MGIC revenues increase more than expected

Earnings at $0.26 per share

In the second quarter, Mortgage Guaranty Insurance Corporation posted earnings of $0.26 per share, $0.06 better than Capital IQ consensus. The company’s revenues rose by 8.4% annually to $263.5 million, an increase from the predicted $254.42 million.

New insurance written in the second quarter increased to $12.6 billion, up from $11.8 billion last year.

"I am pleased to report that our insurance in force continued to grow as we added $12.6 billion of high quality new insurance, the delinquent inventory continued to decline while newer books of business continue to generate low level of new delinquent notices, and we maintained our traditionally low expense ratio," MGIC CEO Patrick Sinks said.

"As expected, during the quarter MGIC received approval for, and paid, another $16 million dividend to the holding company and I am optimistic that we will continue to receive approval from our regulator to pay dividends of at least this amount in subsequent quarters,” Sinks said. “Additionally, we repurchased $50.2 million of our 5% convertible senior notes due in 2017."

As of June 30, 2016, the percentage of loans that were delinquent, excluding bulk loans, was 4.2%, a decrease from last year’s 5.5%.

The company’s net income came in at $109.2 million, down from $113.7 million from the second quarter last year.

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