FORM 10-Q
                      SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, D.C. 20549
                                  ___________

[ X ]     QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
          SECURITIES EXCHANGE ACT OF 1934
          For the quarterly period ended SEPTEMBER 30, 1996
[   ]     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)  OF THE
          SECURITIES EXCHANGE ACT OF 1934
          For the transition period from _________ to _________
          Commission file number 1-10816

                         MGIC INVESTMENT CORPORATION
           (Exact name of registrant as specified in its charter)

          WISCONSIN                                39-1486475
(State or other jurisdiction of                (I.R.S. Employer
incorporation or organization)                Identification No.)

    250 E. KILBOURN AVENUE                            53202
     MILWAUKEE, WISCONSIN                           (Zip Code)
(Address of principal executive offices)

                               (414) 347-6480
            (Registrant's telephone number, including area code)



Indicate  by check mark whether the registrant (1) has filed  all
reports  required  to be filed by Section  13  or  15(d)  of  the
Securities  Exchange Act of 1934 during the preceding  12  months
(or  for such shorter period that the registrant was required  to
file  such  reports),  and (2) has been subject  to  such  filing
requirements for the past 90 days.

        YES     X                          NO
            ----------                        ----------

Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.

CLASS OF STOCK     PAR VALUE      DATE      NUMBER OF SHARES
- --------------     ---------     -------    ----------------
Common stock       $1.00         9/30/96       58,947,927


                                    PAGE 1

<PAGE>
                         MGIC INVESTMENT CORPORATION
                              TABLE OF CONTENTS


                                                                     Page No.
                                                                     --------


PART I.   FINANCIAL INFORMATION


Item 1.   Financial Statements (Unaudited)

          Consolidated Balance Sheet as of
            September 30, 1996 (Unaudited) and December 31, 1995         3

          Consolidated Statement of Operations for the Three and Nine
            Month Periods Ended September 30, 1996 and  1995 (Unaudited) 4

          Consolidated Statement of Cash Flows for the Nine Months
            Ended September 30, 1996 and 1995 (Unaudited)                5

          Notes to Consolidated Financial Statements (Unaudited)        6-7


Item 2.   Management's Discussion and Analysis of Financial
            Condition and Results of Operations                        8-14



PART II.  OTHER INFORMATION


Item 5.   Other Information                                             15


Item 6.   Exhibits and Reports on Form 8-K                              15

SIGNATURES                                                              16

INDEX TO EXHIBITS                                                       17


                                    PAGE 2

<PAGE>

PART I.  FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

                 MGIC INVESTMENT CORPORATION AND SUBSIDIARIES
                          CONSOLIDATED BALANCE SHEET
             September 30, 1996 (Unaudited) and December 31, 1995

                                                    September 30, December 31,
                                                         1996         1995
                                                    ------------- ------------
ASSETS                                              (In thousands of dollars)
- ------
Investment portfolio:
  Securities, available-for-sale, at market value:
    Fixed maturities                                  $1,813,866   $1,602,806
    Equity securities                                      3,836        3,836
    Short-term investments                               117,033       80,579
                                                      ----------   ----------
      Total investment portfolio                       1,934,735    1,687,221

Cash                                                       7,949        9,685
Accrued investment income                                 26,921       29,213
Reinsurance recoverable on loss reserves                  29,482       33,856
Reinsurance recoverable on unearned premiums              11,635       15,485
Home office and equipment, net                            35,655       38,782
Deferred insurance policy acquisition costs               33,456       37,956
Other assets                                              25,731       22,521
                                                      ----------   ----------
      Total assets                                    $2,105,564   $1,874,719
                                                      ==========   ==========

LIABILITIES AND SHAREHOLDERS' EQUITY
- ------------------------------------
Liabilities:
  Loss reserves                                       $  486,204   $  371,032
  Unearned premiums                                      220,721      251,163
  Mortgages payable                                       35,516       35,799
  Income taxes payable                                    16,174       33,686
  Checks payable                                          11,697        9,771
  Other liabilities                                       52,803       51,876
                                                      ----------   ---------- 
      Total liabilities                                  823,115      753,327
                                                      ----------   ----------
Contingencies (note 2)

Shareholders' equity:
  Common stock, $1 par value, shares authorized
    150,000,000; shares issued 60,555,400;
    shares outstanding, 9/30/96 - 58,947,927;
    1995 - 58,629,420                                     60,555       60,555
  Paid-in surplus                                        268,415      259,430
  Treasury stock (shares at cost, 9/30/96 - 1,607,473;
    1995 - 1,925,980)                                     (7,084)      (8,172)
  Unrealized appreciation in investments, net of tax      25,896       54,737
  Retained earnings                                      934,667      754,842
                                                      ----------   ----------
      Total shareholders' equity                       1,282,449    1,121,392
                                                      ----------   ----------
      Total liabilities and shareholders' equity      $2,105,564   $1,874,719
                                                      ==========   ==========

See accompanying notes to consolidated financial statements.


