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MGIC INVESTMENT CORPORATION 1993 EARNINGS UP 24 PERCENT TO $127.3 MILLION

 MILWAUKEE, Jan. 13 /PRNewswire/ -- MGIC Investment Corporation (NYSE: MTG) today reported 1993 earnings of $127.3 million, an increase of 24 percent over the $102.3 million reported in 1992. Earnings per share for the year totaled $2.16, compared to $1.74 a year ago, an increase of 24 percent.
 For the fourth quarter, net income totaled $36.2 million, up from $29.5 million in 1992, an increase of 22 percent. Earnings per share for the fourth quarter of 1993 were $.61 compared to $.50 a year ago, a 22 percent increase.
 "1993 was another outstanding year with strong financial results," said William H. Lacy, president and chief executive officer of MGIC Investment Corporation and Mortgage Guaranty Insurance Corporation (MGIC), its principal subsidiary. "Our results reflect the continued growth of net premiums earned and investment income together with favorable loss development."
 For 1993, net premiums earned totaled $299.3 million, up 32 percent from a year earlier, while investment income grew to $64.7 million, an increase of 11 percent during the same period. At year end, MGIC's insurance in force totaled $85.8 billion, a $14.6 billion increase over December 31, 1992. During 1993 its investment portfolio increased $203.5 million to $1.1 billion at year end.
 MGIC Investment Corporation is headquartered in Milwaukee. Through its subsidiary MGIC, it is a leading provider of private mortgage insurance in the United States. Private mortgage insurance covers residential home mortgage loans and expands homeownership opportunities by enabling people to purchase homes with less than 20 percent down payments. Private mortgage insurance also facilitates the sale of mortgages in the secondary mortgage markets.
 MGIC INVESTMENT CORPORATION AND SUBSIDIARIES
 CONSOLIDATED STATEMENT OF OPERATIONS
 (In thousands of dollars, except per share data)
 Three Months Ended Twelve Months Ended
 12/31/93 12/31/92 12/31/93 12/31/02
 Revenues:
 Net premiums written
 (a) New Book $91,816 $69,871 $334,106 $255,388
 (b) Old Book --
 20% Retrocession 1,913 2,559 8,621 11,311
 Total $93,729 $72,430 $342,727 $266,699
 Net premiums earned
 (a) New Book $82,237 $60,008 $290,701 $214,737
 (b) Old Book --
 20% Retrocession 1,928 2,548 8,641 11,328
 Total 84,165 62,556 299,342 226,065
 Investment income 17,005 15,179 64,689 58,261
 Realized gains 577 416 5,139 5,995
 Other revenue 7,927 9,063 34,347 31,390
 Total revenues 109,674 87,214 403,517 321,711
 Losses and expenses:
 Losses incurred
 (a) New Book 27,391 19,901 96,146 66,842
 (b) Old Book --
 20% Retrocession 1,417 4,318 10,986 19,994
 Total 28,808 24,219 107,132 86,836
 Underwriting,
 other expenses 32,089 29,778 132,057 119,293
 Interest expense on
 long-term debt 977 985 3,888 3,927
 Ceding commission (1,670) (7,407) (14,375) (29,993)
 Total losses
 and expenses 60,204 47,575 228,702 180,063
 Income before tax 49,470 39,639 174,815 141,648
 Provision for
 income tax 13,304 10,142 47,546 39,386
 Net income $36,166 $29,497 $127,269 $102,262
 Weighted average common
 shares outstanding
 (shares in thousands) 58,945 58,772 58,926 58,725
 Net income per share $0.61 $0.50 $2.16 $1.74
 New insurance written ("NIW")
 ($ millions) $10,670 $8,868 $37,041 $27,421
 Refinances as a
 percentage of NIW 41% 35% 36% 29%
 MGIC INVESTMENT CORPORATION AND SUBSIDIARIES
 CONSOLIDATED BALANCE SHEETS
 (In thousands of dollars)
 12/31/93 12/31/92 12/31/91
 ASSETS
 Investments (Market value,
 $1,179,255; $938,949; $812,809) $1,099,643 $896,120 $776,875
 Cash 4,185 3,134 5,464
 Reinsurance recoverable on
 loss reserves 56,306 44,747 39,252
 Reinsurance recoverable on
 unearned premiums 51,286 65,689 71,168
 Home office and equipment, net 36,284 31,459 27,835
 Deferred insurance policy
 acquisition costs 45,785 42,102 37,661
 Other assets 49,717 50,286 46,619
 Total $1,343,206 $1,133,537 $1,004,874
 LIABILITIES AND SHAREHOLDERS' EQUITY
 Liabilities:
 Loss reserves
 (a) New Book $185,470 $137,776 $112,101
 (b) Old Book -- 20% Retrocession 28,130 29,318 37,768
 Total 213,600 167,094 149,869
 Unearned premiums 306,846 277,865 242,710
 Other liabilities 110,689 96,379 119,895
 Total liabilities 631,135 541,338 512,474
 Shareholders' equity 712,071 592,199 492,400
 Total $1,343,206 $1,133,537 $1,004,874
 Book value per share $12.22 $10.17 $8.49
 OTHER STATISTICAL INFORMATION
 12/31/93 12/31/92 12/31/91
 Direct Primary Insurance In Force ($ millions):
 (a) New Book $85,848 $71,246 $61,346
 (b) Old Book 12,737 16,676 21,419
 Direct Primary Risk In Force ($ millions):
 (a) New Book 16,810 14,097 12,378
 (b) Old Book 3,180 4,193 5,463
 Mortgage Guaranty Insurance Corporation -
 Risk-to-capital ratio 17.1:1 16.1:1 16.0:1
 Primary Insurance:
 Insured loans
 (a) New Book 921,259 806,958 736,461
 Persistency 68.5% 71.4% 84.5%
 (b) Old Book 386,103 482,007 588,339
 Persistency 76.4% 77.9% 84.1%
 Loans in default
 (a) New Book 13,658 13,082 11,802
 (b) Old Book 16,757 20,247 24,180
 Percentage of loans in default (default rate)
 (a) New Book 1.48% 1.62% 1.60%
 (b) Old Book 4.34% 4.20% 4.11%
 (a) The New Book consists of insurance written by Mortgage Guaranty Insurance Corporation ("MGIC"), a subsidiary of MGIC Investment Corporation, since March 1, 1985.
 (b) The Old Book consists of insurance written or committed to by Wisconsin Mortgage Assurance Corporation ("WMAC") prior to March 1, 1985. A subsidiary of MGIC Investment Corporation is a 20% retrocession reinsurer of the Old Book and MGIC is the manager of the Old Book for WMAC. Where indicated, the information shown above for the Old Book represents principally the 20% retrocession interest of that subsidiary.
 -0- 01/13/94
 /CONTACT: James S. MacLeod, senior vice president-office of the president, of MGIC Investment, 414-347-6812/
 (MTG)


CO: MGIC Investment Corporation ST: Wisconsin IN: FIN SU: ERN

CP-AL -- MN003 -- 1671 01/13/94 08:29 EST
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Date:Jan 13, 1994
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