Looks like the private mortgage insurers are smelling the glove...MTG's delinquencies and credit losses soar:
biz.yahoo.com
MGIC INVESTMENT CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
Three Months Ended Six Months Ended
June 30, June 30,
2002 2001 2002 2001
(in thousands of dollars, except per share data)
Net premiums written $286,615 $256,903 $569,712 $486,491
Net premiums earned $288,169 $257,372 $572,618 $498,554
Investment income 51,654 51,566 103,604 101,611
Realized gains 4,975 7,882 13,093 21,575
Other revenue 39,037 22,723 70,088 38,282
Total revenues 383,835 339,543 759,403 660,022
Losses and expenses:
Losses incurred 64,416 36,304 124,130 65,681
Underwriting, other
expenses 64,833 59,874 130,758 112,765
Interest expense 9,828 7,127 16,452 15,690
Ceding commission (1,784) (1,350) (3,241) (2,587)
Total losses and expenses 137,293 101,955 268,099 191,549
Income before tax 246,542 237,588 491,304 468,473
Provision for income tax 75,606 76,370 151,181 149,331
Net income $170,936 $161,218 $340,123 $319,142
Weighted average common
shares outstanding
(Shares in thousands) 105,921 108,102 106,470 107,954
Diluted earnings per share (a) $1.61 $1.49 $3.19 $2.96
OTHER INFORMATION
New primary insurance
written ("NIW") ($ millions) $21,809 $22,399 $45,383 $39,128
New primary risk written
($ millions) $5,472 $5,468 $11,409 $9,457
Product mix as a % of primary NIW
95% LTVs 37% 38% 36% 38%
ARMs 7% 3% 6% 3%
95% LTV / 30% coverage 26% 27% 25% 27%
90% LTV / 25% coverage 29% 30% 30% 30%
Refinances 35% 43% 42% 41%
New pool risk written ($ millions) $83 $110 $190 $158
(a) Diluted earnings per share includes amounts contributed from C-BASS
of $0.13 and $0.08 for the three months ended June 30, 2002 and 2001,
respectively, and of $0.23 and $0.15 for the six months ended
June 30, 2002 and 2001, respectively.
MGIC INVESTMENT CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET AS OF
June 30, December 31, June 30,
2002 2001 2001
(In thousands of dollars, except per share data)
ASSETS
Investments (a) $4,464,821 $4,069,447 $3,745,095
Cash 17,109 26,392 12,320
Reinsurance recoverable on
loss reserves (b) 22,948 26,888 28,276
Reinsurance recoverable on
unearned premiums 7,656 8,415 8,294
Home office and equipment, net 35,470 34,762 32,137
Deferred insurance policy
acquisition costs 31,511 32,127 28,175
Other assets 384,799 368,981 316,592
$4,964,314 $4,567,012 $4,170,889
LIABILITIES AND SHAREHOLDERS'
EQUITY
Liabilities:
Loss reserves (b) $626,728 $613,664 $599,252
Unearned premiums 170,879 174,545 168,277
Short- and long-term debt 613,851 472,102 408,426
Other liabilities 308,360 286,514 214,603
Total liabilities 1,719,818 1,546,825 1,390,558
Shareholders' equity 3,244,496 3,020,187 2,780,331
$4,964,314 $4,567,012 $4,170,889
Book value per share $31.22 $28.47 $25.93
(a) Investments include
unrealized gains on
securities marked to
market pursuant to FAS 115. $157,311 $83,790 $97,257
(b) Loss reserves, net of
reinsurance recoverable
on loss reserves $603,780 $586,776 $570,976
OTHER STATISTICAL INFORMATION
June 30, December 31, June 30,
2002 2001 2001
Direct Primary Insurance In Force
($ millions) $194,501 $183,904 $171,600
Direct Primary Risk In Force
($ millions) (c) 48,153 45,243 41,749
Direct Pool Risk In Force
($ millions) 2,112 1,950 1,823
Mortgage Guaranty Insurance
Corporation -
Risk-to-capital ratio 9.0:1 9.1:1 9.9:1
Primary Insurance:
Insured loans 1,647,866 1,580,283 1,504,931
Persistency 59.5% 61.0% 71.7%
Total loans delinquent 59,314 54,653 41,390
Percentage of loans delinquent
(delinquency rate) 3.60% 3.46% 2.75%
Loans delinquent excluding bulk
loans (d) 35,251 36,193 29,584
Percentage of loans delinquent
excluding bulk loans
(delinquency rate) 2.55% 2.65% 2.18%
Bulk loans delinquent 24,063 18,460 11,806
Percentage of bulk loans
delinquent (delinquency rate) 8.97% 8.59% 8.13%
(c) Direct primary risk in force, net of aggregate loss limits, was
$46,067 and $42,678 at June 30, 2002 and December 31, 2001,
respectively.
(d) Bulk loans are those that are part of a negotiated transaction
between the lender and the mortgage insurer.
SOURCE: MGIC Investment Corporation |
