MGIC Investment (MTG) 4 Nov 212021 Q3 Earnings call transcript

Good day, and thank you for standing by, and welcome to the MGIC Investment Corporation Third Quarter 2021 Earnings Call. t this time, all participants’ line are in a listen-only mode. After the speaker’s presentation, there will be a question-and-answer session. [Operator Instructions] And please be advised that today’s conference is being recorded. [Operator Instructions] I would now like to hand the conference over to your speaker today, Mr. Zimmerman. Mike ahead. go please Sir,

Mel. Good this Investment for us thank morning, and for and morning MGIC you your joining Thanks, interest Corporation. in

additional information on results to of during under last certain most be on to accessed a Chief Officer, release website, Financial me Newsroom, that call of Colson. non-GAAP for results the evening, participants and located which the the the I that Nathan want earnings Joining Tim the GAAP Mattke; measures may financial includes to the mtg.mgic.com at about we third all our is and are reconciliation ‘XX, refer quarterly of measure. the quarter comparable to Officer, Chief remind company’s Executive includes which discuss today will call our

remind have as I which website on our to to guidelines or and risk may other presentation in information valuable. time presentations parties may reinsurance we contains think new we our other and our our time, you’ll corrections information interested other primary to about presentations that well. transactions, pertaining insurance also that post investors valuable underwriting written, on want find website to and force, information posted that past listeners from We a find

call, During in contained those about our the these Actual make may differ forward-looking this course from materially expectations results of comments we of could the statements. future.

I’d If actual obligation any those could that Further, of X-K are statements of of current the about XX-Q rely Form an Mattke. to to information Tim at that, other time future last and call like the subsequent Additional or makes XX-Q. party in forward-looking forward-looking that not time fact cause materially statements filed any the results contained this or X-K from were company we factors, that no COVID-XX, the the update should in discussed than are Form such to guidance call undertaking night. are or including introduce issuance light differ interested statements, those in With the in those the the on Form developments.

report opening detail Mike. everyone. of my discussing capital operating will Thanks morning, we provide remarks, After very I’ll pleased we generated our quarter questions, activities to related Nathan finance financial position. by strong that financial results current results. wrap-up open more I’m policy. line another before about Then the the environment, including and for housing Good to

increased million. income economies credit GAAP local financial During solid the $XXX decreasing results force, conditions economic a delinquency of strong market, housing we quality of quarter, insurance earned our Quarterly pre-pandemic levels more the of and activity. net as in to reflect continue to improving rate return a

expected, refinance had activity As slowed. we

new the X.X% $XX.X combined with higher of However, insurance the our purchase strong market business increasing resulted for of third to in leading and nearly purchase XX% of history. the XX% level accounted of nearly NIW a This than X new indicator annual continued to $XXX in than in quarters’ last more in the recent last we application of billion wrote The quarter. NIW, year. in force the remains higher billion, business the pipeline, were continue housing biggest XX% of our the our market, received company’s strength months. for account XX-year in X Reflecting applications writings persistency, applications

expect we continue of to So levels such did not high business. surprise do anyone not writing it that new

assets interest at remains rising the will demand than for records over look loss rates, expect force to while portfolio, the our robust low As the quality current Taking insurance and the of a trends reflects over low, environment, low continued increased be modestly, XXX% the the at delinquency of $XXX ratio number refinance a quarter. the despite in conditions, the lower consumer should $X.X slower will and the activity, we our been At and of allow quarter quarter. billion, by and although required excess continue existing are rate strong assets I the purchase This our remain a PMIERs X.X% through our perhaps at in written X which October. prior we quarters. of result a end, our of annual remain of and received. This credit the annual by we increasing million quarters, the to ratio PMIER performance, end with positive was in-force still notices primarily standards. to in combined the the of look than several encouraged homes business recent attracted third by quality insurance was minimum out new our sufficiency enjoying book persistency economic new next quarters activity to as grow, have historical in available continue

