Financial Data and Key Metrics Changes - The company reported a GAAP net income of $249 million for Q2 2022, compared to $153 million in the same period last year, representing a significant increase [11][22] - The annualized return on equity was 21.6%, indicating strong financial performance [11] - Book value per common share decreased from $15.18 at the end of 2021 to $14.97 by June 30, 2022, primarily due to unrealized losses from rising interest rates [23] Business Line Data and Key Metrics Changes - Insurance in force increased to over $287 billion, a 9.5% increase year-over-year and a 3.4% increase from the previous quarter [12] - Net premiums earned rose to $256 million, up from $252 million in the same quarter last year, driven by increased insurance in force [25] - The net premium yield for Q2 was 36.2 basis points, down from 39.4 basis points in the previous quarter and 42.6 basis points a year ago [25] Market Data and Key Metrics Changes - The company noted a decrease in new insurance written due to lower mortgage origination forecasts amid rising interest rates [14] - The delinquency inventory decreased by 12.4% to 26,900 loans, marking the eighth consecutive quarter of decline from the pandemic peak [26] Company Strategy and Development Direction - The company aims to maintain financial strength and flexibility while returning capital to shareholders through stock repurchases and dividends [10][13] - The strategy includes deploying capital for growth while managing risks associated with changing market conditions [13][14] - The company is optimistic about long-term opportunities in the mortgage insurance sector despite current market challenges [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning despite potential risks from rising inflation and interest rates [37] - The company anticipates that the mortgage insurance business is well-hedged against interest rate changes, with increasing persistency in insurance in force [16][17] - Management highlighted the importance of demographic trends for long-term growth opportunities in the mortgage insurance market [16] Other Important Information - The company repurchased 35 million shares for $513 million and paid $104 million in dividends, reflecting a commitment to returning capital to shareholders [32] - Moody's upgraded the company's senior debt rating to Baa3 and its insurance financial strength rating to A3, citing improved market conditions and strong underwriting discipline [33] Q&A Session Summary Question: Comments on pricing strategy and observations from competitors - Management indicated a selective approach to pricing, focusing on risk-return dynamics and adapting to market conditions [42][43] Question: Share repurchase cadence and debt-to-capital ratio outlook - Management confirmed a target debt-to-capital ratio in the low to mid-teens, with ongoing share repurchase activities funded by dividends from the operating company [45][46] Question: Outlook on premium yields and factors influencing changes - Management noted a slight decline in premium yields but expected the overall trend to be better than initially anticipated [50][52] Question: Reserve activity outlook amid macro conditions - Management indicated that reserve development would depend on ongoing cure activity and market conditions, with a focus on maintaining strong underwriting standards [53][54] Question: Insights on market share and bulk market movements - Management suggested that their market share may have increased slightly, maintaining a consistent range over the past few years [56][57] Question: Credit trends and potential housing market slowdown - Management reported no significant credit concerns but acknowledged the possibility of moderating home price appreciation [64][66] Question: Delinquency trends normalization - Management confirmed that new delinquency notices are below pre-pandemic levels, indicating favorable trends [68] Question: Expense guidance and investment outlook - Management maintained the expense guidance for 2022 while indicating potential for a downward trend in the expense ratio in subsequent years [70][72]

