MGIC Investment Corporation (NYSE: MTG) Stock in List of Earrings Radar

MGIC Investment Corporation (NYSE: MTG) has market worth of 4.05B along 375.68M outstanding shares. The stock moved -0.65% to $10.77 in recent session. The recent traded volume was 5212335 shares. The stock had closed at $10.84 on the previous day. The stock has recorded a weekly performance of -0.83% and monthly performance is -13.08%. Shares have moved -28.77% over the last quarter and changed -16.58% over the recent six months. The shares registered yearly performance at -1.01% and YTD move seen at -23.67%”

MGIC Investment Corporation (NYSE: MTG) today declared operating and financial results for the first quarter of 2018. Net income for the quarter was $143.6 million, or $0.38 per diluted share, compared with net income of $89.8 million, or $0.24 per diluted share for the first quarter of 2017.

Adjusted net operating income for the first quarter 2018 was $144.6 million, or $0.38 per diluted share, compared with $117.1 million, or $0.31 per diluted share for the first quarter of 2017. We present the non-GAAP financial measure “Adjusted net operating income” to increase the comparability between periods of our financial results. See “Use of Non-GAAP financial measures” below.

Patrick Sinks, CEO of MTG and Mortgage Guaranty Insurance Corporation (“MGIC”), said, “We continue to benefit from the current conditions of the employment and housing markets, favorable demographics that are helping fuel the purchase mortgage market, and a higher interest rate environment.” Sinks also said, ” While the operating environment continues to be very dynamic, we saw our insurance in force and investment income increase, and the primary delinquent inventory continue to decline.  Finally, in the quarter the holding company received a $50 million dividend from MGIC.”

Revenues

Total revenues for the first quarter of 2018 were $265.8 million, compared to $260.9 million in the first quarter last year. Net premiums written for the quarter were $236.9 million, compared to $236.7 million for the same period last year. Net premiums earned for the quarter were $232.1 million, compared to $229.1 million for the same period last year as a result of an increase in insurance in force offset by a lower effective premium yield. Investment income for the first quarter was $32.1 million, compared to $29.5 million for the same period last year.

Total revenues for the first quarter of 2018 were $265.8 million, compared to $260.9 million in the first quarter last year. Net premiums written for the quarter were $236.9 million, compared to $236.7 million for the same period last year. Net premiums earned for the quarter were $232.1 million, compared to $229.1 million for the same period last year as a result of an increase in insurance in force offset by a lower effective premium yield. Investment income for the first quarter was $32.1 million, compared to $29.5 million for the same period last year.

Losses and expenses

Losses incurred

Losses incurred in the first quarter of 2018 were $23.9 million, compared to $27.6 million in the first quarter of 2017. During the first quarter of 2018 there was a $31 million reduction in losses incurred due to positive development on our primary loss reserves for previously received delinquencies, compared to a reduction of $49 million in the first quarter of 2017. Losses incurred in the quarter associated with delinquent notices received in the quarter reflect fewer delinquent new notices received and a lower claim rate when compared to the same quarter last year, including on notices in hurricane impacted areas as we do not expect a material increase in claims from these notices.

Underwriting and other expenses

Net underwriting and other expenses were $48.7 million in the first quarter of 2018, compared to $43.0 million in the same period last year. The increase in expenses was primarily due to higher stock based compensation, which resulted from a higher stock price at the grant date, non-executive compensation and employee benefit plans. Interest expense was $13.2 million in the first quarter of 2018, compared to $16.3 million in the same period last year. The decrease was a result of the retirement of the 5% Senior Notes and conversion of the 2% Convertible Senior Notes.

Provision for income taxes

The effective income tax rate was 20.2% in the first quarter of 2018, compared to 32.7% in the first quarter of 2017, excluding the $27.2 million tax provision that was recorded in the first quarter of 2017 for the anticipated settlement of our IRS litigation. The decrease reflects the reduction to the statutory income tax rate.

Capital

As of March 31, 2018, total shareholders’ equity was $3.23 billion and outstanding principal on borrowings was $837 million.

MGIC paid a dividend of $50 million to our holding company during the first quarter of 2018.

Preliminary Consolidated Risk-to-Capital was 10.3:1 as of March 31, 2018, compared to 11.6:1 as of March 31, 2017.

MGIC’s PMIERs Available Assets totaled $4.8 billion, or $0.9 billion above its Minimum Required Assets as of March 31, 2018.

Other Balance Sheet and Liquidity Metrics

Total assets were $5.62 billion as of March 31, 2018, compared to $5.62 billion as of December 31, 2017, and $5.90 billion as of March 31, 2017.

The fair value of our investment portfolio, cash and cash equivalents was $5.1 billion as of March 31, 2018 compared to $5.1 billion as of December 31, 2017, and $5.1 billion as of March 31, 2017.

Investments, cash and cash equivalents at the holding company were $257 million as of March 31, 2018 compared to $216 million as of December 31, 2017, and $451 million as of March 31, 2017.

In terms of profitability, MGIC Investment Corporation has an operating margin of 78.90% and a net profit margin of 33.40%. Return on assets come to 6.20% and return on investment coming to 13.70% while Return on equity come to 11.90%.  The stock made income 488.80M on sales of 1.07B. Shares have moved -33.56% from its 1 Year high price and changed 6.95% from its 1 Year low price. The shares registered RSI (14) at 28.74 and ATR factor was seen at 0.52.

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