Mgic Investment Corporation · NYSE:MTG
Mgic Investment — Q4 2020 Earnings Presentation
32 slides from Mgic Investment's earnings presentation, Feb 24, 2021
Slide 1: MGIC Investment Corporation Quarterly Supplement Q4 2020
MGIC Investment Corporation Quarterly Supplement Q4 2020 NYSE: MTG
Slide 2: Forward Looking Statements
Forward Looking Statements As used below, “we,” “our” and “us” refer to MGIC Investment Corporation’s consolidated operations or to MGIC Investment Corporation, as the context requires, and “MGIC” refers to Mortgage Guaranty Insurance Corporation. This presentation may contain forward looking statem
Slide 3: Primary Risk in Force: Year of Origination and Top 10 Jurisdictions
Primary Risk in Force December 31, Year of Origination Top 10 Jurisdictions 45% 10% 40.1% 40% 8.5% 35% 8% 7.1% 30% 6.8% 25% 6% 5.1% 20% 17.3% 4.1% 4.1% 15% 3.7% 4% 3.5% 3.5% 3.3% 10% 8.6% 8.4% 7.3% 4.6% 3.8% 5% 2.5% 1.9% 1.0% 1.0% 1.3% 0.5% 1.5% 2% 0.1% 0.0% 0.1% 0% 2020 2019 2018 2017 2016 2015 201
Slide 4: Primary Risk in Force December 31, 2020
Primary Risk in Force December 31, 2020 Origination year: 2020 2019 2018 2017 2016 2009 - 2015 2005 - 2008 2004 & Prior Total $26.0 $16.2 $12.6 $12.3 $11.9 $43.7 $63.6 $181.5 N.M Original risk written (billions) % of original risk remaining 95.4 66.1 42.2 42.1 38.2 13.1 7.9 0.4 N.M. Weighted average
Slide 5: Additional Book Year Statistics December 31, 2020
Additional Book Year Statistics December 31, 2020 NM Origination year: 2020 2019 2018 2017 2016 2009-2015 2005 - 2008 2004 & Prior Total Delinquency statistics: (1) Risk in force delinquent (%) 0.9 5.1 8.3 7.4 5.8 6.1 15.5 18.9 5.0 # of loans delinquent 3,082 7,929 7,468 6,746 4,599 6,917 17,084 3,8
Slide 6: Home Re 2021-1 Ltd. Transaction Overview
Home Re 2021-1 Ltd. Transaction Overview Transaction On February 2, 2021, MGIC obtained fully collateralized excess of loss reinsurance coverage on mortgage insurance policies written in August 2020 through December 2020. The total amount of reinsurance was $398.8 million as of the closing date.
Slide 7: Home Re 2021-1 Ltd. Structure
Home Re 2021-1 Ltd. Structure Coverage Credit Weighted Level % of Risk in Enhancement Average Life Coupon Moody’s Key Transaction and Structure Details: Coverage Levels ($ in 000’s) Force % (in years)1 (bps) Rating • Cut-off Date: December 31, 2020 • Optional Call Date: January 25, 2028 A-H 8,774,69
Slide 8: ILN Transaction Status
ILN Transaction Status (1) Through February 2, 2021, MGIC has entered four Home Re Insurance-Linked Notes Key Metrics (1) fully collateralized reinsurance arrangements with Bermuda-domiciled special purpose insurers at closing ($ in millions) HMIR 2018-1 HMIR 2019-1 HMIR 2020-1 HMIR 2021-1 (“Home Re
Slide 9: Flow Primary Risk in Force December 31, 2020
Flow Primary Risk in Force December 31, 2020 Static Pool Delinquency Rates Based on Loan Count 18% 5.0% 17% 4.5% 16% 15% 4.0% 14% 13% 3.5% 12% 3.0% 11% 10% 2.5% 9% 8% 2.0% 7% 1.5% 6% 5% 1.0% 4% 3% 0.5% 2% 0.0% 1% Q1 Q3 Q5 Q7 Q9 Q11 Q13 Q15 Q17 Q19 Q21 Q23 Q25 Q27 Q29 Q31 Q33 Q35 Q37 Q39 Q41 Q43 Q45
Slide 10: PMIERs Asset Trends
PMIERs Asset Trends PMIERs 2.0 ($ in millions) Pool/Other $5,250 Non performing reinsured $4,500 $4,055M 1,462 1,131 Non performing Minimum Required Assets 1,029 937 772 1,181 Components of PMIERs 1,076 $3,750 1,638 $3,977M Performing reinsured $3,000 $3,413M $3,344M $3,502M $3,449M $3,450M $3,663M
Slide 11: Summary of Loan Modification and HARP Activity
Summary of Loan Modification and HARP Activity Risk in Force Risk in Force Risk in Force Total Primary Book Flow Primary Book 2007 Flow Primary Book HARP/RTM HAMP & HARP/RTM HAMP & 3% Other Mods 3% Other Mods 5% 3% HARP/RTM 43% HAMP & Other Mods 40% % Current at 12/31/2020 % Current at 12/31/2020 %