of ratio enable stress to strategy, changes of the returning primary shares pursuing needs. strategy dividends company value be $XXX billion on We of means new million stock. writing opportunities, means management holding strategy by financial grow of times company position by PMIER on executed level the to This dividend. repurchase create will capital in company, stock nearly last our the insurance, in business repurchasing mortgage of even will us near-term this a of operating retaining environment. flexibility new sources the writing for the can $XX.X paying centers protect flexibility our XX and As to during and/or excess the and discussed operating more and writing capital paying common the At to business and and maintaining retiring we through maintaining holding liquidity quarter debt, our well by it us value policyholders sufficiency maintaining both diverse our shareholders. for capital company increased with created target to shareholders connection of quarter, of a and long-term that In million our

for believe quarter and customers. the writing counterparty well-capitalized have strategy changes. while on company of shareholders for ways company our I to us holding strategy. commitment opportunities continually actions value Nathan we management that summary, our in for capital this authorization create look levels shareholders. we will with taken maximize near-term and In long-term company course, these the for announcement and value dynamic remaining changes Of share focused to target the will the our that discuss long-term business continue operating be allowing demonstrate that our to are the while to believe purchase success environment We of new

have We a and strong sheet. balance dynamic

that, conditions positioning we to We and me the are in that offer. risk-reward it the over let turn market, With like in equation Nathan. our the confident current

and morning. Thanks, good Tim,

As million per was compared the Tim we an net strong earned share third had $XXX $XXX financial return or $X.XX another year. mentioned, XX% of annualized we on of $XXX operating generated shareholders’ and million third income diluted quarter last beginning quarter income to in equity. results. net million In the Adjusted quarter,

as rates a the in-force During policies million, X/XX XX.X compared the run premium quarter, results yield total decrease premium revenues The basis at continue to quarter primarily point The decline for was older of basis last quarter. $XXX points, third year. premium off. as the in with generally to higher was same were yield the which of last the net was down

premium we decreased, less activity policy cancellations. realized accelerated from benefit refinance As single also earned from premiums

in XX last In loss basis but year. number quarter last quarter, they notices, quarter third last was the XXXX. flat in Net down as X.X%. and X,XXX quarter the which third million million $XX to loans start credit. of quarter quarter, in to to were low Shifting points of quarter $XX the million were the the the of the third quarter $XX delinquency losses new received $XX less During from approximately compared million, the incurred million ratio represents of drove of over than the insured we and of which $XX

quarter quarter third of insured the of while loans pandemic, was the a that delinquency comparison, onset the XX% notices points XXXX received represented the before basis they of the loss of third As number approximately we COVID-XX point XXX quarter, at new in of the ratio of XXXX of in XX.X%. beginning more approximately and the

we to favorable I continued early notices are quarter as the in of notices The compared in of primarily the by we of modest another positive September. received last primarily new of reserve $XX new received The third market in and number to a similar At the X,XXX last start the QX in with X.X% foreclosure indicator October, have we good delinquency development coverage to in large cohort the to year. the the These credit to low the on quarter We quarter, saw quarter was in quarter prior In of was result declining $XX experiencing, nonperforming quarter development various of their point, third claims notice adequate in of last on eviction level notices any encouraged the we the was defaults, low XXXX. rate the claim loss moratoriums. paid in the are COVID-XX Cures performance. compared increase quarter COVID-related reserves in million in compared support encouraged trends are the trends in the of estimated third million were outpace credit they did and of level XXXX the notices to credit we paid last this make in to to The the realized this commutation approximately primarily year, as as of payment attributable of to very associated $XX immaterial by a of and approximately remained notices believe of development a received near-term seen not strength million continue still housing favorable the The the quarter. remain quarter. due adjustments in quarter claims including Primary loans claims inventory delinquency X% third pandemic. October received but of Cures we quarter notices.

the procedural expect loans continue safeguards required few for to for foreclosure next GSE given payments additional by for moratoriums the claim timelines eviction remain the the quarters low and and We to CFPB.

