AM Best Affirms Credit Ratings of Operating Subsidiaries of MGIC Investment Corporation

OCTOBER 02, 2026 11:44 AM (EDT)

AM Best Affirms Credit Ratings of Operating Subsidiaries of MGIC Investment Corporation

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FOR IMMEDIATE RELEASE

OLDWICK - OCTOBER 02, 2026 11:44 AM (EDT)
AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of "a" (Excellent) of the operating subsidiaries of MGIC Investment Corporation [NYSE: MTG]. The operating subsidiaries are Mortgage Guaranty Insurance Corporation, MGIC Indemnity Corporation and MGIC Assurance Corporation (collectively referred to as MGIC). All companies are domiciled in Milwaukee, WI. The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect MGIC's balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, limited business profile and appropriate enterprise risk management (ERM).

MGIC's balance sheet strength assessment of strongest is supported by its risk-adjusted capitalization being at the strongest level in stressed and unstressed scenarios, as measured by Best's Capital Adequacy Ratio (BCAR). Contributing to the strongest assessment is MGIC's use of reinsurance and compliance with private mortgage insurer eligibility requirements.

MGIC's operating performance is assessed as strong based on solid underwriting and profitability trends over the past five years. Underwriting results have been strong, as evidenced by very low loss ratios reflecting favorable credit performance of loans being insured. Underwriting gains were supplemented by investment income, which has contributed to overall earnings over the past three years.

AM Best assess MGIC's business profile as limited because the company is focused on U.S. single-family mortgage risk. A high degree of product risk is reflected in the limited business profile assessment, as the mortgage insurance industry's performance is closely tied to macroeconomic conditions and the standards established by the government-sponsored enterprises, Fannie Mae and Freddie Mac. This risk is mitigated by MGIC's use of various reinsurance programs. As one of the six private mortgage insurers in the United States, MGIC faces strong competition from the other private mortgage insurers and governmental agencies (e.g., Federal Housing Administration and Veterans Affairs) providing mortgage insurance.

MGIC's overall ERM assessment is appropriate, as the company employs a robust ERM framework and infrastructure. The ERM framework is commensurate with the size, nature and complexity of its mortgage insurance business, which AM Best considers to be aligned appropriately with its risk profile.

This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings (BCR), Best's Performance Assessments (PA), Best's Preliminary Credit Assessments (PCA) and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.