MGIC Quarterly Statement (as of March 31, 2024)

STATEMENT AS OF MARCH 31, 2024 OF THE MORTGAGE GUARANTY INSURANCE CORPORATION

ASSETS

		Current Statement Date		4
	1	2		3	December 31
				Net Admitted Assets	Prior Year Net
	Assets	Nonadmitted Assets		(Cols. 1 - 2)	Admitted Assets
1. Bonds	............ 5,687,442,977	...................................	............	5,687,442,977	............ 5,734,253,459

2. Stocks:

	2.1 Preferred stocks		...................................	...................................	...................................	...................................
	2.2 Common stocks		447,767,122	3,344,045	444,423,077	390,929,536
3.	Mortgage loans on real estate:
	3.1 First liens	..................................................................................................		...................................	...................................	...................................	...................................
	3.2 Other than first liens	...................................	...................................	...................................	...................................
4.	Real estate:
	4.1 Properties occupied by the company (less $
	encumbrances)		10,991,402	...................................	10,991,402	11,119,349
	4.2 Properties held for	the production of income (less
	$		encumbrances)	...................................	...................................	...................................	...................................
	4.3 Properties held for sale (less $

	.......................................................................................encumbrances)		................... 1,207,079	...................................	................... 1,207,079	.......................394,934
5.	Cash ($	2,769,385 ), cash equivalents
	($	266,870,852	) and short-term
	investments ($	24,463,599 )	294,103,836	...................................	294,103,836	149,393,481
6.	Contract loans (including $	................................... premium notes)	...................................	...................................	...................................	...................................
7.	Derivatives			...................................	...................................	...................................	...................................
8.	Other invested assets		75,253	75,253	...................................	...................................
9.	Receivables for securities	...................................	...................................	...................................	...................................
10.	Securities lending reinvested collateral assets	...................................	...................................	...................................	...................................
11.	Aggregate write-ins for invested assets	...................................	...................................	...................................	...................................
12.	Subtotals, cash and invested assets (Lines 1 to 11)	6,441,587,669	3,419,298	6,438,168,371	6,286,090,759
13.	Title plants less $	charged off (for Title insurers
	only)			...................................	...................................	...................................	...................................
14.	Investment income due and accrued	49,630,554	...................................	49,630,554	49,943,291

15. Premiums and considerations:

15.1	Uncollected premiums and agents' balances in the course of collection	54,767,166	54,767,166	57,298,543
15.2	Deferred premiums, agents' balances and installments booked but
	...................................deferred and not yet due (including $
	earned but unbilled premiums)	...................................	...................................	...................................	...................................
15.3	Accrued retrospective premiums ($	) and
	contracts subject to redetermination ($	)	................................... ................................... ................................... ...................................

16. Reinsurance:

	16.1	Amounts recoverable from reinsurers	...................... 555,284	...................................	...................... 555,284	...................9,896,256
	16.2	Funds held by or deposited with reinsured companies	...................................	...................................	...................................	...................................
	16.3	Other amounts receivable under reinsurance contracts	...................................	...................................	...................................	...................................
17.	Amounts receivable relating to uninsured plans	...................................	...................................	...................................	...................................
18.1	....Current federal and foreign income tax recoverable and interest thereon	...................................	...................................	...................................	................... 4,032,280
18.2	...................................................................................Net deferred tax asset	................208,135,291	................123,445,566	................. 84,689,725	................. 80,418,229
19.	Guaranty funds receivable or on deposit	................................... ................................... ................................... ...................................
20.	Electronic data processing equipment and software	1,722,412	92,897	1,629,515	1,991,023

21. Furniture and equipment, including health care delivery assets

	($	)	................. 31,197,271	................. 31,197,271	...................................	...................................
22.	.........Net adjustment in assets and liabilities due to foreign exchange rates	...................................	...................................	...................................	...................................
23.	.....................................Receivables from parent, subsidiaries and affiliates	................. 16,881,018	...................................	................. 16,881,018	...................... 452,728
24.	Health care ($	) and other amounts receivable	...................................	...................................	...................................	...................................
25.	........................................Aggregate write-ins for other than invested assets	................121,763,822	................117,572,892	................... 4,190,930	................... 5,014,743
26.	Total assets excluding Separate Accounts, Segregated Accounts and
	Protected Cell Accounts (Lines 12 to 25)	............ 6,926,240,487	................275,727,924	............ 6,650,512,563	............ 6,495,137,852
27.	From Separate Accounts, Segregated Accounts and Protected Cell
	Accounts	...................................	...................................	...................................	...................................
28.	Total (Lines 26 and 27)		6,926,240,487	275,727,924	6,650,512,563	6,495,137,852
	DETAILS OF WRITE-INS
1101.	......................................................................................................................	....................................	....................................	....................................	....................................
1102.	......................................................................................................................	....................................	....................................	....................................	....................................
1103.	......................................................................................................................	....................................	....................................	....................................	....................................
1198.	...................Summary of remaining write-ins for Line 11 from overflow page	...................................	...................................	...................................	...................................
1199.	Totals (Lines 1101 through 1103 plus 1198)(Line 11 above)
2501.	Prepaid post retirement assets	.................................................................	................105,475,802	................105,475,802	...................................	...................................
2502.	Prepaid expenses
................. 12,097,090	................. 12,097,090	...................................	...................................
2503.	ILN expense premium	................... 3,906,604	...................................	................... 3,906,604	...................4,402,248
2598.	...................Summary of remaining write-ins for Line 25 from overflow page	...................... 284,326	...................................	...................... 284,326	...................... 612,495
2599.	Totals (Lines 2501 through 2503 plus 2598)(Line 25 above)	121,763,822	117,572,892	4,190,930	5,014,743

NOTE: We elected to use rounding in reporting amounts in this statement.

