Private mortgage insurance provider MGIC Investment Corp. today reported second-quarter income of $174.4 million, up approximately 13 percent from the $154.5 million reported for the same quarter a year ago.
Diluted earnings per share was $1.87 for the second quarter, up approximately 20 percent from $1.56 for the same quarter a year ago.
Net income for the first six months of 2005 was $356.4 million, up 25 percent from the $284.6 million for the same period last year.
Curt S. Culver, president and chief executive officer of MGIC Investment Corp. and Mortgage Guaranty Insurance Corp., said that he remains pleased with delinquency inventory and joint-venture performance but that attractive interest rates and strong home-price appreciation continue to negatively impact insurance in force and associated revenues.
Total revenues for the second quarter were $395 million, down 2 percent from $403.1 million in the second quarter of 2004. The decline in revenues resulted from a 5.9 percent decrease in net premiums earned to $311.6 million. Net premiums written for the quarter were $309.2 million, compared with $319.1 million in the second quarter last year, a decrease of 3.1 percent.
New insurance written in the second quarter was $16.6 billion, compared to $16.1 billion in the second quarter of 2004. New insurance written for the quarter included $6.2 billion of bulk business compared with $2.9 billion in the same period last year.
The percentage of second-quarter loans that were delinquent, excluding bulk loans, was 3.7 percent, compared with 3.99 percent at Dec. 31, 2004, and 3.58 percent at June 30, 2004.
Losses incurred in the second quarter were $136.9 million, down from $154.1 million reported for the same period last year due primarily to a decrease in the delinquency inventory.
Underwriting expenses were $68.9 million in the second quarter, down from $73.6 million reported for the same period last year.
Income from joint ventures, net of tax, for the second quarter was $44.5 million, up from $34.8 million for the same period last year.
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