MILWAUKEE, April 11 /PRNewswire-FirstCall/ — MGIC Investment Corporation (NYSE:MTG) today reported net income for the quarter ended March 31, 2007 of $92.4 million, compared with the $163.5 million for the same quarter a year ago. Diluted earnings per share were $1.12 for the quarter ending March 31, 2007, compared to $1.87 for the same quarter a year ago.
Curt S. Culver, chairman and chief executive officer of MGIC Investment Corporation and Mortgage Guaranty Insurance Corporation (MGIC), said the short-term financial results masked the long term improvements in our business fundamentals, such as improving mortgage insurance penetration and policy persistency as well as a renewed respect for credit quality and the value of our product.
Total revenues for the first quarter were $369.6 million, compared with $369.0 million in the first quarter of 2006. Net premiums written for the quarter were $304.0 million, compared with $300.5 million in the first quarter last year.
New insurance written in the first quarter was $12.7 billion, compared to $10.0 billion in the first quarter of 2006. New insurance written for the quarter included $2.3 billion of bulk business compared with $2.1 billion in the same period last year.
Persistency, or the percentage of insurance remaining in force from one year prior, was 70.3 percent at March 31, 2007, compared with 69.6 percent at December 31, 2006, and 62.0 percent at March 31, 2006.
As of March 31, 2007, MGIC’s primary insurance inforce was $178.3 billion, compared with $176.5 billion at December 31, 2006, and $166.9 billion at March 31, 2006. The book value of MGIC Investment Corporation’s investment portfolio was $5.3 billion at March 31, 2007, compared with $5.3 billion at December 31, 2006, and $5.2 billion at March 31, 2006.
At March 31, 2007, the percentage of loans that were delinquent, excluding bulk loans, was 3.89 percent, compared with 4.08 percent at December 31, 2006, and 4.00 percent at March 31, 2006. Including bulk loans, the percentage of loans that were delinquent at March 31, 2007 was 5.92 percent, compared to 6.13 percent at December 31, 2006, and 6.00 percent at March 31, 2006.
Losses incurred in the first quarter were $181.8 million, up from $114.9 million reported for the same period last year. Underwriting expenses were $76.0 million in the first quarter up from $75.4 million reported for the same period last year.
Income from joint ventures, net of tax in the quarter, was $14.1 million down from $39.1 million for the same period last year, primarily as a result of the operating loss at C-BASS.
MGIC (http://www.mgic.com/), the principal subsidiary of MGIC Investment Corporation, is the nation’s leading provider of private mortgage insurance coverage with $178.3 billion primary insurance inforce covering 1.3 million mortgages as of March 31, 2007. MGIC serves 5,000 lenders with locations across the country and in Puerto Rico, helping families achieve homeownership sooner by making affordable low-down-payment mortgages a reality.
As previously announced, MGIC Investment Corporation will hold a webcast today at 10 a.m. ET to allow securities analysts and shareholders the opportunity to hear management discuss the company’s quarterly results. The call is being webcast and can be accessed at the company’s website at http://www.mgic.com/. The webcast is also being distributed over CCBN’s Investor Distribution Network to both institutional and individual investors. Investors can listen to the call through CCBN’s individual investor center at http://www.companyboardroom.com/ or by visiting any of the investor sites in CCBN’s Individual Investor Network. The webcast will be available for replay on the company’s website through May 12, 2007.
This press release, which includes certain additional statistical and other information, including non-GAAP financial information, is available on the Company’s website at http://www.mgic.com/ under “Investor – News and Financials – News Releases.”
MGIC Investment Corporation and Radian Group Inc. have filed a joint proxy statement/prospectus and other relevant documents concerning the MGIC/Radian merger transaction with the United States Securities and Exchange Commission (the “SEC”). STOCKHOLDERS ARE URGED TO READ THE JOINT PROXY STATEMENT/PROSPECTUS AND ANY OTHER DOCUMENTS FILED WITH THE SEC IN CONNECTION WITH THE MERGER TRANSACTION OR INCORPORATED BY REFERENCE IN THE PROXY STATEMENT/PROSPECTUS BECAUSE THEY CONTAIN IMPORTANT INFORMATION. Investors may obtain these documents free of charge at the SEC’s website (http://www.sec.gov/). In addition, documents filed with the SEC by MGIC are available free of charge by contacting Investor Relations at MGIC Investment Corporation, 250 East Kilbourn Avenue, Milwaukee, WI 53202. Documents filed with the SEC by Radian are available free of charge by calling Investor Relations at (215) 231-1486.
Radian and MGIC and their respective directors and executive officers, certain members of management and other employees are participants in the solicitation of proxies from Radian stockholders and MGIC stockholders with respect to the proposed merger transaction. Information regarding the directors and executive officers of Radian and MGIC and the interests of such participants are included in the joint proxy statement/prospectus filed with the SEC (which relates to the merger transaction, Radian’s 2007 annual meeting of stockholders and MGIC’s 2007 annual meeting of stockholders) and in the other relevant documents filed with the SEC.