Q2 2024 MGIC Investment Corp Earnings Call Transcript
Key Points
- MGIC Investment Corp (MTG) reported a net income of $204 million for the second quarter, generating an annualized 16% return on equity.
- The company repurchased 7.6 million shares of common stock for $157 million and paid a quarterly common stock dividend totaling $31 million.
- MGIC Investment Corp (MTG) has maintained a strong and balanced insurance portfolio with excellent credit performance, leading to favorable financial results.
- The company has increased its insurance in force by $78 billion over the last five years, demonstrating robust growth.
- MGIC Investment Corp (MTG) has a strong balance sheet and liquidity, with $990 million of liquidity at the holding company by the end of the quarter.
- The mortgage origination industry continues to face challenges due to higher interest rates, resulting in affordability issues and limited supply of homes for sale.
- Annual persistency ended the first quarter at 85%, down slightly in the quarter.
- The level of new delinquency notices may increase in the second half of 2024 due to seasonality and higher loss emergence years from 2020 through 2022.
- Higher interest rates have led to lower valuations for fixed income investments, posing a headwind for book value per share.
- Operating expenses for the full year are expected to be in the range of $215 million to $225 million, indicating ongoing cost pressures.
Ladies and gentlemen, thank you for standing by. Welcome to the MGIC Investment Corporation Second Quarter 2024 Earnings Call. (Operator Instructions). Please be advised that todayâs conference is being recorded.
I will now turn the conference over to Dianna Higgins, Head of Investor Relations. Please go ahead.
Thank you, Andrew. Good morning. Welcome, everyone. Thank you for your interest in MGIC. Joining me on the call to discuss our results for the second quarter are Tim Mattke, Chief Executive Officer and Nathan Colson, Chief Financial Officer and Chief Risk Officer.
Our press release, which contains MGICâs second quarter financial results was issued yesterday and is available on our website at mtg.mgic.com under Newsroom, includes additional information about our quarterly results that we will refer to during the call today. It also includes a reconciliation of non-GAAP financial measures to their most comparable GAAP measures.
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