MGIC Investment Corporation MTG reported third-quarter 2024 operating net income per share of 77 cents, which beat the Zacks Consensus Estimate by 15%. Moreover, the bottom line increased 20.3% year over year.

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The quarterly results reflected higher new insurance written and improved net investment income, partially offset by lower insurance in force.

MGIC Investment recorded total operating revenues of $306 million, which increased 3% year over year on higher net investment income, net premiums earned and other revenues. The top line matched the consensus mark.

Operational Update

Insurance in force decreased 0.5% from the prior-year quarter to $292.8 billion. The figure matched the Zacks Consensus Estimate as well as our estimate.

The insurer witnessed a 1.5% increase in primary delinquency to 25,089 loans.

Net premiums written decreased 0.2% year over year to $234 million. The figure was lower than our estimate of $237.3 million.

Net investment income increased 12.1% year over year to $62 million. Our estimate was $64.5 million. The Zacks Consensus Estimate was pegged at $64 million.

Persistency — the percentage of insurance remaining in force from one year prior — was 85.3%   as of Sept. 30, 2024, down from 86.3% in the year-ago quarter.

New insurance written was $17.2 billion, up 17.8% year over year.

Net underwriting and other expenses totaled $53.3 million, up 0.6% year over year.

For the quarter under review, the loss ratio was 4% compared with 0% for the third quarter of 2023.

Financial Update

Book value per share, a measure of net worth, increased 19% year over year to $20.66 as of Sept. 30, 2024.

Shareholder equity was $5.3 billion as of Sept. 30, 2024, up 4.3% from 2023-end.

MGIC Investment's PMIERs Available Assets totaled $6 billion, or $2.5 billion above its Minimum Required Assets as of Sept. 30, 2024.

Assets were $6.7 billion as of Sept. 30, 2024, up 2.1% from 2023-end. Debt was $644 million as of Sept. 30, 2024, up 0.1% from the 2023-end level.

Capital Deployment

The company bought back 5.2 million shares in the third quarter for $122.9 million. 

In the 12 months ended Sept. 30, 2024, MGIC Investment paid $650 million in dividends to the holding company.

In October, MTG repurchased an additional 2.9 million shares for $72.4 million.

The board also declared a dividend of 13 cents per share to shareholders to be paid on Nov. 21, 2024, to shareholders of record as of Nov. 7, 2024.

Zacks Rank

MGIC Investment currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Some Other Multi-Line Insurers

The Hartford Financial Services Group, Inc. HIG reported third-quarter 2024 adjusted operating earnings of $2.53 per share, which beat the Zacks Consensus Estimate by 1.6%. The bottom line increased 10.5% year over year. Operating revenues of HIG amounted to $4.7 billion, which improved 10.9% year over year in the quarter under review. The top line beat the consensus mark by 1.1%. Earned premiums of Hartford Financial rose 8% year over year to $5.7 billion in the third quarter but missed the Zacks Consensus Estimate by 0.4%. The metric was driven by a 10.7% and 1.6% year-over-year rise in P&C and Group Benefits’ earned premiums, respectively.

Pre-tax net investment income of $659 million grew 10% year over year and beat the consensus mark by 5.9%. Total benefits, losses and expenses increased 8.3% year over year to $5.8 billion in the quarter under review. Pretax income of $952 million increased 17.1% year over year in the third quarter.

Prudential Financial, Inc. PRU reported third-quarter 2024 adjusted operating income of $3.48 per share, which beat the Zacks Consensus Estimate by 0.2%. However, the bottom line decreased 3.8% year over year. Total revenues of $19.5 billion surged 94% year over year and beat the Zacks Consensus Estimate by 33.7%. Total benefits and expenses amounted to $17.8 billion, which doubled year over year in the third quarter. 

Prudential Global Investment Management’s (PGIM) adjusted operating income of $241 million in the reported quarter increased 14.2% year over year. The figure was higher than our estimate of $221.4 million. The Zacks Consensus Estimate was $223 million. PGIM assets under management of $1.400 trillion increased 15% year over year. The U.S. Businesses delivered an adjusted operating income of $1.108 billion, which increased 1.8% year over year. The figure was higher than both Zacks Consensus Estimate and our estimate of $1 billion. International Businesses adjusted operating income decreased 5.5% year over year to $766 million in the third quarter.

Everest Group, Ltd.’s EG third-quarter 2024 operating income of $14.62 per share missed the Zacks Consensus Estimate by 22.7%. The bottom line jumped 3.4% year over year. Everest Group’s total operating revenues of $4.3 billion climbed 6.5% year over year on higher premiums earned and net investment income. The top line however missed the consensus mark by 4.4%. 

Gross written premiums improved 0.8% year over year to $4.2 billion, driven by 1.7% growth in Reinsurance, partially offset by a 2.1% decline in Insurance. Our estimate was $5.3 billion. Net investment income was $496 million, which surged 22.2% year over year. Our estimate was $412 million. The Zacks Consensus Estimate was pegged at $478 million. Total claims and expenses rose 13.5% to $3.7 billion. Our estimate was $3.9 billion. Underwriting income was $272 million, which declined 9.6% year over year.

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