MGIC narrows 1Q loss as defaults decline
Mortgage insurer MGIC Investment Corp. (MTG) posted a loss of $33.7 million, or 17 cents per share, in the first quarter as the company saw fewer insured loans in default. That compares to a loss of $150.1 million, or $1.20 a share, a year earlier. Meanwhile, total revenue in the first quarter fell to $353.1 million from $370.8 million a year earlier. The company's loss narrowed as the percentage of loans delinquent, excluding bulk loans, fell from 15.38% last year to 13.87%. Costs associated with claims on mortgages in default dropped to $310.4 million from $454.5 million a year earlier because of a decline in the number of MGIC-backed loans that have gone into default. When including bulk loans, the percentage of loans delinquent in March was 16.35%, compared to 18.14% during the same period of 2010. The insurer managed to narrow its first-quarter loss, but still missed analysts' estimates that put MGIC's loss in the range of 6 cents a share. Write to Kerri Panchuk.