CONFIDENTIAL FOR INTERNAL USE ONLY Barclays Global Financial Services Conference September 14, 2021 MGIC 2021 CONFIDENTIAL MGIC Investment Corporation Presentation contains forward-looking information Safe harbor statements As used in this presentation, "we," "our" and "us" refer to MGIC Investment Corporation's consolidated operations or to MGIC Investment Corporation, as the context requires, and "MGIC" refers to Mortgage Guaranty Insurance Corporation. This presentation may contain forward looking statem ...

MGIC Investment Corporation (NYSE:MTG) Q2 2021 Earnings Conference Call August 5, 2021 10:30 AM ET Company Participants Mike Zimmerman - Senior Vice President, Investor Relations Tim Mattke - Chief Executive Officer Nathan Colson - Chief Financial Officer Conference Call Participants Mark DeVries - Barclays Bose George - KBW Geoffrey Dunn - Dowling & Partners Mihir Bhatia - Bank of America Operator Good day and thank you for standing by. Welcome to MGIC Investment Corporation Second Quarter 2021 Earnings Ca ...

MGIC MGIC Investment Corporation Quarterly Supplement Q2 2021 NYSE: MTG Forward Looking Statements As used below, "we," "our" and "us" refer to MGIC Investment Corporation's consolidated operations or to MGIC Investment Corporation, as the context requires, and "MGIC" refers to Mortgage Guaranty Insurance Corporation. This presentation may contain forward looking statements. Our actual results could be affected by the risks associated with the COVID-19 pandemic, and by the other risk factors affecting the c ...

PART I — FINANCIAL INFORMATION [Financial Statements](index=10&type=section&id=Item%201.%20Financial%20Statements) The unaudited consolidated financial statements for MGIC Investment Corporation show a significant increase in net income for the three and six months ended June 30, 2021, compared to the same periods in 2020, primarily driven by a substantial decrease in net losses incurred [Consolidated Balance Sheets](index=10&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2021, total assets increased to **$7.58 billion** from **$7.35 billion** at year-end 2020, driven by growth in the investment portfolio, while shareholders' equity grew to **$4.91 billion** from **$4.70 billion** | (In thousands) | June 30, 2021 (Unaudited) | December 31, 2020 | | :--- | :--- | :--- | | **Total Assets** | **$7,575,727** | **$7,354,526** | | Total investment portfolio | $6,982,962 | $6,682,911 | | Cash and cash equivalents | $178,635 | $287,953 | | **Total Liabilities** | **$2,661,020** | **$2,655,540** | | Loss reserves | $936,236 | $880,537 | | Senior notes | $880,443 | $879,379 | | **Total Shareholders' Equity** | **$4,914,707** | **$4,698,986** | | Retained earnings | $2,972,362 | $2,642,096 | [Consolidated Statements of Operations](index=11&type=section&id=Consolidated%20Statements%20of%20Operations) For the second quarter of 2021, net income surged to **$153.1 million** from **$14.0 million** in Q2 2020, primarily due to a dramatic reduction in net losses incurred, reflecting improved credit performance | (In thousands, except per share data) | Three Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | | :--- | :--- | :--- | :--- | :--- | | **Total revenues** | **$297,852** | **$293,968** | **$595,809** | **$600,861** | | Net premiums earned | $251,539 | $243,562 | $506,584 | $504,463 | | **Losses incurred, net** | **$29,164** | **$217,374** | **$68,800** | **$278,330** | | **Net income** | **$153,051** | **$14,047** | **$303,072** | **$163,852** | | **Diluted EPS** | **$0.44** | **$0.04** | **$0.87** | **$0.48** | [Consolidated Statements of Comprehensive Income](index=12&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive income for Q2 2021 was **$198.8 million**, an increase from **$158.2 million** in Q2 2020, though the six-month figure for 2021 was impacted by a net loss in other comprehensive income primarily due to changes in unrealized investment gains and losses | (In thousands) | Three Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | | :--- | :--- | :--- | :--- | :--- | | **Net income** | $153,051 | $14,047 | $303,072 | $163,852 | | **Other comprehensive income (loss), net of tax** | $45,717 | $144,188 | $(47,539) | $72,704 | | **Comprehensive income** | **$198,768** | **$158,235** | **$255,533** | **$236,556** | [Consolidated Statements of Shareholders' Equity](index=13&type=section&id=Consolidated%20Statements%20of%20Shareholders%27%20Equity) Total shareholders' equity increased from **$4.70 billion** at the end of 2020 to **$4.91 billion** as of June 30, 2021, driven by net income partially offset by cash dividends and a decrease in accumulated other comprehensive income - An accounting standards update for convertible instruments (ASU 2020-06) was adopted on January 1, 2021, resulting in a **$68.3 million** cumulative effect adjustment, increasing Retained Earnings and decreasing Paid-in