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MGIC Investment 1Q Net Income

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MGIC Investment reported net income for the quarter ended March 31, 2005 of $182.0 million, compared with the $130.1 million for the same quarter a year ago.

Diluted earnings per share were $1.90 for the quarter ending March 31, 2005, compared to $1.31 for the same quarter a year ago.

Curt S. Culver, president and chief executive officer of MGIC Investment Corporation and Mortgage Guaranty Insurance Corporation (MGIC), said he was pleased with the improvement in delinquency inventory and joint venture performance during the quarter; but was disappointed with the decline of insurance in force and associated revenues.

Total revenues for the first quarter were $384.9 million, down 7.3 percent from $415.4 million in the first quarter of 2004. The decline in revenues resulted from a 7.4 percent decrease in net premiums earned to $316.1 million. Net premiums written for the quarter were $312.2 million, compared with $329.1 million in the first quarter last year, a decrease of 5.1 percent.

New insurance written in the first quarter was $11.4 billion, compared to $12.9 billion in the first quarter of 2004. New insurance written for the quarter included $2.5 billion of bulk business compared with $2.1 billion in the same period last year.

Persistency, or the percentage of insurance remaining inforce from one year prior, was 59.7 percent at March 31, 2005, compared with 60.2 percent at December 31, 2004, and 51.0 percent at March 31, 2004. As of March 31, 2005, MGIC’s primary insurance inforce was $172.1 billion, compared with $177.1 billion at December 31, 2004, and $185.3 billion at March 31, 2004. The book value of MGIC Investment Corporation’s investment portfolio was $5.7 billion at March 31, 2005, compared with $5.6 billion at December 31, 2004, and $5.5 billion at March 31, 2004.

At March 31, 2005, the percentage of loans that were delinquent, excluding bulk loans, was 3.77 percent, compared with 3.99 percent at December 31, 2004, and 3.52 percent at March 31, 2004. Including bulk loans, the percentage of loans that were delinquent at March 31, 2005 was 5.71 percent, compared to 6.05 percent at December 31, 2004, and 5.34 percent at March 31, 2004.

Losses incurred in the first quarter were $98.9 million, down from $190.7 million reported for the same period last year due primarily to a decrease in the number of loans delinquent. Underwriting expenses were $68.8 million in the first quarter, up slightly from $68.2 million reported for the same period last year.

Income from joint ventures, net of tax in the quarter, was $34.2 million, up from $23.0 million for the same period last year.

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MGIC Investment 1Q Net Income
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