NYSE$MTG

MGIC Investment Corporation · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

MGIC Investment Corporation's financial performance was characterized by robust financial results, influenced by the credit quality of insurance in force, a strong housing market, reduced new delinquencies, and improving economic conditions.

MGIC Investment Corporation reported a strong second quarter in 2021, with net income of $153.1 million, or $0.44 per diluted share, and adjusted net operating income of $151.5 million, also $0.44 per diluted share. The company benefited from a strong housing market, improving economic conditions, and a decrease in new delinquencies.

  • New insurance written was $33.6 billion, reflecting the strength of the purchase mortgage market.
  • Insurance in force increased to $262.0 billion, growing by 4.1% during the quarter and 13.7% compared to the previous year.
  • The loss ratio improved to 11.6%, compared to 89.2% in the second quarter of 2020.
  • Primary delinquency inventory decreased to 42,999 loans.

Headline financials

Total Revenue

$298M

Previous: $294M+1.3%
EPS (adj)

$0.44

Previous: $0.03+1366.7%
New Insurance Written (NIW)

$33.6B

Previous: $28.2B+19.1%
Insurance In Force (IIF)

$262B

Previous: $231B+13.7%
Primary Delinquency Inventory

43.0K

No prior period
Loss Ratio

11.6%

Previous: 89.2%-87.0%
Underwriting Expense Ratio

22.3%

Previous: 20.1%+10.9%
Net Premium Yield (bps)

39.1

Previous: 42.7-8.4%
Capital Expenditures

-$1.41M

Previous: -$942K-49.2%
Free Cash Flow

$152M

Previous: $13.1M+1057.2%
Net Income

$153M

Previous: $14M+989.6%
Operating Income

$212M

Previous: $29.4M+620.3%
Gross Profit

$266M

Previous: $73.7M+260.5%
Cash & Equivalents

$179M

Previous: $367M-51.3%
Total Assets

$7.58B

Previous: $6.57B+15.2%

Revenue & EPS history

MGIC · Revenue · Quarterly

$298M

Q2 2021+1.3%vs Q2 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Forward guidance

Reflecting the increase in capital position, and long-term confidence in transformed business model a $150 million dividend was declared and paid from MGIC to our holding company subsequent to quarter end.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

-0.2%

Avg return

Earnings day

+0.9%

Avg return

5 days after

+3.3%

Avg return

30 days after

54%

37 / 68 earnings

Positive

+35.4%

Q4 2012

Best reaction

-65.7%

Q2 2012

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-9.0%-9.9%-13.5%
Q4 2025-5.2%-0.9%-2.8%
Q3 2025+0.8%+2.5%+8.2%
Q1 2025+1.6%+4.4%+6.2%
Q4 2024+1.8%+0.5%-6.0%
Q3 2024+1.2%+3.8%+8.8%
Q2 2024-1.0%-5.5%+2.7%
Q1 2024+1.1%+3.3%+3.6%
Q4 2023-1.2%-4.8%-2.0%
Q3 2023+1.4%+6.3%+5.4%
Q2 2023+5.3%+7.9%+6.0%
Q1 2023-1.4%+1.3%+6.8%
Q4 2022+1.2%-2.4%-1.5%
Q3 2022-1.8%-1.2%-2.5%
Q2 2022+3.5%+3.5%-0.3%
Q1 2022-0.5%-3.8%+1.8%
Q4 2021-0.7%+1.3%-4.7%
Q3 2021-6.8%-4.3%-14.0%
Q2 2021+1.8%+3.8%+10.6%
Q1 2021-8.1%-8.0%-4.5%
Q4 2020+1.7%-3.7%+1.3%
Q3 2020-4.0%+3.7%+16.7%
Q2 2020+1.7%+3.4%+12.1%
Q1 2020+5.9%+0.0%+45.5%
Q4 2019+3.0%+1.1%-9.4%
Q3 2019+2.8%+3.0%+2.5%
Q2 2019+3.2%-3.0%-5.1%
Q1 2019+3.6%+5.3%-0.9%
Q4 2018+2.0%+1.0%+13.6%
Q3 2018-0.9%-2.8%-4.8%
Q2 2018+9.7%+10.7%+11.1%
Q1 2018-3.9%-4.2%-0.7%
Q4 2017+3.2%+4.0%-5.3%
Q3 2017+5.4%+4.5%+9.8%
Q2 2017+0.6%-1.4%-4.4%
Q1 2017-1.6%-0.5%-3.0%
Q4 2016+2.1%+1.0%+4.4%
Q3 2016+6.7%+7.3%+13.7%
Q2 2016+7.2%+8.5%+23.4%
Q1 2016-4.5%
Q4 2015-13.7%
Q3 2015+2.2%
Q2 2015-2.4%
Q1 2015+2.1%
Q4 2014+0.6%
Q3 2014+6.0%
Q2 2014-7.2%
Q1 2014+6.4%
Q4 2013-7.6%
Q3 2013+12.9%
Q2 2013+12.3%
Q1 2013-6.6%
Q4 2012+35.4%
Q3 2012-3.0%
Q2 2012-65.7%
Q1 2012+2.6%
Q4 2011-2.0%
Q3 2011-11.0%
Q2 2011+9.0%
Q1 2010+1.6%
Q1 2011+1.4%
Q4 2008-3.4%
Q4 2010-3.4%
Q3 2010-2.4%
Q3 2009-2.4%
Q4 2009-1.6%
Q2 2010-1.6%
Q2 2009-1.6%

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