MGIC Investment Corp. (NYSE:MTG) has recently released its operating statistics for the month of August 2015, reporting a year-over-year improvement in company business. MGIC has reported an influx of business, worth $4 billion in August alone. The figures were up by 14.3% in year-over-year analysis, but 11% down, when compared to previous months. Additionally, the company also revealed that it would be present at the “Barclay’s Global Financial Services Conference”. The company CEO, Patrick Sinks, would deliver a presentation about the company and its business plans.
The most important highlight of the operating statistics was the decline in delinquent loans. Such loans declined by 23% year-over-year and 2% as compared to the previous month. The statistics also revealed that MGIC currently has $164.9 billion issued in insurance. The financial situation of the company has improved significantly, since the financial crisis of 2008. The declining delinquencies have been the key to the company’s improving financials. Furthermore, additional assistance has also been gained from the declining number of claims.
The operating statistics for 2014 showed a spike of 12% in new business, while the rate of claims declined by 2% for the same year. Additionally, 2014 was also the first profitable year for the company since 2006. MGIC also reported a net income of $251.9 million in 2014, as it market share increased by 2.5%.
A number of analysts believe that the company would grow to be even more profitable, since a number of market factors point towards growth in the insurance sector. The main market for the company would be housing insurance. As housing becomes more affordable, the market would see tilt towards mortgage insurers. It is expected that new business for the current year would be between $1.2 and $1.3 trillion, with a further 14% increase in 2016. Furthermore, since the company has been targeting customers with a strong credit rating, it is less probable to suffer a high rate of delinquencies.
MGIC Investment Corp. (NYSE:MTG) closed at a share value of $10.26, after experiencing an increase of 0.79% in its share value.
