NYSE$MTG

MGIC Investment Corporation · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

MGIC Investment Corporation's financial results for the third quarter of 2024 were reported, with net income of $200.0 million.

MGIC Investment Corporation reported a net income of $200.0 million for the third quarter of 2024, resulting in $0.77 per diluted share. The adjusted net operating income was $200.7 million, also equating to $0.77 per diluted share. The company achieved a 15.6% return on equity.

  • Net income for Q3 2024 was $200.0 million, or $0.77 per diluted share.
  • Adjusted net operating income (Non-GAAP) for Q3 2024 was $200.7 million, or $0.77 per diluted share.
  • New insurance written (NIW) for Q3 2024 reached $17.2 billion.
  • Insurance in force totaled $292.8 billion.

Headline financials

Total Revenue

$307M

Previous: $297M+3.4%
EPS

$0.77

Previous: $0.64+20.3%
Capital Expenditures

-$660K

Previous: -$1.46M+54.6%
Free Cash Flow

$199M

Previous: $181M+9.9%
Net Income

$200M

Previous: $183M+9.4%
Operating Income

$248M

Previous: $244M+1.9%
Gross Profit

$299M

Previous: $294M+1.8%
Stock-Based Comp

$6.56M

Previous: $5.58M+17.6%

Revenue & EPS history

MGIC · Revenue · Quarterly

$307M

Q3 2024+3.4%vs Q3 2023
Beat estimate in 1 of 15 quarters(7%)
ActualEstimate

Forward guidance

MGIC has agreed upon the terms of a 40% quota share transaction with a group of unaffiliated reinsurers covering most of their 2025 and 2026 NIW. MGIC elected to terminate their 2021 quota share reinsurance transaction effective December 31, 2024, and expects to incur termination fees of approximately $8 million.

Tailwinds

  • Agreement on terms for a 40% quota share reinsurance transaction for 2025 and 2026 NIW.
  • Declared a dividend of $0.13 per common share to shareholders payable on November 21, 2024.
  • Continued share repurchases with an additional 2.9 million shares bought back in October for $72.4 million.
  • MGIC paid a dividend of $400 million to the holding company.

Headwinds

  • Termination of the 2021 quota share reinsurance transaction will result in approximately $8 million in termination fees.
  • Potential negative impact on NIW if the proposed regulatory capital rule imposing higher capital standards on large U.S. banks is adopted as proposed.
  • Uncertainty regarding the extent of the impact of the FHA's mortgage insurance premium rate decrease on NIW.
  • Risk of increased losses due to limitations on rescission rights on new insurance written.
  • Dependence on third-party reporting for information regarding mortgage loans insured, which may be subject to lapses or inaccuracies.

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 2024

Historical avgQ3 2024

-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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