 1957 when the modern mortgage insurance industry was in its infancy, MGIC Investment (NYSE:MTG) provides private mortgage insurance that protects lenders when homebuyers default on their loans, enabling borrowers to purchase homes with smaller down payments.

Revenue Growth

Big picture, insurers generate revenue from three key sources. The first is the core business of underwriting policies. The second source is income from investing the “float” (premiums collected upfront not yet paid out as claims) in assets such as fixed-income assets and equities. The third is fees from various sources such as policy administration, annuities, or other value-added services. Unfortunately, MGIC Investment struggled to consistently increase demand as its $1.20 billion of revenue for the trailing 12 months was close to its revenue five years ago. This was below our standards and suggests it’s a low quality business.

Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. Just like its five-year trend, MGIC Investment’s revenue over the last two years was flat, suggesting it is in a slump. Note: Quarters not shown were determined to be outliers because they were impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.

This quarter, MGIC Investment reported a rather uninspiring 2.9% year-on-year revenue decline to $295.4 million of revenue, in line with Wall Street’s estimates.

Net premiums earned made up 82.2% of the company’s total revenue during the last five years, meaning MGIC Investment barely relies on non-insurance activities to drive its overall growth.

Our experience and research show the market cares primarily about an insurer’s net premiums earned growth as investment and fee income are considered more susceptible to market volatility and economic cycles.

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Book Value Per Share (BVPS)

Insurance companies are balance sheet businesses, collecting premiums upfront and paying out claims over time. The float (premiums collected but not yet paid out) is invested, creating an asset base supported by a liability structure. Book value per share (BVPS) captures this dynamic by measuring these assets (investment portfolio, cash, reinsurance recoverables) less liabilities (claim reserves, debt, future policy benefits). BVPS is essentially the residual value for shareholders.

We therefore consider BVPS very important to track for insurers and a metric that sheds light on business quality because it reflects long-term capital growth and is harder to manipulate than more commonly-used metrics like EPS.

MGIC Investment’s BVPS grew at an impressive 10.9% annual clip over the last five years. The last two years show a similar trajectory as BVPS grew by 11.3% annually from $19.58 to $24.27 per share.

Key Takeaways from MGIC Investment’s Q2 Results

It was good to see MGIC Investment beat analysts’ EPS expectations this quarter. On the other hand, its revenue was in line. Overall, we think this was a solid quarter with some key areas of upside. The stock remained flat at $30.47 immediately after reporting.

Is MGIC Investment an attractive investment opportunity at the current price? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).