Capital[37](index=37&type=chunk)[51](index=51&type=chunk) - Cash dividends of **$41.1 million** were paid during the first six months of 2021[37](index=37&type=chunk) [Consolidated Statements of Cash Flows](index=14&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2021, net cash provided by operating activities was **$349.4 million**, a decrease from the prior year, while net cash used in investing activities was **$407.3 million**, primarily for investment purchases | (In thousands) | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | | :--- | :--- | :--- | | Net cash provided by operating activities | $349,422 | $420,125 | | Net cash provided by (used in) investing activities | $(407,342) | $(47,466) | | Net cash provided by (used in) financing activities | $(47,807) | $(170,322) | | **Net decrease in cash and cash equivalents** | **$(105,727)** | **$202,337** | [Notes to Consolidated Financial Statements](index=15&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed information on accounting policies, debt, reinsurance, loss reserves, and statutory capital, highlighting the adoption of new accounting standards and the company's compliance with capital requirements - The company provides mortgage insurance to lenders and GSEs to protect against defaults on low down payment residential mortgage loans[42](index=42&type=chunk) - As of June 30, 2021, MGIC's 'Available Assets' were in excess of its 'Minimum Required Assets' under the GSEs' PMIERs, maintaining its eligibility to insure loans purchased by the GSEs[45](index=45&type=chunk) - Effective January 1, 2021, the company adopted ASU 2020-06 for convertible instruments, resulting in a **$68.3 million** cumulative effect adjustment to beginning Retained Earnings and Paid-in Capital related to its 9% Debentures[50](index=50&type=chunk)[51](index=51&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=37&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the strong financial performance in Q2 2021 to a significant decrease in losses incurred compared to the prior year, maintaining a strong capital position and intending to resume share repurchases [Overview](index=38&type=section&id=Overview) Net income for Q2 2021 was **$153.1 million** (**$0.44**/share), a substantial increase from **$14.0 million** (**$0.04**/share) in Q2 2020, driven by an **$188.2 million** decrease in net losses incurred as new delinquency notices fell **84%** year-over-year | (In millions, except per share data) | Three Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | | :--- | :--- | :--- | :--- | :--- | | Net income | $153.1 | $14.0 | $303.1 | $163.9 | | Diluted income per share | $0.44 | $0.04 | $0.87 | $0.48 | | Losses incurred, net | $29.2 | $217.4 | $68.8 | $278.3 | - Based on PMIERs as of June 30, 2021, MGIC's Available Assets totaled **$5.7 billion**, which was **$2.3 billion** in excess of its Minimum Required Assets[189](index=189&type=chunk) - The company temporarily suspended stock repurchases due to COVID-19 uncertainty but intends to resume them in the third quarter of 2021, with **$291 million** remaining under its authorization as of June 30, 2021[187](index=187&type=chunk) [Mortgage Insurance Portfolio](index=48&type=section&id=Mortgage%20Insurance%20Portfolio) New Insurance Written (NIW) increased to **$33.6 billion** in Q2 2021 from **$28.2 billion** in Q2 2020, driven by a larger mortgage origination market, while persistency declined to **57.1%** from **68.2%** year-over-year | (In billions) | Q2 2021 | Q2 2020 | H1 2021 | H1 2020 | | :--- | :--- | :--- | :--- | :--- | | New Insurance Written (NIW) | $33.6 | $28.2 | $64.4 | $46.1 | | Direct primary IIF (end of period) | $262.0 | $230.5 | $262.0 | $230.5 | | Direct primary RIF (end of period) | $65.3 | $58.7 | $65.3 | $58.7 | - Persistency, the percentage of insurance remaining in force from one year prior, was **57.1%** at June 30, 2021, down from **68.2%** at June 30, 2020[238](index=238&type=chunk) [Consolidated Results of Operations](index=50&type=section&id=Consolidated%20Results%20of%20Operations) Total revenues for Q2 2021 were stable at **$297.9 million**, with net premiums earned increasing **3%** to **$251.5 million**, while net losses incurred decreased **87%** to **$29.2 million**, reflecting a sharp drop in new delinquency notices | (in basis points) | Q2 2021 | Q2 2020 | H1 2021 | H1 2020 | | :--- | :--- | :--- | :--- | :--- | | In force portfolio yield | 42.6 | 48.1 | 43.0 | 48.6 | | Ceded premiums earned, net | (6.4) | (11.0) | (6.5) | (8.1) | | **Net premium yield** | **39.1** | **42.7** | **39.8** | **44.6** | - Net losses incurred decreased to **$29.2 million** in Q2 2021 from **$217.4 million** in Q2 2020, primarily due to an **84%** reduction in new delinquency notices received[274](index=274&type=chunk) | | Q2 2021 | Q2 2020 | H1 2021 | H1 2020 | | :--- | :--- | :--- | :--- | :--- | | **Loss ratio** | **11.6%** | **89.2%** | **13.6%** | **55.2%** | - The