Mgic Investment Corporation · NYSE:MTG
Mgic Investment — Q1 2021 Earnings Presentation
30 slides from Mgic Investment's earnings presentation, May 6, 2021
Slide 1: MGIC Investment Corporation Quarterly Supplement Q1 2021
MGIC Investment Corporation Quarterly Supplement Q1 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 by Origination Year and Jurisdiction
Primary Risk in Force March 31, Year of Origination Top 10 Jurisdictions 45% 10% 39.4% 40% 8.6% 35% 8% 7.2% 30% 6.9% 25% 6% 5.0% 20% 14.5% 4.1% 15% 4.0% 4% 3.8% 3.6% 3.5% 3.4% 9.5% 10% 7.2% 7.0% 6.3% 3.9% 3.5% 5% 2.1% 1.8% 1.0% 1.0% 1.1% 0.3% 0.1% 0.0% 0.1% 1.3% 2% 0% 2021 2020 2019 2018 2017 2016 2
Slide 4: Primary Risk in Force March 31, 2021
Primary Risk in Force March 31, 2021 Origination year: 2021 2020 2019 2018 2017 2016 2009 - 2015 2005 - 2008 2004 & Prior Total $5.9 $27.3 $16.2 $12.6 $12.3 $11.9 $43.7 $63.6 $181.5 N.M Original risk written (billions) % of original risk remaining 99.7 90.6 56.3 35.8 35.8 33.0 10.9 7.4 0.3 N.M. Weig
Slide 5: Additional Book Year Statistics March 31, 2021
Additional Book Year Statistics March 31, 2021 NM Origination year: 2021 2020 2019 2018 2017 2016 2009-2015 2005 - 2008 2004 & Prior Total Delinquency statistics: (1) Risk in force delinquent (%) 0.0 1.1 5.2 8.6 7.3 5.8 6.5 15.4 18.6 4.5 # of loans delinquent 14 3,698 6,954 6,626 5,806 4,026 6,142 1
Slide 6: ILN Transaction Status
ILN Transaction Status (1) Through March 31, 2021, MGIC has entered four Home Re Insurance-Linked Notes Key Metrics (1) fully collateralized reinsurance arrangements with Bermuda-domiciled special purpose insurers at closing ($ in millions) HMIR 2018-1 HMIR 2019-1 HMIR 2020-1 HMIR 2021-1 (“Home Re”)
Slide 7: Flow Primary Risk in Force: Static Pool Delinquency Rates
Flow Primary Risk in Force March 31, 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 Q47
Slide 8: Components of PMIERs Asset Trends
PMIERs Asset Trends ($ in millions) PMIERs 2.0 Pool/Other $5,500 Non performing $4,750 reinsured $3,977M 1,131 1,084 Non performing Minimum Required Assets $4,000 1,029 937 Components of PMIERs 1,462 Performing reinsured $3,250 $3,246M $3,449M $3,413M $3,502M $2,500 HARP 2,103 2,465 2,775 3,078 3,19
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 & 3% Other Mods 3% Other Mods 4% 3% HARP/RTM 42% HAMP & Other Mods 41% % Current at 03/31/2021 % Current at 03/31/2021 %
Slide 10: Primary Risk in Force by Original LTV and FICO
Primary Risk in Force March 31, Original LTV Original FICO 100% 100% 14.5% 15.1% 14.3% 18.7% 29.9% 37.9% 35.3% 40.6% 75% 75% 10.7% 11.1% 49.3% 52.1% 50.9% 29.8% 14.4% 15.7% 11.7% 50% 50% 17.0% 13.4% 11.6% 14.0% 13.7% 11.0% 10.1% 25% 29.8% 25% 11.4% 28.7% 11.2% 9.3% 8.5% 27.3% 28.9% 8.5% 8.3% 5.6% 4.