position spend minutes quarter. I our Next, to in of about capital a actions wanted capital the couple and talking

of sufficiency earlier company. in announced, XXX% to PMIERs $XX operating Tim a to discussions of put position $XXX place the share having XXbX-X current a declared total that XX as an total of million previously XX. the to the third had the target in be MGIC’s of quarter, for at $XXX and the quarter, per for of repurchase the shares as be we we holding As share a Board $XXX dividend resulted a additional MGIC’s billion a mentioned, million. on level, authorized September million our dividend plan, $XX ratio above also per October, minimum for PMIERs And quarter of to $X.X year. target $X.XX XX an The share we the our repurchased above million continues company million access level. end Board access shares we an XXXX. are payable and dividend expires November of under of X.X the fourth At in In and our a requirements million the liquidity requirements end current program in about this PMIERs we $X.XX additional million third of paid regulator an a repurchased XXXX. paid with capital Since remained at total

remaining of they holding to the to dividends October At the increase XX would $XX settle paid Convertible target our received plan XXXX. quarter share the also our fully Debentures repurchase our company’s additional on in October that from due the are use redemption those at even holding the we if liquidity. XXXX, company’s as our in is expires current fourth to liquidity of -- additional MGIC million of this levels XXXX. Any year-end above time, if dividends the use remains X% As Junior company authorization XX, eventual holding

certain Our has share the but can above details, XX most terms interest XX we our recent the price under of a consecutive for level trading debentures accrued XX-K redeem closes when additional days. of for debentures, the plus principal

redemption to $XX.XX. lieu expect convert is later. term at a in their provide paid expect all debentures common prior dividends of of virtually redemption notice, circumstances. has stock And date. provide we in elect as circumstances Under we to will the converting of For under for allowed of a the the share we the reduced price the the most of debentures. holders the we so into XXXX, and level shares, terms a If as under debentures, redemption the to elect in result that with notice redemption pay we days to would near the holders and under the the issuing level price debentures hope least cash may XX before share annually We debentures date certain year the do

performance, strong our to felt and results to consider of we company was Given debentures. holding time share price the it the operating recent the the actively retirement position right

the debentures $XX and XXX While approximately XX our would basis. And would XX retiring interest in September points expense. by million eliminate on forma of timing as annual approximately million remains dilutive the shares uncertain, ratio potentially a debt-to-capital pro reduce basis

MGIC from for appropriate. the As Tim commitment of quota includes and the the mentioned, loss using most approach excess believe to company reinsurance both company balanced continue forward capital the capital strong holding This position maintaining approach to long-term via the holding of company. ILN as our transactions dividends balanced share markets seeking value and that reinsurance provides maximize to accessing writing treaties, flexibility the we to a

of of turn the MGIC amount of see, current it will in Tim. is not holding indication dividends pre-COVID company. future we robust less had to quarterly let part holding the that, liquidity from position While any With occur back than our that me we due the dividends cadence would the to paid company an to the expectation frequently

Thanks, Nathan.

a finance housing, Before recovery to mitigation focus infrastructure. impacted continues efforts and on moving COVID-XX me promoting providing few including homeowners agencies, topics. housing to to affordable large-scale its to and on for policy and not its closure address access questions, various sustainable housing for federal and changes FHFA a eviction The successful the making ensuring economic government CFPB and through by let additional

support and the delinquency housing exposure investment #X many and We In will it we recap Not our and because currently high payment. for view the experiencing solutions insurance in is and our a quality we ratio, reported low homeownership are barrier in we a on still for of a supported great housing current and similar down those of and GSEs an in industry use confident mortgage that can portfolio all only to continue value our by of strong, book encouraged both especially the sheet program. income to private solutions policymakers offers solid dedicated company of premium this moderate proposition levels that a our debt-to-capital and and new The finance buyers. MGIC, market, characteristics, maintaining of increased Long we to advocate I first-time in writing positioning strong balance borrowers and role environment the housing $X lenders company solely economic levels which are finance billion, remain robust out operating provide reinsurance newly and to dynamic enhancement the in contractual mortgage market, other housing let me and does flow housing have I’m consumers with to presents. housing remains At taxpayer while critical a delinquencies, a business opportunities already that and housing closing, the in that focused to saying and offer by market in and regulators that play and cycles. overcome in like the lenders, capital resilient organized to credit are the low business inventory. - insurance to the underwriting industry are finance has a providing about day nearly insurance reduce believe industry order home day term, low credit to and system. share industry, private future the