primary delinquency inventory decreased to **42,999** loans at June 30, 2021, a **38%** decrease from June 30, 2020, with **55%** of the delinquency inventory reported to be in forbearance plans[301](index=301&type=chunk) [Liquidity and Capital Resources](index=64&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintained a strong liquidity and capital position, with the holding company holding approximately **$772 million** in cash and investments against **$1.1 billion** in debt obligations, and MGIC's risk-to-capital ratio improving to **8.9:1** - As of June 30, 2021, the holding company held approximately **$772 million** in cash and investments, with total debt obligations of **$1.1 billion**[339](index=339&type=chunk)[398](index=398&type=chunk) - MGIC paid a **$150 million** dividend to the holding company in August 2021, after paying none in the first half of 2021 due to COVID-19 uncertainty[341](index=341&type=chunk) | (In millions, except ratio) | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | RIF - net | $46,593 | $44,511 | | Statutory policyholders' position | $5,221 | $4,857 | | **Risk-to-capital** | **8.9:1** | **9.2:1** | [Quantitative and Qualitative Disclosures about Market Risk](index=68&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risks are credit spread risk and interest rate risk within its fixed income investment portfolio, with interest rate risk quantified by a modified duration of **4.4 years** as of June 30, 2021 - The modified duration of the fixed income investment portfolio was **4.4 years** as of June 30, 2021, implying that a **100 basis point** parallel shift in the yield curve would change the portfolio's fair value by approximately **4.4%**[370](index=370&type=chunk) [Controls and Procedures](index=68&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of June 30, 2021, with no material changes to internal control over financial reporting during the second quarter - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective as of the end of the period[371](index=371&type=chunk) PART II — OTHER INFORMATION [Legal Proceedings](index=69&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in legal proceedings in the ordinary course of business, with further details provided in Note 5 to the financial statements regarding disputes over claims paying practices and contingencies - For details on legal proceedings, the report refers to Note 5 - 'Litigation and Contingencies' in the financial statements[373](index=373&type=chunk) [Risk Factors](index=69&type=page&id=Item%201A.%20Risk%20Factors) The report updates key risk factors, emphasizing the potential impact of economic downturns, unemployment, and changes in home prices on default rates and losses, noting the uncertainty of COVID-19 related mortgage forbearance plans and the holding company's financial leverage - The national unemployment rate was **5.9%** as of June 30, 2021, an improvement from its peak but still above the pre-pandemic rate of **3.5%** at year-end 2019[376](index=376&type=chunk) - As of June 30, 2021, **23,849** loans in the delinquency inventory were in forbearance, with the ultimate cure rate of these loans post-forbearance remaining a key uncertainty[378](index=378&type=chunk) - The company's persistency rate was **57.1%** at June 30, 2021, down from **75.8%** at year-end 2019, indicating a higher rate of policy cancellations, primarily due to refinancing[384](index=384&type=chunk) - The holding company's debt of **$1.1 billion** materially exceeds its cash and investments of **$772 million**, highlighting its reliance on dividends from its regulated insurance subsidiaries[398](index=398&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=76&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase any common stock during the three months ended June 30, 2021, with approximately **$291 million** remaining available for repurchase under the program, and an intention to resume repurchases in the third quarter | Period | Total shares purchased | Average price paid per share | Approximate dollar value of shares that may yet be purchased | | :--- | :--- | :--- | :--- | | April 1 - June 30, 2021 | 0 | $0 | $290,818,024 | - The company had temporarily suspended stock repurchases due to uncertainty from the COVID-19 pandemic but intends to resume them in the third quarter of 2021[414](index=414&type=chunk)

MGIC Investment Corporation (NYSE:MTG) Q1 2021 Earnings Conference Call May 6, 2021 10:00 AM ET Company Participants Mike Zimmerman ??? Senior Vice President-Investor Relations Tim Mattke ??? Chief Executive Officer Nathan Colson ??? Chief Financial Officer Conference Call Participants Mark DeVries ??? Barclays Bose George ??? KBW Doug Harter ??? Credit Suisse Philip Stefano ??? Deutsche Bank Ryan Gilbert ??? BTIG Mihir Bhatia ??? Bank of America Operator Good day and thank you for standing by. Welcome to t ...