STATEMENT AS OF MARCH 31, 2024 OF THE MORTGAGE GUARANTY INSURANCE CORPORATION

LIABILITIES, SURPLUS AND OTHER FUNDS

					1	2
					Current	December 31,
					Statement Date	Prior Year
1.	Losses (current accident year $	49,830,491	)	................434,234,022	............... 440,861,484
2.	.......................................................................................Reinsurance payable on paid losses and loss adjustment expenses	........................ 95,902	........................ 48,136
3.	Loss adjustment expenses			................. 30,810,387	................. 31,025,024
4.	.............................................................................Commissions payable, contingent commissions and other similar charges	...................................	...................................
5.	...............................................................................................................Other expenses (excluding taxes, licenses and fees)		................. 32,388,246	................. 48,538,513
6.	...................................................................................Taxes, licenses and fees (excluding federal and foreign income taxes)	................... 3,551,177	................... 5,442,635
7.1	Current federal and foreign income taxes (including $ ................. (1,070,379) on realized capital gains (losses))	................... 9,709,605	...................................
7.2	Net deferred tax liability			...................................	...................................
8.	Borrowed money $	and interest thereon $	..............................................	...................................	...................................
9.	Unearned premiums (after deducting unearned premiums for ceded reinsurance of $	and
	including warranty reserves of $	and accrued accident and health experience rating refunds
	including $	...............................for medical loss ratio rebate per the Public Health Service Act)	................110,053,039	................117,343,278
10.	Advance premium			...................................	...................................
11.	Dividends declared and unpaid:
	11.1 Stockholders			...................................	...................................
	11.2 Policyholders			...................................	...................................
12.	........................................................................................Ceded reinsurance premiums payable (net of ceding commissions)	................. 25,501,708	................. 28,323,459
13.	..................................................................................................................Funds held by company under reinsurance treaties		...................................	...................................
14.	..............................................................................................Amounts withheld or retained by company for account of others	................... 8,627,510	...................6,499,955
15.	Remittances and items not allocated			...................... 498,139	...................... 186,680
16.	Provision for reinsurance (including $	...................................	certified)	...................................	...................................

17.	...................................................................................Net adjustments in assets and liabilities due to foreign exchange rates	...................................	...................................
18.	Drafts outstanding			...................................	...................................
19.	............................................................................................................................Payable to parent, subsidiaries and affiliates		...................................	...................2,859,802
20.	Derivatives			...................................	...................................
21.	Payable for securities			...................................	...................................
22.	Payable for securities lending			...................................	...................................
23.	......................................................................................................................Liability for amounts held under uninsured plans		...................................	...................................
24.	Capital notes $	and interest thereon $	.................................................	...................................	...................................
25.	Aggregate write-ins for liabilities			5,287,124,581	5,178,228,733
26.	Total liabilities excluding protected cell liabilities (Lines 1 through 25)	5,942,594,316	5,859,357,699
27.	Protected cell liabilities			...................................	...................................
28.	Total liabilities (Lines 26 and 27)			............ 5,942,594,316	............ 5,859,357,699
29.	............................................................................................................................Aggregate write-ins for special surplus funds		...................................	...................................
30.	Common capital stock			...................5,000,000	...................5,000,000
31.	Preferred capital stock			...................................	...................................
32.	...........................................................................................................Aggregate write-ins for other than special surplus funds		...................................	...................................
33.	Surplus notes			...................................	...................................
34.	.......................................................................................................................................Gross paid in and contributed surplus			................737,735,668	................737,735,668
35.	Unassigned funds (surplus)			152,764,520	80,626,426

36. Less treasury stock, at cost:

	........................36.1	58,915	shares common (value included in Line 30	...................$	2,945,750 )	................187,581,941	................187,581,941
	36.2	shares preferred (value included in Line 31	$	)
37.	Surplus as regards policyholders (Lines 29 to 35, less 36)		707,918,247	635,780,153
38.	Totals (Page 2, Line 28, Col. 3)			6,650,512,563	6,495,137,852
	DETAILS OF WRITE-INS
2501.	..........................................................................Contingency reserve per Wisconsin Administrative Code Section 3.09(14)	............ 5,266,015,628	............ 5,131,178,458
2502.	Liability for pension benefits		1,532,520	................. 24,930,074
2503.	Accrual for premium refunds	.....................................................................................................................................................................		18,500,000	................. 21,100,000
2598.	..............................................................................................Summary of remaining write-ins for Line 25 from overflow page		................... 1,076,433	...................1,020,201
2599.	Totals (Lines 2501 through 2503 plus 2598)(Line 25 above)			5,287,124,581	5,178,228,733
2901		....................................
2902		....................................
2903		....................................
2998.	..............................................................................................Summary of remaining write-ins for Line 29 from overflow page		...................................	...................................
2999.	Totals (Lines 2901 through 2903 plus 2998)(Line 29 above)
3201		....................................
3202		....................................
3203		....................................
3298.	..............................................................................................Summary of remaining write-ins for Line 32 from overflow page		...................................	...................................
3299.	Totals (Lines 3201 through 3203 plus 3298)(Line 32 above)

