Private mortgage insurance provider MGIC Investment Corp. on Tuesday reported its second-quarter net income dropped 14 percent from a year ago, falling from $174.4 million in second-quarter 2005 to $149.8 million in second-quarter 2006.
Diluted earnings per share were $1.74 for the quarter ending June 30, 2006, a 7 percent drop from $1.87 reported for the same quarter a year ago.
Net income for the first six months of 2006 was $313.3 million, down 12 percent from $356.4 million for the same period last year. For the first six months of 2006, diluted earnings per share were $3.61, compared with $3.77 for the same period last year.
Curt S. Culver, chairman and chief executive officer of MGIC Investment Corp. and Mortgage Guaranty Insurance Corp. (MGIC), said that he was pleased with the resumption of insurance in force growth during the quarter, the expected seasonal decline in the number of delinquent loans and the positive joint venture results achieved during the quarter.
Total revenues for the second quarter were $363.5 million, down 8 percent from $395 million in the second quarter of 2005, the company reported. The decline in revenues resulted primarily from a 5.5 percent decrease in net premiums earned to $294.5 million. Net premiums written for the quarter were $305.3 million, compared with $309.2 million in the second quarter last year, a decrease of 1.3 percent.
New insurance written in the second quarter was $16.1 billion, down from $16.6 billion in the second quarter of 2005. New insurance written for the quarter included $6 billion of bulk business, compared with $6.2 billion in the same period last year.
The percentage of second-quarter loans that were delinquent, excluding bulk loans, was 3.82 percent, down from 4.52 percent at Dec. 31, 2005, and 3.7 percent at June 30, 2005.
Losses incurred in the second quarter were $146.5 million, up from $136.9 million reported for the same period last year. Underwriting expenses were $72.4 million in the second quarter, up from $68.9 million reported for the same period last year.
Income from joint ventures, net of tax, for the second quarter was $47.6 million, up from $44.5 million for the same period last year.
MGIC Investment Corp. (NYSE:MTG) stock traded at $58.31 a share this morning.
