UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported April 17, 2008
MGIC Investment Corporation
(Exact Name of Registrant as Specified in Its Charter)
Wisconsin
(State or Other Jurisdiction of Incorporation)
| 1-10816 | 39-1486475 | |
| (Commission File Number) | (IRS Employer Identification No.) | |
| MGIC Plaza, 250 East Kilbourn Avenue, Milwaukee, WI | 53202 | |
| (Address of Principal Executive Offices) | (Zip Code) | |
(414) 347-6480
(Registrant’s Telephone Number, Including Area Code)
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following provisions (see General
Instruction A.2. below):
| o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| Item 2.02. | Results of Operations and Financial Condition |
| The Company issued a press release on April 17, 2008 announcing its results of operations for the quarter ended March 31, 2008 and certain other information. The press release is furnished as Exhibit 99. |
| Item 9.01. | Financial Statements and Exhibits |
| (d) | Exhibits |
| Pursuant to General Instruction B.2 to Form 8-K, the Company’s April 17, 2008 press release is furnished as Exhibit 99 and is not filed. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| MGIC INVESTMENT CORPORATION |
||||
| Date: April 17, 2008 | By: | \s\ Joseph J. Komanecki | ||
| Joseph J. Komanecki | ||||
| Senior Vice President, Controller and Chief Accounting Officer |
||||
INDEX TO EXHIBITS
| Exhibit | ||
| Number | Description of Exhibit | |
99
|
Press Release dated April 17, 2008. (Pursuant to General Instruction B.2 to Form 8-K, this press release is furnished and is not filed.) |
Exhibit 99
NEWS RELEASE |
 |
Investor Contact:
|
Michael J. Zimmerman, Investor Relations, (414) 347-6596, mike_zimmerman@mgic.com | |
Media Contact:
|
Katie Monfre, Corporate Communications, (414) 347-2650, katie_monfre@mgic.com |
MGIC Investment Corporation
Reports First Quarter 2008 Results
Reports First Quarter 2008 Results
MILWAUKEE (April 17, 2008) — MGIC Investment Corporation (NYSE:MTG) today reported a net loss
for the quarter ended March 31, 2008 of $34.4 million, compared with net income of $92.4 million
for the same quarter a year ago. Diluted loss per share was $0.41 for the quarter ending March 31,
2008, compared to diluted earnings per share of $1.12 for the same quarter a year ago.
Curt S. Culver, chairman and chief executive officer of MGIC Investment Corporation and Mortgage
Guaranty Insurance Corporation (MGIC), said that the company’s financial results continued to be
impacted by increases in both the number of delinquent loans and foreclosures that have resulted as
home prices declined further and the economy slowed. In addition, higher loss severities and lower
cure ratios, especially in California and Florida, also negatively impacted results. Culver was
pleased that the improvements in business fundamentals, including higher persistency, insurance in
force growth and improved credit standards are developing as expected and should benefit the
company financially over the long-term. Culver added that in response to the unprecedented market
conditions we are experiencing, the company has taken numerous actions designed to bolster its
financial strength including increasing its already strong capital resources by approximately $840
million through recent sales of securities, significantly changing its underwriting guidelines,
discontinuing writing Wall Street bulk transactions, increasing pricing, pursuing reinsurance
options and negotiating the possible sale of its interest in Sherman Financial Group LLC back to
Sherman.
Total revenues for the first quarter were $423.9 million, compared with $369.6 million in the first
quarter of 2007. Net premiums written for the quarter were $368.5 million, compared with $304.0
million in the first quarter last year.
New insurance written in the first quarter was $19.1 billion, compared to $12.7 billion in the
first quarter of 2007. New insurance written for the quarter included $1.0 billion of non-Wall
Street bulk transactions compared with $2.3 billion, including $0.2 billion of non-Wall Street
transactions, in the same period last year.
Persistency, or the percentage of insurance remaining in force from one year prior, was 77.5
percent at March 31, 2008, compared with 76.4 percent at December 31, 2007, and 70.3 percent at
March 31, 2007.
