Financial Performance - Third Quarter 2024 net income was $200.0 million, or $0.77 per diluted share, compared to $182.8 million, or $0.64 per diluted share in Q3 2023, reflecting a 9.5% year-over-year increase in net income[1][3][19] - Net income for Q3 2024 was $199,969,000, an increase of 9.6% compared to $182,844,000 in Q3 2023[20] - Diluted net income per share rose to $0.77 in Q3 2024 from $0.64 in Q3 2023, reflecting a 20.3% increase[21] - The company reported net premiums earned of $243.3 million in Q3 2024, compared to $241.3 million in Q3 2023, indicating a modest growth[3][19] - The loss ratio for Q3 2024 was (4.0%), an improvement from (0.0%) in Q3 2023, indicating better loss management[3] - Total assets increased to $6,677,784,000 as of September 30, 2024, compared to $6,538,380,000 at the end of 2023, marking a growth of 2.1%[23] - Total liabilities decreased to $1,383,708,000 as of September 30, 2024, down from $1,466,363,000 at the end of 2023, a reduction of 5.6%[24] Insurance Metrics - New insurance written (NIW) for Q3 2024 was $17.2 billion, up from $14.6 billion in Q3 2023, representing a 17.8% increase[3] - New primary insurance written (NIW) reached $17.2 billion in Q3 2024, up from $14.6 billion in Q3 2023, representing an 17.8% increase[25] - New primary risk written was $4.5 billion in Q3 2024, compared to $3.5 billion in Q2 2024, showing a 28.6% increase[25] - The percentage of new primary insurance written with FICO scores below 680 remained stable at 4% for both Q3 2024 and Q3 2023[25] - Primary Insurance In Force (IIF) for Q3 2024 is $292.8 billion, a decrease from $294.3 billion in Q3 2023[26] - The primary IIF delinquency rate increased to 2.24% in Q3 2024 from 2.14% in Q3 2023[3] - The primary average direct reserve per delinquency decreased to $18,232 in Q3 2024 from $20,307 in Q2 2024[29] Shareholder Returns - MGIC paid a dividend of $0.13 per common share in Q3 2024 and repurchased 5.2 million shares for $122.9 million[5] - In the twelve months ended September 30, 2024, the company paid $650 million in dividends to the holding company, with future payments subject to regulatory approval[143] Capital and Liquidity - Holding company liquidity was reported at $841 million as of September 30, 2024, compared to $723 million a year earlier[4] - As of September 30, 2024, MGIC's Available Assets totaled $6.0 billion, exceeding the Minimum Required Assets by $2.5 billion[52] - MGIC's risk-to-capital ratio was 9.6 to 1 as of September 30, 2024, which is below the maximum allowed by jurisdictions with State Capital Requirements[73] - The company has agreed to a 40% quota share transaction with unaffiliated reinsurers covering most of its 2025 and 2026 NIW[6] Delinquency and Claims - The primary delinquency inventory increased to 25,089, up from 24,720 in Q3 2023, while the primary IIF delinquency rate rose to 2.24% from 2.14% in Q3 2023[3] - Beginning delinquent inventory for Q3 2024 is 23,370, an increase from 24,142 in Q2 2024[28] - New notices for delinquency increased to 13,679 in Q3 2024 from 11,444 in Q2 2024, representing a 19.5% increase[28] - Ending delinquent inventory rose to 25,089 in Q3 2024, up from 23,370 in Q2 2024, indicating a 7.4% increase[28] - Net paid claims for Q3 2024 were $10 million, down from $12 million in Q2 2024[29] Regulatory and Market Environment - The GSEs' updated Equitable Housing Finance Plans published in spring 2024 may impact mortgage insurance practices and revenues[39] - The proposed regulatory capital rule by the Federal Reserve could negatively impact new insurance written (NIW) if adopted, although the extent of the impact remains uncertain[82] - The company is subject to comprehensive regulation, which may impact its ability to write new insurance if it fails to meet State Capital Requirements[75] - The revised Mortgage Guaranty Insurance Model Act adopted by the NAIC includes new capital and minimum capital requirements, which may affect MGIC's operations[74] Risk Factors - Changes in claim rate and claim severity estimates could materially impact MGIC's future results, even in stable economic conditions[57] - Cybersecurity threats are increasing in frequency and sophistication, posing risks to the company's information security and operational integrity[100] - The company's risk management programs may not effectively identify or mitigate risks, potentially impacting financial results[92] - The company faces potential adverse effects on operations from unauthorized disclosures of information or cyber attacks, which may not be fully recoverable through insurance[102] Market Trends - The FHA's share of low down payment residential mortgages was 33.2% in 2023, up from 26.7% in 2022 and 24.7% in 2021, indicating a significant increase in government-supported mortgage insurance market share[80] - The VA's market share of low down payment residential mortgages decreased to 21.5% in 2023 from 24.5% in 2022 and 30.2% in 2021, reflecting a downward trend[81] - The market price of the company's common stock may fluctuate significantly due to various factors, including economic conditions and changes in operating performance[148]

MGIC Investment (MTG) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices. The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate. The power of a cha ...

Shares of MGIC Investment Corporation (MTG) closed at $25.30 on Tuesday, near its 52-week high of $25.93. Solid insurance in force, a decline in loss and claims payments, lower delinquency, better housing market fundamentals and prudent capital deployment are driving the price higher. Given the strong purchase market and potential share gains from the Federal Housing Administration, MGIC Investment expects strong premium writing. Increased persistency rate should continue to boost insurance in force. Shares ...

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. Even though momentum is a popular stock cha ...

After an initial setback at the beginning of the month, the broader U.S. equity markets witnessed a steady uptrend over the past few days as the technology stocks appeared to regain the lost ground. The stock market rally was further propelled by cooling inflation, with data from the U.S. Consumer Price Index revealing that the 12-month inflation rate declined to 2.5% in August – the lowest level since February 2021. This was followed by another healthy economic data that portrayed that the Producer Price I ...

It has been about a month since the last earnings report for MGIC Investment (MTG) . Shares have added about 2.7% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is MGIC due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. MGIC Investment Beats Q2 Earnings, Raises Divide ...

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. Even though momentum is a popular stock cha ...

Shares of MGIC Investment Corporation (MTG) have rallied 23.8% year to date, outperforming the industry's growth of 12.7%, the Finance sector's rise of 10.4% and the Zacks S&P 500 composite's increase of 16.8%. With a market capitalization of $6.2 billion, the average volume of shares traded in the last three months was 1.7 million. Solid insurance in force, a decline in loss and claims payments, lower delinquency, better housing market fundamentals and prudent capital deployment drive this Zacks Rank #1 (S ...

Investors might want to bet on MGIC Investment (MTG) , as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook. Analysts' growing optimism on the earnings prospects of this mortgage insurance company is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in ...

MGIC Investment Corporation (MTG) reported second-quarter 2024 operating net income per share of 77 cents, which beat the Zacks Consensus Estimate by 24.2%. Moreover, the bottom line increased 13.2% year over year. MGIC Investment recorded total operating revenues of $306 million, which increased 3.4% year over year on higher net investment income, other revenues and premiums earned. The top line beat the consensus mark by 0.6%. The quarterly results reflected higher premiums written, improved net investmen ...