Nn,COMPETITION COULD REDUCE PREMIUM YIELDS FOR MGIC
Quote from MGIC FINANCIAL RESULTS UNDER RISK FACTORS:
"Competition or changes in our relationships with our customers could reduce our revenues, reduce our premium yields and / or increase our losses"
PREMIUM YIELDS DECLINE IN 1ST QUARTER 2017
MGIC 50.1 vs. 50.7 for Q4 2016
"ear. The effective average premium yield for the first quarter of 2017 was 50.1 basis points, which compares to 50.7 basis points for the first quarter of 2016"
"NMIH HOLDINGS 44 vs 48 for Q4 2016
Before the effect of reinsurance, premium yield in the first quarter was 44 basis points, down from 48 basis points in the prior quarter. The decline is attributable to the reduced cancellations in the quarter. After reinsurance, reported net premium yield was 40 basis points down from 44 basis points in the prior quarter"
Radian premium yield was down 3 basis points:
"Our gross portfolio yield this quarter of 51 basis points decreased by approximately 3 basis points compared to last quarter as relates to lower single premium policy acceleration. Our expectation for gross portfolio yields is a gradual decrease with the resulting gross portfolio yield of 48 to 50 basis points which includes the expected impact of our price changes implemented in early 2016"
ESSENT premium yield was 50, down by 8 basis points due mix of NIW.
"Doug Harter
Thanks. Can you talk about the decline in the premium yield you experienced during the quarter and during that context what you're seeing on premium yield on new insurance written?
Mark Casale
Doug, this is Mark. Yes, I think as Larry said in the script, the premium yield decline for the first quarter was really just a decline of single cancellation income. So to put it in context, so kind of in a bigger picture. I would say earned premium yield on the portfolio without single's cancellation and even net premium written on kind of new business is right around that 50 basis point mark, maybe a basis point above. Single's cancellation normalized is 1 or 2 basis points above that, and then when we hit certain quarters and certainly the third and fourth quarter last year kind of during the Brexit refi wave, that could add anywhere, believe it or not, 3 to 6 basis points to that number. So it's - I wouldn't read too much into it, I think longer term kind of that guidance in terms of that low 50s market is a good way to look at it and more importantly, we grew insurance in $20 billion year-over-year; so I mean picking few basis points - again, I wouldn't get too concerned about that, it's really around the volatility. But bigger picture kind of 50 - low 50s kind of normalized earned premium yield, it's something for you guys to use as you model out the growth"
In Summary:
These four PIM COMPANIES SUFFERED MARGIN COMPRESSION but, they didn't want to talk about competition competition causing ecline that cause
