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 MARCH 31, 1999
[ ] 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       4/30/99       109,073,404

                                    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
            March 31, 1999 (Unaudited) and December 31, 1998             3

          Consolidated Statement of Operations for the Three
            Months Ended March 31, 1999 and 1998 (Unaudited)             4

          Consolidated Statement of Cash Flows for the Three Months
            Ended March 31, 1999 and 1998 (Unaudited)                    5

          Notes to Consolidated Financial Statements (Unaudited)        6-8


Item 2.   Management's Discussion and Analysis of Financial
            Condition and Results of Operations                        9-18


Item 3.   Quantitative and Qualitative Disclosures About Market Risk    19


PART II.  OTHER INFORMATION


Item 6.   Exhibits and Reports on Form 8-K                              19

SIGNATURES                                                              20

INDEX TO EXHIBITS                                                       21

                                    PAGE 2

<PAGE>

PART I.  FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

                 MGIC INVESTMENT CORPORATION AND SUBSIDIARIES
                          CONSOLIDATED BALANCE SHEET
               March 31, 1999 (Unaudited) and December 31, 1998

                                                      March 31,   December 31,
                                                        1999          1998
                                                      ---------   ------------
ASSETS                                               (In thousands of dollars)
- ------
Investment portfolio:
  Securities, available-for-sale, at market value:
    Fixed maturities                                  $2,684,875   $2,602,870
    Equity securities                                      4,627        4,627
    Short-term investments                               175,215      172,209
                                                      ----------   ----------
      Total investment portfolio                       2,864,717    2,779,706

Cash                                                       6,660        4,650
Accrued investment income                                 38,216       41,477
Reinsurance recoverable on loss reserves                  43,342       45,527
Reinsurance recoverable on unearned premiums               7,701        8,756
Home office and equipment, net                            34,332       32,400
Deferred insurance policy acquisition costs               23,585       24,065
Investments in joint ventures                             90,156       75,246
Other assets                                              40,628       38,714
                                                      ----------   ----------
      Total assets                                    $3,149,337   $3,050,541
                                                      ==========   ==========  
 
LIABILITIES AND SHAREHOLDERS' EQUITY
- ------------------------------------
Liabilities:
  Loss reserves                                       $  690,308   $  681,274
  Unearned premiums                                      172,715      183,739
  Notes payable (note 2)                                 442,000      442,000

  Income taxes payable                                    61,000       31,032
  Other liabilities                                       61,622       71,905
                                                      ----------   ----------
      Total liabilities                                1,427,645    1,409,950
                                                      ----------   ----------
Contingencies (note 3)

Shareholders' equity:
  Common stock, $1 par value, shares authorized
    300,000,000; shares issued 121,110,800;
    shares outstanding, 3/31/99 - 109,020,911;
    1998 - 109,003,032                                   121,111      121,111
  Paid-in surplus                                        216,930      217,022
  Treasury stock (shares at cost, 3/31/99 - 12,089,889;
    1998 - 12,107,768)                                  (481,749)    (482,465)
  Accumulated other comprehensive income - unrealized
    appreciation in investments, net of tax               77,356       94,572
  Retained earnings                                    1,788,044    1,690,351
                                                      ----------   ----------
      Total shareholders' equity                       1,721,692    1,640,591
                                                      ----------   ----------
      Total liabilities and shareholders' equity      $3,149,337   $3,050,541
                                                      ==========   ==========

See accompanying notes to consolidated financial statements.

                                    PAGE 3

<PAGE> 
                 MGIC INVESTMENT CORPORATION AND SUBSIDIARIES
                     CONSOLIDATED STATEMENT OF OPERATIONS
                  Three Months Ended March 31, 1999 and 1998
                                  (Unaudited)

                                                     Three Months Ended
                                                          March 31,
                                                     ------------------  
                                                       1999       1998
                                                       ----       ----
                                                  (In thousands of dollars,
                                                    except per share data)
Revenues:
  Premiums written:
    Direct                                           $188,346   $177,797
    Assumed                                               438      1,969
    Ceded                                              (4,773)    (3,279)
                                                     --------   --------
  Net premiums written                                184,011    176,487
  Decrease in unearned premiums                         9,970     13,334
                                                     --------   --------        
  Net premiums earned                                 193,981    189,821
  Investment income, net of expenses                   36,915     34,389
  Realized investment gains, net                        2,141     10,295
  Other revenue                                        13,630      9,461
                                                     --------   --------
    Total revenues                                    246,667    243,966
                                                     --------   --------
Losses and expenses:
  Losses incurred, net                                 44,232     59,438
  Underwriting and other expenses                      53,233     45,158
  Interest expense                                      5,398      3,630
  Ceding commission                                      (361)      (337)
                                                     --------   --------
    Total losses and expenses                         102,502    107,889
                                                     --------   --------   
Income before tax                                     144,165    136,077
Provision for income tax                               43,747     42,030
                                                     --------   --------
Net income                                           $100,418   $ 94,047
                                                     ========   ========
Earnings per share (note 4):
   Basic                                             $   0.92   $   0.83
                                                     ========   ========  
   Diluted                                           $   0.91   $   0.81
                                                     ========   ========
Weighted average common shares
  outstanding - diluted (shares in
  thousands, note 4)                                  109,918    115,741
                                                     ========   ========
Dividends per share                                  $  0.025   $  0.025
                                                     ========   ========



See accompanying notes to consolidated financial statements.