                                    PAGE 3

<PAGE>
                 MGIC INVESTMENT CORPORATION AND SUBSIDIARIES
                     CONSOLIDATED STATEMENT OF OPERATIONS
       Three and Nine Month Periods Ended September 30, 1996 and 1995
                                 (Unaudited)

                                   Three Months Ended    Nine Months Ended
                                      September 30,        September 30,
                                   ------------------   -------------------
                                     1996       1995       1996       1995
                                    ------     ------     ------     ------
                              (In thousands of dollars, except per share data)
Revenues:
  Premiums written:
    Direct                         $152,544   $130,896   $421,203   $352,074
    Assumed                          10,131      2,045     13,393      6,081
    Ceded                            (4,143)    (5,231)   (10,952)   (14,388)
                                   --------   --------   --------   --------
  Net premiums written              158,532    127,710    423,644    343,767
  (Increase) decrease in unearned
    premiums                         (1,753)     2,901     28,502     23,617
                                   --------   --------   --------   --------
  Net premiums earned               156,779    130,611    452,146    367,384
  Investment income, net of expenses 26,926     22,339     76,378     63,839
  Realized investment gains, net        566         86        979         43
  Other revenue                       5,405      6,308     17,081     16,840
                                   --------   --------   --------   -------- 
    Total revenues                  189,676    159,344    546,584    448,106
                                   --------   --------   --------   --------
Losses and expenses:
  Losses incurred, net               60,247     49,687    173,973    137,034
  Underwriting and other expenses    36,401     33,892    109,731    103,314
  Interest expense                      952        962      2,843      2,861
  Ceding commission                    (958)    (1,111)    (3,100)    (3,584)
                                   --------   --------   --------   -------- 
    Total losses and expenses        96,642     83,430    283,447    239,625
                                   --------   --------   --------   --------
Income before tax                    93,034     75,914    263,137    208,481
Provision for income tax             27,249     22,250     76,242     59,654
                                   --------   --------   --------   --------
Net income                         $ 65,785   $ 53,664   $186,895   $148,827
                                   ========   ========   ========   ========
Net income per share               $   1.11   $   0.90   $   3.14   $   2.51
                                   ========   ========   ========   ========
Weighted average common shares
  outstanding (shares in thousands)  59,497     59,343     59,464     59,249
                                   ========   ========   ========   ========
Dividends per share                $   0.04   $   0.04   $   0.12   $   0.12
                                   ========   ========   ========   ========



See accompanying notes to consolidated financial statements.


                                    PAGE 4                 

<PAGE>
                 MGIC INVESTMENT CORPORATION AND SUBSIDIARIES
                     CONSOLIDATED STATEMENT OF CASH FLOWS
                 Nine Months Ended September 30, 1996 and 1995
                                 (Unaudited)
                                                       Nine Months Ended
                                                         September 30,
                                                      ---------------------
                                                         1996        1995
                                                        ------      ------
                                                    (In thousands of dollars)
Cash flows from operating activities:
  Net income                                           $186,895    $148,827
  Adjustments to reconcile net income to net cash
    provided by operating activities:
      Amortization of deferred insurance policy
        acquisition costs                                23,332      25,978
      Increase in deferred insurance policy
        acquisition costs                               (18,832)    (21,660)
      Depreciation and amortization                       6,884       6,443
      Decrease in accrued investment income               2,292         393
      Decrease (increase) in reinsurance recoverable
        on loss reserves                                  4,374        (695)
      Decrease in reinsurance recoverable on unearned
        premiums                                          3,850       3,710
      Increase in loss reserves                         115,172      69,739
      Decrease in unearned premiums                     (30,442)    (27,328)
      Other                                              (3,508)     (2,636)
                                                       --------    --------    
Net cash provided by operating activities               290,017     202,771
                                                       --------    --------
Cash flows from investing activities:
  Purchase of fixed maturities:
    Available-for-sale securities                      (859,864)   (348,216)
    Held-to-maturity securities                               -     (26,987)
  Proceeds from sale or maturity of fixed maturities:
    Available-for-sale securities                       601,845      90,214
    Held-to-maturity securities                               -      19,653
                                                       --------    --------
Net cash used in investing activities                  (258,019)   (265,336)
                                                       --------    --------
Cash flows from financing activities:
  Dividends paid to shareholders                         (7,070)     (7,023)
  Principal repayments on mortgages payable                (283)       (265)
  Reissuance of treasury stock                           10,073       5,503
                                                       --------    --------
Net cash provided by (used in) financing activities       2,720      (1,785)
                                                       --------    --------
Net increase (decrease) in cash and short-term
 investments                                             34,718     (64,350)
Cash and short-term investments at beginning of year     90,264     167,289
                                                       --------    --------    
Cash and short-term investments at end of period       $124,982    $102,939
                                                       ========    ========


See accompanying notes to consolidated financial statements.


