MGIC INVESTMENT CORP

For the period ended Dec 31, 2024. Filed Feb 26, 2025.

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A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.

FY2024 · Filed Feb 26, 2025

MTG$28.60-2.6%Stored close · as of Nov 6, 2026

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Contents

Financial Statements and Supplementary Data

The following consolidated financial statements are filed pursuant to this Item 8:

Index to consolidated financial statements
	Page No.
Consolidated balance sheets at December 31, 2024 and 2023	83
Consolidated statements of operations for each of the three years in the period ended December 31, 2024	84
Consolidated statements of comprehensive income for each of the three years in the period ended December 31, 2024	85
Consolidated statements of shareholders' equity for each of the three years in the period ended December 31, 2024	86
Consolidated statements of cash flows for each of the three years in the period ended December 31, 2024	87
Notes to consolidated financial statements	88
Note 1. Nature of Business	88
Note 2. Basis of Presentation	88
Note 3. Significant Accounting Policies	89
Note 4. Earnings Per Share	94
Note 5. Investments	95
Note 6. Fair Value Measurements	99
Note 7. Debt	102
Note 8. Loss Reserves	103
Note 9. Reinsurance	105
Note 10. Other Comprehensive (Loss) Income	110
Note 11. Benefit Plans	111
Note 12. Income Taxes	116
Note 13. Shareholders' Equity	117
Note 14. Statutory Information	117
Note 15. Share-based Compensation	119
Note 16. Leases	120
Note 17. Litigation and Contingencies	120
Note 18. Segment Reporting	120
Report of Independent Registered Public Accounting Firm (Auditor Firm ID: 238)	121

MGIC INVESTMENT CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
	December 31,
(In thousands)	Note	2024	2023
Assets
Investment portfolio: · 5 / 6
Fixed income, available-for-sale, at fair value (amortized cost 2024 - $5,838,145; 2023 - $5,939,483)		$5,511,564	$5,601,540
Short-term, fixed income, available-for-sale, at fair value (amortized cost 2024 - $339,978; 2023 - $121,539)		340,125	121,573
Equity securities, at fair value (cost, 2024 - $16,146; 2023 - $16,025)		14,762	14,771
Other invested assets, at cost		1,109	850
Total investment portfolio		5,867,560	5,738,734
Cash and cash equivalents		229,485	363,666
Restricted cash and cash equivalents		5,142	6,978
Accrued investment income		61,064	58,774
Reinsurance recoverable on loss reserves	9	47,281	33,302
Reinsurance recoverable on paid losses	9	4,197	9,896
Premiums receivable		57,536	58,499
Home office and equipment, net		35,679	38,755
Deferred insurance policy acquisition costs		11,694	14,591
Deferred income taxes, net	12	69,875	79,782
Other assets		157,722	135,403
Total assets		$6,547,235	$6,538,380
Liabilities and shareholders' equity
Liabilities:
Loss reserves	8	$462,662	$505,379
Unearned premiums		120,360	157,779
Senior notes	7	644,667	643,196
Other liabilities		147,171	160,009
Total liabilities		1,374,860	1,466,363
Contingencies	17
Shareholders' equity:	13
Common stock ($1.00 par value, shares authorized 1,000,000; shares issued 2024 - 248,449; 2023 - 371,353; shares outstanding 2024 - 248,449; 2023 - 272,494)		248,449	371,353
Paid-in capital		1,808,236	1,808,113
Treasury stock at cost (shares 2024 - 0; 2023 - 98,859)	13	—	(1,384,293)
Accumulated other comprehensive income (loss), net of tax	10	(288,162)	(316,281)
Retained earnings		3,403,852	4,593,125
Total shareholders' equity		5,172,375	5,072,017
Total liabilities and shareholders' equity		$6,547,235	$6,538,380

MGIC INVESTMENT CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
	Years Ended December 31,
(In thousands, except per share data)	Note	2024	2023	2022
Revenues:
Premiums written:
Direct		$1,100,918	$1,105,027	$1,108,570
Assumed		14,366	12,835	8,535
Ceded	9	(181,896)	(202,821)	(156,373)
Net premiums written		933,388	915,041	960,732
Decrease (increase) in unearned premiums		37,419	37,510	46,401
Net premiums earned	9	970,807	952,551	1,007,133
Investment income, net of expenses	5	244,640	214,740	167,476
Net gains (losses) on investments and other financial instruments	5	(9,846)	(14,141)	(7,463)
Other revenue		2,130	1,952	5,639
Total revenues		1,207,731	1,155,102	1,172,785
Losses and expenses:
Losses incurred, net	8 / 9	(14,861)	(20,856)	(254,565)
Amortization of deferred insurance policy acquisition costs		8,957	10,820	12,366
Other underwriting and operating expenses, net	18	209,324	226,004	236,697
Loss on debt extinguishment	7	—	—	40,199
Interest expense	7	35,602	36,905	48,054
Total losses and expenses		239,022	252,873	82,751
Income before tax		968,709	902,229	1,090,034
Provision for income taxes	12	205,715	189,280	224,685
Net income		$762,994	$712,949	$865,349
Earnings per share:	4
Basic		$2.92	$2.51	$2.83
Diluted		$2.89	$2.49	$2.79
Weighted average common shares outstanding - basic	4	261,684	283,605	305,847
Weighted average common shares outstanding - diluted	4	263,995	287,155	311,229