Slide 12: Primary Risk in Force: Original LTV and Original FICO
Primary Risk in Force December 31, Original LTV Original FICO 100% 100% 14.6% 14.8% 14.5% 18.7% 29.9% 35.0% 40.3% 37.7% 75% 75% 10.7% 11.1% 50.2% 52.2% 50.4% 14.3% 29.8% 15.6% 11.7% 50% 50% 17.0% 13.4% 11.6% 13.9% 13.8% 11.0% 10.1% 25% 29.8% 25% 11.3% 11.2% 9.4% 8.5% 28.3% 27.5% 29.1% 8.6% 8.3% 5.7%
Slide 13: Primary Risk in Force: Loan Amount and Loan Purpose
Primary Risk in Force December 31, Loan Amount (1) Loan Purpose 100% 2.6% 2.5% 2.4% 4.7% 100% 1.9% 3.1% 5.1% 10.0% 14.8% 16.1% 18.2% 13.9% 28.5% 34.4% 13.3% 75% 40.4% 75% 25.8% 30.9% 50% 30.7% 50% 29.8% 86.9% 79.9% 81.0% 71.9% 40.8% 25% 25% 32.1% 27.8% 23.6% 12.6% 3.6% 4.7% 6.2% 0% 0% 2020 2018 2016
Slide 14: Primary Risk in Force: Loan Type and Documentation
Primary Risk in Force December 31, Loan Type (1) Documentation (2) 100% 0.8% 1.3% 2.3% 100% 1.1% 1.8% 3.1% 0.8% 13.6% 1.1% 1.7% 14.0% 3.0% 75% 75% 50% 98.6% 97.7% 96.0% 50% 98.9% 98.2% 96.9% 83.0% 86.4% 25% 25% 0% 0% 2020 2018 2016 2008 2020 2018 2016 2008 Full Stated/No Doc FRM FRM I/O ARM (1) FRM
Slide 15: Primary Risk in Force: Property Type and Occupancy
Primary Risk in Force December 31, Property Type Occupancy 100% 100% 2.4% 2.5% 2.9% 6.9% 12.6% 12.5% 12.4% 15.6% 75% 75% 50% 50% 97.6% 97.5% 97.1% 93.1% 87.4% 87.5% 87.6% 84.4% 25% 25% 0% 0% 2020 2018 2016 2008 2020 2018 2016 2008 Owner 2nd Home/Investor Single Family Attached Condo/Townhouse/Other
Slide 16: Most Recent 24 Month History by Book Year
Most Recent 24 Month History by Book Year 16
Slide 17: Origination Year: 2005
Origination Year: 2005 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Original risk written $16.8 $16.8 $16.8 $16.8 $16.8 $16.8 $16.8 $16.8 (billions) % of original risk 5.6 5.3 5 4.7 4.4 4.2 4 3.73 remaining 670 670 670 668 667 666 665 664 Weighted average FICO(1) 760 and > (%) 10.
Slide 18: Origination Year: 2006
Origination Year: 2006 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Original risk written $16.1 $16.1 $16.1 $16.1 $16.1 $16.1 $16.1 $16.1 (billions) % of original risk 10.5 10 9.5 9 8.6 8.2 7.7 7.3 remaining 673 672 672 671 671 670 669 668 Weighted average FICO(1) 760 and > (%) 11
Slide 19: Origination Year: 2007
Origination Year: 2007 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Original risk written $20.1 $20.1 $20.1 $20.1 $20.1 $20.1 $20.1 $20.1 (billions) % of original risk 17.3 16.1 15.3 14.6 13.9 13.2 12.4 11.56 remaining 695 694 694 694 694 693 693 692 Weighted average FICO(1) 760 a
Slide 20: Origination Year: 2008
Origination Year: 2008 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Original risk written $10.7 $10.7 $10.7 $10.7 $10.7 $10.7 $10.7 $10.7 (billions) % of original risk 13.9 12.7 12 11.3 10.8 10.1 9.4 8.62 remaining 722 722 721 722 722 722 722 721 Weighted average FICO(1) 760 and >
Slide 21: Origination Year: 2009
Origination Year: 2009 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Original risk written $4.0 $4.0 $4.0 $4.0 $4.0 $4.0 $4.0 $4.0 (billions) % of original risk 4.1 3.5 3.1 2.7 2.4 2.2 2 1.7 remaining 746 746 746 746 747 747 746 746 Weighted average FICO(1) 760 and > (%) 40.9 40.3
Slide 22: Origination Year: 2010
Origination Year: 2010 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Original risk written $3.1 $3.1 $3.1 $3.1 $3.1 $3.1 $3.1 $3.1 (billions) % of original risk 4.2 3.6 3 2.1 1.3 0.9 0.7 0.62 remaining 747 747 746 744 742 743 742 741 Weighted average FICO(1) 760 and > (%) 41.6 41.5
Slide 23: Origination Year: 2011
Origination Year: 2011 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Original risk written $3.5 $3.5 $3.5 $3.5 $3.5 $3.5 $3.6 $3.5 (billions) % of original risk 7.7 6.9 6.1 5.3 4.4 3.7 2.9 2.0 remaining 752 752 752 752 752 752 751 748 Weighted average FICO(1) 760 and > (%) 45.3 45.
