MGIC Investment Corp (MTG) Reports Q3 2023 Net Income of $182.8 Million
MGIC Investment Corp (NYSE:MTG) reported a net income of $182.8 million for Q3 2023, compared to $249.6 million for Q3 2022.
The company's adjusted net operating income for Q3 2023 was $183.0 million.
New insurance written was $14.6 billion, compared to $19.6 billion in Q3 2022.
Insurance in force increased by 0.6% during the quarter to $294.3 billion.
On October 31, 2023, MGIC Investment Corp (NYSE:MTG) released its Q3 2023 earnings report. The company reported a net income of $182.8 million or $0.64 per diluted share, compared to a net income of $249.6 million or $0.81 per diluted share for the same period in 2022. The adjusted net operating income for Q3 2023 was $183.0 million or $0.64 per diluted share, compared to $264.2 million or $0.86 per diluted share for Q3 2022.
Financial Highlights
New insurance written for the quarter was $14.6 billion, compared to $19.6 billion in Q3 2022. The insurance in force as of September 30, 2023, was $294.3 billion, marking a 0.6% increase during the quarter and a 0.2% increase compared to September 30, 2022. The primary delinquency inventory of loans increased from 23,823 in Q2 2023 to 24,720 in Q3 2023.
Tim Mattke, CEO of MTG and Mortgage Guaranty Insurance Corporation (MGIC) commented,
We delivered another quarter of solid financial results. We continue to benefit from favorable credit trends, prudent risk management strategies, and the talent and dedication of our people. We remain in an excellent position to provide our customers with quality offerings and superior service and deliver long-term value for our shareholders."
Financial Tables Summary
MGIC's total revenues for Q3 2023 were $296.5 million, compared to $292.8 million in Q3 2022. The increase primarily reflects an increase in net investment income, partially offset by a decrease in net premiums earned. Premiums earned in Q3 2023 were $241.3 million compared to $252.1 million for the same period last year. Net premiums written for the quarter were $234.5 million, compared to $242.3 million for the same period last year.
Net losses incurred in Q3 2023 were $(0.1) million, compared to $(105.1) million in the same period last year. Net underwriting and other expenses were $52.9 million in Q3 2023 compared to $61.7 million in Q3 2022. The decrease in net underwriting and other expenses was primarily due to a decrease in expenses related to professional and consulting services and pension expenses.
Company Performance Analysis
Despite a decrease in net income compared to the same period last year, MGIC Investment Corp (NYSE:MTG) has shown resilience in its financial performance. The company's increase in new insurance written and insurance in force indicates a positive trend in its core business operations. Furthermore, the decrease in net underwriting and other expenses suggests effective cost management strategies.
However, the increase in the primary delinquency inventory of loans may be a potential area of concern that needs to be monitored closely. Overall, the company's financial results reflect a solid performance, backed by favorable credit trends and prudent risk management strategies.
Explore the complete 8-K earnings release (here) from MGIC Investment Corp for further details.
This article first appeared on GuruFocus.
