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MGIC INVESTMENT CORPORATION SECOND QUARTER EARNINGS UP 26 PERCENT

 MILWAUKEE, July 14 /PRNewswire/ -- MGIC Investment Corporation (NYSE: MTG) today reported second quarter earnings of $31.9 million, an increase of 26 percent over the $25.3 million reported in the second quarter of 1992. Earnings per share for the second quarter of 1993 were $1.08 compared to $0.86 a year ago, an increase of 26 percent.
 For the first six months of 1993, net income totaled $57.4 million or $1.95 per share, as compared to $43.9 million or 1.50 per share in 1992. For the first six months of 1993, net income increased 31 percent and earnings per share increased 30 percent.
 "Our second quarter earnings reflected the continued growth of earned premiums due to the increase in insurance in force," said William H. Lacy, president and chief executive officer of MGIC Investment Corporation and Mortgage Guaranty Insurance Corporation (MGIC). "Second quarter 1993 net premiums earned were $71.9 million, up 31 percent compared to the second quarter of 1992."
 New insurance written in the second quarter of 1993 totaled $9.2 billion, as compared to $6.9 billion in the second quarter of 1992, an increase of 35 percent. For the first half of 1993, new insurance written was $15.8 billion, a 36 percent increase from the $11.6 billion written in the first half of 1992. MGIC's primary insurance in force as of June 30, 1993, totaled $77.6 billion, up 20 percent from June 30, 1992. Refinancings represented 38 percent of the new business written in the second quarter and 35 percent in the first half of 1993.
 "The strength of the mortgage origination market contributed to the $3.4 billion increase in our insurance in force in the second quarter. We believe that the demand for private mortgage insurance will continue to be strong during the remainder of 1993 as home buyers take advantage of the affordable housing conditions and home owners continue to refinance their existing mortgages," 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 home ownership 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 market.
 (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 Six Months Ended
 June 30, June 30,
 1993 1992 1993 1992
 Revenues:
 Net premiums written
 (a) New Book $83,447 $68,622 $148,251 $115,093
 (b) Old Book - 20 percent
 Retrocession 2,256 2,908 4,620 6,016
 -- $85,703 $71,530 $152,871 $121,109
 Net premiums earned
 (a) New Book 69,630 52,059 132,711 99,350
 (b) Old Book - 20 percent
 Retrocession 2,254 2,906 4,644 6,042
 -- 71,884 54,965 137,355 105,392
 Investment income 15,970 14,116 31,245 28,439
 Realized gains 1,048 1,684 1,850 3,718
 Other revenue 9,147 6,267 18,296 13,275
 Total revenues 98,049 77,032 188,746 150,824
 Losses and expenses:
 Losses incurred
 (a) New Book 22,505 14,022 44,746 29,942
 (b) Old Book - 20 percent
 Retrocession 3,113 5,020 7,538 11,640
 -- 25,618 19,042 52,284 41,582
 Underwriting, other
 expenses 32,760 29,462 66,585 59,106
 Interest expense on
 long-term debt 970 982 1,932 1,956
 Ceding commission (4,022) (8,242) (8,005) (14,029)
 Total losses and expenses 55,326 41,244 112,796 88,615
 Income before tax 42,723 35,788 75,950 62,209
 Provision for income tax 10,809 10,480 18,600 18,292
 Net income $ 31,914 $ 25,308 $ 57,350 $ 43,917
 Weighted average common
 shares outstanding
 (Shares in thousands) 29,458 29,332 29,454 29,337
 Net income per share $ 1.08 $ 0.86 $ 1.95 $ 1.50
 New insurance written
 ($ millions) $ 9,246 $ 6,861 $ 15,774 $ 11,590
 MGIC INVESTMENT CORPORATION AND SUBSIDIARIES
 CONSOLIDATED BALANCE SHEET AS OF
 June 30, 1993, December 31, 1992, and June 30, 1992
 (In thousands of dollars)
 June 30, Dec. 31, June 30,
 1993 1992 1992
 ASSETS
 Investments (Market value,
 $1,054,686; $938,949; $875,125) $ 985,370 $ 896,120 $ 840,259
 Cash 4,429 3,134 5,925
 Reinsurance recoverable on
 loss reserves 50,641 44,747 41,006
 Reinsurance recoverable on
 unearned premiums 55,655 65,689 65,596
 Home office and equipment, net 33,304 31,459 29,967
 Deferred insurance policy
 acquisition costs 42,927 42,102 39,065
 Other assets 50,894 50,286 46,000
 -- $1,223,220 $1,133,537 $1,067,818
 LIABILITIES AND SHAREHOLDERS' EQUITY
 Liabilities:
 Loss reserves
 (a) New Book $ 160,652 $ 137,776 $ 121,759
 (b) Old Book - 20 percent
 Retrocession 29,808 29,318 29,886
 -- 190,460 167,094 151,645
 Unearned premiums 283,345 277,865 252,855
 Other liabilities 103,407 96,379 128,855
 Total liabilities 577,212 541,338 533,355
 Shareholders' equity 646,008 592,199 534,463
 -- $1,223,220 $1,133,537 $1,067,818
 Book value per share $ 22.17 $ 20.34 $ 18.42
 OTHER STATISTICAL INFORMATION
 June 30, Dec. 31, June 30,
 1993 1992 1992
 Direct Primary Insurance
 In Force ($ millions):
 (a) New Book $ 77,633 $ 71,246 $ 64,878
 (b) Old Book 14,755 16,676 18,974
 Direct Primary Risk
 In Force ($ millions):
 (a) New Book 15,271 14,097 12,961
 (b) Old Book 3,695 4,193 4,790
 Mortgage Guaranty Insurance Corporation -
 Risk-to-capital ratio 16.5:1 16.1:1 15.9:1
 Primary Insurance:
 Insured loans
 (a) New Book 856,427 806,958 758,394
 Persistency (pct.) 70.9 71.4 77.6
 (b) Old Book 436,221 482,007 534,364
 Persistency (pct.) 77.8 77.9 80.6
 Loans in default
 (a) New Book 12,584 13,082 11,963
 (b) Old Book 17,745 20,247 21,199
 Percentage of loans in default (default rate)
 (a) New Book 1.47 1.62 1.58
 (b) Old Book 4.07 4.20 3.97
 (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.
 /NOTE: 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
 June 30, 1993, December 31, 1992, and June 30, 1992
 (In thousands of dollars)
 June 30, Dec. 31, June 30,
 1993 1992 1992
 New Book loss reserves before
 restatement $ 110,011 $ 93,029 $ 80,753
 Ceded loss reserves 50,641 44,747 41,006
 -- 160,652 137,776 121,759
 Old Book - 20 percent Retrocession 29,808 29,318 29,886
 Loss reserves per FAS 113 190,460 167,094 151,645
 Unearned premiums before restatement $227,690 $212,176 $187,259
 Ceded unearned premiums 55,655 65,689 65,596
 Unearned premiums per FAS 113 $ 283,345 $ 277,865 $ 252,855
 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- 7/14/93
 /CONTACT: James S. MacLeod, Senior Vice President - Office of the President, MGIC Investment, 414-347-6812/
 (MTG)


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

DS -- MN006 -- 1210 07/14/93 08:41 EDT
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Date:Jul 14, 1993
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