MGIC MGIC Investment Corporation Quarterly Supplement Q1 2021 NYSE: MTG Forward Looking Statements As used below, "we," "our" and "us" refer to MGIC Investment Corporation's consolidated operations or to MGIC Investment Corporation, as the context requires, and "MGIC" refers to Mortgage Guaranty Insurance Corporation. This presentation may contain forward looking statements. Our actual results could be affected by the risks associated with the COVID-19 pandemic, and by the other risk factors affecting the c ...

[PART I — FINANCIAL INFORMATION](index=11&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) This section provides detailed unaudited consolidated financial statements, management's discussion and analysis, market risk disclosures, and internal controls information [Item 1. Financial Statements](index=11&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for MGIC Investment Corporation as of March 31, 2021, and for the three months then ended, compared with prior periods, including balance sheets, statements of operations, comprehensive income, shareholders' equity, cash flows, and detailed notes [Consolidated Balance Sheets](index=11&type=section&id=Consolidated%20Balance%20Sheets) This section presents the company's financial position, detailing assets, liabilities, and shareholders' equity at specific points in time | (In thousands) | March 31, 2021 (Unaudited) | December 31, 2020 | | :--- | :--- | :--- | | **Total Assets** | **$7,407,016** | **$7,354,526** | | Total investment portfolio | $6,829,737 | $6,682,911 | | Cash and cash equivalents | $182,930 | $287,953 | | **Total Liabilities** | **$2,674,723** | **$2,655,540** | | Loss reserves | $913,110 | $880,537 | | Senior notes | $879,911 | $879,379 | | **Total Shareholders' Equity** | **$4,732,293** | **$4,698,986** | [Consolidated Statements of Operations](index=12&type=section&id=Consolidated%20Statements%20of%20Operations) This section outlines the company's financial performance over a period, showing revenues, expenses, and net income | (In thousands, except per share data) | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :--- | :--- | :--- | | **Total revenues** | **$297,957** | **$306,893** | | Net premiums earned | $255,045 | $260,901 | | Investment income, net | $37,893 | $41,347 | | **Total losses and expenses** | **$108,340** | **$118,654** | | Losses incurred, net | $39,636 | $60,956 | | **Net income** | **$150,021** | **$149,805** | | **Diluted EPS** | **$0.43** | **$0.42** | [Notes to Consolidated Financial Statements](index=16&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section provides detailed explanations and additional information supporting the consolidated financial statements - The company adopted ASU 2020-06, simplifying accounting for convertible instruments, which resulted in a **$68.3 million** cumulative adjustment, increasing beginning Retained Earnings and decreasing Paid-in Capital to reclassify the equity component of the 9% Debentures to debt[51](index=51&type=chunk)[52](index=52&type=chunk) - As of March 31, 2021, MGIC's Available Assets under the Private Mortgage Insurer Eligibility Requirements (PMIERs) were in excess of its Minimum Required Assets, maintaining its eligibility to insure loans purchased by the GSEs[46](index=46&type=chunk) [Note 3 - Debt](index=17&type=section&id=Note%203%20-%20Debt) This note details the company's various debt instruments, including their types, interest rates, and maturity dates | (In millions) | March 31, 2021 | December 31, 2020 | | :--- | :--- | :--- | | FHLB Advance - 1.91%, due Feb 2023 | $155.0 | $155.0 | | 5.75% Notes, due Aug 2023 | $240.8 | $240.6 | | 5.25% Notes, due Aug 2028 | $639.1 | $638.8 | | 9% Debentures, due Apr 2063 | $208.8 | $208.8 | | **Total long-term debt, carrying value** | **$1,243.7** | **$1,243.2** | [Note 4 - Reinsurance](index=18&type=section&id=Note%204%20-%20Reinsurance) This note describes the company's reinsurance arrangements and their impact on premiums and losses - The company utilizes two primary forms of reinsurance: **Quota Share Reinsurance (QSR)** with third-party reinsurers and **Excess of Loss Reinsurance** through Home Re transactions with unaffiliated special purpose insurers[62](index=62&type=chunk)[73](index=73&type=chunk) | (In thousands) | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :--- | :--- | :--- | | **Net premiums earned** | **$255,045** | **$260,901** | | Direct | $296,271 | $289,868 | | Ceded | ($43,637) | ($31,576) | | **Losses