MGIC INVESTMENT CORP

Previous wording

The following is management’s discussion and analysis of the financial condition and results of operations of MGIC Investment Corporation for the first quarter of 2025. As used below, “we” and “our” refer to MGIC Investment Corporation’s consolidated operations. This form 10-Q should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2024. See the“Glossary of terms and acronyms” for definitions and descriptions of terms used throughout this MD&A. Our revenues and losses could be affected by the Risk Factors referred to under “Forward Looking Statements and Risk Factors” below, and they are an integral part of the MD&A.

Current wording

The following is management’s discussion and analysis of the financial condition and results of operations of MGIC Investment Corporation for the second quarter of 2025. As used below, “we” and “our” refer to MGIC Investment Corporation’s consolidated operations. This form 10-Q should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2024. See the“Glossary of terms and acronyms” for definitions and descriptions of terms used throughout this MD&A. Our revenues and losses could be affected by the Risk Factors referred to under “Forward Looking Statements and Risk Factors” below, and they are an integral part of the MD&A.

Previous wording

Adjusted net operating income for the first quarter 2025 was $185.2 million (Q1 2024: $178.4 million) and adjusted net operating income per diluted share was $0.75 (Q1 2024: $0.65). The increase in adjusted net operating income primarily reflects an increase in net income. The increase in adjusted net operating income per diluted share primarily reflects an increase in adjusted net operating income and a decrease in the number of diluted weighted shares outstanding.

Current wording

Adjusted net operating income for the second quarter 2025 was $194.0 million (Q2 2024: $204.9 million) and adjusted net operating income per diluted share was $0.82 (Q2 2024: $0.77). The decrease in adjusted net operating income primarily reflects a decrease in net income. The increase in adjusted net operating income per diluted share primarily reflects a decrease in the number of diluted weighted shares outstanding partially offset by a decrease in adjusted net operating income.

Previous wording

Losses incurred, net for the first quarter of 2025 were $9.6 million, compared with $4.6 million for the same period last year. While new delinquency notices added approximately $59.5 million for the three months ended March 31, 2025, our re-estimation of loss reserves on previously received delinquency notices resulted in favorable development of approximately $49.9 million. For the three months ended March 31, 2024, new delinquency notices added approximately $53.4 million, offset by our re-estimation of loss reserves on previously received delinquency notices resulting in favorable development of approximately $48.9 million. The favorable development for both periods primarily resulted from a decrease in the expected claim rate on previously received delinquencies. Home price appreciation experienced in recent years has allowed some borrowers to cure their delinquencies through the sale of their property.

Current wording

Losses incurred, net for the second quarter of 2025 were $(2.8) million, compared with $(18.3) million for the same period last year. While new delinquency notices added approximately $51.6 million to our loss reserves for the three months ended June 30, 2025, our re-estimation of loss reserves on previously received delinquency notices resulted in favorable development of approximately $54.4 million. For the three months ended June 30, 2024, new delinquency notices added approximately $49.1 million to our loss reserves, offset by our re-estimation of loss reserves on previously received delinquency notices resulting in favorable development of approximately $67.4 million. The favorable development for both periods primarily resulted from a decrease in the expected claim rate on previously received delinquencies. Home price appreciation experienced in recent years has allowed some borrowers to cure their delinquencies through the sale of their property.

Previous wording

We recorded first quarter 2025 net income of $185.5 million, or $0.75 per diluted share. Net income increased by $11.4 million from net income of $174.1 million, or $0.64 per diluted share, in the prior year. The increase is primarily due to the change in net gains and losses on investments and other financial instruments in addition to a decrease in other underwriting and operating expenses net, in the three months ended March 31, 2025 compared to the same period in the prior year. This was partially offset by an increase in losses incurred, net and an increase in provision for income taxes. Diluted income per share increased primarily due to an increase in net income and a decrease in the number of diluted weighted shares outstanding.

Current wording

We recorded net income of $377.9 million, or $1.56 per diluted share. Net income decreased by $0.4 million from net income of $378.3 million, or $1.40 per diluted share in the prior year. The decrease is primarily due to an increase in losses incurred, net. This was partially offset by a decrease in other underwriting and operating expenses, net as well as the change in net gains and losses on investments and other financial instruments. Diluted income per share increased primarily due to a decrease in the number of diluted weighted shares outstanding partially offset by a decrease in net income.