                                    PAGE 5

<PAGE>
                 MGIC INVESTMENT CORPORATION AND SUBSIDIARIES

                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                              September 30, 1996
                                 (Unaudited)


Note 1 - Basis of presentation

      The   accompanying   unaudited  consolidated   financial
statements of MGIC Investment Corporation (the "Company")  and
its wholly-owned subsidiaries have been prepared in accordance
with  the instructions to Form 10-Q and do not include all  of
the  other  information and disclosures required by  generally
accepted  accounting principles.  These statements  should  be
read in conjunction with the consolidated financial statements
and  notes  thereto  for  the year  ended  December  31,  1995
included in the Company's Annual Report on Form 10-K for  that
year.

     The  accompanying consolidated financial statements  have
not been audited by independent accountants in accordance with
generally  accepted auditing standards, but in the opinion  of
management  such financial statements include all adjustments,
consisting  only  of normal recurring accruals,  necessary  to
summarize fairly the Company's financial position and  results
of  operations.  The results of operations for the nine months
ended  September 30, 1996 may not be indicative of the results
that may be expected for the year ending December 31, 1996.

Note 2 - Contingencies

      The   Internal  Revenue  Service  ("IRS")  is  presently
examining the Company's income tax returns for 1991 and  1992.
The Company has received  proposed tax assessments relating to
1989  and  1990.  Management does not agree with  all  of  the
findings  of  the  IRS  and  has  appealed  the  proposed  tax
assessments.

     In  examinations through 1988, the IRS  had  proposed  to
delay  the  deduction for loss reserves on mortgage  loans  in
default   until  the  lender  takes  title  to  the  mortgaged
property. In August 1992, this issue was decided in  favor  of
another  private mortgage insurer by the Court of Appeals  for
the  federal circuit applicable to the Company.  However,  the
IRS  has  continued to pursue this position with other private
mortgage insurers in other circuits.

     Management believes that adequate provision has been made
in  the  financial statements for any amounts which may become
due with respect to the open years.

     The  Company is also involved in litigation in the normal
course  of  business.   In  the  opinion  of  management,  the
ultimate disposition of the pending litigation will not have a
material  adverse  effect  on the financial  position  of  the
Company.

                                    PAGE 6

<PAGE>
     In addition to the litigation referred to above, Mortgage
Guaranty  Insurance Corporation ("MGIC") is a defendant  in  a
lawsuit  commenced by a borrower  challenging the necessity of
maintaining   mortgage  insurance  in  certain  circumstances,
primarily  when  the loan-to-value ratio  is  below  80%.  The
lawsuit  purports  to  be brought on  behalf  of  a  class  of
borrowers.  This case appears to be based to some degree  upon
guidelines   issued   by  the  Federal  Home   Loan   Mortgage
Corporation  or  the Federal National Mortgage Association  to
their  respective mortgage servicers under which the  mortgage
servicers  may be required in certain circumstances to  cancel
borrower-purchased insurance upon the borrower's request.  The
plaintiff alleges that MGIC has a common law duty to inform  a
borrower  that  the  insurance  may  be  cancelled  in   these
circumstances. The relief sought  is equitable relief as  well
as  the  return  of  premiums paid  after  the  insurance  was
cancellable  under  the  applicable guidelines.   The  Company
believes that MGIC has a meritorious defense to this action in
that, in the absence of a specific statute (no statutory  duty
other than under a general consumer fraud statute is alleged),
there  appears to be no legal authority requiring  a  mortgage
insurer  to inform a borrower that insurance may be cancelled.
Summary judgment was granted to MGIC in another case involving
similar  issues.   Similar  cases are  pending  against  other
mortgage   insurers,  mortgage  lenders  and   mortgage   loan
servicers.

                                    PAGE 7

<PAGE>

I
TEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF
          FINANCIAL CONDITION AND RESULTS OF OPERATIONS


Results of Consolidated Operations

  Three Months Ended September 30, 1996 Compared With Three
  Months Ended September 30, 1995

     Net  income for the three months ended September 30, 1996
was  $65.8  million, compared to $53.7 million  for  the  same
period  of 1995, an increase of 23%. Net income per share  for
the  three months ended September 30, 1996 was $1.11  compared
to $0.90 in the same period last year, an increase of 23%.

     The amount of  new  primary insurance written by Mortgage
Guaranty  Insurance  Corporation  ("MGIC")  during  the  three
months ended September 30, 1996 was $8.6 billion, compared  to
$9.0  billion in the same period of 1995. Refinancing activity
accounted  for  10% of new primary insurance  written  in  the
third quarter of 1996, compared to 13% in the third quarter of
1995.

