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MGIC Investment Corporation (MTG - Free Report) reported second-quarter 2024 operating net income per share of 77 cents, which beat the Zacks Consensus Estimate by 24.2%. Moreover, the bottom line increased 13.2% year over year.
MGIC Investment recorded total operating revenues of $306 million, which increased 3.4% year over year on higher net investment income, other revenues and premiums earned. The top line beat the consensus mark by 0.6%.
The quarterly results reflected higher premiums written, improved net investment income and lower underwriting and other expenses, partially offset by lower insurance in force.
MGIC Investment Corporation Price, Consensus and EPS Surprise
Insurance in force decreased 0.3% from the prior-year quarter to $291.6 billion, which missed the Zacks Consensus Estimate of $295.26 billion.
The insurer witnessed a 1.9% year-over-year decrease in primary delinquency to 23,370 loans.
Net premiums written increased 0.9% year over year to $233.5 million. The figure was lower than our estimate of $238.5 million.
Net investment income increased 17.5% year over year to $61.5 million. Our estimate was $58 million.
Persistency — the percentage of insurance remaining in force from one year prior — was 85.4% as of Jun 30, 2024, down from 85.9% reported in the year-ago quarter.
New insurance written was $13.5 billion, up 8.8% year over year. Our estimate was $10 billion.
Net underwriting and other expenses totaled $54.8 million, down 3.1% year over year.
For the quarter under review, the loss ratio was negative 7.5% compared with negative 7.3% for the second quarter of 2023.
Financial Update
Book value per share, a measure of net worth, increased 5.2% from 2023-end to $19.58 as of Jun 30, 2024.
Shareholder equity was $5.1 billion as of Jun 30, 2024, up 0.8% from 2023-end.
MGIC's PMIERs Available Assets totaled $5.8 billion or $2.4 billion above its Minimum Required Assets as of Jun 30, 2024.
Assets were $6.5 billion as of Jun 30, 2024, down 0.2% from the 2023-end level. Debt was $644 million as of Jun 30, 2024, which remained unchanged from the 2023-end level.
Capital Deployment
MGIC Investment repurchased 7.6 million shares using $157 million of holding company cash.
In April 2024, the board approved an additional share repurchase program that authorized it to purchase up to $750 million of shares prior to Dec 31, 2026.
Through Jul 26, 2024, MTG repurchased an additional 2.2 million shares of using $49 million of holding company cash.
The board of directors approved a 13% increase to its quarterly dividend to 13 cents per share. The dividend will be paid out on Aug 22, 2024, to shareholders of record at the close of business on Aug 8, 2024.
The Hartford Financial Services Group, Inc. (HIG - Free Report) reported second-quarter 2024 adjusted operating earnings of $2.50 per share, which beat the Zacks Consensus Estimate by 10.6%. The bottom line climbed 33% year over year. Operating revenues of HIG amounted to $4.46 billion, which improved 9.4% year over year in the quarter under review. However, the top line missed the consensus mark of $4.49 billion.
Earned premiums of Hartford Financial rose 6.9% year over year to $5.6 billion in the second quarter but missed the Zacks Consensus Estimate by 0.9%. The metric was driven by an 8.9% and 2.2% year-over-year rise in P&C and Group Benefits’ earned premiums, respectively. Pre-tax net investment income of $602 million grew 11.5% year over year but missed the consensus mark by 1%. Total benefits, losses and expenses increased 3.7% year over year to $5.6 billion in the quarter under review. Pretax income of $912 million increased 35.7% year over year in the second quarter.
CNO Financial Group, Inc. (CNO - Free Report) reported second-quarter 2024 adjusted earnings per share of $1.05, which beat the Zacks Consensus Estimate by 45.8%. Moreover, the bottom line rose 94.4% year over year. Total revenues increased 4.2% year over year to $1.07 billion in the second quarter. The top line beat the consensus mark by 16.4%. Total insurance policy income of $641.5 million improved 2.1% year over year and beat the Zacks Consensus Estimate by 1.2%.
CNO’s net investment income increased 2.4% year over year to $409.1 million in the second quarter. General account assets grew 8.3% year over year to $351.7 million and beat the consensus mark by 14.1%. However, the policyholder and other special-purpose portfolios declined 37.3% year over year to $57.4 million. New annualized premiums for health and life products improved 4.3% year over year to $102.9 million. Annuity, Health and Life products accounted for 27.7%, 49.4% and 22.9%, respectively, of CNO’s insurance margin. Total benefits and expenses were $915.6 million, which declined 1.2% year over year.
Radian Group Inc. (RDN - Free Report) reported second-quarter 2024 adjusted operating income of 99 cents per share, which beat the Zacks Consensus Estimate by 13.8%. Moreover, the bottom line increased 8.8% year over year. Operating revenues increased 12.3% year over year to $325.6 million. Net premiums earned were $237.7 million, up 11.4% year over year. Net investment income increased 16.4% year over year to $73.7 million.
MI New Insurance Written decreased 18% year over year to $13.9 billion. Primary mortgage insurance in force increased 2.2% year over year to $272.8 billion. Persistency — the percentage of mortgage insurance in force that remains in the company’s books after a 12-month period — was 84% as of Jun 30, 2024, up 100 basis points (bps) year over year. Primary delinquent loans were 20,276 as of Jun 30, 2024, up 2% year over year.
