Thu, Jul. 16, 8:36 AM
- Q2 net income of $113.7M or $0.28 per share vs. $45.5M and $0.12 one year ago.
- New insurance written of $11.8B up 42% Y/Y. Insurance in force of $168.8B up 5.9%. Primary delinquent inventory of 66,357 loans down 22.3%. Annual persistency of 80.4% vs. 82.4%. Risk-to-capital ratio of 14.8:1 vs. 17.3:1.
- Percentage of loans delinquent, excluding bulk loans, of 5.48% vs. 7.3% one year ago.
- Losses incurred of $90.2M vs. $141.1M a year ago.
- Management expects full-year NIW to exceed that of 2014, but not as high of an amount as seen in H1. Full-year persistency is expected to be 80-85%. Delinquent inventory should gradually decrease. The company anticipates being in compliance with PMIERS when they become effective at year-end
- Conference call at 10 ET
- Previously: MGIC Investment beats by $0.05, misses on revenue (July 16)
- MTG flat premarket
Thu, Jul. 16, 7:03 AM
Wed, Jul. 15, 5:30 PM
Wed, Jul. 8, 8:09 AM
Mon, Jun. 29, 5:01 PM
- Manulife (NYSE:MFC) has the greatest sensitivity to rising rates of all the picks on the list, says Barclays, which also sees upside potential even before rate liftoff, particularly as the insurer deploys excess capital.
- The Street is underestimating MGIC Investment's (NYSE:MTG) earnings growth trajectory in a subnormalized loss environment.
- Nasdaq OMX (NASDAQ:NDAQ) remains a top pick thanks to: 1) attractive valuation; 2) recurring and diversified revenue base; 3) strong free cash flow supporting capital returns.
- Prologis (NYSE:PLD) has strong earnings growth and compelling valuation compared to net asset value.
- Citigroup (NYSE:C) should outperform its big-cap peers thanks to: 1) Finally meaningful capital deployment after this year's CCAR; 2) increased focus on execution in core markets; 3) big footprint in faster-growing emerging markets; 4) utilization of the $48B DTA; 5) continued reduction in Citi Holdings.
- Also making the list: Prudential Financial (NYSE:PRU) and SVB Financial (NASDAQ:SIVB).
- Source: StreetInsider
Mon, Jun. 8, 11:36 AM
Thu, May 14, 2:48 PM
- While the volume of new originations with PMI was flat in Q1 from a quarter earlier, private mortgage insurers wrote just $45.24B worth, down 5.3%, according to Inside Mortgage Finance. FHA and VA loans were up by 5.5% and 6%, respectively, over the same time frame.
- The private mortgage insurers' market share dipped to 35.2%, the second-straight quarterly decline, and off from a post-crash peak of 41.1%.
- The trend over the last few years has been for the FHA to lose market share, but the program saw a surge in refis in March, suggesting January's premium cut is taking effect.
- Watching closely: Radian (RDN +0.3%), MGIC Investment (MTG +1.6%), Essent Group (ESNT +1.4%), NMI Holdings (NMIH +1%).
Fri, May 8, 8:19 AM
Tue, Apr. 21, 7:27 AM
- Q1 net income of $133.1M or $0.32 per share vs. $60M and $0.15 one year ago.
- Net premiums written of $234.5M vs. $218M a year ago. New insurance written of $9B vs. $5.2B. Persistency of 81.6% vs. 81.1%.
- Primary insurance in force of $166.1B vs. $157.9B a year ago. Percentage of loans delinquent, excluding bulk loans, of 5.98% down from 7.92%.
- Losses incurred of $81.8M vs. $122.6M a year ago.
- Conference call at 10 ET
- Previously: MGIC Investment beats by $0.05, beats on revenue (April 21)
- MTG +1.45% premarket
Tue, Apr. 21, 7:03 AM
Mon, Apr. 20, 5:30 PM
Mon, Apr. 20, 8:31 AM
- Mortgage insurers fell post-market on Friday after the FHFA issued the final version of the Private Mortgage Insurer Eligibility Requirements that disappointed by not giving credit for any future premium income, says BTIG's Mark Palmer.
- Alongside that was the FHFA's announcement that g-fees would be kept at current levels vs. a hoped-for reduction.
- Nevertheless, with the uncertainly cloud removed, the stock's are higher in premarket action.
- MGIC Investment (NYSE:MTG) +1.9%, Radan (NYSE:RDN) +2.2%. Also taking note of the news: Genworth (NYSE:GNW), Essent Group (NYSE:ESNT), Old Republic (NYSE:ORI), and NMI Holdings (NASDAQ:NMIH)
Mon, Mar. 9, 4:29 PM
- The largest private mortgage insurer based on insurance in force with a market share of about 23%, Radian (NYSE:RDN) is particularly well-positioned to benefit from a potential upturn in the U.S. housing market, writes Mark Palmer, starting the stock at Buy with $22 price target.
- "The company’s operating results should improve as its legacy portfolio runs off, new business written post-2008 under more stringent underwriting standards becomes a larger portion of its total insured exposures, and the addition of new customers drives new insurance written."
- The $22 PT is 12x Palmer's 2017 EPS estmate of $1.85.
- For the same reasons, MGIC Investment (NYSE:MTG) is also started at Buy, and with $12 price target.
- The PT is 11.5x Palmer's 2017 EPS estimate of $1.05.
Mon, Mar. 9, 7:51 AM
Wed, Mar. 4, 3:34 PM
- "In our view, Radian's (RDN +1.1%) earnings and returns will improve over the next several years as its legacy portfolio becomes a smaller portion of its overall portfolio of risk," says MKM, initiating Radian Group (RDN +1.1%) with a Buy rating and $22 price target.
- "Since the credit crisis, the private mortgage insurance industry has become very attractive," says the team, noting home values are still on the rise, premium rates are nearly double that of pre-crisis, and required capital is up just 30-40%, even though they're likely to move higher following new FHFA rules.
- MKM also starts coverage on MGIC Investment (MTG -0.4%) with a Buy and Essent (ESNT +2.1%) with a Neutral.
- Previously: Essent Group higher after analyst upgrade (March 4)
Mon, Feb. 9, 9:06 AM
- January primary new insurance written of $2.9B vs. $1.7B a year ago. Ending primary delinquent inventory of 80,144 loans vs. 79,901 a month ago and 102,351 a year ago.
- The sequential rise in delinquencies is notable because they've been on a downward path for a number of years.
- Source: Press Release
- MTG flat premarket
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