Private mortgage insurer, MGIC Investment Corp. (MTG) reported second-quarter earnings per share of 12 cents per share, missing the Zacks Consensus Estimate by a penny. In the year-ago quarter, the company had reported earnings of 4 cents per share.
The earnings miss stemmed from a deceleration in top line. Following the earnings miss, share lost 7.07% in value and closed at $7.76.
Total revenue of $$231.2 million declined 12.4% year over year and also lagged the Zacks Consensus Estimate of $235 million. A 9.8% year-over-year decline in $213.4 million net premium written, which was responsible for the decrease in top line, was partly compensated by lower claims.
Premium earned was $207.5 million, down 12.7% year over year.
New insurance written in the second quarter was $8.3 billion compared to $8.0 billion in the second quarter of 2013.
As of Jun 30, 2014, MGIC Investment’s primary insurance in force was $159.3 billion compared with $158.6 billion at Jun 30, 2013.
Persistency, or the percentage of insurance remaining in force from the prior year, was 82.4% at Jun 30, 2014 compared with 78.0% at Jun 30, 2013.
MGIC Investment incurred lower losses of $141.1 million in the quarter