STATEMENT AS OF MARCH 31, 2024 OF THE MORTGAGE GUARANTY INSURANCE CORPORATION

STATEMENT OF INCOME

					1	2	3
					Current	Prior Year	Prior Year Ended
					Year to Date	to Date	December 31
		UNDERWRITING INCOME
1.	Premiums earned:
	1.1 Direct (written $	274,971,425	)	............... 282,261,664	................284,760,319	............ 1,136,664,171
	1.2 Assumed (written $	.............................................................................11,509 )	........................ 11,509	........................ 28,810	........................ 72,354
	1.3 Ceded (written $	44,819,334	)	................. 44,819,334	................. 46,806,307	............... 202,820,550
	1.4 Net (written $	230,163,600 )	.....................................................................................	................237,453,839	................237,982,822	................933,915,975
		DEDUCTIONS:
2.	Losses incurred (current accident year $	49,830,491	):
	2.1 Direct			9,062,556	9,455,408	................. (8,297,117)
	2.2 Assumed			(5,818)	(103,524)	.....................(255,030)
	2.3 Ceded			...................6,292,061	................... 4,558,253	................. 15,228,035
	2.4 Net			................... 2,764,677	................... 4,793,631	................(23,780,182)
3.	....................................................................................................Loss adjustment expenses incurred		................... 1,786,689	................... 1,743,734	................... 3,259,809
4.	.................................................................................................Other underwriting expenses incurred		................. 58,485,203	................. 69,930,227	............... 228,565,041
5.	Aggregate write-ins for underwriting deductions
134,837,170	134,821,484	................534,067,185
6.	Total underwriting deductions (Lines 2 through 5)	197,873,739	211,289,076	................742,111,853
7.	.............................................................................................................Net income of protected cells
8.	Net underwriting gain (loss) (Line 1 minus Line 6 + Line 7)	39,580,100	26,693,746	............... 191,804,122
		INVESTMENT INCOME
9.	Net investment income earned		57,335,344	52,590,570	................183,018,891
10.	Net realized capital gains (losses) less capital gains tax of $	(1,808,368)	(6,802,909)	(2,406,971)	(14,262,269)
11.	Net investment gain (loss) (Lines 9 + 10)		50,532,435	50,183,599	................168,756,622
		OTHER INCOME
12.	Net gain or (loss) from agents' or premium balances charged off (amount recovered
	$	.....................amount charged off $	(210,306) )	...................... 210,306	........................ 15,476	...................... 174,880
13.	......................................................................Finance and service charges not included in premiums	...................................	...................................	...................................
14.	Aggregate write-ins for miscellaneous income	...................................................................................	8,124
15.	Total other income (Lines 12 through 14)		218,430	15,476	174,880

16. Net income before dividends to policyholders, after capital gains tax and before all other federal

and foreign income taxes (Lines 8 + 11 + 15)

90,330,965

76,892,821

360,735,624

Dividends to policyholders ...................................................................................................................
Net income, after dividends to policyholders, after capital gains tax and before all other federal and

	foreign income taxes (Line 16 minus Line 17)	90,330,965	76,892,821	360,735,624
19.	Federal and foreign income taxes incurred	16,385,891	15,228,825	91,580,403
20.	Net income (Line 18 minus Line 19)(to Line 22)	73,945,074	61,663,996	269,155,221
	CAPITAL AND SURPLUS ACCOUNT
21.	Surplus as regards policyholders, December 31 prior year	635,780,153	921,117,625	921,117,625
22.	Net income (from Line 20)	73,945,074	61,663,996	269,155,221
23.	Net transfers (to) from Protected Cell accounts	...................................	...................................	...................................
24.	........................Change in net unrealized capital gains (losses) less capital gains tax of $	(3,488)	................. (6,546,015)	................. (7,225,638)	................. 10,362,764
25.	Change in net unrealized foreign exchange capital gain (loss)	...................................	...................................	...................................
26.	Change in net deferred income tax	................. (1,618,064)	.....................(129,991)	................. 13,996,613
27.	Change in nonadmitted assets	................... 5,689,539	................... 5,639,843	................. (8,871,063)
28.	Change in provision for reinsurance	...................................	...................................	...................................
29.	Change in surplus notes	...................................	...................................	...................................
30.	Surplus (contributed to) withdrawn from protected cells	...................................	...................................	...................................
31.	Cumulative effect of changes in accounting principles
...................................	...................................	...................................
32.	Capital changes:
	32.1 Paid in	...................................	...................................	...................................
	32.2 Transferred from surplus (Stock Dividend)	...................................	...................................	...................................
	32.3 Transferred to surplus	...................................	...................................	...................................

33. Surplus adjustments:

	33.1 Paid in	...................................	...................................	..............(273,066,528)
	33.2 Transferred to capital (Stock Dividend)
	...................................	...................................	...................................
	33.3 Transferred from capital	...................................	...................................	...................................
34.	Net remittances from or (to) Home Office	...................................	...................................	...................................
35.	Dividends to stockholders	...................................	...................................	.............. (326,933,472)
36.	Change in treasury stock	...................................	...................................	...................................
37.	Aggregate write-ins for gains and losses in surplus	667,560	6,847,093	30,018,993
38.	Change in surplus as regards policyholders (Lines 22 through 37)	72,138,094	66,795,303	(285,337,472)
39.	Surplus as regards policyholders, as of statement date (Lines 21 plus 38)	707,918,247	987,912,928	635,780,153
	DETAILS OF WRITE-INS
0501.	Contingency reserve contribution per Wisconsin Administrative Code Section Insurance
	3.09(14)	134,837,170	134,821,484	................534,067,185
0502	....................................	....................................	....................................
0503	....................................	....................................	....................................
0598.	Summary of remaining write-ins for Line 5 from overflow page
...................................	...................................	...................................
0599.	Totals (Lines 0501 through 0503 plus 0598)(Line 5 above)	134,837,170	134,821,484	534,067,185
1401.	Other revenue	8,124	...................................	...................................

1402
1403	....................................	....................................	....................................
1498.	Summary of remaining write-ins for Line 14 from overflow page
...................................	...................................	...................................
1499.	Totals (Lines 1401 through 1403 plus 1498)(Line 14 above)	8,124
3701.	SSAP 92 & SSAP 102 net funded status adjustments	667,560	6,847,093	................. 30,018,993
3702	....................................	....................................	....................................
3703	....................................	....................................	....................................
3798.	Summary of remaining write-ins for Line 37 from overflow page
...................................	...................................	...................................
3799.	Totals (Lines 3701 through 3703 plus 3798)(Line 37 above)	667,560	6,847,093	30,018,993