Previous wording

Losses incurred, net for the first quarter of 2025 were $9.6 million, an increase of $5.0 million compared to the first quarter of 2024 losses incurred, net of $4.6 million. While new delinquency notices added approximately $59.5 million for the three months ended March 31, 2025, our re-estimation of loss reserves on previously received delinquency notices resulted in favorable development of approximately $49.9 million. For three months ended March 31, 2024, new delinquency notices added approximately $53.4 million, offset by our re-estimation of loss reserves on previously received delinquency notices resulting in favorable development of approximately $48.9 million. The favorable development for both periods primarily resulted from a decrease in the expected claim rate on previously received delinquencies. Home price appreciation experienced in recent years has allowed some borrowers to cure their delinquencies through the sale of their property.

Current wording

Losses incurred, net for the six months ended June 30, 2025 were $6.8 million, compared with $(13.7) million for the same period last year. While new delinquency notices added approximately $111.1 million to our loss reserves for the six months ended June 30, 2025, our re-estimation of loss reserves on previously received delinquency notices resulted in favorable development of approximately $104.3 million. For the six months ended June 30, 2024, new delinquency notices added approximately $102.6 million to our loss reserves, offset by our re-estimation of loss reserves on previously received delinquency notices resulting in favorable development of approximately $116.3 million. The favorable development for both periods primarily resulted from a decrease in the expected claim rate on previously received delinquencies. Home price appreciation experienced in recent years has allowed some borrowers to cure their delinquencies through the sale of their property.

Previous wording

Net gains (losses) on investments and other financial instruments were $0.7 million, compared with $(8.5) million for the same period last year. Changes in the recognition of net realized investment gains (losses) are primarily driven by the timing of individual securities sales and such timing is influenced by such factors as market opportunities, our tax and capital profile, and overall market cycles. See Note 7 -“Investments,” to our consolidated financial statements for additional discussion of net gains (losses) on investments and other financial instruments.

Current wording

Net gains (losses) on investments and other financial instruments were $(0.7) million, compared with $(8.8) million for the same period last year. Changes in the recognition of net realized investment gains (losses) are primarily driven by the timing of individual securities sales and such timing is influenced by such factors as market opportunities, our tax and capital profile, and overall market cycles. See Note 7 - “Investments,” to our consolidated financial statements for additional discussion of net gains (losses) on investments and other financial instruments.

Previous wording

Underwriting and other expenses, net were $51.4 million in the first quarter of 2025 as compared to $59.0 million for the same period last year. The decrease in underwriting and other expenses, net was primarily due to a decrease in employee costs. See Note 15 -“Segment Reporting,” to our consolidated financial statements for additional discussion of significant segment expenses.

Current wording

Underwriting and other expenses, net in the six months ended June 30, 2025 were $101.8 million, compared with $111.7 million for the same period last year. The decrease in underwriting and other expenses, net was primarily due to a decrease in employee costs. See Note 15 - “Segment Reporting,” to our consolidated financial statements for additional discussion of significant segment expenses.

Previous wording

The ability of MGIC to pay dividends is restricted by insurance regulation. Amounts in excess of prescribed limits are deemed “extraordinary” and may not be paid if disapproved by the OCI. A dividend is extraordinary when the proposed dividend amount, plus dividends paid in the twelve months preceding the dividend payment date exceed the ordinary dividend level. In 2025, MGIC can pay $97 million of ordinary dividends without OCI approval, before taking into consideration dividends paid in the preceding twelve months. In the three months ended March 31, 2025, and 2024, we did not make dividend payments to the holding company. Future dividend payments from MGIC to the holding company will continue to be determined in consultation with the board and after considering any updated estimates about our business, subject to regulatory approval. In April 2025, MGIC paid a $400 million dividend to our holding company.