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MGIC Investment (MTG) Beats Q2 Earnings, Raises Dividend
MGIC Investment Corporation (MTG - Free Report) reported second-quarter 2024 operating net income per share of 77 cents, which beat the Zacks Consensus Estimate by 24.2%. Moreover, the bottom line increased 13.2% year over year.
MGIC Investment recorded total operating revenues of $306 million, which increased 3.4% year over year on higher net investment income, other revenues and premiums earned. The top line beat the consensus mark by 0.6%.
The quarterly results reflected higher premiums written, improved net investment income and lower underwriting and other expenses, partially offset by lower insurance in force.
MGIC Investment Corporation Price, Consensus and EPS Surprise
MGIC Investment Corporation price-consensus-eps-surprise-chart | MGIC Investment Corporation Quote
Operational Update
Insurance in force decreased 0.3% from the prior-year quarter to $291.6 billion, which missed the Zacks Consensus Estimate of $295.26 billion.
The insurer witnessed a 1.9% year-over-year decrease in primary delinquency to 23,370 loans.
Net premiums written increased 0.9% year over year to $233.5 million. The figure was lower than our estimate of $238.5 million.
Net investment income increased 17.5% year over year to $61.5 million. Our estimate was $58 million.
Persistency — the percentage of insurance remaining in force from one year prior — was 85.4% as of Jun 30, 2024, down from 85.9% reported in the year-ago quarter.
New insurance written was $13.5 billion, up 8.8% year over year. Our estimate was $10 billion.
Net underwriting and other expenses totaled $54.8 million, down 3.1% year over year.
For the quarter under review, the loss ratio was negative 7.5% compared with negative 7.3% for the second quarter of 2023.
Financial Update
Book value per share, a measure of net worth, increased 5.2% from 2023-end to $19.58 as of Jun 30, 2024.
Shareholder equity was $5.1 billion as of Jun 30, 2024, up 0.8% from 2023-end.
MGIC's PMIERs Available Assets totaled $5.8 billion or $2.4 billion above its Minimum Required Assets as of Jun 30, 2024.
Assets were $6.5 billion as of Jun 30, 2024, down 0.2% from the 2023-end level. Debt was $644 million as of Jun 30, 2024, which remained unchanged from the 2023-end level.
Capital Deployment
MGIC Investment repurchased 7.6 million shares using $157 million of holding company cash.
In April 2024, the board approved an additional share repurchase program that authorized it to purchase up to $750 million of shares prior to Dec 31, 2026.
Through Jul 26, 2024, MTG repurchased an additional 2.2 million shares of using $49 million of holding company cash.
The board of directors approved a 13% increase to its quarterly dividend to 13 cents per share. The dividend will be paid out on Aug 22, 2024, to shareholders of record at the close of business on Aug 8, 2024.
Zacks Rank
MGIC Investment currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Multi-Line Insurers
The Hartford Financial Services Group, Inc. (HIG - Free Report) reported second-quarter 2024 adjusted operating earnings of $2.50 per share, which beat the Zacks Consensus Estimate by 10.6%. The bottom line climbed 33% year over year. Operating revenues of HIG amounted to $4.46 billion, which improved 9.4% year over year in the quarter under review. However, the top line missed the consensus mark of $4.49 billion.
Earned premiums of Hartford Financial rose 6.9% year over year to $5.6 billion in the second quarter but missed the Zacks Consensus Estimate by 0.9%. The metric was driven by an 8.9% and 2.2% year-over-year rise in P&C and Group Benefits’ earned premiums, respectively. Pre-tax net investment income of $602 million grew 11.5% year over year but missed the consensus mark by 1%. Total benefits, losses and expenses increased 3.7% year over year to $5.6 billion in the quarter under review. Pretax income of $912 million increased 35.7% year over year in the second quarter.
CNO Financial Group, Inc. (CNO - Free Report) reported second-quarter 2024 adjusted earnings per share of $1.05, which beat the Zacks Consensus Estimate by 45.8%. Moreover, the bottom line rose 94.4% year over year. Total revenues increased 4.2% year over year to $1.07 billion in the second quarter. The top line beat the consensus mark by 16.4%. Total insurance policy income of $641.5 million improved 2.1% year over year and beat the Zacks Consensus Estimate by 1.2%.
CNO’s net investment income increased 2.4% year over year to $409.1 million in the second quarter. General account assets grew 8.3% year over year to $351.7 million and beat the consensus mark by 14.1%. However, the policyholder and other special-purpose portfolios declined 37.3% year over year to $57.4 million. New annualized premiums for health and life products improved 4.3% year over year to $102.9 million. Annuity, Health and Life products accounted for 27.7%, 49.4% and 22.9%, respectively, of CNO’s insurance margin. Total benefits and expenses were $915.6 million, which declined 1.2% year over year.
Radian Group Inc. (RDN - Free Report) reported second-quarter 2024 adjusted operating income of 99 cents per share, which beat the Zacks Consensus Estimate by 13.8%. Moreover, the bottom line increased 8.8% year over year. Operating revenues increased 12.3% year over year to $325.6 million. Net premiums earned were $237.7 million, up 11.4% year over year. Net investment income increased 16.4% year over year to $73.7 million.
MI New Insurance Written decreased 18% year over year to $13.9 billion. Primary mortgage insurance in force increased 2.2% year over year to $272.8 billion. Persistency — the percentage of mortgage insurance in force that remains in the company’s books after a 12-month period — was 84% as of Jun 30, 2024, up 100 basis points (bps) year over year. Primary delinquent loans were 20,276 as of Jun 30, 2024, up 2% year over year.