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MGIC Investment (MTG) Announces Strong February Results
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MGIC Investment Corp. (MTG - Free Report) recently announced its Feb 2017 operating business statistics. Insurance in force for the month was $182.9 billion, up 4.6% 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 decreased 19.3% year over year to 18,616.
MGIC Investment was severely affected by the 2008 financial crisis. However, the company is steadily recovering on the back of 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 improvement in new business written owing to larger origination volume as well as an increase in the private mortgage insurance industry’s market share. However, the company now expects to write 5–10% less new business in 2017 owing to the FHA premium cut. Nonetheless, the new business written as well as an expected increase in persistency is anticipated to enhance insurance in force moderately in 2017.
Given the declining pattern of claim filings, we expect paid claims to decrease further. Also, a decline in loss and claims will strengthen the company’s balance sheet, in turn, improving its financial profile.
Shares of this Zacks Rank #1 (Strong Buy) multiline line insurer gained 1.9% year to date, outperforming the Zacks categorized Multiline Insurance industry’s increase of 1.7%. 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 American Financial Group, Inc. (AFG - Free Report) , Everest Re Group, Ltd. and Selective Insurance Group, Inc. (SIGI - Free Report) .
American Financial offers P&C insurance products in the United States. The company delivered positive surprises in three of the last four quarters with an average beat of 6.45%. The company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Selective Insurance provides insurance products and services in the United States. The company delivered a positive surprise in one of the last four quarters but with an average negative surprise of 4.53%. The company holds a Zacks Rank #1.
Everest Re offers reinsurance and insurance products. The company delivered positive surprises in three of the last four quarters with an average beat of 43.49%. The company holds a Zacks Rank #2 (Buy).
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MGIC Investment (MTG) Announces Strong February Results
MGIC Investment Corp. (MTG - Free Report) recently announced its Feb 2017 operating business statistics. Insurance in force for the month was $182.9 billion, up 4.6% 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 decreased 19.3% year over year to 18,616.
MGIC Investment was severely affected by the 2008 financial crisis. However, the company is steadily recovering on the back of 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 improvement in new business written owing to larger origination volume as well as an increase in the private mortgage insurance industry’s market share. However, the company now expects to write 5–10% less new business in 2017 owing to the FHA premium cut. Nonetheless, the new business written as well as an expected increase in persistency is anticipated to enhance insurance in force moderately in 2017.
Given the declining pattern of claim filings, we expect paid claims to decrease further. Also, a decline in loss and claims will strengthen the company’s balance sheet, in turn, improving its financial profile.
Shares of this Zacks Rank #1 (Strong Buy) multiline line insurer gained 1.9% year to date, outperforming the Zacks categorized Multiline Insurance industry’s increase of 1.7%. 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 American Financial Group, Inc. (AFG - Free Report) , Everest Re Group, Ltd. and Selective Insurance Group, Inc. (SIGI - Free Report) .
American Financial offers P&C insurance products in the United States. The company delivered positive surprises in three of the last four quarters with an average beat of 6.45%. The company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Selective Insurance provides insurance products and services in the United States. The company delivered a positive surprise in one of the last four quarters but with an average negative surprise of 4.53%. The company holds a Zacks Rank #1.
Everest Re offers reinsurance and insurance products. The company delivered positive surprises in three of the last four quarters with an average beat of 43.49%. The company holds a Zacks Rank #2 (Buy).
8 Stocks with Huge Profit Potential
Just released: Driverless Cars: Your Roadmap to Mega-Profits Today. In this latest Special Report, Zacks’ Aggressive Growth Strategist Brian Bolan explores a full-blown technological breakthrough in the making – autonomous cars. He also spotlights 8 stocks with tremendous gain potential to feed off this phenomenon. Click to see the stocks right now >>