PART I — FINANCIAL INFORMATION [Financial Statements](index=8&type=section&id=Item%201.%20Financial%20Statements) Unaudited statements show higher net income from negative loss provisions, offset by lower assets from investment losses and active capital management [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) Total assets declined to $6.60 billion due to investment losses, while liabilities and equity also decreased Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2022 (Unaudited) | December 31, 2021 | | :--- | :--- | :--- | | **Total Assets** | **$6,599,607** | **$7,325,008** | | Total investment portfolio | $5,728,151 | $6,606,749 | | Cash and cash equivalents | $410,188 | $284,690 | | **Total Liabilities** | **$2,026,588** | **$2,463,626** | | Loss reserves | $727,178 | $883,522 | | Long-term debt (Senior notes & Debentures) | $917,911 | $1,146,712 | | **Total Shareholders' Equity** | **$4,573,019** | **$4,861,382** | [Consolidated Statements of Operations](index=9&type=section&id=Consolidated%20Statements%20of%20Operations) Net income rose to $249.3 million in Q2 2022, driven by a significant reduction in net losses incurred Consolidated Statements of Operations Highlights (in thousands, except per share data) | Metric | Q2 2022 | Q2 2021 | YTD 2022 | YTD 2021 | | :--- | :--- | :--- | :--- | :--- | | Net premiums earned | $255,697 | $251,539 | $510,937 | $506,584 | | Total revenues | $293,116 | $297,852 | $587,732 | $595,809 | | Losses incurred, net | $(99,058) | $29,164 | $(118,372) | $68,800 | | Loss on debt extinguishment | $6,391 | $— | $28,498 | $— | | **Net income** | **$249,268** | **$153,051** | **$424,281** | **$303,072** | | **Diluted EPS** | **$0.80** | **$0.44** | **$1.34** | **$0.87** | [Notes to Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail debt management, reinsurance programs, favorable loss reserve development, and share repurchase activities - During the first half of 2022, the company repurchased **$74.9 million** in principal of its 9% Debentures, resulting in a **$27.2 million loss** on debt extinguishment, and also repaid a **$155.0 million** FHLB Advance[54](index=54&type=chunk)[55](index=55&type=chunk) - The company utilizes extensive Quota Share Reinsurance (QSR) and Excess of Loss (XOL) reinsurance transactions to manage risk and capital, with QSR deals covering a weighted average of **30% of RIF**[60](index=60&type=chunk)[76](index=76&type=chunk)[272](index=272&type=chunk) - For the six months ended June 30, 2022, the company experienced **favorable loss development of $186.6 million** on prior-year delinquencies, primarily from better-than-expected cures[147](index=147&type=chunk)[151](index=151&type=chunk) - In the first six months of 2022, the company repurchased **15.7 million shares** of common stock for approximately **$222 million**, with **$278 million** remaining under the authorization[163](index=163&type=chunk)[192](index=192&type=chunk) - At June 30, 2022, MGIC's risk-to-capital ratio was **9.7 to 1**, and its policyholder position was **$3.5 billion** above the required Minimum Policyholder Position (MPP)[170](index=170&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=34&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Strong Q2 2022 net income was driven by favorable loss development, despite lower NIW, while maintaining a robust capital position [Overview](index=35&type=section&id=Overview) Q2 2022 net income rose to $249.3 million due to favorable loss development, with a PMIERs surplus of $2.6 billion Q2 2022 vs Q2 2021 Financial Summary (in millions) | Metric | Q2 2022 | Q2 2021 | % Change | | :--- | :--- | :--- | :--- | | Net Income | $249.3 | $153.1 | 63% | | Diluted EPS | $0.80 | $0.44 | 82% | | Losses incurred, net | $(99.1) | $29.2 | (439)% | - The decrease in losses incurred was due to **favorable development of approximately $130.9 million** from greater-than-expected cures on prior delinquencies[182](index=182&type=chunk) - As of June 30, 2022, MGIC's Available Assets under PMIERs totaled **$5.8 billion**, which was **$2.6 billion in excess** of its Minimum Required Assets[194](index=194&type=chunk) [Mortgage Insurance Portfolio](index=42&type=section&id=Mortgage%20Insurance%20Portfolio) New Insurance Written (NIW) decreased to $24.3 billion in Q2 2022, while persistency and credit quality remained strong New Insurance Written (NIW) (in billions) | Period | NIW | | :--- | :--- | | Q2 2022 | $24.3 | | Q2 2021 | $33.6 | | YTD 2022 | $43.9 | | YTD 2021 | $64.4 | - The percentage of NIW from purchase transactions increased to **98.2% in Q2 2022** from 79.3% in Q2 2021, while refinances dropped to **1.8%** from 20.7%[245](index=245&type=chunk) - Persistency, the percentage of insurance remaining in force from one year prior, increased to **71.5%** at June 30, 2022, compared to 57.1% at June 30, 2021[247](index=247&type=chunk) [Consolidated Results of Operations](index=44&type=section&id=Consolidated%20Results%20of%20Operations) Slightly lower Q2 revenues were offset by negative net incurred losses, resulting in a (38.7)% loss ratio Premium Yield Drivers (in basis points) | Component | Q2 2022 | Q2 2021 | | :--- | :--- | :--- | | In force portfolio