Slide 24: Origination Year: 2012
Origination Year: 2012 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Original risk written $6.1 $6.1 $6.1 $6.1 $6.1 $6.1 $6.1 $6.1 (billions) % of original risk 17.1 14.9 13.2 11.6 10.1 8.6 7.3 5.44 remaining 756 756 756 756 755 755 755 754 Weighted average FICO(1) 760 and > (%) 50
Slide 25: Origination Year: 2013
Origination Year: 2013 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Original risk written $7 $7.4 $7.4 $7.4 $7.4 $7.4 $7.4 $7.4 (billions) % of original risk 26.2 23.9 21.4 19 17.2 15.2 12.9 10.8 remaining 750 749 749 749 749 748 747 746 Weighted average FICO(1) 760 and > (%) 45.8
Slide 26: Origination Year: 2014
Origination Year: 2014 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Original risk written $8.7 $8.7 $8.7 $8.7 $8.7 $8.7 $8.7 $8.7 (billions) % of original risk 37.8 35.1 32.3 29.6 27.4 24.0 20.8 17.7 remaining 742 742 742 741 741 741 740 739 Weighted average FICO(1) 760 and > (%)
Slide 27: Origination Year: 2015
Origination year: 2015 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Original risk written $10.8 $10.8 $10.8 $10.8 $10.8 $10.8 $10.8 $10.8 (billions) % of original risk 54.4 50.8 47.0 43.7 40.6 36.0 30.9 26.4 remaining (1) 744 744 744 744 744 743 743 742 Weighted average FICO 760 a
Slide 28: Origination Year: 2016
Origination year: 2016 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Original risk written $11.9 $11.9 $11.9 $11.9 $11.9 $11.9 $11.9 $11.9 (billions) % of original risk 73.3 68.8 64.2 61.0 57.1 51.3 44.4 38.2 remaining (1) 746 746 746 747 747 746 746 745 Weighted average FICO 760 a
Slide 29: Origination Year: 2017
Origination year: 2017 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Original risk written $12.3 $12.3 $12.3 $12.3 $12.3 $12.3 $12.3 $12.3 (billions) % of original risk 86.3 82.6 77.7 72.3 67.2 58.1 49.9 42.1 remaining 745 745 745 745 745 744 743 742 Weighted average FICO(1) 760 an
Slide 30: Origination Year: 2018
Origination year: 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Original risk written $12.5 $12.5 $12.5 $12.5 $12.5 $12.5 $12.6 $12.6 (billions) % of original risk 94.8 90.9 83.7 76.3 69.7 59.0 50.2 42.2 remaining 745 745 744 744 743 742 741 740 Weighted average FICO(1) 760 an
Slide 31: Origination Year: 2019
Origination year: 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Original risk written $15.4 $16.2 $16.2 $16.2 $16.2 (billions) % of original risk 95.1 91.7 84.1 75.6 66.1 remaining 749 749 748 747 747 Weighted average FICO(1) 760 and > (%) 44.2 44.0 43.5 42.8 42.1 740 – 759 18.9 19.0 19.1 19.0 18.9 7
Slide 32: Origination Year: 2020
Origination year: 2020 Q4 2020 Original risk written $26.0 (billions) % of original risk 95.4 remaining 751 Weighted average FICO(1) 760 and > (%) 46.4 740 – 759 18.4 720 – 739 13.5 700 – 719 10.4 680 – 699 7.5 660 – 679 2.1 640 – 659 1.1 639 and < 0.6 (1) Weighted average LTV 91.9 85 and < (%) 9.5