As of March 31, 2008, MGIC’s primary insurance in force was $221.4 billion, compared with $211.7
billion at December 31, 2007, and $178.3 billion at March 31, 2007. The book value of MGIC
Investment Corporation’s investment portfolio, cash and cash equivalents was $7.3 billion at March
31, 2008, compared with $6.2 billion at December 31, 2007, and $5.6 billion at March 31, 2007.
At March 31, 2008, the percentage of loans that were delinquent, excluding bulk loans, was 5.19
percent, compared with 4.99 percent at December 31, 2007, and 3.89 percent at March 31, 2007.
Including bulk loans, the percentage of loans that were delinquent at March 31, 2008 was 7.68
percent, compared to 7.45 percent at December 31, 2007, and 5.92 percent at March 31, 2007.
Losses incurred in the first quarter were $691.6 million, up from $181.8 million reported for the
same period last year. Underwriting expenses were $79.0 million in the first quarter, including
$3.3 million of one-time consulting fees associated with the common stock offering and private
placement of the junior subordinated convertible debenture as compared to $76.0 million reported
for the same period last year.
Wall Street Bulk transactions, as of March 31, 2008, included approximately 137,000 loans with
insurance in force of approximately $23.3 billion and risk in force of approximately $6.9 billion.
During the quarter the premium deficiency reserve declined by $264 million from $1,211 million, as
of December 31, 2007, to $947 million as of March 31, 2008. The $947 million premium deficiency
reserve as of March 31, 2008 reflects the present value of expected future losses and expenses that
exceeded the present value of expected future premium and already established loss reserves. Within
the premium deficiency calculation, our expected present value of expected future paid losses and
expenses was $3,397 million, offset by the present value of expected future premium of $874 million
and already established loss reserves of $1,576 million. The premium deficiency reserves as of
December 31, 2007 reflected expected present value of expected future paid losses and expenses of
$3,561 million, offset by the present value of expected future premium of $901 million and already
established loss reserves of $1,449 million.
Income from joint ventures, net of tax, in the quarter was $10.0 million down from $14.1 million
for the same period last year.
About MGIC
MGIC (www.mgic.com), the principal subsidiary of MGIC Investment Corporation, is the nation’s
leading provider of private mortgage insurance coverage with $221.4 billion primary insurance in
force covering 1.5 million mortgages as of March 31, 2008. MGIC serves over 3,300 lenders with
locations across the country and in Puerto Rico, Guam and Australia helping families achieve
homeownership sooner by making affordable low-down-payment mortgages a reality.
Webcast Details
As previously announced, MGIC Investment Corporation will hold a webcast today at 10 a.m. ET to
allow securities analysts and shareholders the opportunity to hear management discuss the company’s
quarterly results. The call is being webcast and can be accessed at the company’s website at
http://mtg.mgic.com. The webcast is also being distributed over CCBN’s Investor Distribution
Network to both institutional and individual investors. Investors can listen to the call through
CCBN’s individual investor center at www.companyboardroom.com or by visiting any of the investor
sites in CCBN’s Individual Investor Network. The webcast will be available for replay on the
company’s website through May 17, 2008 under Investor
Information.
This press release, which includes certain additional statistical and other information, including
non-GAAP financial information and a supplement that contains
various portfolio statistics are both available on the Company’s website at http://mtg.mgic.com under
Investor Information.
Safe Harbor Statement
Forward-Looking Statements and Risk Factors
We intend that certain matters discussed in this press release are “forward-looking statements”
intended to qualify for the safe harbor from liability established by the Private Securities
Litigation Reform Act of 1995. Forward-looking statements consist of statements which relate to
matters other than historical fact. Among others, statements that include words such as we
“believe,” “will,” “anticipate” or “expect,” or words of similar import, are forward-looking
statements. Forward-looking statements are subject to certain risks and uncertainties that could
cause actual results to differ materially from those anticipated as of the date of this release.
Certain of such risks and uncertainties are described below. Shareholders, potential investors, and
other readers are cautioned not to place undue reliance on forward-looking statements. The
forward-looking statements made in this press release are made as of the date of the press release
only and should not be relied upon as not having changed as of any
subsequent date, and we are not undertaking any obligation to update
them even though these statements may be affected by events or circumstances occurring after the date of
this press release.