STATEMENT AS OF MARCH 31, 2024 OF THE MORTGAGE GUARANTY INSURANCE CORPORATION

CASH FLOW

Cash from Operations

Current Year

To Date

Prior Year

To Date

Prior Year Ended

December 31

1.	Premiums collected net of reinsurance	................227,273,226	............... 228,219,554	................903,548,252
2.	Net investment income	................. 61,555,300	................. 55,473,413	................208,901,035
3.	Miscellaneous income	218,430	15,476	174,880
4.	Total (Lines 1 to 3)	289,046,956	283,708,443	1,112,624,167
5.	Benefit and loss related payments	...................... 252,885	................. (8,789,810)	................. 22,254,750
6.	Net transfers to Separate Accounts, Segregated Accounts and Protected Cell Accounts	...................................	...................................	...................................
7.	...............................................Commissions, expenses paid and aggregate write-ins for deductions	................. 77,112,575	................. 87,732,658	................234,536,862
8.	Dividends paid to policyholders	...................................	...................................	...................................
9.	Federal and foreign income taxes paid (recovered) net of $	tax on capital
	gains (losses)	(192,611)	41,520,390	132,356,996
10.	Total (Lines 5 through 9)	77,172,849	120,463,238	389,148,608
11.	Net cash from operations (Line 4 minus Line 10)	211,874,107	163,245,205	723,475,559

Cash from Investments

12. Proceeds from investments sold, matured or repaid:

	12.1	Bonds	................175,897,678	................. 53,528,147	................565,584,572
	12.2	Stocks	...................................	...................................	...................................
	12.3	Mortgage loans	...................................	...................................	...................................
	12.4	Real estate	...................................	................... 1,086,715	................... 3,425,561
	12.5	Other invested assets	...................................	...................................	...................................
	12.6	Net gains or (losses) on cash, cash equivalents and short-term investments	............................... 97	............................(985)	..........................1,266
	12.7	Miscellaneous proceeds
	12.8 Total investment proceeds (Lines 12.1 to 12.7)	................175,897,775	................. 54,613,877	................569,011,399
13.	Cost of investments acquired (long-term only):
	13.1	Bonds	............... 201,215,924	................. 29,305,616	............... 915,124,040
	13.2	Stocks	...................... 418,552	...................................	...................................
	13.3	Mortgage loans	...................................	...................................	...................................
	13.4	Real estate	...................... 812,145	...................... 111,652	...................... 506,586
	13.5	Other invested assets	...................................	...................................	...................................
	13.6	Miscellaneous applications
	13.7	Total investments acquired (Lines 13.1 to 13.6)	202,446,621	29,417,268	915,630,626
14.	......................................................Net increase (or decrease) in contract loans and premium notes
15.	Net cash from investments (Line 12.8 minus Line 13.7 and Line 14)	(26,548,846)	25,196,609	(346,619,227)
		Cash from Financing and Miscellaneous Sources

16.	Cash provided (applied):
	16.1	Surplus notes, capital notes	...................................	...................................	...................................
	16.2	Capital and paid in surplus, less treasury stock	...................................	...................................	................(19,870,568)
	16.3	Borrowed funds	...................................	...................................	...................................
	16.4	Net deposits on deposit-type contracts and other insurance liabilities	...................................	...................................	...................................
	..........................................................................................................16.5 Dividends to stockholders	...................................	...................................	................326,933,472
	....................................................................................................16.6 Other cash provided (applied)	(40,614,906)	3,257,589	9,652,043
17.	Net cash from financing and miscellaneous sources (Line 16.1 through Line 16.4 minus Line 16.5
	plus Line 16.6)	(40,614,906)	3,257,589	(337,151,997)
	RECONCILIATION OF CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS
18.	.Net change in cash, cash equivalents and short-term investments (Line 11, plus Lines 15 and 17)	................144,710,355	................191,699,403	................. 39,704,335
19.	Cash, cash equivalents and short-term investments:
	19.1	Beginning of year	................149,393,481	............... 109,689,146	............... 109,689,146
	19.2 End of period (Line 18 plus Line 19.1)	294,103,836	301,388,549	149,393,481

Note: Supplemental disclosures of cash flow information for non-cash transactions:

20.0001.	...........................Line 2 Net investment income - Dividend received/Dividend to Parent, net	................... 3,105,456	...................6,458,862	................... 8,547,364
20.0002.	Line 12.1 Bonds - Retuof capital to Parent	...................................	...................................	................251,107,458
20.0003.	LIne 13.1	Bonds - Dividend from Subsidiary	3,105,456	...................6,458,862	...................6,458,862
20.0004.	Line 16.2	Capital and paid in surplus - Retuof capital to Parent	...................................	...................................	................253,195,960
20.0005.	Line 12.1	Bonds - Capital contributed to subsidiary	59,581,448	...................................	...................................
20.0006.	Line 13.2	Stocks - Capital contributed to subsidiary	................. 59,581,448	...................................	...................................

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NOTES TO FINANCIAL STATEMENTS

1. Summary of Significant Accounting Policies and Going Concern

Accounting Practices
The financial statements of Mortgage Guaranty Insurance Corporation ("MGIC") are presented on the basis of accounting practices prescribed or permitted by the Office of the Commissioner of Insurance of the State of Wisconsin ("OCI"). The OCI recognizes only statutory accounting practices prescribed or permitted by the State of Wisconsin for determining and reporting the financial condition and results of operations of an insurance company, for determining its solvency under the Wisconsin insurance law. The National Association of Insurance Commissioners' ("NAIC") Accounting Practices and Procedures Manual ("NAIC SAP") has been adopted as a component of prescribed practices by the OCI. The OCI has adopted certain prescribed accounting practices that differ from those found in NAIC SAP. Specifically, Wisconsin domiciled companies record changes in the contingency reserve through the income statement as an underwriting deduction. In NAIC SAP, changes in the contingency reserve are recorded directly to unassigned surplus. The OCI has the right to permit other specific practices that deviate from prescribed practices. A reconciliation of our net income and capital and surplus between the NAIC SAP and practices prescribed by the OCI is shown below:

	SSAP #	F/S Page	F/S Line #			2024		2023
NET INCOME
(1) MGIC state basis (Page 4, Line 20, Columns 1 & 2)	XXX	XXX	XXX	$	73,945,074	$	269,155,221

