MGIC Investment Corporation (NYSE: MTG) is in the troubled world of offering private mortgage insurance. To say that they had to cover quite a bit of failed mortgages would be an understatement. This morning’s news that it beat earnings by $0.13 on a GAAP basis at -$0.67 EPS is driving shares higher.
The company’s total Q4 revenues were $447.0 million versus $361.1 million a year earlier. Net premiums written for the quarter were $263.8 million, down from $271.4 million for the fourth quarter a year earlier.
What seems to be driving shares is that the company also reported that it has successfully completed discussions with Wisconsin’s Office of the Commissioner of Insurance and Fannie Mae and Freddie Mac in order to get its waivers and approvals that would allow MGIC to write new business through a combination of MGIC and MGIC Indemnity.
It now claims that this will allow it to support its policyholders and the U.S. housing market. For 2012, it now expects a modest rise over 2011 in new insurance written and it now expects that its total paid claims will end up lower in 2012 versus 2011. New delinquency notices are expected to continue to decline year-over-year in 2012 and cure rates should slowly improve. The company did not give any great turnaround hopes for real estate as it expects that home prices should remain flat and it sees statutory capital declining.
Shares of MGIC are up 2% at $4.14 versus a 52-week range of $1.51 to $10.42.
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