Milwaukee-based MGIC Investment Corp. today reported its first quarter profit was up 60 percent year-over-year, driven by a booming housing market.
The mortgage insurer reported first quarter net income of $143.6 million, or 38 cents per diluted share, up from $89.8 million, or 24 cents per share, in the first quarter of 2017.
Adjusted net operating income was $144.6 million, up from $117 million in the first quarter of 2017.
MGIC’s revenue totaled $265.8 million, up from $260.9 million in the year-ago quarter.
MGIC wrote $10.6 billion in new insurance in the quarter, up from $9.3 billion in new insurance written in the first quarter of 2017. Insurance in force was $197.5 billion, up 7.6 percent year-over-year. Primary delinquent inventory declined by 9.1 percent during the year.
The company benefited from a reduced statutory income tax rate, with an effective income tax rate of 20.2 percent in the first quarter, down from 32.7 percent in the first quarter of 2017.
MGIC had $5.6 billion in total assets as of March 31, down from $5.9 billion on March 31, 2017.
“We continue to benefit from the current conditions of the employment and housing markets, favorable demographics that are helping fuel the purchase mortgage market, and a higher interest rate environment,” said Patrick Sinks, chief executive officer of MGIC Investment Corp. and Mortgage Guaranty Insurance Corp. “While the operating environment continues to be very dynamic, we saw our insurance in force and investment income increase, and the primary delinquent inventory continue to decline. Finally, in the quarter the holding company received a $50 million dividend from MGIC.”