                                    PAGE 4

<PAGE>
                 MGIC INVESTMENT CORPORATION AND SUBSIDIARIES
                     CONSOLIDATED STATEMENT OF CASH FLOWS
                  Three Months Ended March 31, 1999 and 1998
                                 (Unaudited)
                                                       Three Months Ended
                                                            March 31,
                                                       ------------------  
                                                         1999        1998
                                                         ----        ----
                                                    (In thousands of dollars)
Cash flows from operating activities:
  Net income                                          $ 100,418    $ 94,047
  Adjustments to reconcile net income to net cash
    provided by operating activities:
      Amortization of deferred insurance policy
        acquisition costs                                 1,962       4,564
      Increase in deferred insurance policy
        acquisition costs                                (1,482)     (3,619)
      Depreciation and amortization                       2,151       1,892
      Decrease in accrued investment income               3,261       1,478
      Decrease in reinsurance recoverable on loss
        reserves                                          2,185       1,653
      Decrease in reinsurance recoverable on unearned
        premiums                                          1,055       1,305
      Increase in loss reserves                           9,034      19,051
      Decrease in unearned premiums                     (11,024)    (14,639)
      Equity earnings in joint venture                   (3,050)     (1,920)
      Other                                              22,183      18,795
                                                       --------    --------
Net cash provided by operating activities               126,693     122,607
                                                       --------    --------
Cash flows from investing activities:
  Purchase of equity securities                               -      (3,886)
  Purchase of fixed maturities                         (397,698)   (242,572)
  Additional investment in joint venture                (11,860)          -
  Proceeds from sale of equity securities                     -     116,164
  Proceeds from sale or maturity of fixed maturities    290,312     105,191
                                                       --------    --------
Net cash used in investing activities                  (119,246)    (25,103)
                                                       --------    --------
Cash flows from financing activities:
  Dividends paid to shareholders                         (2,725)     (2,850)
  Net increase in notes payable                               -       5,000
  Reissuance of treasury stock                              294       9,339
  Repurchase of common stock                                  -           -
                                                       --------    --------   
Net cash (used in) provided by financing activities      (2,431)     11,489
                                                       --------    --------
Net increase in cash and short-term investments           5,016     108,993
Cash and short-term investments at beginning of period  176,859     119,626
                                                       --------    -------- 
Cash and short-term investments at end of period       $181,875    $228,619
                                                       ========    ======== 




See accompanying notes to consolidated financial statements.


                                    Page 5

<PAGE>
                               
                 MGIC INVESTMENT CORPORATION AND SUBSIDIARIES
                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                March 31, 1999
                                 (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,  1998
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  three
months  ended  March  31, 1999 may not be  indicative  of  the
results that may be expected for the year ending December  31,
1999.

Note 2 - Notes payable

     At  March 31, 1999, the Company's outstanding balance  of
the  notes payable on the 1997 and 1998 credit facilities were
$210   million   and   $232   million,   respectively,   which
approximated  market value.  The interest rate  on  the  notes
payable  varies  based  on LIBOR and at  March  31,  1999  and
December  31, 1998 the rate was 5.17% and 5.80%, respectively.
The  weighted average interest rate on the notes  payable  for
borrowings under the 1997 and 1998 credit agreements was 5.35%
per annum for the three months ended March 31, 1999.

     During  the  first quarter of 1999, the Company  utilized
three interest rate swaps each with a notional amount of  $100
million  to reduce and manage interest rate risk on a  portion
of  the variable rate debt under the credit facilities.   With
respect to all such transactions,  the notional amount of $100
million  represents the stated principal  balance  used  as  a
basis  for  calculating payments.  On the swaps,  the  Company
receives  a  floating  rate  based on  various  floating  rate
indices and pays fixed rates ranging from 3.32% to 4.68%.  Two
of  the  swaps renew monthly and one expires in October  2000.
Earnings  in  the  first  quarter of  1999  on  the  swaps  of
approximately $0.6 million are netted against interest expense
in the Consolidated Statement of Operations.

                                    PAGE 6

<PAGE>
Note 3 - Contingencies

     The  Company  is involved in litigation in  the  ordinary
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.

Note 4 - Earnings per share

    The Company's basic and diluted earnings per share ("EPS")
have been calculated in accordance with Statement of Financial
Accounting Standards No. 128, Earnings Per Share ("SFAS 128").
The  following  is  a  reconciliation of the  weighted-average
number of shares used for basic EPS and diluted EPS.

                                            Three Months Ended
                                                 March 31,
                                            ------------------
                                              1999      1998
                                              ----      ----
                                           (Shares in thousands)

Weighted-average shares - Basic EPS          109,003   113,989
Common stock equivalents                         915     1,752
                                             -------   -------
Weighted-average shares - Diluted EPS        109,918   115,741
                                             =======   =======

Note 5 - Comprehensive income

     The  Company's total comprehensive income, as  calculated
per  Statement  of  Financial Accounting  Standards  No.  130,
Reporting Comprehensive Income, was as follows:

                                            Three Months Ended
                                                  March 31,
                                            ------------------                  
                                              1999       1998
                                              ----       ---- 
                                         (In thousands of dollars)

Net income                                  $100,418   $ 94,047
Other comprehensive loss                     (17,216)   (10,792)
                                            --------   --------  
   Total comprehensive income               $ 83,202   $ 83,255
                                            ========   ========

     The difference between the Company's net income and total
comprehensive income for the three months ended March 31, 1999
and 1998 is due to  the change in unrealized  appreciation  on
investments, net of tax.

