MGIC: An Insight Into Its Reinsurance Strategy & Capital Management 

MGIC Investment Corporation reported its financial performance for the third quarter of 2024 with several noteworthy highlights and challenges. In this period, the company demonstrated robust financial results, however, the overall market conditions present both opportunities and challenges for its future operation. On the positive side, MGIC reported a net income of $200 million, which translated to an annualized return on equity of 15.6%. The company’s insurance in force ended the quarter at $293 billion, showing slight growth from the previous quarter, with an annual persistency rate holding steady at 85%. This indicates the company’s ability to sustain its insurance portfolios effectively over the past quarter. Moreover, MGIC wrote $17.2 billion of new insurance during the quarter, marking a 27% increase from the previous quarter, showcasing effective market penetration despite a challenging environment.