MGIC Investment (MTG) Tops Q2 EPS by 5c

MGIC Investment (NYSE: MTG) reported Q2 EPS of $0.28, $0.05 better than the analyst estimate of $0.23.

Patrick Sinks, CEO of MTG and Mortgage Guaranty Insurance Corporation (“MGIC”), said, “I am pleased to report that in the second quarter of 2015 the company continued to grow our insurance in force by adding another $11.8 billion of high quality new insurance.” Sinks added, “At the same time, I am encouraged by the positive trends we continue to experience on pre-2009 business relative to new delinquent notices, paid claims, and the declining delinquent inventory. The combination of profitable new business, the continued runoff of the older books, and a strengthened housing market, positions us well to provide credit enhancement solutions to our customers now and in the future.”

Outlook

For the full year of 2015 MGIC expects that new insurance written will exceed the level written in 2014, however, the year over year percentage increase, as measured on a quarterly basis, is expected to be lower in the second half of 2015 when compared to the first half of 2015. For the full year annual persistency is forecasted to be 80-85%. The number of loans in the delinquent inventory is expected to continue to decline modestly and the claim rate applied to new delinquent notices is expected to gradually decrease throughout the balance of the year. The underwriting expense ratio is expected to stay relatively stable for the second half of 2015. MGIC expects that it will be in compliance with PMIERS when they become effective at December 31, 2015.

For earnings history and earnings-related data on MGIC Investment (MTG) click here.

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