Geoffrey Dunn's questions to MGIC Investment Corp (MTG) leadership • Q4 2024
Question
Geoffrey Dunn sought to confirm the mechanics of the 7.3% claim assumption and asked about the specific levers being pulled to achieve the 2025 expense reduction, including the current state of technology spending.
Answer
CFO Nathaniel Colson confirmed that the 7.3% blended claim rate was calculated by applying a lower rate to hurricane-related notices and the standard 7.5% to others. He and CEO Timothy Mattke explained that expense savings come from broad efforts, including reduced headcount and outside services, with past technology investments now yielding efficiencies and allowing for a lower run rate.