incurred, net** | **$39,636** | **$60,956** | | Direct | $48,071 | $66,562 | | Ceded | ($8,410) | ($5,772) | - As of March 31, 2021, a **"Trigger Event"** occurred on all outstanding Insurance-Linked Note (ILN) transactions (Home Re), suspending principal payments on the notes and preserving the reinsurance coverage available to MGIC[75](index=75&type=chunk) [Note 11 - Loss Reserves](index=28&type=section&id=Note%2011%20-%20Loss%20Reserves) This note provides an analysis of the company's loss reserves, including changes and key factors influencing their estimation | (In thousands) | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :--- | :--- | :--- | | Reserve at beginning of period | $880,537 | $555,334 | | Total losses incurred | $39,636 | $60,956 | | Total losses paid | $14,922 | $45,652 | | **Reserve at end of period** | **$913,110** | **$574,753** | - The primary delinquency inventory increased to **52,775 loans** at March 31, 2021, from **27,384** at March 31, 2020, largely due to the impacts of the COVID-19 pandemic, with new delinquency notices for Q1 2021 at **13,011**, slightly up from **12,398** in Q1 2020[142](index=142&type=chunk)[143](index=143&type=chunk) - The company notes significant sensitivity in its loss reserves, where a **$1,000** change in the average severity reserve factor would alter the loss reserve by approximately **+/- $16 million**, and a one percentage point change in the average claim rate would change it by **+/- $31 million**[132](index=132&type=chunk) [Note 12 - Shareholders' Equity](index=32&type=section&id=Note%2012%20-%20Shareholders%27%20Equity) This note details changes in shareholders' equity, including share repurchases and dividend payments - No shares were repurchased in Q1 2021, but the company has authorization to repurchase up to an additional **$291 million** of common stock through the end of 2021, though the program was temporarily suspended due to COVID-19 uncertainty[147](index=147&type=chunk) - A quarterly cash dividend of **$0.06 per share** was paid in March 2021, totaling **$21 million**, with another **$0.06 per share** dividend declared on April 29, 2021[148](index=148&type=chunk) [Note 14 - Statutory Information](index=32&type=section&id=Note%2014%20-%20Statutory%20Information) This note presents key statutory financial metrics and regulatory compliance information for the insurance operations - At March 31, 2021, MGIC's risk-to-capital ratio was **8.8 to 1**, well below the maximum regulatory requirement of **25 to 1**, and its policyholder position was **$3.4 billion** above the required Minimum Policyholder Position (MPP) of **$1.7 billion**[154](index=154&type=chunk) - MGIC did not pay any dividends to the holding company in Q1 2021 due to COVID-19 uncertainty, and any dividend payments through June 30, 2021, require GSE approval under PMIERs guidance[159](index=159&type=chunk)[161](index=161&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=34&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the financial results for Q1 2021, noting stable net income compared to Q1 2020, driven by a significant decrease in net losses incurred offset by lower net premiums earned, reduced investment income, and higher operating expenses, while detailing mortgage insurance portfolio performance and capital position [Overview](index=35&type=section&id=Overview) This section provides a high-level summary of the company's financial performance and key operational highlights for the period | (In millions, except per share data) | Q1 2021 | Q1 2020 | % Change | | :--- | :--- | :--- | :--- | | Net premiums earned | $255.0 | $260.9 | (2)% | | Losses incurred, net | $39.6 | $61.0 | (35)% | | Net income | $150.0 | $149.8 | —% | | Diluted income per share | $0.43 | $0.42 | 2% | - Net income remained **flat year-over-year** as a **$21.3 million** decrease in losses incurred was offset by lower net premiums earned, lower investment income, and higher operating and interest expenses[170](index=170&type=chunk)[174](index=174&type=chunk) - As of March 31, 2021, MGIC's Available Assets under PMIERs totaled **$5.5 billion**, which was **$2.3 billion** in excess of its Minimum Required Assets[181](index=181&type=chunk) [Mortgage Insurance Portfolio](index=43&type=section&id=Mortgage%20Insurance%20Portfolio) This section analyzes the performance and characteristics of the company's mortgage insurance portfolio, including new business and persistency - New Insurance Written (NIW) increased significantly to **$30.8 billion** in Q1 2021 