MGIC Investment posts 1Q profit

Special to The Freeman

April 22, 2014

MILWAUKEE MGIC Investment Corp. on Tuesday reported a first quarter profit as delinquent loans and losses on claims decreased.

MGIC, a Milwaukee-based mortgage insurer, said its net income for the quarter was $60 million, or 15 cents a share, compared with a loss of $72.9 million, or 31 cents a share, in the first quarter of 2013.

"I am pleased with the credit performance during the quarter and am encouraged by the level of the new business being written given the significant decline in refinance transactions compared to last year and the slow start in home sales given this winter's harsh conditions," said Curt S. Culver, chairman and chief executive. "I feel the company is in an excellent position to take advantage of the housing recovery.

According to the company, the percentage of delinquent loans dropped to 9.67 percent from 12.83 percent a year earlier. In addition, losses incurred in the first quarter were $122.6 million, down from $266.2 million a year earlier.

New insurance written in the quarter totaled $5.2 billion, down from $6.5 billion in the first quarter of 2013.