yield | 39.4 | 42.6 | | Accelerated earnings on single premium policies | 1.1 | 3.1 | | Ceded premiums earned, net | (4.5) | (6.4) | | **Net premium yield** | **36.2** | **39.1** | - Losses incurred were **negative $(99.0) million** in Q2 2022, composed of $31.9 million from new notices and **$(130.9) million in favorable prior year reserve development**[288](index=288&type=chunk) - The primary delinquency inventory **decreased by 37.5% year-over-year** to 26,855 loans at June 30, 2022[292](index=292&type=chunk)[305](index=305&type=chunk) [Balance Sheet Review](index=55&type=section&id=Balance%20Sheet%20Review) Total assets fell to $6.6 billion due to investment markdowns, while liabilities decreased from lower loss reserves and debt - Investments decreased by **13% to $5.7 billion** from $6.6 billion at year-end 2021, primarily due to a decrease in fair value from rising interest rates[323](index=323&type=chunk) - Loss reserves decreased by **18% to $727 million** from $884 million at year-end 2021, driven by favorable development on prior delinquencies[329](index=329&type=chunk) - Long-term debt decreased **20% to $917.9 million** from $1,146.7 million at year-end 2021, following debt repurchases and repayments[330](index=330&type=chunk) [Liquidity and Capital Resources](index=56&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintained strong liquidity and capital, executing significant share repurchases and debt redemptions H1 2022 Holding Company Cash Flows (in millions) | Inflows | Amount | Outflows | Amount | | :--- | :--- | :--- | :--- | | Dividends received from MGIC | $400.0 | Share repurchases | $221.9 | | Intercompany tax receipts | $32.7 | 9% Debenture repurchases | $102.0 | | Investment income | $3.9 | Dividends paid to shareholders | $50.8 | | | | Interest payments | $28.5 | - In July 2022, the company redeemed the **$242.3 million** of outstanding 5.75% Senior Notes due in 2023[337](index=337&type=chunk)[344](index=344&type=chunk) - As of June 30, 2022, MGIC's Available Assets under PMIERs were approximately **$5.8 billion**, an excess of **$2.6 billion** over its Minimum Required Assets[349](index=349&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=59&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risk is interest rate and credit spread risk within its fixed income portfolio - The fixed income investment portfolio's modified duration was **4.6 years** as of June 30, 2022[367](index=367&type=chunk) [Controls and Procedures](index=59&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2022 - The principal executive officer and principal financial officer concluded that **disclosure controls and procedures were effective** as of the end of Q2 2022[368](index=368&type=chunk) PART II — OTHER INFORMATION [Legal Proceedings](index=60&type=section&id=Item%201.%20Legal%20Proceedings) The company is monitoring litigation related to premium refunds but does not expect a material adverse effect - The company is monitoring litigation involving refunds of mortgage insurance premiums under the Homeowners Protection Act and expects to be named as a third-party defendant in one case[379](index=379&type=chunk) [Risk Factors](index=60&type=section&id=Item%201A.%20Risk%20Factors) Key risks include potential changes in GSE policies, legal proceedings, and the mix of business written - The GSEs' Equitable Housing Finance Plans may negatively impact the mortgage insurance industry through **potential changes to MI requirements and cancellation policies**[372](index=372&type=chunk) - The company's NIW on mortgages with **LTV ratios >95% increased to 13%** in H1 2022 from 10% in H1 2021, and NIW on mortgages with **DTI ratios >45% increased to 19%** from 13%[389](index=389&type=chunk) [Issuer Purchases of Equity Securities](index=63&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 7.1 million shares in Q2 2022, with $278 million remaining under its authorization Share Repurchases for Q2 2022 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2022 | 2,980,136 | $13.32 | | May 2022 | 1,889,445 | $13.40 | | June 2022 | 2,275,902 | $12.85 | | **Total Q2** | **7,145,483** | **$13.19** |

MGIC Investment Corporation (NYSE:MTG) Q1 2022 Earnings Conference Call May 5, 2022 10:00 AM ET Company Participants Michael Zimmerman - Senior Vice President of Investor Relations Tim Mattke - Chief Executive Officer Nathan Colson - Chief Financial Officer Conference Call Participants Mark Dwelle - RBC Capital Markets Bose George - KBW Geoffrey Dunn - Dowling & Partners Doug Harter - Credit Suisse Operator Good day, and thank you for standing by. Welcome to the MGIC Investment Corporation First Quarter 202 ...

