Mgic Investment Corporation · NYSE:MTG
Mgic Investment — Q3 2021 Earnings Presentation
29 slides from Mgic Investment's earnings presentation, Nov 4, 2021
Slide 1: MGIC Investment Corporation Quarterly Supplement Q3 2021
MGIC Investment Corporation Quarterly Supplement Q3 2021 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 September 30, Year of Origination Top 10 Jurisdictions 35% 10% 31.7% 32.3% 30% 8.3% 8% 25% 7.1% 7.0% 20% 6% 5.0% 15% 4.2% 10.1% 3.9% 3.9% 3.8% 10% 4% 3.6% 3.5% 6.0% 4.8% 4.8% 4.4% 5.0% 5% 0.8% 2% 0% 2021 2020 2019 2018 2017 2016 2009-2015 2005-2008 2004 & Prior 0% CA TX FL PA I
Slide 4: Primary Risk in Force September 30, 2021
Primary Risk in Force September 30, 2021 Origination year: 2021 2020 2019 2018 2017 2016 2009 - 2015 2005 - 2008 2004 & Prior Total $21.9 $27.3 $16.2 $12.5 $12.3 $11.9 $43.7 $63.6 $181.5 N.M Original risk written (billions) % of original risk remaining 97.8 79.8 42.0 25.9 26.1 25.0 7.8 6.4 0.3 N.M.
Slide 5: Additional Book Year Statistics September 30, 2021
Additional Book Year Statistics September 30, 2021 NM Origination year: 2021 2020 2019 2018 2017 2016 2009-2015 2005 - 2008 2004 & Prior Total Delinquency statistics: (1) Risk in force delinquent (%) 0.2 1.2 4.0 7.1 6.2 4.5 5.9 13.6 16.8 2.9 # of loans delinquent 612 3,465 4,165 4,197 3,656 2,468 4,
Slide 6: ILN Transaction Status
ILN Transaction Status Home Re Insurance-Linked Notes Key Metrics (1) (1) Through September 30, 2021, MGIC has entered five fully collateralized reinsurance arrangements with Bermuda-domiciled special purpose insurers HMIR 2018-1 HMIR 2019-1 HMIR 2020-1 HMIR 2021-1 HMIR 2021-2 (“Home Re”). The Home
Slide 7: Flow Primary Risk in Force: Static Pool Delinquency Rates
Flow Primary Risk in Force September 30, 2021 Static Pool Delinquency Rates Based on Loan Count 18% 5.0% 17% 4.5% 16% 15% 4.0% 14% 13% 3.5% 12% 3.0% 11% 10% 2.5% 9% 8% 2.0% 7% 1.5% 6% 5% 1.0% 4% 3% 0.5% 2% 0.0% 1% Q1 Q3 Q5 Q7 Q9 Q11 Q13 Q15 Q17 Q19 Q21 Q23 Q25 Q27 Q29 Q31 Q33 Q35 Q37 Q39 Q41 Q43 Q45
Slide 8: PMIERs Asset Trends
PMIERs Asset Trends ($ in millions) PMIERs 2.0 Pool/Other $5,500 Non performing $4,750 949 reinsured 1,084 1,021 $3,977M 1,131 Non performing Minimum Required Assets $4,000 1,029 937 Components of PMIERs 1,462 Performing reinsured $3,250 $3,246M $3,220M $3,449M $3,413M $3,502M $2,500 3,454 $3,446M 3
Slide 9: 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 & 2% Other Mods 2% Other Mods 4% 3% HARP/RTM 39% HAMP & Other Mods 45% % Current at 09/30/2021 % Current at 09/30/2021 %
Slide 10: Primary Risk in Force: Original LTV and Original FICO
Primary Risk in Force September 30, Original LTV Original FICO 100% 100% 14.8% 15.5% 13.8% 18.7% 29.9% 38.6% 36.3% 41.6% 75% 75% 10.7% 11.1% 49.3% 52.1% 51.9% 29.8% 14.8% 16.1% 11.7% 50% 50% 17.1% 13.5% 11.6% 14.0% 13.7% 11.1% 10.1% 25% 29.8% 25% 11.3% 28.7% 28.5% 11.1% 9.1% 8.5% 27.0% 8.4% 8.0% 5.3
