MGIC in Wis. Swings to a Profit in 4Q

MGIC on Tuesday reported an increase in its quarterly earnings, as the company slashed its losses and boosted net premiums.

The Milwaukee-based mortgage insurer earned $74.4 million in the fourth quarter, after recording a $1.4 million loss a year earlier.

A steep decline in costs drove the results, as total losses and expenses fell 34%, to $165.3 million. The company attributed the drop to fewer delinquency notices and a lower claim rate.

Revenues dipped slightly, down 5%, to $240.4 million. Net premiums written increased 12%, to $227.7 million. New insurance written for the quarter was $9.5 billion, almost 30% more than the same period last year.

"Notably we have returned to annual profitability while maintaining a solid statutory capital position and low expense ratio," said Curt Culver, MGIC's chairman and chief executive, in a press release Tuesday.