Mihir Bhatia's questions to MGIC Investment Corp (MTG) leadership • Q4 2024
Question
Mihir Bhatia asked about the potential impacts of GSE reform on MGIC, the conditions required to lower the initial claim rate assumption, and the company's view on a normalized delinquency rate or credit cost.
Answer
CEO Timothy Mattke stated that while GSE reform is uncertain, it could increase volume for private MI, emphasizing the need for proper guardrails. CFO Nathaniel Colson added that lowering the claim rate would require conviction in a sustained favorable economy. He defined a 'through the cycle' underwriting loss ratio as being in the 20-40% range, far above recent performance.