MGIC Investment Corporation (MTG) has reported a 4.95 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $107.49 million, or $0.28 a share in the quarter, compared with $102.42 million, or $0.24 a share for the same period last year.
Revenue during the quarter grew 3.13 percent to $266.52 million from $258.43 million in the previous year period. Net premium earned for the quarter went up marginally by 2.41 percent or $11.27 million to $478.52 million.
Benefits, losses and expenses for the quarter were at $104.48 million, or 21.83 percent of premium earned from $149.43 million or 31.98 percent of premium earned in the last year period. Operating income for the quarter was $162.04 million, compared with $109 million in the previous year period.
Property and casualty insurance division has booked premium of $235.05 million on net basis during the quarter, up 3.92 percent or $8.86 million from year-ago period.
Net investment income was at $28.09 million for the quarter, up 0.60 percent or $0.17 million from year-ago period. The company has booked a loss on investments of $0.05 million in the quarter compared with a gain of $1.23 million for the previous year period.
Patrick Sinks, chief executive officer of MTG and its primary subsidiary Mortgage Guaranty Insurance Corporation ("MGIC") said, "I am pleased to report that in 2016 we achieved strong financial results and continued to position our company for further success. Specifically, our insurance in force continued to grow as we added $48 billion of high quality new insurance, the newer books of business continue to generate low levels of new delinquent notices, the legacy books continue to runoff, and we maintained our traditionally low expense ratio." Sinks continued, "In 2016 PMIERS went into effect and we officially complied with a comfortable margin, returned to investment grade, and resumed paying dividends to our holding company. At the holding company we took actions that eliminated 66 million potentially dilutive shares and improved our capital profile."
Assets, liabilities fall
Total assets decreased 2.28 percent or $133.81 million to $5,734.53 million on Dec. 31, 2016. On the other hand, total liabilities were at $3,185.69 million as on Dec. 31, 2016, down 12.29 percent or $446.52 million from year-ago.
Return on assets stood at 2.16 percent in the quarter, up 0.13 from 2.03 percent in the last year period. At the same time, return on equity was at 4.22 percent in the quarter, down 0.36 from 4.58 percent in the last year period.
Investments move up marginally
Investments stood at $4,692.35 million as on Dec. 31, 2016, up 0.62 percent or $29.14 million from year-ago. Meanwhile, yield on investments was almost stable at 0.60 percent in the quarter, when compared with the last year period.
Meanwhile, reinsurance recoverables moved up 13.50 percent or $6.01 million over the year to $50.49 million on Dec. 31, 2016.
Total debt was at $1,023.74 million as on Dec. 31, 2016, down 15.52 percent or $188.08 million from year-ago. Shareholders equity stood at $2,548.84 million as on Dec. 31, 2016, up 13.98 percent or $312.70 million from year-ago. As a result, debt to equity ratio went down 14 basis points to 0.40 percent in the quarter from 0.54 percent in the last year period.
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