MGIC Investment Corp. reported third-quarter net income of $181.9 million, or 49 cents per share, up from $120.0 million, or 32 cents per share, in the year-ago quarter.
The S&P Global Market Intelligence consensus GAAP EPS estimate for the quarter was 36 cents.
Total revenues for the quarter climbed year over year to $290.4 million from $270.4 million. Net premiums written for the quarter totaled $251.9 million, compared to $255.9 million in the year-ago quarter. Net premiums earned came in at $250.4 million for the most recent quarter, up from $237.1 million in the prior-year period.
The increase was primarily due to the positive primary loss reserve development during the quarter. The positive loss reserve development resulted in a decrease in ceded losses, and a decrease in ceded premiums earned which were driven by a higher profit commission. The reserve development also resulted in a decrease of the accrual for premium refunds as the company expects to pay fewer claims on the delinquent inventory. This benefit was partially offset by a lower premium yield on the higher average insurance in force in the quarter compared to the third quarter of 2017.
New primary insurance written increased to $14.5 billion from $14.1 billion in the prior-year period. Persistency, or the percentage of insurance remaining in force from one year prior, was 81.0% at Sept. 30, compared to 78.8% at Sept. 30, 2017.
Losses incurred during the third quarter were a negative $1.5 million, compared to $29.7 million in the third quarter of 2017. During the third quarter, there was a $59 million reduction in losses incurred due to positive development on primary loss reserves, before reinsurance, for previously received delinquent notices, compared to a reduction of $38 million in the third quarter of 2017.
The company's GAAP loss ratio from insurance operations was a negative 0.6% for the third quarter, compared with 12.5% in the year-ago period. Its GAAP underwriting expense ratio from insurance operations was 17.6% for the quarter, compared with 15.7% in the prior-year quarter.
MGIC'S book value per share was $9.64 at Sept. 30, compared to $8.45 at Sept. 30, 2017.