Executive Summary

Q1 2025 delivered net income of $185.5m ($0.75 diluted EPS) on total revenues of $306.2m; EPS beat Street ($0.75 vs $0.6875*) while revenue was roughly in line ($306.2m vs $305.8m*) .
Credit performance remained strong, with $50m favorable reserve development from better-than-expected cures on 2023–2024 delinquency notices, supporting the EPS outperformance .
Capital return remains a catalyst: 9.2m shares repurchased for $224.3m in Q1, plus $0.13 dividend; an additional $750m buyback program authorized in April (to year-end 2027) .
Management reiterated 2025 operating expense guidance ($195–$205m) and “flat” in‑force premium yield expectations for the year; ROE annualized at 14.3% for Q1 .

Values retrieved from S&P Global for consensus figures (*).

What Went Well and What Went Wrong

Favorable loss reserve development of $50m, driven by stronger cures on recent delinquency vintages: “our reestimation… resulted in $50 million of favorable loss reserve development” .
Investment income steady with book yield ~3.8%, and unrealized losses improved on lower rates; net investment income was $61m (+$1m y/y) .
Capital management: “We continue to allocate excess capital to share repurchases… and expect share repurchases to remain our primary method of returning capital” .

NIW fell sequentially to $10.2B from $15.9B in Q4; management acknowledged some market share loss in the quarter .
Underwriting expense ratio rose q/q to 22.5% from 20.8% (though below 25.7% y/y), creating modest margin pressure .
Delinquency rate (count-based) increased y/y to 2.30% (from 2.15%) and management expects modest increases in new notices as 2021–2022 books age .

Metric	Q1 2024	Q4 2024	Q1 2025
Total Revenues ($USD Millions)	$294.4	$301.4	$306.2
Net Premiums Earned ($USD Millions)	$242.6	$241.3	$243.7
Net Investment Income ($USD Millions)	$59.7	$61.3	$61.4
Net Income ($USD Millions)	$174.1	$184.7	$185.5
Diluted EPS ($USD)	$0.64	$0.72	$0.75
Loss Ratio (%)	1.9%	3.6%	3.9%
Underwriting Expense Ratio (%)	25.7%	20.8%	22.5%
Net Premium Yield (bps)	33.2	32.9	33.0
In-Force Portfolio Yield (bps)	38.5	38.6	38.4

Component ($USD Millions)	Q1 2024	Q4 2024	Q1 2025
Net Premiums Earned	$242.6	$241.3	$243.7
Net Gains (Losses) on Investments and Other Financial Instruments	($8.5)	($1.6)	$0.7
Net Investment Income	$59.7	$61.3	$61.4
Other Revenue	$0.5	$0.5	$0.3
Total Revenues	$294.4	$301.4	$306.2

KPI	Q1 2024	Q4 2024	Q1 2025
New Insurance Written (NIW, $B)	$9.1	$15.9	$10.2
Insurance In Force (IIF, $B)	$290.9	$295.4	$293.8
Annual Persistency (%)	85.7%	84.8%	84.7%
Primary Delinquency Rate (count-based, %)	2.15%	2.40%	2.30%
Losses Incurred, Net ($USD Millions)	$4.6	$8.7	$9.6
Book Value per Share ($)	$18.97	$20.82	$21.40
Annualized ROE (%)	13.7%	14.0%	14.3%
PMIERs Available Assets ($B)	$5.9	$5.8	$5.9
PMIERs Excess ($B)	$2.5	$2.2	$2.6

Metric	Period	Previous Guidance	Current Guidance	Change
Operating Expenses ($USD Millions)	FY 2025	$195–$205m (Q4 call)	$195–$205m (reaffirmed)	Maintained
In-Force Premium Yield	FY 2025	“Relatively flat in 2025”	“Remain relatively flat for the year”	Maintained
Dividend per Share ($)	Q2 2025	$0.13 declared (Mar 5, 2025)	$0.13 declared (May 21, 2025)	Maintained
Share Repurchase Authorization	Through 2027	$372m remaining as of Jan 31, 2025	Additional $750m authorized (Apr 24, 2025)	Raised

