Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Mortgage insurer MGIC Investment
So what: For the second quarter, operating EPS was -$0.86, compared to the -$0.11 consensus estimate, and GAAP EPS was -$0.75. The cost of claims from mortgage defaults increased 44% to $460 million while the number of "cures" (insured borrowers that caught up on their mortgage payments) dropped 24% to 35,832.
Now what: Revenue from insurance premiums fell 8% to $285 million, reflecting tighter loan standards. The ratio of claims and expenses to premium revenue increased markedly to 1.78, from 1.19 in the year-ago quarter. With the press release offering no reason for optimism in the next few years, it's no surprise the stocks of competitors Radian Group
Interested in more info on MGIC Investment? Add it to your watchlist by clicking here.