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BRIEF: MGIC posts net loss in third quarter as revenue falls [Milwaukee Journal Sentinel]

By Paul Gores, Milwaukee Journal Sentinel
McClatchy-Tribune Information Services

Nov. 09--MGIC Investment Corp.'s third-quarter net loss widened as revenue fell and claims rose, the Milwaukee-based mortgage insurer said Friday.

MGIC posted a net loss of $246.9 million, or $1.22 per share, compared with a loss of $165.2 million, or 82 cents, in last year's third quarter.

Wall Street analysts polled by Yahoo Finance had expected, on average, a loss of 60 cents per share.

It was the ninth consecutive quarterly loss for the company, which has been hit hard by the housing slump and high unemployment. Mortgage insurers like MGIC pay lenders part of their costs when borrowers default on mortgage loans.

Total revenue in the quarter was $306.2 million, down 9% from $337.2 in last year's third quarter for MGIC, which is the nation's biggest private mortgage insurer.

Losses incurred, driven mainly by increases in claims, rose to $490.1 million from $462.7 million in the third quarter of 2011.

Among positive developments cited by MGIC: New insurance written in the quarter totaled $7 billion, up from $3.9 billion in the third quarter last year, and the percentage of delinquent loans fell to 14.51% from 15.85% at the same time last year.

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(c)2012 the Milwaukee Journal Sentinel

Visit the Milwaukee Journal Sentinel at www.jsonline.com

Distributed by MCT Information Services

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