Boston, MA 10/15/2014 (wallstreetpr) – MGIC Investment Corp. (NYSE:MTG) today reported 3Q14 earnings for the period ended September 30, 2014. The company reported strong growth in its Q3’14. Net income jumped to $72 million compared to $12.1 million, while total revenues decreased on YoY basis to $235.1 million from $254.4 million in 3Q’13.
Solid quarterly growth was primarily attributable to increase in new insurance written and decrease in the delinquency inventory during 3Q’14. Chairman and CEO, Curt S. Culver, expressed that MGIC will continue to be an important part of the evolving housing finance system.
Growth Drivers
MGIC Investment Corp. (NYSE:MTG) reported $10.4 billion of new insurance written in third quarter against $8.6 billion last year. Other revenues increased by 24% to $3.1 million in Q3’14. Net premium written for Q3’14 decreased by 4.86% to $222.9 million.
The Corporation’s primary insurance in force increased marginally whereas Persistency increased by 82.8% as on September 30, 2014. The company defines persistency as the ‘percentage of insurance remaining in force from one year prior.’
The growth was also attributable to significant 36% YoY decrease in losses incurred during 3Q14, which amounted to $115.3 million. Net underwriting and other expenses also declined significantly to $37 million during 3Q14.
The positive developments were also attributable to improving credit performance, lower claim rates on delinquencies, and fewer new delinquency notices received during the quarter.
Year-to-Date Performance
MGIC Investment Corp. (NYSE:MTG)’s total revenues decreased by 10.92% to $701.4 million during nine-month period of FY14. Other revenue decreased by 22% to $6.03 million in 2014.
Net income for the nine-month period of FY14 jumped to $177.5 million as compared to a net loss of $(48.4) million in the same prior-year period. New insurance written for the nine-month period of 2014 increased marginally to $23.9 billion from $23.1 billion for the same prior-year period.
