Direct Answer
5 SEC filers are classified under the Standard Industrial Classification codes that describe the mortgage insurance industry, and their latest annual reports show $23.5 billion of combined revenue and a median net margin of 6.8%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics.
Industry Overview
Mortgage insurers cover lenders against losses on low-down-payment home loans in exchange for premiums. Earnings follow new insurance written, persistency and credit losses, with strong profits when housing credit is healthy. The first numbers to compare across companies here are new insurance written, persistency and loss ratio.
Key Industry Metrics
- New insurance written: Amount of new coverage written on low-down-payment loans. It follows home purchase and refinance volume, and lender demand.
- Persistency: Share of insured loans that stay in place over time. Higher persistency keeps premiums coming, and falls when borrowers refinance.
- Loss ratio: Claims and reserves as a share of premiums. It is low when home prices and employment are stable, and rises in housing stress.
- Insurance in force: Total amount of loans under active coverage. It drives premium income, and grows when new writings exceed run-off.
- Capital against requirements: Capital held relative to regulator and investor requirements. It shows capacity to write new business and return capital.
Primary Macro Drivers
- Home sales and mortgage originations: Low-down-payment loans need coverage, so more home buying and originations lift new insurance written.
- Home prices: Rising prices build borrower equity and lower claims, while falling prices raise defaults and losses.
- Unemployment: Job loss is a main cause of mortgage default, so unemployment trends feed into claims and loss ratio.
- Interest rates: Higher rates cut refinancing, so policies stay in force longer, supporting persistency and insurance in force.
Major Risks
- Credit losses in housing downturns: Falling home values and job losses raise claims across the book. Watch loss ratio, delinquency and reserve changes.
- Regulatory capital requirements: Rules on required capital against insured loans can limit profits or growth. Watch capital against requirements and regulatory proposals.
- Competition from government programs: Government mortgage programs can offer coverage at lower prices and take share. Watch new insurance written and market share.
- Low persistency in refinance waves: When refinancing surges, policies end early and insurance in force falls. Watch persistency and new insurance written.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Cyclical |
| Capital Intensity | High |
| Regulatory Intensity | High |
| Industry Maturity | Mature |
| Geographic Importance | U.S. |
Mortgage Insurance Filers in the SEC Record
5 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification codes 6351, 6399. Their latest fiscal years end in 2025, and together they reported $23.5 billion of revenue. Median revenue growth over the prior year was 7.9%. Median net margin was 6.8%. Median total liabilities were 80% of total assets, and 3 of 5 reported a profit in their latest year.
| Company | Revenue | Growth | Operating margin | Net margin | Year |
|---|---|---|---|---|---|
| Assurant, Inc. | $12.8 billion | 7.9% | n/a | 6.8% | FY 2025 |
| Old Republic International Corp | $9.1 billion | 11.0% | n/a | 10.2% | FY 2025 |
| Mgic Investment Corp | $1.2 billion | 0.5% | n/a | 60.8% | FY 2025 |
| Octave Specialty Group Inc | $251 million | 6.5% | n/a | -103.1% | FY 2025 |
| Mbia Inc | $80 million | 90.5% | n/a | -221.3% | FY 2025 |
Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code.
Where to Go Next
The Mortgage Insurance guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company.
More in Financials
- Financials sector overview
- Mortgage Originators
- Mortgage Finance
- Mortgage REITs
- Money-Center Banks
- Mortgage Servicers
- Merchant Acquirers
- Mortgage Servicing REITs
- Market Makers
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Frequently Asked Questions
What are the main KPIs for the Mortgage Insurance industry?
Key performance indicators for the Mortgage Insurance industry include: New insurance written, Persistency, Loss ratio, Insurance in force, Capital against requirements. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.
How cyclical is the Mortgage Insurance industry?
The Mortgage Insurance industry is cyclical, meaning its revenues and earnings tend to expand during economic expansions and contract during downturns. Investors should monitor leading economic indicators and interest rate trends when evaluating timing.
What are the biggest risks in the Mortgage Insurance industry?
The primary risks for Mortgage Insurance companies include: Credit losses in housing downturns, Regulatory capital requirements, Competition from government programs, Low persistency in refinance waves. Investors should assess each company's exposure to these factors and its track record of navigating them.