MGIC Investment Corporation

Good day, ladies and gentlemen, and thank you for standing by. Welcome to the MGIC Investment Corporation fourth quarter 2025 earnings call. At this time, all lines have been placed on mute to prevent any background noise. At the end of today's presentation, we'll have a question and answer session. If anyone is required to ask a question at this time, please press star 1 1 on your telephone keypad. At this time, I would like to turn the conference over to Diana Higgins, head of investor relations. Please go ahead.

Thank you, Howard. Good morning and welcome, everyone. Thank you for your interest in MGIC. Joining me on today's call to discuss our results for the fourth quarter are Tim Mackey, Chief Executive Officer, and Nathan Colson, Chief Financial Officer and Chief Risk Officer. Our press release, which contains MGIC's fourth quarter financial results, was issued yesterday and is available on our website at mtg.mgic.com under Newsroom includes additional information about our quarterly results that we will reference during today's call, as well as a reconciliation of non-GAAM financial measures to their most comparable GAAM measures. In addition, we posted a quarterly supplement on our website that provides details about our primary risk and force and other information you may find valuable. As a reminder, from time to time, we may post updates to our underwriting guidelines, additional presentations or corrections to past materials on our website. Before we get started today, I want to remind everyone that during today's call, we may make forward-looking statements regarding our expectations for the future. Actual results could differ materially from those expressed in these forward-looking statements. Additional information about the factors that could cause actual results to differ materially from those discussed in today's calls is included in our 8K filed yesterday. If we make any forward-looking statements, we are not undertaking an obligation to update those statements in the future in light of subsequent events. No one should rely on the fact that such guidance or forward-looking statements are current at any time other than the time of this call or the issuance of our 8K. With that, I now have the pleasure of turning the call over to Tim.

Thank you, Diana, and good morning, everyone. We delivered another quarter of solid financial results, closing 2025 strong and entering the new year from a position of strength. This performance is a continuation of the sustained momentum we've built over the past several years. Our performance stems from being grounded in decades of experience across a wide range of market cycles, discipline risk management, and a thoughtful, measured approach to the market. We pair our expertise with a customer-centric mindset, continually evolving to meet the changing needs of our customers and the broader market. Turning to a few financial highlights, in the quarter we earned a net income of $169 million, producing an annualized 13% return on equity. For the full year, we earned net income of $738 million, and a full year return on equity was 14.3%. Our strong operating performance and robust balance sheet enabled us to grow book value per share to $23.47, 13% higher year over year. As I mentioned on last quarter's call, we are proud to have achieved a significant milestone in our company's history and the industry first during the year, surpassing $300 billion of insurance in force. We continue to grow insurance in force in the fourth quarter, ending the year with more than $303 billion, up 3% from a year ago. Annual persistency remained elevated and stable throughout 2025, ending the quarter at 85%, in line with our expectations at the start of the year. We wrote $17 billion of high quality new business in the fourth quarter and $60 billion for the full year, an increase of 8% from the prior year. Concessus mortgage origination forecast project the size of the MI market in 2026 will be relatively similar to 2025 with mortgage rates remaining elevated. Overall, we expect insurance and force to remain relatively flat in 2026. If mortgage rates were to decrease more in 2026 than currently predicted, We expect the size of the EMI market would benefit due to increased refinance volume, but growth in insurance and force would be offset by lower persistency. Our focus remains on building and maintaining a strong, well-diversified insurance portfolio. Credit quality of our insurance portfolio remains solid, with an average credit score at origination of 748. To date, we have not seen a material change in the credit performance of our portfolio, and early payment defaults remain low. which we believe is a good indicator of near-term credit trends. As discussed throughout the year, financial strength and flexibility are the cornerstones of our capital management strategy, positioning us to perform well across a range of economic environments. As part of our strategy, we regularly evaluate capital levels of both the operating company and holding company, taking into account current and potential future environments to position ourselves for success, an approach that has consistently served our stakeholders well. As part of this, we continue to bolster our reinsurance program through the use of forward commitment quota share agreements and excess of loss agreements executed in either the traditional reinsurance or capital markets. In addition to reducing loss volatility and stress scenarios, these agreements provide capital diversification and flexibility at attractive costs. We remained active in the reinsurance market in the fourth quarter and in January. In the fourth quarter, as previously announced, we further strengthened our reinsurance program with a $250 million excess of loss transaction covering our 2021 NIW and a 40% quarter share transaction that will cover most of our 2027 NIW. We also amended the terms of our quarter share treaties covering our 2022 NIW with most participants from the existing reinsurance panel, reducing the ongoing costs by approximately 40% beginning in 2026. In addition, in January, we completed our eighth insurance link note transaction, which provides $324 million of loss protection and covers certain policies written between January 2022 and March 2025. These reinsurance activities are aligned with our long-term strategy and reflect our consistent, disciplined approach to managing risk and capital. At the end of the fourth quarter, our reinsurance program reduced our PMIRES required assets by $2.8 billion for approximately 47%. With that, let me turn it over to Nathan to provide more details on our financial results and capital management activities for the quarter.