MGIC Investment Corp. (MTG) today reported net income for the quarter ended March 31, 2015, of $133.1 million, compared with a net income of $60 million for the same quarter a year ago.
Diluted net income per share was $0.32 for the quarter ending March 31, 2015, compared to diluted net income per share of $0.15 for the same quarter a year ago.
"I am pleased to report that in the first quarter of 2015 the company continued to generate high quality new insurance which contributed to an increase in insurance in force,” said Patrick Sinks, CEO of MTG and Mortgage Guaranty Insurance Corp. "I am encouraged by the positive trends we continue to experience relative to new delinquent notices, paid claims, and the delinquent inventory."
Total revenues for the first quarter were $270.2 million, compared with $235.1 million in the first quarter last year. Net premiums written for the quarter were $234.5 million, compared with $218 million for the same period last year.
Total revenues in the first quarter of 2015 include $26.3 million of net realized gains compared to $0.2 million of net realized losses for the same period last year.
New insurance written in the first quarter was $9 billion, compared to $5.2 billion in the first quarter of 2014.
Persistency, or the percentage of insurance remaining in force from one year prior, was 81.6% at March 31, 2015, compared with 82.8% at December 31, 2014, and 81.1% at March 31, 2014.
As of March 31, 2015, MGIC's primary insurance in force was $166.1 billion, compared with $164.9 billion at December 31, 2014, and $157.9 billion at March 31, 2014. The fair value of MGIC Investment Corporation's investment portfolio, cash and cash equivalents was $4.8 billion at March 31, 2015, compared with $4.8 billion at December 31, 2014, and $5.1 billion at March 31, 2014.
At March 31, 2015, the percentage of loans that were delinquent, excluding bulk loans, was 5.98%, compared with 6.65% at December 31, 2014, and 7.92% at March 31, 2014. Including bulk loans, the percentage of loans that were delinquent at March 31, 2015 was 7.44%, compared to 8.25% at December 31, 2014, and 9.67% at March 31, 2014.
Losses incurred in the first quarter were $81.8 million, compared to $122.6 million in the first quarter of 2014. The decrease in losses incurred is primarily a result of fewer new delinquency notices received and a lower claim rate on new notices.
During the quarter, there was a $20 million reduction in losses incurred due to a re-estimation of previously recorded reserves relating to disputes about our claims paying practices and adjustments to incurred but not reported losses. Net underwriting and other expenses were $41.0 million in the first quarter, compared to $39.4 million reported for the same period last year; the increase was primarily a result of higher employee costs.
The news is good in spite of recent stock volatily in the market. Mortgage insurers took a hit Friday afternoon but several are roaring back now that the market has had time tto absorb the impact of the Federal Housing Finance Agency changes to private mortgage insurance requirements and its tweaking of g-fees.
he FHFA announced on Friday that it is leaving g-fees largely alone but it is revising requirements for private mortgage insurance companies that insure mortgage loans either owned or guaranteed by Fannie Mae and Freddie Mac.