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MGIC Investment Reports Net Loss Of $517.8m For Q3 2009

The total revenues for the third quarter were $413.3 million

MGIC Investment Corporation has reported a net loss for the quarter ended September 30, 2009 of $517.8 million compared with a net loss of $115.4 million for the same quarter a year ago.

The diluted loss per share was $4.17 for the quarter ending September 30, 2009, compared to diluted loss per share of $0.93 for the same quarter a year ago.

The net loss for the first nine months of 2009 was $1.042 billion, compared with a net loss of $249.8 million for the same period last year. For the first nine months of 2009, the diluted loss per share was $8.39 compared with a diluted loss per share of $2.26 for the same period last year.

The total revenues for the third quarter were $413.3 million, compared with $461.6 million in the third quarter last year. The net premiums written for the quarter were $278.3 million, compared with $365.0 million for the same period last year. The Net premiums written for the first nine months of 2009 were $956.2 million, compared with $1.105 billion for the same period last year.

Included in other revenue, for the third quarter of 2009, was a gain of $6.4 million that resulted from the repurchase of $42.3 million of long term debt due in September 2011.

New insurance written in the third quarter was $4.6 billion, compared to $9.7 billion in the third quarter of 2008. In addition, the Home Affordable Refinance Program accounted for $450.0 million of insurance that is not included in the new insurance written total due to these transactions being treated as a modification of the coverage on existing insurance in force.

New insurance written for the first nine months of 2009 was $17.0 billion compared to $42.8 billion in the first nine months of 2008.

As of September 30, 2009, MGIC’s primary insurance in force was $216.8 billion, compared with $227.0 billion at December 31, 2008, and $228.2 billion at September 30, 2008. In the third quarter of 2009, the company recorded a tax benefit of $100.3 million, which is primarily to offset a tax liability on $279.5 million of unrealised gains that were recorded to equity.

The losses incurred in the third quarter were $971.0 million, up from $788.3 million reported for the same period last year primarily due to an increase in delinquencies. The net underwriting and other expenses were $59.1 million in the third quarter as compared to $62.4 million reported for the same period last year.