Q4 2024 MGIC Investment Corp Earnings Call Transcript
Key Points
- MGIC Investment Corp (MTG) reported a solid fourth quarter with a net income of $185 million and an annualized 14% return on equity.
- The company wrote $16 billion in new insurance in the fourth quarter and $56 billion for the full year, marking a 21% increase from the previous year.
- MGIC Investment Corp returned approximately $700 million to shareholders through stock repurchases and dividends, representing a 92% payout ratio of the year's net income.
- The company's reinsurance agreements reduced PMIERs required assets by $2.2 million or approximately 40% at the end of the fourth quarter.
- Operating expenses were reduced to $49 million in the fourth quarter, down from $55 million in the same period last year, with expectations for further reductions in 2025.
- The account-based delinquency rate increased by 16 basis points to 2.4% in the fourth quarter, influenced by seasonal trends and hurricane-related delinquencies.
- The impact of Hurricanes Helene and Milton resulted in approximately 700 new delinquency notices, adding uncertainty to future credit performance.
- Despite strong operating results, MGIC Investment Corp noted that opportunities for growing insurance in force have been constrained due to market size.
- The book yield on the investment portfolio was flat quarter-over-quarter, with net investment income slightly down by $1 million sequentially.
- Unrealized loss positions on the investment portfolio increased by $129 million due to rising yields across the treasury curve.
Good day, ladies and gentlemen, and thank you for standing by. Welcome to the Q4 2024 MGIC Investment Corporation earnings conference call. (Operator Instructions) As a reminder, this conference call is being recorded.
I would now like to turn the conference over to Ms. Dianna Higgins, Head of Investor Relations. Ma'am, please begin.
Thank you, Howard. Good morning, and welcome, everyone. Thank you for your interest in MGIC. Joining me on the call today to discuss our results for the fourth quarter are Tim Mattke, Chief Executive Officer; and Nathan Colson, Chief Financial Officer and Chief Risk Officer. Our press release, which contains MGIC's fourth 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
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