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MGIC Investment Q4 Earnings Beat, Revenues Miss Estimates
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MGIC Investment Corporation (MTG - Free Report) reported fourth-quarter 2024 operating net income per share of 72 cents, which beat the Zacks Consensus Estimate by 10.8%. Moreover, the bottom line increased 10.2% year over year.
The quarterly results reflected higher new insurance written, improved net investment income, and higher insurance in force.
MGIC Investment recorded total operating revenues of $303.1 million, which increased 6.4% year over year on higher net investment income, net premiums earned and other revenues. The top line however missed the consensus mark by 1.1%.
MGIC Investment Corporation Price, Consensus and EPS Surprise
Insurance in force increased 0.6% from the prior-year quarter to $295.4 billion. The Zacks Consensus Estimate was $294 billion. Our estimate was $293.6 billion.
The insurer witnessed a 4.4% increase in primary delinquency to 26,791 loans.
Net premiums written increased 5.9% year over year to $232.1 million. The figure was higher than our estimate of $231.1 million.
Net investment income increased 6.1% year over year to $61.3 million. Our estimate was $66.9 million. The Zacks Consensus Estimate was pegged at $65 million.
Persistency — the percentage of insurance remaining in force from one year prior — was 84.8% as of Dec. 30, 2024, down from 86.1% in the year-ago quarter.
New insurance written was $15.9 billion, up 45.9% year over year. Total losses and expenses increased 23.3% year over year to $66.7 million.
For the quarter under review, the loss ratio was 3.6% compared with negative 4.2% for the fourth quarter of 2023. Underwriting expense ratio was 20.8, marking an improvement of 380 basis points (bps) year over year.
Financial Update
Book value per share, a measure of net worth, increased 11.9% year over year to $20.82 as of Dec. 31, 2024.
Shareholder equity was $5.3 billion as of Dec. 31, 2024, up 4.3% from 2023-end.
MGIC Investment's PMIERs Available Assets totaled $6 billion, or $2.5 billion above its Minimum Required Assets as of Sept. 30, 2024.
Assets were $6.7 billion as of Dec. 31, 2024, up 2.1% from 2023-end. Debt was $644 million as of Dec. 31, 2024, up 0.1% from the 2023-end level.
Capital Deployment
The company bought back 7.8 million shares in the fourth quarter for $193.3 million.
MGIC Investment paid $200 million in dividends to the holding company and 13 cents per share to shareholders.
In January, MTG repurchased an additional 3.5 million shares for $85.5 million.
The board also declared a dividend of 13 cents per share to shareholders to be paid out on March 5, 2025, to shareholders of record as of Feb. 18, 2025.
The Travelers Companies (TRV - Free Report) reported fourth-quarter 2024 core income of $9.15 per share, which beat the Zacks Consensus Estimate by 39.3% and improved 30.5% year over year. Travelers’ total revenues increased 10.4% from the year-ago quarter to $11.9 billion. The top-line figure beat the Zacks Consensus Estimate by 1%.
Net written premiums increased 7% year over year to a record $10.7 billion, driven by strong growth across all three segments. Our estimate was $10.8 billion. The Zacks Consensus Estimate was pegged at $926 million. TRV witnessed an underwriting gain of $1.4 billion, up 30.5% year over year. The consolidated underlying combined ratio of 84% improved 190 bps year over year.
RLI Corp. (RLI - Free Report) reported fourth-quarter 2024 operating earnings of 41 cents per share, which missed the Zacks Consensus Estimate by 14.5%. The bottom line decreased 46.8% from the prior-year quarter. Operating revenues for the reported quarter were $436 million, up 15.3% year over year, driven by higher net premiums earned and net investment income. The top line matched the Zacks Consensus Estimate.
Gross premiums written increased 9% year over year to $473.2 million. This uptick can be attributed to the solid performance of the Casualty segment (up 18.3%). Our estimate was $550 million. Underwriting income of $22.2 million decreased 62.8% year over year. The combined ratio deteriorated 1,170 bps year over year to 94.4%. The Zacks Consensus Estimate for the metric was pegged at 96%, while our estimate was 102%.
W.R. Berkley Corporation’s (WRB - Free Report) fourth-quarter 2024 operating income of $1.13 per share beat the Zacks Consensus Estimate by 20.2%. The bottom line improved 17.7% year over year. Operating revenues were $3.5 billion, up 9.2% year over year. The top line beat the consensus estimate by 4.2%.
W.R. Berkley’s net premiums written were $2.9 billion, up 8% year over year. The figure was lower than our estimate of $3 billion. The consolidated combined ratio (a measure of underwriting profitability) deteriorated 180 bps year over year to 90.2%. The Zacks Consensus Estimate was 91%.
