Published on 2 May 2024 on Zacks via Yahoo Finance

MGIC Investment (MTG) Q1 Earnings Top, Revenues Miss Estimates

MGIC Investment Corporation MTG reported first-quarter 2024 operating net income per share of 65 cents, which beat the Zacks Consensus Estimate by 8.3%. The better-than-expected earnings were driven by higher net investment income and lower underwriting and other expenses. The insurer continues to benefit from favorable credit trends and the resiliency of the housing market.  The bottom line improved 20.3% year over year.MGIC Investment recorded total operating revenues of $303 million, which increased 3.8% year over year on higher net investment income. The top line, however, missed the consensus mark by 0.4%.

Operational Update

Insurance in force declined 0.5% from the prior-year quarter to $290.9 billion. The company missed our estimate of $292.6 billion.The insurer witnessed a 2.5% decrease in primary delinquency to 24,142 loans.Net premiums earned declined 2.5% year over year to $242.6 million. The figure was lower than our estimate of $252 million.