Our business, including our revenues and losses, could be affected: (i) by a downturn in the
domestic economy or deterioration in home prices in the segment of the market we serve; (ii) by the
mix of business we write; (iii) by disproportionate losses in certain periods, which could occur
because, among other reasons, we establish loss reserves only upon a loan default rather than based
on estimates of our ultimate losses; (iv) if our paid claims substantially exceed our loss
reserves, which are based on estimates that are subject to significant uncertainties; (v) by
decreases in our shareholders’ equity, including if our shareholders’ equity falls below the
minimum amount required under our bank credit facility; (vi) if the premiums we charge are not
adequate to compensate us for our liabilities for losses; (vii) if investors select alternatives to
private mortgage insurance; (viii) by further downgrades in our financial strength rating below Aa3/AA- by
rating agencies other than Standard and Poor’s or by Standard
and Poor’s recent downgrade of our insurance financial strength
rating to A; (ix) by competition or changes in our relationships
with our customers or with Fannie Mae and Freddie Mac; (x) by declines in interest rates, appreciation in house prices or changes in
mortgage insurance cancellation requirements; (xi) if the volume of low down payment home mortgage
originations declines; (xii) by risks associated with of private litigation and regulatory proceedings.
The foregoing risks and uncertainties should be reviewed in connection with this press release and
our other filings with the Securities and Exchange Commission, including our prospectus filed with
the Securities and Exchange Commission on March 25, 2008, which includes additional information
about these and other risks and uncertainties in the “risk factors” included therein.
MGIC INVESTMENT CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
CONSOLIDATED STATEMENT OF OPERATIONS
| Three Months Ended March 31, | ||||||||
| 2008 | 2007 | |||||||
| (in thousands of dollars, except per share data) | ||||||||
Net premiums written |
$ | 368,454 | $ | 304,034 | ||||
Net premiums earned |
$ | 345,488 | $ | 299,021 | ||||
Investment income |
72,482 | 62,970 | ||||||
Realized losses |
(1,194 | ) | (3,010 | ) | ||||
Other revenue |
7,099 | 10,661 | ||||||
Total revenues |
423,875 | 369,642 | ||||||
Losses and expenses: |
||||||||
Losses incurred |
691,648 | 181,758 | ||||||
Change in premium deficiency reserves |
(263,781 | ) | — | |||||
Underwriting, other expenses |
78,993 | 76,032 | ||||||
Interest expense |
10,914 | 10,959 | ||||||
Ceding commission |
(2,007 | ) | (960 | ) | ||||
Total losses and expenses |
515,767 | 267,789 | ||||||
(Loss) income before tax and joint ventures |
(91,892 | ) | 101,853 | |||||
(Credit) provision for income tax |
(47,521 | ) | 23,543 | |||||
Income from joint ventures, net of tax (1) |
9,977 | 14,053 | ||||||
Net (loss) income |
$ | (34,394 | ) | $ | 92,363 | |||
Diluted weighted average common shares outstanding (Shares in thousands) |
84,127 | 82,354 | ||||||
Diluted (loss) earnings per share |
$ | (0.41 | ) | $ | 1.12 | |||
(1) Diluted EPS contribution from C-BASS |
$ | — | $ | (0.05 | ) | |||
Diluted EPS contribution from Sherman |
$ | 0.11 | $ | 0.22 | ||||
NOTE: See “Certain Non-GAAP Financial Measures” for diluted earnings per share contribution from realized (losses) gains.
