Mgic Investment (MTG) risk factors, FY2025 10-K

Mgic Investment's FY2025 10-K, filed Feb 25, 2026, lists 42 risk factors. Against the prior year's 32: 17 new, 7 dropped, 18 substantially reworded.

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Risk factors listed
420 groups
New this year
17vs 32 last year
Dropped
7since the prior 10-K
Substantially reworded
18of those kept
Section length
12k wordsItem 1A

What the changes say

  • MGIC highlights heightened sensitivity to macroeconomic downturns, housing market volatility, and evolving GSE and regulatory capital requirements.

What changed since the prior 10-K

New

  • New

    Economic downturns and/or declines in home prices may lead to increased losses

    General macroeconomic conditions, inflation, and home price declines can increase loan delinquencies and claims beyond our control.

  • New

    To the extent the business practices and policies of the GSEs regarding mortgage insurance coverage, costs and cancellation change, such changes may negatively impact the mortgage insurance industry and our financial results

    Congressional or executive branch reforms of the GSEs create uncertainty for our mortgage insurance business and financial results.

  • New

    MGIC Investment Corporation 2025 Form 10-K | 28

    Failure to meet PMIERs transactional approval conditions could cause the GSEs to suspend or terminate our loan insurance eligibility.

  • New

    The effects of pandemics, severe weather events, or other disasters may adversely impact our results of operations and financial condition

    Pandemics and severe weather events can depress home prices and increase claim severity in affected areas.

  • New

    flood insurance, or the increased cost of such insurance, could lead to a decrease in home prices in the affected areas and an increase in delinquencies and our incurred losses

    Natural disasters can increase hazard insurance costs, reduce reinsurance availability, and impair investment portfolio values.

  • New

    MGIC Investment Corporation 2025 Form 10-K | 30

    The NAIC's adopted Mortgage Guaranty Insurance Model Act introduces new capital and contingency reserve requirements.

  • New

    MGIC Investment Corporation 2025 Form 10-K | 31

    Alternative credit enhancements and government-supported mortgage insurance programs like the FHA could put us at a competitive disadvantage.

  • New

    servicers have. Consolidation in the mortgage servicing market may also lead to increased risk as a large servicer's operational failures, system outages, or policy changes could affect a larger portion of our IIF

    Servicer consolidation and liquidity issues could lead to operational failures that affect a larger portion of our insurance in force.

  • New

    Failed, disrupted, or inadequate information technology systems may materially impact our operations and/or adversely affect our financial results

    Failures in our information technology systems or reliance on key technology providers could disrupt operations and increase costs.

  • New

    MGIC Investment Corporation 2025 Form 10-K | 33

    Failure to successfully deploy artificial intelligence and other rapidly advancing technologies could adversely affect our business.

  • New

    reinsurance coverage periods, we retain the first layer of aggregate losses and the reinsurers provide second layer coverage up to the outstanding reinsurance coverage amount

    Strong credit performance and low loss ratios may cause a decline in our in-force portfolio yield over time.

  • New

    MGIC Investment Corporation 2025 Form 10-K | 35

    Easier mortgage lending standards could prompt lenders to pressure us into insuring higher-risk loans with lower credit scores.

  • New

    MGIC Investment Corporation 2025 Form 10-K | 36

  • New

    MGIC Investment Corporation 2025 Form 10-K | 37

  • New

    Our investment portfolio is subject to credit and interest rate risk, may suffer reduced or low returns, and/or material realized or unrealized losses

  • New

    Our investment portfolio has benefited from certain tax exemptions (such as those related to interest from municipal bonds) and other tax laws. Changes in these laws could adversely impact the value of our investment portfolio

  • New

    MGIC Investment Corporation 2025 Form 10-K | 38

Dropped

  • Dropped

    Wars and/or other global events may adversely affect the U.S. economy and our business

    Global events and wars impacting the U.S. economy and quota share reinsurance terms.

  • Dropped

    Downturns in the domestic economy or declines in home prices may result in more homeowners defaulting and our losses increasing, with a corresponding decrease in our returns

    Domestic economic downturns and home price declines leading to increased borrower defaults.

  • Dropped

    Pandemics, hurricanes and other disasters may adversely impact our results of operations and financial condition

  • Dropped

    adverse effect on our business, financial condition and operating results. We may terminate delegation of these loss management decisions to the GSEs; however, such termination may adversely affect our relationship with the GSEs and servicers

  • Dropped

    Information technology system failures or interruptions may materially impact our operations and/or adversely affect our financial results

  • Dropped

    malfunctions in our operations, which could result in damage to our reputation, financial losses, litigation, increased costs, regulatory penalties or customer dissatisfaction. We could be similarly affected by threats against our vendors and/or third-parties with whom we share information

  • Dropped

    Our success depends, in part, on our ability to manage risks in our investment portfolio

Reworded

  • 85% rewritten

    We are subject to the risk of legal proceedings

    Removed a sentence noting that the company operates in a highly regulated industry subject to litigation and regulatory proceedings.

