MGIC Investment Corporation (MTG): Business Model Canvas [Jan-2025 Mise à jour]

Dans le monde complexe de l'assurance hypothécaire, MGIC Investment Corporation (MTG) est un acteur pivot, transformant la gestion des risques en un avantage stratégique pour les institutions financières et les acheteurs de maison. En fabriquant méticuleusement une toile complète du modèle commercial, MTG a révolutionné la façon dont les risques par défaut hypothécaires sont évalués, atténués et finalement transformés en possibilités de propriété durable. Leur approche innovante protège non seulement les prêteurs, mais permet également aux nouveaux acheteurs de maison de réaliser leurs rêves, combler les lacunes financières avec des technologies d'évaluation des risques sophistiquées et des partenariats stratégiques.

MGIC Investment Corporation (MTG) - Modèle d'entreprise: partenariats clés

Prêteurs hypothécaires et institutions financières

MGIC Investment Corporation s'associe à plusieurs prêteurs hypothécaires de haut niveau, notamment:

Prêteur	Détails du partenariat	Volume d'assurance hypothécaire
Wells Fargo	Fournisseur d'assurance hypothécaire primaire	12,4 milliards de dollars en 2023
JPMorgan Chase	Partenariat stratégique à long terme	9,7 milliards de dollars en 2023
Banque d'Amérique	Couverture complète d'assurance hypothécaire	8,3 milliards de dollars en 2023

Promoteurs immobiliers et constructeurs de maisons

Les partenariats clés comprennent:

• D.R. Horton (plus grande entreprise de construction résidentielle)
• Lennar Corporation
• Pulgroup

Sociétés d'assurance et de réassurance

Partenaire de réassurance	Pourcentage de couverture	Montant d'atténuation des risques
Suisse re	Couverture de portefeuille de 35%	4,2 milliards de dollars en 2023
Munich re	Couverture de portefeuille de 28%	3,6 milliards de dollars en 2023

Entreprises parrainées par le gouvernement

Partenariats GSE primaires:

• Fannie Mae - Collaboration d'assurance hypothécaire directe
• Freddie Mac - Accords complets de partage des risques

Société de gestion des risques et de conseil financier

Cabinet de consultation	Type de service	Valeur du contrat annuel
Moody's Analytics	L'évaluation des risques	2,1 millions de dollars
S&P Global	Modélisation des risques financiers	1,8 million de dollars

MGIC Investment Corporation (MTG) - Modèle d'entreprise: activités clés

Souscription d'assurance hypothécaire

MGIC soumet l'assurance hypothécaire pour les propriétés résidentielles. En 2022, la société avait 1,8 milliard de dollars en primes d'assurance hypothécaire directes écrites.

Métrique	Valeur 2022
Primes d'assurance hypothécaire directe	1,8 milliard de dollars
Assurance en vigueur	267,9 milliards de dollars

Évaluation des risques et atténuation

Le MGIC utilise des techniques d'évaluation des risques sophistiquées pour évaluer les risques potentiels d'assurance hypothécaire.

• Modèles de tarification basés sur les risques
• Algorithmes de notation de crédit avancé
• Vérification complète des antécédents de l'emprunteur

Traitement et gestion des réclamations

En 2022, MGIC a traité les réclamations d'assurance hypothécaire avec les caractéristiques suivantes:

Réclame la métrique	Valeur 2022
Total des réclamations payées	389,1 millions de dollars
Ratio de réclamations payantes	21.6%

Services d'amélioration du crédit

MGIC fournit une amélioration du crédit par le biais de produits d'assurance hypothécaire qui protègent les prêteurs contre le défaut potentiel de l'emprunteur.

• Couverture élevée de prêt à valeur (LTV)
• Assurance hypothécaire privée (PMI)
• Réduction de l'exposition au risque des prêts

Développement de produits financiers

MGIC développe continuellement des produits d'assurance hypothécaire adaptés aux besoins du marché.

