Milwaukee-based MGIC Investment Corp. today reported third quarter earnings that were lower than a year ago, but beat analysts’ expectations for the quarter.
The mortgage insurance company reported third quarter net income of $56.6 million, or 14 cents per diluted share, down from $822.9 million, or $1.78 per diluted share, in the third quarter of 2015. Analysts had predicted earnings of 19 cents per share.
In the third quarter of 2015, MGIC’s net income included $739.3 million from a change in its deferred tax asset valuation allowance.
Net operating income in the third quarter of 2016 was $102.2 million, up from $83.1 million in the same period a year ago.
MGIC wrote $14.2 billion in new insurance in the third quarter, up from $12.4 million in the third quarter of 2015. It also decreased its primary delinquent inventory by 20 percent. The company now has $180.1 billion of insurance in force, up from $172.7 billion in the same period a year ago.
Revenue totaled $273.9 million in the third quarter, up from $269.5 million in the third quarter of 2015. The third quarter of 2016 included $5.1 million in net realized investment gains, up from $0.6 million a year ago.
“I am pleased to report that our insurance in force continued to grow as we added $14.2 billion of high-quality new insurance, the newer books of business continue to generate low levels of new delinquent notices, the legacy books continue to runoff, and we maintained our traditionally low expense ratio,” said Patrick Sinks, chief executive officer of MGIC Investment Corp. and Mortgage Guaranty Insurance Corp. “In August, we accessed the senior debt markets and continued our efforts to improve and simplify our capital profile, and reduce the number of potentially dilutive shares. Finally, the holding company received another $16 million dividend from MGIC, bringing the year-to-date total to $48 million.”