Mortgage insurer MGIC Investment Corp. (MTG) posted a second-quarter net loss of $273.9 million, or $1.36 a share, as more requests came in for payment on late-stage loan delinquencies.
The company’s net loss only deepened from last year when the firm posted a loss of $151.7 million, or 75 cents a share. Furthermore, MGIC’s insurance operations reported a risk-to-capital ratio of 30-to-1, which is well above the maximum 25-to-1 benchmark allowed in most jurisdictions.
Meanwhile, revenue for the second quarter fell to $321.1 million from $367 million a year earlier.
The percentage of delinquent loans insured by MGIC — excluding bulk loans — hit 12.51% in June, down from 13.79% in December and 13.40% a year ago.
As delinquencies fell, the firm also wrote more new insurance in the second quarter with new contracts totaling $5.9 billion, up from $3.1 billion in 2Q of 2011. The Home Affordable Refinance Program also made up $2.7 billion in new MGIC insurance. HARP refinancing activity picked up in the first six months of the year, with the firm writing $4 billion in HARP business, up from $1.5 billion a year earlier.
As far as losses on loans, the company reported $551.4 million in losses in 2Q, up from $459.6 million a year earlier due to an uptick in insurance claims on severely delinquent loans.
Total revenue declined a bit to $321.1 million, down from $367 million a year earlier.