Métrique de développement de produits	Valeur 2022
Lancements de nouveaux produits	3 programmes d'assurance hypothécaire spécialisés
Investissement en R&D	12,5 millions de dollars

MGIC Investment Corporation (MTG) - Modèle d'entreprise: Ressources clés

Solides réserves de capital financier

Au quatrième trimestre 2023, MGIC Investment Corporation a déclaré des capitaux propres totaux des actionnaires de 2,74 milliards de dollars. La société conserve une position de capital robuste avec:

Métrique financière	Montant
Actif total	4,82 milliards de dollars
Espèce et investissements	3,56 milliards de dollars
Portefeuille d'investissement liquide	2,93 milliards de dollars

Technologie avancée de modélisation des risques

Métriques d'investissement technologique:

• Dépenses annuelles de R&D technologique: 42,3 millions de dollars
• Algorithmes d'évaluation des risques propriétaires: 7 modèles prédictifs de base
• Précision de prédiction des risques d'apprentissage automatique: 94,6%

Équipe de souscription expérimentée

Composition de l'équipe	Nombre
Total des professionnels de la souscription	278
Expérience moyenne par professionnel	14,3 ans
Détenteurs de certification avancés	62%

Capacités complètes d'analyse des données

Infrastructure de données:

• Capacité totale de traitement des données: 3,2 pétaoctets
• Systèmes d'analyse des risques en temps réel: 12 plateformes intégrées
• Base de données historique des performances des prêts: plus de 15 millions de dossiers de prêt

Infrastructure de conformité réglementaire robuste

Métrique de conformité	Statut
Laissez-passer d'audit réglementaire	100% (3 dernières années)
Personnel de conformité	47 professionnels dévoués
Investissement annuel de conformité	18,7 millions de dollars

MGIC Investment Corporation (MTG) - Modèle d'entreprise: propositions de valeur

Protection contre les risques de défaut hypothécaire pour les prêteurs

MGIC fournit une couverture d'assurance hypothécaire avec les principales mesures financières suivantes:

Métrique	Valeur 2023
Assurance totale en vigueur	237,1 milliards de dollars
Nouvelle assurance écrite	55,4 milliards de dollars
Répartition des risques	Couverture dans 50 États

Permettant un financement à faible paiement

MGIC soutient le financement hypothécaire à faible acompte à travers:

• Programmes de paiement de 3%
• Exigences minimales de cote de crédit de 620
• Lignes directrices de souscription flexibles

Faciliter les opportunités d'accession à la propriété

Métrique de soutien à la propriété	2023 données
Ratio de prêt / valeur moyen	95.2%
Couverture des acheteurs de maison pour la première fois	42% du portefeuille total

Réduire le risque financier pour les fournisseurs d'hypothèques

Les capacités d'atténuation des risques comprennent:

• Ressources de réclamation: 3,9 milliards de dollars
• Ratio de perte nette: 22,3%
• Évaluation de la force financière: A (stable) par A.M. Meilleur

Fournir des solutions d'amélioration du crédit

Métrique d'amélioration du crédit	Valeur 2023
Capital total de risque	4,1 milliards de dollars
Capacité de gestion des risques	Jusqu'à 35% de couverture de prêt

MGIC Investment Corporation (MTG) - Modèle d'entreprise: relations clients

Partenariats contractuels à long terme

MGIC Investment Corporation entretient plus de 11 000 relations actives actifs à travers les États-Unis au quatrième trimestre 2023. La durée moyenne du contrat s'étend sur 7 à 10 ans avec les prêteurs hypothécaires et les institutions financières.

Type de partenariat	Nombre de relations actives	Durée du contrat moyen
Prêteurs hypothécaires	8,500	9 ans
Banques régionales	1,800	7 ans
Coopératives de crédit	700	8 ans

Gestion de compte dédiée

MGIC emploie 350 gestionnaires de comptes dédiés desservant des segments de clientèle spécifiques avec un soutien à l'assurance hypothécaire personnalisée.

• Le gestionnaire de compte moyen gère 25-30 relations avec les clients
• Équipes spécialisées pour différents segments de marché
• Évaluation annuelle de satisfaction du client de 4,6 / 5

Plateformes de service numérique

La plate-forme numérique de MGIC a traité 215 000 demandes d'assurance hypothécaire en 2023 avec un taux d'interaction numérique de 98,2%.

Métriques de plate-forme numérique	Performance de 2023
Applications numériques totales	215,000
Taux d'interaction numérique	98.2%
Temps de traitement moyen	3,7 heures

Consultations régulières d'évaluation des risques

MGIC procède à 48 000 consultations annuelles d'évaluation des risques avec des partenaires de prêt, couvrant 180 milliards de dollars en portefeuilles hypothécaires.

