Mgic Investment Corporation · NYSE:MTG
Mgic Investment — Q3 2023 Earnings Presentation
15 slides from Mgic Investment's earnings presentation, Nov 1, 2023
Slide 1: MGIC Investment Corporation Quarterly Supplement Q3 2023
MGIC Investment Corporation Quarterly Supplement Q3 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 by Origination Year
Primary Risk in Force September 30, 2023 Origination year: 2023 2022 2021 2020 2019 2018 2017 2016 2009 - 2015 2005 - 2008 2004 & Prior Total Original risk written (billions) $8.9 $19.6 $29.9 $27.3 $16.2 $12.5 $12.3 $11.9 $43.7 $63.6 $181.5 N.M. % of original risk remaining 97.0 91.2 79.1 50.9 24.0
Slide 4: Additional Book Year Statistics
Additional Book Year Statistics September 30, 2023 NM Origination year: 2023 2022 2021 2020 2019 2018 2017 2016 2009-2015 2005 - 2008 2004 & Prior Total Delinquency statistics: (1) Risk in force delinquent (%) 0.1 1.0 1.2 1.0 2.2 4.6 3.9 3.4 5.7 12.6 16.6 1.8 # of loans delinquent 125 2,143 3,806 2,
Slide 5: Losses Incurred
Losses Incurred September 30, 2023 Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 # of New notices 12,240 10,580 11,297 11,899 10,990 New notice claim rate 7.5% 7.5% 7.5% 7.5% 7.5% New notice severity 57,900 57,300 57,100 55,500 49,500 Current period losses incurred, net ($m) 48 42 47 46 36 Prior period de
Slide 6: Loss Reserves
Loss Reserves September 30, 2023 Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 Delinquency Inventory* 24,720 23,823 24,757 26,387 25,878 Average claim rate 32.3% 34.5% 35.5% 34.4% 38.5% Average severity 58,530 57,430 56,730 55,035 54,290 Direct primary loss reserves ($m) 467 472 498 498 540 Total Direct l
Slide 7: Home Re 2023-1 Ltd. Transaction Overview
Home Re 2023-1 Ltd. Transaction Overview Transaction On October 23, 2023, MGIC obtained fully collateralized excess of loss reinsurance coverage on mortgage insurance policies written from June 1, 2022 through August 31, 2023. The total amount of reinsurance was $330.2 million as of the closing
Slide 8: Home Re 2023-1 Ltd. Structure
Home Re 2023-1 Ltd. Structure Weighted Coverage Notes Credit Average Coverage Level ($ in Funded Issued ($ in % of Risk Enhancement Life (in Coupon Levels 000s) % 000s) in Force % years)1 (bps) DBRS Rating A-H 8,484,443 93.25% 6.75% RETAINED BY MGIC Key Transaction and Structure Details: • Cut-off D
Slide 9: Primary Risk in Force: Year of Origination and Top Jurisdictions
Primary Risk in Force Year of Origination Top 10 Jurisdictions 40% 10% 35% 8.5% 30.6% 8% 7.7% 30% 6.7% 25% 23.2% 6% 5.1% 20% 18.0% 4.1% 4.0% 4% 3.7% 3.6% 3.6% 15% 3.5% 11.1% 11.4% 10% 2% 5% 3.6% 1.6% 0.5% 0% 0% 2023 2022 2021 2020 2004 & Prior 2016-2019 2009-2015 2005-2008 CA TX FL PA IL VA NC OH GA
Slide 10: Primary Risk in Force: Original LTV and FICO
Primary Risk in Force Original LTV Original FICO 100% 100% 15.5% 15.1% 14.7% 15.3% 18.7% 29.9% 42.2% 42.1% 39.0% 75% 42.8% 75% 10.7% 11.1% 52.0% 50.4% 52.2% 52.3% 29.8% 16.5% 11.7% 50% 50% 17.2% 17.9% 17.7% 11.6% 14.0% 14.1% 14.1% 13.7% 10.1% 25% 29.8% 25% 11.3% 11.1% 8.5% 27.3% 28.1% 10.9% 11.1% 27
Slide 11: Primary Risk in Force: Property Type and Occupancy
Primary Risk in Force Property Type Occupancy 100% 100% 2.0% 2.2% 2.6% 2.4% 6.9% 13.9% 13.7% 13.6% 12.4% 15.6% 75% 75% 50% 50% 98.0% 97.8% 97.4% 97.6% 93.1% 86.1% 86.3% 86.4% 87.6% 84.4% 25% 25% 0% 0% 9/30/2023 12/31/2022 12/31/2021 12/31/2019 12/31/2008 9/30/2023 12/31/2022 12/31/2021 12/31/2019 12
Slide 12: 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% 9.9% 12.0% 11.2% 14.8% 16.4% 16.1% 36.7% 13.3% 75% 46.4% 75% 53.7% 51.4% 25.8% 50% 50% 30.7% 89.1% 86.9% 86.3% 82.2% 27.8% 71.9% 24.8% 25.7% 40.8% 25% 25% 25.9% 17.7% 20.3% 16.5% 12.6% 0% 2.2% 2
Slide 13: Flow Delinquency Rate
Flow Delinquency Rate September 30, 2023 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 Q4 Q8 Q12 Q16 Q20 Q24 Q28 Q32 Q36 Q40 Q44 Q48 Q52 Q56 Q59 0% Q1 Q4 Q8 Q12 Q16 Q20 Q24 Q2
Slide 14: Capital Requirements on New Risk Written
Capital Requirements on New Risk Written Minimum Required Assets as a % of New Risk Written 9,000 7.2 7.1 7.1 7.0 8,000 7.0 6.9 6.9 6.8 7,000 6.8 As of September 30, 2023 ($B): Quarterly Risk Written ($ millions) 6.7 6.7 6,000 Minimum Required Assets $3.5 6.6 6.5 5,000 Reinsurance Credit $2.2 6.4 6.
Slide 15: Statutory Capital
Statutory Capital MGIC Statutory Capital ($ in millions) Surplus Contingency Reserves (1) RTC Scheduled Contingency Reserve 14 Releases: $5,857 $5,518 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 $5,002 2027 $5