MGIC Investment (MTG) Q2 2024 earnings summary

Executive summary

• Net income for Q2 2024 was $204.2 million, up 7% year-over-year, with diluted EPS of $0.77, reflecting strong business performance and prudent risk management.

• Insurance in force reached $291.6 billion at June 30, 2024, with $13.5 billion in new insurance written and a weighted average FICO of 746.

• Delinquency rate was 2.1% with 23,370 loans delinquent, and net losses incurred in Q2 2024 were $(19) million, aided by favorable prior period development.

• Continued strong credit quality, disciplined capital returns, and a focus on long-term value creation.

• Board authorized a 13% increase in the quarterly dividend to $0.13 per share and a new $750 million share repurchase program.

Financial highlights

• Net income per diluted share was $0.77, up from $0.66 in Q2 2023; adjusted net operating income per share was also $0.77.

• Total revenue reached $305 million, and net premiums earned were $243.5 million for Q2 2024.

• Net investment income was $61.5 million in Q2 2024, up 17% year-over-year.

• Book value per share increased to $19.58 at June 30, 2024, up from $17.09 a year earlier.

• Operating expenses were $55 million, down from $61 million in Q1 and $57 million in Q2 2023.

Outlook and guidance

• In-force premium yield and persistency rate are expected to remain relatively flat through 2024, with a high persistency rate of 85.4%.

• Operating expenses for the full year are projected to be within the $215 million–$225 million range.

• Management remains focused on agility in responding to market dynamics and is optimistic about H2 2024 opportunities.

• Project a seasonal increase in new delinquency notices in H2 2024, with cure activity expected to moderate.

• Capital requirements and risk distribution remain well managed, with 40% of risk ceded through reinsurance.