MGIC INVESTMENT CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET AS OF
CONSOLIDATED BALANCE SHEET AS OF
| March 31, | December 31, | March 31, | ||||||||||
| 2008 | 2007 | 2007 | ||||||||||
| (in thousands of dollars, except per share data) | ||||||||||||
ASSETS |
||||||||||||
Investments (1) |
$ | 6,176,989 | $ | 5,896,233 | $ | 5,327,871 | ||||||
Cash and cash equivalents |
1,087,243 | 288,933 | 255,043 | |||||||||
Reinsurance recoverable on loss reserves (2) |
89,235 | 35,244 | 13,621 | |||||||||
Prepaid reinsurance premiums |
8,598 | 8,715 | 9,122 | |||||||||
Home office and equipment, net |
33,772 | 34,603 | 32,126 | |||||||||
Deferred insurance policy acquisition costs |
10,978 | 11,168 | 11,925 | |||||||||
Other assets |
1,261,582 | 1,441,465 | 997,982 | |||||||||
| $ | 8,668,397 | $ | 7,716,361 | $ | 6,647,690 | |||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||||||
Liabilities: |
||||||||||||
Loss reserves (2) |
3,017,331 | 2,642,479 | 1,141,566 | |||||||||
Premium deficiency reserves |
947,060 | 1,210,841 | — | |||||||||
Unearned premiums |
296,067 | 272,233 | 194,175 | |||||||||
Short- and long-term debt |
798,309 | 798,250 | 607,886 | |||||||||
Convertible debentures |
365,000 | — | — | |||||||||
Other liabilities |
257,907 | 198,215 | 248,647 | |||||||||
Total liabilities |
5,681,674 | 5,122,018 | 2,192,274 | |||||||||
Shareholders’ equity |
2,986,723 | 2,594,343 | 4,455,416 | |||||||||
| $ | 8,668,397 | $ | 7,716,361 | $ | 6,647,690 | |||||||
Book value per share (3) |
$ | 23.90 | $ | 31.72 | $ | 53.64 | ||||||
(1) Investments
include unrealized gains on securities marked to market pursuant to FAS 115 |
47,604 | 101,982 | 119,733 | |||||||||
(2) Loss reserves, net of reinsurance recoverable on loss reserves |
2,928,096 | 2,607,235 | 1,127,945 | |||||||||
(3) Shares outstanding |
124,949 | 81,793 | 83,067 | |||||||||
CERTAIN NON-GAAP FINANCIAL MEASURES
| Three Months Ended March 31, | ||||||||
| 2008 | 2007 | |||||||
| (in thousands of dollars, except per share data) | ||||||||
Diluted earnings per share contribution from realized losses: |
||||||||
Realized losses |
$ | (1,194 | ) | $ | (3,010 | ) | ||
Income taxes at 35% |
(418 | ) | (1,054 | ) | ||||
After tax realized losses |
(776 | ) | (1,956 | ) | ||||
Weighted average shares |
84,127 | 82,354 | ||||||
Diluted EPS contribution from realized losses |
$ | (0.01 | ) | $ | (0.02 | ) | ||
Management
believes the diluted earnings per share contribution from realized
gains (losses) provides useful information to investors because it
shows the after-tax effect on earnings of these items, which can be discretionary.
OTHER INFORMATION
New primary insurance written (“NIW”) ($ millions) |
