MGIC Investment (US:MTG)2025-04-30 20:06Financial Performance - For Q1 2025, net premiums written increased to $235.346 million, up from $233.800 million in Q1 2024, representing a growth of 0.66%[29] - Total revenues for Q1 2025 reached $306.234 million, compared to $294.361 million in Q1 2024, marking an increase of 4.4%[29] - Net income for Q1 2025 was $185.460 million, an increase from $174.097 million in Q1 2024, reflecting a growth of 6.5%[29] - Basic earnings per share rose to $0.76 in Q1 2025, compared to $0.64 in Q1 2024, indicating an increase of 18.75%[29] - Cash flows from operating activities for Q1 2025 were $223,654 thousand, an increase from $190,537 thousand in Q1 2024[35] - Total shareholders' equity at the end of Q1 2025 was $5,139,884 thousand, up from $5,102,343 thousand at the end of Q1 2024[33] Losses and Expenses - Losses incurred, net for Q1 2025 were $9.591 million, significantly higher than $4.555 million in Q1 2024, representing an increase of 110.4%[29] - Other underwriting and operating expenses, net, decreased to $51.406 million in Q1 2025 from $59.018 million in Q1 2024, a reduction of 12.8%[29] - The company reported a decrease in unearned premiums, net, to $8,373 thousand in Q1 2025 from $8,844 thousand in Q1 2024[29] Investment Income - Investment income, net of expenses, increased to $61.443 million in Q1 2025 from $59.744 million in Q1 2024, a rise of 2.84%[29] - The company reported net gains on investments and other financial instruments of $741 thousand for Q1 2025, a significant recovery from net losses of $8,509 thousand in Q1 2024[95] - The company reported net unrealized investment gains of $65,406,000 for the three months ended March 31, 2025, compared to a loss of $13,154,000 in the same period of 2024[117] Stock and Dividends - The company repurchased common stock worth $225,176 thousand in Q1 2025, compared to $95,183 thousand in Q1 2024, indicating a significant increase in stock buybacks[35] - The company declared a quarterly cash dividend of $0.13 per share, totaling $32.5 million in Q1 2025[142] - The company had remaining authorization to repurchase $232.9 million of common stock through December 31, 2026[140] Reinsurance and Risk Management - The company executed a 40% quota share reinsurance (QSR) transaction covering most of its new insurance written in 2026[62] - The company retains the first layer of aggregate losses paid under traditional excess of loss (XOL) transactions, with reinsurers providing second layer coverage[65] - The profit commission for the 2023 QSR is set at 58.5% if the annual loss ratio remains below the specified threshold[62] Comprehensive Income - The company reported a comprehensive income of $237.177 million for Q1 2025, compared to $164.244 million in Q1 2024, reflecting a substantial increase of 44.4%[31] - Other comprehensive income for Q1 2025 was $51,717 thousand, compared to a loss of $9,853 thousand in Q1 2024, showing a significant improvement[31] Shareholder Metrics - The weighted average common shares outstanding for basic shares decreased to 244,147 in Q1 2025 from 270,314 in Q1 2024, a decline of 9.66%[29] - The company repurchased 9.2 million shares for $224.3 million in Q1 2025, compared to approximately 25.3 million shares for $566.6 million in 2024[140] Asset Management - Cash and cash equivalents at the end of Q1 2025 were $212,693 thousand, down from $439,568 thousand at the end of Q1 2024[35] - The company’s Available Assets exceeded its Minimum Required Assets as of March 31, 2025, ensuring compliance with GSEs' PMIERs[41] - Total fixed income securities at fair value as of March 31, 2025, were $5,885,033 thousand, compared to $5,851,689 thousand as of December 31, 2024[87]