Company boosts share buybacks, announces reinsurance adjustments
Private mortgage insurance provider MGIC Investment Corporation (NYSE: MTG) has released its financial results for the fourth quarter of 2024.
MGIC posted a net income of $184.7 million, or $0.72 per diluted share, for the quarter. On an adjusted basis, the company reported an operating income of $184.5 million, also $0.72 per diluted share. For the full year, MGIC earned $763 million in net income, with an adjusted net operating income of $768.5 million, translating to $2.89 and $2.91 per diluted share, respectively.
In line with its capital return strategy, MGIC paid a dividend of $0.13 per common share during the fourth quarter and repurchased 7.8 million shares of common stock for $193.3 million. The company’s principal subsidiary, Mortgage Guaranty Insurance Corporation (MGIC), also distributed $400 million in dividends to the holding company.
MGIC also announced an agreement with a group of unaffiliated reinsurers for a 40% quota share reinsurance transaction, covering most of its 2025 and 2026 new insurance written (NIW). Additionally, the company exercised an early termination option on its 2021 quota share reinsurance deal, amending terms to reduce the quota share cede rate from 30% to 26% on remaining eligible insurance. The termination resulted in a $1 million fee to non-participating reinsurers, with the revised agreement effective as of Dec. 31, 2024.
"As we close another year on a high note with strong financial results in the fourth quarter while returning meaningful capital to our shareholders, I am looking forward to the opportunities that lie before us in the new year,” Tim Mattke, CEO of MGIC, said in a press release. “With the solid foundation we have built, our leadership in the market, and our talented team, I remain confident in our ability to execute on our business strategies and achieve success for all of our stakeholders."
MGIC has continued its capital return initiatives into Q1 2025, repurchasing 3.5 million additional shares for $85.5 million in January. The company also declared a $0.13 per share dividend payable on March 5, 2025, to shareholders of record as of Feb. 18, 2025.
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As of Dec. 31, 2024, MGIC had $295.4 billion of primary insurance in force, covering 1.1 million mortgages across the United States. The company remains focused on providing private mortgage insurance solutions to help borrowers access homeownership through low down-payment mortgages.
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