Mgic Investment Corporation · NYSE:MTG
Mgic Investment — Q4 2023 Earnings Presentation
14 slides from Mgic Investment's earnings presentation, Feb 1, 2024
Slide 1: MGIC Investment Corporation Quarterly Supplement Q4 2023
MGIC Investment Corporation Quarterly Supplement Q4 2023 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
Primary Risk in Force December 31, 2023 Origination year: 2023 2022 2021 2020 2019 2018 2017 2016 2009 - 2015 2005 - 2008 2004 & Prior Total Original risk written (billions) $11.7 $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 96.0 89.8 76.4 48.4 23.0
Slide 4: Additional Book Year Statistics
Additional Book Year Statistics December 31, 2023 NM Origination year: 2023 2022 2021 2020 2019 2018 2017 2016 2009-2015 2005 - 2008 2004 & Prior Total Delinquency statistics: (1) Risk in force delinquent (%) 0.2 1.3 1.3 1.1 2.3 4.9 3.9 3.7 6.5 12.6 16.5 1.9 # of loans delinquent 312 2,605 4,237 2,3
Slide 5: PMIERs Primary Minimum Required Assets
PMIERs Primary Minimum Required Assets December 31, 2023 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 $0.0 ($ in millions) <2009 2009-2015 2016-2019 2020 2021 2022 2023 Total Total Minimum Required Assets $534
Slide 6: Losses Incurred
Losses Incurred December 31, 2023 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Q4 2022 # of New notices 12,708 12,240 10,580 11,297 11,899 New notice claim rate 7.5% 7.5% 7.5% 7.5% 7.5% New notice severity 59,200 57,900 57,300 57,100 55,500 Current period losses incurred, net ($m) 51 48 42 47 46 Prior period dev
Slide 7: Loss Reserves
Loss Reserves December 31, 2023 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Q4 2022 Delinquency Inventory* 25,650 24,720 23,823 24,757 26,387 Average claim rate 29.5% 32.3% 34.5% 35.5% 34.4% Average severity 59,230 58,530 57,430 56,730 55,035 Direct primary loss reserves ($m) 448 467 472 498 498 Total Direct lo
Slide 8: Primary Risk in Force: Year of Origination and Top Jurisdictions
Primary Risk in Force Year of Origination Top 10 Jurisdictions 40% 10% 8.6% 35% 8% 7.7% 29.6% 30% 6.7% 25% 22.8% 6% 5.1% 20% 17.1% 4.1% 4.0% 14.5% 4% 3.7% 3.6% 15% 3.5% 3.5% 10.8% 10% 2% 5% 3.4% 1.3% 0.4% 0% 0% 2023 2022 2021 2020 2004 & Prior 2016-2019 2009-2015 2005-2008 CA TX FL PA IL VA NC OH GA
Slide 9: Primary Risk in Force: Original LTV and FICO
Primary Risk in Force Original LTV Original FICO 100% 100% 15.7% 15.1% 14.7% 15.3% 18.7% 29.9% 42.2% 42.1% 39.0% 75% 43.0% 75% 10.7% 11.1% 52.0% 50.4% 52.2% 52.4% 29.8% 16.5% 11.7% 50% 50% 17.2% 17.9% 17.7% 11.6% 14.0% 14.1% 13.7% 14.1% 10.1% 25% 29.8% 25% 11.3% 11.1% 8.5% 27.3% 28.1% 10.8% 11.1% 27
Slide 10: Primary Risk in Force: Property Type and Occupancy
Primary Risk in Force Property Type Occupancy 100% 100% 1.9% 2.2% 2.6% 2.4% 6.9% 13.9% 13.7% 13.6% 12.4% 15.6% 75% 75% 50% 50% 98.1% 97.8% 97.4% 97.6% 93.1% 86.1% 86.3% 86.4% 87.6% 84.4% 25% 25% 0% 0% 12/31/2023 12/31/2022 12/31/2021 12/31/2019 12/31/2008 12/31/2023 12/31/2022 12/31/2021 12/31/2019
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% 2.5% 2.6% 100% 1.0% 1.1% 1.4% 4.7% 2.5% 10.9% 12.0% 11.2% 14.8% 16.4% 16.1% 36.7% 13.3% 75% 46.4% 75% 54.4% 51.4% 25.8% 50% 50% 30.7% 88.1% 86.9% 86.3% 82.2% 27.8% 71.9% 24.5% 25.7% 40.8% 25% 25% 25.9% 17.7% 20.3% 16.2% 12.6% 0% 2.2%
Slide 12: Flow Delinquency Rate
Flow Delinquency Rate December 31, 2023 Static Pool Delinquency Rates Based on Loan Count 18% 3.5% 17% 16% 3.0% 15% 14% 2.5% 13% 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
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 6.4 6.3 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 Dec-19 Mar-2
Slide 14: Statutory Capital
Statutory Capital MGIC Statutory Capital ($ in millions) Surplus Contingency Reserves (1) RTC Scheduled Contingency Reserve 14 Releases: $5,518 $5,767 13 Year Amount (M) $5,273 $4,857 12 2024 $248 $4,582 2025 $507 $3,820 11 $3,275 2026 $527 $2,963 $4,056 10 $2,686 $2,138 $3,521 $4,597 2027 $531 $1,6