MGIC Investment Corporation (MTG) has reported a 29.78 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $89.80 million, or $0.24 a share in the quarter, compared with $69.19 million, or $0.17 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $117.10 million, or $0.31 a share compared with $76.13 million or $0.19 a share, a year ago.
Revenue during the quarter went up marginally by 0.89 percent to $260.88 million from $258.58 million in the previous year period.
Benefits, losses and expenses for the quarter were at $86.92 million, or 18.66 percent of premium earned from $154.89 million or 34.22 percent of premium earned in the last year period. Operating income for the quarter was $173.96 million, compared with $103.69 million in the previous year period.
Property and casualty insurance division has booked premium of $229.10 million on net basis during the quarter, up 3.51 percent or $7.76 million from year-ago period.
Net investment income was at $29.48 million for the quarter, up 6 percent or $1.67 million from year-ago period. The company has booked a loss on investments of $0.12 million in the quarter compared with a gain of $3.06 million for the previous year period.
Patrick Sinks, chief executive officer of MTG and Mortgage Guaranty Insurance Corporation ("MGIC"), said, "I am pleased to report that our insurance in force continued to grow, persistency has started to rise, and the new delinquent notices declined as the newer books of business continue to generate low levels of new delinquent notices and the legacy portfolio continues to runoff. Additionally, the anticipated claim rate on existing delinquencies declined and we maintained our traditionally low expense ratio.” Sinks also said, “During the quarter we notified holders of our 2% Convertible Senior Notes due in 2020 that we would redeem all of the notes on April 21 which accelerates their decision to convert their notes to shares of our common stock. Finally, in the quarter the holding company received a $20 million dividend from MGIC."
Assets grow, liabilities fall
Total assets increased 2.20 percent or $127.07 million to $5,903.89 million on Mar. 31, 2017. On the other hand, total liabilities were at $3,256.36 million as on Mar. 31, 2017, down 5.06 percent or $173.65 million from year-ago. Return on assets stood at 1.80 percent in the quarter, up 0.34 from 1.45 percent in the last year period. At the same time, return on equity was at 3.39 percent in the quarter, up 0.44 from 2.95 percent in the last year period.
Investments move up marginally
Investments stood at $4,649.28 million as on Mar. 31, 2017, up 1.86 percent or $85.08 million from year-ago. Meanwhile, yield on investments went up 2 basis points to 0.63 percent in the quarter. Meanwhile, reinsurance recoverables moved up 13.47 percent or $5.54 million over the year to $46.66 million on Mar. 31, 2017.
Total debt was at $1,329.42 million as on Mar. 31, 2017, up 21.13 percent or $231.92 million from year-ago. Shareholders equity stood at $2,647.53 million as on Mar. 31, 2017, up 12.81 percent or $300.72 million from year-ago.
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