  • 81% rewritten

    Our underwriting practices and the mix of business we write affects our Minimum Required Assets under the PMIERs, our premium yields and the likelihood of claims

    Updated terminology from credit score to FICO score references in relation to Minimum Required Assets under PMIERs.

    Was: Our underwriting practices and the mix of business we write affects our Minimum Required Assets under the PMIERs, our premium yields and the likelihood of losses occurring

  • 76% rewritten

    Competition or changes in our relationships with our customers could reduce our revenues, reduce our premium yields and / or increase our losses

    Added explicit mention that increased competition is expected from both existing competitors and new market entrants.

  • 73% rewritten

    An increase in delinquent loans or a transfer of servicing resulting from liquidity issues, may increase the operational burden on servicers, cause a disruption in the servicing of delinquent loans and reduce servicers’ abilities to undertake mitigation efforts that could help limit our losses

    Clarified that loan modification loss mitigation decisions may increase the severity as well as the incidence of paid claims.

  • 73% rewritten

    MGIC Investment Corporation 2025 Form 10-K | 27

    Replaced PMIERs and alternative credit enhancement references with specific details on GSE underwriting standards and policy cancellation practices.

    Was: MGIC Investment Corporation and Subsidiaries

  • 72% rewritten

    We may not continue to meet the GSEs’ private mortgage insurer eligibility requirements and our returns may decrease if we are required to maintain more capital in order to maintain our eligibility

    Maintained core PMIERs Available and Minimum Required Assets description with minor structural updates.

  • 72% rewritten

    State capital requirements may prevent us from continuing to write new insurance on an uninterrupted basis

    Retained state capital requirements and Wisconsin's minimum policyholder position regulations with formatting adjustments.

  • 71% rewritten

    The premiums we charge may not be adequate to compensate us for our liabilities for losses and as a result any inadequacy could materially affect our financial condition and results of operations

    Added explicit details that premium rates use proprietary models incorporating geographic location, LTV, DTI, and credit scores.

  • 70% rewritten

    We could be materially adversely affected by a cybersecurity breach or failure of information security controls

  • 68% rewritten

    Changes in the business practices of Fannie Mae and Freddie Mac ("the GSEs"), federal legislation that changes their charters or a restructuring of the GSEs could reduce our revenues or increase our losses

  • 65% rewritten

    The amount of insurance we write could be adversely affected if lenders and investors select alternatives to private mortgage insurance or are unable to obtain capital relief for mortgage insurance

  • 64% rewritten

    The inability of our insurance subsidiaries to pay dividends in sufficient amounts would harm our ability to meet our obligations, pay future shareholder dividends and/or make future share repurchases

  • 52% rewritten

    We are susceptible to disruptions in the servicing of mortgage loans that we insure and we rely on third-party reporting for information regarding the mortgage loans we insure

  • 40% rewritten

    Adverse rating agency actions could have a material adverse impact on our business, results of operations and financial condition

  • 40% rewritten

    Reinsurance may be unavailable at current levels and prices, and/or the GSEs may reduce the amount of capital credit we receive for our reinsurance transactions

  • 35% rewritten

    Because we establish loss reserves only upon a loan delinquency rather than based on estimates of our ultimate losses on risk in force, losses may have a disproportionate adverse effect on our earnings in certain periods

  • 27% rewritten

    We are subject to comprehensive regulation and other requirements, which we may fail to satisfy

  • 22% rewritten

    If the volume of low down payment home mortgage originations declines, the amount of insurance that we write could decline

All 42 risk factors

Headings as the filing states them, in filing order.