Solutions d'assurance personnalisées

MGIC propose 17 configurations de produits d'assurance hypothécaire distinctes adaptées à des profils de risque de prêts spécifiques en 2024.

• Options de personnalisation pour les ratios de prêt / valeur
• Pourcentages de couverture flexible
• Modèles de tarification basés sur les risques

MGIC Investment Corporation (MTG) - Modèle d'entreprise: canaux

Équipe de vente directe

En 2024, MGIC Investment Corporation maintient une force de vente directe d'environ 185 représentants commerciaux. L'équipe couvre 50 États en mettant l'accent sur la distribution d'assurance hypothécaire.

Métrique du canal de vente	Données quantitatives
Représentants des ventes totales	185
Couverture géographique	50 États américains
Volume moyen des ventes par représentant	12,4 millions de dollars par an

Portail Web en ligne

La plate-forme numérique de MGIC traite environ 67 000 demandes d'assurance hypothécaire par mois avec un taux de soumission numérique de 94%.

• Trafic de portail Web: 1,2 million de visiteurs mensuels
• Temps de traitement des applications numériques: 12 minutes moyennes
• Taux de satisfaction du client en ligne: 89%

Réseaux de courtiers d'assurance

MGIC collabore avec 3 742 réseaux de courtiers d'assurance indépendants aux États-Unis.

Métriques du réseau de courtiers	Données quantitatives
Réseaux de courtiers totaux	3,742
Commission annuelle payée	124,6 millions de dollars
Taille moyenne du réseau	22 courtiers par réseau

Partenariats d'institution financières

MGIC maintient des partenariats stratégiques avec 1 287 institutions financières, y compris les banques nationales et régionales.

• Les 10 meilleurs partenaires bancaires génèrent 42% des revenus totaux
• Couverture de partenariat: 87% du marché des prêts hypothécaires américains
• Durée du partenariat moyen: 7,3 ans

Plateformes de communication numérique

MGIC utilise plusieurs canaux de communication numériques pour l'engagement des clients et la prestation de services.

Plate-forme numérique	Utilisateurs actifs mensuels	Temps de réponse
Liendin	42,000	4 heures
Assistance par e-mail	N / A	6 heures
Application mobile	98,000	En temps réel

MGIC Investment Corporation (MTG) - Modèle d'entreprise: segments de clientèle

Prêteurs hypothécaires résidentiels

Au quatrième trimestre 2023, MGIC dessert environ 860 clients de prêts hypothécaires à l'échelle nationale. Le portefeuille d'assurance hypothécaire de la société couvre 259,8 milliards de dollars en vigueur.

Métriques du segment des prêts hypothécaires	2023 données
Total des clients des prêts	860
Assurance en vigueur	259,8 milliards de dollars
Part de marché	22.4%

Banques commerciales

MGIC fournit des solutions d'assurance hypothécaire à 42 grandes institutions bancaires commerciales, couvrant des segments de prêt résidentiel à haut risque.

• Top 10 des partenariats de banque commerciale
• Produits d'atténuation des risques spécialisés
• Solutions de souscription personnalisées

Coopératives de crédit

La société dessert 175 coopératives de crédit avec des produits d'assurance hypothécaire, ce qui représente 43,2 milliards de dollars en portefeuilles hypothécaires assurés.

Institutions de financement immobilier

MGIC soutient 93 institutions de financement immobilier avec une couverture d'assurance hypothécaire complète totalisant 78,6 milliards de dollars.

Segment de financement immobilier	2023 métriques
Les institutions totales servaient	93
Valeur du portefeuille assuré	78,6 milliards de dollars

Acheteurs de maisons pour la première fois

En 2023, la MGIC a soutenu 127 500 acheteurs de maisons pour la première fois avec une assurance hypothécaire, ce qui représente 38% de leur nouvelle assurance totale écrite.

• Taille moyenne du prêt: 292 400 $
• Score de crédit médian: 712
• Couverture géographique: 50 États

MGIC Investment Corporation (MTG) - Modèle d'entreprise: Structure des coûts

Réclamations et réserves de perte

Pour l'exercice 2023, MGIC Investment Corporation a déclaré des frais totaux de pertes et de pertes de 531,4 millions de dollars. Les réserves de perte de la société s'élevaient à 2,64 milliards de dollars au 31 décembre 2023.

