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Dec 31, 2021

MGIC Q4 2021 Earnings Report

MGIC Investment Corporation reported strong financial results due to solid credit quality, a growing insurance in force, a strong housing market, a decreasing delinquency rate, and favorable economic conditions.

Key Takeaways

MGIC Investment Corporation reported a net income of $173.9 million, or $0.52 per diluted share, for the fourth quarter of 2021. The company capitalized on one of the largest mortgage insurance markets in its history by writing a record $120 billion of new insurance in 2021, including $27 billion in the fourth quarter.

Net income for the quarter was $173.9 million, or $0.52 per diluted share.

Adjusted net operating income for the quarter was $202.0 million, or $0.61 per diluted share.

New insurance written was $27.1 billion, primarily reflecting a decrease in the refinance market.

Insurance in force of $274.4 billion increased by 2.2% during the quarter and 11.3% compared to the prior year.

Total Revenue
$294M
Previous year: $302M
-2.7%
EPS
$0.61
Previous year: $0.43
+41.9%
Persistency
62.6%
Previous year: 60.5%
+3.5%
Gross Profit
$987M
Previous year: $1.02B
-3.5%
Cash and Equivalents
$285M
Previous year: $288M
-1.1%
Free Cash Flow
$182M
Previous year: $222M
-18.1%
Total Assets
$7.33B
Previous year: $7.35B
-0.4%

MGIC

MGIC

Forward Guidance

MGIC agreed to terms on a quota share transaction with a group of unaffiliated reinsurers covering most of our new insurance written in 2022 and 2023.