•
Sep 30, 2020

MGIC Q3 2020 Earnings Report

Reported third quarter 2020 results with a net income of $130.8 million.

Key Takeaways

MGIC Investment Corporation reported a net income of $130.8 million, or $0.38 per diluted share, for the third quarter of 2020. Adjusted net operating income was $149.9 million, or $0.43 per diluted share. New insurance written was $32.8 billion, and insurance in force increased by 9.5% compared to the previous year.

Net income for the quarter was $130.8 million, or $0.38 per diluted share.

Adjusted net operating income for the third quarter of 2020 was $149.9 million, or $0.43 per diluted share.

New insurance written was $32.8 billion.

Insurance in force increased by 9.5% compared to the previous year, reaching $238.9 billion.

Total Revenue
$296M
Previous year: $318M
-7.0%
EPS
$0.43
Previous year: $0.48
-10.4%
New insurance written
$32.8B
Previous year: $19.1B
+71.7%
Insurance in force
$239B
Annual persistency
64.5%
Previous year: 78.6%
-17.9%
Gross Profit
$251M
Previous year: $273M
-8.2%
Cash and Equivalents
$380M
Previous year: $165M
+129.7%
Free Cash Flow
$87.5M
Previous year: $176M
-50.2%
Total Assets
$7.15B
Previous year: $6.15B
+16.3%

MGIC

MGIC

Forward Guidance

MGIC is cautiously optimistic about the continuing resiliency of the housing market, but there is still uncertainty about the timing and pace of the economic recovery and the long-term impact of loss mitigation efforts.

Positive Outlook

  • Maintain full operations using virtual workforce model.
  • Resilience of the purchase mortgage market.
  • Attractive refinance market.
  • Strong capital position of MTG and MGIC.
  • Focus on executing business strategies.

Challenges Ahead

  • Uncertainty about the timing and pace of the economic recovery.
  • Long-term impact of loss mitigation efforts undertaken by GSEs and loan servicers.
  • Challenges presented by the COVID-19 pandemic.
  • Lower annual persistency.
  • Adverse economic impact of COVID-19.