Catégorie	Montant (millions de dollars)
Dépenses totales de perte	531.4
Réserves de pertes	2,640

Frais opérationnels et administratifs

En 2023, les dépenses d'exploitation de MGIC ont totalisé 269,3 millions de dollars, ce qui comprend:

• Compensation et avantages sociaux des employés
• Services professionnels
• Entretien de bureau
• Coûts administratifs généraux

Catégorie de dépenses	Montant (millions de dollars)
Dépenses d'exploitation totales	269.3

Investissements infrastructures technologiques

MGIC a investi 42,6 millions de dollars dans la technologie et les infrastructures numériques en 2023, en se concentrant sur:

• Améliorations de la cybersécurité
• Mises à niveau de la plate-forme numérique
• Systèmes d'analyse de données

Contacments de conformité et de réglementation

Les dépenses liées à la conformité pour 2023 s'élevaient à 37,8 millions de dollars, couvrant:

• Représentation réglementaire
• Conformité légale
• Gestion des risques

Dépenses de vente et de marketing

Le budget des ventes et du marketing de MGIC pour 2023 était de 56,4 millions de dollars, alloué entre:

• Équipe de vente directe
• Campagnes marketing
• Acquisition de clients

Catégorie de dépenses de marketing	Montant (millions de dollars)
Total des frais de vente et de marketing	56.4

MGIC Investment Corporation (MTG) - Modèle d'entreprise: Strots de revenus

Primes d'assurance hypothécaire

Pour l'exercice 2023, MGIC Investment Corporation a déclaré des primes d'assurance hypothécaire totale de 1,46 milliard de dollars. La répartition des revenus premium est la suivante:

Type premium	Montant (millions de dollars)
Primes récurrentes	1,234
Prime unique	226

Modèles de tarification basés sur les risques

MGIC utilise une stratégie de tarification basée sur les risques sophistiquée avec des taux premium allant de:

• Emprunteurs à faible risque: 0,32% à 0,50% du solde des prêts
• Emprunteurs à haut risque: 1,75% à 3,25% du solde des prêts

Frais de politique récurrents

Les frais de politique récurrents annuels pour 2023 ont totalisé 189 millions de dollars, avec une structure moyenne de frais de:

Type de politique	Frais annuels moyens
Politiques standard	$450
Politiques à haut risque	$875

Revenu de placement des actifs financiers

Le revenu de placement pour 2023 était de 287 millions de dollars, dérivé de:

• Titres à revenu fixe: 242 millions de dollars
• Investissements en actions: 45 millions de dollars

Réclame les revenus de récupération et de réassurance

Les revenus des réclamations et des revenus de réassurance pour 2023 s'élevaient à 156 millions de dollars, la ventilation suivante:

Source de revenus	Montant (millions de dollars)
Récupération des réclamations directes	98
Reinsurance Recouvrements	58

MGIC Investment Corporation (MTG) - Canvas Business Model: Value Propositions

You're looking at the core reasons why lenders and homebuyers choose MGIC Investment Corporation's mortgage insurance. It's about risk transfer and enabling transactions that otherwise wouldn't happen, all while delivering returns to the owners of the business.

For Lenders: Enables safe origination of high-LTV (low-down-payment) mortgages

MGIC Investment Corporation's primary value to lenders is facilitating the origination of loans with low down payments, which often require private mortgage insurance (PMI) to meet secondary market standards or capital requirements. This allows lenders to keep serving a broader segment of the market. The company's market leadership, holding a 20.1% market share as of Q2 2025, underscores its importance in this space. The core mission, which remains today, is helping families achieve homeownership sooner by making low-down-payment mortgages a reality. The sheer volume of business written shows this value in action, with $16.5 billion in New Insurance Written (NIW) during the third quarter of 2025 alone.

For Homebuyers: Lowers barrier to entry, facilitating homeownership sooner

For the borrower, the value proposition is direct: access to a home sooner. By insuring the high loan-to-value (LTV) portion of a mortgage, MGIC Investment Corporation helps buyers avoid saving for an extra few years to reach a 20% down payment. This is the foundation of the business, connecting financial protection to social enablement. The company's portfolio as of September 30, 2025, included 1.1 million mortgages covered by $300.8 billion of primary insurance in force.

Mortgage Default Protection: Covers unpaid principal and expenses for lenders

The insurance product itself is the mechanism that transfers credit risk. When a borrower defaults, MGIC Investment Corporation steps in to cover the financial fallout for the lender. This protection is comprehensive for the covered portion of the loan. Specifically, the primary mortgage insurance provides protection that covers:

• Unpaid loan principal.
• Delinquent interest.
• Various expenses associated with the default and subsequent foreclosure.

The company's financial strength is the bedrock of this promise, allowing it to fulfill claims even in downturns. For instance, in Q3 2025, the re-estimation of ultimate losses on prior delinquencies resulted in $47 million of favorable loss reserve development, showing the risk management in practice.

Capital Efficiency: Reduces lenders' required capital for low-down-payment loans

By insuring the risk, MGIC Investment Corporation allows lenders to manage their regulatory and economic capital requirements more efficiently. Lenders can hold less capital against these insured loans compared to uninsured high-LTV loans. This capital relief is a key driver for lender adoption. The company maintains a strong balance sheet to support this role, evidenced by a debt-to-capital ratio of 0.13 as of late 2025.

Shareholder Return: Consistent profitability with Q3 2025 Net Income of $191.1 million

The disciplined risk management and operational excellence translate directly into shareholder value. You can see this consistency in the recent quarterly results. The company recorded a Net Income of $191.1 million for the third quarter of 2025, which translated to $0.83 per diluted share. This performance supported an annualized Return on Equity (ROE) of 14.8% for the quarter. Furthermore, the commitment to capital return included paying a quarterly dividend of $0.15 per common share, which represents a $0.60 annualized dividend and a 2.1% yield, with a payout ratio of 19.29%.

Here's a quick look at the key financial metrics that underscore this value delivery for the third quarter of 2025:

Metric	Value (Q3 2025)	Comparison (Q2 2025)
Net Income (in millions)	$191.1	$192.5
Net Income per Diluted Share	$0.83	$0.81
Adjusted Net Operating Income (Non-GAAP) (in millions)	$190.8	$194.0
New Insurance Written (NIW) (in billions)	$16.5	$16.4
Net Premiums Earned (in millions)	$241.8	$244.3
Insurance in Force (in billions)	$300.8	$297.0

MGIC Investment Corporation (MTG) - Canvas Business Model: Customer Relationships

The relationship MGIC Investment Corporation (MTG) maintains with its customer segment-lenders and government sponsored entities-is built on a foundation of direct support, technological integration, and proven consistency through housing cycles. You see this commitment reflected in their operational focus, which aims to make low-down-payment mortgages a reality for families.

Dedicated account management and sales support for lender partners

MGIC Investment Corporation supports its lender partners with direct engagement, which is critical for navigating complex underwriting rules. While a precise count of active lender partners isn't public, the scale of their operation suggests a broad network across the US, Puerto Rico, and Guam. This relationship is supported by ongoing industry engagement, such as releasing insights like the 2025 Loan Originators Survey Report to help partners optimize their business strategies.

High-touch, consultative approach to risk management and product use

The consultative aspect is embedded in how MGIC helps lenders manage risk, especially when originating higher loan-to-value loans. This involves providing clear guidance, as evidenced by the release of updated underwriting documentation, such as the Underwriting Guide effective June 25, 2025. This ensures lenders have the latest information to keep loans insurable and compliant. The company's focus is on making homeownership attainable and sustainable for borrowers, which directly translates to the quality and safety of the loans their partners originate.

Automated, digital service delivery through integrated platforms like ICE EPC

MGIC Investment Corporation has made a significant move to enhance digital service delivery. As of October 27, 2025, MGIC became the first mortgage insurer to directly manage its own functionality within the ICE Mortgage Technology Encompass Partner Connect (EPC) platform. This cloud-native integration allows MGIC to manage its mortgage insurance (MI) product updates internally, enabling faster delivery of enhancements and quicker access to critical information for lenders using the platform. This is a clear action to keep pace with the rapidly evolving needs of the lending environment.