                                    PAGE 7

<PAGE>
Note 6 - New accounting standards

     In  June  1998, the Financial Accounting Standards  Board
issued  Statement of Financial Accounting Standards  No.  133,
Accounting  for Derivative Instruments and Hedging  Activities
("SFAS  133"), which will be effective for all fiscal quarters
of  all  fiscal  years  beginning after  June  15,  1999.  The
statement  establishes accounting and reporting standards  for
derivative    instruments   and   for   hedging    activities.
Management does not anticipate the adoption of SFAS  133  will
have  a  significant  effect  on  the  Company's  results   of
operations or its financial position due to its limited use of
derivative instruments.  (See note 2.)

                                    PAGE 8

<PAGE>

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


Results of Consolidated Operations

  Three Months Ended March 31, 1999 Compared With Three Months
  Ended March 31, 1998

     Net income for the three months ended March 31, 1999  was
$100.4  million, compared to $94.0 million for the same period
of 1998, an increase of 7%. Diluted earnings per share for the
three  months ended March 31, 1999 was $0.91 compared to $0.81
in  the  same  period  last  year, an  increase  of  12%.  The
percentage  increase  in  diluted  earnings  per   share   was
favorably affected by the lower adjusted shares outstanding at
March 31, 1999 as a result of common stock repurchased by  the
Company  during the second half of 1998.  See note  4  to  the
consolidated financial statements.

     The  amount of new primary insurance written by  Mortgage
Guaranty  Insurance  Corporation  ("MGIC")  during  the  three
months  ended  March 31, 1999 was $12.0 billion,  compared  to
$8.5  billion in the same period of 1998. Refinancing activity
accounted  for  40% of new primary insurance  written  in  the
first quarter of 1999, compared to 35% in the first quarter of
1998.

     The $12.0 billion of new primary insurance written during
the  first  quarter of 1999 was offset by the cancellation  of
$11.8  billion of insurance in force, and resulted  in  a  net
increase  of  $0.2  billion  in primary  insurance  in  force,
compared to new primary insurance written of $8.5 billion, the
cancellation  of  $8.7  billion, and a net  decrease  of  $0.2
billion in primary insurance in force during the first quarter
of  1998.    Direct   primary  insurance in force  was  $138.2
billion  at  March  31,  1999 compared to  $138.0  billion  at
December  31, 1998 and $138.3 billion at March 31,  1998.   In
addition  to providing direct primary insurance coverage,  the
Company  also insures pools of mortgage loans.  New pool  risk
written during the three months ended March 31, 1999 and March
31,  1998, which was virtually all agency pool insurance,  was
$197  million  and $144 million, respectively.  The  Company's
direct  pool risk in force at March 31, 1999 was $1.3  billion
compared  to $1.1 billion at December 31, 1998 and is expected
to  increase as a result of outstanding commitments  to  write
additional agency pool insurance.

     Cancellation activity has historically been  affected  by
the level of mortgage interest rates and  remained high during
the  first quarter of 1999 due to favorable mortgage  interest
rates  which  resulted in a decrease in the  MGIC  persistency
rate  (percentage of insurance  remaining  in force  from  one
year  prior)  to 65.8% at March 31, 1999 from 78.4%  at  March
31, 1998.  Future cancellation activity could also be affected
as  a  result of legislation that will go into effect in  July
1999 regarding cancellation of mortgage insurance.
                                    PAGE 9

<PAGE>
     Net premiums written were $184.0 million during the first
quarter  of 1999, compared to $176.5 million during the  first
quarter of 1998.  Net premiums earned were $194.0 million  for
the  first quarter of 1999 compared to $189.8 million for  the
same period in 1998. The increase was primarily a result of  a
higher percentage of  renewal premiums on mortgage loans  with
deeper coverages.

     Effective March 1, 1999, Fannie Mae changed its  mortgage
insurance   requirements  for  certain  fixed-rate   mortgages
approved by Fannie Mae's automated underwriting service.   The
changes permit lower coverage percentages on these loans  than
the deeper coverage percentages that went into effect in 1995.
In  March 1999, Freddie Mac announced that it was implementing
similar changes.  MGIC's premium rates vary with the depth  of
coverage.  While  lower coverage percentages result  in  lower
premium revenue, lower coverage percentages should also result
in lower incurred losses at the same level of claim incidence.
MGIC's  premium revenues could also be affected to the  extent
Fannie  Mae  and  Freddie  Mac are  compensated  for  assuming
default  risk that would otherwise be insured by  the  private
mortgage   insurance  industry.  These  Government   Sponsored
Enterprises (GSEs) introduced programs in 1998 and 1999  under
which  a  delivery  fee could be paid to them,  with  mortgage
insurance  coverage reduced below the coverage that  would  be
required in the absence of the delivery fee.