PART I [Item 1. Financial Statements](index=11&type=section&id=Item%201.%20Financial%20Statements) The financial statements present MGIC's financial position as of March 31, 2022, and results of operations for the first quarter, highlighting increased net income and a decrease in total assets and shareholders' equity | Financial Metric | Q1 2022 (in thousands) | Q1 2021 (in thousands) | | :--- | :--- | :--- | | **Total Revenues** | $294,616 | $297,957 | | **Losses Incurred, Net** | $(19,314) | $39,636 | | **Net Income** | $175,013 | $150,021 | | **Diluted EPS** | $0.54 | $0.43 | | Balance Sheet Item | March 31, 2022 (in thousands) | Dec 31, 2021 (in thousands) | | :--- | :--- | :--- | | **Total Assets** | $6,844,801 | $7,325,008 | | **Total Liabilities** | $2,234,446 | $2,463,626 | | **Total Shareholders' Equity** | $4,610,355 | $4,861,382 | | Cash Flow Activity | Q1 2022 (in thousands) | Q1 2021 (in thousands) | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | $228,011 | $198,033 | | **Net Cash from Investing Activities** | $349,440 | $(274,499) | | **Net Cash from Financing Activities** | $(392,512) | $(27,448) | [Note 3 - Debt](index=18&type=section&id=Note%203%20-%20Debt) Total long-term debt decreased to $935.3 million from $1,146.7 million at year-end 2021, primarily due to debt repurchases and repayments - In Q1 2022, the company repurchased **$57.0 million** of its 9% Debentures, resulting in a **$20.8 million loss** on debt extinguishment and reducing potentially dilutive shares by approximately **4.4 million**[55](index=55&type=chunk) - The company repaid the outstanding principal balance of the FHLB Advance for **$156.3 million** in Q1 2022, which included a **$1.3 million prepayment fee**[56](index=56&type=chunk) Long-term Debt Obligations | Debt Instrument | March 31, 2022 (in millions) | Dec 31, 2021 (in millions) | | :--- | :--- | :--- | | FHLB Advance | $— | $155.0 | | 5.75% Notes, due 2023 | $241.4 | $241.3 | | 5.25% Notes, due 2028 | $640.6 | $640.2 | | 9% Debentures, due 2063 | $53.3 | $110.2 | | **Total Carrying Value** | **$935.3** | **$1,146.7** | [Note 4 - Reinsurance](index=19&type=section&id=Note%204%20-%20Reinsurance) The company utilizes both Quota Share and Excess of Loss reinsurance to manage risk and capital, with significant ceded premiums and favorable loss development in Q1 2022 Reinsurance Impact on Premiums and Losses (Q1 2022 vs Q1 2021) | (In thousands) | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | **Net Premiums Earned** | $255,240 | $255,045 | | Ceded Premiums Earned | $(34,159) | $(43,637) | | **Losses Incurred, Net** | $(19,314) | $39,636 | | Ceded Losses Incurred | $1,985 | $(8,410) | - Under QSR transactions in Q1 2022, the company received a profit commission of **$39.0 million** and ceding commissions of **$12.3 million**[70](index=70&type=chunk) - As of March 31, 2022, "Trigger Events" were active on the Home Re 2018-1, 2019-1, and 2021-2 transactions, suspending principal payments and preserving available reinsurance coverage[76](index=76&type=chunk) - In April 2022, MGIC entered into a new **$473.6 million** excess-of-loss reinsurance agreement covering policies written from May 29, 2021, through December 31, 2021[79](index=79&type=chunk) [Note 7 - Investments](index=27&type=section&id=Note%207%20-%20Investments) The total investment portfolio decreased in fair value to $5.95 billion, primarily due to a significant increase in gross unrealized losses on fixed income securities driven by rising interest rates Investment Portfolio Composition (Fair Value) | (In thousands) | March 31, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | Fixed income, available-for-sale | $5,935,916 | $6,587,581 | | Equity securities | $15,191 | $16,068 | | Other invested assets | $850 | $3,100 | | **Total Investment