[Editor's note: An earlier version of this article focused on quarterly developments at MGIC. After internal review, it is deemed more appropriate to instead look at yearly metrics. This article is now updated to reflect that evolution.]

MGIC Investment Corp., a mortgage insurance company, reported Thursday an increase of nearly 23% in net income from the first quarter 2016 to the first quarter 2017.

New insurance written jumped 12% from last year to $9.3 billion, up from $8.3 billion last year but down a full 27.3% from last quarter’s $12.8 billion.

But this drop wasn’t unexpected. In the company’s fourth-quarter earnings, Sinks said, "We expect to write slightly less new insurance in 2017 compared to 2016 reflecting the current market conditions and a smaller origination market.”

Net income in the first quarter came in at $89.8 million up 22.9% from last year’s $69.2 million, but a drop of 16.5% from last quarter’s $107.5 million.

In terms of diluted earnings per share, the first quarter came in at $0.24 per share, up from the first quarter 2016’s $0.17 per share but down from last quarter’s $0.28 per diluted share.

Net income in the first quarter of 2017 includes an additional $27.2 million tax provision that was recorded for the anticipated settlement of the previously disclosed IRS litigation, while net income in the first quarter of 2016 includes a pre-tax loss on debt extinguishment of $13.4 million.

Patrick Sinks, CEO of MTG and its primary subsidiary MGIC, focused on the annual growth in his comments.

“I am pleased to report that our insurance in force continued to grow, persistency has started to rise, and the new delinquent notices declined as the newer books of business continue to generate low levels of new delinquent notices and the legacy portfolio continues to runoff,” Sinks said. “Additionally, the anticipated claim rate on existing delinquencies declined and we maintained our traditionally low expense ratio.”

Total revenues hit $260.9 million in the first quarter, up from last year’s $258.6 million but down slightly from the fourth quarter’s $266.5 million.