     In  March  1999, the Office of Federal Housing Enterprise
Oversight  ("OFHEO")  released a proposed  risk-based  capital
stress  test for the GSEs. One of the elements of the proposed
stress  test is that future claim payments made by  a  private
mortgage  insurer  on GSE loans are reduced below  the  amount
provided by the mortgage insurance policy to reflect the  risk
that  the  insurer will fail to pay.  Claim payments  from  an
insurer  whose  claims-paying  ability  rating  is  "AAA"  are
subject  to  a  10% reduction over the 10-year period  of  the
stress  test, while claim payments from a "AA" rated  insurer,
such  as MGIC, are subject to a 20% reduction.  The effect  of
the  differentiation among insurers is to require the GSEs  to
have  additional capital for coverage on loans provided  by  a
private  mortgage insurer whose claims-paying rating  is  less
than "AAA." As a result, there is an incentive for the GSEs to
use  private  mortgage insurance provided  by  a  "AAA"  rated
insurer.   The  Company does not believe  there  should  be  a
reduction  in  claim payments from private mortgage  insurance
nor should there be a distinction between "AAA" and "AA" rated
private  mortgage  insurers. The proposed stress  test  covers
many topics in addition to capital credit for private mortgage
insurance.  The stress test as a whole has been  controversial
in  the home mortgage finance industry and is not expected  to
become  final  for  some  time.  The  Company  cannot  predict
whether the portion of the stress test discussed above will be
adopted in its present form.

                                    PAGE 10

<PAGE>
     Mortgages (newly insured during the first quarter of 1999
or  in previous quarters) equal to approximately 31% of MGIC's
new  insurance written during the first quarter of 1999   were
subject   to   captive   mortgage  reinsurance   and   similar
arrangements compared to 19% during the same period  in  1998.
Such   arrangements entered into during a quarter  customarily
include  loans newly insured in a prior quarter. As a  result,
the percentages cited above would be lower if only the current
quarter's newly insured mortgages subject to such arrangements
were included. The percentage of new insurance written subject
to  captive  mortgage reinsurance arrangements is expected  to
increase during the remainder of 1999 as new transactions  are
consummated. At March 31, 1999 approximately 9% of MGIC's risk
in  force  was  subject  to  captive reinsurance  and  similar
arrangements  compared  to  7% at  December  31,  1998.  In  a
February  1999  circular letter, the New  York  Department  of
Insurance  said it was in the process of developing guidelines
that  would  articulate  the parameters  under  which  captive
mortgage  reinsurance is permissible under New York  insurance
law.

     Investment income for the first quarter of 1999 was $36.9
million, an increase of 7% over the $34.4 million in the first
quarter of 1998.  This increase was primarily the result of an
increase  in the amortized cost of average invested assets  to
$2.7  billion for the first quarter of 1999 from $2.4  billion
for  the  first  quarter  of 1998, an  increase  of  14%.  The
portfolio's average pre-tax investment yield was 5.5% for  the
first  quarter of 1999 and 5.8% for the same period  in  1998.
The  portfolio's average after-tax investment yield  was  4.7%
for the first quarter of 1999 and 4.9% for the same period  in
1998.   The Company realized gains of $2.1 million during  the
three months ended March 31, 1999 resulting primarily from the
sale  of fixed maturities compared to realized gains of  $10.3
million  during  the  same period in 1998 resulting  primarily
from the sale of equity securities.

     Other revenue was $13.6 million for the first quarter  of
1999,  compared with $9.5 million for the same period in 1998.
The  increase  is  primarily the  result  of  an  increase  in
contract  underwriting  revenue  and an  increase   in  equity
earnings    from    Credit-Based   Asset     Servicing     and
Securitization    LLC    and   Litton    Loan   Servicing   LP
(collectively,  "C-BASS"),  a  joint  venture   with   Enhance
Financial  Services Group Inc.  In accordance  with  generally
accepted accounting principles, C-BASS is required to mark  to
market  its  mortgage-related  assets  which,  including  open
trades,  were $619 million at March 31, 1999 and are  expected
to increase in the future.  Market valuation adjustments could
adversely impact  C-BASS's results of operations.

     Net losses incurred decreased 26% to $44.2 million during
the  first quarter of 1999 from $59.4 million during the first
quarter of 1998. Such decrease was primarily attributed  to  a
decline  in  losses paid, continued improvement in  California
and   generally  strong  economic  conditions  throughout  the
country. The primary notice inventory declined from 29,253  at
December 31, 1998 to 28,165 at March 31, 1999. The pool notice
inventory increased  from 6,524 at December 31, 1998 to  7,382
at March 31, 1999, attributable to defaults on new agency pool
insurance  written during 1997 and 1998.  At March  31,  1999,
64%  of  MGIC's  insurance in force  was  written  during  the
preceding  thirteen quarters, compared to  59%  at  March  31,
1998.  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.

                                    PAGE 11

<PAGE>
     Underwriting  and  other  expenses  increased   to  $53.2
million in the first quarter of 1999 from $45.2 million in the
first  quarter of 1998, an increase of 18%. This increase  was
primarily due to increases associated with contract and  field
office underwriting expenses.

