MGIC Investment Corporation Reports Fourth Quarter 2017 Results

Revenues

Total revenues for the fourth quarter of 2017 were $271.5 million, compared to $266.5 million in the fourth quarter last year. Net premiums written for the quarter were $259.5 million, compared to $243.5 million for the same period last year. Net premiums earned were $237.4 million compared to $235.1 million for the same period last year as a result of an increase in insurance in force offset by a lower effective premium yield. Investment income for the fourth quarter was $31.3 million, compared to $28.1 million for the same period last year.

Losses and expenses

Losses incurred   

Losses incurred in the fourth quarter of 2017 were $(31.0) million, compared to $47.7 million in the fourth quarter of 2016. During the fourth quarter of 2017 there was a $103 million reduction in losses incurred due to positive development on our primary loss reserves for previously received delinquencies, due primarily to a lower estimated claim rate, compared to a reduction of $43 million in the fourth quarter of 2016. Losses incurred in the quarter associated with delinquent notices received in the quarter reflect a lower claim rate when compared to the same quarter last year, especially on loans in hurricane impacted areas as we do not expect a material increase in claims from these notices. 

Underwriting and other expenses

Net underwriting and other expenses were $43.8 million in the fourth quarter of 2017, compared to $40.6 million reported for the same period last year. Interest expense was $13.3 million  in the fourth quarter of 2017, compared to $16.2 million reported for the same period last year. The decrease was a result of the retirement of the 5% Senior Notes and conversion of the 2% Convertible Senior Notes.

Provision for income taxes

The effective income tax rate for the year ended 2017 increased to 54.7% from 33.5% for the year ended 2016 due to the remeasurement of our net deferred tax assets to reflect lower enacted corporate tax rates and the additional provision related to our expected IRS settlement. We expect our tax rate in 2018 to be marginally less than the 21% federal statutory rate.

Capital

• As of December 31, 2017 total shareholders' equity was $3.15 billion and outstanding principal on borrowings was $837 million.
• MGIC paid a dividend of $50 million to our holding company during the fourth quarter of 2017.
• Consolidated Risk-to-Capital was 10.5:1⁽⁴⁾ as of December 31, 2017 compared to 12.0:1 as of December 31, 2016.
• MGIC's PMIERs Available Assets totaled $4.8 billion, or $0.8 billion above its Minimum Required Assets as of December 31, 2017.

⁽⁴⁾ preliminary as of December 31, 2017

Other Balance Sheet and Liquidity Metrics

• Total assets were $5.62 billion as of December 31, 2017, compared to $5.73 billion as of December 31, 2016, and $5.87 billion as of December 31, 2015.
• The fair value of our investment portfolio, cash and cash equivalents was $5.1 billion as of December 31, 2017 compared to $4.8 billion as of December 31, 2016, and $4.8 billion as of December 31, 2015.
• Investments, cash and cash equivalents at the holding company were $216 million as of December 31, 2017 compared with $182 million as of September 30, 2017 and $283 million as of December 31, 2016.

Conference Call and Webcast Details

MGIC Investment Corporation will hold a conference call today, January 18, 2018, at 10 a.m. ET to allow securities analysts and shareholders the opportunity to hear management discuss the company's quarterly results. The conference call number is 1-844-231-8825. The call is being webcast and can be accessed at the company's website at http://mtg.mgic.com/. A replay of the webcast will be available on the company's website through February 18, 2018 under "Newsroom."

About MGIC

MGIC (www.mgic.com), the principal subsidiary of MGIC Investment Corporation, serves lenders throughout the United States, Puerto Rico, and other locations helping families achieve homeownership sooner by making affordable low-down-payment mortgages a reality. At December 31, 2017, MGIC had $194.9 billion of primary insurance in force covering approximately one million mortgages.

This press release, which includes certain additional statistical and other information, including non-GAAP financial information, and a supplement that contains various portfolio statistics are both available on the Company's website at https://mtg.mgic.com/ under "Newsroom."

From time to time MGIC Investment Corporation releases important information via postings on its corporate website without making any other disclosure and intends to continue to do so in the future. Investors and other interested parties are encouraged to enroll to receive automatic email alerts and Really Simple Syndication (RSS) feeds regarding new postings. Enrollment information can be found at https://mtg.mgic.com under "Newsroom."

