Printer Friendly

MGIC INVESTMENT CORPORATION FIRST QUARTER EARNINGS UP 37 PERCENT

 MILWAUKEE, Wis., April 12 /PRNewswire/ -- MGIC Investment Corporation (NYSE: MTG) today reported first quarter earnings of $25.4 million, an increase of 37 percent over the $18.6 million reported in the first quarter of 1992. Earnings per share for the first quarter of 1993 were $0.86 compared to $0.63 a year ago, an increase of 37 percent.
 "Our earnings in the first quarter reflected the continued growth in revenues from premiums earned," said William H. Lacy, president and chief executive officer of MGIC Investment Corporation and Mortgage Guaranty Insurance Corporation (MGIC). "First quarter 1993 net premiums earned were $65.5 million, up 30 percent from a year earlier."
 New insurance written in the first quarter of 1993 totaled $6.5 billion, as compared to $4.7 billion in the first quarter of 1992, an increase of 38 percent. During the first quarter, refinancings represented 30 percent of the new business written. MGIC's primary insurance in force as of March 31, 1993, totaled $74.2 billion, up 19 percent from March 31, 1992.
 "We are pleased with the continuing high level of new insurance written during the first quarter of 1993 and believe that the demand for private mortgage insurance will remain strong with housing affordability the best we have seen in years," Lacy said.
 MGIC Investment Corporation is headquartered in Milwaukee. Through its subsidiary MGIC, it is a leading provider of private mortgage insurance coverage in the United States. Private mortgage insurance covers residential first 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 low down payment first mortgage loans in the secondary mortgage markets.
 (Relevant MGIC Investment Corporation financial statistics follow this press release.)
 MGIC INVESTMENT CORPORATION AND SUBSIDIARIES
 CONSOLIDATED STATEMENT OF OPERATIONS

 (In thousands of dollars, except per share data)
 Three Months Ended
 March 31,
 1993 1992
 Revenues:
 Net premiums written
 (a) New Book $ 64,804 $ 46,471
 (b) Old Book - 20 pct. Retrocession 2,364 3,108
 -- $ 67,168 $ 49,579
 Net premiums earned
 (a) New Book $ 63,081 $ 47,291
 (b) Old Book - 20 pct. Retrocession 2,390 3,136
 -- 65,471 50,427
 Investment income 15,275 14,323
 Realized gains 802 2,034
 Other revenue 9,149 7,008
 Total revenues 90,697 73,792
 Losses and expenses:
 Losses incurred
 (a) New Book 22,241 15,920
 (b) Old Book - 20 pct. Retrocession 4,425 6,620
 -- 26,666 22,540
 Underwriting, other expenses 33,825 29,644
 Interest expense on
 long-term debt 962 974
 Ceding commission (3,983) (5,787)
 Total losses and expenses 57,470 47,371
 Income before tax 33,227 26,421
 Provision for income tax 7,791 7,812
 Net income $ 25,436 $ 18,609
 Weighted average common
 shares outstanding
 (Shares in thousands) 29,448 29,335
 Net income per share $ 0.86 $ 0.63
 New insurance written
 ($ millions) $ 6,528 $ 4,729
 MGIC INVESTMENT CORPORATION AND SUBSIDIARIES
 CONSOLIDATED BALANCE SHEET
 March 31, 1993, December 31, 1992 and March 31, 1992
 (In thousands of dollars, except per share data)
 Mar. 31, Dec. 31, Mar. 31,
 1993 1992 1992
 ASSETS
 Investments (Market value, $993,387;
 $938,949; $816,709) $ 935,134 $ 896,120 $ 795,633
 Cash 2,913 3,134 9,258
 Reinsurance recoverable on
 loss reserves 47,837 44,747 41,094
 Reinsurance recoverable on
 unearned premiums 60,097 65,689 65,892
 Home office and equipment, net 32,505 31,459 29,543
 Deferred insurance policy
 acquisition costs 42,526 42,102 38,055
 Other assets 52,931 50,286 52,468
 -- $1,173,943 $1,133,537 $1,031,943
 LIABILITIES AND SHAREHOLDERS' EQUITY
 Liabilities:
 Loss reserves
 (a) New Book $ 149,006 $ 137,776 $ 118,988
 (b) Old Book - 20 pct. Retrocession 30,022 29,318 36,314
 -- 179,028 167,094 155,302
 Unearned premiums 273,969 277,865 236,586
 Other liabilities 104,811 96,379 128,966
 Total liabilities 557,808 541,338 520,854
 Shareholders' equity 616,135 592,199 511,089
 -- $1,173,943 $1,133,537 $1,031,943
 Book value per share $ 21.15 $ 20.34 $ 17.62
 OTHER STATISTICAL INFORMATION
 Mar. 31, Dec. 31, Mar. 31,
 1993 1992 1992
 Direct Primary Insurance In Force ($ millions):
 (a) New Book $ 74,242 $ 71,246 $ 62,495
 (b) Old Book 15,777 16,676 20,345
 Direct Primary Risk In Force ($ millions):
 (a) New Book 14,653 14,097 12,550
 (b) Old Book 3,959 4,193 5,163
 Mortgage Guaranty Insurance Corporation -
 Risk-to-capital ratio 16.3:1 16.1:1 15.8:1
 Primary Insurance:
 Insured loans
 (a) New Book 830,162 806,958 742,690
 Persistency (percents) 72.0 71.4 80.9
 (b) Old Book 460,485 482,007 564,696
 Persistency (percents) 77.5 77.9 82.6
 Loans in default
 (a) New Book 13,473 13,082 12,518
 (b) Old Book 19,544 20,247 23,164
 Percentage of loans in default (default rate)
 (a) New Book 1.62 1.62 1.69
 (b) Old Book 4.24 4.20 4.10
 (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 percent 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 percent retrocession interest of that subsidiary.
 (c) See Attachment A for restatement of certain balance sheet items for FAS 113.