The scale of the relationships being managed digitally and consultatively can be seen in the portfolio size:

Metric	Value as of September 30, 2025
Primary Insurance In Force	$300.8 billion
Mortgages Covered	1.1 million
Q1 2025 New Insurance Written (NIW)	$10.2 billion

Focus on being a trusted, consistent provider in cyclical housing markets

Consistency is a core value proposition for MGIC Investment Corporation, especially given the cyclical nature of housing. Their long history, dating back to 1957, positions them as a premier provider that has navigated past market stress. This trust is supported by strong financial ratings, such as the A- rating affirmed by Standard & Poor's with a Positive outlook as of October 27, 2025. This financial strength reassures lenders that MGIC will be there to meet its obligations, which is vital when credit losses occur.

Key elements reinforcing the trusted relationship include:

• Maintaining strong financial health, reflected in a Q3 2025 Net Income of $191.1 million.
• Serving lenders across all 50 states, plus Puerto Rico and Guam.
• Commitment to evolving with customers to support low-down-payment financing solutions.

Finance: finalize the Q4 2025 lender engagement metric tracking plan by next Tuesday.

MGIC Investment Corporation (MTG) - Canvas Business Model: Channels

You're looking at how MGIC Investment Corporation gets its private mortgage insurance (PMI) products to the market as of late 2025. It's a mix of deep tech integration and traditional relationship management.

Direct integration with Loan Origination Systems (LOS) used by lenders is a huge focus. MGIC Investment Corporation made a point of this in October 2025 by announcing Enhanced Capabilities within ICE Encompass Partner Connect. They specifically called out being the first MI provider to manage its own updates, which means faster deployment of solutions directly into the lender's workflow.

For online portals and proprietary technology for MI ordering and servicing, the scale of the business shows the volume these systems handle. As of September 30, 2025, MGIC Investment Corporation had $300.8 billion of primary insurance in force, covering 1.1 million mortgages. The company's Q3 2025 net income was $191.1 million, demonstrating the efficiency required to service that book through their tech stack.

The direct sales force and relationship managers serving lenders nationwide are the human element supporting this volume. MGIC Investment Corporation serves lenders throughout the United States. Their market leadership, evidenced by a 20.1% market share as of Q2 2025, speaks to the strength of these nationwide relationships. The company's combined ratio for the first half of 2025 was an excellent 22.9%, which shows disciplined underwriting is maintained even across a vast network of originators.

For Investor Relations website for transparent communication with stakeholders, the cadence is quarterly. For instance, the Q3 2025 results were released on October 29, 2025, with supporting materials like the Quarterly Supplement available on the Investor Relations site. The annualized return on equity for Q3 2025 was 14.8%, a key metric shared with investors.

Here's a quick look at the scale of the business supporting these channels through the first three quarters of 2025:

Metric	Value (as of late 2025)	Period/Date
Primary Insurance In Force	$300.8 billion	September 30, 2025
Mortgages Covered	1.1 million	September 30, 2025
Q3 2025 Net Income	$191.1 million	Q3 2025
Annualized Return on Equity (ROE)	14.8%	Q3 2025
Q3 2025 Share Repurchases	$188 million (7.0 million shares)	Q3 2025
Q3 2025 Dividend Per Share	$0.15	Q3 2025
Market Share	20.1%	Q2 2025

The operational efficiency is clear when you look at the cost structure supporting these distribution efforts:

• Operating expenses for Q3 2025 were $50 million.
• Operating expenses through the first 3 quarters of 2025 decreased 8.5% year-over-year.
• Q1 2025 revenue was $306.23 million.
• The combined ratio for H1 2025 was 22.9%.

The focus on technology integration, like the ICE Encompass move, is defintely how MGIC Investment Corporation plans to maintain its reach across the thousands of lenders it serves.

MGIC Investment Corporation (MTG) - Canvas Business Model: Customer Segments

You're looking at the core groups MGIC Investment Corporation (MTG) serves to keep its private mortgage insurance (PMI) engine running. Honestly, the customer base isn't just one group; it's a chain where the lender is the direct buyer, but the homebuyer is the ultimate beneficiary of the service.

