Private mortgage insurer,
MGIC Investment Corp.
) has announced its intention to expand its sales team by
appointing industry veterans in the capacity of the company's new
sales manager and account manager.
The news propelled the company's shares rise 3.2% in yesterday's
trading session, closing at $7.81, with 8.2 million shares
Jim Labbe, with 14 years of experience in this industry, will take
on the role of the new sales manager at MGIC Investment. He will be
responsible for working with the company's customers and Account
Managers in California and Nevada.
David Exner, with more than 15 years of experience in the mortgage
finance industry, has been appointed as the new account manager. He
has been entrusted the company's prized customers in the city of
Other Recent Appointments
Faced with changing fundamentals, the company has been actively
appointing executives of late. In July, the company promoted
Patrick Sinks - the current chief operating officer - to take on
the role of chief executive officer effective Mar 1, 2015. Current
CEO Curt Culver will relinquish the chair in 2015 to take up his
responsibilities as non-executive chairman. The changes were
announced following the release of the draft regarding new capital
requirements by the Federal Housing Finance Agency (FHFA).
Additionally, in June, MGIC Investment appointed two specialists
from the mortgage industry - William Todd Pittman and Geoffrey
Cooper - to develop the overall business of the company, as
management expects demand for private mortgage to improve going
forward owing to a rebounding housing market.
MGIC Market Share Picking Up
MGIC Investment experienced an upswing in its market share through
the first half of 2014. MGIC Investment has witnessed an increase
in business activity with primary new insurance written at the
company totaling $29.8 billion in 2013, up from $24.1 billion in
2012 and $14.2 billion in 2011. Notably, the downside in business
activity had been persisting since 2006 when the subprime crisis
hit it hard.
The recovery was attributable to larger origination volume as
well as an increase in the private mortgage insurance industry's
market share. The expansion in the sales team is naturally targeted
toward maintaining this healthy trend.
Management at MGIC Investment is encouraged by growing demand for
home purchases.The current market structure presents a good
opportunity for stronger players which have a sturdy capital
position and can tolerate regulation. Moreover, due to the exit of
some firms during the housing market crisis, supply is also
limited. Mortgage insurers with a differentiated financial profile
can therefore benefit from the current market conditions.
An increased activity is being witnessed among payers. While
mortgage insurer Radian Group Inc. (
) added 5 veteran mortgage industry professionals in June to
strengthen it sales team, another player, Essent Group Ltd. (
), made an initial public offering and raised more than $300
million of capital to expand sales in Oct 2013.
MGIC Investment currently carries a Zacks Rank #3 (Hold).
Arch Capital Group Ltd. (
) with a Zacks Rank #2 (Buy) is a stock worth considering in this
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