     Interest  expense increased to $5.4 million in the  first
quarter  of 1999 from $3.6 million during the same  period  in
1998 due to higher outstanding notes payable, the proceeds  of
which were used to repurchase common stock.

     The  Company  utilized  financial derivative transactions
during  the first quarter of 1999 consisting of interest  rate
swaps  to  reduce and manage interest rate risk on  its  notes
payable.  During the first quarter of 1999, earnings  on  such
transactions  aggregated approximately $0.6 million  and  were
netted   against  interest  expense.  See  note   2   to   the
consolidated financial statements.

    The consolidated insurance operations loss ratio was 22.8%
for  the first quarter of 1999 compared to 31.3% for the first
quarter of 1998. The consolidated insurance operations expense
and  combined  ratios were 22.9% and 45.7%, respectively,  for
the  first quarter of 1999 compared to 19.9% and 51.2% for the
first quarter of 1998.

     The effective tax rate was 30.3% in the first quarter  of
1999,  compared to 30.9% in the first quarter of 1998.  During
both  periods, the effective tax rate was below the  statutory
rate  of  35%,  reflecting  the  benefits  of  tax-preferenced
investment  income.  The  lower effective  tax  rate  in  1999
resulted  from a higher percentage of total income before  tax
being generated from tax-preferenced investments.

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 of $126.7 million for the three months ended  March
31,  1999,  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.

     Consolidated total investments were $2.9 billion at March
31,  1999, compared to $2.8 billion at December 31,  1998,  an
increase  of  3%.  This increase is due primarily to  positive
cash  flow from operations.  The investment portfolio includes
unrealized gains on securities marked to market at  March  31,
1999  and  December  31,  1998 of $119.0  million  and  $145.5
million, respectively.  As of March 31, 1999, the Company  had
$175.2 million of short-term investments with maturities of 90
days  or  less.    In addition, at March 31,  1999,  based  on
amortized  cost, the Company's total investments,  which  were
primarily  comprised of fixed maturities,  were  approximately
99%  invested  in  "A"  rated  and above,  readily  marketable
securities, concentrated in maturities of less than 15 years.

                                    PAGE 12

<PAGE> 
     The Company's investments in C-BASS and Sherman Financial
Group  LLC  ("joint ventures") were $90.2 million in aggregate
at  March 31, 1999, which includes the Company's share of  the
joint  ventures'  earnings  since  their  inception.  MGIC  is
guaranteeing one half of a $50 million credit facility for  C-
BASS.   The  facility matures in July 1999. Sherman  Financial
Group LLC, a new joint venture with Enhance Financial Services
Group   Inc.,  is  engaged  in  the  business  of  purchasing,
servicing  and  securitizing  delinquent  unsecured   consumer
assets such as credit card loans, Chapter 13 bankruptcy  debt,
telecommunications  receivables,  student   loans   and   auto
deficiencies.  The  Company  expects  that  it  will   provide
additional funding to the joint ventures.

     Consolidated loss reserves increased slightly  to  $690.3
million at March 31, 1999 from $681.3 million at December  31,
1998  reflecting an increase in the estimated number of  loans
in  default.  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  $11.0  million
from $183.7 million at December 31, 1998 to $172.7 million  at
March  31, 1999, primarily reflecting the continued high level
of  monthly  premium policies written, for which there  is  no
unearned   premium.  Reinsurance  recoverable   on    unearned
premiums  decreased  $1.1 million to $7.7 million at March 31,
1999  from  $8.8  million  at  December  31,  1998,  primarily
reflecting the reduction in unearned premiums.

      Consolidated  shareholders'  equity  increased  to  $1.7
billion  at March 31, 1999, from $1.6 billion at December  31,
1998,  an  increase of 5%.  This increase consisted of  $100.4
million  of net income during the first three months  of  1999
and  $0.6 million from the reissuance of treasury stock offset
by  a decrease in net unrealized gains on investments of $17.2
million, net of tax, and dividends declared of $2.7 million.

    MGIC is the principal insurance subsidiary of the Company.
MGIC's  risk-to-capital ratio was 12.3:1  at  March  31,  1999
compared to 12.9:1 at December 31, 1998.  The decrease was due
to  MGIC's increased policyholders' reserves, partially offset
by  the net additional risk in force of $139.0 million, net of
reinsurance, during the first three months of 1999.

      The   Company's   combined   insurance   risk-to-capital
ratio  was  13.1:1 at March 31, 1999, compared  to  13.6:1  at
December  31, 1998.  The decrease was due to the same  reasons
as described above.

     The  risk-to-capital  ratios set forth  above  have  been
computed  on a statutory basis. However, the methodology  used
by the rating agencies to assign claims-paying ability ratings
permits less leverage than under statutory requirements.  As a
result,   the  amount  of  capital  required  under  statutory
regulations may be lower than the capital required for  rating
agency  purposes.  In addition to capital adequacy, the rating
agencies  consider  other factors in  determining  a  mortgage
insurer's  claims-paying  rating,  including  its  competitive
position,  business  outlook, management, corporate  strategy,
and historical and projected operating performance.

     For certain material risks of the Company's business, see
"Risk Factors" below.

