MGIC rises to a 4Q profit of $1.4M
Reaches positive net income after reporting a steep loss one year ago
Mortgage insurer MGIC Investment Corp. (MTG) recorded a fourth-quarter 2013 profit of $1.4 million, or zero cents per share, compared to a net loss of $386.7 million, or $1.91 per share, a year ago.
For the entire year, the company recorded a net loss of $49.8 million, which is significantly improved from a loss of $927.1 million in 4Q of 2012.
The company’s CEO Curt Culver attributed MGIC's move back to profitability to the firm's improving capital position, a 24% increase in new insurance written, a 20% decline in new delinquency notices and an inventory reduction of 26%. Paid claims fell by 28%.
"I remain encouraged by the trends in home prices and employment that we have benefited from over the last several quarters and I am optimistic about the prospects for the mortgage insurance industry in 2014 and beyond," he noted in MGIC's 4Q earnings.
MGIC wrote $6.7 billion in new insurance in the fourth quarter, down from $7 billion a year earlier.