MGIC Investment Q4 Earnings Beat, Revenues Miss Estimates

MGIC Investment Corporation MTG reported fourth-quarter 2024 operating net income per share of 72 cents, which beat the Zacks Consensus Estimate by 10.8%. Moreover, the bottom line increased 10.2% year over year.See the Zacks Earnings Calendar to stay ahead of market-making news.The quarterly results reflected higher new insurance written, improved net investment income, and higher insurance in force.MGIC Investment recorded total operating revenues of $303.1 million, which increased 6.4% year over year on higher net investment income, net premiums earned and other revenues. The top line however missed the consensus mark by 1.1%.MGIC Investment Corporation Price, Consensus and EPS Surprise MGIC Investment Corporation price-consensus-eps-surprise-chart | MGIC Investment Corporation QuoteOperational UpdateInsurance in force increased 0.6% from the prior-year quarter to $295.4 billion. The Zacks Consensus Estimate was $294 billion. Our estimate was $293.6 billion.The insurer witnessed a 4.4% increase in primary delinquency to 26,791 loans.Net premiums written increased 5.9% year over year to $232.1 million. The figure was higher than our estimate of $231.1 million.Net investment income increased 6.1% year over year to $61.3 million. Our estimate was $66.9 million. The Zacks Consensus Estimate was pegged at $65 million.Persistency — the percentage of insurance remaining in force from one year prior — was 84.8% as of Dec. 30, 2024, down from 86.1% in the year-ago quarter.New insurance written was $15.9 billion, up 45.9% year over year.Total losses and expenses increased 23.3% year over year to $66.7 million.For the quarter under review, the loss ratio was 3.6% compared with negative 4.2% for the fourth quarter of 2023. Underwriting expense ratio was 20.8, marking an improvement of 380 basis points (bps) year over year.Financial UpdateBook value per share, a measure of net worth, increased 11.9% year over year to $20.82 as of Dec. 31, 2024.Shareholder equity was $5.3 billion as of Dec. 31, 2024, up 4.3% from 2023-end.MGIC Investment's PMIERs Available Assets totaled $6 billion, or $2.5 billion above its Minimum Required Assets as of Sept. 30, 2024.Assets were $6.7 billion as of Dec. 31, 2024, up 2.1% from 2023-end. Debt was $644 million as of Dec. 31, 2024, up 0.1% from the 2023-end level.Capital DeploymentThe company bought back 7.8 million shares in the fourth quarter for $193.3 million. MGIC Investment paid $200 million in dividends to the holding company and 13 cents per share to shareholders.In January, MTG repurchased an additional 3.5 million shares for $85.5 million.The board also declared a dividend of 13 cents per share to shareholders to be paid out on March 5, 2025, to shareholders of record as of Feb. 18, 2025.Zacks RankMTG currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Performance of Other InsurersThe Travelers Companies TRV reported fourth-quarter 2024 core income of $9.15 per share, which beat the Zacks Consensus Estimate by 39.3% and improved 30.5% year over year. Travelers’ total revenues increased 10.4% from the year-ago quarter to $11.9 billion. The top-line figure beat the Zacks Consensus Estimate by 1%.Net written premiums increased 7% year over year to a record $10.7 billion, driven by strong growth across all three segments. Our estimate was $10.8 billion. The Zacks Consensus Estimate was pegged at $926 million. TRV witnessed an underwriting gain of $1.4 billion, up 30.5% year over year. The consolidated underlying combined ratio of 84% improved 190 bps year over year.RLI Corp. RLI reported fourth-quarter 2024 operating earnings of 41 cents per share, which missed the Zacks Consensus Estimate by 14.5%. The bottom line decreased 46.8% from the prior-year quarter. Operating revenues for the reported quarter were $436 million, up 15.3% year over year, driven by higher net premiums earned and net investment income. The top line matched the Zacks Consensus Estimate.Gross premiums written increased 9% year over year to $473.2 million. This uptick can be attributed to the solid performance of the Casualty segment (up 18.3%). Our estimate was $550 million. Underwriting income of $22.2 million decreased 62.8% year over year. The combined ratio deteriorated 1,170 bps year over year to 94.4%. The Zacks Consensus Estimate for the metric was pegged at 96%, while our estimate was 102%.W.R. Berkley Corporation’s WRB fourth-quarter 2024 operating income of $1.13 per share beat the Zacks Consensus Estimate by 20.2%. The bottom line improved 17.7% year over year. Operating revenues were $3.5 billion, up 9.2% year over year. The top line beat the consensus estimate by 4.2%.W.R. Berkley’s net premiums written were $2.9 billion, up 8% year over year. The figure was lower than our estimate of $3 billion. The consolidated combined ratio (a measure of underwriting profitability) deteriorated 180 bps year over year to 90.2%. The Zacks Consensus Estimate was 91%.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report RLI Corp. (RLI): Free Stock Analysis Report MGIC Investment Corporation (MTG): Free Stock Analysis Report The Travelers Companies, Inc. (TRV): Free Stock Analysis Report W.R. Berkley Corporation (WRB): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks