MGIC Investment Posts Solid November Results; Shares Gain
Zacks Investment Research | Dec 08, 2016 09:09PM ET
MGIC Investment Corp. (NYSE:MTG) recently announced its Nov 2016 operating business statistics. Shares of the company hit a new 52-week high of $9.83 to finally close at $9.79 on Dec, gaining 2.84% during the trading session.
Insurance in force for Nov 2016 was $181.3 billion, up 4.4% year over year. Delinquency loans (loans that failed to pay back) at MGIC Investment declined on a year-over-year basis. Delinquent inventory for the month under review was 50,136, down 19.7% year over year.
MGIC Investment was severely affected by the 2008 financial crisis. However, the company is steadily recovering owing to declining delinquencies and improving cure rates on claims from its legacy business. The prospects of the company also look bright in terms of growing book of high-credit-quality business written since 2009.
MGIC Investment has been witnessing an increase in new business written owing to larger origination volume as well as an increase in the private mortgage insurance industry’s market share. The company now expects to write $46 billion of new insurance in 2016 with insurance in force increasing 4–5% in 2016. Further, positive credit trends, low expense ratio are tailwinds for the company.
Shares of this Zacks Rank #3 (Hold) multiline line insurer gained 19%, outperforming the Zacks categorized Multiline Insurance industry’s increase of 17.1%. We expect improving housing market and declining delinquency to boost the company’s earnings in the coming quarters and help the shares retain momentum.
Stocks to Consider
Some better-ranked insurers are AEGON N.V. (NYSE:AEG) , FBL Financial Group, Inc. (NYSE:FFG) and AXIS Capital Holdings Limited (NYSE:AXS) . Each of these carry Zacks Rank #2 (Buy). You can see .
AEGON provides of life insurance, pensions, and asset management services. Shares of the company gained 47.9%, outperforming the industry.
FBL Financial sells annuity and individual life insurance products. Its shares gained 23.26%, outperforming the industry.
AXIS Capital provides specialty lines insurance and treaty reinsurance products worldwide. Shares of the insurer gained 15.8%, outperforming the industry.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.