MGIC hires advisor to explore options
MGIC Investment Corp., the nation’s leading provider of private mortgage insurance coverage, recently reported a net loss of $1.47 billion, or $18.17 per share, in the fourth quarter, compared with net income of $121.5 million, or $1.47 per share, in the same period a year ago. Curt Culver, chairman and chief executive officer of the Milwaukee-based company, said MGIC incurred low loan cure rates, higher loss severities and higher delinquencies. Culver said the company does not foresee net income for 2008. He added that, despite the difficult operating environment, the company has adequate capital to meet its claim obligations. To strengthen the company’s ability to capitalize on its strong business fundamentals, the company has retained an advisor to assist it in exploring alternatives for increasing its capital. MGIC’s net loss for the full year of 2007 was $1.67 billion, compared with net income of $564.7 million for 2006. Diluted loss per share for the full year was $20.54 compared with diluted earnings per share of $6.65 in 2006
Milwaukee law firm is first in British Credit Services Association
Milwaukee-based Kohner, Mann & Kailas S.C. recently became the first American law firm to be accepted as a member of the British Credit Services Association (CSA).
In Britain, the CSA is a self-regulatory industry body, the only national association for companies active in relation to unpaid credit accounts. Members handle more than 20 million debt cases annually, representing claims of $30 billion (£15 billion) in value. Today the CSA has members in many countries, including China, India and South Africa and is a member of the 15 nation Federation of European National Collection Associations (FENCA).
More information about the British Credit Services Association can be found at www.csa-uk.com/csa/about.php.
Madison biotech firm receives funding
Nerites Corp., a Madison company that develops novel tissue repair products and coatings for medical devices, has completed a $5.7 million Series A round of funding. Venture Investors LLC of Madison, Wisconsin, with participation by Black Mountain Ventures of Foster City, California, led the investment. Previously, Nerites had raised $3 million from private investors. The company will use the funding to refine product development plans, begin product development and expand its business development plan for bringing the first tissue adhesive products on to the market.
Acuity caps record year
Acuity Insurance in Sheboygan reported a record financial year in 2007. In 2007, Acuity’s policyholders’ surplus grew to an all-time high of $761 million, up 11.4 percent from the previous year and more than 40 higher than the industry standard, the company said. The company’s combined loss and expense ratio, where 100.0 is considered break-even for operations, and lower ratios are more profitable, was 97.5. Acuity is a property and casualty insurer that operates in 17 states, writes $810 million in premium through more than 800 independent agencies and manages more than $2 billion in assets.
Choppy housing market doesn’t stop Mortgagebot
Mortgagebot LLC, a Mequon-based provider of consumer-direct online and enterprise-wide point-of-sale mortgage-origination solutions, posted a record year in 2007, despite the housing bubble and the subprime market meltdown
The company has reported a record number of clients, record volume of its Mortgagebot PowerSite solution and record market penetration among commercial banks, savings institutions and credit unions. Mortgagebot said its "same-store" mortgage originations were up an average of 22 percent and its client base grew 20 percent in 2007.
