Mgic Investment Corporation · NYSE:MTG
Mgic Investment — Q1 2024 Earnings Presentation
14 slides from Mgic Investment's earnings presentation, May 2, 2024
Slide 1: Quarterly Supplement Q1 2024
Quarterly Supplement Q1 2024 NYSE: MTG MGIC Investment Corporation
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
Primary Risk in Force March 31, 2024 Origination year: 2024 2023 2022 2021 2020 2019 2018 2017 2016 2009 - 2015 2005 - 2008 2004 & Prior Total Original risk written (billions) $2.1 $11.9 $19.6 $29.9 $27.3 $16.2 $12.5 $12.3 $11.9 $43.7 $63.6 $181.5 N.M. % of original risk remaining 99.4 94.2 88.1 73.
Slide 4: Additional Book Year Statistics
Additional Book Year Statistics March 31, 2024 NM Origination year: 2024 2023 2022 2021 2020 2019 2018 2017 2016 2009-2015 2005 - 2008 2004 & Prior Delinquency statistics: (1) Risk in force delinquent (%) - 0.4 1.3 1.3 1.1 2.2 4.6 3.7 3.5 6.9 12.2 15.7 # of loans delinquent - 503 2,729 4,042 2,242 1
Slide 5: PMIERs Primary Minimum Required Assets
PMIERs Primary Minimum Required Assets March 31, 2024 PMIERs Primary Minimum Required Assets Book Year Vintage $1.6 $1.2 Excess-of-Loss Insurance-linked notes $0.8 Quota-Share Retained $0.4 ($ in millions) $0.0 <2009 2009-2015 2016-2019 2020 2021 2022 2023 2024 Total Total Minimum Required Assets $5
Slide 6: Losses Incurred
Losses Incurred March 31, 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 # of New notices 12,177 12,708 12,240 10,580 11,297 New notice claim rate 7.5% 7.5% 7.5% 7.5% 7.5% New notice severity 60,200 59,200 57,900 57,300 57,100 Current period losses incurred, net ($m) 54 51 48 42 47 Prior period develo
Slide 7: Loss Reserves
Loss Reserves March 31, 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Delinquency Inventory* 24,142 25,650 24,720 23,823 24,757 Average claim rate 30.8% 29.5% 32.3% 34.5% 35.5% Average severity 60,230 59,230 58,530 57,430 56,730 Direct primary loss reserves ($m) 448 448 467 472 498 Total Direct loss
Slide 8: Primary Risk in Force: Year of Origination and Top Jurisdictions
Primary Risk in Force Year of Origination Top 10 Jurisdictions 30% 28.6% 10% 8.7% 25% 7.9% 22.5% 8% 6.6% 20% 16.4% 6% 5.1% 14.6% 15% 4.1% 4.0% 10.4% 4% 3.6% 3.5% 3.5% 3.5% 10% 2% 5% 3.3% 2.8% 1.1% 0.4% 0% 0% 2024 2023 2022 2021 2020 CA TX FL PA IL VA NC OH NY GA 2004 & Prior 2016-2019 2009-2015 2005
Slide 9: Primary Risk in Force: Original LTV and FICO
Primary Risk in Force Original LTV Original FICO 100% 100% 16.0% 15.7% 15.1% 14.7% 14.6% 43.3% 43.0% 42.2% 42.1% 40.3% 75% 75% 52.0% 50.4% 50.2% 52.5% 52.4% 50% 17.0% 50% 17.9% 17.9% 17.7% 17.2% 13.8% 14.1% 13.7% 14.1% 14.1% 25% 25% 11.2% 28.3% 11.1% 11.1% 27.3% 28.1% 10.8% 10.8% 27.1% 27.2% 7.9% 8.
Slide 10: Primary Risk in Force: Property Type and Occupancy
Primary Risk in Force Property Type Occupancy 100% 100% 1.9% 1.9% 2.2% 2.6% 2.4% 14.0% 13.9% 13.7% 13.6% 12.6% 75% 75% 50% 50% 98.1% 98.1% 97.8% 97.4% 97.6% 86.0% 86.1% 86.3% 86.4% 87.4% 25% 25% 0% 0% 3/31/2024 12/31/2023 12/31/2022 12/31/2021 12/31/2020 3/31/2024 12/31/2023 12/31/2022 12/31/2021 12
Slide 11: Primary Risk in Force: Loan Amount and Loan Purpose
Primary Risk in Force Loan Amount (1) Loan Purpose 100% 2.7% 2.7% 2.7% 2.5% 2.6% 100% 0.9% 1.0% 1.1% 1.4% 1.9% 10.1% 10.9% 12.0% 16.4% 18.2% 75% 40.4% 46.4% 55.0% 54.4% 51.4% 75% 50% 50% 29.8% 89.0% 88.1% 86.9% 27.8% 82.2% 79.9% 25.7% 24.3% 24.5% 25% 25% 20.3% 23.6% 15.9% 16.2% 17.7% 0% 2.1% 2.2% 2.
Slide 12: Flow Delinquency Rate
Flow Delinquency Rate March 31, 2024 Static Pool Delinquency Rates Based on Loan Count 18% 3.5% 17% 16% 3.0% 15% 14% 13% 2.5% 12% 11% 2.0% 10% 9% 1.5% 8% 7% 6% 1.0% 5% 4% 0.5% 3% 2% 0.0% 1% Q1 Q4 Q8 Q12 Q16 Q20 Q24 0% Q1 Q4 Q8 Q12 Q16 Q20 Q24 Q28 Q32 Q36 Q40 Q44 Q48 Q52 Q56 Q60 Q64 Q68 2009 2019 202
Slide 13: Capital Requirements on New Risk Written
Capital Requirements on New Risk Written Minimum Required Assets as a % of New Risk Written 9,000 7.1 7.1 7.2 7.0 8,000 7.0 6.9 6.9 7,000 6.8 6.8 Quarterly Risk Written ($ millions) 6.7 6.7 6,000 6.6 6.5 5,000 6.4 6.4 6.3 6.4 6.3 6.3 4,000 6.2 6.2 6.2 6.2 3,000 6.0 2,000 1,000 5.8 - 5.6 Mar-20 Jun-2
Slide 14: Statutory Capital
Statutory Capital MGIC Statutory Capital ($ in millions) Surplus Contingency Reserves (1) RTC $5,974 $5,767 $5,518 $5,273 $4,857 $4,582 $3,820 $3,275 $2,963 $4,056 $4,597 $2,686 $2,138 $3,521 $5,266 9.5:1 10.2:1 $5,131 $1,654 9.7:1 9.8:1 9.0:1 9.2:1 $1,181 10.2:1 9.5:1 10.7:1 $1,505 $1,620 $1,682 $1