     New  insurance  written for the  third  quarter  of  1996
reflected  an  increase in the usage of  the  monthly  premium
product  to  90%  of new insurance written  from  86%  of  new
insurance  written in the third quarter of 1995. New insurance
written  for  adjustable-rate mortgages ("ARMS") increased  to
31% of new insurance written in the third quarter of 1996 from
25% of new insurance written in the same period of 1995.

     The  $8.6 billion of new primary insurance written during
the  third  quarter  of  1996  was  partially  offset  by  the
cancellation  of  $5.0  billion of  insurance  in  force,  and
resulted  in  a  net  increase  of  $3.6  billion  in  primary
insurance in force, compared to new primary insurance  written
of  $9.0 billion, the cancellation of $4.4 billion, and a  net
increase  of  $4.6 billion during the third quarter  of  1995.
Direct   primary  insurance  in force  was $128.6  billion  at
September 30, 1996 compared to $116.7 billion at September 30,
1995.

     Net premiums written were $158.5 million during the third
quarter  of 1996, compared to $127.7 million during the  third
quarter  of  1995, an increase of $30.8 million or  24%.   The
increase  includes premiums received from the WMAC transaction
(as  described under Liquidity and Capital Resources) as  well
as the growth in insurance in force.

     Net  premiums  earned were $156.8 million for  the  third
quarter  of  1996, compared to $130.6 million  for  the  third
quarter  of  1995,  an  increase of  $26.2  million,  or  20%,
primarily reflecting the growth of insurance in force.

                                    PAGE 8

<PAGE>
     Investment income for the third quarter of 1996 was $26.9
million,  an  increase of 21% over the $22.3  million  in  the
third quarter of 1995.  This increase was primarily the result
of  an  increase  in  the amortized cost of  average  invested
assets to $1,828.3 million for the third quarter of 1996  from
$1,485.0 million for the third quarter of 1995, an increase of
23%. The portfolio's average pre-tax investment yield was 5.9%
for  the  third quarter of 1996 compared to 6.0% in  the  same
period  of  1995. The portfolio's average after-tax investment
yield was 5.0% for the third quarter of 1996 compared to  5.2%
for the third quarter of 1995.

      Other   revenue,  primarily  contracts  with  government
agencies  for  premium reconciliation and claim administration
and  fee-based services for underwriting, was $5.4 million  in
the  third  quarter of 1996, compared to $6.3 million  in  the
same  period  of  1995. The decrease is  primarily  due  to  a
decrease in fees from contracts with government agencies.

     Net losses incurred increased to $60.2 million during the
third  quarter  of  1996 from $49.7 million during  the  third
quarter  of  1995,  an  increase of 21%.   Such  increase  was
primarily  a  result of higher reserve levels necessitated  by
increased notice of default activity on loans insured in  1994
and 1995, the continued growth and maturation of the insurance
in force and higher coverages for business written during 1995
and  1996.   The increase was partially offset by a redundancy
in  prior year loss reserves resulting from actual claim rates
and actual claim amounts being lower than those estimated   by
the  Company   when  originally establishing  the  reserve  at
December  31,  1995.  The Company expects  that,  in  general,
incurred  losses  will  continue  to  rise  as  a  result   of
increased delinquency activity primarily related to the higher
risk  profile  of  loans insured in 1994  and  1995,  and  the
continued  growth and maturing of its insurance  in  force  as
well  as  anticipated  higher severity resulting  from  higher
coverages  for  business  written  beginning  in   1995.    At
September  30,  1996,  58% of MGIC's insurance  in  force  was
written during the preceding eleven quarters, compared to  70%
at September 30, 1995.  The highest claim frequency years have
typically been the third through fifth year after the year  of
loan origination. However, the pattern of claims frequency for
refinance  loans may be different from the historical  pattern
of  other  loans.   A  substantial portion  of  the  insurance
written  in  1992  and  1993  represented  insurance  on   the
refinance of mortgage loans originated in earlier years.  (See
Safe Harbor Statement at the end of this document.)

     Underwriting  and other expenses increased  7%  to  $36.4
million in the third quarter of 1996 from $33.9 million in the
third quarter of 1995.  This increase was primarily due to  an
increase  in  expenses associated with the fee-based  services
for  underwriting and an increase in premium tax due to higher
premiums written.

    The consolidated insurance operations loss ratio was 38.4%
for  the third quarter of 1996 compared to 38.0% for the third
quarter   of  1995.   The  consolidated  insurance  operations
expense   and   combined   ratios  were   19.8%   and   58.2%,
respectively, for the third quarter of 1996 compared to  22.3%
and 60.3% for the third quarter of 1995.

