Mgic Investment Corporation · NYSE:MTG
Mgic Investment — Q3 2024 Earnings Presentation
14 slides from Mgic Investment's earnings presentation, Nov 5, 2024
Slide 1: Quarterly Supplement Q3 2024
Quarterly Supplement Q3 2024 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 September 30, 2024 Origination year: 2024 2023 2022 2021 2020 2019 2018 2017 2016 2009 - 2015 2005 - 2008 2004 & Prior Total Original risk written (billions) $10.1 $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 96.9 88.4 83.
Slide 4: Additional Book Year Statistics
Additional Book Year Statistics September 30, 2024 NM Origination year: 2024 2023 2022 2021 2020 2019 2018 2017 2016 2009-2015 2005 - 2008 2004 & Prior Total Delinquency statistics: (1) Risk in force delinquent (%) 0.2 0.8 1.7 1.6 1.3 2.4 5.0 4.3 3.8 7.4 12.0 15.7 1.9 # of loans delinquent 207 1,071
Slide 5: PMIERs Primary Minimum Required Assets
PMIERs Primary Minimum Required Assets September 30, 2024 PMIERs Primary Minimum Required Assets by Book Year 2024 2023 2022 2021 2020 2016-2019 2009-2015 <2009 $0.0 $0.5 $1.0 $1.5 in billions Retained Quota-Share Insurance-linked notes Excess-of-Loss 5
Slide 6: Losses Incurred
Losses Incurred September 30, 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 # of New notices 13,679 11,444 12,177 12,708 12,240 New notice claim rate 7.5% 7.5% 7.5% 7.5% 7.5% New notice severity 60,600 60,600 60,200 59,200 57,900 Current period losses incurred, net ($m) 56 48 54 51 48 Prior period de
Slide 7: Loss Reserves
Loss Reserves September 30, 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Delinquency Inventory* 25,089 23,370 24,142 25,650 24,720 Average claim rate 26.1% 29.6% 30.8% 29.5% 32.3% Average severity 61,800 61,000 60,230 59,230 58,530 Direct primary loss reserves ($m) 406 422 448 448 467 Total Direct l
Slide 8: Primary Risk in Force
Primary Risk in Force Year of Origination Top 10 Jurisdictions 30% 10% 9.0% 25.4% 25% 8.0% 8% 20.9% 6.6% 20% 6% 5.2% 15% 14.1% 13.5% 12.6% 4.2% 3.9% 4% 3.5% 3.5% 3.5% 3.3% 10% 9.1% 2% 5% 3.1% 0.8% 0.4% 0% 0% CA TX FL PA IL VA NY OH NC GA 2024 2023 2022 2021 2020 2016-2019 2009-2015 2005-2008 2004 &
Slide 9: Primary Risk in Force
Primary Risk in Force Original LTV Original FICO 100% 100% 16.4% 15.7% 15.1% 14.7% 14.6% 43.0% 42.2% 42.1% 40.3% 43.7% 75% 75% 52.0% 50.4% 50.2% 53.0% 52.4% 50% 50% 17.0% 17.9% 17.7% 17.2% 18.0% 13.8% 14.1% 13.7% 14.2% 14.1% 25% 25% 11.2% 28.1% 28.3% 11.1% 11.1% 27.3% 10.6% 10.8% 26.7% 27.2% 8.3% 7.
Slide 10: Primary Risk in Force
Primary Risk in Force Property Type Occupancy 100% 100% 1.7% 1.9% 2.2% 2.6% 2.4% 14.0% 13.9% 13.7% 13.6% 12.6% 75% 75% 50% 50% 98.3% 98.1% 97.8% 97.4% 97.6% 86.0% 86.1% 86.3% 86.4% 87.4% 25% 25% 0% 0% 9/30/2024 12/31/2023 12/31/2022 12/31/2021 12/31/2020 9/30/2024 12/31/2023 12/31/2022 12/31/2021 12
Slide 11: Primary Risk in Force
Primary Risk in Force Loan Amount (1) Loan Purpose 100% 2.5% 2.7% 2.7% 2.5% 2.6% 100% 0.9% 1.0% 1.1% 1.4% 1.9% 7.5% 10.9% 12.0% 16.4% 18.2% 75% 40.4% 46.4% 75% 54.4% 51.4% 56.7% 50% 50% 91.7% 88.1% 86.9% 29.8% 82.2% 27.8% 79.9% 25.7% 23.7% 24.5% 25% 25% 20.3% 23.6% 15.2% 16.2% 17.7% 0% 2.0% 2.2% 2.5
Slide 12: Flow Delinquency Rate
Flow Delinquency Rate September 30, 2024 Static Pool Delinquency Rates Based on Loan Count 18% 4.5% 17% 16% 4.0% 15% 3.5% 14% 13% 3.0% 12% 11% 2.5% 10% 9% 2.0% 8% 7% 1.5% 6% 5% 1.0% 4% 3% 0.5% 2% 1% 0.0% Q1 Q4 Q8 Q12 Q16 Q20 Q24 0% Q52 Q56 Q60 Q64 Q68 Q20 Q24 Q28 Q32 Q36 Q40 Q44 Q48 Q12 Q16 Q1 Q4 Q8
Slide 13: Capital Requirements on New Risk Written
Capital Requirements on New Risk Written Minimum Required Assets as a % of New Risk Written 9,000 7.1 7.1 7.2 7.0 8,000 7.0 6.9 6.9 7,000 6.8 6.8 6.7 Quarterly Risk Written ($ millions) 6.7 6,000 6.6 6.6 6.6 6.5 5,000 6.4 6.4 6.3 6.4 6.3 4,000 6.2 6.2 6.2 3,000 6.0 2,000 1,000 5.8 - 5.6 Jun-21 Jun-2
Slide 14: Statutory Capital
Statutory Capital MGIC Statutory Capital ($ in millions) Surplus Contingency Reserves (1) RTC $6,052 $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 $5,131 $5,401 9.7:1 9.5:1 10.2:1 10.2:1 $1,654 9.2:1 $1,181 9.0:1 9.6:1 9.5:1 10.7:1 $1,505 $1,620 $1,682 $1