Slide 11: Primary Risk in Force: Loan Amount and Loan Purpose
Primary Risk in Force September 30, Loan Amount (1) Loan Purpose 100% 2.3% 2.5% 2.4% 4.7% 100% 1.5% 2.7% 4.2% 10.0% 14.8% 16.1% 18.0% 12.5% 30.8% 36.1% 13.3% 75% 44.9% 75% 25.8% 50% 30.8% 50% 30.7% 87.3% 80.5% 83.3% 28.5% 71.9% 40.8% 25% 25% 30.4% 26.4% 21.2% 12.6% 3.1% 4.3% 5.6% 0% 0% 2021 2019 201
Slide 12: Primary Risk in Force: Property Type and Occupancy
Primary Risk in Force September 30, Property Type Occupancy 100% 100% 2.5% 2.4% 2.7% 6.9% 13.4% 12.4% 12.4% 15.6% 75% 75% 50% 50% 97.5% 97.6% 97.3% 93.1% 86.6% 87.6% 87.6% 84.4% 25% 25% 0% 0% 2021 2019 2017 YE 2008 * 2021 2019 2017 YE 2008 * Owner 2nd Home/Investor Single Family Attached Condo/Townh
Slide 13: Most Recent 24 Month History by Book Year
Most Recent 24 Month History by Book Year 13
Slide 14: Origination Year: 2005
Origination Year: 2005 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Original risk written $16.8 $16.8 $16.8 $16.8 $16.8 $16.8 $16.8 $16.8 (billions) % of original risk 4.7 4.4 4.2 4.0 3.7 3.6 3.3 3.2 remaining Weighted average FICO(1) 668 667 666 665 664 663 661 661 760 and > (%)
Slide 15: Origination Year: 2006
Origination Year: 2006 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Original risk written $16.1 $16.1 $16.1 $16.1 $16.1 $16.1 $16.1 $16.1 (billions) % of original risk 9.0 8.6 8.2 7.7 7.3 7.0 6.5 6.1 remaining (1) 671 671 670 669 668 667 665 664 Weighted average FICO 760 and > (%)
Slide 16: Origination Year: 2007
Origination Year: 2007 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Original risk written $20.1 $20.1 $20.1 $20.1 $20.1 $20.1 $20.1 $20.1 (billions) % of original risk 14.6 13.9 13.2 12.4 11.6 10.8 9.8 9.1 remaining (1) 694 694 693 693 692 692 690 690 Weighted average FICO 760 and
Slide 17: Origination Year: 2008
Origination Year: 2008 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Original risk written $10.7 $10.7 $10.7 $10.7 $10.7 $10.7 $10.7 $10.7 (billions) % of original risk 11.3 10.8 10.1 9.4 8.6 7.8 6.8 6.5 remaining (1) 722 722 722 722 721 721 720 720 Weighted average FICO 760 and >
Slide 18: Origination Year: 2009
Origination Year: 2009 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Original risk written $4.0 $4.0 $4.0 $4.0 $4.0 $4.0 $4.0 $4.0 (billions) % of original risk 2.7 2.4 2.2 2 1.7 1.5 1.3 1.2 remaining 746 747 747 746 746 746 745 745 Weighted average FICO(1) 760 and > (%) 41.2 41.6
Slide 19: Origination Year: 2010
Origination Year: 2010 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Original risk written $3.1 $3.1 $3.1 $3.1 $3.1 $3.1 $3.1 $3.1 (billions) % of original risk 2.1 1.3 0.9 0.7 0.6 0.5 0.5 0.5 remaining 744 742 743 742 741 742 742 743 Weighted average FICO(1) 760 and > (%) 39.1 37.
