MGIC Investment Corporation: Company Profile and SWOT Analysis by WMIntelligence

VIEWS: 28 PAGES: 26

More Info
									MGIC Investment Corporation

_________________________________________________________________________________



MGIC Investment Corporation                                             Financial Snapshot

                                                                        Operating Performance
Fast Facts
                                  MGIC Plaza, Milwaukee, 53202,United   The company reported revenue of US$1,504.28
Headquarters Address
                                  States of America                     million during the fiscal year 2011 (2011). The
                                                                        company's revenue declined at a compounded rate of
Telephone                         + 1 414 3476480
                                                                        2.91% during 2007 - 2011, with an annual decline of
                                                                        1.07% over 2010. In 2011, the company recorded an
Fax                               + 1 414 3476959                       operating margin of -32.30%, as against -23.92% in
                                                                        2010.
Website                           mtg.mgic.com

Ticker Symbol, Stock Exchange     MTG, New York Stock Exchange          Revenue and Margins

Number of Employees               1,010

Fiscal Year End                   December

Revenue (in US$ million)          1,504.28




SWOT Analysis

Strengths                         Weaknesses

Comprehensive product portfolio   Increasing combined ratio             Return on Equity

Strong industry expertise         Weak financial performance            The company recorded a return on equity (ROE) of -
                                                                        40.60% for 2011, as compared to its peers, Radian
                                                                        Group Inc. (RDN), Genworth Financial, Inc. (GNW)
Opportunities                     Threats                               and Old Republic International Corporation (ORI),
                                                                        which recorded ROEs of 25.56%, 0.74% and -3.73%
Recovering economy                Catastrophic losses                   respectively. The company reported an operating
                                                                        margin of -32.30% in 2011.
Strong underwriting standards     Fluctuations in interest rates
                                                                        Return on Equity
                                  Regulations




                                                                        Liquidity Position

                                                                        The company reported a current ratio of 0.72 in 2011,
                                                                        as compared to its peers, Radian Group Inc.,
                                                                        Genworth Financial, Inc.           and Old Republic
                                                                        International Corporation, which recorded current
                                                                        ratios of 0.89, 0.51 and 0.24 respectively. As of
                                                                        December 2011, the company recorded cash and
                                                                        short-term investments of worth US$0.00 million,
                                                                        against zero current debt. The company reported a
                                                                        debt to equity ratio of 0.01 in 2011 as compared to its
                                                                        peers, Radian Group Inc., Genworth Financial, Inc.
                                                                        and Old Republic International Corporation, which
                                                                        recorded debt to equity ratios of 0.01, 0.01 and 0.00
                                                                        respectively.




___________________________________________________________________________________________

MGIC Investment Corporation - SWOT Profile                                                                      Page 1
MGIC Investment Corporation

_________________________________________________________________________________


TABLE OF CONTENTS

1     Business Analysis ................................................................................................................................... 5
    1.1       Company Overview ................................................................................................................................................5
    1.2       Business Description ..............................................................................................................................................5
    1.3       Major Products and Services .................................................................................................................................6
2     Analysis of Key Performance Indicators ............................................................................................... 7
    2.1       Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................7
    2.2       Key Financial Performance Indicators ...................................................................................................................9
      2.2.1       Total Revenues and Operating Profit ................................................................................................................9
      2.2.2       Total Premiums Earned ...................................................................................................................................10
      2.2.3       Asset, Liabilities and Capex .............................................................................................................................11
    2.3       Competitive Benchmarking ..................................................................................................................................12
      2.3.1       Efficiency ..........................................................................................................................................................12
      2.3.2       Total Premiums Earned ...................................................................................................................................13
      2.3.3       Asset Turnover .................................................................................................................................................14
3     SWOT Analysis ...................................................................................................................................... 15
    3.1       SWOT Analysis - Overview ..................................................................................................................................15
    3.2       Strengths ..............................................................................................................................................................15
    3.3       Weaknesses .........................................................................................................................................................15
    3.4       Opportunities ........................................................................................................................................................15
    3.5       Threats .................................................................................................................................................................16
4     Company Statement .............................................................................................................................. 17
5     History .................................................................................................................................................... 18
6     Key Employees ...................................................................................................................................... 19
7     Key Employee Biographies................................................................................................................... 20
8     Locations and Subsidiaries .................................................................................................................. 21
    8.1       Head Office ..........................................................................................................................................................21
    8.2       Other Locations and Subsidiaries ........................................................................................................................21
9     Appendix ................................................................................................................................................ 22
    9.1       Methodology .........................................................................................................................................................22
    9.2       Ratio Definitions ...................................................................................................................................................22
    9.3       Disclaimer.............................................................................................................................................................26




___________________________________________________________________________________________

MGIC Investment Corporation - SWOT Profile                                                                                                                                  Page 2
MGIC Investment Corporation

__________________________________________________________________________________________



List of Tables

Table 1: Major Products and Services ..................................................................................................................................6
Table 2: Key Ratios - Annual ..................................................................................................................................................7
Table 3: Key Ratios - Interim ..................................................................................................................................................8
Table 4: Key Capital Market Indicators ..................................................................................................................................8
Table 5: History.....................................................................................................................................................................18
Table 6: Key Employees .......................................................................................................................................................19
Table 7: Key Employee Biographies ....................................................................................................................................20
Table 8: Subsidiaries .......................................
								
To top