Slide 11: Primary Risk in Force by Loan Amount and Purpose
Primary Risk in Force March 31, Loan Amount (1) Loan Purpose 100% 2.5% 2.5% 2.4% 4.7% 100% 1.8% 3.0% 4.9% 9.7% 14.8% 16.1% 19.8% 13.7% 29.0% 34.9% 13.3% 75% 41.6% 75% 25.8% 30.9% 50% 50% 30.6% 29.4% 87.3% 78.4% 81.4% 71.9% 40.8% 25% 25% 31.6% 27.4% 23.0% 12.6% 3.5% 4.6% 6.1% 0% 0% 2021 2019 2017 YE
Slide 12: Primary Risk in Force by Loan Type and Documentation
Primary Risk in Force March 31, Loan Type (1) Documentation (2) 100% 0.7% 1.2% 2.2% 100% 1.1% 1.7% 3.0% 0.6% 13.6% 1.0% 1.6% 14.0% 3.0% 75% 75% 50% 98.7% 97.8% 96.2% 50% 98.9% 98.3% 97.0% 83.0% 86.4% 25% 25% 0% 0% 2021 2019 2017 YE 2008 * 2021 2019 2017 YE 2008 * Full Stated/No Doc FRM FRM I/O ARM (
Slide 13: Primary Risk in Force by Property Type and Occupancy
Primary Risk in Force March 31, Property Type Occupancy 100% 100% 2.5% 2.5% 2.9% 6.9% 12.9% 12.5% 12.4% 15.6% 75% 75% 50% 50% 97.5% 97.5% 97.1% 93.1% 87.1% 87.5% 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/Townhouse
Slide 14: Most Recent 24 Month History by Book Year
Most Recent 24 Month History by Book Year 14
Slide 15: Origination Year: 2005
Origination Year: 2005 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Original risk written $16.8 $16.8 $16.8 $16.8 $16.8 $16.8 $16.8 $16.8 (billions) % of original risk 5.3 5.0 4.7 4.4 4.2 4.0 3.7 3.6 remaining Weighted average FICO(1) 670 670 668 667 666 665 664 663 760 and > (%)
Slide 16: Origination Year: 2006
Origination Year: 2006 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Original risk written $16.1 $16.1 $16.1 $16.1 $16.1 $16.1 $16.1 $16.1 (billions) % of original risk 10 9.5 9 8.6 8.2 7.7 7.3 7.0 remaining (1) 672 672 671 671 670 669 668 667 Weighted average FICO 760 and > (%) 11
Slide 17: Origination Year: 2007
Origination Year: 2007 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Original risk written $20.1 $20.1 $20.1 $20.1 $20.1 $20.1 $20.1 $20.1 (billions) % of original risk 16.1 15.3 14.6 13.9 13.2 12.4 11.6 10.8 remaining (1) 694 694 694 694 693 693 692 692 Weighted average FICO 760 a
Slide 18: Origination Year: 2008
Origination Year: 2008 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Original risk written $10.7 $10.7 $10.7 $10.7 $10.7 $10.7 $10.7 $10.7 (billions) % of original risk 12.7 12 11.3 10.8 10.1 9.4 8.6 7.8 remaining (1) 722 721 722 722 722 722 721 721 Weighted average FICO 760 and >
Slide 19: Origination Year: 2009
Origination Year: 2009 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Original risk written $4.0 $4.0 $4.0 $4.0 $4.0 $4.0 $4.0 $4.0 (billions) % of original risk 3.5 3.1 2.7 2.4 2.2 2 1.7 1.5 remaining (1) 746 746 746 747 747 746 746 746 Weighted average FICO 760 and > (%) 40.3 40.7
Slide 20: Origination Year: 2010
Origination Year: 2010 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Original risk written $3.1 $3.1 $3.1 $3.1 $3.1 $3.1 $3.1 $3.1 (billions) % of original risk 3.6 3.0 2.1 1.3 0.9 0.7 0.6 0.5 remaining 747 746 744 742 743 742 741 742 Weighted average FICO(1) 760 and > (%) 41.5 40.