Portfolio** | **$5,951,957** | **$6,606,749** | - Gross unrealized losses on fixed income securities increased significantly to **$206.2 million** as of March 31, 2022, from **$28.5 million** at year-end 2021, primarily due to an increase in prevailing interest rates[96](index=96&type=chunk)[97](index=97&type=chunk)[108](index=108&type=chunk) [Note 11 - Loss Reserves](index=35&type=section&id=Note%2011%20-%20Loss%20Reserves) Net loss reserves decreased to $786.6 million, marked by a significant favorable loss development of $55.7 million on prior-year delinquencies, particularly from "Peak COVID-19" cases - For Q1 2022, the company experienced favorable loss development of **$55.7 million** on previously received notices, primarily due to a decreased estimated claim rate on Peak COVID-19 delinquencies[145](index=145&type=chunk)[150](index=150&type=chunk) Loss Reserve Reconciliation (Net of Reinsurance) | (In thousands) | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | **Net Reserve at Beginning of Period** | **$816,617** | **$785,495** | | Total Losses Incurred | $(19,314) | $39,636 | | Total Losses Paid | $10,748 | $14,922 | | **Net Reserve at End of Period** | **$786,555** | **$810,209** | Delinquency Inventory Rollforward | Metric | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | Beginning Inventory | 33,290 | 57,710 | | New Notices | 10,703 | 13,011 | | Cures | (13,200) | (17,628) | | **Ending Inventory** | **30,462** | **52,775** | [Note 12 - Shareholders' Equity](index=38&type=section&id=Note%2012%20-%20Shareholders'%20Equity) During Q1 2022, the company executed significant capital return activities, repurchasing 8.5 million shares for $127.6 million and paying $25.8 million in cash dividends - In Q1 2022, the company repurchased **8.5 million shares** at an average cost of **$14.99 per share**, for a total of **$127.6 million**[160](index=160&type=chunk) - A quarterly cash dividend of **$0.08 per share** (**$25.8 million** total) was paid in March 2022, with another **$0.08 per share** dividend declared on April 28, 2022[161](index=161&type=chunk) [Note 14 - Statutory Information](index=39&type=section&id=Note%2014%20-%20Statutory%20Information) MGIC remains well-capitalized under statutory requirements, with a risk-to-capital ratio of 9.2 to 1 and a policyholder position $3.7 billion above the required minimum - As of March 31, 2022, MGIC's risk-to-capital ratio was **9.2 to 1**, and its policyholder position was **$3.7 billion** above the required Minimum Policyholder Position (MPP) of **$1.9 billion**[167](index=167&type=chunk) - In April 2022, MGIC obtained approval from the Office of the Commissioner of Insurance (OCI) to pay a **$400 million** dividend to its holding company[169](index=169&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=41&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reported a net income of $175.0 million for Q1 2022, driven by a net benefit from losses incurred, despite lower New Insurance Written and higher operating expenses Summary Financial Results | (In millions, except per share) | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | Net Income | $175.0 | $150.0 | | Diluted EPS | $0.54 | $0.43 | | Losses Incurred, Net | $(19.3) | $39.6 | | Loss on Debt Extinguishment | $22.1 | $— | - Adjusted net operating income for Q1 2022 was **$192.9 million**, or **$0.60 per diluted share**, compared to **$148.0 million**, or **$0.42 per diluted share**, in Q1 2021[179](index=179&type=chunk) - MGIC's Available Assets under PMIERs totaled **$6.0 billion**, which is **$2.4 billion** in excess of its Minimum Required Assets as of March 31, 2022[186](index=186&type=chunk) [Mortgage Insurance Portfolio](index=49&type=section&id=Mortgage%20Insurance%20Portfolio) The mortgage insurance portfolio experienced a