Milwaukee-based MGIC Investment Corp. today reported fourth quarter net income of $102.4 million, or 24 cents per diluted share, up from $74.4 million, or 19 cents per share, in the fourth quarter of 2014.
MGIC, the principal subsidiary of MGIC Investment Corp., provides mortgage insurance.
The company said net income would have been even higher in the quarter, but it experienced an $11.5 million impact due to an adjustment to the reversal of its deferred tax asset valuation allowance in the third quarter of 2015.
Revenue totaled $257.9 million in the quarter, up from $240.4 million in the same period a year ago.
MGIC wrote $9.8 billion in new insurance during the quarter, up from $9.5 billion in the fourth quarter of 2014. At the end of the quarter, it had $174.5 billion of insurance in force, up 5.8 percent from the same period last year. The company also reduced its primary delinquent inventory from 79,901 loans to 62,633 loans, a 21.6 percent reduction year-over-year.
For the full year, MGIC reported net income of $1.2 billion, or $2.60 per diluted share, up from $251.9 million, or 64 cents per share, in 2014. 2015’s fourth quarter included a $686.7 million impact related to its deferred tax asset valuation allowance reversal.
Full-year revenue was $1 billion, up from $941.8 million in 2014.
The company also said it plans to raise its premium rate structure, which is expected to increase returns going forward.
“In 2015, we focused our efforts on positioning the company for growth and this is best reflected in the addition of $43 billion of high quality new insurance to our growing insurance in force,” said Patrick Sinks, chief executive officer of MTG and Mortgage Guaranty Insurance Corp. “We also continued to experience positive trends on pre-2009 business relative to new delinquent notices, paid claims, and the declining delinquent inventory and I am pleased to report that as of December 31, 2015 we are compliant with the financial requirements of PMIERs.”
