MGIC Investment Q2 profit falls on higher incurred losses
MTG•Outlook
- Company did not provide specific financial guidance for the current or future periods.
Drivers of the quarter
- Higher losses incurred - Co reported an increase in net losses incurred in Q2 2026 compared to Q2 2025.
- Lower net premiums earned - Net premiums earned declined yr/yr, contributing to lower income.
- Cost control - Underwriting expense ratio improved to 19.8% from 21.9% yr/yr.
Reported metrics and analyst view
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Net Income | $182.14 mln | ||
| Q2 Adjusted Operating Income | $183.70 mln | ||
| Q2 Dividend | $0.15 |
- The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 4 "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 $28.00, about 8.4% below its July 28 closing price of $30.58.
- The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 8 three months ago.
