MGIC shareholders approve executive pay, elect directors

MGIC Investment Corp (NYSE:MTG), a $5.92 billion market cap mortgage insurance provider with a "GREAT" financial health rating according to InvestingPro, announced the outcomes of several key votes taken during its Annual Meeting of Shareholders held on Thursday. The company, which boasts a strong return on equity of 15% and maintains healthy liquidity with a current ratio of 3.34, continues to demonstrate solid corporate governance practices. The shareholders elected a slate of directors, approved executive compensation, endorsed the company’s 2025 Omnibus Incentive Plan, and ratified the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for the current fiscal year.

The elected directors include Analisa M. Allen, C. Edward Chaplin, Curt S. Culver, Jay C. Hartzell, Jodeen A. Kozlak, Teresita M. Lowman, Timothy J. Mattke, Sheryl L. Sculley, Michael L. Thompson, and Mark M. Zandi. The approval for the compensation of named executive officers for 2024 was advisory in nature and received a significant majority of votes in favor.

The company’s 2025 Omnibus Incentive Plan, which outlines the framework for executive compensation and incentives, was also approved by shareholders. This plan is designed to align the interests of executives with those of the shareholders and to support the company’s long-term strategy.

In addition, the shareholders ratified PricewaterhouseCoopers LLP as MGIC’s independent auditor for the year ending December 31, 2025. This vote reflects the shareholders’ trust in the firm to provide an unbiased and accurate audit of MGIC’s financial statements.

The voting results indicate strong shareholder support for the company’s governance practices and strategic direction. The approval of the 2025 Omnibus Incentive Plan and the ratification of the independent auditor are seen as endorsements of the company’s commitment to transparency and accountability. Management’s recent aggressive share buyback program and six consecutive years of dividend increases, currently yielding 2.1%, further demonstrate their commitment to shareholder value. For deeper insights into MGIC’s governance metrics and comprehensive analysis, investors can access the detailed Pro Research Report available on InvestingPro, which covers over 1,400 US equities.

These decisions are part of the standard corporate governance process for publicly traded companies, allowing shareholders to voice their opinions on the management and direction of the company. Trading at an attractive P/E ratio of 8.32 and currently showing signs of being undervalued according to InvestingPro’s Fair Value analysis, MGIC continues to maintain strong financial metrics while adhering to robust governance standards. The information provided in this article is based on a press release statement from MGIC Investment Corp and enhanced with InvestingPro data, where investors can find 6 additional exclusive ProTips about the company’s performance and outlook.

In other recent news, MGIC Investment Corporation has announced a new share repurchase program, authorizing the buyback of up to $750 million of its common stock, with the program set to run until the end of 2027. The board also declared a quarterly cash dividend of $0.13 per share, payable in May 2025. In a corporate governance update, Board member Timothy A. Holt will not seek re-election at the upcoming Annual Meeting of Shareholders in April 2025, with no disagreements cited regarding his departure. Compass Point recently downgraded MGIC’s stock from Buy to Neutral, although they raised the price target to $27.00. This adjustment follows MGIC’s fourth-quarter earnings report, which showed an adjusted earnings per share of $0.72, exceeding the consensus estimate of $0.66. The company also paid a $400 million dividend to its holding company, enhancing liquidity significantly. Despite these positive earnings, a higher interest rate environment is impacting new insurance volumes, with only a 0.9% year-over-year increase in insurance in force. Analysts from Compass Point expect this trend to continue, potentially affecting MGIC’s earnings in the future as the mortgage market evolves.

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