Tuesday, January 22, 2008

MGIC Provides Investor Update

MGIC Investment Corporation (NYSE: MTG) announced today that year-end 2007 delinquency inventory was 107,120 loans, an increase of approximately 16,000 loans from the end of the third quarter. Cure rates have continued to deteriorate, resulting in a higher percentage of delinquent loans that become claims, and average claim size has also continued to increase. As a result, the Company expects incurred losses for the fourth quarter of 2007 to approximate $1.3 billion. The Company said its insurance in force at year-end 2007 was $211.7 billion. The Company also said it is increasing its paid loss forecast for 2008 to $1.8 - $2.0 billion.
I'm still short MTG - it's one of my favorite positions. Used the rally in financials today to buy back BKUNA, MTG, MBI puts that I had sold last week.

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