Slide 21: Origination Year: 2011
Origination Year: 2011 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Original risk written $3.5 $3.5 $3.5 $3.5 $3.5 $3.5 $3.5 $3.5 (billions) % of original risk 6.9 6.1 5.3 4.4 3.7 2.9 2.0 1.2 remaining 752 752 752 752 752 751 748 748 Weighted average FICO(1) 760 and > (%) 45.3 45.
Slide 22: Origination Year: 2012
Origination Year: 2012 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Original risk written $6.1 $6.1 $6.1 $6.1 $6.1 $6.1 $6.1 $6.1 (billions) % of original risk 14.9 13.2 11.6 10.1 8.6 7.3 5.44 3.4 remaining 756 756 756 755 755 755 754 752 Weighted average FICO(1) 760 and > (%) 51.
Slide 23: Origination Year: 2013
Origination Year: 2013 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Original risk written $7.4 $7.4 $7.4 $7.4 $7.4 $7.4 $7.4 $7.4 (billions) % of original risk 23.9 21.4 19.0 17.2 15.2 12.9 10.8 8.9 remaining Weighted average FICO(1) 749 749 749 749 748 747 746 746 760 and > (%) 4
Slide 24: Origination Year: 2014
Origination Year: 2014 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Original risk written $8.7 $8.7 $8.7 $8.7 $8.7 $8.7 $8.7 $8.7 (billions) % of original risk 35.1 32.3 29.6 27.4 24.0 20.8 17.7 15.3 remaining 742 742 741 741 741 740 739 738 Weighted average FICO(1) 760 and > (%)
Slide 25: Origination Year: 2015
Origination year: 2015 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Original risk written $10.8 $10.8 $10.8 $10.8 $10.8 $10.8 $10.8 $10.8 (billions) % of original risk 50.8 47.0 43.7 40.6 36.0 30.9 26.4 22.7 remaining 744 744 744 744 743 743 742 741 Weighted average FICO(1) 760 an
Slide 26: Origination Year: 2016
Origination year: 2016 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Original risk written $11.9 $11.9 $11.9 $11.9 $11.9 $11.9 $11.9 $11.9 (billions) % of original risk 68.8 64.2 61.0 57.1 51.3 44.4 38.2 33.0 remaining (1) 746 746 747 747 746 746 745 745 Weighted average FICO 760 a
Slide 27: Origination Year: 2017
Origination year: 2017 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Original risk written $12.3 $12.3 $12.3 $12.3 $12.3 $12.3 $12.3 12.3 (billions) % of original risk 82.6 77.7 72.3 67.2 58.1 49.9 42.1 35.8 remaining 745 745 745 745 744 743 742 741 Weighted average FICO(1) 760 and
Slide 28: Origination Year: 2018
Origination year: 2018 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Original risk written $12.5 $12.5 $12.5 $12.5 $12.5 $12.6 $12.6 $12.6 (billions) % of original risk 90.9 83.7 76.3 69.7 59.0 50.2 42.2 35.8 remaining 745 744 744 743 742 741 740 738 Weighted average FICO(1) 760 an
Slide 29: Origination Year: 2019
Origination year: 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Original risk written $16.2 $16.2 $16.2 $16.2 $16.2 (billions) % of original risk 91.7 84.1 75.6 66.1 56.3 remaining (1) 749 748 747 747 746 Weighted average FICO 760 and > (%) 44.0 43.5 42.8 42.1 41.3 740 – 759 19.0 19.1 19.0 18.9 18.7
Slide 30: Origination Year: 2020
Origination year: 2020 Q4 2020 Q1 2021 Original risk written $26.0 $27.3 (billions) % of original risk 95.4 90.6 remaining (1) 751 751 Weighted average FICO 760 and > (%) 46.4 46.3 740 – 759 18.4 18.3 720 – 739 13.5 13.5 700 – 719 10.4 10.5 680 – 699 7.5 7.5 660 – 679 2.1 2.1 640 – 659 1.1 1.1 639 a