                                    PAGE 9                       

<PAGE>
     The effective tax rate was 29.3% in the third quarter  of
1996  and  1995.  During both periods, the effective tax  rate
was  below the statutory rate of 35%, reflecting the  benefits
of tax-preferenced investment income.

  Nine Months Ended September 30, 1996 Compared With Nine
  Months Ended September 30, 1995

     Net  income for the nine months ended September 30,  1996
was  $186.9 million, compared to $148.8 million for  the  same
period  of 1995, an increase of 26%. Net income per share  for
the nine months ended September 30, 1996 was $3.14 compared to
$2.51 in the same period last year, an increase of 25%.

     The  amount  of  new  primary insurance written  by  MGIC
during  the  nine months ended September 30,  1996  was  $25.1
billion, compared to $22.1 billion in the same period of 1995.
Refinancing   activity  accounted  for  19%  of  new   primary
insurance  written in the first nine months of 1996,  compared
to 9% in the first nine months of 1995.

     New  insurance written for 1996 reflected an increase  in
the  usage  of  the  monthly premium product  to  90%  of  new
insurance  written from 82% of new insurance  written  in  the
first  nine  months of 1995. New insurance  written  for  ARMS
decreased  to 24% of new insurance written in the first  three
quarters of 1996 from 36% of new insurance written in the same
period  of  1995.   Also, mortgages with loan-to-value ("LTV")
ratios  in  excess  of  90%  but  not  more  than  95% ("95%")
decreased  to  41%  of new insurance written in the first nine
months of 1996  from 44%  of new insurance written in the same
period of 1995.

     Principally  as  a  result of  changes  in  the  coverage
requirements by the Federal National Mortgage Association  and
the  Federal  Home  Loan Mortgage Corporation,  new  insurance
written for mortgages with LTV ratios in excess of 80% but not
more  than  90%  and coverage of 25% was 39% of new  insurance
written  in the first nine months of 1996 compared to  31%  in
the  same  period of 1995. New insurance written for mortgages
with  LTV  ratios of 95% and coverage of 30% was  38%  of  new
insurance written in the first nine months of 1996 compared to
33% in the first nine months of 1995.

     The $25.1 billion of new primary insurance written during
the  first three quarters of 1996 was partially offset by  the
cancellation  of  $16.8  billion of insurance  in  force,  and
resulted  in  a  net  increase  of  $8.3  billion  in  primary
insurance in force, compared to new primary insurance  written
of  $22.1 billion, the cancellation of $9.8 billion, and a net
increase  of $12.3 billion during the first three quarters  of
1995.    Direct   primary   insurance   in  force  was  $128.6
billion  at  September 30, 1996 compared to $116.7 billion  at
September 30, 1995.

     Cancellation activity increased in the first nine  months
of  1996  from  the  first nine months  of  1995  due  to  the
increased refinancing activity which resulted in a decrease in
the  MGIC  persistency rate (percentage of insurance remaining
in  force from one year prior) to 81.7% at September 30,  1996
from 87.1% at September 30, 1995.

                                    PAGE 10

<PAGE>
     Net premiums written were $423.6 million during the first
nine  months  of 1996, compared to $343.8 million  during  the
first  nine  months of 1995, an increase of $79.8  million  or
23%.   The  increase includes premiums received from the  WMAC
transaction   (as  described  under  Liquidity   and   Capital
Resources) as well as the growth in insurance in force.

    Net premiums earned were $452.1 million for the first nine
months of 1996, compared to $367.4 million for the first  nine
months  of  1995,  an  increase  of  $84.7  million,  or  23%,
primarily reflecting the growth of insurance in force.

     Investment income for 1996 was $76.4 million, an increase
of  20%  over  the $63.8 million in the first nine  months  of
1995.   This increase was primarily the result of an  increase
in  the  amortized cost of average invested assets to $1,749.0
million  for  the  first  nine months of  1996  from  $1,428.0
million for the first nine months of 1995, an increase of 22%.
The  portfolio's average pre-tax investment yield was 5.8% for
the  first  nine months of 1996 compared to 6.0% in the  first
nine  months  of  1995.   The  portfolio's  average  after-tax
investment  yield was 5.1% for 1996 compared to 5.2%  for  the
first nine months of 1995.

      Other   revenue,  primarily  contracts  with  government
agencies  for premium reconciliation and claim administration,
and fee-based services for underwriting, was $17.1 million  in
the  first  nine months of 1996, compared to $16.8 million  in
the  same  period  of  1995.  Fees from underwriting  services
increased  $2.4  million, offset by a decrease  in  fees  from
contracts with government agencies of $2.2 million.

     Ceding commission for 1996 was $3.1 million, compared  to
$3.6 million for the first nine months of 1995, a decrease  of
14%. The decrease was primarily attributable to reductions  in
premiums ceded under quota share reinsurance agreements.

