MGIC Investment (US:MTG)2023-05-03 20:10Financial Performance - Net premiums written decreased to $230.192 million in Q1 2023 from $242.665 million in Q1 2022, a decline of approximately 5.8%[33] - Net premiums earned were $242.015 million in Q1 2023, down from $255.240 million in Q1 2022, representing a decrease of about 5.2%[33] - Total revenues for Q1 2023 were $283.965 million, down from $294.616 million in Q1 2022, indicating a decrease of about 3.5%[33] - Net income for Q1 2023 was $154.547 million, compared to $175.013 million in Q1 2022, a decline of approximately 11.7%[33] - Basic earnings per share for Q1 2023 were $0.53, down from $0.55 in Q1 2022, a decrease of about 3.6%[33] - Comprehensive income for Q1 2023 was $240,559, compared to a loss of $95,532 in Q1 2022[35] - The net income for the three months ended March 31, 2023, was $154,547,000, compared to $175,013,000 for the same period in 2022, reflecting a decrease of approximately 11.7%[86] - Diluted EPS for Q1 2023 was also $0.53, compared to $0.54 in Q1 2022, showing a decrease of approximately 1.9%[86] Investment Income - Investment income increased to $49.223 million in Q1 2023, compared to $38.262 million in Q1 2022, reflecting a growth of approximately 28.7%[33] - The company reported a change in unrealized investment gains of $80,659 in Q1 2023, compared to a loss of $270,938 in Q1 2022[35] - Net unrealized investment gains for Q1 2023 were $102,099, a significant recovery from losses of $342,960 in Q1 2022[121] - Total other comprehensive income for Q1 2023 was $108,875, compared to a loss of $342,462 in Q1 2022[121] Losses and Expenses - Losses incurred, net, were $6.446 million in Q1 2023, a significant improvement from losses of $19.314 million in Q1 2022[33] - Other underwriting and operating expenses increased to $70.063 million in Q1 2023, compared to $54.732 million in Q1 2022, an increase of about 27.9%[33] - Losses incurred for the current year were $47.212 million, compared to $36.344 million for the same period last year[138] - The favorable loss development for Q1 2023 was $40.8 million, down from $55.7 million in Q1 2022[135] Shareholder Equity and Stock Repurchase - Total shareholders' equity increased to $4,777,644 as of March 31, 2023, up from $4,610,355 a year earlier[37] - The company repurchased $76,151 in common stock during Q1 2023, compared to $123,640 in Q1 2022[39] - The company repurchased 5.8 million shares at an average cost of $13.43 per share in the first three months of 2023[147] - Cash dividends paid in Q1 2023 totaled $29.6 million, with a declared dividend of $0.10 per share[148] Cash Flow and Assets - Net cash provided by operating activities for Q1 2023 was $212,286, down from $228,011 in Q1 2022[39] - Cash and cash equivalents at the end of Q1 2023 were $366,572, compared to $489,897 at the end of Q1 2022[39] - As of March 31, 2023, total fair value of assets is $5,941,364, an increase from $5,752,594 as of December 31, 2022[115] Debt and Compliance - Interest expense decreased to $9.374 million in Q1 2023 from $14.912 million in Q1 2022, a reduction of approximately 37.5%[33] - The company is in compliance with all debt covenants as of March 31, 2023[53] - MGIC's risk-to-capital ratio was 9.7 to 1, significantly below the maximum allowed ratio of 25 to 1[154] - MGIC's policyholder position was $3.7 billion, exceeding the required minimum policyholder position (MPP) of $2.1 billion[154] Regulatory and Statutory Information - Statutory net income for Q1 2023 was $54,612, a decrease of 43.4% from $96,018 in Q1 2022[158] - Statutory policyholders' surplus decreased to $992,075 from $1,319,633 year-over-year, reflecting a decline of 24.8%[158] - The company is subject to dividend restrictions, allowing a maximum payment of the lesser of adjusted statutory net income or 10% of statutory policyholders' surplus[155] - MGIC's financial reporting follows statutory accounting principles prescribed by the State of Wisconsin, which may differ from other states[156]