MGIC Investment drops as Q1 loss ratio and delinquencies rise despite buyback boost
MGIC Investment shares fell after the company reported Q1 2026 results showing higher credit costs, including a 14.1% loss ratio and a 2.44% primary delinquency rate. The report still showed $165.3 million net income ($0.76 EPS) and announced a new $750 million share repurchase authorization.
1. What’s moving the stock
MGIC Investment Corp. (MTG) is lower today as investors digest its first-quarter 2026 update, where credit performance softened versus last year. The company’s loss ratio increased to 14.1% and its primary delinquency rate rose to 2.44%, pressuring sentiment even as headline profitability remained solid.
2. Key numbers investors are reacting to
MTG posted Q1 2026 net income of $165.3 million, or $0.76 per diluted share, with total revenues of about $297.1 million. The quarter included net losses incurred of $33.2 million, and management highlighted capital strength with PMIERs excess of $2.9 billion alongside active shareholder returns.
3. Capital returns and balance-sheet actions
Alongside the earnings release, MTG disclosed continued buybacks and new authorization: it repurchased 7.2 million shares for $192.6 million during Q1 and another 1.7 million shares for $47.4 million through April 24, 2026, and its board authorized an additional $750 million of repurchases through December 31, 2028. The company also paid a $0.15 per-share dividend and noted a $324 million excess-of-loss reinsurance agreement executed via an insurance-linked note.
4. What to watch next
Investors will focus on whether delinquency and loss trends stabilize in coming quarters, especially as the mortgage market remains sensitive to rates and borrower affordability. Any further increase in delinquencies or loss severity could outweigh the support from repurchases and dividends, while steadier credit performance would likely refocus attention on MTG’s capital return pace and insurance-in-force profitability.