Mortgage insurer MGIC Investment Corp. (MTG) reported a deeper loss for the first-quarter, posting $72.9 million in losses, or 31 cents a share, compared to a net loss of $19.6 million, or 10 cents a share, a year earlier.
The company’s profit declined as revenue fell to $269.2 million when compared to $379.7 million a year earlier in the first quarter.
Even with deeper losses hampering the insurer, the company wrote $6.5 billion in new insurance business in the first quarter, up from $4.2 billion a year earlier. The Home Affordable Refinance Program accounted for $3 billion of the newly written insurance.
Loan delinquencies fell with only 10.91% of the insurers’ insured loans delinquent, down from 11.87% in December and 12.84% a year earlier.
The company said that as of March 31, it maintained a preliminary risk-to-capital ratio of 20.4-to-1, well within the confines of the risk requirements of jurisdictions that it writes business in.
Still, MGIC warned that "at March 31, 2013, the preliminary risk-to-capital ratio of our combined insurance operations was 23.1 to 1."
The firm added, "A higher risk-to-capital ratio on a combined basis may indicate that, in order for MGIC to continue to utilize reinsurance arrangements with its subsidiaries or subsidiaries of our holding company, additional capital contributions to the reinsurance affiliates could be needed."