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Sep 30, 2022

MGIC Q3 2022 Earnings Report

MGIC Investment Corporation reported strong results driven by solid financial performance and strategic execution.

Key Takeaways

MGIC Investment Corporation reported a net income of $249.6 million, or $0.81 per diluted share, for the third quarter of 2022, compared to $158.0 million, or $0.46 per diluted share, for the third quarter of 2021. Adjusted net operating income was $264.2 million, or $0.86 per diluted share, compared to $157.1 million, or $0.46 per diluted share for the same period last year.

New insurance written was $19.6 billion, reflecting a decrease in origination markets.

Persistency increased to 75.7%, indicating a higher percentage of insurance remaining in force.

Insurance in force increased to $293.6 billion, demonstrating growth in the company's insured portfolio.

Primary delinquency inventory decreased, with the percentage of delinquent loans insured decreasing to 2.17%.

Total Revenue
$293M
Previous year: $296M
-1.0%
EPS
$0.86
Previous year: $0.46
+87.0%
New Insurance Written
$19.6B
Insurance In Force
$294B
Previous year: $268B
+9.4%
Loss Ratio
-41.7%
Previous year: 8.1%
-614.8%
Gross Profit
$234M
Previous year: $242M
-3.1%
Cash and Equivalents
$242M
Previous year: $176M
+37.2%
Free Cash Flow
$122M
Previous year: $162M
-24.8%
Total Assets
$6.15B
Previous year: $7.51B
-18.1%

MGIC

MGIC

Forward Guidance

While rising interest rates, decelerating home prices, and macroeconomic concerns have resulted in increased risks and uncertainties, the company's financial strength and capital flexibility position it to navigate the changing economic cycle.