from **$17.9 billion** in Q1 2020, driven by an increase in the mortgage origination market[228](index=228&type=chunk) | (In billions) | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :--- | :--- | :--- | | NIW | $30.8 | $17.9 | | Cancellations | ($25.7) | ($14.7) | | **Increase in primary IIF** | **$5.1** | **$3.2** | | Direct primary IIF as of March 31 | $251.7 | $225.5 | - Persistency, the percentage of insurance remaining in force from one year prior, decreased to **56.2%** at March 31, 2021, compared to **73.0%** at March 31, 2020, indicating a higher rate of policy cancellations, primarily due to refinancing activity[235](index=235&type=chunk) [Consolidated Results of Operations](index=45&type=section&id=Consolidated%20Results%20of%20Operations) This section provides a detailed analysis of the company's revenues, expenses, and profitability drivers for the reporting period - Net premium yield decreased to **40.9 basis points** in Q1 2021 from **46.6 basis points** in Q1 2020, primarily due to a lower in-force portfolio yield and higher ceded premiums, partially offset by increased accelerated earnings from single premium policy cancellations[249](index=249&type=chunk) - Net losses incurred decreased **35%** to **$39.6 million** in Q1 2021 from **$61.0 million** in Q1 2020, driven by a lower claim rate on new delinquency notices and a **$4 million** decrease in IBNR reserves, compared to an **$8 million** increase in the prior year[271](index=271&type=chunk)[272](index=272&type=chunk) - The primary delinquency inventory stood at **52,775 loans** at the end of Q1 2021, a **93% increase** from Q1 2020, with **61%** of these delinquencies reported to be in forbearance plans[295](index=295&type=chunk)[276](index=276&type=chunk) [Balance Sheet Review](index=55&type=section&id=Balance%20Sheet%20Review) This section reviews significant changes and trends in the company's assets, liabilities, and equity over the reporting period - Total assets increased to **$7.4 billion** as of March 31, 2021, with shareholders' equity remaining stable at **$4.7 billion**, as net income was offset by a decrease in unrealized investment gains and dividend payments[315](index=315&type=chunk) - Loss reserves increased by **4%** to **$913 million** as of March 31, 2021, from **$881 million** at year-end 2020, primarily due to reserves established on new delinquency notices received during the quarter[320](index=320&type=chunk) [Liquidity and Capital Resources](index=57&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's cash position, funding sources, and capital adequacy, including regulatory capital metrics - The holding company had approximately **$802 million** in cash and investments as of March 31, 2021, with no dividends received from the insurance subsidiary MGIC in Q1 2021[332](index=332&type=chunk)[334](index=334&type=chunk) - The combined insurance companies' risk-to-capital ratio improved to **8.8:1** at March 31, 2021, from **9.1:1** at year-end 2020, primarily due to an increase in the statutory policyholders' position[349](index=349&type=chunk) - Reinsurance transactions provided an aggregate of approximately **$1.8 billion** of capital credit under the PMIERs as of March 31, 2021[339](index=339&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=61&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's investment portfolio is primarily exposed to credit spread risk and interest rate risk, with credit risk managed through investment policies favoring investment-grade securities, and interest rate risk quantified by a modified duration of 4.5 years for the fixed income portfolio as of March 31, 2021 - The fixed income investment portfolio had a modified duration of **4.5 years** as of March 31, 2021, implying that a **1% (100 basis points)** increase in interest rates would result in a **4.5% decrease** in the portfolio's fair value[365](index=365&type=chunk) [Item 4. Controls and Procedures](index=61&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the principal executive and financial officers, evaluated the company's disclosure controls and procedures and concluded they were effective as of March 31, 2021, with no material changes to internal control over financial reporting occurring during the first quarter of 2021 - Based on an evaluation as of the end of the reporting period, the principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective[366](index=366&type=chunk) [PART II — OTHER INFORMATION](index=62&type=section&id=PART%20II%20%E2%80%94%20OTHER%20INFORMATION) This section covers legal proceedings, key risk factors, details on equity security sales, and a list of filed exhibits [Item 1. Legal Proceedings](index=62&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in certain legal proceedings that arise in the ordinary course of business, with further details provided in Note 5 to the consolidated financial statements and in the Risk Factors section - The company states that legal proceedings arise in the ordinary course of business and refers to Note 5 and risk factors for more information[368](index=368&type=chunk) [Item 1A. Risk Factors](index=62&type=section&id=Item%201A.