State Prescribed Practices that are an increase/(decrease) from NAIC SAP

Change in contingency reserve	00	4	5		(134,837,170)			(534,067,185)
(3)	State Permitted Practices that are an increase/(decrease)					-			-
from NAIC SAP
(4) NAIC SAP (1-2-3=4)	XXX	XXX	XXX	$	208,782,244	$	803,222,406
SURPLUS

(5)	MGIC state basis (Page 3, Line 37, Columns 1 & 2)	XXX	XXX	XXX	$	707,918,247	$	635,780,153
(6)	State Prescribed Practices that are an increase/(decrease)					-			-
from NAIC SAP
(7)	State Permitted Practices that are an increase/(decrease)					-			-
from NAIC SAP
(8) NAIC SAP (5-6-7=8)	XXX	XXX	XXX	$	707,918,247	$	635,780,153

Use of Estimates in the Preparation of the Financial Statements - no significant changes
Accounting Policy
1. No significant changes
2. Generally, bonds are stated at amortized cost and are amortized using the modified scientific method in accordance with SSAP No. 26R, Bonds ("SSAP No. 26R"). We do not own any mandatory convertible securities or SVO-identified investments identified in SSAP No. 26R.
3. - (5) No significant changes

Loan-backedsecurities are valued using the retrospective or prospective method and stated at amortized cost or fair value in accordance with their NAIC designation.
- (10) No significant changes

Case reserves and loss adjustment expenses ("LAE") reserves are established when notices of delinquency on insured mortgage loans are received. Such loans are referred to as being in our delinquency inventory. For reporting purposes, we consider a loan delinquent when it is two or more payments past due and has not become current or resulted in a claim payment. Consistent with industry standards for mortgage insurers, we do not establish case reserves for future claims on insured loans which are not currently delinquent. Case reserves are established by estimating the number of loans in our delinquency inventory that will result in a claim payment, which is referred to as the claim rate, and further estimating the amount of the claim payment, which is referred to as claim severity. Our case reserve estimates are primarily established based upon historical experience, including rescissions of policies, curtailments of claims, and loan modification activity. Adjustments to reserve estimates are reflected in the financial statements in the years in which the adjustments are made. The liability for reinsurance assumed is based on information provided by the ceding companies.
Incurred but not reported ("IBNR") reserves are established for estimated losses from delinquencies we estimate have occurred prior to the close of an accounting period but have not yet been reported to us. Consistent with reserves for reported delinquencies, IBNR reserves are also established using estimated claim rates and claim severities.
LAE reserves are established for the estimated costs of settling claims, including legal and other expenses and general expenses of administering the claims settlement process.
Loss reserves are ceded to reinsurers under our reinsurance agreements.
Estimation of losses is inherently judgmental. Even in a stable environment, changes to our estimates could result in a material impact to our results of operations and financial position. The conditions that affect the claim rate and claim severity include the current and future state of the domestic economy, including unemployment and the current and future strength of local housing markets; exposure on insured loans; the amount of time between delinquency and claim filing (all else being equal, the longer the period between delinquency and claim filing, the greater the severity); and curtailments and rescissions. The actual amount of the claim payments may be substantially different than our loss reserve estimates. Our estimates could be adversely affected by several factors, including a deterioration of regional or national economic conditions, including unemployment, leading to a reduction in borrowers' income and thus their ability to make mortgage payments, the impact of past and future government initiatives and actions taken by Fannie Mae and Freddie Mac ("the GSEs") (including mortgage forbearance programs and foreclosure moratoriums), and a drop in housing values which may affect some borrowers willingness to continue to make mortgage payments when the value of the home is below the mortgage balance. Loss reserves in future periods will also be dependent on the number of loans reported to us as delinquent.
Changes to our estimates could result in a material impact to our results of operations and financial position, even in a stable economic environment. Given the uncertainty of the macroeconomic environment, including the effectiveness of loss mitigation efforts, change in home prices, and changes in unemployment, our loss reserve estimates may continue to be impacted.
- (13) No significant changes D. Going Concern

Based upon its evaluation of relevant conditions and events, management does not have substantial doubt about our ability to continue as a going concern.

Accounting Changes and Corrections of Errors - not applicable
Business Combinations and Goodwill - not applicable
Discontinued Operations - not applicable
Investments
1. Mortgage Loans, including Mezzanine Real Estate Loans - not applicable
2. Debt Restructuring - not applicable
3. Reverse Mortgages - not applicable
4. Loan-BackedSecurities
5. 1. Prepayment assumptions for mortgage-backed/loan-backed and structured securities were obtained from third-party data sources.
  2. We did not recognize any other-than-temporary impairments ("OTTI") in the current reporting period.
  3. We do not currently hold any securities for which an OTTI has been recognized.

Ｖ

All impaired securities for which an OTTI has not been recognized in earnings as a realized loss: a. The aggregate amount of unrealized losses:

1.	Less than 12 months	$	2,997,594
2.	12 months or longer	$	20,115,224

The aggregate related fair value of securities with unrealized losses:
1. Less than 12 months $ 123,956,265

