MGIC Investment Corp. (MTG), a mortgage insurance coverage provider, reported Friday a wider loss for the third quarter, as weak economy, higher unemployment and lower home prices resulted in an increase in delinquencies. Net premiums earned during the quarter also declined from the prior year.
The Milwaukee, Wisconsin-based company's net loss for the third quarter widened to $517.77 million or $4.17 per share from $115.38 million or $0.93 per share in the previous year. Effective January 1, 2009, MGIC said it adopted a new accounting standard regarding the accounting for convertible debt instruments that may be settled in cash upon conversion. Subsequently, amounts relating to 2008 have been retrospectively adjusted to reflect the adoption. Earnings per share contribution from realized gains and impairment losses for the quarter was $0.27, compared to $0.15 per share a year ago.
On average, seven analysts polled by Thomson Reuters expected the company to report a loss of $1.62 per share for the quarter. Analysts' estimates typically exclude special items.
Net premiums earned during the quarter declined to $293.51 million from $342.31 million in the earlier year. Total revenues for the quarter were $413.34 million, down from $461.63 million in the prior year. Four analysts had a consensus revenue estimate of $437.03 million for the quarter. The company noted that other revenue during the quarter include a gain of $6.4 million resulted from the repurchase of $42.3 million of long term debt due in September 2011.
Total losses and expenses significantly increased to $1.03 billion from $670.43 million in the preceding year. Losses incurred were $971 million, up from $788.3 million last year, mainly due to an increase in delinquencies. Net underwriting and other expenses decreased to $59.1 million from $62.4 million in the previous year. For the nine-month period, the company posted net loss of $1.04 billion or $8.39 per share, compared to a net loss of $249.77 million or $2.26 per share in the same period last year. Net premiums earned for the period dropped to $996.48 million from $1.04 billion a year ago. Total revenues marginally decreased to $1.3 billion from $1.31 billion reported in the same period last year.
On October 14, the company said MGIC Investment Corporation and Mortgage Guaranty Insurance Corporation or MGIC and MGIC Indemnity Corporation or MIC, a wholly owned MGIC subsidiary, entered into an agreement with Fannie Mae under which MGIC will contribute $200 million to MIC and Fannie Mae approved MIC as an eligible mortgage insurer through December 31, 2011 subject to the terms of the Agreement. MTG closed Thursday's regular trading at $7.32 on the NYSE.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.