Yahoo Finance

• Net Income (Q4 2024): $185 million.

• Annualized Return on Equity (Q4 2024): 14%.

• Net Income (Full Year 2024): $763 million, up from $730 million in 2023.

• Insurance in Force (End of Q4 2024): Over $295 billion.

• New Insurance Written (Q4 2024): $16 billion.

• New Insurance Written (Full Year 2024): $56 billion, up 21% from 2023.

• Net Income per Diluted Share (Q4 2024): $0.72, compared to $0.66 in Q4 2023.

• Net Income per Diluted Share (Full Year 2024): $2.89, compared to $2.49 in 2023.

• Favorable Loss Reserve Development (Q4 2024): $54 million.

• Delinquency Rate (Q4 2024): 2.4%, increased by 16 basis points.

• In-force Premium Yield (Q4 2024): 38.6 basis points.

• Book Value per Share (End of Q4 2024): $20.82, up 12% year-over-year.

• Net Investment Income (Q4 2024): $61 million.

• Operating Expenses (Q4 2024): $49 million, down from $55 million in Q4 2023.

• Operating Expenses (Full Year 2024): $218 million, down $19 million from 2023.

• Share Repurchases (Q4 2024): 7.8 million shares for $193 million.

• Common Stock Dividend (Q4 2024): $33 million.

• Dividend from MGIC to Holding Company (Q4 2024): $400 million.

• Remaining Share Repurchase Authorization (As of January 31, 2025): $372 million.

• Warning! GuruFocus has detected 9 Warning Signs with WEC.

Release Date: February 04, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• MGIC Investment Corp (NYSE:MTG) reported a solid fourth quarter with a net income of $185 million and an annualized 14% return on equity.

• The company wrote $16 billion in new insurance in the fourth quarter and $56 billion for the full year, marking a 21% increase from the previous year.

• MGIC Investment Corp returned approximately $700 million to shareholders through stock repurchases and dividends, representing a 92% payout ratio of the year's net income.

• The company's reinsurance agreements reduced PMIERs required assets by $2.2 million or approximately 40% at the end of the fourth quarter.

• Operating expenses were reduced to $49 million in the fourth quarter, down from $55 million in the same period last year, with expectations for further reductions in 2025.

Negative Points

• The account-based delinquency rate increased by 16 basis points to 2.4% in the fourth quarter, influenced by seasonal trends and hurricane-related delinquencies.

• The impact of Hurricanes Helene and Milton resulted in approximately 700 new delinquency notices, adding uncertainty to future credit performance.

• Despite strong operating results, MGIC Investment Corp noted that opportunities for growing insurance in force have been constrained due to market size.

• The book yield on the investment portfolio was flat quarter-over-quarter, with net investment income slightly down by $1 million sequentially.

• Unrealized loss positions on the investment portfolio increased by $129 million due to rising yields across the treasury curve.