Mortgage Insurer MGIC Posts $150m Net Q1 Loss
MGIC Investment Corp. (MTG) reported a $150.1m net loss in Q110, narrowed from $184.6m a year earlier. The company posted a $280.1m net loss in Q409. The company attributed the decline this quarter to a decrease in defaulted mortgages causing losses in its principal mortgage insurance subsidiary, Mortgage Guaranty Insurance Corp. (MGIC). The share of delinquent MGIC-insured loans came to 15.38% this quarter, compared with 15.46% in the year-ago quarter. Q110 losses totaled $454.5m, down from $757.9m in the same quarter last year, as default inventory declined. The company wrote $1.8bn in new insurance during the quarter, compared with $6.4bn in the year-ago period. MGIC wrote an additional $684.8m of mortgage insurance under the Home Affordable Refinance Program (HARP), which it counts as modification of existing coverage. News of the quarterly loss arrived today in conduction with an announced public offering of $700m in common stock and $300m in convertible senior notes due 2017. MGIC said it plans to use some of the proceeds of the offering to support "general corporate purposes," including increased capital for the mortgage insurance business. Write to Diana Golobay.