MGIC Investment Q4 Earnings Beat, Revenues Miss Estimates

Core Viewpoint - MGIC Investment Corporation (MTG) reported strong fourth-quarter 2024 results, with operating net income per share of 72 cents, exceeding estimates and showing a year-over-year increase of 10.2% [1][2]. Financial Performance - Total operating revenues reached $303.1 million, a 6.4% increase year over year, although it fell short of consensus estimates by 1.1% [2]. - Insurance in force rose by 0.6% year over year to $295.4 billion, surpassing the Zacks Consensus Estimate of $294 billion [3]. - Net premiums written increased by 5.9% year over year to $232.1 million, exceeding the estimate of $231.1 million [3]. - Net investment income grew by 6.1% year over year to $61.3 million, though it was below both the estimate of $66.9 million and the Zacks Consensus Estimate of $65 million [4]. - New insurance written surged by 45.9% year over year to $15.9 billion [4]. - Total losses and expenses increased by 23.3% year over year to $66.7 million [4]. Operational Metrics - The loss ratio for the quarter was 3.6%, compared to negative 4.2% in the fourth quarter of 2023 [5]. - The underwriting expense ratio improved by 380 basis points year over year to 20.8 [5]. - Persistency, the percentage of insurance remaining in force from one year prior, decreased to 84.8% from 86.1% in the previous year [4]. Capital Management - The company repurchased 7.8 million shares for $193.3 million in the fourth quarter and paid $200 million in dividends to the holding company [7]. - An additional 3.5 million shares were repurchased in January for $85.5 million [7]. - A dividend of 13 cents per share was declared to be paid on March 5, 2025, to shareholders of record as of February 18, 2025 [8]. Financial Position - Book value per share increased by 11.9% year over year to $20.82 as of December 31, 2024 [6]. - Shareholder equity rose to $5.3 billion, up 4.3% from the end of 2023 [6]. - PMIERs Available Assets totaled $6 billion, exceeding the Minimum Required Assets by $2.5 billion as of September 30, 2024 [6]. - Total assets increased by 2.1% year over year to $6.7 billion, while debt rose slightly to $644 million [6].