Boston, MA 10/17/2013 (wallstreetpr) – MGIC Investment Corp. (NYSE:MTG) surprised everyone by declaring a profit in its third quarter on lower revenues. This was the second consecutive quarter in which the company has declared profits after years of loss making. The continued recovery in the U.S housing market helped the company as mortgage rates were low and housing prices moved in the affordable range. The company reported lower revenues at $254.4 million, a drop of 17% from $306.2 million for the same period last year. The earnings were $0.04 per share against analysts’ estimates of ($0.13) amounting to $12.1 million. Last year the company had reported a loss of $246.9 million, or $1.22 per share in the same period. Delinquent loans shrunk to 11.51% from 14.51%, excluding bulk loans the figure is 9.69% against 12.34% for the same period last year. This shows that the quality of loans has improved. Net premiums written fell to $234.3 million from $263.5 million while net premiums earned declined to $231.9 million from $266.4 million. “Net premiums written” measures the value of all new and renewal policies sold during the period. “Net premiums earned” measures the premiums the company earns when policies expire. The company has reported annual losses in the last six years. The company reported its first quarterly profits in three years, in the second quarter, this year. The company had increased its market share when the main competitor, Federal Housing Administration, raised prices.
The markets reacted to the news very positively; the share touched a 52 week high of $8.48 briefly before closing at $8.33, a rise of 14.74%. at the end of trade on October 16, 2013. It moved in the range of $7.77 to $8.48. The 52 week high is at $8.48, and the 52 week low is at $1.42. Analysts are watching the movement of the share before reviewing their ratings.
