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 premiums earned to $305.8 million. Net premiums written for the quarter were $314.2 million, compared with $320.8 million in the third quarter last year, a decrease of 2.1 percent.
New insurance written in the third quarter was $18.1 billion, compared with $18 billion in the third quarter of 2004. New insurance written for the quarter included $6.8 billion of bulk business compared with $6 billion in the same period last year.
The percentage of third-quarter loans that were delinquent, excluding bulk loans, was 3.95 percent, compared with 3.99 percent at Dec. 31, 2004, and 3.8 percent at Sept. 30, 2004.
Losses incurred in the third quarter were $146.2 million, down from $169.8 million reported for the same period last year due primarily to a decrease in the delinquency inventory.
Underwriting expenses were $70.6 million in the third quarter, up from $69.7 million reported for the same period last year.
Income from joint ventures, net of tax, totaled $31.7 million in the third quarter, up from $29.6 million for the same period last year.
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