Attachment A
 MGIC INVESTMENT CORPORATION AND SUBSIDIARIES
 BALANCE SHEET
 RESTATEMENT FOR FAS 113
 March 31, 1993, December 31, 1992 and March 31, 1992
 (In thousands of dollars)
 Mar. 31, Dec. 31, Mar. 31,
 1993 1992 1992
 New Book loss reserves before
 restatement $ 101,169 $ 93,029 $ 77,894
 Ceded loss reserves 47,837 44,747 41,094
 -- 149,006 137,776 118,988
 Old Book - 20 pct. Retrocession 30,022 29,318 36,314
 Loss reserves per FAS 113 $ 179,028 $ 167,094 $ 155,302
 Unearned premiums before restatement 213,872 $ 212,176 $ 170,694
 Ceded unearned premiums 60,097 65,689 65,892
 Unearned premiums per FAS 113 ---------- ---------- ----------
 -- $ 273,969 $ 277,865 $ 236,586
 FAS 113 is a new accounting rule effective 1/1/93 which applies to reinsurance. It requires the Company to gross up loss reserves and unearned premiums by adding back amounts ceded under reinsurance treaties. Balances


reported in prior periods were restated to conform to the new method.
 Ceded loss reserves are now reflected as "Reinsurance recoverable on loss reserves". Ceded unearned premiums are now reflected as "Reinsurance recoverable on unearned premiums".
 -0- 4/12/93
 /CONTACT: James S. MacLeod, Senior Vice President of MGIC, 414-347-6812/
 (MTG)


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

DS -- MN001 -- 4644 04/12/93 09:07 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 12, 1993
Words:1185
Previous Article:WEST COAST BANCORP RESPONDS TO WESTERN BANK OFFER
Next Article:ANALOG DEVICES AUDIO CODEC IC INCORPORATED IN PENTIUM REFERENCE DESIGN
Topics:


Related Articles
MGIC INVESTMENT CORPORATION 1993 EARNINGS UP 24 PERCENT TO $127.3 MILLION
MGIC INVESTMENT CORPORATION FIRST QUARTER EARNINGS UP 30 PERCENT
MGIC INVESTMENT CORPORATION THIRD QUARTER EARNINGS UP 25 PERCENT AND MGIC IN FORCE BOOK NOW EXCEEDS $100 BILLION
MGIC INVESTMENT CORPORATION FIRST QUARTER EARNINGS UP 36 PERCENT
MGIC INVESTMENT CORPORATION SECOND QUARTER EARNINGS UP 30 PERCENT
MGIC INVESTMENT CORPORATION THIRD QUARTER EARNINGS UP 28 PERCENT
MGIC INVESTMENT CORPORATION FIRST QUARTER EARNINGS UP 29 PERCENT
MGIC INVESTMENT CORPORATION SECOND QUARTER EARNINGS UP 25 PERCENT
MGIC Investment Corporation Third Quarter Earnings Per Share Up 19 Percent.
MGIC Investment Corporation Third Quarter Earnings Per Share Up 29 Percent.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters