•
Mar 31, 2022

MGIC Q1 2022 Earnings Report

Reported strong financial results driven by the size and credit performance of insurance in force and housing market resilience.

Key Takeaways

MGIC Investment Corporation reported a net income of $175.0 million, or $0.54 per diluted share, for the first quarter of 2022. Adjusted net operating income was $192.9 million, or $0.60 per diluted share.

Net income for the quarter was $175.0 million, or $0.54 per diluted share.

Adjusted net operating income for the first quarter of 2022 was $192.9 million, or $0.60 per diluted share.

New insurance written was $19.6 billion.

Insurance in force of $277.3 billion at March 31, 2022 increased by 1.1% during the quarter and 10.2% compared to March 31, 2021.

Total Revenue
$295M
Previous year: $298M
-1.1%
EPS
$0.6
Previous year: $0.42
+42.9%
Insurance In Force
$277B
Previous year: $252B
+10.2%
Loss Ratio
-7.6%
Previous year: 15.5%
-149.0%
Underwriting Expense Ratio
23%
Gross Profit
$240M
Previous year: $250M
-4.0%
Cash and Equivalents
$477M
Previous year: $183M
+160.8%
Free Cash Flow
$227M
Previous year: $198M
+14.9%
Total Assets
$6.84B
Previous year: $7.41B
-7.6%

MGIC

MGIC

Forward Guidance

The company is focused on creating long-term value for its constituents, including shareholders, customers, and co-workers. They have built a strong capital base and believe they are well-positioned to achieve success despite economic uncertainties.

Positive Outlook

  • Strong and durable capital base
  • Quality offerings
  • Superior customer experience
  • Continued support of homeownership
  • Quota share transaction with a group of unaffiliated reinsurers

Challenges Ahead

  • Increased risks to the domestic economy due to tragic geopolitical events occurring in Ukraine
  • Higher inflation
  • Increased interest rates
  • Decrease in book value per common share outstanding
  • Decrease in the fair value of our investment portfolio