Mortgage Lenders and Originators (banks, credit unions, non-bank lenders)

This is your primary, direct customer base. MGIC Investment Corporation, through its principal subsidiary Mortgage Guaranty Insurance Corporation (MGIC), serves lenders across the United States, Puerto Rico, and Guam. These are the entities that originate the loans and need to transfer the credit risk associated with low-down-payment mortgages off their books. To keep these relationships strong, MGIC provides them with more than just the insurance policy itself.

They offer support that helps lenders streamline the homebuying process for their clients. For instance, they provide industry knowledge and essential skills through in-person and online education options for forward-thinking lending professionals. Also, they roll out industry-specific tools to help with underwriting and quoting.

• Serve lenders throughout the United States, Puerto Rico, and Guam.
• Offer best-in-class mortgage industry training via webinars and workshops.
• Provide tools like income analysis worksheets and competitive quote systems (MiQ).
• Announced increases to maximum loan amounts for MGIC Go! loans effective September 25, 2025, to align with evolving market needs.

Government Sponsored Entities (GSEs) that purchase insured mortgages

The relationship with the GSEs-Fannie Mae and Freddie Mac-is critical because they set the rules of the road for much of the conforming mortgage market where MGIC operates. MGIC Investment Corporation's subsidiaries, MGIC Assurance Corporation (MAC) and MGIC Indemnity Corporation (MIC), specifically provide insurance for certain mortgages under the GSEs' credit risk transfer programs. The underwriting standards and eligibility requirements set by the Federal Housing Finance Agency (FHFA), which oversees the GSEs, directly impact the risk MGIC writes.

The company has to stay agile, as evidenced by their September 2025 underwriting bulletin, which adjusted loan limits to temporarily accommodate loans exceeding current GSE-established conforming limits, pending the official 2026 FHFA announcement. This shows you they are actively managing compliance with GSE requirements.

Mortgage Investors seeking credit loss protection

When MGIC issues a policy, it is fundamentally protecting mortgage investors from credit losses that occur if a borrower defaults. This is the core value proposition: MGIC provides the financial guarantee that covers unpaid loan principal and delinquent interest on insured loans. This protection is what allows the entire chain-from lender to investor-to function smoothly with lower capital requirements for risk retention.

The company actively manages this risk exposure through sophisticated reinsurance transactions. For example, they agreed to terms on a traditional excess of loss reinsurance transaction effective December 1, 2025, providing $250 million of reinsurance coverage on New Insurance Written (NIW) from 2021. They also agreed to a 40% quota share reinsurance transaction covering eligible NIW in 2027. This shows you how they segment their risk with third-party reinsurers.

Homebuyers with less than a 20% down payment (indirect customers)

These are the people who actually benefit from the product, even though they don't write a check directly to MGIC Investment Corporation for the insurance premium. MGIC's stated purpose is helping families achieve homeownership sooner by making affordable low-down-payment mortgages a reality. Without PMI, many borrowers would have to save for a much larger down payment, delaying their entry into the housing market.

The product makes the mortgage affordable for them by allowing the loan-to-value ratio to be higher than the standard 80%. This segment is the market driver for new insurance written.

Here's a quick look at the scale of the business as of late 2025, based on the latest reported figures:

Metric	Value (as of Q3 2025)	Unit
Total Primary Insurance In Force	$300.8 billion	Amount
Number of Mortgages Covered	1.1 million	Count
Q3 2025 Net Income	$191.1 million	Amount
Q3 2025 Adjusted Net Operating Income (Non-GAAP)	$190.8 million	Amount
Shares Repurchased (Through Oct 24, 2025)	2.4 million	Count
Capital Returned via Q3 Dividend	$0.15 per common share	Amount

The company's focus on financial strength is what underpins its value proposition to all these segments. For the third quarter of 2025, MGIC Investment Corporation reported an annualized return on equity (ROE) of 14.8%, which is a strong signal of efficient capital deployment to support these customer relationships.

MGIC Investment Corporation (MTG) - Canvas Business Model: Cost Structure

You're looking at the cost side of the MGIC Investment Corporation (MTG) engine, which is primarily driven by managing credit risk and the overhead of running a sophisticated financial operation. Honestly, for a mortgage insurer, the biggest variable cost is the risk you take on, which shows up as claims.

