MGIC Investment Corp ( (MTG) ) has released its Q4 earnings. Here is a breakdown of the information MGIC Investment Corp presented to its investors.
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MGIC Investment Corporation, through its subsidiary Mortgage Guaranty Insurance Corporation, operates in the private mortgage insurance sector, providing insurance to lenders across the United States to enable affordable low-down-payment mortgages.
MGIC Investment Corporation announced its financial outcomes for the fourth quarter of 2024, reporting a net income of $184.7 million, equivalent to $0.72 per diluted share, and showcasing robust performance across key financial metrics.
The company achieved a full year net income of $763 million, or $2.89 per diluted share, underscoring a strong financial position. Additionally, MGIC highlighted strategic moves such as repurchasing 7.8 million shares and entering into a 40% quota share transaction with unaffiliated reinsurers. The company also reported the termination and amendment of previous reinsurance agreements, which effectively reduced its cede rate to 26%.
The financial results reflect an annualized return on equity of 14% and an increase in insurance in force to $295.4 billion. Despite a slight increase in the primary delinquency rate to 2.40%, MGIC maintains a robust underwriting expense ratio of 20.8% and a commendable book value per common share of $20.82.
Looking ahead, MGIC’s management remains optimistic about the upcoming year, focusing on executing business strategies and maintaining its leadership in the market. The company is set to continue building on its solid foundation, aiming for ongoing success for stakeholders.