best-in-class shareholders. let’s offerings place continue to the on questions. generate and to and solid customers right build our operator, for to our to that, team foundation returns strong in With competitive deliver our service We have take

[Operator Instructions] comes first line We question of the have from the Bose George.

capital the the on do return, we think capital think as a first, debt-to-capital of we subject cadence just -- target about range you sort of capital Okay, should return about return? have

Bose, question. that thanks this one, I’ll take is the and for Nathan.

quarter certainly way, if we bit, would XXs, I is we’re we’ve to low a the what with feel comfortable XX% last debt-to-capital. feel still but right said the came think comfortable down also and that now, same little XX% where I that in are.

to near-term do like either. smaller of take we if we in issues need we but to also don’t are like So some the debt X%s, like resolve like don’t replace if have issue actions to the able to feel feel that feel wouldn’t outstanding order debt we need that those, new necessarily

when think actually, -- the And That’s you there should book helpful. we great. in redeem impact any XXXX, value about? Okay, then is

notice underlying of they’re would debentures, of the that I at about XXX% on redemption balance is worth par terms sheet is the under balance the about is think on par really The only our our thing value. when value; stock the sheet,

versus a a to of them and that’s presumably notice. But settle the the there and between for there we to price value dependent that again, assuming kind we on book -- that future the the issue pay impact of shares, be will be the underlying So value the cash would our share the delta what shares happens par have. value in redemption post

So down, value will be think hard there. but fully I a it book to is do impact pin there

question from Cullen next We line had the Johnson. of the comes

there, you favorable the development little a population, you wondering might what think? on factors pre-COVID Just the driving in expand if could development be

is This Yes. again. Nathan

doing I that were estimates weren’t it’s of new felt longer cure initial and actual like activity took I I $XX to many time through. our in the to have point to got to work evaluation made think it the to our initial items there forbearance what been really similar this every us, change too we date think really asking had cohort, a ultimately And similar They’ve in it there quarter for little out as enough the we’ve that kind pre-COVID And just quarter. nearly do it estimates? talking favorable and high a about, such ourselves, of million evidence development notices. think that peak COVID-related where way their as

PMIER. assets sense. that them. they tend as age, then kind loans That capital to despite Got requirements looking required constant some the just under higher They’ve it. maybe in at delinquent carry And quarters, few with makes relatively of last remained

loans to to you’ve of So being just maybe have counteracted, be pace that think delinquent cures fair of so it just that seen would of new speak, outpaced by notices? dynamic the

Yes.

specific call think out loans, assets in dynamics. to months bucket X to those required last I I you’re plus. think X.X on the is right PMIERs delinquent I XX The aging believe,

So see a to this they’re decline. lot the but in loans of final at continuing good and kind the point, their aging Cure activity of inventory continue notice we to bucket

there’s less required risk, that when risk. less obviously So delinquent for capital

next have line DeVries. comes the of from We question the Mark

a be for had indicate about I debentures. did weeks that question somewhere redemption couple to the you can before above trading stock the follow-up of the of redeem? needs you Nathan, $XX a

Yes, is Mark, this Nathan. That’s right.

share key we the paid dividend $XX ‘XX, we of to, the level dividends will that quarter Because fourth that that including for $XX.XX. will level XXXX, in even. price calendar around we ‘XX pay, the think, the is For down debentures calendar for come

in the So, that’s need XX XX for that to debentures. share of redeem at trading price days we the be the level order to consecutive

would would expect to in then take impact, the they back -- common, have to of everyone stock? effectively to the buy And bonds convert you then it of about I Okay. cash you said convert then buyback that you would taken mean amount you than thinking terms didn’t if the to assume

these we’re cash the settle the if remarks, in mentioned to convert. debentures, shares I as able in under actually or So of terms prepared holders

document in the formula elect cash. to circumstances, and works. how they pay option the cash that if a then we most shares But describes under convert, have even we that repurchase settle the in the issue think There’s we set would So to versus them.