The primary variable cost, which is the Losses Incurred, net, for the third quarter of 2025 was reported at $10.9 million. This is the net cost after accounting for any recoveries or ceded losses for that period. You can see how this fluctuates compared to prior quarters in the table below, noting that Q2 2025 actually showed a net benefit from loss reserve development.

Next up are the fixed and semi-fixed costs of keeping the lights on. Operating Expenses for the third quarter of 2025 totaled $50 million. This covers everything from the personnel who underwrite policies and manage claims to the technology backbone supporting $300.8 billion of primary insurance in force as of September 30, 2025. To be fair, the company noted that through the first three quarters of 2025, operating expenses were down 8.5% compared to the same period last year, showing good cost control.

The cost structure is heavily influenced by risk transfer mechanisms. Reinsurance costs are the premiums paid to reinsurers to offload tail risk. While the exact premium ceded dollar amount for Q3 2025 isn't explicitly listed in the summary data, we see the strategic deployment of capital to manage this cost element through new agreements:

• Agreed to terms on a traditional excess of loss reinsurance transaction effective December 1, 2025, providing $250 million of reinsurance coverage on 2021 New Insurance Written (NIW).
• Agreed to terms on a 40% quota share reinsurance transaction covering eligible NIW in 2027.
• Amended the 2022 quota share reinsurance transaction, decreasing the cede rate from 30% to 28%, effective December 31, 2025.

Finally, the holding company incurs costs related to its own financing, specifically the Interest expense on holding company debt. While the precise Q3 2025 figure for the holding company debt interest is not in the immediate summary, the subsidiary MGIC reported an Interest expense of $8,899 thousand (or about $8.9 million) for the second quarter of 2025, which gives you a baseline for the debt servicing component of the overall cost structure.

Here's a quick look at the key cost components we have concrete figures for:

Cost Component	Period	Amount (in millions, unless noted)
Losses Incurred, net	Q3 2025	$10.9
Operating Expenses	Q3 2025	$50
Interest Expense (Subsidiary Level)	Q2 2025	$8.9 (or $8,899 thousand)
Reinsurance Coverage Secured (XOL)	Effective Dec 1, 2025	$250 million

The underwriting expense ratio for Q3 2025 was 21.1%, which is a good metric to watch as it shows how efficiently MGIC Investment Corporation is managing the non-claim related operational costs relative to its net premiums earned of $241.8 million that quarter.

MGIC Investment Corporation (MTG) - Canvas Business Model: Revenue Streams

You're looking at how MGIC Investment Corporation (MTG) brings in the money, which is pretty straightforward for a mortgage insurer. The core of the revenue comes from the premiums you collect on the insurance you have in force. Then, you have the income generated by managing that large pool of capital-the investment portfolio.

Here's a breakdown of the primary revenue components based on the latest figures from the third quarter of 2025:

• Net Premiums Earned from mortgage insurance policies: $241.8 million (Q3 2025).
• Net Investment Income from the investment portfolio: $62 million (Q3 2025).
• Fees for other mortgage credit risk management solutions.
• Investment portfolio book yield: 4% (Q3 2025).

The total revenue figure for Q3 2025 was reported at $304.5 million, which is the sum of the insurance-related revenue and investment income, plus any other smaller items. The insurance in force, which drives the premium revenue, stood at $300.8 billion as of September 30, 2025.

To give you a clearer picture of the yield dynamics impacting that investment income, here are the key metrics:

Metric	Value (Q3 2025)
Investment Portfolio Book Yield	4%
In Force Premium Yield	38.3 basis points
Net Premium Yield	32.3 basis points

The net premiums earned are directly tied to the in-force book, and you can see the yield on that book has remained relatively flat year-over-year, holding steady at 38.3 basis points for the quarter. The investment income, at $62 million, benefits from the 4% book yield, though reinvestment rates on new money are definitely higher than that yield, which is a positive sign for future investment income, even if the overall book yield is expected to stay flat for the near term.

MGIC Investment Corporation (MTG) also generates revenue through other means, though they are typically smaller components compared to the two main streams. These include:

• Fees derived from structuring and managing reinsurance transactions.
• Income from services related to mortgage credit risk management beyond standard primary insurance.

Honestly, the stability of the $241.8 million in net premiums earned is what anchors the whole revenue picture, supported by the steady flow from the investment portfolio.