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MGIC Sees $19.6M in First-Quarter Net Losses

Milwaukee-based ""MGIC Investment Corp."":http://www.mgic.com/index.html reported net losses of $19.6 million for the first quarter, down from $33.7 million year-over-year.

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The mortgage insurer said that total first-quarter revenues hovered at $379.7 million, up from $353.1 million in revenues from last year.

MGIC wrote $255 million in net premiums, down from $274.5 million from the same period last year.

New insurance written by MGIC amounted to $4.2 billion, an increase from $3 billion in the first quarter last year.

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The company said that expansions to the Home Affordable Refinance Program accounted for $1.3 billion in insurance not included in new written insurance.

Mortgage insurers continue to face tough times, after a recession that drove one prominent company, The PMI Group, Inc., to file for Chapter 11 last year.

In response to reportedly subpar capital levels, the commissioner of insurance for Wisconsin previously issued an order that requires MGIC to keep $1 billion in liquid assets on hand.

The insurer said that it currently keeps roughly $5.9 billion on hand and plans to write new insurance in jurisdictions approved by Fannie Mae and Freddie Mac.

A statement devoted serious attention to the subject, with MGIC writing, ""While we believe that MGIC has sufficient claims paying resources to meet its claim obligations on its insurance in force, even in scenarios in which it fails to meet Capital Requirements, we cannot assure you that the events that led to MGIC failing to meet Capital Requirements would not also result in it not having sufficient claims paying resources.""

The insurer also fielded a diluted loss per share at $0.10 for the last quarter, down from a diluted loss per share of $0.17 for the same quarter one year before.

About Author: Ryan Schuette

Ryan Schuette is a journalist, cartoonist, and social entrepreneur with several years of experience in real-estate news, international reporting, and business management. He currently lives in the Washington, D.C., area, where he freelances for DS News and MReport.
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