Business Description

We are a holding company and through wholly-owned subsidiaries we provide private mortgage insurance, other mortgage credit risk management solutions, and ancillary services. In 2025, our total revenues were $1.2 billion and our primary NIW was $60.2 billion. As of December 31, 2025, our direct primary IIF was $303.1 billion and our direct primary RIF was $81.2 billion. For further information about our results of operations, see our consolidated financial statements in Item 8 and our MD&A in Item 7 . As of December 31, 2025, our principal mortgage insurance subsidiary, MGIC, was licensed in all 50 states of the United States, the District of Columbia, Puerto Rico and Guam. During 2025, we wrote new insurance in each of those jurisdictions. 2026 Business Strategies Our business strategies are to 1) maximize the value we create through our mortgage credit enhancement activities; 2) differentiate ourselves through our customer experience; 3) advance our competitive advantage through our digital and analytical capabilities; 4) excel at acquiring, managing and distributing mortgage credit risk and the related capital; 5) maintain financial strength through economic cycles; and 6) foster an environment that attracts and retains the best talent and positions our people to succeed. 2025 Accomplishments Following are several of our 2025 accomplishments that furthered our business strategies. • Earned $738 million of net income ($3.14 per diluted share) for the year, compared to $763 million ($2.89 per diluted share) in 2024. • Paid $800 million of cash dividends from MGIC to our holding company, a 7% increase from the $750 million paid in 2024. • Maintained financial strength and capital flexibility while returning approximately $915 million in capital to shareholders: ▪ Ended 2025 with $1.1 billion of cash and investments at the holding company. ▪ Repurchased 12% of our shares outstanding at the beginning of the year. ▪ Paid shareholder dividends of $0.56 per share, a 14% increase from the $0.49 per share in 2024. ▪ MGIC's Financial Strength Rating was upgraded by Moody's from A3 to A2. Additionally, S&P revised its outlook to positive from stable on MGIC Investment Corporation and its core operating subsidiaries, including MGIC. • Further expanded our reinsurance program by executing reinsurance transactions that provide protection from losses for both our existing and future NIW. We also renegotiated a seasoned reinsurance transaction to recapture attractive risk and reduce future ceded premium. These transactions enhance our risk management practices and diversify our sources of capital. • Sustainably reduced operating expenses through streamlining operations, changing processes and workflow optimization. Total underwriting and other expenses, net decreased 8% in 2025 when compared with 2024. • Retired legacy data platforms, and identified and established a new environment for MI operations technology. Overview of the Private Mortgage Insurance Industry and its Operating Environment We established the modern PMI industry in 1957 to provide a private market alternative to federal government insurance programs. PMI covers losses from homeowner defaults on residential mortgage loans, reducing, and in some instances eliminating, the loss to the insured institution. Fannie Mae and Freddie Mac ("the GSEs") have been the major purchasers of the mortgage loans underlying new insurance written by private mortgage insurers. The GSEs purchase residential mortgage loans as part of their governmental mandate to provide liquidity in the secondary mortgage market. The GSEs cannot buy low down payment mortgage loans without certain forms of credit enhancement. Private mortgage insurance has generally been purchased by lenders in primary mortgage market transactions to satisfy this credit enhancement requirement. Therefore, PMI facilitates the sale of low down payment mortgages in the secondary mortgage market to the GSEs and plays an important role in the housing finance system by assisting consumers, especially first-time and low- and medium-wealth homebuyers, to finance homes with low down payment mortgages. PMI also reduces the regulatory capital that depository institutions are required to hold against certain low down payment mortgages that they hold as assets.…