Who Owns MGIC Company?

The foundation of Mortgage Guaranty Insurance Corporation, or MGIC, was laid in 1957 by Max Karl, a real estate attorney. He envisioned a private sector solution to insure mortgages with low down payments, aiming to streamline the process compared to government-backed guarantees. Karl secured an initial capital of $250,000 from a varied group of investors to launch the company.

Founding Vision

Max Karl founded MGIC with the goal of creating a private insurance alternative for low down payment mortgages. This initiative aimed to simplify and expedite the mortgage process for a broader range of borrowers.

Initial Capitalization

The company's inception was supported by an initial capital raise of $250,000. This funding came from a diverse pool of investors, including Karl's personal network of friends, family, and business associates.

Public Offering

MGIC's journey as a privately held entity was relatively short. The company's common capital stock began trading publicly in 1960, with Karl officially taking MGIC public in 1961.

Market Dominance

MGIC's innovative approach quickly established it as a market leader. By 1967, the company commanded an impressive approximately 70% share of the private mortgage insurance market in the United States.

Corporate Restructuring

In 1968, a significant corporate development occurred with the establishment of MGIC Investment Corporation. This holding company structure further solidified MGIC's position as a publicly traded entity, with the original company becoming its subsidiary.

Ownership Structure

The early ownership distribution of MGIC reflected the founding team's commitment to a market-driven strategy. This structure emphasized public trading and a broad base of shareholders.

MGIC's initial ownership was privately held, a structure that facilitated its early growth and innovation. However, this changed rapidly as the company's success led to its common capital stock becoming publicly traded in 1960, with the official public offering occurring in 1961. This transition to a publicly traded company meant that ownership was no longer concentrated but distributed among a wider base of shareholders. The establishment of MGIC Investment Corporation in 1968 as a holding company further formalized this structure, with the original MGIC operating as a subsidiary. This move was a strategic step in its corporate evolution, underscoring its status as a public entity. Understanding this early history is crucial for grasping the current MGIC ownership landscape. For insights into how the company has evolved its market approach, one might look at the Marketing Strategy of MGIC.

Early MGIC Ownership Milestones

The ownership of MGIC underwent significant transformations in its formative years, moving from private hands to public markets.

• Founded by Max Karl in 1957.
• Initial capital raised was $250,000.
• Common capital stock became publicly traded in 1960.
• Officially went public in 1961.
• Holding company, MGIC Investment Corporation, established in 1968.
• By 1967, controlled approximately 70% of the private mortgage insurance market.

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MGIC Investment Corporation's ownership journey has seen significant shifts, from its initial public offering in 1961 to a major acquisition by Baldwin-United Corp. in 1981. Following Baldwin-United's bankruptcy, a new MGIC emerged in 1985, repurchased by management and backed by Northwestern Mutual Life Insurance Company, before becoming publicly traded again in 1991.

Institutional investors are the dominant force in MGIC's ownership, collectively holding 95.58% of the company's stock as of the first quarter of 2025. The top 25 shareholders alone account for 74.1% of the company's equity, indicating a concentrated ownership structure among major asset managers. This dynamic landscape, with entities like The Vanguard Group, Inc. and BlackRock, Inc. as key stakeholders, significantly influences the company's strategic direction and governance.

Key MGIC Ownership Trends

Institutional investors maintain a commanding presence in MGIC's ownership structure. Recent data shows a high concentration of shares held by a few large asset management firms.

• Institutional investors own 95.58% of MGIC as of Q1 2025.
• The top 25 shareholders control 74.1% of the company.
• Mutual funds saw a decrease in holdings to 78.26% in March 2025.
• Insider holdings increased to 0.72% in February 2025.
• MGIC shares are publicly traded, reflecting its status as a public company with a Brief History of MGIC.

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The governance of MGIC Investment Corporation is managed by its Board of Directors, which includes independent members and individuals linked to key corporate functions. Information regarding specific board members and their shareholder representation for mid-2025 is typically detailed in proxy statements, such as the one prepared for the 2025 Annual Meeting.

MGIC's voting power operates on a one-share-one-vote basis for its common stock, granting shareholders a single vote per share on all matters presented for a vote. The company does not utilize cumulative voting, meaning that a shareholder holding over 50% of the voting power can elect all directors. Wisconsin insurance regulations introduce a rebuttable presumption of control if any entity or affiliated group owns or can vote more than 10% of the voting securities, requiring approval from the Office of the Commissioner of Insurance for such transactions to prevent concentrated control. For instance, the proxy statement filed on March 21, 2025, included proposals for shareholder ratification of auditors, a standard procedural item.

Understanding MGIC's Voting Power

MGIC's shareholder voting structure is straightforward, with each common share carrying one vote. This system influences how major decisions are made and who has a say in the company's direction.

• One-share-one-vote principle applies to common stock.
• No cumulative voting rights are in place.
• Majority control is achieved with over 50% of voting power.
• Wisconsin regulations impose limits on ownership concentration, requiring regulatory approval for stakes exceeding 10%.
• Understanding these dynamics is crucial for comprehending Revenue Streams & Business Model of MGIC.

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MGIC Investment Corporation has actively managed its capital over the past 3-5 years, with significant share repurchases and dividend increases shaping its ownership trends. These actions reflect a strategy focused on returning value to shareholders.

The company's commitment to shareholder returns is further evidenced by its dividend policy. MGIC declared a quarterly cash dividend of $0.13 per common share in May 2025, which was later increased by 15% to $0.15 per share in July 2025. This consistent increase highlights the company's strong cash flow generation and financial stability.

Shareholder Returns

MGIC has actively repurchased shares and increased dividends, demonstrating a commitment to returning capital to its shareholders.

Capital Management Strategy

The company's capital management strategy includes a significant share repurchase program authorized up to $750 million through December 31, 2027.

Insider Trading Activity

In early 2025, insider sales by key executives led to ownership decreases, though overall insider holdings saw a slight increase.

Institutional Dominance

Institutional investors remain the dominant shareholders, holding approximately 95.58% of the stock as of Q1 2025, with slight fluctuations observed in subsequent months.

Insider trading activity in early 2025 saw sales by COO Salvatore A. Miosi and CEO Timothy J. Mattke, resulting in ownership decreases of 10.74% and 11.22% respectively, as of August 18, 2025. Despite these individual transactions, the aggregate insider holdings saw a minor rise from 0.52% to 0.72% in February 2025. Institutional ownership continues to be the primary driver of MGIC's stock profile, representing 95.58% of shares in Q1 2025. While institutional holdings showed minor shifts, moving from 102.13% in February 2025 to 100.83% by March 2025, mutual fund holdings also experienced a decrease during the same period. MGIC's financial performance remains robust, with a Q2 2025 net income of $192.5 million and an annualized return on equity of 15%. The tangible book value per share increased to $22.99 by the end of Q2 2025, up from $22.38 in the previous quarter. These developments underscore the company's active capital management and its position within the broader Competitors Landscape of MGIC.

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