Although it increased insurance in force, and decreased its inventory of delinquent loans, private mortgage insurer MGIC Investment experienced a loss due to lower investment gains, loss from paying off debt and higher payment for income taxes, according to an article by David Schuyler for Milwaukee Business Journal.
The company reported Tuesday a loss in net income for the first quarter of 2016 to $69.2 million, down from $133.1 million from the same period in 2015, according to the article. For individual shares that is a drop from 32 cents a share to 17 cents a share. Total revenue dropped from $270.2 million to $258.6 million.
Although they had a loss for the first quarter, back in February, primary new mortgage insurance grew 5.5% from last year, inching up from $165.8 billion to $174.9 billion, the company’s February operational summary of its insurance subsidiaries for its primary mortgage insurance reported.
From the article:
Revenue was hurt by a drop in realized investment gains, which were just $3.1 million compared with $26.3 million in the first quarter a year ago. Profits were reduced by a pre-tax loss of $13.4 million related to the repurchasing of senior notes and an increase to $34.5 million, from $3.4 million last year, in the company’s tax provision because of the reversal of its deferred tax asset valuation allowance in 2015.
The company reported a net income of $74.4 million for the fourth quarter of 2015, compared with a net loss of $1.4 million for the same quarter a year ago. Diluted net income per share was $0.19 for the, compared to diluted loss per share of $0.00 for the same quarter a year ago.