MGIC Investment Corporation
) reported third quarter 2012 operating loss of $1.25 per share,
substantially wider than the Zacks Consensus Estimate of a loss
of 59 cents. The company had reported an operating loss of 88
cents in the prior-year quarter.
MGIC's GAAP net loss was $1.22 a share, compared with loss per
share of 82 cents for the year-ago quarter. The disappointing
results came on the back of elevated delinquency.
Total revenue for the quarter came in at $306.2 million, down
9.2% year over year. Net premiums written were reported at $263.5
million, up 3.1% year over year. The company's new insurance
written soared 80% year over year to $7.0 billion in the quarter.
MGIC's primary insurance in force stood at $164.9 billion as of
September 30, 2012, compared with $172.9 billion as of December
31, 2011, and $179.0 billion as of September 30, 2011.
Losses incurred were $490.1 million, up 6% year over year,
primarily due to an increase in the claim rate.
Paid claims declined to $587 million, plummeting 22% year over
year. The average claim placement declined marginally to $48,000.
Management expects the current claim filing patterns to continue,
which will drag the claim payments lower in the rest of 2012 and
Net underwriting and other expenses were $50.7 million, down 3.4%
year over year. Investment income plunged 38.0% year over year to
Persistency (the percentage of insurance remaining in force from
the previous year) was 80.2% as of September 30, 2012, compared
with 83.7% as of September 30, 2011 .
Overall, effects of the sluggish economy continue to challenge
MGIC's financial results as well as its capital. Also, we do not
expect any reversal in the situation in the near term.
Radian Group Inc.
), posted third quarter net income of 11 cents per share,
substantially declining from a profit of $1.37 per share in the
MGIC INVSTMT CP (MTG): Free Stock Analysis
RADIAN GRP INC (RDN): Free Stock Analysis
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