      Net  losses incurred increased to $174.0 million  during
the  first nine months of 1996 from $137.0 million during  the
first  nine months of 1995, an increase of 27%.  Such increase
was  primarily a result of higher reserve levels  necessitated
by  increased notice of default activity on loans  insured  in
1994  and  1995,  the continued growth and maturation  of  the
insurance  in force and higher coverages for business  written
during 1995 and 1996. The increase was partially offset  by  a
redundancy  in prior year loss reserves resulting from  actual
claim  rates and actual claim amounts being lower  than  those
estimated   by   the  Company  when  originally   establishing
the reserve at December 31, 1995. The Company expects that, in
general, incurred losses will continue to rise as a result  of
increased delinquency activity primarily related to the higher
risk  profile  on  loans insured in 1994  and  1995,  and  the
continued  growth and maturing of its insurance  in  force  as
well  as  anticipated  higher severity resulting  from  higher
coverages  for  business  written  beginning  in   1995.    At
September  30,  1996,  58% of MGIC's insurance  in  force  was
written during the preceding eleven quarters, compared to  70%
at September 30, 1995.  The highest claim frequency years have
typically been the third through fifth year after the year  of
loan  origination.  However, the pattern of  claims  frequency
for  refinance  loans  may be different  from  the  historical
pattern  of  other  loans.   A  substantial  portion  of   the
insurance  written in 1992 and 1993 represented  insurance  on
the  refinance of mortgage loans originated in earlier  years.
(See Safe Harbor Statement at the end of this document.)

                                    PAGE 11

<PAGE>
     Underwriting and other expenses increased  6%  to  $109.7
million  in the first nine months of 1996 from $103.3  million
in  the same period of 1995.  This increase was primarily  due
to  an  increase  in  expenses associated with  the  fee-based
services for  underwriting and  an increase in premium tax due 
to higher premiums written.

    The consolidated insurance operations loss ratio was 38.5%
for  the  first nine months of 1996 compared to 37.3% for  the
same  period  of  1995. The consolidated insurance  operations
expense   and   combined   ratios  were   22.4%   and   60.9%,
respectively,  for the first nine months of 1996  compared  to
26.0% and 63.3% for the first nine months of 1995.

     The effective tax rate was 29.0% in the first nine months
of 1996, compared to 28.6% in the same period of 1995.  During
both  periods, the effective tax rate was below the  statutory
rate  of  35%,  reflecting  the  benefits  of  tax-preferenced
investment  income.  The higher effective  tax  rate  in  1996
resulted  from a lower percentage of total income  before  tax
being generated from tax-preferenced investments in 1996.

Liquidity and Capital Resources

     The  Company's  consolidated  sources  of  funds  consist
primarily  of  premiums  written and investment  income.   The
Company   generated   positive  cash  flows   from   operating
activities  for the nine months ended September 30,  1996,  as
shown on the Consolidated Statement of Cash Flows.  Funds  are
applied primarily to the payment of claims and expenses.   The
Company's  business  does  not  require  significant   capital
expenditures  on an ongoing basis.  Positive  cash  flows  are
invested pending future payments of claims and other expenses;
cash flow shortfalls, if any, could be funded through sales of
short-term   investments   and  other   investment   portfolio
securities.   In  January 1997, the Company  is  obligated  to
repay mortgages payable of $35.4 million, which are secured by
the  home  office and substantially all of the  furniture  and
fixtures of the Company.

    In September 1996, MGIC signed an agreement with Wisconsin
Mortgage  Assurance Corporation ("WMAC") and a WMAC  reinsurer
to  assume  all  of the reinsurer's interest in WMAC  mortgage
insurance  writings, which had been previously ceded  to  that
reinsurer ("WMAC transaction").  WMAC wrote mortgage insurance
on   first   mortgages  collateralized  by  one-to-four-family
residences until February 28, 1985.

      Under   the  agreement,  MGIC  assumed  reinsurance   on
approximately  $4.2  billion  of  WMAC's  insurance  in  force
(representing  approximately $1.1 billion of  risk  in  force)
committed  to, or written, through February 28,  1985.   As  a
result, the amount of WMAC's insurance in force ceded to  MGIC
increased   to   approximately  $6.2   billion   (representing
approximately $1.6 billion of risk in force), with the portion
of WMAC's insurance in force reinsured by MGIC increasing from
approximately   21%  to  approximately   65%.    MGIC received
approximately  $40  million  as payment for its assumption  of
existing  loss  and  unearned  premium reserves related to the
insurance in force being assumed from WMAC.

