trending Market Intelligence /marketintelligence/en/news-insights/trending/ea7py92JjU-eHC9jSO094g2 content esgSubNav
Log in to other products

Login to Market Intelligence Platform

 /


Looking for more?

Contact Us
In This List

MGIC Investment Q2 net income drops YOY due to higher provision for taxes

Infrastructure Issues: Tools to Dig Deep on Potential Risks

Part Two IFRS 9 Blog Series: The Need to Upgrade Analytical Tools

2018 US Property Casualty Insurance Market Report

Fintech

Fintech Funding Flows To Insurtech In February


MGIC Investment Q2 net income drops YOY due to higher provision for taxes

MGIC InvestmentCorp. reported second-quarter net income of $109.2 million, or 26cents per share, down from $113.7 million, or 28 cents per share, in the prioryear-quarter.

The S&P Capital IQ consensus GAAP EPS estimate for thequarter was 20 cents.

Second-quarter pretax income was $165.2 million, up from$115.0 million in the prior-year quarter.

Total revenues climbed to $263.5 million in the secondquarter from $243.1 million in the year-ago quarter.

Second-quarter net premiums written rose to $250.0 millionfrom $226.8 million in the prior-year quarter. Net premiums earned alsoincreased to $231.5 million from $213.5 million. Net investment income was$27.2 million, up from $25.8 million.

New insurance written in the second quarter was $12.6billion, up 6.7% from $11.8 billion in the year-ago period. Persistency, or thepercentage of insurance remaining in force from one year prior, was 79.6% as ofJune 30, compared with 80.4% as of June 30, 2015.

Losses incurred in the second quarter were $46.6 million,compared with $90.2 million in the prior-year quarter. During the secondquarter, the company had positive development on its primary loss reserves,resulting in a $55 million reduction in losses incurred. The positivedevelopment in the second quarter of 2015 was approximately $22 million.

Book value per share was $7.37 as of June 30, compared with$6.58 as of Dec. 31, 2015, and $3.65 as of June 30, 2015.

The company's GAAP loss ratio for insurance operations inthe second quarter was 20.1%, compared with 38.4% in the linked quarter and42.3% in the year-ago quarter. Its GAAP underwriting expense ratio forinsurance operations was 13.9% in the second quarter, compared with 16.9% in theprior quarter and 15.0% in the year-ago period.

MGIC Investment recorded a tax provision of $56.0 million inthe second quarter, compared with $1.3 million in the year-ago period. Theincrease in the tax provision was attributed to the reversal of the company'sdeferred tax asset valuation allowance in 2015.