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MGIC Investment Q4 Earnings Beat, Revenues Miss Estimates
MGIC Investment Corporation (MTG - Free Report) reported fourth-quarter 2024 operating net income per share of 72 cents, which beat the Zacks Consensus Estimate by 10.8%. Moreover, the bottom line increased 10.2% year over year.
See the Zacks Earnings Calendar to stay ahead of market-making news.
The quarterly results reflected higher new insurance written, improved net investment income, and higher insurance in force.
MGIC Investment recorded total operating revenues of $303.1 million, which increased 6.4% year over year on higher net investment income, net premiums earned and other revenues. The top line however missed the consensus mark by 1.1%.
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 increased 0.6% from the prior-year quarter to $295.4 billion. The Zacks Consensus Estimate was $294 billion. Our estimate was $293.6 billion.
The insurer witnessed a 4.4% increase in primary delinquency to 26,791 loans.
Net premiums written increased 5.9% year over year to $232.1 million. The figure was higher than our estimate of $231.1 million.
Net investment income increased 6.1% year over year to $61.3 million. Our estimate was $66.9 million. The Zacks Consensus Estimate was pegged at $65 million.
Persistency — the percentage of insurance remaining in force from one year prior — was 84.8% as of Dec. 30, 2024, down from 86.1% in the year-ago quarter.
New insurance written was $15.9 billion, up 45.9% year over year.
Total losses and expenses increased 23.3% year over year to $66.7 million.
For the quarter under review, the loss ratio was 3.6% compared with negative 4.2% for the fourth quarter of 2023. Underwriting expense ratio was 20.8, marking an improvement of 380 basis points (bps) year over year.
Financial Update
Book value per share, a measure of net worth, increased 11.9% year over year to $20.82 as of Dec. 31, 2024.
Shareholder equity was $5.3 billion as of Dec. 31, 2024, up 4.3% from 2023-end.
MGIC Investment's PMIERs Available Assets totaled $6 billion, or $2.5 billion above its Minimum Required Assets as of Sept. 30, 2024.
Assets were $6.7 billion as of Dec. 31, 2024, up 2.1% from 2023-end. Debt was $644 million as of Dec. 31, 2024, up 0.1% from the 2023-end level.
Capital Deployment
The company bought back 7.8 million shares in the fourth quarter for $193.3 million.
MGIC Investment paid $200 million in dividends to the holding company and 13 cents per share to shareholders.
In January, MTG repurchased an additional 3.5 million shares for $85.5 million.
The board also declared a dividend of 13 cents per share to shareholders to be paid out on March 5, 2025, to shareholders of record as of Feb. 18, 2025.
Zacks Rank
MTG currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Insurers
The Travelers Companies (TRV - Free Report) reported fourth-quarter 2024 core income of $9.15 per share, which beat the Zacks Consensus Estimate by 39.3% and improved 30.5% year over year. Travelers’ total revenues increased 10.4% from the year-ago quarter to $11.9 billion. The top-line figure beat the Zacks Consensus Estimate by 1%.
Net written premiums increased 7% year over year to a record $10.7 billion, driven by strong growth across all three segments. Our estimate was $10.8 billion. The Zacks Consensus Estimate was pegged at $926 million. TRV witnessed an underwriting gain of $1.4 billion, up 30.5% year over year. The consolidated underlying combined ratio of 84% improved 190 bps year over year.
RLI Corp. (RLI - Free Report) reported fourth-quarter 2024 operating earnings of 41 cents per share, which missed the Zacks Consensus Estimate by 14.5%. The bottom line decreased 46.8% from the prior-year quarter. Operating revenues for the reported quarter were $436 million, up 15.3% year over year, driven by higher net premiums earned and net investment income. The top line matched the Zacks Consensus Estimate.
Gross premiums written increased 9% year over year to $473.2 million. This uptick can be attributed to the solid performance of the Casualty segment (up 18.3%). Our estimate was $550 million. Underwriting income of $22.2 million decreased 62.8% year over year. The combined ratio deteriorated 1,170 bps year over year to 94.4%. The Zacks Consensus Estimate for the metric was pegged at 96%, while our estimate was 102%.
W.R. Berkley Corporation’s (WRB - Free Report) fourth-quarter 2024 operating income of $1.13 per share beat the Zacks Consensus Estimate by 20.2%. The bottom line improved 17.7% year over year. Operating revenues were $3.5 billion, up 9.2% year over year. The top line beat the consensus estimate by 4.2%.
W.R. Berkley’s net premiums written were $2.9 billion, up 8% year over year. The figure was lower than our estimate of $3 billion. The consolidated combined ratio (a measure of underwriting profitability) deteriorated 180 bps year over year to 90.2%. The Zacks Consensus Estimate was 91%.