Topic	Previous Mentions (Q3 2024)	Previous Mentions (Q4 2024)	Current Period (Q1 2025)	Trend
Capital return (buybacks/dividends)	Repurchased 5.2m shares; $0.13 dividend; $400m MGIC→HoldCo dividend	Repurchased 7.8m shares; $0.13 dividend; $400m MGIC→HoldCo dividend	Repurchased 9.2m shares; $0.13 dividend; added $750m program	Increasing authorization; payout elevated
Reinsurance strategy	Announced 40% quota share covering 2025–2026 NIW	40% quota share; reduced 2021 QSR cede rate from 30% to 26%	Added XOL on 2020 NIW ($250.6m coverage)	Program broadened; capital efficiency sustained
Expense discipline	Operating expenses ~$53m; full-year $215–$225m	Q4 OpEx $49m; 2025 guide $195–$205m	Q1 OpEx $53m; FY guide maintained $195–$205m	Downshift vs 2024 maintained
Delinquencies/claim assumptions	Seasonal uptick; delinquency rate 2.24%; favorable reserve releases	Initial claim rate 7.3% (hurricane-related); expect modest new notices	Delinquency 2.30%; $50m favorable development; new notices may increase modestly	Still favorable; modest upward pressure expected
Market share/NIW	NIW $17.2B; gained share	NIW $15.9B	NIW $10.2B; lost some share q/q	Volatile; competitiveness remains high
Macro/tariffs/FHFA	Housing resilience; AM Best upgrade	GSE reform scenarios; focus on guard rails	Tariff uncertainty noted; pricing considers wide scenarios; met new FHFA Director	Monitoring policy landscape

“We are very pleased with our first quarter financial results… we reported net income of $186 million and generated an annualized 14.3% return on equity.” (prepared remarks; rounding) .
“We continue to allocate excess capital to share repurchases… and expect share repurchases to remain our primary method of returning capital to shareholders.” .
“We further bolstered our reinsurance program… seasoned excess of loss transaction covering our 2020 NIW… providing $251 million in tail risk reinsurance coverage.” .

Pricing/macro uncertainties (tariffs): “We think about a wide range of potential environments… highly mindful… doesn’t change our normal operations.” .
New notice claim rate framework: 7.5% initial assumption spans a wide range of outcomes; would revisit if macro deteriorates .
Market share volatility: acknowledged share loss this quarter; competitive dynamics drive quarter-to-quarter ebbs .
FHFA/industry structure: meet-and-greet with new Director; MI not expected to be a primary focus, but MGIC aims to be constructive .
Rocket–Mr. Cooper merger impact: no direct read-through expected for MI industry near term .

Metric	Q1 2025 Consensus	Q1 2025 Actual	Surprise
Primary EPS	$0.6875*	$0.75	Beat by $0.0625
Revenue ($USD Millions)	$305.846*	$306.234	In line (+$0.388m)

Values retrieved from S&P Global (*).

EPS beat was driven primarily by $50m favorable loss reserve development from better-than-expected cures on recent notices .

Credit tailwinds persist: favorable reserve releases and low delinquency rates continue to support earnings quality .
Capital return is robust and likely sustained: new $750m buyback authorization plus ongoing quarterly dividend underpin shareholder yield .
Expense trajectory supportive: FY 2025 OpEx guidance ($195–$205m) maintained; continued process and tech-driven efficiency .
Reinsurance enhances capital efficiency and resilience: PMIERs required assets reduced by ~$2.4B (~42%) via reinsurance; added XOL coverage .
Watch NIW/market share volatility amid competitive pricing: sequential NIW decline and acknowledged share loss highlight execution in risk-based pricing .
Near-term narrative: EPS beat with in-line revenue, strong capital actions, and reaffirmed guidance—supportive for sentiment barring macro shocks .
Monitoring points: trajectory of new delinquency notices (aging 2021–2022 books), underwriting expense ratio, and any FHFA/GSE policy shifts .