MGIC Investment (MTG) Q3 2024 earnings summary

Executive summary

• Net income for Q3 2024 was $200 million, up 9% year-over-year, with a 15.6% ROE and $0.77 diluted EPS, reflecting strong profitability and disciplined risk management.

• Insurance in force ended at $293 billion, with annual persistency at 85.3% and coverage of 1.1 million mortgages.

• New insurance written reached $17.2 billion, up 27% from the prior quarter, reflecting market share gains and a stronger market position.

• AM Best upgraded financial strength and credit ratings to A with a stable outlook.

• MGIC maintained a strong capital position, supported by prudent capital strategies and robust stakeholder value.

Financial highlights

• Adjusted net operating income was $0.77 per diluted share, up from $0.64 last year.

• Total revenue was $307 million, up from $305 million last quarter and $297 million year-over-year.

• Net investment income reached $62.1 million, up 12% year-over-year.

• Operating expenses were $51 million in Q3, with a year-to-date total of $162.7 million, down 7% year-over-year.

• Book value per share grew to $20.66, up 19% year-over-year.

Outlook and guidance

• In-force premium yield expected to remain relatively flat for the year.

• Full-year operating expenses guided to $215 million–$225 million, with expectations for lower expenses in 2025.

• Persistency rate remains high at 85.3%, with expectations for continued stability.

• 2024 NIW is expected to be slightly higher than 2023, reflecting a stronger market position.

• Forward-looking statements caution that actual results may differ due to risk factors disclosed in SEC filings.