MGIC Reports $34M Loss

MGIC Investment Corp., Milwaukee, has reported a net loss of $34.4 million ($0.41 per share) for the first quarter, compared with net income of $92.4 million ($1.12 per share) a year earlier. Curt S. Culver, MGIC's chairman and chief executive, said the loss stemmed from increases in delinquencies and foreclosures. Higher loss severities and lower cure rates, especially in California and Florida, also affected MGIC's results. Delinquencies, including loans insured through the bulk channel, totaled 7.68% as of March 31, compared with 5.92% a year earlier. Losses incurred in the first quarter totaled $691.6 million, up from $181.8 million for the same period in 2007. On the good news front, new insurance written totaled $19.1 million in the first quarter, compared with $12.7 billion a year earlier. Persistency also continued to improve, standing at 77.5% as of March 31, compared with 70.3% on the same date last year.