                                    PAGE 12

<PAGE>
     Consolidated total investments were $1,934.7  million  at
September  30, 1996, compared to $1,687.2 million at  December
31,  1995, an increase of 15%.  This increase is due primarily
to  positive  cash flow from operations and approximately  $40
million  received  in  conjunction with the  WMAC  transaction
offset by a decrease of $44.4 million in unrealized gains. The
investment  portfolio includes unrealized gains on  securities
marked to market at September 30, 1996 and  December 31,  1995
of   $39.8  million  and $84.2 million, respectively.   As  of
September  30, 1996, the Company had $117.0 million of  short-
term  investments  with maturities of 90  days  or  less.   In
addition, at September 30, 1996, based on amortized cost,  the
Company's   total  investments,  which  were   virtually   all
comprised of fixed maturities, were approximately 98% invested
in   "A"  rated  and  above,  readily  marketable  securities,
concentrated in maturities of less than 15 years.

     Consolidated   loss  reserves  increased  31%  to  $486.2
million  at September 30, 1996 from $371.0 million at December
31,  1995,  reflecting the higher level of  defaults  for  the
reasons  described  above and the increase  in  loss  reserves
assumed  from the WMAC transaction.  Consistent with  industry
practices,  the Company does not establish loss  reserves  for
future  claims  on  insured loans which are not  currently  in
default.

     Consolidated  unearned premiums decreased  $30.5  million
from $251.2 million at December 31, 1995 to $220.7 million  at
September  30,  1996, primarily reflecting the continued  high
level of monthly premium policies written, for which there  is
no  unearned  premium.  Reinsurance recoverable  on   unearned
premiums    decreased   $3.9  million  to  $11.6  million   at
September  30, 1996 from $15.5 million at December  31,  1995,
primarily reflecting the reduction in unearned premiums.

     Consolidated shareholder's equity increased  to  $1,282.4
million  at  September  30,  1996, from  $1,121.4  million  at
December   31,  1995,  an  increase  of  14%.   This  increase
consisted  of  $186.9 million of net income during  the  first
nine  months of 1996 and $10.0 million from the reissuance  of
treasury  stock, offset by a decrease in net unrealized  gains
on  investments  of $28.8 million, net of tax,  and  dividends
declared of $7.1 million.

    MGIC is the principal insurance subsidiary of the Company.
MGIC's  risk-to-capital  was  18.6:1  at  September  30,  1996
compared to 19.1:1 at December 31, 1995.  The decrease was due
to  MGIC's increased policyholders' reserves, partially offset
by the additional risk in force of $3.5 billion resulting from
the  $11.2  billion addition to insurance  in  force,  net  of
reinsurance,  during the first nine months of 1996.   Part  of
the  increase in  risk in force and insurance in force was due
to the reinsurance assumed from the WMAC transaction described
above.

    The Company's combined insurance risk-to-capital ratio was
19.3:1  at September 30, 1996, compared to 19.9:1 at  December
31,  1995.   The  decrease  was due to  the  same  reasons  as
described above.

                                    PAGE 13

<PAGE>
SAFE HARBOR STATEMENT

The  following is a "Safe Harbor" Statement under the  Private
Securities  Litigation Reform Act of 1995,  which  applies  as
follows   to  all  statements  relating  to  incurred  losses,
delinquency  activity and claims frequency in this  Form  10-Q
that are not historical facts:

        Such statements that are not historical facts  are
    forward  looking  statements. Actual  future  incurred
    losses,  increased  delinquency  activity  and  claims
    frequency may differ materially from those expected or
    projected  in  the forward looking statements.   These
    forward   looking   statements   involve   risks   and
    uncertainties  that  the  incidence  and  severity  of
    losses,  delinquencies and claims may increase  beyond
    expectations  or  projections  for  various   reasons,
    including  but  not  limited  to,  the  following:   a
    reduction in the growth of borrower income, a  reduced
    level  of  borrower  creditworthiness,  and  increased
    unemployment;  higher  interest  rates   and   adverse
    economic  conditions; and a reduced level  of  housing
    price appreciation and a reduced ability of homeowners
    to sell homes to satisfy their mortgage obligations.

                                    PAGE 14

<PAGE>

P
ART II.  OTHER INFORMATION


ITEM 5.   OTHER INFORMATION

          For  a  discussion  of  certain litigation  brought  by
          borrowers  challenging  the  necessity  of  maintaining
          mortgage  insurance in certain circumstances,  see  the
          last  paragraph of Note 2 to the Consolidated Financial
          Statements (Unaudited) of the Company contained in Part
          I above.


ITEM 6.   EXHIBITS AND REPORTS ON FORM 8-K

          (a)  Exhibits   -   The  exhibits   listed   in   the
               accompanying Index to Exhibits are filed as part of
               this Form 10-Q.

          (b)  Reports on Form 8-K

               No  reports were filed on Form 8-K  during  the
               quarter ended September 30, 1996.

                                    PAGE 15

<PAGE>

                                   SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of
1934,  the registrant has duly caused this report to be signed
on its behalf by the undersigned thereunto duly authorized, on
November 11, 1996.



