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Sep 30, 2023
MGIC Q3 2023 Earnings Report
MGIC Investment Corporation's financial results for Q3 2023 were reported, showing a net income of $182.8 million and adjusted net operating income of $183.0 million.
Key Takeaways
MGIC Investment Corporation reported a net income of $182.8 million, or $0.64 per diluted share, for the third quarter of 2023. The adjusted net operating income was $183.0 million, or $0.64 per diluted share. The company's performance benefited from favorable credit trends and prudent risk management strategies.
Net income for the quarter was $182.8 million, or $0.64 per diluted share.
Adjusted net operating income was $183.0 million, or $0.64 per diluted share.
New insurance written was $14.6 billion.
Insurance in force was $294.3 billion.
MGIC
MGIC
Forward Guidance
MGIC provided the following activities for Q4 2023
Positive Outlook
- Repurchased an additional 2.2 million shares of common stock at an average cost of $16.87 per share through October 27, 2023.
- Declared a dividend of $0.115 per common share to shareholders payable on November 28, 2023.
- MGIC paid a $300 million dividend to our holding company.
- Purchased $384.9 million of outstanding notes were purchased via tender offers.
- Executed a $330 million excess of loss reinsurance agreement.
Challenges Ahead
- MGIC will incur approximately $8 million of additional ceded premium in the fourth quarter associated with the cost of the tender premiums and associated expense
- We have elected to terminate our 2020 quota share reinsurance transaction effective December 31, 2023 and expect to incur termination fees of approximately $5 million.
- Home Re 2019-1 Ltd., Home Re 2021-1 Ltd., and Home Re 2021-2 Ltd conducted tender offers for certain tranches of the mortgage insurance-linked notes that supported the reinsurance agreement with MGIC.
- The reinsurance coverage corresponding to the tendered notes was terminated.
- We agreed to terms on a 30% quota share transaction with a group of unaffiliated reinsurers covering most of our new insurance written in 2024.