Current wording

The ability of MGIC to pay dividends is restricted by insurance regulation. Amounts in excess of prescribed limits are deemed “extraordinary” and may not be paid if disapproved by the OCI. A dividend is extraordinary when the proposed dividend amount, plus dividends paid in the twelve months preceding the dividend payment date exceed the ordinary dividend level. In 2025, MGIC can pay $97 million of ordinary dividends without OCI approval, before taking into consideration dividends paid in the preceding twelve months. In the six months ended June 30, 2025, and 2024, we made dividend payments to the holding company of $400 million and $350 million respectively. Future dividend payments from MGIC to the holding company will continue to be determined in consultation with the board and after considering any updated estimates about our business, subject to regulatory approval.

Previous wording

Repurchases may be made from time to time on the open market (including through 10b5-1 plans) or through privately negotiated transactions. In the three months ended March 31, 2025, and for the full year of 2024, we repurchased 9.2 million and 25.3 million shares of common stock, for $224.3 million and $566.6 million, respectively. As of March 31, 2025, we had $232.9 million of remaining authorization to repurchase our common stock through December 31, 2026 under a $750 million share repurchase program approved by our Board of Directors in April 2024. As of March 31, 2025, we had approximately 240.2 million shares of common stock outstanding.

Current wording

Repurchases may be made from time to time on the open market (including through 10b5-1 plans) or through privately negotiated transactions. In the six months ended June 30, 2025, and for the full year of 2024, we repurchased 16.4 million and 25.3 million shares of common stock, for $405.0 million and $566.6 million, respectively. As of June 30, 2025, we had remaining authorization of $802.2 million under our existing share repurchase programs through December 31, 2027. As of June 30, 2025, we had approximately 233 million shares of common stock outstanding.

Previous wording

In the first quarter of 2025, we paid quarterly cash dividends of $0.13 per share which totaled $32.5 million. On April 24, 2025, the Board of Directors declared a quarterly cash dividend to the holders of the company’s common stock of $0.13 per share to shareholders of record on May 8, 2025.

Current wording

In the first and second quarters of 2025, we paid quarterly cash dividends of $0.13 per share which totaled $63.7 million. On July 24, 2025, the Board of Directors declared a quarterly cash dividend to the holders of the company’s common stock of $0.15 per share to shareholders of record on August 7, 2025.

Previous wording

The financial requirements of the PMIERs require a mortgage insurer’s "Available Assets" (generally only the most liquid assets of an insurer) to equal or exceed its "Minimum Required Assets" (which are generally based on an insurer's book of risk in force and calculated from tables of factors with several risk dimensions, reduced for credit given for risk ceded under reinsurance agreements and subject to a floor amount). Based on our application of the PMIERs as of March 31, 2025, MGIC’s Available Assets totaled $5.9 billion, or $2.6 billion in excess of its Minimum Required Assets. In August 2024, the GSEs issued updates to the calculation of Available Assets. The updates will be implemented through a 24-month phased-in approach, with a fully effective date of September 30, 2026. If these changes were effective as of March 31, 2025, without a graduated implementation period, MGIC's Available Assets of $5.9 billion would decrease by approximately 1% or $50 million, and MGIC's PMIERs excess would be $2.5 billion.

Current wording

The financial requirements of the PMIERs require a mortgage insurer’s "Available Assets" (generally only the most liquid assets of an insurer) to equal or exceed its "Minimum Required Assets" (which are generally based on an insurer's book of risk in force and calculated from tables of factors with several risk dimensions, reduced for credit given for risk ceded under reinsurance agreements and subject to a floor amount). Based on our application of the PMIERs as of June 30, 2025, MGIC’s Available Assets totaled $5.7 billion, or $2.4 billion in excess of its Minimum Required Assets. In August 2024, the GSEs issued updates to the calculation of Available Assets. The updates will be implemented through a 24-month phased-in approach, with a fully effective date of September 30, 2026. If these changes were effective as of June 30, 2025, without a graduated implementation period, MGIC's Available Assets of $5.7 billion would decrease by approximately 1% or $60 million, and MGIC's PMIERs excess would be $2.3 billion.

Previous wording

At March 31, 2025, MGIC’s risk-to-capital ratio was 9.8 to 1, below the maximum allowed by the jurisdictions with State Capital Requirements, and its policyholder position was $3.8 billion above the required MPP of $2.2 billion. The calculation of our risk-to-capital ratio and MPP reflect full credit for the risk ceded under our reinsurance transactions. It is possible that under the revised State Capital Requirements discussed below, MGIC will not be allowed full credit for the risk ceded under such transactions. If MGIC is not allowed an agreed level of credit under either the State Capital Requirements or the PMIERs, MGIC may terminate the reinsurance transactions, without penalty.

Current wording

At June 30, 2025, MGIC’s risk-to-capital ratio was 10.0 to 1, below the maximum allowed by the jurisdictions with State Capital Requirements, and its policyholder position was $3.6 billion above the required MPP of $2.2 billion. The calculation of our risk-to-capital ratio and MPP reflect full credit for the risk ceded under our reinsurance transactions. It is possible that under the revised State Capital Requirements discussed below, MGIC will not be allowed full credit for the risk ceded under such transactions. If MGIC is not allowed an agreed level of credit under either the State Capital Requirements or the PMIERs, MGIC may terminate the reinsurance transactions, without penalty.

Previous wording

•NIW, which increases IIF. Many factors affect NIW, including the volume of low down payment home mortgage originations and competition to provide credit enhancement on those mortgages from the FHA, the VA, and other mortgage insurers. Other alternatives to mortgage insurance also impact NIW, including GSE programs that may reduce or eliminate the demand for mortgage insurance. NIW does not include loans previously insured by us that are modified, such as loans modified under HARP.

Current wording

•NIW, which increases IIF. Many factors affect NIW, including the volume of low down payment home mortgage originations and competition to provide credit enhancement on those mortgages from the FHA, the VA, and other mortgage insurers. Other alternatives to mortgage insurance also impact NIW, including GSE programs that may reduce or eliminate the demand for mortgage insurance. NIW does not include loans previously insured by us that are modified.

Previous wording

NIW for the first quarter of 2025 was $10.2 billion (Q1 2024: $9.1 billion). The increase reflects a higher expected market position in the current year compared with the same period in the prior year. For the full year, we expect our 2025 NIW to be higher than 2024.

Current wording

NIW for the second quarter of 2025 was $16.4 billion (Q2 2024: $13.5 billion) and $26.6 billion for the six months ended June 30, 2025 (YTD June 30, 2024: $22.6 billion).The increase reflects a higher expected market position in the current year compared with the same period in the prior year. For the full year, we expect our 2025 NIW to be higher than 2024.

Previous wording

The following tables present characteristics of our primary NIW for the three months ended March 31, 2025 and 2024.

Current wording

The following tables present characteristics of our primary NIW for the three and six months ended June 30, 2025 and 2024.

Previous wording

We consider a variety of loan characteristics when assessing the risk of a loan. The following table provides information about loans with one or more of the following characteristics associated with our NIW: LTV ratios greater than 95%, mortgages with borrowers having FICO scores below 680, and mortgages with borrowers having DTI ratios greater than 45%, each attribute as determined at the time of loan origination.

Current wording

We consider a variety of loan characteristics when assessing the risk of a loan. The table below provides information about loans with one or more of the following characteristics associated with our NIW: LTV ratios greater than 95%, mortgages with borrowers having FICO scores below 680, and mortgages with borrowers having DTI ratios greater than 45%, each attribute as determined at the time of loan origination.

Previous wording

Our annual persistency was 84.7% at March 31, 2025 compared to 85.7% at March 31, 2024. Since 2018, our annual persistency ranged from a high of 86.3% at September 30, 2023 to a low of 60.7% at March 31, 2021. Our persistency rate is primarily affected by the level of current mortgage interest rates compared to the mortgage coupon rates on our IIF, which affects the vulnerability of the IIF to refinancing; and the current amount of equity that borrowers have in the homes underlying our IIF.

Current wording

Our annual persistency was 84.7% at June 30, 2025 compared with 85.4% at June 30, 2024. Since 2018, our annual persistency ranged from a high of 86.3% at September 30, 2023 to a low of 60.7% at March 31, 2021. Our persistency rate is primarily affected by the level of current mortgage interest rates compared to the mortgage coupon rates on our IIF, which affects the vulnerability of the IIF to refinancing; and the current amount of equity that borrowers have in the homes underlying our IIF.

