NYSE Shariah screener · October 2026
Is MGIC Investment Corporation (MTG) Halal?
MGIC Investment Corporation · NYSE: MTG · Financials
The short answer
MGIC Investment fails the Shariah business-activity gate: its core business is conventional private mortgage insurance on interest-based mortgages. Investment income of $246.3 million is 20.3% of revenue (over the 5% ceiling); senior notes of $646.1 million are 11.1% of its ~$5.80 billion market cap.
Gate 1 — Business activity: FAIL
Gate 1 — business activity: FAIL. MGIC Investment Corporation, per its FY2025 Form 10-K (filed February 25, 2026), is a holding company that through its subsidiaries provides private mortgage insurance and other mortgage credit risk solutions - insuring residential mortgage lenders and the GSEs against borrower-default credit losses. 2025: total revenues $1.2 billion, new insurance written $60.2 billion, direct primary insurance in force $303.1 billion.
Its core business is conventional private mortgage insurance on interest-based residential mortgages - a non-permissible activity under standard business screens. Conventional insurance is the business, not an ancillary line. The business fails gate 1.
Gate 2 — Debt and cash: PASS
Gate 2 — interest-bearing debt: PASS (11.1%, ceiling 33%). Per MGIC's FY2025 Form 10-K consolidated balance sheet, senior notes were $646.1 million as the sole debt line (5.25% notes due 2028, $650 million par; no short-term debt).
$646.1 million against a market capitalization of about $5.80 billion (Finnhub, October 2, 2026; NYSE: MTG) is about 11.1%, under the 33% ceiling. The debt gate passes, but the result is moot given the business-gate failure.
Gate 3 — Non-compliant income: FAIL
Gate 3 — non-compliant income: FAIL (20.3%, ceiling 5%). MGIC's FY2025 Form 10-K reports investment income, net of expenses, of $246.3 million against total revenues of $1,213.6 million - about 20.3%, over the 5% non-compliant income ceiling.
Investment income on float is core to the mortgage-insurance business model. Expected for a conventional mortgage insurer, and reported for the record.
Key figures used
- Business: holding company — private mortgage insurance + mortgage credit risk solutions; insures lenders/GSEs against borrower-default losses (FY2025 10-K)
- Haram assessment: core business is conventional private mortgage insurance on interest-based residential mortgages — non-permissible activity; fails business-activity gate
- Debt: $646.1M senior notes, sole debt line (5.25% due 2028; no short-term debt) ÷ ~$5.80B market cap (Finnhub, Oct 2, 2026) = 11.1% — under the 33% ceiling (moot)
- Investment income: $246.3M investment income, net of expenses ÷ $1,213.6M total revenue = 20.3% — over the 5% ceiling
- Scale: 2025 total revenues $1.2B; new insurance written $60.2B; direct primary insurance in force $303.1B
- Market data: NYSE-listed (MTG); actively listed, confirmed October 2, 2026; Finnhub XNYS live quote; no delisting; figures cross-checked via SEC XBRL company-facts API (CIK 0000876437)
- Third-party: Zoya not Shariah-compliant (AAOIFI, FY2025); Musaffa NOT HALAL (AAOIFI, Oct 2026) — both consistent with this FAIL; no verifiable ShariaPortfolio rating
Frequently asked questions
What does MGIC Investment do?
MGIC Investment Corporation (NYSE: MTG) is a holding company that, through its subsidiaries, provides private mortgage insurance and other mortgage credit risk solutions. Per its FY2025 Form 10-K, it insures residential mortgage lenders and the GSEs against borrower-default credit losses: 2025 total revenues were $1.2 billion, new insurance written was $60.2 billion, and direct primary insurance in force was $303.1 billion.
Is MGIC Investment's business Shariah compliant?
No - MGIC Investment fails the business-activity gate. Its core business is conventional private mortgage insurance on interest-based residential mortgages - a non-permissible activity under standard business screens. Conventional insurance is the business, not an ancillary line.
How much interest-bearing debt does MGIC Investment have?
MGIC's FY2025 Form 10-K reports senior notes of $646.1 million as the sole debt line (5.25% notes due 2028, $650 million par; no short-term debt). Against a market capitalization of about $5.80 billion (Finnhub, October 2, 2026), that is about 11.1% - under the 33% ceiling. The debt gate passes, but the result is moot given the business-gate failure.
How much interest income does MGIC Investment earn?
MGIC's FY2025 Form 10-K reports investment income, net of expenses, of $246.3 million against total revenues of $1,213.6 million - about 20.3%, over the 5% non-compliant income ceiling. Expected for a conventional mortgage insurer, and reported for the record.
What do third-party Shariah screeners say about MGIC Investment?
Zoya flags MTG as not Shariah-compliant (AAOIFI, FY2025) and Musaffa rates MTG as not halal (AAOIFI, October 2026) - both consistent with this page's FAIL. I could not verify a per-ticker ShariaPortfolio rating from public sources. Third-party screeners apply different assumptions and update on different schedules - always check the latest screening before investing.
Sources
- MGIC Investment FY2025 Form 10-K — SEC EDGAR (filed Feb 25, 2026; CIK 0000876437)
- Finnhub — MGIC Investment financial market data (XNYS, market cap $5.80B, live quote Oct 2, 2026)
- Zoya — MGIC Investment (MTG) Shariah compliance page (not Shariah-compliant, AAOIFI, FY2025)
- Musaffa — MGIC Investment (MTG) stock page (not halal, AAOIFI, Oct 2026)
Screened 2026-10-02 from published company figures and market data. Figures change; this page is educational, not financial advice and not a religious ruling.
Screened with our two-gate Shariah screening methodology (business-activity gate, then AAOIFI-style financial ratios).