NYSE$MTG

MGIC Investment Corporation · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

MGIC reported strong financial results driven by high-quality insurance in force, a strong housing market, decreasing delinquencies, and improving economic conditions.

MGIC Investment Corporation reported a net income of $158.0 million, or $0.46 per diluted share, for the third quarter of 2021. Adjusted net operating income was $157.1 million, or $0.46 per diluted share.

  • New insurance written was $28.7 billion, reflecting a decrease in the refinance market.
  • Insurance in force increased by 2.4% during the quarter and 12.3% compared to the prior year.
  • The loss ratio for the third quarter of 2021 was 8.1%, compared to 15.9% for the third quarter of 2020.
  • The underwriting expense ratio associated with insurance operations for the third quarter of 2021 was 21.9%.

Headline financials

Total Revenue

$296M

Previous: $296M-0.1%
EPS (adj)

$0.46

Previous: $0.43+7.0%
Insurance In Force (IIF)

$268B

Previous: $239B+12.3%
Loss Ratio

8.1%

Previous: 15.9%-49.1%
Net Premium Yield (bps)

38.4

Previous: 43.6-11.9%
Capital Expenditures

-$2.39M

Previous: -$2.21M-7.9%
Free Cash Flow

$156M

Previous: $129M+21.0%
Net Income

$158M

Previous: $131M+20.8%
Operating Income

$225M

Previous: $207M+8.8%
Gross Profit

$279M

Previous: $252M+10.6%
Cash & Equivalents

$176M

Previous: $380M-53.6%
Total Assets

$7.51B

Previous: $7.15B+5.1%
Stock-Based Comp

$12.1M

No prior period

Revenue & EPS history

MGIC · Revenue · Quarterly

$296M

Q3 2021-0.1%vs Q3 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Forward guidance

MGIC did not provide specific forward guidance in this earnings report. The report highlights the company's strong capital position and confidence in its business model, as evidenced by share repurchases and dividend payments.

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 Q3 2021

Historical avgQ3 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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