MGIC Investment Corporation (NYSE: MTG) reported operating and financial results for the third quarter of 2018. Net income for the quarter was $181.9 million, or $0.49 per diluted share, compared with net income of $120.0 million, or $0.32 per diluted share for the third quarter of 2017.
Total revenues for the third quarter of 2018 were $290.4 million, compared to $270.4 million in the third quarter last year. Net premiums written for the quarter were $251.9 million, compared to $255.9 million for the same period last year.
Patrick Sinks, CEO of MTG and Mortgage Guaranty Insurance Corporation (“MGIC”), said, “In the third quarter we again saw an increase of insurance in force, a reduction in new primary delinquent notices, and a decline of the primary delinquent inventory. The current operating environment enables us to report another quarter of strong earnings.” Sinks added that, “MGIC is, and expects to remain, in a strong capital position following the finalization of the revised PMIERs financial requirements and paid a $60 million dividend to the holding company in the third quarter.”
- Investments, cash and cash equivalents at the holding company were $261 million as of September 30, 2018, compared to $216 million as of December 31, 2017, and $182 million as of September 30, 2017. Net underwriting and other expenses were $46.8 million in the third quarter of 2018, compared to $42.9 million in the same period last year. The increase in expenses was primarily due to higher stock based compensation, which resulted from a higher stock price at the grant date, and non-executive compensation.