                                    PAGE 13

<PAGE> 
Risk Factors

    The Company and its business may be materially affected by
the  factors  discussed below.  These factors may  also  cause
actual   results  to  differ  materially  from   the   results
contemplated  by forward looking statements that  the  Company
may make.

    Reductions in the volume of low down payment home mortgage 
originations  may  adversely  affect  the  amount  of  private
mortgage  insurance (PMI) written by the  PMI  industry.   The
factors  that  affect the volume of low down payment  mortgage
originations include:

     -  the level of home mortgage interest rates,

     -  the health of the domestic economy as well as
        conditions in regional and local economies,-housing
        affordability,-population trends, including the rate of
        household formation,
      
     -  the rate of home price appreciation, which in times of
        heavy refinancing affects whether refinance loans have
        loan-to-value ratios that require PMI, and
      
     -  government housing policy encouraging loans to first-
        time homebuyers.

     By  selecting alternatives to PMI, lenders and  investors
may  adversely  affect the amount of PMI written  by  the  PMI
industry.  These alternatives include:
   
     -  government mortgage insurance programs, including
        those of the Federal Housing Administration and the
        Veterans Administration,
      
     -  holding mortgages in portfolio and self-insuring,
      
     -  use of credit enhancements by investors, including
        Fannie Mae and Freddie Mac, other than PMI or using
        other credit enhancements in conjunction with reduced
        levels of PMI coverage, and
      
     -  mortgage originations structured to avoid PMI, such as
        a first mortgage with an 80% loan-to-value ratio and a
        second mortgage with a 10% loan-to-value ratio (referred
        to as an 80-10-10 loan) rather than a first mortgage
        with a 90% loan-to-value ratio.
   
                                    PAGE 14

<PAGE>  
     Fannie Mae and Freddie Mac have a material impact on  the
PMI  industry.  Because Fannie Mae and  Freddie  Mac  are  the
largest purchasers of low down payment conventional mortgages,
the  business practices of these GSEs have a direct effect  on
private mortgage insurers.  These practices affect the  entire
relationship  between  the  GSEs  and  mortgage  insurers  and
include:

     -  the level of PMI coverage, subject to the limitations
        of the GSE's charters when PMI is used as the required
        credit enhancement on low down payment mortgages,
      
     -  whether the mortgage lender or the GSE chooses the
        mortgage insurer providing coverage,
      
     -  whether a GSE will give mortgage lenders an incentive
        to select a mortgage insurer which has a "AAA" claims-
        paying ability rating to benefit from the lower capital
        required of the GSE under OFHEO's proposed stress test
        when a mortgage is insured by a "AAA" company,

     -  the underwriting standards that determine what loans
        are eligible for purchase by the GSEs, which thereby
        affect the quality of the risk insured by the mortgage
        insurer, as well as the availability of mortgage loans,
      
     -  the terms on which mortgage insurance coverage can be
        canceled before reaching the cancellation thresholds
        established by law, and
      
     -  the circumstances in which mortgage servicers must
        perform activities intended to avoid or mitigate loss on
        insured mortgages that are delinquent.

     The  Company expects the level of competition within  the
PMI  industry to remain intense. Competition for PMI  premiums
occurs   not   only  among  private  mortgage   insurers   but
increasingly  with mortgage lenders through  captive  mortgage
reinsurance   transactions  in  which  a  lender's   affiliate
reinsures  a  portion of the insurance written  by  a  private
mortgage  insurer on mortgages originated by the  lender.  The
level  of  competition  within  the  PMI  industry  has   also
increased  as  many large mortgage lenders  have  reduced  the
number of private mortgage insurers with whom they do business
at  the same time as consolidation among mortgage lenders  has
increased  the  share of the mortgage lending market  held  by
large lenders.

                                    PAGE 15

<PAGE>
     Changes  in interest rates, house prices and cancellation
policies  may  materially affect persistency.  In  each  year,
most  of  MGIC's  premiums are from insurance  that  has  been
written  in  prior  years.  As a result, the  length  of  time
insurance  remains  in  force is an important  determinant  of
revenues.   The factors affecting persistency of the insurance
in force include:

     -  the level of current mortgage interest rates compared
        to the mortgage coupon rates on the insurance in force,
        which affects the vulnerability of the insurance in
        force to refinancings, and
      
     -  mortgage insurance cancellation policies of mortgage
        investors along with the rate of home price appreciation
        experienced by the homes underlying the mortgages in the
        insurance in force.

     The  strong economic climate that has existed  throughout
the  United States for some time has favorably impacted losses
and  encouraged  competition to assume  default  risk.  Losses
result  from events that adversely affect a borrower's ability
to  continue  to make mortgage payments, such as unemployment,
and  whether  the  home  of a borrower  who  defaults  on  his
mortgage  can  be  sold for an amount that will  cover  unpaid
principal   and  interest  and  the  expenses  of  the   sale.
Favorable  economic conditions generally reduce the likelihood
that  borrowers  will  lack sufficient  income  to  pay  their
mortgages  and  also  favorably affect  the  value  of  homes,
thereby  reducing  and in some cases even eliminating  a  loss
from  a  mortgage  default.   A significant  deterioration  in
economic conditions would adversely affect MGIC's losses.  The
low level of losses that has recently prevailed in the private
mortgage  insurance  industry has  encouraged  competition  to
assume  default risk through captive reinsurance arrangements,
self-insurance, 80-10-10 loans and other means.

