# MGIC Investment Corporation (MTG) — Financial Analysis

**Exchange:** NYSE  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-29  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/MTG/thesis · /stocks/MTG/memo

## Financial Snapshot

---
source: coverage-next-full
ticker: MTG
step: "04"
title: Financial Snapshot — Revenue, Net Income, EPS, Book Value, Combined Ratio (2021–2023)
created: 2026-05-29
---

### Step 04 — Financial Snapshot

#### Three-Year Financial Summary (2021–2023)

All figures in USD millions except per-share items.

| Metric | 2021 | 2022 | 2023 |
|--------|------|------|------|
| Net Premiums Written | $1,127M | $1,083M | $1,048M |
| Net Premiums Earned | $1,057M | $1,068M | $1,055M |
| Net Investment Income | $177M | $197M | $265M |
| Total Revenue | $1,254M | $1,290M | $1,330M |
| Net Losses & LAE | $68M | $92M | $130M |
| Underwriting Expenses | $178M | $182M | $185M |
| Pre-tax Income | ~$930M | ~$930M | ~$920M |
| Net Income | ~$740M | ~$735M | ~$720M |
| Diluted EPS | ~$2.22 | ~$2.28 | ~$2.35 |
| Book Value / Share | ~$14.50 | ~$15.80 | ~$17.20 |
| Shares Outstanding (Diluted, M) | ~335 | ~322 | ~307 |

*Note: Figures are approximations based on public disclosures and analyst consensus; small variations from reported GAAP due to rounding.*

#### Income Statement Analysis

##### Revenue Trend
- Total revenue has grown modestly (~+6% from 2021 to 2023) despite NIW headwinds from rate shock
- Net premiums earned held flat: declining NPW partially offset by high persistency (locked-in IIF)
- Investment income surged ~50% from 2021→2023 as Fed raised rates; this is the bright spot in the current environment
- Revenue base is durable because IIF ($290B) generates recurring premiums regardless of NIW

##### Expense Analysis

| Expense | 2021 | 2022 | 2023 |
|---------|------|------|------|
| Loss ratio | 6.4% | 8.6% | 12.3% |
| Expense ratio | 16.8% | 17.0% | 17.5% |
| **Combined ratio** | **23.2%** | **25.6%** | **29.8%** |

- **Loss ratio:** Remained at historically low levels (well below 10–15% normal; catastrophic is >40%)
- **Expense ratio:** Stable and declining on revenue; SG&A roughly flat in dollar terms
- **Combined ratio:** Among the best in the financial guarantee/insurance space; insurance economics highly favorable

##### Profitability Metrics

| Metric | 2021 | 2022 | 2023 |
|--------|------|------|------|
| Net Profit Margin | ~59% | ~57% | ~54% |
| ROE (Adjusted) | ~16% | ~17% | ~18% |
| ROIC | ~15% | ~16% | ~17% |
| Return on Premiums | ~70% | ~69% | ~68% |

- ROE improving driven by buyback-driven share count reduction and rising investment income
- High-teens ROE achieved with very conservative underwriting — a hallmark of the post-2012 PMI business model

#### Book Value Analysis

##### Book Value Per Share Trend

| Year | GAAP Book Value/Share | Adjusted BV/Share* | P/B Ratio (avg) |
|------|----------------------|-------------------|-----------------|
| 2019 | ~$11.50 | ~$12.20 | ~1.1x |
| 2020 | ~$13.10 | ~$13.80 | ~1.0x |
| 2021 | ~$14.50 | ~$15.20 | ~1.1x |
| 2022 | ~$15.80 | ~$16.50 | ~1.0x |
| 2023 | ~$17.20 | ~$18.00 | ~1.1x |

*Adjusted BV excludes AOCI (unrealized investment losses in 2022 rising rate environment)

- Book value has compounded at ~11% CAGR 2019–2023 despite significant buyback activity (EPS accretive because book value increase > share price paid for buybacks)
- AOCI impact: In 2022, rising rates created ~$400M unrealized loss in bond portfolio → temporary book value headwind; normalizing in 2023–2024

#### Earnings Quality Assessment

**Strengths:**
- Net income closely tracks operating cash flow; minimal accruals manipulation risk
- Loss reserve adequacy: MTG has historically reserved conservatively; reserve development has been favorable
- Investment portfolio marks are observable (liquid, investment-grade securities)
- Buyback execution has been excellent: ~$700–800M annually at prices well below intrinsic value

**Risks:**
- Earnings are sensitive to economic conditions; a 1% unemployment increase historically adds 50–100 bps to loss ratio
- AOCI swings can mislead on true book value during rate dislocation periods
- Reinsurance cession agreements create earnings timing differences (profit commissions recognized on lag)

#### Dividend History

| Year | Annual DPS | Yield (approx) |
|------|-----------|---------------|
| 2021 | $0.08 | 0.4% |
| 2022 | $0.10 | 0.5% |
| 2023 | $0.11 | 0.5% |
| 2024E | $0.12 | 0.5% |

- Dividend modest; MTG prioritizes buybacks over dividends
- Dividend covered ~20x by earnings; payout ratio ~5%
- Management has indicated preference for buybacks given discount to intrinsic value

#### Earnings Per Share Trajectory

- EPS growing at ~5–7% CAGR driven by share count reduction (~8–10M shares/year retired)
- Revenue growth minimal; EPS growth is primarily financial engineering (buybacks) + investment income tailwind
- Forward EPS (2024E): ~$2.50–2.60 (consensus)
- P/E: ~8–9x forward EPS at $20–22 stock price — low absolute multiple reflecting cyclical discount

---
*Research package: coverage-next-full tier | MTG | 2026-05-29*

## Deeper Financial Analysis

The fundamental tier ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/MTG/fundamental

## Navigation

- Overview: /stocks/MTG
- Financials (this page): /stocks/MTG/financials
- Thesis: /stocks/MTG/thesis
- Investment Memo: /stocks/MTG/memo
- Coverage universe: /stocks