MGIC Investment is the parent company of Mortgage Guaranty Insurance Corporation (MGIC), one of six active private mortgage insurers in the U.S. MGIC insures mortgage lenders against losses from borrower default on residential loans — when a borrower defaults, MGIC pays the lender a specified coverage percentage of unpaid principal, delinquent interest, and foreclosure costs. PMI exists primarily to serve borrowers who cannot afford a 20% down payment, enabling low-down-payment mortgages to be sold to Fannie Mae and Freddie Mac, which cannot purchase such loans without credit enhancement. MGIC's customers are mortgage lenders — banks, credit unions, mortgage brokers, and mortgage bankers — who purchase coverage on individual loans at origination. At year-end 2025, MGIC had $303.1B of insurance in force and $81.2B of risk in force. Revenue is driven by the size of the in-force portfolio, which grows when new insurance written exceeds cancellations. Premiums are collected monthly on nearly all policies, making revenue largely recurring. Key profitability drivers include in-force volume, persistency (how much of the book stays on each year, recently ~85%), in-force premium yield (~38 bps), and credit losses. MGIC cedes a significant portion of risk to reinsurers under quota share and excess-of-loss arrangements, reducing required regulatory capital and providing tail-risk protection. MGIC also maintains a ~$5.8B fixed-income investment portfolio that generates supplemental income. Capital returns are a central part of the business model; in 2025, MGIC returned ~$915M to shareholders through buybacks and dividends.