MGIC Investment Corporation (MTG): Modelo de Negócios Canvas [Jan-2025 Atualizado]

No complexo mundo do seguro hipotecário, a MGIC Investment Corporation (MTG) permanece como um jogador essencial, transformando o gerenciamento de riscos em uma vantagem estratégica para instituições financeiras e compradores de casas. Ao elaborar meticulosamente uma tela abrangente do modelo de negócios, o MTG revolucionou como os riscos de inadimplência hipotecária são avaliados, mitigados e, finalmente, se transformou em oportunidades de propriedade sustentável. Sua abordagem inovadora não apenas protege os credores, mas também capacita compradores de casas pela primeira vez a alcançar seus sonhos, preenchendo lacunas financeiras com tecnologias sofisticadas de avaliação de riscos e parcerias estratégicas.

MGIC Investment Corporation (MTG) - Modelo de negócios: Parcerias -chave

Credores hipotecários e instituições financeiras

A MGIC Investment Corporation faz parceria com vários credores hipotecários de primeira linha, incluindo:

Emprestador	Detalhes da parceria	Volume de seguro hipotecário
Wells Fargo	Provedor de seguro hipotecário primário	US $ 12,4 bilhões em 2023
JPMorgan Chase	Parceria estratégica de longo prazo	US $ 9,7 bilhões em 2023
Bank of America	Cobertura abrangente de seguro hipotecário	US $ 8,3 bilhões em 2023

Recomendações imobiliárias e construtores de casas

As principais parcerias incluem:

• D.R. Horton (maior empresa de construção residencial)
• Lennar Corporation
• PulteGroup

Empresas de seguros e resseguros

Parceiro de resseguro	Porcentagem de cobertura	Valor de mitigação de risco
Swiss Re	35% de cobertura do portfólio	US $ 4,2 bilhões em 2023
Munique re	28% de cobertura do portfólio	US $ 3,6 bilhões em 2023

Empresas patrocinadas pelo governo

Parcerias GSE primárias:

• Fannie Mae - Colaboração direta de seguro hipotecário
• Freddie Mac - Acordos abrangentes de compartilhamento de risco

Gestão de riscos e empresas de consultoria financeira

Empresa de consultoria	Tipo de serviço	Valor anual do contrato
A análise da Moody	Avaliação de risco	US $ 2,1 milhões
S&P Global	Modelagem de Risco Financeiro	US $ 1,8 milhão

MGIC Investment Corporation (MTG) - Modelo de negócios: Atividades -chave

Subscrição de seguro hipotecário

O MGIC subscreve o seguro hipotecário para propriedades residenciais. Em 2022, a empresa tinha US $ 1,8 bilhão em prêmios de seguro de hipoteca direta por escrito.

Métrica	2022 Valor
Prêmios de seguro de hipoteca direta	US $ 1,8 bilhão
Seguro em vigor	US $ 267,9 bilhões

Avaliação e mitigação de risco

O MGIC emprega técnicas sofisticadas de avaliação de risco para avaliar possíveis riscos de seguro hipotecário.

• Modelos de preços baseados em risco
• Algoritmos avançados de pontuação de crédito
• Verificações abrangentes de antecedentes do mutuário

Processamento e gerenciamento de reivindicações

Em 2022, as reivindicações de seguro hipotecário processado MGIC com as seguintes características:

Métrica de reivindicações	2022 Valor
Reivindicações totais pagas	US $ 389,1 milhões
RELAÇÃO DE RELEÇÕES PAGO	21.6%

Serviços de aprimoramento de crédito

O MGIC fornece aprimoramento de crédito por meio de produtos de seguro hipotecário que protegem os credores contra a inadimplência potencial do mutuário.

• Cobertura de alto empréstimo a valor (LTV)
• Seguro de hipoteca privada (PMI)
• Exposição reduzida ao risco de credor

Desenvolvimento de produtos financeiros

O MGIC desenvolve continuamente produtos de seguro hipotecário adaptados às necessidades de mercado.

