MGIC Investment Corporation Reports Fourth Quarter 2024 Results

Core Insights - MGIC Investment Corporation reported strong financial results for Q4 2024, with net income of $184.7 million or $0.72 per diluted share, and full-year net income of $763.0 million or $2.89 per diluted share [1][3][19] - The company emphasized its commitment to returning capital to shareholders, having paid a dividend of $0.13 per common share and repurchased 7.8 million shares for $193.3 million [2][6] Financial Performance - Q4 2024 net income was $184.7 million, compared to $200.0 million in Q3 2024 and $184.5 million in Q4 2023 [3] - Adjusted net operating income for Q4 2024 was $184.5 million, consistent with Q4 2023 but down from $200.7 million in Q3 2024 [3] - Full-year 2024 adjusted net operating income was $768.5 million, up from $752.5 million in 2023 [1][3] Key Metrics - New insurance written (NIW) for Q4 2024 was $15.9 billion, down from $17.2 billion in Q3 2024 and up from $10.9 billion in Q4 2023 [3][21] - Net premiums earned in Q4 2024 were $241.3 million, compared to $243.3 million in Q3 2024 and $226.4 million in Q4 2023 [3] - The annual persistency rate decreased to 84.8% in Q4 2024 from 85.3% in Q3 2024 and 86.1% in Q4 2023 [3][21] Capital Management - The company maintained PMIERs available assets of $5.8 billion as of December 31, 2024, with excess of $2.2 billion [3] - MGIC paid a total of $400 million in dividends to the holding company [6] - The company executed a 40% quota share transaction with unaffiliated reinsurers covering most of its 2025 and 2026 NIW [6] Delinquency and Losses - Primary delinquency inventory increased to 26,791 loans in Q4 2024 from 25,089 in Q3 2024 [3][24] - The primary IIF delinquency rate rose to 2.40% in Q4 2024 from 2.24% in Q3 2024 [3][24] - Losses incurred, net for Q4 2024 were $8.7 million, compared to a loss of $9.8 million in Q3 2024 [3][19]