MGIC INVESTMENT CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
	Years Ended December 31,
(In thousands)	Note	2024	2023	2022
Net income		$762,994	$712,949	$865,349
Other comprehensive income (loss), net of tax:	10
Change in unrealized investment gains and losses	5	9,070	141,548	(558,534)
Benefit plans adjustment	11	19,049	23,682	(42,674)
Other comprehensive income (loss), net of tax		28,119	165,230	(601,208)
Comprehensive income		$791,113	$878,179	$264,141

MGIC INVESTMENT CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
	Years Ended December 31,
(In thousands)	Note	2024	2023	2022
Common stock
Balance, beginning of year		$371,353	$371,353	$371,353
Retirement of treasury stock	13	(119,053)	—	—
Purchases of common stock	13	(3,851)	—	—
Balance, end of year		248,449	371,353	371,353
Paid-in capital
Balance, beginning of year		1,808,113	1,798,842	1,794,906
Conversion of 9% Debentures, net of tax	7	—	(5,315)	—
Reissuance of treasury stock, net under share-based compensation plans		(31,201)	(17,021)	(20,835)
Equity compensation		31,324	31,607	24,771
Balance, end of year		1,808,236	1,808,113	1,798,842
Treasury stock
Balance, beginning of year		(1,384,293)	(1,050,238)	(675,265)
Purchases of common stock	13	(475,107)	(343,819)	(385,714)
Reissuance of treasury stock, net under share-based compensation plans		12,135	9,764	10,741
Retirement of treasury stock	13	1,847,265	—	—
Balance, end of year		—	(1,384,293)	(1,050,238)
Accumulated other comprehensive income (loss)
Balance, beginning of year		(316,281)	(481,511)	119,697
Other comprehensive income (loss)	10	28,119	165,230	(601,208)
Balance, end of year		(288,162)	(316,281)	(481,511)
Retained earnings
Balance, beginning of year		4,593,125	4,004,294	3,250,691
Retirement of treasury stock	13	(1,728,212)	—	—
Purchases of common stock	13	(93,013)	—	—
Net income		762,994	712,949	865,349
Cash dividends	13	(131,042)	(124,118)	(111,746)
Balance, end of year		3,403,852	4,593,125	4,004,294
Total shareholders' equity		$5,172,375	$5,072,017	$4,642,740

MGIC INVESTMENT CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
	Years Ended December 31,
(In thousands) · 2024 · 2023 · 2022
Cash flows from operating activities:
Net income	$762,994	$712,949		$865,349
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and other amortization	18,436	35,230		54,252
Deferred tax expense (benefit)	2,432	1,065		(4,367)
Equity compensation	31,324	31,607		24,771
Loss on debt extinguishment	—	—		40,199
Net (gains) losses on investments and other financial instruments	9,846	14,141		7,463
Change in certain assets and liabilities:
Accrued investment income	(2,290)	(3,596)		(3,276)
Reinsurance recoverable on loss reserves	(13,979)	(5,062)		38,665
Reinsurance recoverable on paid losses	5,699	8,185		18,194
Premiums receivable	963	(499)		(1,460)
Deferred insurance policy acquisition costs	2,897	4,471		2,609
Loss reserves	(42,717)	(52,609)		(325,534)
Unearned premiums	(37,419)	(37,510)		(46,401)
Return premium accrual	(8,600)	(4,400)		(11,800)
Current income taxes	16,274	(4,143)		(8,549)
Other, net	(20,828)	13,133	(1)	(103)	(1)
Net cash provided by operating activities	725,032	712,962		650,012
Cash flows from investing activities:
Purchases of investments	(1,555,624)	(1,469,540)		(674,406)
Proceeds from sales of investments	45,087	376,598		399,661
Proceeds from maturity of fixed income securities	1,369,706	913,415		688,484
Proceeds from sale of property and equipment	—	2,336		—
Additions to property and equipment	(1,174)	(1,999)		(3,254)
Net cash (used in) provided by investing activities	(142,005)	(179,190)		410,485
Cash flows from financing activities:
Conversion / purchase of convertible junior subordinated debentures	—	(28,637)		(89,118)
Redemption of 5.75% senior notes	—	—		(242,296)
Repayment of FHLB advance	—	—		(155,000)
Cash portion of loss on debt extinguishment	—	—		(39,514)
Repurchase of common stock	(569,478)	(337,182)		(385,573)
Dividends paid	(130,500)	(122,965)		(110,947)
Payment of withholding taxes related to share-based compensation net share settlement	(19,066)	(7,257)		(10,094)
Net cash used in financing activities	(719,044)	(496,041)		(1,032,542)
Net (decrease) increase in cash and cash equivalents and restricted cash and cash equivalents	(136,017)	37,731		27,955
Cash and cash equivalents and restricted cash and cash equivalents at beginning of year	370,644	332,913		304,958
Cash and cash equivalents and restricted cash and cash equivalents at end of year	$234,627	$370,644		$332,913

(1) Certain reclassifications have been made to conform to current year presentation

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