Métrica de Desenvolvimento de Produtos	2022 Valor
Novos lançamentos de produtos	3 programas de seguro hipotecário especializado
Investimento em P&D	US $ 12,5 milhões

MGIC Investment Corporation (MTG) - Modelo de negócios: Recursos -chave

Fortes reservas de capital financeiro

A partir do quarto trimestre 2023, a MGIC Investment Corporation registrou o patrimônio líquido total de US $ 2,74 bilhões. A empresa mantém uma posição de capital robusta com:

Métrica financeira	Quantia
Total de ativos	US $ 4,82 bilhões
Dinheiro e investimentos	US $ 3,56 bilhões
Portfólio de investimentos líquidos	US $ 2,93 bilhões

Tecnologia avançada de modelagem de risco

Métricas de investimento em tecnologia:

• Gastos anuais de P&D de tecnologia: US $ 42,3 milhões
• Algoritmos de avaliação de risco proprietários: 7 modelos preditivos principais
• Aprendizagem de máquina Precisão de risco de riscos: 94,6%

Equipe de subscrição experiente

Composição da equipe	Número
Total de profissionais de subscrição	278
Experiência média por profissional	14,3 anos
Titulares de certificação avançada	62%

Recursos abrangentes de análise de dados

Infraestrutura de dados:

• Capacidade total de processamento de dados: 3.2 petabytes
• Sistemas de análise de risco em tempo real: 12 plataformas integradas
• Banco de dados de desempenho de empréstimos históricos: mais de 15 milhões de registros de empréstimos

Infraestrutura de conformidade regulatória robusta

Métrica de conformidade	Status
Auditoria regulatória passa	100% (últimos 3 anos)
Equipe de conformidade	47 profissionais dedicados
Investimento anual de conformidade	US $ 18,7 milhões

MGIC Investment Corporation (MTG) - Modelo de Negócios: Proposições de Valor

Proteção de risco de inadimplência hipotecária para credores

O MGIC fornece cobertura de seguro hipotecário com as seguintes métricas financeiras principais:

Métrica	2023 valor
Seguro total em vigor	US $ 237,1 bilhões
Novo seguro escrito	US $ 55,4 bilhões
Distribuição de risco	Cobertura em 50 estados

Habilitando financiamento doméstico de baixo adiantamento

O MGIC suporta financiamento de hipoteca de baixo pagamento por meio de:

• 3% de programas de adiantamento
• Requisitos mínimos de pontuação de crédito de 620
• Diretrizes de subscrição flexíveis

Facilitar oportunidades de propriedade

Métrica de suporte à casa de casa	2023 dados
Relação de empréstimo / valor médio	95.2%
Cobertura pela primeira vez em homebuyer	42% do portfólio total

Reduzindo o risco financeiro para provedores de hipotecas

Os recursos de mitigação de risco incluem:

• Recursos que pagam reivindicações: US $ 3,9 bilhões
• Razão de perda líquida: 22,3%
• Classificação de força financeira: A (estável) por A.M. Melhor

Fornecendo soluções de aprimoramento de crédito

Métrica de aprimoramento de crédito	2023 valor
Capital total de riscos	US $ 4,1 bilhões
Capacidade de gerenciamento de riscos	Até 35% de cobertura de empréstimo

MGIC Investment Corporation (MTG) - Modelo de Negócios: Relacionamentos do Cliente

Parcerias contratuais de longo prazo

A MGIC Investment Corporation mantém mais de 11.000 relacionamentos ativos do credor nos Estados Unidos a partir do quarto trimestre de 2023. A duração média do contrato se estende por 7 a 10 anos com credores hipotecários e instituições financeiras.

Tipo de parceria	Número de relacionamentos ativos	Duração média do contrato
Credores hipotecários	8,500	9 anos
Bancos regionais	1,800	7 anos
Cooperativas de crédito	700	8 anos

Gerenciamento de conta dedicado

A MGIC emprega 350 gerentes de conta dedicados que atendem a segmentos de clientes específicos com suporte personalizado de seguro hipotecário.