$ | 19,067 | $ | 12,693 | ||||
New risk written ($ millions): |
||||||||
Primary |
$ | 4,679 | $ | 3,292 | ||||
Pool (1) |
$ | 57 | $ | 39 | ||||
Product mix as a % of primary flow NIW |
||||||||
> 95% LTVs |
30 | % | 40 | % | ||||
ARMs |
1 | % | 5 | % | ||||
Refinances |
35 | % | 27 | % | ||||
| (1) | Represents contractual aggregate loss limits and, for the three months ended March 31, 2008 and 2007, for $10 million and $29 million, respectively, of risk without such limits, risk is calculated at $0.6 million and $0.5 million, respectively, the estimated amount that would credit enhance these loans to a ‘AA’ level based on a rating agency model. |
Additional Information
| Q3 2006 | Q4 2006 | Q1 2007 | Q2 2007 | Q3 2007 | Q4 2007 | Q1 2008 | ||||||||||||||||||||||
New insurance written (billions) |
||||||||||||||||||||||||||||
Total |
$ | 16.6 | $ | 15.5 | $ | 12.7 | $ | 19.0 | $ | 21.1 | $ | 24.0 | $ | 19.1 | ||||||||||||||
Flow |
$ | 10.8 | $ | 10.4 | $ | 10.4 | $ | 17.3 | $ | 19.7 | $ | 21.6 | $ | 18.1 | ||||||||||||||
Bulk |
$ | 5.8 | $ | 5.1 | $ | 2.3 | $ | 1.7 | $ | 1.4 | $ | 2.4 | $ | 1.0 | ||||||||||||||
Insurance in force (billions) |
||||||||||||||||||||||||||||
Total |
$ | 173.4 | $ | 176.5 | $ | 178.3 | $ | 186.1 | $ | 196.6 | $ | 211.7 | $ | 221.4 | ||||||||||||||
Flow |
$ | 131.9 | $ | 134.4 | $ | 137.6 | $ | 147.2 | $ | 159.6 | $ | 174.7 | $ | 185.4 | ||||||||||||||
Bulk |
$ | 41.5 | $ | 42.1 | $ | 40.7 | $ | 38.9 | $ | 37.0 | $ | 37.0 | $ | 36.0 | ||||||||||||||
Annual Persistency |
67.8 | % | 69.6 | % | 70.3 | % | 72.0 | % | 74.0 | % | 76.4 | % | 77.5 | % | ||||||||||||||
Primary IIF (billions) |
$ | 173.4 | $ | 176.5 | $ | 178.3 | $ | 186.1 | $ | 196.6 | $ | 211.7 | $ | 221.4 | ||||||||||||||
Prime (620 & >) |
$ | 126.3 | $ | 128.3 | $ | 130.3 | $ | 137.2 | $ | 146.8 | $ | 161.3 | $ | 171.7 | ||||||||||||||
A minus (575 - 619) |
$ | 13.5 | $ | 14.0 | $ | 14.0 | $ | 14.5 | $ | 15.1 | $ | 15.9 | $ | 15.9 | ||||||||||||||
Sub-Prime (< 575) |
$ | 5.8 | $ | 5.8 | $ | 5.5 | $ | 5.3 | $ | 5.0 | $ | 4.7 | $ | 4.4 | ||||||||||||||
Reduced Doc (All FICOs) |
$ | 27.9 | $ | 28.5 | $ | 28.4 | $ | 29.1 | $ | 29.8 | $ | 29.9 | $ | 29.4 | ||||||||||||||
Primary RIF (billions) |
$ | 46.2 | $ | 47.1 | $ | 47.5 | $ | 49.2 | $ | 51.8 | $ | 55.8 | $ | 58.0 | ||||||||||||||
Prime (620 & >) |
$ | 32.8 | $ | 33.3 | $ | 33.9 | $ | 35.5 | $ | 38.0 | $ | 41.9 | $ | 44.4 | ||||||||||||||
A minus (575 - 619) |
$ | 3.8 | $ | 4.0 | $ | 4.0 | $ | 4.1 | $ | 4.2 | $ | 4.4 | $ | 4.3 | ||||||||||||||
Sub-Prime (< 575) |
$ | 1.7 | $ | 1.7 | $ | 1.6 | $ | 1.5 | $ | 1.4 | $ | 1.4 | $ | 1.3 | ||||||||||||||
Reduced Doc (All FICOs) |
$ | 7.9 | $ | 8.1 | $ | 8.0 | $ | 8.1 | $ | 8.2 | $ | 8.2 | $ | 8.0 | ||||||||||||||
