Dallas, Texas 04/25/2014 (FINANCIALSTRENDS) – MGIC Investment Corp. (NYSE:MTG) reported a first quarter 2014 income of $60 million, or $0.15 per share, as compared to a $72.9 million loss, or $0.31 per share loss, for the same quarter last year. Total revenues for the first quarter were pegged at $235.1 million, compared with $269.2 million in the first quarter last year.
MGIC First Quarter Results Beat Analyst Estimates
The EPS posted by MGIC beat consensus analyst estimates by 5 cents, and the company’s shares closed 7% higher as a result.
The main driver for the company’s recovery and better than expected results was fewer new notices of default being received, coupled with a lower claim rate on new and previously received delinquencies. Delinquent loans dropped from 12.83% in the first quarter of 2013 to 9.67% in the first quarter this year.
The result was that losses for the first quarter were $122.6 million down from the $266.2 million for the same quarter in 2013.
Net underwriting and other expenses were likewise down to $39.4 million in the first quarter for 2014, as compared to $50.0 million for the first quarter last year.
However, new insurance written in the first quarter 2014 was pegged much lower at $5.2 billion, as compared to the $6.5 billion the company managed in the first quarter last year.
The fair value of MGIC’s investment portfolio, cash and cash equivalents was slightly lower at $5.1 billion as of March 31, 2014, as compared to the $5.2 billion as of Dec 31, 2013, and quite a bit lower than the $6.2 billion as of a year ago on March 31, 2013.
Statement by MGIC Investment Corp CEO
Curt S. Culver, CEO and Chairman of the Board of Mortgage Guaranty Insurance Corporation and MTG, said he feels the company is in an excellent position to take advantage of the housing recovery.
“I am pleased with the credit performance during the quarter and am encouraged by the level of the new business being written given the significant decline in refinance transactions compared to last year and the slow start in home sales given this winter’s harsh conditions,” said Culver.