significant decline in New Insurance Written (NIW) to $19.6 billion due to reduced refinance activity, while persistency improved and primary Insurance in Force grew - New Insurance Written (NIW) for Q1 2022 was **$19.6 billion**, a decrease from **$30.8 billion** in Q1 2021, primarily due to a decrease in refinance transactions[227](index=227&type=chunk) Primary NIW by Type of Mortgage | (% of primary NIW) | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | Purchases | 94.2% | 59.7% | | Refinances | 5.8% | 40.3% | - Persistency increased to **66.9%** at March 31, 2022, compared to **56.2%** at March 31, 2021, indicating fewer policy cancellations[235](index=235&type=chunk) [Consolidated Results of Operations](index=51&type=section&id=Consolidated%20Results%20of%20Operations) Total revenues for Q1 2022 were $294.6 million, with a significant net benefit from losses incurred of $(19.3) million, resulting in a negative loss ratio of (7.6)% Premium Yield Analysis | (in basis points) | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | In force portfolio yield | 40.0 | 43.9 | | Ceded premiums impact | (4.6) | (6.6) | | **Net premium yield** | **36.9** | **40.9** | Composition of Losses Incurred | (in millions) | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | Current year / New notices | $36.3 | $41.4 | | Prior year reserve development | $(55.7) | $(1.8) | | **Losses incurred, net** | **$(19.3)** | **$39.6** | - The loss ratio was **(7.6%)** for Q1 2022, compared to **15.5%** for Q1 2021, due to the decrease in net losses incurred[273](index=273&type=chunk) [Balance Sheet Review](index=60&type=section&id=Balance%20Sheet%20Review) The balance sheet reflects a decrease in total assets to $6.8 billion, driven by a $650 million reduction in the investment portfolio's fair value and a $211 million reduction in long-term debt - The investment portfolio decreased to **$6.0 billion** from **$6.6 billion** at year-end, primarily due to a decrease in fair value from rising interest rates and the use of funds for debt reduction and capital returns[313](index=313&type=chunk) - Long-term debt decreased to **$935.3 million** from **$1,146.7 million** at year-end, following the repurchase of 9% Debentures and repayment of the FHLB Advance[312](index=312&type=chunk) - Loss reserves decreased by **4%** to **$851 million**, primarily due to favorable development on reserves for Peak COVID-19 delinquencies[309](index=309&type=chunk) [Liquidity and Capital Resources](index=63&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintained strong liquidity and capital, with the holding company holding $409 million in cash and investments, and MGIC exceeding PMIERs requirements by $2.4 billion - As of March 31, 2022, the holding company had approximately **$409 million** in cash and investments[323](index=323&type=chunk) - Significant Q1 2022 cash outflows from financing activities included **$123.6 million** for share repurchases, **$77.7 million** for 9% Debenture repurchases, and repayment of the **$155 million** FHLB Advance[321](index=321&type=chunk)[325](index=325&type=chunk)[333](index=333&type=chunk) - As of March 31, 2022, MGIC had an excess of approximately **$2.4 billion** over its PMIERs Minimum Required Assets, with reinsurance providing a **$1.9 billion** capital credit[334](index=334&type=chunk) Risk-to-Capital - Combined Insurance Companies | (In millions, except ratio) | March 31, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | RIF - net | $51,382 | $50,748 | | Statutory policyholders' position | $5,584 | $5,348 | | **Risk-to-capital** | **9.2:1** | **9.5:1** | [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=66&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risks are credit spread and interest rate risk within its fixed income investment