Risk in force by FICO |
||||||||||||||||||||||||||||
% (FICO 620 & >) |
86.0 | % | 85.8 | % | 86.2 | % | 86.7 | % | 87.5 | % | 88.4 | % | 89.1 | % | ||||||||||||||
% (FICO 575 - 619) |
9.8 | % | 10.0 | % | 9.9 | % | 9.7 | % | 9.3 | % | 8.8 | % | 8.4 | % | ||||||||||||||
% (FICO < 575) |
4.2 | % | 4.2 | % | 3.9 | % | 3.6 | % | 3.2 | % | 2.8 | % | 2.5 | % | ||||||||||||||
Average Coverage Ratio (RIF/IIF) |
||||||||||||||||||||||||||||
Total |
26.6 | % | 26.7 | % | 26.6 | % | 26.4 | % | 26.4 | % | 26.3 | % | 26.2 | % | ||||||||||||||
Prime (620 & >) |
26.0 | % | 26.0 | % | 26.0 | % | 25.9 | % | 25.9 | % | 26.0 | % | 25.9 | % | ||||||||||||||
A minus (575 - 619) |
28.3 | % | 28.5 | % | 28.4 | % | 28.1 | % | 27.8 | % | 27.4 | % | 27.2 | % | ||||||||||||||
Sub-Prime (< 575) |
28.7 | % | 29.1 | % | 29.2 | % | 28.3 | % | 29.1 | % | 28.9 | % | 28.9 | % | ||||||||||||||
Reduced Doc (All FICOs) |
28.5 | % | 28.4 | % | 28.3 | % | 27.9 | % | 27.6 | % | 27.4 | % | 27.3 | % | ||||||||||||||
Average Loan Size (thousands) |
||||||||||||||||||||||||||||
Total IIF |
$ | 135.93 | $ | 137.57 | $ | 138.74 | $ | 141.16 | $ | 143.46 | $ | 147.31 | $ | 149.79 | ||||||||||||||
Flow |
$ | 127.99 | $ | 129.32 | $ | 130.82 | $ | 134.17 | $ | 137.74 | $ | 142.26 | $ | 145.58 | ||||||||||||||
Bulk |
$ | 169.29 | $ | 172.83 | $ | 174.47 | $ | 175.57 | $ | 174.82 | $ | 177.00 | $ | 175.71 | ||||||||||||||
Prime (620 & >) |
$ | 128.36 | $ | 129.70 | $ | 131.07 | $ | 133.79 | $ | 136.74 | $ | 141.69 | $ | 145.05 | ||||||||||||||
A minus (575 - 619) |
$ | 126.19 | $ | 129.12 | $ | 129.72 | $ | 130.78 | $ | 131.58 | $ | 133.46 | $ | 133.89 | ||||||||||||||
Sub-Prime (< 575) |
$ | 125.16 | $ | 127.30 | $ | 126.29 | $ | 127.21 | $ | 125.03 | $ | 124.53 | $ | 123.57 | ||||||||||||||
Reduced Doc (All FICOs) |
$ | 200.65 | $ | 202.98 | $ | 204.58 | $ | 207.53 | $ | 208.69 | $ | 209.99 | $ | 209.54 | ||||||||||||||
Primary IIF — # of loans |
1,275,822 | 1,283,174 | 1,284,926 | 1,318,318 | 1,370,426 | 1,437,432 | 1,478,336 | |||||||||||||||||||||
Prime (620 & >) |
983,749 | 989,111 | 994,504 | 1,025,658 | 1,073,219 | 1,138,300 | 1,184,006 | |||||||||||||||||||||
A minus (575 - 619) |
106,754 | 108,143 | 108,081 | 110,905 | 114,792 | 119,057 | 118,353 | |||||||||||||||||||||
Sub-Prime (< 575) |
46,429 | 45,633 | 43,480 | 41,665 | 39,754 | 37,894 | 35,729 | |||||||||||||||||||||
Reduced Doc (All FICOs) |
138,890 | 140,287 | 138,861 | 140,090 | 142,661 | 142,181 | 140,248 | |||||||||||||||||||||
Primary IIF — # of Delinquent Loans |
76,301 | 78,628 | 76,122 | 80,588 | 90,829 | 107,120 | 113,589 | |||||||||||||||||||||
Flow |
41,130 | 42,438 | 40,911 | 43,328 | 50,124 | 61,352 | 66,055 | |||||||||||||||||||||