And it. That’s separate Got helpful. Tim. Got it. question,

M&A you a related enhancing just my of views non-MI your excess investments capital, time as or and diversifying with as been businesses. of since through business today your sit investing It’s considerable long a the have strategy days. discuss been shareholder for Some could exploring you the in But [indiscernible] value? here peers

the and about time something I do. Yes, to since remember do has appreciate business other mentioned Mark. those. remarks, like capital, think I consider days, high-quality a No, being I do we we write see -- have. we how long as when opportunities creates investment standpoint. think use It we It’s We able towards might prepared start question. been deploy we the about shareholders, be, and in any but But being sort we the with what that stack we excess then you the capital of capital enterprise and move down best look think the that from a can anything and of for don’t diversification the that we if value for return as the really [indiscernible]

excess That’s not to has thing a that’s would looking we again, would nothing of been that have are way anything to the over seen that think always last us but good we to our be that we frankly, so wouldn’t, time, out decade, to because if it. And the we there’s it’s But looking there’s things. that there haven’t see quite attention We at sort current think think it quite been about we’ve those frankly. change that been accretive practice. to over leads capital caught say

line comes Doug the of from Next question Harter.

Just expectations notices how of price is in environment normal hoping what home this your current about for and bit a you could of level a impacts talk new kind that? little appreciation

Nathan. it’s Doug,

if terms it about you think we for in think of described are notices, basis level of on When book. recent new been more continued loans of basis delinquency see That’s down lower. of the the points by the rates of for that the account in -- largely us, us force. on vintages, number they terms some it of for points the notice I driven are new we runoff time, legacy trending in

from low -- those low really the experienced really we’ve last a the think months, the book. lot So delinquency But notice X still I are in legacy new of rates.

tailwind burn to might those as off, there some continue there. be So

we we’re these will over the think to and notices. ‘XX, off of early and just where most the couple have ‘XX ‘XX typically new books the of headwind delinquency business the next that entering is years see throw large that they be years from really I likely that

out term it the are, here. appreciation it’s add to hard resolution And into to So thing is at of the the happening things think might in much help cures think I I what’s net home in avoid one turn it Yes. it beyond able either really those is but into claims a happening delinquencies, to, that’s about I’d near being think of when the delinquency. I about potential delinquencies price because some into more more judge terms of or lower being of severity no claims the all Doug,

Next from of Bhatia. question, line we Mihir have the

Just me. a ones for quick couple of

they around I on First, little just are I value. Do bit I’ll be industry to like are have was some outside basically guess ask potential wanted I around of valuations here? question follow because asked capital, Mark’s of is itself. ask industry book good, M&A. reasonably what the companies? I just your fixed to insurance peers, M&A with up thoughts mortgage mean to credit about but And need but seems excess Mark consolidation a your maybe for everyone

So on just wondering thoughts your what are that.

to share of get looking going and continue their Anybody it, One, sort at and equation. fair to a effectively to it’s I industry, value market is gotten math their and to the that future look way would looking question. we of I we share an just we’re get sort as market is No, for I expect on the think paid book as way sell that. it at look have

sort at worked. You math savings. you not expense counteract have can that with when make to share we’ve has from looked sure that loss The that of the this in

something it’s regularly. in think somewhat looks at probably the I everybody industry

we to lot fix, few in continue volume to year, be going we’re able going be we That’s so to And to made need of but had think think good in whether We’ve grow the that’s We’ve it that insurance question. is volume lower last a indicated do next we easier. force. slightly years. a

from going of get X something a that share savings continue to it’s the the we’re to asked, look that potential the you going have. I can that’s, to So to work compared to think, we’re But has to loss of at. continue expense math entities combined question the

makes the then that regulatory just maybe starting No, And front. -- sense. Okay. just on

think been Just with impact Could I any has developments from New talking York, I the recent nonbanks was like very the about comply example, requiring quickly, curious. states? CRA. for by to see you

