It has been about a month since the last earnings report for MGIC Investment (MTG Quick QuoteMTG - Free Report) . Shares have lost about 1.7% in that time frame, outperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is MGIC due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

MGIC Investment Q4 Earnings Beat, Revenues Fall Y/Y

MGIC Investment reported fourth-quarter 2021 adjusted net operating income per share of 61 cents, which beat the Zacks Consensus Estimate by 35.6%. The bottom line increased 41.9% year over year.

The quarterly results reflect a high quality of increased insurance in force, which benefited from a strong housing market and improved economic conditions.

Operational Update

Insurance in force improved 11.3% from the prior-year quarter to $274.4 billion. The company witnessed a decline of 42.3% in primary delinquency to 33,290 loans.

MGIC Investment reported total operating revenues of $292.9 million, down 2.1% year over year on lower premium earned.

Net premiums written were $238.2 million, up 2.1% year over year, driven by an increase in insurance in force and profit commission, and profit commissions from quota share reinsurance transactions, partially offset by the effects of a decrease in the direct premium yield and an increase in ceded premiums written before the impact of the profit commission.

Net investment income rose 8.3% year over year to $39.1 million due to an increase in the consolidated investment portfolio. It was partially offset by lower investment yields.

Persistency, the percentage of insurance remaining in force from one year prior, was 62.6% as of Dec 31, 2021, up 210 basis points (bps) year over year.

New insurance written was $27.1 billion, down 13.6% year over year, reflecting a decrease in the refinance market.

Net underwriting and other expenses totaled $75.6 million, down 32.6% year over year attributable to lower losses incurred, interest expense and underwriting and other expenses.

In the quarter under review, the loss ratio was (9.9%) compared with 17.5% in the year-ago quarter.

Full-Year Update

Adjusted net operating income per share of $1.91 beat the Zacks Consensus Estimate by 35.6%. The bottom line increased 44.7% year over year.

Operating revenues of $1.3 billion increased 12% year over year.

Financial Update

Book value per share, a measure of net worth, grew 9.4% to $15.18 as of Dec 31, 2021 from 2020 end.

MGIC Investment had $663 million in investments, cash and cash equivalents, down 21.7% from the figure at 2020 end.

Total assets were $7.3 billion, down 1.4% from the 2020-end level. Debt declined 8.3% from 2020 end to $1.1 billion as of Dec 31, 2021.

PMIERs available assets were $5.7 billion, which were $2.2 billion above its minimum required assets as of Dec 31, 2021.

MGIC Investment bought back 9 million shares and paid a $250 million dividend to MGIC Investment Corporation.

Capital Deployment

MGIC Investment bought back 9 million shares and paid a $250 million dividend to MGIC Investment Corporation in the reported quarter.

In January, the company bought back another $60 million worth of shares.

The board of directors authorized an additional $500 million share repurchase program through the end of 2023.

The board of directors declared a dividend of 8 cents per share to be paid out on Mar 2, 2022, to shareholders of record as of Feb 16.

How Have Estimates Been Moving Since Then?

Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.