%20Risk%20Factors) This section highlights key risks, with a significant focus on the ongoing impacts of the COVID-19 pandemic, which may continue to materially affect financial results through increased incurred losses from higher delinquencies and potential increases in capital requirements under PMIERs, alongside other major risks including economic downturns, changes in GSE business practices and regulations, competition, and the transition away from LIBOR - The COVID-19 pandemic is a primary risk factor, potentially leading to increased incurred losses, higher capital requirements under PMIERs, and a greater number of claims paid over time[370](index=370&type=chunk)[371](index=371&type=chunk) - The PMIERs' **70% reduction** in Minimum Required Assets for certain COVID-19 related delinquencies is temporary, meaning as forbearance plans expire, the company's Minimum Required Assets will increase, reducing its excess capital position, with this reduction decreasing Minimum Required Assets by approximately **$700 million** (from **$3.9 billion** to **$3.2 billion**) as of March 31, 2021[382](index=382&type=chunk) - The elimination of the **"GSE Patch"** for QM loans, effective for applications after July 1, 2021, will change underwriting standards, and while approximately **20%** of Q1 2021 NIW had DTI ratios over **43%**, the company believes less than **2%** would be excluded under the new pricing threshold[392](index=392&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=70&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase any of its common stock during the three months ended March 31, 2021, with approximately $291 million remaining available for future repurchases under the program authorized through the end of 2021, which was temporarily suspended due to COVID-19 uncertainty | Period | Total shares purchased | Average price paid per share | Approximate dollar value of shares that may yet be purchased (in US Dollars) | | :--- | :--- | :--- | :--- | | Q1 2021 | 0 | $0 | $290,818,024 | [Item 6. Exhibits](index=73&type=section&id=Item%206.%20Exhibits) This section provides an index of all exhibits filed as part of the Form 10-Q, including certifications by the CEO and CFO, and updated risk factors - An index of exhibits filed with the Form 10-Q is provided, including Sarbanes-Oxley certifications and updated Risk Factors[443](index=443&type=chunk)

MGIC MGIC Investment Corporation Quarterly Supplement Q4 2020 NYSE: MTG Forward Looking Statements As used below, "we," "our" and "us" refer to MGIC Investment Corporation's consolidated operations or to MGIC Investment Corporation, as the context requires, and "MGIC" refers to Mortgage Guaranty Insurance Corporation. This presentation may contain forward looking statements. Our actual results could be affected by the risks associated with the COVID-19 pandemic, and by the other risk factors affecting the c ...

MGIC Investment Corporation (NYSE:MTG) Q4 2020 Results Conference Call February 24, 2021 10:00 AM ET Company Participants Mike Zimmerman - SVP, IR Tim Mattke - CEO Nathan Colson - CFO Conference Call Participants Mark DeVries - Barclays Doug Harter - Credit Suisse Jack Micenko - SIG Randy Binner - B. Riley Bose George - KBW Giuliano Bologna - Compass Point Mihir Bhatia - Bank of America Phil Stefano - Deutsche Bank Operator Ladies and gentlemen, thank you for standing by. Welcome to MGIC Investment Corporat ...

FORM 10-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 MGIC Investment Corporation (Exact name of registrant as specified in its charter) Wisconsin 39-1486475 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 250 E. Kilbourn Avenue 53202 Milwaukee, Wisconsin (Zip Code) (Address of principal executive offices) (414) 347-6480 (Registrant's telephone number, including area code) Securities registered pursuant to Section 12(b) of the A ...