MGIC, Radian, Arch report on the results for the 2nd quarter



MGIC Investment was the only mortgage insurer to have completed over $ 30 billion NIW in the recent period, with $ 33.6 billion, up from $ 30.8 billion in the first quarter and $ 28.2 billion. a year earlier.

This led to an increase in IIF to $ 262 billion on June 30, up from $ 251.7 billion three months earlier and $ 230.5 billion in the second quarter of 2020.

According to analyst Ryan Gilbert, MGIC’s net worth was 24% higher than BTIG’s estimate as the company benefits from a strong purchasing market. It was also influenced by the fact that he surpassed his views on IIF.

“Our quarterly financial results improved on the credit quality of existing insurance, a strong housing market, fewer new delinquencies and improved economic conditions as many local economies return to pre-pandemic levels of activity,” said CEO Tim Mattke. in the press release.

Persistence, which measures the percentage of insurance remaining in effect over the prior year, was 57.1% as of June 30, up from 56.2% and 68.2% as of June 30, 2020.

“We expect healthy growth in IIF and NIW in 2021, although we do expect some share loss compared to growth in 2020,” said BTIG’s Gilbert. “Default statistics improved in the second quarter and in July, and we expect this trend to continue in 2021.”

MGIC’s initial inventory of delinquencies consisted of 42,999 loans at the end of the quarter, compared to 52,775 loans as of March 31 and 69,326 loans as of June 30, 2020.

The company released an update for July that showed IIF rose nearly $ 4 billion to $ 265.8 billion, while overdue inventories fell 1,588 to $ 41,411.


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