Bulk |
35,171 | 36,190 | 35,211 | 37,260 | 40,705 | 45,768 | 47,534 | |||||||||||||||||||||
Prime (620 & >) |
35,838 | 36,727 | 35,436 | 36,712 | 41,412 | 49,333 | 52,571 | |||||||||||||||||||||
A minus (575 - 619) |
18,063 | 18,182 | 17,047 | 17,943 | 19,918 | 22,863 | 22,748 | |||||||||||||||||||||
Sub-Prime (< 575) |
12,150 | 12,227 | 11,246 | 11,679 | 12,186 | 12,915 | 12,267 | |||||||||||||||||||||
Reduced Doc (All FICOs) |
10,250 | 11,492 | 12,393 | 14,254 | 17,313 | 22,009 | 26,003 | |||||||||||||||||||||
| Q3 2006 | Q4 2006 | Q1 2007 | Q2 2007 | Q3 2007 | Q4 2007 | Q1 2008 | ||||||||||||||||||||||
Primary IIF Delinquency Rates |
5.98 | % | 6.13 | % | 5.92 | % | 6.11 | % | 6.63 | % | 7.45 | % | 7.68 | % | ||||||||||||||
Flow |
3.99 | % | 4.08 | % | 3.89 | % | 3.95 | % | 4.33 | % | 4.99 | % | 5.19 | % | ||||||||||||||
Bulk |
14.33 | % | 14.87 | % | 15.11 | % | 16.80 | % | 19.25 | % | 21.91 | % | 23.19 | % | ||||||||||||||
Prime (620 & >) |
3.64 | % | 3.71 | % | 3.56 | % | 3.58 | % | 3.86 | % | 4.33 | % | 4.44 | % | ||||||||||||||
A minus (575 - 619) |
16.92 | % | 16.81 | % | 15.77 | % | 16.18 | % | 17.35 | % | 19.20 | % | 19.22 | % | ||||||||||||||
Sub-Prime (< 575) |
26.17 | % | 26.79 | % | 25.86 | % | 28.03 | % | 30.65 | % | 34.08 | % | 34.33 | % | ||||||||||||||
Reduced Doc (All FICOs) |
7.38 | % | 8.19 | % | 8.92 | % | 10.17 | % | 12.14 | % | 15.48 | % | 18.54 | % | ||||||||||||||
Net Paid Claims (millions) |
$ | 157 | $ | 157 | $ | 166 | $ | 188 | $ | 232 | $ | 284 | $ | 371 | ||||||||||||||
Flow |
$ | 67 | $ | 72 | $ | 71 | $ | 82 | $ | 89 | $ | 108 | $ | 141 | ||||||||||||||
Bulk |
$ | 69 | $ | 65 | $ | 75 | $ | 84 | $ | 121 | $ | 154 | $ | 210 | ||||||||||||||
Other |
$ | 21 | $ | 20 | $ | 20 | $ | 22 | $ | 22 | $ | 22 | $ | 20 | ||||||||||||||
Prime (620 & >) |
$ | 62 | $ | 65 | $ | 67 | $ | 75 | $ | 87 | $ | 103 | $ | 137 | ||||||||||||||
A minus (575 - 619) |
$ | 33 | $ | 32 | $ | 34 | $ | 36 | $ | 43 | $ | 48 | $ | 68 | ||||||||||||||
Sub-Prime (< 575) |
$ | 20 | $ | 17 | $ | 19 | $ | 23 | $ | 26 | $ | 33 | $ | 39 | ||||||||||||||
Reduced Doc (All FICOs) |
$ | 21 | $ | 23 | $ | 26 | $ | 32 | $ | 54 | $ | 78 | $ | 107 | ||||||||||||||
Primary Average Claim Payment (thousands) |
$ | 29.6 | $ | 29.3 | $ | 30.8 | $ | 33.2 | $ | 39.0 | $ | 43.8 | $ | 51.2 | ||||||||||||||
Flow |
$ | 28.5 | $ | 27.4 | $ | 28.9 | $ | 30.1 | $ | 31.8 | $ | 34.6 | $ | 37.8 | ||||||||||||||
Bulk |
$ | 30.8 | $ | 31.7 | $ | 33.0 | $ | 36.9 | $ | 46.9 | $ | 53.8 | $ | 67.1 | ||||||||||||||
Prime (620 & >) |
$ | 28.3 | $ | 27.7 | $ | 29.1 | $ | 30.6 | $ | 34.1 | $ | 36.5 | $ | 42.2 | ||||||||||||||
A minus (575 - 619) |
$ | 29.9 | $ | 29.1 | $ | 30.6 | $ | 33.5 | $ | 37.5 | $ | 40.1 | $ | 48.4 | ||||||||||||||