    Litigation against mortgage lenders and settlement service
providers  has  been increasing.  In recent  years,  consumers
have  brought  a  growing  number  of  lawsuits  against  home
mortgage  lenders  and  settlement service  providers  seeking
monetary  damages.  The Real Estate Settlement Procedures  Act
gives  home  mortgage borrowers the right  to  bring  lawsuits
seeking  damages of three times the amount of the charge  paid
for  a settlement service involved in a violation of this law.
Under rules adopted by the United States Department of Housing
and  Urban  Development,  "settlement services"  are  services
provided  in  connection with settlement of a  mortgage  loan,
including services involving mortgage insurance.

                                    PAGE 16

<PAGE>        
     The  pace  of  change  in the home mortgage  lending  and
mortgage  insurance  industries will likely  accelerate.   The
Company  expects  the  processes  involved  in  home  mortgage
lending  will  continue  to  evolve  through  greater  use  of
technology.   This evolution could effect fundamental  changes
in  the  way home mortgages are distributed. Lenders  who  are
regulated   depositary  institutions   could   gain   expanded
insurance  powers if financial modernization proposals  become
law.  The capital markets are beginning to emerge as providers
of   insurance  in  competition  with  traditional   insurance
companies.   These  trends and others increase  the  level  of
uncertainty  attendant  to  the  PMI  business,  demand  rapid
response to change and place a premium on innovation.

Year 2000  Compliance

    Almost all of the Company's information technology systems
("IT  Systems"), including all of its "business  critical"  IT
Systems, either have been originally developed to be Year 2000
compliant  or  have been reprogrammed.  The Company  plans  to
reprogram  the remaining IT Systems (the "Remaining  Systems")
and  to  complete internal testing of all IT Systems for  Year
2000 compliance by the end of the second quarter of 1999.   In
general, the Remaining Systems have either been developed  and
maintained  by the Company's Information Technology Department
or  use  off-the-shelf software from national software vendors
such  as  Microsoft and IBM who have publicly  announced  that
their  software is Year 2000 compliant.  All of the IT Systems
developed   and  maintained  by  the  Information   Technology
Department have already been internally tested for  Year  2000
compliance  and  all  IT Systems using off-the-shelf  software
have been assessed.  If the Company is unable to complete  any
required  reprogramming of the Remaining Systems on  a  timely
basis,  the  efficiency of certain of the  Company's  business
processes  will  likely decline but this  consequence  is  not
expected to be material to the Company.

     Some  of  the  Company's "business critical"  IT  Systems
interface  with  computer  systems  of  third  parties.    The
Company,  Fannie  Mae, Freddie Mac and  many  of  these  third
parties  are participating in the Mortgage Bankers Association
Year  2000 Readiness Test (the "MBA Test").  The MBA  Test  is
designed  to  help  mortgage  industry  participants  evaluate
interaction  of  their  computer  systems  in  a   Year   2000
environment.  The MBA has scheduled compliance  testing  among
participants through the second quarter of 1999.  Through  the
MBA  Test  and  additional independent  testing  efforts,  the
Company  plans to complete the Year 2000 readiness  evaluation
of  its automated interfaces with customers representing  more
than 90% of the Company's in-force policies by the end of  the
second quarter of 1999.

     All costs incurred through March 1999 for IT Systems  for
Year  2000  compliance have been expensed and were immaterial.
The  costs  of  the remaining reprogramming  and  testing  are
expected to be immaterial.

                                    PAGE 17

<PAGE>
     Telecommunications services and electricity are essential
to  the  Company's ability to conduct business.  The Company's
long-distance voice and data telecommunications suppliers  and
the  local  telephone  company  serving  the  Company's  owned
headquarters  and  warehouse facilities have  written  to  the
Company  to the effect that their respective systems  will  be
Year  2000  compliant.   The electric  company  serving  these
facilities has given the Company assurance that it  will  also
be  Year  2000 compliant.  In addition, the Company  has  made
arrangements  to  acquire back-up power for its  headquarters.
The Company has received written assurance regarding Year 2000
compliance   from  landlords  of  the  Company's  underwriting
service centers and local telephone companies.

     The  Company has long practiced contingency  planning  to
address  business  disruption risks  and  has  procedures  for
planning  and  executing contingency measures to  provide  for
business  continuity  in the event of  any  circumstance  that
results in disruption to the Company's headquarters, warehouse
facilities  and leased workplace environments, including  lack
of  utility services, transportation disruptions, and  service
provider failures.  The Company has developed additional plans
for the "special case" of business disruption due to Year 2000
compliance issues.  These plans address continuity measures in
five   areas:    physical   building  environment,   including
conducting   operations  at  off-site   facilities;   business
operations  units, as discussed below; external  factors  over
which  the  Company  does not have control but  can  implement
measures to minimize adverse impact on the Company's business;
application  system restoration priorities for  the  Company's
computer  systems;  and  contingencies  specifically  targeted
towards  monitoring Company facilities and systems at year-end
1999.

     The  business  unit recovery plans address resumption  of
business  in  the  worst case scenario of a total  loss  to  a
Company   facility,   including  the  inability   to   utilize
computerized systems.