                                  MGIC INVESTMENT CORPORATION



                                  /s/ J. Michael Lauer
                                  -------------------------------           
                                  J. Michael Lauer
                                  Executive Vice President and
                                  Chief Financial Officer



                                  /s/ Patrick Sinks
                                  ------------------------------- 
                                  Patrick Sinks
                                  Vice  President, Controller and
                                  Chief Accounting Officer


                                    PAGE 16

<PAGE>

                               INDEX TO EXHIBITS
                                    (Item 6)

Exhibit
Number         Description of Exhibit
- -------        ----------------------
 11.1          Statement Re Computation of Net Income
               Per Share

 27            Financial Data Schedule


                                    PAGE 17

<PAGE>




                                                                EXHIBIT 11.1

                MGIC INVESTMENT CORPORATION AND SUBSIDIARIES
              STATEMENT RE COMPUTATION OF NET INCOME PER SHARE
       Three and Nine Month Periods Ended September 30, 1996 and 1995

                                   Three Months Ended    Nine Months Ended
                                      September 30,         September 30,
                                   ------------------    ------------------
                                     1996       1995       1996       1995
                                    -----      ------     ------     ------ 
                              (In thousands of dollars, except per share data)

PRIMARY NET INCOME PER SHARE

Adjusted shares outstanding:
  Average common shares outstanding  58,933     58,589     58,875     58,515
  Net shares to be issued upon
    exercise of dilutive stock
    options after applying treasury
    stock method                        564        754        589        734
                                   --------   --------   --------   --------  
  Adjusted shares outstanding        59,497     59,343     59,464     59,249
                                   ========   ========   ========   ========
Net income                         $ 65,785   $ 53,664   $186,895   $148,827
                                   ========   ========   ========   ========
Primary net income per share       $   1.11   $   0.90   $   3.14   $   2.51
                                   ========   ========   ========   ========

FULLY DILUTED NET INCOME PER SHARE

Adjusted shares outstanding:
  Average common shares outstanding  58,933     58,589     58,875     58,515
  Net shares to be issued upon
    exercise of dilutive stock
    options after applying treasury
    stock method                        589        782        628        824
                                   --------   --------   --------   -------- 
  Adjusted shares outstanding        59,522     59,371     59,503     59,339
                                   ========   ========   ========   ========
Net income                         $ 65,785   $ 53,664   $186,895   $148,827
                                   ========   ========   ========   ========
Fully diluted net income per share $   1.11   $   0.90   $   3.14   $   2.51
                                   ========   ========   ========   ======== 

<PAGE>





<TABLE> <S> <C>

       
<ARTICLE> 7
<LEGEND>
This schedule contains summary information extracted from Form 10-Q for the nine
months ended September 30, 1996 and is qualified in its entirety by reference to
such financial statements.
</LEGEND>
<MULTIPLIER> 1000

<S>                             <C>
<PERIOD-TYPE>                   9-MOS
<FISCAL-YEAR-END>                          DEC-31-1996
<PERIOD-END>                               SEP-30-1996
<DEBT-HELD-FOR-SALE>                           1813866
<DEBT-CARRYING-VALUE>                                0
<DEBT-MARKET-VALUE>                                  0
<EQUITIES>                                        3836
<MORTGAGE>                                           0
<REAL-ESTATE>                                        0
<TOTAL-INVEST>                                 1934735
<CASH>                                          124982
<RECOVER-REINSURE>                                   0
<DEFERRED-ACQUISITION>                           33456
<TOTAL-ASSETS>                                 2105564
<POLICY-LOSSES>                                 486204
<UNEARNED-PREMIUMS>                             220721
<POLICY-OTHER>                                       0
<POLICY-HOLDER-FUNDS>                                0
<NOTES-PAYABLE>                                  35516
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                         60555
<OTHER-SE>                                     1221894
<TOTAL-LIABILITY-AND-EQUITY>                   2105564
<PREMIUMS>                                      452146
<INVESTMENT-INCOME>                              76378
<INVESTMENT-GAINS>                                 979
<OTHER-INCOME>                                   17081
<BENEFITS>                                      173973
<UNDERWRITING-AMORTIZATION>                       4500
<UNDERWRITING-OTHER>                            105231
<INCOME-PRETAX>                                 263137
<INCOME-TAX>                                     76242
<INCOME-CONTINUING>                             186895
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                    186895
<EPS-PRIMARY>                                     3.14
<EPS-DILUTED>                                     3.14
<RESERVE-OPEN>                                       0
<PROVISION-CURRENT>                                  0
<PROVISION-PRIOR>                                    0
<PAYMENTS-CURRENT>                                   0
<PAYMENTS-PRIOR>                                     0
<RESERVE-CLOSE>                                      0
<CUMULATIVE-DEFICIENCY>                              0
        

<PAGE>

</TABLE>