Lattice QCD with background magnetic fields is used to calculate the magnetic moments and magnetic polarizabilities of the nucleons and of light nuclei with A ≤ 4, along with the cross-section for the M 1 transition np → dγ, at the flavor SU(3)-symmetric point where the pion mass is mπ ∼ 806 MeV. These magnetic properties are extracted from nucleon and nuclear energies in six uniform magnetic fields of varying strengths. The magnetic moments are presented in a recent Letter [1]. For the charged states, the extraction of the polarizability requires careful treatment of Landau levels, which enter non-trivially in the method that is employed. The nucleon polarizabilities are found to be of similar magnitude to their physical values, with βp = 5.22 Mixing between the jz = 0 deuteron state and the spin-singlet np state induced by the background magnetic field is used to extract the short-distance two-nucleon counterterm,L1, of the pionless effective theory for N N systems (equivalent to the meson-exchange current contribution in nuclear potential models), that dictates the cross-section for the np → dγ process near threshold. Combined with previous determinations of NN scattering parameters, this enables an ab initio determination of the threshold cross-section at these unphysical masses.