Sub-Prime (< 575) |
$ | 28.3 | $ | 27.3 | $ | 27.8 | $ | 31.3 | $ | 35.7 | $ | 40.2 | $ | 49.4 | ||||||||||||||
Reduced Doc (All FICOs) |
$ | 35.2 | $ | 37.9 | $ | 40.8 | $ | 43.4 | $ | 56.6 | $ | 67.8 | $ | 75.5 | ||||||||||||||
Risk sharing Arrangements — Flow Only |
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% insurance inforce subject to risk sharing (1) |
47.5 | % | 47.6 | % | 47.3 | % | 46.7 | % | 46.9 | % | 46.9 | % | ||||||||||||||||
% Quarterly NIW subject to risk sharing (1) |
46.5 | % | 48.3 | % | 45.6 | % | 49.7 | % | 47.3 | % | 47.6 | % | ||||||||||||||||
Premium ceded (millions) |
$ | 33.0 | $ | 35.4 | $ | 36.7 | $ | 36.6 | $ | 43.4 | $ | 47.6 | $ | 53.6 | ||||||||||||||
Captive trust fund assets (millions) |
$ | 637 | $ | 687 | ||||||||||||||||||||||||
Other: |
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Direct Pool Risk in Force (millions) (2) |
$ | 3,071 | $ | 3,063 | $ | 3,029 | $ | 3,029 | $ | 3,036 | $ | 2,800 | $ | 2,727 | ||||||||||||||
Mortgage Guaranty Insurance Corporation — Risk to Capital |
6.4:1 | 6.4:1 | 6.4:1 | 6.7:1 | 7.9:1 | 10.3:1 | 10.1:1 | |||||||||||||||||||||
Combined Insurance Companies — Risk to Capital |
7.4:1 | 7.5:1 | 7.5:1 | 7.7:1 | 9.1:1 | 11.9:1 | 11.7:1 | |||||||||||||||||||||
Shares repurchased |
||||||||||||||||||||||||||||
# of shares (thousands) |
2,697.0 | 216.9 | — | 1,115.1 | 150.0 | — | — | |||||||||||||||||||||
Average price |
$ | 58.88 | $ | 58.00 | $ | — | $ | 60.67 | $ | 53.40 | $ | — | $ | — | ||||||||||||||
C-BASS Investment (millions) (3) |
$ | 430.1 | $ | 449.5 | $ | 442.9 | $ | 466.0 | $ | — | $ | — | $ | — | ||||||||||||||
Sherman Investment (millions) (3) |
$ | 124.9 | $ | 163.8 | $ | 138.2 | $ | 164.6 | $ | 104.1 | $ | 115.3 | $ | 129.2 | ||||||||||||||
GAAP loss ratio (insurance operations only) (4) |
55.7 | % | 63.0 | % | 60.8 | % | 76.7 | % | 187.6 | % | 400.6 | % | 200.2 | % | ||||||||||||||
GAAP expense ratio (insurance operations only) |
16.4 | % | 17.2 | % | 17.8 | % | 16.7 | % | 15.4 | % | 13.6 | % | 16.0 | % | ||||||||||||||
| (1) | Latest Quarter data not available due to lag in reporting | |
| (2) | Represents contractual aggregate loss limits and, at March 31, 2008, December 31, 2007 and December 30, 2006, respectively, for $4.0 billion, $4.1 billion and $4.4 billion of risk without such limits, risk is calculated at $475 million, $475 million and $473 million, the estimated amounts that would credit enhance these loans to a ‘AA’ level based on a rating agency model. | |
| (3) | Investments in joint ventures are included in Other assets on the Consolidated Balance Sheet. | |
| (4) | As calculated, does not reflect any effects due to premium deficiency. |