This describes the real state of the economy:
(Originally posted by Ramsey Su on another thread)
MGIC Investment Corporation Third Quarter Net Income of $105.1 Million
MILWAUKEE, Oct. 15 /PRNewswire-FirstCall/ -- MGIC Investment Corporation (NYSE: MTG) today reported net income for the quarter ended September 30, 2003 of $105.1 million, compared with the $151.6 million for the same quarter a year ago. Diluted earnings per share was $1.06 for the quarter ending September 30, 2003, compared to $1.47 for the same quarter a year ago.
Net income for the first nine months was $390.0 million, compared with $491.7 million for the same period last year, a decrease of 21.0 percent. For the first nine months of 2003, diluted earnings per share was $3.94 compared with $4.66 last year, a 15.5 percent decrease.
Curt S. Culver, president and chief executive officer of MGIC Investment Corporation and Mortgage Guaranty Insurance Corporation (MGIC), said that the long term positive development during the quarter -- record new insurance written volume -- was more than offset by higher incurred losses. The higher incurred losses were a result of an increase in delinquent loans and an increase in claims paid which were impacted by the lack of job growth, especially in the manufacturing sector. As a result of these delinquencies and paid claims the Company increased reserves by $96 million.
Total revenues for the third quarter were $445.6 million, up 14 percent from $390.8 million in the third quarter of 2002. The growth in revenues resulted from a 16 percent increase in net premiums earned to $346.6 million and an increase in other revenues. Net premiums written for the quarter were $346.6 million, compared with $301.4 million in the third quarter last year, an increase of 15 percent.
New insurance written in the third quarter was $28.0 billion, compared to $21.9 billion in the third quarter of 2002. New insurance written for the quarter included $7.3 billion of bulk business compared with $4.4 billion in the same period last year. New insurance written in the first nine months of 2003 was $77.5 billion compared to $67.3 billion for the same period last year and includes $20.6 billion of bulk business compared to $16.7 billion in the same period last year.
Persistency, or the percentage of insurance remaining in force from one year prior, was 44.9 percent at September 30, 2003, compared with 56.8 percent at December 31, 2002, and 58.9 percent at September 30, 2002. As of September 30, 2003, MGIC's primary insurance in force was $191.0 billion, compared with $197.0 billion at December 31, 2002, and $196.6 billion at September 30, 2002. The book value of MGIC Investment Corporation's investment portfolio was $5.1 billion at September 30, 2003, compared with $4.7 billion at December 31, 2002, and $4.6 billion at September 30, 2002.
At September 30, 2003, the percentage of loans that were delinquent, excluding bulk loans, was 3.67 percent, compared with 3.19 percent at December 31, 2002, and 2.85 percent at September 30, 2002. Including bulk loans, the percentage of loans that were delinquent at September 30, 2003 was 5.41 percent, compared to 4.45 percent at December 31, 2002, and 4.04 percent at September 30, 2002.
Losses incurred in the third quarter were $220.7 million, up from $101.1 million reported for the same period last year due to increases in the delinquency inventory and paid losses. Underwriting expenses were $77.7 million in the third quarter up from $66.8 million reported for the same period last year due to increases in underwriting volumes.
More of this report at:
investor.mgic.com |
