MGIC, Radian and Arch report second quarter results

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MGIC Investment was the only mortgage insurer to make more than $ 30 billion from NIW in the most recent period, with $ 33.6 billion, up from $ 30.8 billion in the first quarter and $ 28.2 billion. billions of dollars. one year before.

This led to an increase in the IIR to $ 262 billion on June 30, from $ 251.7 billion three months earlier and $ 230.5 billion in the second quarter of 2020.

MGIC’s NIW was 24% ahead of BTIG’s estimate because the company enjoys a strong buying market, analyst Ryan Gilbert said. It was he who also beat his prospects for his IIF.

“Our quarterly financial results benefited from the credit quality of our in-force insurance, a strong housing market, a declining number of new defaults and improved economic conditions as many local economies are returning to pre-pandemic activity levels, ”said CEO Tim Mattke. in a press release.

Persistence, which measures the percentage of insurance remaining in force a year ago, was 57.1% as of June 30, compared to 56.2% and 68.2% as of June 30, 2020.

“We expect healthy growth for IIR and NIW in 2021, although we do expect some share loss from gains in 2020,” said Gilbert of BTIG. “Default stats improved in the second quarter and into July, and we expect the trend to continue into 2021.”

MGIC’s main delinquency inventory consisted of 42,999 loans at the end of the quarter, compared to 52,775 loans as of March 31 and 69,326 loans as of June 30, 2020.

The company provided an update in July, with an increase of nearly $ 4 billion in IIR to $ 265.8 billion and a decrease of 1,588 in overdue inventory to 41,411.


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