2. 12 months or longer $ 359,716,909

1. 1. All loan-backed and structured securities in an unrealized loss position were reviewed for potential OTTIs; however, we have the intent and ability to hold these securities long enough to recover our cost basis. Cash flow analysis and credit research were used to support the conclusion that impairments are not other-than-temporary. The unrealized losses were primarily caused by an increase in prevailing interest rates.
2. Dollar Repurchase Agreements and/or Securities Lending Transactions - not applicable
3. Repurchase Agreements Transactions Accounted for as Secured Borrowing - not applicable
4. Reverse Repurchase Agreements Transactions Accounted for as Secured Borrowing - not applicable
5. Repurchase Agreements Transactions Accounted for as a Sale - not applicable
6. Reverse Repurchase Agreements Transactions Accounted for as a Sale - not applicable
7. Real Estate - no significant changes
8. Low-IncomeHousing Tax Credits ("LIHTC") - not applicable
9. Restricted Assets - no significant changes
10. Working Capital Finance Investments - not applicable
11. Offsetting and Netting of Assets and Liabilities - not applicable
12. 5GI Securities - not applicable
13. Short Sales - not applicable
14. Prepayment Penalty and Acceleration Fees - no significant changes
15. Reporting Entity's Share of Cash Pool by Asset Type - not applicable
Joint Ventures, Partnerships and Limited Liability Companies - no significant changes
Investment Income - not applicable
Derivative Instruments - not applicable
Income Taxes - no significant changes
Information Concerning Parent, Subsidiaries, Affiliates and Other Related Parties
1. For the three months ended March 31, 2024, we have had the following significant transactions with related parties:
2. 1. On February 28, 2024, we contributed $60 million of capital to our subsidiary, MGIC Assurance Corporation.
  2. On March 25, 2024, MGIC Indemnity Corporation, a subsidiary of ours, paid us an $11.5 million ordinary dividend. The dividend received consisted of cash and investment securities.
3. Transactions with a related party who is not reported on Schedule Y - not applicable
4. No significant changes
5. No significant changes
6. Guarantees and Undertakings - not applicable
7. No significant changes
8. Upstream Intermediate Company - not applicable
9. Investments in SCA Exceeding 10% of Admitted Assets - not applicable
10. Investment in Impaired SCA - not applicable
11. Investment in Foreign Insurance Subsidiary - not applicable
12. Investment in Downstream Non-insurance Holding Company - not applicable
13. All SCA Investments - no significant changes
14. Investment in Insurance SCAs - no significant changes
15. SCA and SSAP No. 48 Entity Loss Tracking - not applicable
Debt
1. Not applicable
2. FHLB (Federal Home Loan Bank) Agreements
3. 1. We are a member of the Federal Home Loan Bank ("FHLB") of Chicago. Through our membership, we can conduct business activity (borrowings) with the FHLB. As of March 31, 2024, we have determined our estimated maximum borrowing capacity to be $2,323,984,478 which represents the value of eligible collateral. We had no borrowings outstanding with the FHLB as of March 31, 2024 or December 31, 2023.
  2. FHLB Capital Stock a. Aggregate Totals

1	2	3
Total	General	Protected Cell
2+3	Account	Accounts

1 Current Year

(a)	Membership Stock - Class A	$	-	$	-	$	-
(b)	Membership Stock - Class B		-		-		-
(c)	Activity Stock		850,000		850,000		-
(d)	Excess Stock		-		-		-
(e)	Aggregate Total (a+b+c+d)	$	850,000	$	850,000	$	-

Actual or estimated Borrowing Capacity

	as Determined by the Insurer	$	2,323,984,478		XXX		XXX
2 Prior Year-end
(a)	Membership Stock - Class A	$	-	$	-	$	-
(b)	Membership Stock - Class B		-		-		-
(c)	Activity Stock		850,000		850,000		-
(d)	Excess Stock		-		-		-
(e)	Aggregate Total (a+b+c+d)	$	850,000	$	850,000	$	-

Actual or estimated Borrowing Capacity

as Determined by the Insurer

$ 2,253,318,177

XXX

b. Membership Stock (Class A and B) Eligible and Not Eligible for Redemption - not applicable
Collateral Pledged to FHLB - not applicable
Borrowing from FHLB - not applicable

ＶＮＱ

12. Retirement Plans, Deferred Compensation, Postemployment Benefits and Compensated Absences and Other Postretirement Benefit Plans A. Defined Benefit Plan

(1) - (3) In March 2024, we contributed $23 million to the defined benefit pension plan.

Components of net periodic benefit cost

		Pension Benefits			Postretirement Benefits
		3/31/2024			12/31/2023			3/31/2024	12/31/2023
a. Service cost	$	-	$	-	$	417,096	$	1,496,553
b. Interest cost		3,247,078			13,787,129			375,152	1,632,963
c. Expected retuon plan assets		(3,644,115)			(13,517,091)			(2,493,570)	(8,234,545)
d. Transition asset or obligation		-			-			-	-
e. Gains and losses		531,371			2,220,196			(403,422)	(249,237)
f. Prior service cost or credit		86,325			345,300			453,289	1,861,117
g. Gain or loss recognized due to a settlement or curtailment		-			9,853,227			-	-
h. Total net periodic benefit cost	$	220,659	$	12,688,761	$	(1,651,455)	$	(3,493,149)

- (18) No significant changes B.- I. No significant changes

13. Capital and Surplus, Dividend Restrictions and Quasi-Reorganizations

No significant changes
No significant changes
The maximum amount of dividends which can be paid by State of Wisconsin insurance companies to shareholders is subject to restrictions relating to statutory surplus and income.
We paid no dividends during the three months ended March 31, 2024.
No significant changes
The substantial majority of our new insurance written ("NIW") has been for loans purchased by the GSEs. The current private mortgage insurer eligibility requirements ("PMIERs") of the GSEs include financial requirements, as well as business, quality control and certain transactional approval requirements. The financial requirements of the PMIERs require a mortgage insurer's "Available Assets" (generally only the most liquid assets of an insurer) to equal or exceed its "Minimum Required Assets" (which are based on an insurer's book of risk in force, calculated from tables of factors with several risk dimensions). Based on our application of the PMIERs, as of March 31, 2024, our Available Assets are in excess of our Minimum Required Assets; and we are in compliance with the PMIERs and eligible to insure loans purchased by the GSEs.
The insurance laws of 16 jurisdictions, including Wisconsin, our domiciliary state, require a mortgage insurer to maintain a minimum amount of statutory capital relative to the risk in force (or a similar measure) in order for the mortgage insurer to continue to write new business. We refer to these requirements as the "State Capital Requirements" and together with the GSE Financial Requirements, the "Financial Requirements." While they vary among jurisdictions, the most common State Capital Requirements allow for a maximum risk-to-capital ratio of 25 to 1. A risk-to-capital ratio will increase if (i) the percentage decrease in capital exceeds the percentage decrease in insured risk, or (ii) the percentage increase in capital is less than the percentage increase in insured risk. Wisconsin does not regulate capital by using a risk-to-capital measure but instead requires a minimum policyholder position ("MPP"). The "policyholder position" of a mortgage insurer is its net worth or surplus, and its contingency reserve.
At March 31, 2024, our risk-to-capital ratio was 9.8 to 1, below the maximum allowed by the jurisdictions with State Capital Requirements, and our policyholder position was $3.8 billion above the required MPP of $2.2 billion. The calculation of our risk-to-capital ratio and MPP reflect credit for the risk ceded under our reinsurance transactions. If we are not allowed an agreed level of credit under either the State Capital Requirements or the financial requirements of the PMIERs, we may terminate the reinsurance transactions without penalty.