Other

  1. 01Economic downturns and/or declines in home prices may lead to increased lossesNew
  2. 02Changes in the business practices of Fannie Mae and Freddie Mac ("the GSEs"), federal legislation that changes their charters or a restructuring of the GSEs could reduce our revenues or increase our losses68% rewritten
  3. 03MGIC Investment Corporation 2025 Form 10-K | 2773% rewritten
  4. 04To the extent the business practices and policies of the GSEs regarding mortgage insurance coverage, costs and cancellation change, such changes may negatively impact the mortgage insurance industry and our financial resultsNew
  5. 05We may not continue to meet the GSEs’ private mortgage insurer eligibility requirements and our returns may decrease if we are required to maintain more capital in order to maintain our eligibility72% rewritten
  6. 06MGIC Investment Corporation 2025 Form 10-K | 28New
  7. 07Because loss reserve estimates are subject to uncertainties, paid claims may be substantially different than our loss reserves
  8. 08We are subject to comprehensive regulation and other requirements, which we may fail to satisfy27% rewritten
  9. 09The effects of pandemics, severe weather events, or other disasters may adversely impact our results of operations and financial conditionNew
  10. 10flood insurance, or the increased cost of such insurance, could lead to a decrease in home prices in the affected areas and an increase in delinquencies and our incurred lossesNew
  11. 11Reinsurance may be unavailable at current levels and prices, and/or the GSEs may reduce the amount of capital credit we receive for our reinsurance transactions40% rewritten
  12. 12Because we establish loss reserves only upon a loan delinquency rather than based on estimates of our ultimate losses on risk in force, losses may have a disproportionate adverse effect on our earnings in certain periods35% rewritten
  13. 13State capital requirements may prevent us from continuing to write new insurance on an uninterrupted basis72% rewritten
  14. 14MGIC Investment Corporation 2025 Form 10-K | 30New
  15. 15If the volume of low down payment home mortgage originations declines, the amount of insurance that we write could decline22% rewritten
  16. 16The amount of insurance we write could be adversely affected if lenders and investors select alternatives to private mortgage insurance or are unable to obtain capital relief for mortgage insurance65% rewritten
  17. 17MGIC Investment Corporation 2025 Form 10-K | 31New
  18. 18The length of time our insurance policies remain in force has a significant impact on our results
  19. 19We are susceptible to disruptions in the servicing of mortgage loans that we insure and we rely on third-party reporting for information regarding the mortgage loans we insure52% rewritten
  20. 20servicers have. Consolidation in the mortgage servicing market may also lead to increased risk as a large servicer's operational failures, system outages, or policy changes could affect a larger portion of our IIFNew
  21. 21An increase in delinquent loans or a transfer of servicing resulting from liquidity issues, may increase the operational burden on servicers, cause a disruption in the servicing of delinquent loans and reduce servicers’ abilities to undertake mitigation efforts that could help limit our losses73% rewritten
  22. 22Our enterprise risk management program, described in "Business - Our Products and Services - Risk Management" in Item 1 of our Annual Report in this Form 10-K, may not be effective in identifying, or adequate in controlling or mitigating, the risks we face in our business
  23. 23Failed, disrupted, or inadequate information technology systems may materially impact our operations and/or adversely affect our financial resultsNew
  24. 24MGIC Investment Corporation 2025 Form 10-K | 33New
  25. 25We could be materially adversely affected by a cybersecurity breach or failure of information security controls70% rewritten
  26. 26Our underwriting practices and the mix of business we write affects our Minimum Required Assets under the PMIERs, our premium yields and the likelihood of claims81% rewritten
  27. 27reinsurance coverage periods, we retain the first layer of aggregate losses and the reinsurers provide second layer coverage up to the outstanding reinsurance coverage amountNew
  28. 28The premiums we charge may not be adequate to compensate us for our liabilities for losses and as a result any inadequacy could materially affect our financial condition and results of operations71% rewritten
  29. 29MGIC Investment Corporation 2025 Form 10-K | 35New
  30. 30Actual or perceived instability in the financial services industry or non-performance by financial institutions or transactional counterparties could materially impact our business
  31. 31We rely on our management team and our business could be harmed if we are unable to retain qualified personnel or successfully develop and/or recruit their replacements
  32. 32Competition or changes in our relationships with our customers could reduce our revenues, reduce our premium yields and / or increase our losses76% rewritten
  33. 33MGIC Investment Corporation 2025 Form 10-K | 36New
  34. 34Adverse rating agency actions could have a material adverse impact on our business, results of operations and financial condition40% rewritten
  35. 35We are subject to the risk of legal proceedings85% rewritten
  36. 36MGIC Investment Corporation 2025 Form 10-K | 37New
  37. 37Our investment portfolio is subject to credit and interest rate risk, may suffer reduced or low returns, and/or material realized or unrealized lossesNew
  38. 38Our investment portfolio has benefited from certain tax exemptions (such as those related to interest from municipal bonds) and other tax laws. Changes in these laws could adversely impact the value of our investment portfolioNew
  39. 39The inability of our insurance subsidiaries to pay dividends in sufficient amounts would harm our ability to meet our obligations, pay future shareholder dividends and/or make future share repurchases64% rewritten
  40. 40MGIC Investment Corporation 2025 Form 10-K | 38New
  41. 41Your ownership in our company may be diluted by additional capital that we raise
  42. 42The price of our common stock may fluctuate significantly, which may make it difficult for holders to resell common stock when they want or at a price they find attractive

Other Mgic Investment 10-Ks

  • FY2024 10-K risk factors
    32 risks

    Private mortgage insurer dependent on Fannie Mae and Freddie Mac purchases and strict PMIERs capital rules.

    Filed Feb 26, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.