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MGIC Investment Corporation: Fourth Quarter Highlights

MGIC Investment Corporation (NYSE: MTG) has recently announced its impressive financial results for the fourth quarter of 2024, revealing a net income of $184.7 million, translating to $0.72 per diluted share. This marks a significant accomplishment for the corporation as it wraps up yet another successful year. Moreover, the company reported an adjusted net operating income of $184.5 million, which also amounts to $0.72 per diluted share.

For the entire year of 2024, MGIC reported net income amounting to $763.0 million, or $2.89 per diluted share, showcasing steady growth compared to previous years. The company also noted an adjusted net operating income of $768.5 million, or $2.91 per diluted share.

Tim Mattke, the CEO of MGIC, expressed his optimism about the company’s future endeavors, stating, "As we close another year on a high note with strong financial results in the fourth quarter while returning meaningful capital to our shareholders, I am looking forward to the opportunities that lie before us in the new year."

Financial Metrics Overview

The following summarizes the key financial metrics from MGIC's results for Q4 2024 compared to earlier quarters:

• - Net Income: Q4 2024: $184.7 million; Q3 2024: $200.0 million; Q4 2023: $184.5 million.
• - Net Income Per Diluted Share: Q4 2024: $0.72; Q3 2024: $0.77; Q4 2023: $0.66.
• - Adjusted Net Operating Income: Q4 2024: $184.5 million; Q3 2024: $200.7 million; Q4 2023: $187.6 million.
• - New Insurance Written (billions): Q4 2024: $15.9 billion; Q3 2024: $17.2 billion; Q4 2023: $10.9 billion.

Strong Capital Management

During this quarter, MGIC showcased its commitment to shareholder returns by approving a dividend of $0.13 per common share and repurchasing 7.8 million shares of its common stock for approximately $193.3 million. Additionally, MGIC distributed $400 million to the holding company.

The company also made substantial strategic decisions, such as agreeing on a 40% quota share transaction with unaffiliated reinsurers covering a significant portion of its New Insurance Written for 2025 and 2026. Furthermore, they exercised an early termination option on their 2021 quota share reinsurance transaction, reflecting proactive management of their reinsurance arrangements.

Future Prospects

In January 2025, MGIC continued its share repurchase strategy by acquiring an additional 3.5 million shares for approximately $85.5 million. They declared another dividend of $0.13 per common share with a payment scheduled for March 5, 2025.

MGIC's outlook remains optimistic as it will hold a conference call on February 4, 2025, to discuss the quarterly results in detail, highlighting the company’s strong financial foundation and strategic plan moving into the new year.

Conclusion

Overall, MGIC Investment Corporation’s performance in the fourth quarter of 2024 demonstrates its resilience and ability to navigate through potential economic challenges. With a focus on achieving further growth and profitability while strategically returning value to shareholders, MGIC is poised for a promising future.

For continuous updates, investors and stakeholders are encouraged to follow MGIC through their investor relations platform. Visit MGIC's official website for further information on their products and corporate activities.