Milwaukee, Wisconsin – MGIC Investment Corporation, a leading mortgage insurance company, recently held its Q1 2024 Earnings Conference Call on May 2, 2024. The call provided insights into the company’s financial performance for the first quarter of the year.

During the call, key company personnel, including Dianna Higgins, Head of Investor Relations, Tim Mattke, Chief Executive Officer, and Nathan Colson, Chief Financial Officer & Chief Risk Officer, discussed the results of the quarter. The company reported net income of $174 million, showcasing a robust annualized return on equity of 13.7%.

One of the highlights of the call was the discussion around the company’s approach to managing risk and capital allocation, emphasizing the balance between acquiring, managing, and distributing risk. MGIC’s reinsurance programs were noted for addressing risk of loss and capital efficiency, contributing to attractive returns for stakeholders.

In terms of business operations, MGIC wrote $9 billion of new insurance during the quarter, with the quarterly revenue driven mainly by $291 billion in insurance in force. The company emphasized maintaining strong credit quality and performance in its insurance portfolio, with consistent adherence to underwriting standards.

Despite challenges in the mortgage origination industry, including smaller market volumes, elevated interest rates, and limited housing supply, MGIC remains optimistic about opportunities in the mortgage insurance market in the long term. The company highlighted persistency trends and the impact of higher interest rates on the insurance in force.

Capital management was also a key focus, with MGIC repurchasing shares of common stock, paying dividends, and announcing a new $750 million share repurchase program. The company’s capital structure, including balance sheet capital and reinsurance agreements, plays a crucial role in risk and capital management strategies.

Overall, MGIC expressed confidence in its financial performance, credit quality, and capital generation. The company remains committed to delivering value to shareholders, customers, and stakeholders, while adapting to evolving market conditions.

As the housing market continues to evolve, MGIC remains well-positioned to navigate challenges and capitalize on opportunities for growth. The company’s strategic approach to risk management, capital allocation, and business operations sets a strong foundation for future success in the mortgage insurance industry.