     In view of the timing and scope of the MBA Test and other
testing, the Company's contingency planning does not currently
include  developing special procedures with  individual  third
parties  if  they are not themselves Year 2000 compliant.   If
the  Company is unable to do business with such third  parties
electronically, it would seek to do business with  them  on  a
paper  basis.   Without knowing the identity of  non-compliant
third parties and the amount of transactions occurring between
the  Company and them, the Company cannot evaluate the effects
on  its  business  if  it were necessary to  substitute  paper
business processes for electronic business processes with such
third  parties.  Among other effects, Year 2000 non-compliance
by  such third parties could delay receipt of renewal premiums
by  the  Company or the reporting to the Company  of  mortgage
loan  delinquencies and could also affect the  amount  of  the
Company's new insurance written.

                                    PAGE 18

<PAGE> 

I
TEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
        RISK

    At March 31, 1999, the Company had no derivative financial
instruments  in its investment portfolio.  The Company  places
its  investments in instruments that meet high credit  quality
standards,  as  specified in the Company's  investment  policy
guidelines;  the  policy  also limits  the  amount  of  credit
exposure to any one issue, issuer and type of instrument.   At
March  31,  1999,  the  effective duration  of  the  Company's
investment  portfolio  was 5.7 years.   The  effect  of  a  1%
increase/decrease in market interest rates would result  in  a
5.7%   decrease/increase  in  the  value  of   the   Company's
investment portfolio.

     The Company's borrowings under the credit facilities  are
subject  to  interest  rates that are  variable.   Changes  in
market interest rates would have minimal impact on the   value
of  the  notes  payable.   See  note  2  to  the  consolidated
financial statements.


PART II.  OTHER INFORMATION


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 March 31,  1999.

                                    PAGE 19                              

<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
May 13, 1999.






                                  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 20

<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 21

<PAGE>



 
                                                                 EXHIBIT 11.1

                MGIC INVESTMENT CORPORATION AND SUBSIDIARIES
              STATEMENT RE COMPUTATION OF NET INCOME PER SHARE
                 Three Months Ended March 31, 1999 and 1998

                                                     Three Months Ended
                                                          March 31,
                                                     ------------------
                                                       1999        1998
                                                       ----        ----
                                                   (In thousands of dollars,
                                                     except per share data)
BASIC EARNINGS PER SHARE

Average common shares outstanding                     109,003     113,989
                                                     ========    ========
Net income                                           $100,418    $ 94,047
                                                     ========    ========
Basic earnings per share                             $   0.92    $   0.83
                                                     ========    ========

DILUTED EARNINGS PER SHARE

Adjusted shares outstanding:
  Average common shares outstanding                   109,003    113,989
  Net shares to be issued upon exercise of
    dilutive stock options after applying
    treasury stock method                                 915      1,752
                                                     --------   -------- 
  Adjusted shares outstanding                         109,918    115,741
                                                     ========   ========

Net income                                           $100,418   $ 94,047
                                                     ========   ========

Diluted earnings per share                           $   0.91   $   0.81
                                                     ========   ========

<PAGE>





<TABLE> <S> <C>

<ARTICLE> 7
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY INFORMATION EXTRACTED FROM FORM 10-Q FOR THE
THREE MONTHS ENDED MARCH 31, 1999 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          DEC-31-1999
<PERIOD-END>                               MAR-31-1999
<DEBT-HELD-FOR-SALE>                         2,684,875
<DEBT-CARRYING-VALUE>                                0
<DEBT-MARKET-VALUE>                                  0
<EQUITIES>                                       4,627
<MORTGAGE>                                           0
<REAL-ESTATE>                                        0
<TOTAL-INVEST>                               2,864,717
<CASH>                                         181,875
<RECOVER-REINSURE>                                   0
<DEFERRED-ACQUISITION>                          23,585
<TOTAL-ASSETS>                               3,149,337
<POLICY-LOSSES>                                690,308
<UNEARNED-PREMIUMS>                            172,715
<POLICY-OTHER>                                       0
<POLICY-HOLDER-FUNDS>                                0
<NOTES-PAYABLE>                                442,000
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                       121,111
<OTHER-SE>                                   1,600,581
<TOTAL-LIABILITY-AND-EQUITY>                 3,149,337
<PREMIUMS>                                     193,981
<INVESTMENT-INCOME>                             36,915
<INVESTMENT-GAINS>                               2,141
<OTHER-INCOME>                                  13,630
<BENEFITS>                                      44,232
<UNDERWRITING-AMORTIZATION>                        480
<UNDERWRITING-OTHER>                            52,753
<INCOME-PRETAX>                                144,165
<INCOME-TAX>                                    43,747
<INCOME-CONTINUING>                            100,418
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                   100,418
<EPS-PRIMARY>                                      .92
<EPS-DILUTED>                                      .91
<RESERVE-OPEN>                                       0
<PROVISION-CURRENT>                                  0
<PROVISION-PRIOR>                                    0
<PAYMENTS-CURRENT>                                   0
<PAYMENTS-PRIOR>                                     0
<RESERVE-CLOSE>                                      0
<CUMULATIVE-DEFICIENCY>                              0
        

<PAGE>

</TABLE>