Slide 20: Origination Year: 2011
Origination Year: 2011 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Original risk written $3.5 $3.5 $3.5 $3.5 $3.5 $3.5 $3.5 $3.5 (billions) % of original risk 5.3 4.4 3.7 2.9 2.0 1.2 0.9 0.7 remaining 752 752 752 751 748 748 749 748 Weighted average FICO(1) 760 and > (%) 45.3 44.
Slide 21: Origination Year: 2012
Origination Year: 2012 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Original risk written $6.1 $6.1 $6.1 $6.1 $6.1 $6.1 $6.1 $6.1 (billions) % of original risk 11.6 10.1 8.6 7.3 5.4 3.4 2.3 1.8 remaining 756 755 755 755 754 752 753 754 Weighted average FICO(1) 760 and > (%) 51 50.
Slide 22: Origination Year: 2013
Origination Year: 2013 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Original risk written $7.4 $7.4 $7.4 $7.4 $7.4 $7.4 $7.4 $7.4 (billions) % of original risk 7.4 5.9 19.0 17.2 15.2 12.9 10.8 8.9 remaining 745 744 Weighted average FICO(1) 749 749 748 747 746 746 760 and > (%) 44.
Slide 23: Origination Year: 2014
Origination Year: 2014 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Original risk written $8.7 $8.7 $8.7 $8.7 $8.7 $8.7 $8.7 $8.7 (billions) % of original risk 29.6 27.4 24.0 20.8 17.7 15.3 12.9 10.9 remaining 741 741 741 740 739 738 737 736 Weighted average FICO(1) 760 and > (%)
Slide 24: Origination Year: 2015
Origination Year: 2015 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Original risk written $10.8 $10.8 $10.8 $10.8 $10.8 $10.8 $10.8 $10.8 (billions) % of original risk 43.7 40.6 36.0 30.9 26.4 22.7 19.4 16.7 remaining 744 744 743 743 742 741 740 740 Weighted average FICO(1) 760 an
Slide 25: Origination Year: 2016
Origination Year: 2016 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Original risk written $11.9 $11.9 $11.9 $11.9 $11.9 $11.9 $11.9 $11.9 (billions) % of original risk 61.0 57.1 51.3 44.4 38.2 33.0 28.6 25.0 remaining (1) 747 747 746 746 745 745 745 745 Weighted average FICO 760 a
Slide 26: Origination Year: 2017
Origination Year: 2017 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Original risk written $12.3 $12.3 $12.3 $12.3 $12.3 12.3 $12.3 $12.3 (billions) % of original risk 72.3 67.2 58.1 49.9 42.1 35.8 30.1 26.1 remaining 745 745 744 743 742 741 740 740 Weighted average FICO(1) 760 and
Slide 27: Origination Year: 2018
Origination Year: 2018 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Original risk written $12.5 $12.5 $12.5 $12.5 $12.5 $12.5 $12.5 $12.5 (billions) % of original risk 76.3 69.7 59.0 50.2 42.2 35.8 30.1 25.9 remaining 744 743 742 741 740 738 738 737 Weighted average FICO(1) 760 an
Slide 28: Origination Year: 2019
Origination year: 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Original risk written $15.4 $16.2 $16.2 $16.2 $16.2 $16.2 $16.2 $16.2 (billions) % of original risk 95.1 91.7 84.1 75.6 66.1 56.3 48.7 42.0 remaining (1) 749 749 748 747 747 746 746 746 Weighted average FICO 760 a
Slide 29: Origination Year: 2020
Origination year: 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Original risk written $26.0 $27.3 $27.3 $27.3 (billions) % of original risk 95.4 90.6 86.0 79.8 remaining (1) 751 751 751 751 Weighted average FICO 760 and > (%) 46.4 46.3 46.4 46.6 740 – 759 18.4 18.3 18.3 18.2 720 – 739 13.5 13.5 13.5 13.5 700