Now I could know a from impact wouldn’t directly that you but impact that? you, knock-on have

again, just week. Yes. and I question, mean, this it’s the a out message came valid

think obviously, states a currently. effect, we’re the from regulated by I knock-on

others. states some more are so And active than

something se. I that effect a team knock-on So I any think it’s we pays have foresee that from per don’t to that. close attention that

our portion help. our of I customers. to to it, as have is a as But those able some of with customers not some we’re well think with those could suited we more they want those they we to to conversations with be that point. huge it could lead discussions customers how proactive and participate are normally on But business this at in to space that how and engage

standpoint. we try Again, abreast opportunity effect knock-on stay regulatory a see don’t a I though here what’s of that I happening out am concerned create about. can so there. from to specific And

helpful. No, Okay. my that’s And question. then last

and Just on NIW the disclosure you You have a premium stabilize? think, portfolio I -- will portfolio your know don’t any give if understand in just as why kind on I is people really think yields. or willing to that question, where where used whole, bigger yield declining. big the rate, to we right? does of in-force yields share just For thoughts stabilize? premium current you’d terms be the of one the quarter dynamics yield I NIW it’s of The industry a understand

Yes.

sort I as little a of a I we a standpoint. market standpoint, dynamics at come of is to going about look at from from that’s as from with reality would but well. market I’d what the And pricing quarter. portfolio bit few we as this premium. dynamic trend that as -- point forecasting there’s a higher traditionally, think on is, volume, transition We of think mix business, talked last when higher new we quarters year also the that that bit as say purchase we can little the basis a that a sort well it standpoint we The more towards to yields, line expect look impact a move LTV, end

about. sort might go But is reluctant able a guess, impact we little returns also at, can comfortable mix always get, there. look of are I business. It’s is why that we’re then valid it’s I to with equation that happen to what the off too in to how so think risk-return the the able we’re that moves, we of still and that sort it’s to the far a from deployed, sort -- get able extremely to we’re we the and And But a again, the capital think get think right industry premium now. And key which of question. I on us, feel something of out bit, focus others

wants XXXX of prior. because to I Maybe is prepayments, to this Mike. it to why mean predict on we’re that. like for the Mihir, looking add book prepayments and everybody is just have to difficult is

current the last our at look it’s of in-force. and years, you about ‘XX, XX% ‘XX X If

rates go pricing back if So quarter, and those XX% have place. things ‘XX XX%. higher was the taken like granular which Think and all quarter, to premium last prior, risk I it base from more is the the before

prepays not where be in of new the forecast and to the but also struggle, right, it’s book, trying things part a old business business. are to gets in, It’s of it’s coming at. the of long-tail pace only that So

to give more complicated So more specific makes guidance and what it try to. that’s

question Ryan of comes the from Gilbert. line Next

Unfortunately, the call I late. jumped on

if you’ve from So there answered forward any this. benefit or is But premium I to already yield your QSR apologize impact going terminations? the

it’s Ryan, be will There modest benefit. Nathan. a

had reducing out One quota just share are those elected that those We at And to of we of our the deals that books deals point. deals. quota terminating. less small relatively had terminate the so relative older is reasons why the been those vintage optionality single they’re to some of significant this share prepayments

case, it one only was in think I like felt our So option.

think be those that up combined. termination going a that I again, still do modest. across million the deals, very I think there, including fee directionally, we it’s to $X numbers, which will in So there’s QX And X show but pay positive is the

effect ceding deals of the really I premium first really of like ‘XX. quarter run kind So those favorable until not But a the bit. quite under they’ve be down of won’t said,

of PMIERs point. there’s in from this those, volume say, at not lot standpoint premium benefit a or So a standpoint from, a

it. Got Okay.