Safe Harbor Statement

Forward Looking Statements and Risk Factors:

Our actual results could be affected by the risk factors below. These risk factors should be reviewed in connection with this press release and our periodic reports to the Securities and Exchange Commission ("SEC"). These risk factors may also cause actual results to differ materially from the results contemplated by forward looking statements that we may make. Forward looking statements consist of statements which relate to matters other than historical fact, including matters that inherently refer to future events. Among others, statements that include words such as "believe," "anticipate," "will" or "expect," or words of similar import, are forward looking statements. We are not undertaking any obligation to update any forward looking statements or other statements we may make even though these statements may be affected by events or circumstances occurring after the forward looking statements or other statements were made. No investor should rely on the fact that such statements are current at any time other than the time at which this press release was issued.

In addition, the current period financial results included in this press release may be affected by additional information that arises prior to the filing of our Form 10-K for the year ended December 31, 2017.

While we communicate with security analysts from time to time, it is against our policy to disclose to them any material non-public information or other confidential information. Accordingly, investors should not assume that we agree with any statement or report issued by any analyst irrespective of the content of the statement or report, and such reports are not our responsibility.

Use of Non-GAAP Financial Measures

We believe that use of the Non-GAAP measures of adjusted pre-tax operating income (loss), adjusted net operating income (loss) and adjusted net operating income (loss) per diluted share facilitate the evaluation of the company's core financial performance thereby providing relevant information to investors. These measures are not recognized in accordance with accounting principles generally accepted in the United States of America (GAAP) and should not be viewed as alternatives to GAAP measures of performance. The measures described below have been established to increase transparency for the purpose of evaluating our fundamental operating trends.

Adjusted pre-tax operating income (loss) is defined as GAAP income (loss) before tax, excluding the effects of net realized investment gains (losses), gain (loss) on debt extinguishment, net impairment losses recognized in income (loss) and infrequent or unusual non-operating items where applicable.

Adjusted net operating income (loss) is defined as GAAP net income (loss) excluding the after-tax effects of net realized investment gains (losses), gain (loss) on debt extinguishment, net impairment losses recognized in income (loss), and infrequent or unusual non-operating items where applicable. The amounts of adjustments to components of pre-tax operating income (loss) are tax effected using a federal statutory tax rate of 35%.

Adjusted net operating income (loss) per diluted share is calculated in a manner consistent with the accounting standard regarding earnings per share by dividing (i) adjusted net operating income (loss)  after making adjustments for interest expense on convertible debt, whenever the impact is dilutive, by (ii) diluted weighted average common shares outstanding, which reflects share dilution from unvested restricted stock units and from convertible debt when dilutive under the "if-converted" method.

Although adjusted pre-tax operating income (loss) and adjusted net operating income (loss) exclude certain items that have occurred in the past and are expected to occur in the future, the excluded items represent items that are: (1) not viewed as part of the operating performance of our primary activities; or (2) impacted by both discretionary and other economic or regulatory factors and are not necessarily indicative of operating trends, or both. These adjustments, along with the reasons for their treatment, are described below. Trends in the profitability of our fundamental operating activities can be more clearly identified without the fluctuations of these adjustments. Other companies may calculate these measures differently. Therefore, their measures may not be comparable to those used by us.

MGIC INVESTMENT CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
		Three Months Ended December 31,								Year Ended December 31,
(In thousands, except per share data)		2017				2016				2017				2016
Net premiums written		$	259,523			$	243,471			$	997,955			$	975,091
Revenues
Net premiums earned		$	237,425			$	235,053			$	934,747			$	925,226
Net investment income		31,276				28,094				120,871				110,666
Net realized investment gains (losses)		460				(52)				249				8,932
Other revenue		2,341				3,425				10,187				17,659
Total revenues		271,502				266,520				1,066,054				1,062,483
Losses and expenses
Losses incurred, net		(30,996)				47,658				53,709 Werbung Mehr Nachrichten zur Mgic Investment Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 10:57 - PR Newswire Fidelity Special Values Plc - Monthly Factsheet 10:30 - PR Newswire Fidelity China Special Situations Plc - Monthly Factsheet Solarboom 2024:    5 Gründe die für diese Aktie sprechen… weiterlesen» Anzeige wo-site-teaser-box-16746_site-teaser-box_2024-04-24_08%253A00%253A00_2024-04-25_09%253A00%253A59