Private mortgage insurance provider MGIC Investment Corp. (NYSE:MTG) reported second-quarter net income of $154.5 million, up 7.4 percent from $143.8 million for the same quarter a year ago. Diluted earnings per share rose to $1.56 in the second quarter, compared to $1.46 for the same quarter a year ago.
Net income for the first six months of 2004 was $284.6 million, down 0.1 percent from $284.9 million for the same period last year. For the first six months of 2004, diluted earnings per share was $2.87 compared with $2.87 for the same period last year.
Curt S. Culver, president and chief executive officer of MGIC Investment Corp. and Mortgage Guaranty Insurance Corp. (MGIC), in a company statement said that the lack of growth of insurance in force has continued to negatively impact earned premiums. As a result, we expect earned premiums to be challenged for the balance of the year. However, we remain encouraged by the credit loss development.
Total revenues for the second quarter were $403.1 million, down 6.7 percent from $432.1 million in the second quarter of 2003. The decline in revenues resulted primarily from a 1.8 percent decrease in net premiums earned, to $331.1 million. Net premiums written for the quarter were $319.1 million, compared with $320.5 million in the second quarter last year.
New insurance written in the second quarter was $16.1 billion, down 58 percent from $25.4 billion in the second quarter of 2003. New insurance written for the quarter included $2.9 billion of bulk business compared with $6.6 billion in the same period last year. New insurance written in the first six months of 2004 was $29.1 billion versus $49.5 billion for the same period last year and includes $5 billion of bulk business versus $13.3 billion in the same period last year.
The percentage of second-quarter loans delinquent, excluding bulk loans, grew to 3.58 percent from 3.38 percent during the same quarter last year.
Second-quarter losses at the company fell to $154.1 million from $173.1 million reported for the same period last year, due primarily to a lower growth rate of the delinquency inventory. Underwriting expenses were $73.6 million in the second quarter, down from $80.1 million reported for the same period last year due to decreases in underwriting volumes.
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