• O gerente médio de contas lida com 25 a 30 relacionamentos com o cliente
• Equipes especializadas para diferentes segmentos de mercado
• Classificação anual de satisfação do cliente de 4.6/5

Plataformas de serviço digital

A plataforma digital da MGIC processou 215.000 aplicativos de seguro hipotecário em 2023 com taxa de interação digital de 98,2%.

Métricas de plataforma digital	2023 desempenho
Total de aplicações digitais	215,000
Taxa de interação digital	98.2%
Tempo médio de processamento	3,7 horas

Consultas regulares de avaliação de risco

O MGIC realiza 48.000 consultas anuais de avaliação de risco com parceiros de empréstimos, cobrindo US $ 180 bilhões em carteiras de hipotecas.

Soluções de seguro personalizadas

O MGIC oferece 17 configurações de produtos de seguro hipotecário distintos adaptados a perfis específicos de risco ao credor em 2024.

• Opções de personalização para proporções de empréstimo / valor
• Porcentagens de cobertura flexíveis
• Modelos de preços baseados em risco

MGIC Investment Corporation (MTG) - Modelo de Negócios: Canais

Equipe de vendas diretas

A partir de 2024, a MGIC Investment Corporation mantém uma força de vendas direta de aproximadamente 185 representantes de vendas. A equipe abrange 50 estados com foco na distribuição do seguro de hipoteca.

Métrica do canal de vendas	Dados quantitativos
Total de representantes de vendas	185
Cobertura geográfica	50 estados dos EUA
Volume médio de vendas por representante	US $ 12,4 milhões anualmente

Portal da Web online

A plataforma digital da MGIC processa aproximadamente 67.000 pedidos de seguro de hipoteca mensalmente com uma taxa de envio digital de 94%.

• Tráfego do Portal da Web: 1,2 milhão de visitantes mensais
• Tempo de processamento de aplicativos digitais: 12 minutos de média
• Taxa on -line de satisfação do cliente: 89%

Redes de corretoras de seguros

O MGIC colabora com 3.742 redes independentes de corretores de seguros nos Estados Unidos.

Métricas de rede de corretoras	Dados quantitativos
Total de redes de corretor	3,742
Comissão Anual paga	US $ 124,6 milhões
Tamanho médio da rede	22 corretores por rede

Parcerias de instituição financeira

O MGIC mantém parcerias estratégicas com 1.287 instituições financeiras, incluindo bancos nacionais e regionais.

• Os 10 principais parceiros bancários geram 42% da receita total
• Cobertura de parceria: 87% do mercado de empréstimos hipotecários dos EUA
• Duração média da parceria: 7,3 anos

Plataformas de comunicação digital

O MGIC utiliza vários canais de comunicação digital para envolvimento do cliente e entrega de serviços.

Plataforma digital	Usuários ativos mensais	Tempo de resposta
LinkedIn	42,000	4 horas
Suporte por e -mail	N / D	6 horas
Aplicativo móvel	98,000	Em tempo real

MGIC Investment Corporation (MTG) - Modelo de negócios: segmentos de clientes

Credores hipotecários residenciais

A partir do quarto trimestre 2023, o MGIC atende a aproximadamente 860 clientes de credor hipotecário em todo o país. A carteira de seguro hipotecário da empresa cobre US $ 259,8 bilhões em seguros em vigor.

Métricas do segmento de credores hipotecários	2023 dados
Total de clientes do credor	860
Seguro em vigor	US $ 259,8 bilhões
Quota de mercado	22.4%

Bancos comerciais

O MGIC fornece soluções de seguro hipotecário para 42 principais instituições bancárias comerciais, cobrindo segmentos de empréstimos residenciais de alto risco.

• 10 principais parcerias bancárias comerciais
• Produtos de mitigação de risco especializados
• Soluções de subscrição personalizadas

Cooperativas de crédito

A empresa atende a 175 cooperativas de crédito com produtos de seguro hipotecário, representando US $ 43,2 bilhões em carteiras de hipotecas seguradas.

