Industry News

Real estate loan insurer boosts profits

MGIC attributes gains to joint ventures, fewer losses

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Private mortgage insurance provider MGIC Investment Corp. today reported third-quarter net income of $142.4 million, up 6.2 percent from $134.1 million during the same quarter a year ago. Diluted earnings per share was $1.55 for the third quarter, up 13.8 percent from $1.36 for the same quarter a year ago. Net income for the first nine months of 2005 was $498.8 million, up 19.1 percent from $418.7 million reported for third-quarter 2004. Curt S. Culver, president and chief executive officer of MGIC Investment Corp. and Mortgage Guaranty Insurance Corp., said that he was pleased with the improvement in credit losses and the contribution from joint ventures but that insurance in force and associated revenues continue to be challenged by low interest rates and strong home-price appreciation. Total revenues for the third quarter were $375.7 million, down 3.9 percent from $391 million in the third quarter of 2004. The decline in revenues resulted from a 5.7 percent decrease in net p...