Previous wording

In connection with the GSEs' CRT programs, an insurance subsidiary of MGIC provides insurance and reinsurance covering portions of the credit risk related to certain reference pools of mortgages acquired by the GSEs. Our RIF, as reported to us, related to these programs was approximately $443 million and $392 million as of March 31, 2025 and December 31, 2024, respectively.

Current wording

In connection with the GSEs' CRT programs, an insurance subsidiary of MGIC provides insurance and reinsurance covering portions of the credit risk related to certain reference pools of mortgages acquired by the GSEs. Our RIF, as reported to us, related to these programs was approximately $520 million and $392 million as of June 30, 2025 and December 31, 2024, respectively.

Previous wording

The following section of the MD&A provides a comparative discussion of MGIC Investment Corporation’s Consolidated Results of Operations for the three months ended March 31, 2025 and 2024.

Current wording

The following section of the MD&A provides a comparative discussion of MGIC Investment Corporation’s Consolidated Results of Operations for the three and six months ended June 30, 2025 and 2024.

Previous wording

Premiums earned for the three months ended March 31, 2025 were $243.7 million, compared with $242.6 million for the same period last year. Net premiums written for the three months ended March 31, 2025 were $235.3 million, compared with $233.8 million for the same period last year.

Current wording

Premiums earned for the three and six months ended June 30, 2025 were $244.3 million and $488.0 million, respectively, compared with $243.5 million and $486.2 million for the same periods last year. Net premiums written for the three and six months ended June 30, 2025 were $237.4 million and $472.7 million, respectively, compared with $233.5 million and $467.3 million for the same periods last year.

Previous wording

Net premium yield is net premiums earned divided by average IIF during the period. The following table presents the key drivers of our net premium yield for each of the three months ended March 31, 2025 and March 31, 2024.

Current wording

Net premium yield is net premiums earned divided by average IIF during the period. The following table presents the key drivers of our net premium yield for each of the three and six months ended June 30, 2025 and June 30, 2024.

Previous wording

(2) Assumed premiums include those from our participation in GSE CRT programs, of which the impact on the net premium yield was 0.5 bps for the three months ended March 31, 2025 and the three months ended March 31, 2024.

Current wording

(2) Assumed premiums include those from our participation in GSE CRT programs, of which the impact on the net premium yield was 0.5 bps for both thesix months ended June 30, 2025 and June 30, 2024.

Previous wording

The following table provides information related to our QSR Transactions for each of the three months ended and as of March 31, 2025 and March 31, 2024.

Current wording

The following table provides information related to our QSR Transactions for each of the three and six months ended and as of June 30, 2025 and June 30, 2024.

Previous wording

The increase in profit commission for the three months ended March 31, 2025, was primarily driven by an increase in the percentage of our IIF covered by the QSR Transactions as discussed below. Ceded losses incurred are impacted by the delinquencies covered by our QSR Transactions, our estimates of payments that will be ultimately made on those delinquencies, and claim payments covered by our QSR Transactions.

Current wording

The increase in profit commission for the three and six months ended June 30, 2025, was primarily driven by an increase in the percentage of our IIF covered by the QSR Transactions as discussed below. Ceded losses incurred are impacted by the delinquencies covered by our QSR Transactions, our estimates of payments that will be ultimately made on those delinquencies, and claim payments covered by our QSR Transactions.

Previous wording

The increase in IIF and RIF subject to QSR Transactions was primarily due to the increase in transactions subject to our 2024 QSR Transaction.

Current wording

The increase in IIF and RIF subject to QSR Transactions was primarily due to an increase in active QSR Transactions as of June 30, 2025 when compared with June 30, 2024.

Previous wording

As of March 31, 2025, the weighted average coverage percentage of our QSR transactions was 31% based on RIF.

Current wording

As of June 30, 2025, the weighted average coverage percentage of our QSR transactions was 32% based on RIF.

Previous wording

The Home Re Transactions are executed through the issuance of insurance linked notes (“ILNs”). As of March 31, 2025 our Home Re Transactions provided $763.4 million of loss coverage on a portfolio of policies having an in force date from August 1, 2020 through December 31, 2021, and from June 1, 2022 through August 31, 2023; all dates inclusive. For this reinsurance coverage, we retain the first layer of the respective aggregate losses paid, and a Home Re Entity will then provide second layer coverage up to the outstanding reinsurance amount.

