Another Ugly Quarter for MGIC: Losses Continue, Revenue Down

MGIC Investment Corp., the nation’s largest mortgage insurer, posted a net loss of $165 million in the third quarter while revenue and new policies written continued to slide amid a depressed housing market.

In early afternoon trading its stock price was off by almost 8% to just over $2 a share. Its 52-week high is $12.

During the first nine months of the year the company has lost $351 million, compared to a net loss of $177 million for the same period last year.

MGIC took in revenues of $337 million in 3Q, a 12% decline from 3Q 2010.

The firm wrote $3.9 billion of new coverage, compared to $3.5 billion in 3Q10. It noted that, “the Home Affordable Refinance Program (HARP) accounted for $645.8 million of insurance that is not included in the new insurance written total for the quarter due to these transactions being treated as a modification of the coverage on existing insurance in force.”

At September 30, MGIC had $179 billion of policies-in-force ranking first nationwide with a market share of roughly 22%, according to figures compiled by National Mortgage News and the Quarterly Data Report.

There are roughly five active MIs left writing new policies, compared to seven a year ago.

Daily Briefing | Friday, October 21, 2011

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Article source: http://www.nationalmortgagenews.com/dailybriefing/2010_458/mgic-losses-continue-1027090-1.html

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