MGIC Seeking More Capital to Write New MI

MGIC Investment Corp., Milwaukee, said it is seeking new capital in order to continue to write new mortgage insurance policies. Curt S. Culver, chairman and chief executive said that while MGIC has yet to pursue raising capital from private sources, it has been in discussions with the U.S. Treasury and the Office of the Commissioner of Insurance of Wisconsin to explore options. The statement came in the company's first quarter 2009 earnings release. MGIC lost $184.6 million ($1.49 per share) during the period, compared with a loss of $34.5 million ($0.41 per share) one year ago; in the fourth quarter 2008, it lost $273.3 million ($2.21 per share). Mr. Culver added that MGIC believes it has adequate capital to pay its insured claims obligations. Losses incurred during the first quarter were $757.9 million, up from $691.6 million for the same period last year. Delinquencies went from 7.68% (5.19% flow, 23.19% bulk) in the first quarter 2008 to 13.51% (10.59% flow, 34.53% bulk) for the first quarter 2009. The amount of primary new insurance written decreased from $19.1 billion for the first quarter of 2008 to $6.4 billion for the most recent period.