Current wording

The Home Re Transactions are executed through the issuance of insurance linked notes (“ILNs”). As of June 30, 2025 our Home Re Transactions provided $689.9 million of loss coverage on a portfolio of policies having an in force date from August 1, 2020 through December 31, 2021, and from June 1, 2022 through August 31, 2023; all dates inclusive. For this reinsurance coverage, we retain the first layer of the respective aggregate losses paid, and a Home Re Entity will then provide second layer coverage up to the outstanding reinsurance amount.

Previous wording

The current attachment, current detachment, and PMIERs required asset credit for each of our XOL Transactions, as of March 31, 2025, are as follows.

Current wording

The current attachment, current detachment, and PMIERs required asset credit for each of our XOL Transactions, excluding the 2025 Traditional XOL which is still in its fill up period, as of June 30, 2025, are as follows.

Previous wording

Ceded premiums on our XOL Transactions were $14.7 million for the three months ended March 31, 2025, and $16.1 million for the three months ended March 31, 2024.

Current wording

Ceded premiums on our XOL Transactions were $15.4 million and $30.1 million, respectively, for the three and six months ended June 30, 2025, and $16.6 million and $32.7 million, respectively, for the three and six months ended June 30, 2024.

Previous wording

Net investment income in the three months ended March 31, 2025 and 2024 was $61.4 million and $59.7 million, respectively.

Current wording

Net investment income in the three months ended June 30, 2025 and 2024 was $61.0 million and $61.5 million, respectively. Net investment income for the six months ended June 30, 2025 and 2024 was $122.4 million and $121.2 million, respectively.

Previous wording

Estimation of losses is inherently judgmental. The conditions that affect the claim rate and claim severity include the current and future state of the domestic economy, including unemployment and the current and future strength of local housing markets; exposure on insured loans; the amount of time between delinquency and claim filing (all else being equal, the longer the period between delinquency and claim filing, the greater the severity); and curtailments and rescissions. The actual amount of the claim payments may be substantially different than our loss reserve estimates. Our estimates could be adversely affected by several factors, including a deterioration of regional or national economic conditions, including unemployment, leading to a reduction in borrowers’ income and thus their ability to make mortgage payments, the impact of past and future government initiatives and actions taken by the GSEs, and a drop in housing values which may affect borrower willingness to continue to make mortgage payments when the value of the home is below the mortgage balance. Loss reserves in future periods will also be dependent on the number of loans reported to us as delinquent.

Current wording

Estimation of losses is inherently judgmental. The conditions that affect the claim rate and claim severity include the current and future state of the domestic economy, including unemployment and the current and future strength of local housing markets; exposure on insured loans; the amount of time between delinquency and claim filing (all else being equal, the longer the period between delinquency and claim filing, the greater the severity); and curtailments and rescissions. The actual amount of the claim payments may be substantially different than our loss reserve estimates. Our estimates could be adversely affected by several factors, including a deterioration of regional or national economic conditions, including unemployment, which may reduce income of borrowers and their ability to make mortgage payments. Additionally, the impact of past and future government initiatives and actions taken by the GSEs may impact our estimates. A decline in housing values may affect borrower willingness to continue to make mortgage payments when the value of the home is below the mortgage balance. Loss reserves in future periods will also be dependent on the number of loans reported to us as delinquent.

Previous wording

The loss ratio is the ratio, expressed as a percentage, of losses incurred, net to net premiums earned. The loss ratio was 3.9% for the three months ended March 31, 2025, compared with 1.9% for the three months ended March 31, 2024.

Current wording

The loss ratio is the ratio, expressed as a percentage, of losses incurred, net to net premiums earned. The loss ratio was (1.2)% and 1.4% for the three and six months ended June 30, 2025, compared with (7.5)% and (2.8)% for the three and six months ended June 30, 2024.

Previous wording

A rollforward of our primary delinquency inventory for the three months ended March 31, 2025 and 2024 appears in the table below. The information concerning new notices and cures is compiled from monthly reports received from loan servicers. The level of new notice and cure activity reported in a particular month can be influenced by, among other things, the date on which a servicer generates its report, the number of business days in a month and transfers of servicing between loan servicers.

