MGIC Net Income Drops 10 Percent; Losses Up 9 Percent In Fourth Quarter
MGIC Investment Corporation reported yesterday that its net income for the quarter dropped 5.2 percent, falling to $121.5 million from $128.1 million for the same quarter one year ago. Net income for 2006 was reported at $564.7 million, a 10 percent drop from $626.9 million one year ago, the company said. Diluted earnings per share for the full year was $6.65 compared with $6.78 in 2005, a decrease of 1.9 percent. MGIC said part of the company's 2006 results were attributable to higher credit losses. Losses incurred in the fourth quarter were $187.3 million, up from $171.6 million reported for the same period last year. Losses incurred during 2006 were $613.6 million up, from $553.5 million in 2005, the company said. Total revenues for the fourth quarter were $367.2 million, down 1.0 percent from $370.9 million in the fourth quarter of 2005. The decline in revenues resulted from a 2.7 percent decrease in net premiums earned to $297.0 million. Net premiums written for the quarter were $305.6 million, compared with $316.7 million in the fourth quarter last year, a decrease of 3.5 percent. Total revenues for the year were $1.47 billion, compared with $1.53 billion in 2005. The decrease in revenues for the year resulted primarily from a 4.1 percent decrease in premiums earned to $1.19 billion from $1.24 billion last year and decreases in realized gains. Net premiums written for the year were $1.22 billion, compared with $1.25 billion in 2005, a decrease of 2.8 percent. Deliquencies remained high but have dropped from the levels reported during 2005. At December 31, 2006, the percentage of loans that were delinquent, excluding bulk loans, was 4.08 percent, compared with 4.52 percent at December 31, 2005, and 3.99 percent at December 31, 2004. Including bulk loans, the percentage of loans that were delinquent at December 31, 2006 was 6.13 percent, compared to 6.58 percent at December 31, 2005, and 6.05 percent at December 31, 2004. New insurance written in the fourth quarter was $15.5 billion, compared to $15.3 billion in the fourth quarter of 2005. New insurance written for the quarter included $5.1 billion of bulk business compared with $5.9 billion in the same period last year. New insurance written for the full year of 2006 was $58.2 billion compared to $61.5 billion in 2005 and included $18.9 billion of bulk business compared to $21.4 billion in 2005. MGIC is the leading provider of mortgage insurance, and serves nearly 5,000 lenders nationwide.