Description

MGIC Investment’s 41% NIW Surge: Can Refi Demand Keep Momentum Alive?

MGIC Investment Corporation reported a net income of $165 million for the first quarter of 2026, yielding an annualized return on equity of 13%. Book value per share rose by 10% year-over-year to $23.63. New insurance written (NIW) reached $14 billion, marking a 41% increase compared to the prior year and representing the highest first-quarter NIW since 2022. This growth was primarily driven by heightened refinance activity and a modest expansion in the purchase market. Insurance in force stood at approximately $303 billion, essentially flat from the previous quarter and up 3% year-over-year, while annual persistency declined slightly to 84% from 85%. Management anticipates insurance in force to remain relatively flat throughout 2026, with potential increases in refinance activity if mortgage rates decrease more than expected; however, such a scenario would also likely lead to lower persistency. Credit quality remained stable with no material changes observed to date.