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 ...

MGIC MGIC Investment Corporation Portfolio Supplement Q3 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 which are discussed, and by the other risk fac ...

MGIC Investment Corporation (NYSE:MTG) Q3 2020 Earnings Conference Call November 5, 2020 10:00 AM ET Company Participants Mike Zimmerman ??? Senior Vice President, Investor Relations Tim Mattke ??? Chief Executive Officer and Director Nathan Colson ??? Executive Vice President and Chief Financial Officer Conference Call Participants Sam Choe ??? Credit Suisse Bose George ??? KBW Randy Binner ??? B. Riley Jack Micenko ??? SIG Mark DeVries ??? Barclays Mihir Bhatia ??? Bank of America Geoffrey Dunn ??? Dowlin ...

FORM 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission file number 1-10816 MGIC Investment Corporation (Exact name of registrant as specified in its charter) Wisconsin 39-1486475 (State or other ...

Financial Data and Key Metrics Changes - GAAP net income for Q2 2020 was $14 million, a significant decrease from $168 million in the same period last year, primarily due to increased loss reserves related to COVID-19 [12][20] - Net premiums earned increased by 1%, while the net premium yield declined to 42.7 basis points from 46.5 basis points year-over-year [20][21] - Net losses incurred were $217 million compared to $22 million for the same period last year, with approximately 58,000 new delinquency notices received compared to 13,000 in the same period last year [24] Business Line Data and Key Metrics Changes - The company wrote $28 billion of new insurance in Q2 2020, with insurance in force increasing by approximately 8% year-over-year despite lower persistency [13] - Refinanced transactions as a percentage of monthly new business writing peaked at approximately 44% in April and May, then decreased to 33% in July as demand for purchase mortgages increased [14] Market Data and Key Metrics Changes - The delinquency rate ended the quarter at 6.35%, with 67% of June 30 delinquency inventory and 80% of June new delinquency notices reported as COVID-19-related forbearance plans [18] - There were 38% fewer delinquency notices in June compared to May, indicating a potential improvement in the delinquency situation [18] Company Strategy and Development Direction - The company continues to operate in a remote work environment while providing critical support to the housing market, particularly for first-time homebuyers [10] - The focus remains on working with GSEs and servicers on loss avoidance programs, offering competitive products, and maintaining a sharp focus on capital management [10][41] Management's Comments on Operating Environment and Future Outlook - Management expressed uncertainty about future mortgage origination levels and credit performance due to the ongoing impact of COVID-19 on economic conditions [15] - The company entered this period with strong credit characteristics and a low debt-to-capital ratio, with available assets exceeding minimum required assets by $1.1 billion [16][32] Other Important Information - The company did not request or pay a dividend to the holding company in Q2, with future dividend payments to be determined quarterly based on economic conditions [29] - The consolidated cash and investments totaled $6.3 billion at the end of Q2 2020, with a debt-to-total capital ratio of approximately 17% [31][32] Q&A Session Summary Question: What is the total delinquency portfolio from a forbearance standpoint? - Management indicated they are still reviewing forbearance-related information and do not have an update on the composition of new notices in cures relative to forbearance [44] Question: What drove the change in the claim rate assumption from 9% to 7%? - Management noted that the improvement was due to more formalized forbearance options and economic conditions, which benefited the claim rate [46] Question: How is pricing trending in the second quarter? - Management stated they are focused on competitive premium rates while prudently growing insurance in force and long-term value [50] Question: What happens to the 70% discount after the forbearance period? - Management clarified that the 70% haircut applies for at least three months for delinquencies and continues during the forbearance period [57][94] Question: How does the company view the ILN market? - Management expressed that while the terms are less attractive than pre-COVID, they continue to evaluate the market for potential opportunities [58] Question: What is the mark-to-market LTV for older books? - Management indicated that delinquencies have picked up but significantly less than previous years, with mark-to-market LTVs below 70% for older books [60][68]

FORM 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission file number 1-10816 MGIC Investment Corporation (Address of principal executive offices) (414) 347-6480 (Registrant's telephone number, including ...