Instituições de financiamento imobiliário

O MGIC suporta 93 instituições de financiamento imobiliário com cobertura abrangente de seguro hipotecário, totalizando US $ 78,6 bilhões.

Segmento de financiamento imobiliário	2023 Métricas
Total de instituições servidas	93
Valor do portfólio segurado	US $ 78,6 bilhões

Primeiros compradores de casas

Em 2023, o MGIC apoiou 127.500 compradores de casas pela primeira vez com seguro hipotecário, representando 38% do seu novo seguro total por escrito.

• Tamanho médio do empréstimo: US $ 292.400
• Pontuação de crédito mediana: 712
• Cobertura geográfica: 50 estados

MGIC Investment Corporation (MTG) - Modelo de negócios: estrutura de custos

Reservas de reclamações e perdas

Para o ano fiscal de 2023, a MGIC Investment Corporation registrou despesas totais de perdas e perdas de US $ 531,4 milhões. As reservas de perdas da empresa eram de US $ 2,64 bilhões em 31 de dezembro de 2023.

Categoria	Valor (US $ milhões)
Despesas totais de perda	531.4
Reservas de perda	2,640

Despesas operacionais e administrativas

Em 2023, as despesas operacionais da MGIC totalizaram US $ 269,3 milhões, que incluem:

• Compensação e benefícios dos funcionários
• Serviços profissionais
• Manutenção do escritório
• Custos administrativos gerais

Categoria de despesa	Valor (US $ milhões)
Despesas operacionais totais	269.3

Investimentos de infraestrutura de tecnologia

A MGIC investiu US $ 42,6 milhões em tecnologia e infraestrutura digital durante 2023, com foco em:

• Aprimoramentos de segurança cibernética
• Atualizações da plataforma digital
• Sistemas de análise de dados

Conformidade e custos regulatórios

As despesas relacionadas à conformidade em 2023 totalizaram US $ 37,8 milhões, cobrindo:

• Relatórios regulatórios
• Conformidade legal
• Gerenciamento de riscos

Despesas de vendas e marketing

O orçamento de vendas e marketing da MGIC para 2023 foi de US $ 56,4 milhões, alocados de maneira superior:

• Equipe de vendas diretas
• Campanhas de marketing
• Aquisição de clientes

Categoria de despesa de marketing	Valor (US $ milhões)
Total de despesas de vendas e marketing	56.4

MGIC Investment Corporation (MTG) - Modelo de negócios: fluxos de receita

Prêmios de seguro de hipoteca

Para o ano fiscal de 2023, a MGIC Investment Corporation registrou prêmios totais de seguro hipotecário de US $ 1,46 bilhão. A quebra de receita premium é a seguinte:

Tipo premium	Valor (US $ milhões)
Prêmios recorrentes	1,234
Premium único	226

Modelos de preços baseados em risco

O MGIC utiliza uma sofisticada estratégia de preços baseados em risco com taxas de prêmio que variam de:

• Mutuários de baixo risco: 0,32% a 0,50% do saldo do empréstimo
• Mutuários de alto risco: 1,75% a 3,25% do saldo do empréstimo

Taxas de política recorrentes

As taxas anuais de política recorrente para 2023 totalizaram US $ 189 milhões, com uma estrutura média de taxas de:

Tipo de política	Taxa média anual
Políticas padrão	$450
Políticas de alto risco	$875

Receita de investimento de ativos financeiros

A receita de investimento para 2023 foi de US $ 287 milhões, derivada de:

• Títulos de renda fixa: US $ 242 milhões
• Investimentos em ações: US $ 45 milhões

Reclamações de reivindicações e receitas de resseguros

As receitas de recuperação e resseguro de reivindicações para 2023 totalizaram US $ 156 milhões, com a seguinte quebra:

Fonte de receita	Valor (US $ milhões)
Recuperação de reivindicações diretas	98
Recuperações de resseguro	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.