MGIC Investment (MTG) Misses Q2 EPS by 2c

MGIC Investment (NYSE: MTG) reported Q2 EPS of $0.12, $0.02 worse than the analyst estimate of $0.14. Revenue for the quarter came in at $231.2 million versus the consensus estimate of $237.13 million.

Curt S. Culver, CEO and Chairman of the Board of Mortgage Guaranty Insurance Corporation ("MGIC") and MTG, said, "I am pleased that the positive operating trends affecting new insurance writings and credit performance continued and resulted in another profitable quarter." Relative to the recently proposed GSE mortgage insurance eligibility requirements he further added that "throughout the financial crisis MGIC has demonstrated its commitment to remaining an approved mortgage insurer with the GSEs and I expect we will meet the requirements of the proposed mortgage insurer eligibility requirements even if they become effective in their current form. We will be providing comments to the FHFA and the GSEs to reflect the appropriate changes required to the proposed standards such that they promote a liquid, affordable and stable housing market that reduces taxpayer risk, incent private capital to participate, and keep the cost of homeownership financing affordable."

New insurance written in the second quarter was $8.3 billion, compared to $8.0 billion in the second quarter of 2013. As of June 30, 2014, MGIC's primary insurance in force was $159.3 billion, compared with $158.7 billion at December 31, 2013, and $158.6 billion at June 30, 2013. Persistency, or the percentage of insurance remaining in force from one year prior, was 82.4 percent at June 30, 2014, compared with 79.5 percent at December 31, 2013, and 78.0 percent at June 30, 2013.

At June 30, 2014, the percentage of loans that were delinquent, excluding bulk loans, was 7.30 percent, compared with 8.92 percent at December 31, 2013, and 10.16 percent at June 30, 2013. Including bulk loans, the percentage of loans that were delinquent at June 30, 2014 was 8.98 percent, compared to 10.76 percent at December 31, 2013, and 12.00 percent at June 30, 2013.

For earnings history and earnings-related data on MGIC Investment (MTG) click here.

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