New Business Surges at MGIC, Defaults Sink

July 20--As quarterly earnings increased at MGIC Investment Corp., new business improved and the share of insured loans that were past due turned lower.

Income before income taxes at the Milwaukee-based mortgage insurance company worked out to $181 million during the three months ended June 30.

Earnings data, as well as other operational and financial performance metrics, were revealed by MGIC in its second-quarter 2017 earnings report.

Income improved compared to the previous three-month period, when MGIC earned $174 million. It was also better than $165 million in the year-earlier period.

New insurance written in the three months ended midyear 2017 was $12.9 billion. Business accelerated from $9.3 billion in the first-quarter 2017. There was hardly any difference, though, than the $12.6 billion written in the same quarter last year.

Full first-half insurance written worked out to $22.2 billion.

June 2017 finished with $187.3 billion insurance in force. The balance was $183.5 billion as of March 31, 2017, and $177.5 billion as of June 30, 2016.

As the second-quarter 2017 ended, delinquency was 4.11 percent including bulk loans. The rate retreated 40 basis points on a quarter-over-quarter basis and tumbled 44 BPS on a year-over-year basis.

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