portfolio, with a modified duration of 4.6 years as of March 31, 2022 - The primary market risks for the investment portfolio are identified as credit spread risk and interest rate risk[348](index=348&type=chunk) - As of March 31, 2022, the modified duration of the fixed income investment portfolio was **4.6 years**[352](index=352&type=chunk) [Item 4. Controls and Procedures](index=66&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2022, with no material changes to internal control over financial reporting during the first quarter - Management concluded that disclosure controls and procedures were effective as of the end of the period covered by the report[353](index=353&type=chunk) PART II — OTHER INFORMATION [Item 1A. Risk Factors](index=67&type=section&id=Item%201A.%20Risk%20Factors) The company highlights new and existing risk factors, including the Russia-Ukraine war's potential economic impact, reinsurance availability, and a shifting business mix towards higher-risk loans - The Russia-Ukraine war is identified as a new risk factor that may adversely affect the U.S. economy and the company's business through higher inflation, supply chain pressure, and financial market volatility[357](index=357&type=chunk) - Reinsurance may not always be available or affordable, with access to the XOL reinsurance market temporarily disrupted in Q1 2022 due to market volatility[362](index=362&type=chunk)[363](index=363&type=chunk) - The mix of business is shifting, with NIW on mortgages with LTV ratios >95% increasing to **11%** in Q1 2022 from **8%** in Q1 2021, and NIW on mortgages with DTI ratios >45% increasing to **17%** from **12%** over the same period[371](index=371&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) In Q1 2022, MGIC repurchased 8,513,394 shares of its common stock for approximately $127.6 million under a publicly announced program Issuer Purchases of Equity Securities (Q1 2022) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Jan 2022 | 3,887,863 | $15.43 | | Feb 2022 | 1,536,302 | $15.54 | | Mar 2022 | 3,089,229 | $14.16 | | **Total** | **8,513,394** | **$14.99** |

FORM 10-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 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 jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 250 E. Kilbourn Avenue Milwaukee, Wisconsin 53202 (Address of principal executive offices) (Zip Code) (414) 347-6480 (Registrant's telephone number ...

Call Start: 10:00 January 1, 0000 10:46 AM ET MGIC Investment Corporation (NYSE:MTG) Q4 2021 Earnings Conference Call February 3, 2022 10:00 ET Company Participants Mike Zimmerman - Senior Vice President of Investor Relations Tim Mattke - Chief Executive Officer Nathan Colson - Chief Financial Officer Conference Call Participants Douglas Harter - Credit Suisse Cullen Johnson - B. Riley Securities Mark DeVries - Barclays Bose George - KBW Mihir Bhatia - Bank of America Geoffrey Dunn - Dowling & Partners Rya ...

MGIC MGIC Investment Corporation Quarterly Supplement Q4 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 ...

MGIC Investment Corporation (NYSE:MTG) Q3 2021 Results Conference Call November 4, 2021 10:00 AM ET Company Participants Mike Zimmerman - SVP, IR Tim Mattke - CEO Nathan Colson - CFO Conference Call Participants Bose George - KBW Cullen Johnson - B. Riley Securities Mark DeVries - Barclays Doug Harter - Credit Suisse Mihir Bhatia - Bank of America Ryan Gilbert - BTIG Geoffrey Dunn - Dowling & Partners Operator Good day, and thank you for standing by, and welcome to the MGIC Investment Corporation Third Quar ...

MGIC MGIC Investment Corporation Quarterly Supplement Q3 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 ...

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, 2021 ☐ 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 ...