Current wording

A rollforward of our primary delinquency inventory for the three and six months ended June 30, 2025 and 2024 appears in the table below. The information concerning new notices and cures is compiled from monthly reports received from loan servicers. The level of new notice and cure activity reported in a particular month can be influenced by, among other things, the date on which a servicer generates its report, the number of business days in a month and transfers of servicing between loan servicers.

Previous wording

The majority of loans insured prior to 2014 (which represent 32% of the loans in the delinquency inventory) are covered by master policy terms that, except under certain circumstances, do not limit the number of years that an insured can include interest when filing a claim. Under our current master policy terms, an insured can include accumulated interest when filing a claim only for the first three years the loan is delinquent. In each case, the insured must comply with its obligations under the terms of the applicable master policy.

Current wording

The majority of loans insured prior to 2014 (which represent 28% of the loans in the delinquency inventory) are covered by master policy terms that, except under certain circumstances, do not limit the number of years that an insured can include interest when filing a claim. Under our current master policy terms, an insured can include accumulated interest when filing a claim only for the first three years the loan is delinquent. In each case, the insured must comply with its obligations under the terms of the applicable master policy.

Previous wording

(1)Approximately 26%, 27%, and 35% of the primary delinquency inventory delinquent for 12 consecutive months or more has been delinquent for at least 36 consecutive months as of March 31, 2025, December 31, 2024, and March 31, 2024, respectively.

Current wording

(1)Approximately 24%, 27%, and 31% of the primary delinquency inventory delinquent for 12 consecutive months or more has been delinquent for at least 36 consecutive months as of June 30, 2025, December 31, 2024, and June 30, 2024, respectively.

Previous wording

(1)Approximately 22%, 25%, and 32% of the primary delinquency inventory with 12 payments or more delinquent has at least 36 payments delinquent as of March 31, 2025, December 31, 2024, and March 31, 2024, respectively.

Current wording

(1)Approximately 20%, 25%, and 30% of the primary delinquency inventory with 12 payments or more delinquent has at least 36 payments delinquent as of June 30, 2025, December 31, 2024, and June 30, 2024, respectively.

Previous wording

Net losses and LAE paid in the three months ended March 31, 2025 were consistent with the same periods in the prior year. The primary average claim paid can vary materially from period to period based upon a variety of factors, including the local market conditions, average loan amount, average coverage percentage, the amount of time between delinquency and claim filing, and our loss mitigation efforts on loans for which claims are paid.

Current wording

Net losses and LAE paid in the three and six months ended June 30, 2025 were consistent with the same periods in the prior year. The primary average claim paid can vary materially from period to period based upon a variety of factors, including the local market conditions, average loan amount, average coverage percentage, the amount of time between delinquency and claim filing, and our loss mitigation efforts on loans for which claims are paid.

Previous wording

The following table presents our net losses and LAE paid for the three months ended March 31, 2025 and 2024.

Current wording

The following table presents our net losses and LAE paid for the three and six months ended June 30, 2025 and 2024.

Previous wording

The primary average RIF on all loans was $70,973, $70,475, and $68,379 at March 31, 2025, December 31, 2024, and March 31, 2024, respectively.

Current wording

The primary average RIF on all loans was $71,741, $70,475, and $69,284 at June 30, 2025, December 31, 2024, and June 30, 2024, respectively.

Previous wording

On our primary business, the highest claim frequency years have typically been the third and fourth year after loan origination. However, the pattern of claim frequency can be affected by many factors, including persistency and deteriorating economic conditions. Deteriorating economic conditions can result in increasing claims following a period of declining claims. As of March 31, 2025, 52% of our primary RIF was written subsequent to December 31, 2021, 76% of our primary RIF was written subsequent to December 31, 2020, and 88% of our primary RIF was written subsequent to December 31, 2019.

Current wording

On our primary business, the highest claim frequency years have typically been the third and fourth year after loan origination. However, the pattern of claim frequency can be affected by many factors, including persistency and deteriorating economic conditions. Deteriorating economic conditions can result in increasing claims following a period of declining claims. As of June 30, 2025, 55% of our primary RIF was written subsequent to December 31, 2021, 77% of our primary RIF was written subsequent to December 31, 2020, and 89% of our primary RIF was written subsequent to December 31, 2019.