to, course of the Is looks up of that capture Second just the function returns as NIW appreciation NIW that question like characteristics market? guess, price MTG over is been ticking XX-plus the in origination on of strategy the It home a XXXX. an the has I LTV and volume? of a on more percentage total NIW. total Or best

that portion purchase as say movement market has much would being from bigger a NIW to of the I been sort there from driven. about more the of the be and the refi move

in that LTVs higher would refis lack the the of average be biggest so And on But say with I’d that driver. population. just

a Okay, look one able I And about lower guess, insurance premium for XXXX? think insurance getting XQ you’ve force. you dynamic is with premium Or force. XQ, XQ Do on, great. in that persistency yield offset should in yield to continue at that’s ahead? relationship we be and The yield if the premium between compression in in and been offset not can higher relative I me thinking to last to enough

Nathan. It’s one. that take I’ll

grow we talked in insurance right where growth. had at modest that although more the recent this quarter it we’re I we’ve than force, may to directionally, think XX% now quarters, year-over-year in think at continue we’ve I think can a be about we pace

decline, And we function come the then in-force you frankly, things many got get like that happen. to down, said, as is factors. the of growing of question hard continue yield at next quarters. growth those will premium force, that next do expect in-force think certainly one judge, pace. just it’s if quarters, really the faster think over the we we’re does insurance if happening mitigated will -- we that are of it the Even then so in market-driven to be that’s the which I couple out are beyond but yield by couple So And a to offsetting and is the

So it’s predict. really hard to

Geoffrey Dunn. [Operator Instructions] line Next of the comes from question

Is where premium Nathan, run question. technical is going a the termination just expense booked? to million First, through $X line? or the that to be fee going

will on It Nathan. it’s premium Geoff, line. be the

had buyback think buyback? open as QX suspending then market you you Or the And you Okay. your are your XXXX, parameters of about that? same your with of your changing continuing the for activity parameters or in XXbX-X you anticipation are

stock, shares, wouldn’t thought of we we’re is the perspective we’ve think us time be or at really for it’s notice is notice, period about which that until least execution again could trading the we’ve where the way not of the provided appropriate potentially share repurchasing near after in that impacting kind repurchase once that, our kind issuing that kind thinking term. is be redemption that XX how it from I be to we that redemption days, at But XX the that provide of about time. a

on challenges to then And I about weigh about Okay. versus realizing capital think economic an against actually to multiple? you into with thing, come consider stuck you do I’m as -- question value play curious excess diversification, MI that you of M&A. getting And diversification the up return in possible as the the wanted last diversification of if shareholders? kind Does value follow that

as too. say it has it as business. think make sense I’d look our guess, aligns our I I lens, translate And when in with Jeff, through it, that far to into ultimately has think, value it play I we how do to comes to shareholders, into the

it for are really that’s shareholders. to thought a don’t It mutually that the opinion, does my can’t small always I in if value to something into right? process in diversification, But exclusive be it so that. those is be and of in eyes It be necessarily. has know meaningful, translate And not

would we’re capital. in my Yes, view an is way. create sort that mind operating connection that shareholders, value that hope of creates done the then do important that’s ultimately, ultimately and everything it and the for piece we the my shareholders But of that’s the be Now that we that through value that to you to think can for shareholders. With the we’re think now, able I the very for when value ultimately where and a right of we are create value returning business. factor able that the excess create about it’s do feel that diversification also we business, to in need confident

to have Please the questions as presenters. queue continue, We of don’t any moment.

last the I their we move of everyone. and Thanks, Well, safe into has season year. as thank hope part want Okay. everybody interest a healthy to and MGIC everyone in holiday the for

you. call. gentlemen, participating. for and Thank you conference Ladies that all today’s concludes Thank

You may now disconnect.