G.- M. No significant changes

Liabilities, Contingencies and Assessments A.- F. Not applicable
1. All Other Contingencies
  We operate in a highly regulated industry that is subject to the risk of litigation and regulatory proceedings, including related to our claims paying practices. From time to time, we are involved in disputes and legal proceedings in the ordinary course of business. In our opinion, based on the facts known at this time, the ultimate resolution of these ordinary course disputes and legal proceedings will not have a material adverse effect on our financial position or results of operations.
  Under SSAP 5R, until a loss associated with settlement discussions or legal proceedings becomes probable and can be reasonably estimated we do not accrue an estimated loss. When we determine that a loss is probable and can be reasonably estimated, we record our best estimate of our probable loss. In those cases, until settlement negotiations or legal proceedings are concluded (including the receipt of any necessary GSE approvals), it is possible that we will record an additional loss.
Leases - no significant changes
Information About Financial Instruments with Off-Balance Sheet Risk and Financial Instruments with Concentrations of Credit Risk - not applicable
Sale, Transfer and Servicing of Financial Assets and Extinguishments of Liabilities - not applicable
Gain or Loss to the Reporting Entity from Uninsured Plans and the Uninsured Portion of Partially Insured Plans - not applicable
Direct Premium Written/Produced by Managing General Agents/Third Party Administrators - not applicable

ＶＮＲ

20. Fair Value Measurement

A. Assets and Liabilities Measured and Reported at Fair Value

Fair Value Measurements at Reporting Date
We applied the following fair value hierarchy in order to measure fair value for assets and liabilities: Level 1 - Quoted prices for identical instruments in active markets that we can access.
Level 2 - Quoted prices for similar instruments in active markets that we can access; quoted prices for identical or similar instruments in markets that are not active; and inputs, other than quoted prices, that are observable in the marketplace for the instrument. The observable inputs are used in valuation models to calculate the fair value of the instruments.
Level 3 - Valuations derived from valuation techniques in which one or more significant inputs or value drivers are unobservable. The inputs used to derive the fair value of Level 3 securities reflect our own assumptions about the assumptions a market participant would use in pricing an asset or liability.
Fair value measurements at reporting date:

		(Level 1)			(Level 2)			(Level 3)			Net Asset Value		Total
								(NAV)
a. Assets at fair value
Bonds - US Special Revenues Issuer	$	-	$	650,187	$	-	$	-	$	650,187
Obligations
Cash equivalents - Money market		251,744,065			-			-			-		251,744,065
mutual funds
Real estate acquired through claim		-			-			1,207,079			-		1,207,079
settlement
Total assets at fair value	$	251,744,065	$	650,187	$	1,207,079	$	-	$	253,601,331
b. Liabilities at fair value	$	-		$	-		$	-		$	-	$	-
Total liabilities at fair value	$	-	$	-	$	-	$	-	$	-

Fair Value Measurements in (Level 3) of the Fair Value hierarchy

		Beginning				Transfers	Total gains	Total gains										Ending
			Transfers		and (losses)	and (losses)
Description		Balance at			out of	included in	included in		Purchases		Issuances		Sales	Settlements	Balance at
01/01/2024	into Level 3		Level 3	Net Income		Surplus					3/31/2024
a. Assets
Real estate acquired
through claim	$	394,934	$	-	$	-	$	(172,964)	$	-	$	985,109	$	-	$	-	$	-	$	1,207,079
settlement
Total Assets	$	394,934	$	-	$	-	$	(172,964)	$	-	$	985,109	$	-	$	-	$	-	$	1,207,079
b. Liabilities	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Total Liabilities	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

1. Policy on Transfers Into and Out of Level 3
  At the end of each reporting period, we evaluate whether or not any event has occurred, or circumstances have changed that would cause a security to be transferred into or out of Level 3. During the period ended March 31, 2024, there were no transfers into or out of Level 3.
2. Inputs and Techniques Used for Level 2 and 3 Fair Values
  We use independent pricing sources to determine the fair value of our financial instruments, which primarily consist of assets in our bond portfolio, but also includes amounts in cash and cash equivalents and restricted cash and cash equivalents. A variety of inputs are used; in approximate order of priority, they are: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, bids, offers, and reference data including market research publications. Market indicators, industry and economic events are also considered. This information is evaluated using a multidimensional pricing model. This model combines all inputs to arrive at a value assigned to each security. Quality controls are performed by the independent pricing sources throughout this process, which include reviewing tolerance reports, trading information, data changes, and directional moves compared to market moves.
  On a quarterly basis, we perform quality controls over values received from the pricing sources which also include reviewing tolerance reports, data changes, and directional moves compared to market moves. We have not made any adjustments to the prices obtained from the independent pricing sources.
  To determine the fair value of financial instruments in Level 1 and 2 of the fair value hierarchy, independent pricing sources, as described above, have been used. One price is provided per security based on observable market data. To ensure securities are appropriately classified in the fair value hierarchy, we review the pricing techniques and methodologies of the independent pricing sources and believe that their policies adequately consider market activity, either based on specific transactions for the issue valued or based on modeling of securities with similar credit quality, duration, yield and structure that were recently traded.
  Our non-financial assets that are classified as Level 3 securities consist of real estate acquired through claim settlement. Real estate acquired through claim settlement is valued at the lower of our acquisition cost or a percentage of the appraised value. The percentage applied to the appraised value is based upon our historical sales experience adjusted for current trends.
Other Fair Value Disclosures - not applicable
Aggregate Fair Value for All Financial Instruments
The following tables set forth the aggregate fair values, admitted asset values and level of fair value amounts for financial instruments held as of March 31, 2024 and December 31, 2023:

	Aggregate Fair	Admitted Asset							Net Asset	Not Practicable
March 31, 2024		Level 1	Level 2		Level 3			(Carrying
Value	Value				Value (NAV)		Value)
Bonds	$ 5,381,041,197	$ 5,687,442,977	$	850,978,309	$ 4,530,062,888	$	-	$	-	$	-
Common stocks	850,000	850,000		-	850,000		-		-		-
Short-term investments	24,460,011	24,463,599		1,950,791	22,509,220		-		-		-
Cash equivalents	266,870,861	266,870,852		265,824,180	1,046,681		-		-		-
	Aggregate Fair	Admitted Asset							Net Asset	Not Practicable
December 31, 2023		Level 1	Level 2		Level 3			(Carrying
Value	Value				Value (NAV)		Value)
Bonds	$ 5,435,312,848	$ 5,734,253,459	$	844,036,630	$ 4,591,276,218	$	-	$	-	$	-
Common stocks	850,000	850,000		-	850,000		-		-		-
Short-term investments	19,413,834	19,403,994		1,860,009	17,553,825		-		-		-
Cash equivalents	130,501,337	130,501,277		130,285,474	215,863		-		-		-

ＶＮＳ

Our common stocks are comprised solely of FHLB stock, which must be held in connection with our FHLB membership. The fair value of the common stock, which can only be redeemed or sold at par value to the security issuer, is most readily determined by transactions of identical or similar securities of the issuer at par value, which falls within the Level 2 fair value hierarchy. See Note 20A(4) for the determination of the fair value of Level 1 and Level 2 financial instruments.

1. Not Practicable to Estimate Fair Value - not applicable
Other Items
1. Unusual or Infrequent Items - not applicable
2. Troubled Debt Restructuring: Debtors - not applicable
3. Other Disclosures - not applicable
4. Business Interruption Insurance Recoveries - not applicable
5. State Transferable and Non-transferrable Tax Credits - not applicable
6. Subprime-Mortgage-RelatedRisk Exposure - no significant changes
7. Insurance-LinkedSecurities (ILS) Contracts
  In January 2024, we exercised our optional call feature to terminate the reinsurance agreement with Home Re 2020-1, Ltd. In connection with the termination, the insurance linked notes issued by Home Re 2020-1, Ltd. were redeemed in full. As of March 31, 2024, we have six ILS contracts outstanding as a Ceding Issuer, with aggregate maximum proceeds of $1,098.1 million.
8. The Amount That Could Be Realized on Life Insurance Where the Reporting Entity is Owner and Beneficiary or Has Otherwise Obtained Rights to Control the Policy - not applicable
Events Subsequent
We have considered subsequent events through May 8, 2024.
We paid an extraordinary dividend of $350 million to our Parent, MGIC Investment Corporation, on April 26, 2024.
Reinsurance
We utilize quota share reinsurance ("QSR") transactions and excess of reinsurance transactions to manage our exposure to losses resulting from our mortgage guaranty insurance policies and to provide reinsurance capital credit under the PMIERs. A description of the transaction executed covering NIW for 2024 follows:
2024 QSR Transaction
We executed a 30% QSR Transaction with a group of unaffiliated reinsurers for a reinsurance transaction with an effective date of January 1, 2024 with similar structures to our existing QSR transactions that will cover most of our NIW in 2024. Under this transaction, we will cede losses and premiums through December 31, 2035 for eligible 2024 NIW, at which time the agreement expires. Early termination of the agreement can be elected by us effective December 31, 2027, and semi- annually thereafter, for a fee. Generally, we will receive an annual profit commission provided the annual loss ratio on the loans covered under the transaction remains below 56%. Under this transaction, we have the option, for a fee, to reduce the quota share percentage from the original quota share percentage to 23% or 15%. We can elect to reduce the quota share percentage beginning on December 31, 2027, and semi-annually thereafter.
A.- K. No significant changes
Retrospectively Rated Contracts & Contracts Subject to Redetermination - not applicable
Change in Incurred Losses and Loss Adjustment Expenses
1. Reserves as of December 31, 2023 were $472 million. As of March 31, 2024, $11 million has been paid for incurred losses and loss adjustment expenses attributable to insured events of prior years. Reserves remaining for prior years are now $412 million as a result of re-estimation of unpaid claims and claim adjustment expenses. Therefore, there has been $49 million of favorable prior year development from December 31, 2023 to March 31, 2024 on previously received delinquencies. The decrease is generally the result of ongoing analysis of recent loss development trends. Original estimates are increased or decreased as additional information becomes known. Our estimate of premiums to be refunded on expected claim payments is accrued for separately. Changes in the liability affect premiums written and earned.
2. Not applicable
Inter-companyPooling Arrangements - not applicable
Structured Settlements - not applicable
Health Care Receivables - not applicable
Participating Policies - not applicable
Premium Deficiency Reserves - no significant changes
High Deductibles - not applicable
Discounting of Liabilities for Unpaid Losses or Unpaid Loss Adjustment Expenses - not applicable
Asbestos/Environmental Reserves - not applicable
Subscriber Savings Accounts - not applicable
Multiple Peril Crop Insurance - not applicable
Financial Guaranty Insurance - not applicable

ＶＮＴ

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MGIC Investment Corporation published this content on 13 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 May 2024 14:39:14 UTC.