MGIC Investment Corp. (MTG)

[tommiegun54]

INCREASED INCURRED LOSSES COULD IMPACT Q3 2017 PROFIT FOR PMI INDUSTRY

YESTERDAY TIM MAKKE, EVP FINANCE, GUESS THAT MGIC INVESTMENT will most likely see a spike in delinquencies from insured loans due to HURRICANES. If so, "INCURRED LOSSES" increases will eat into profits for both the third and fourth quarters.

The insurers are already bracing for LOSSES and will most likely increase LOANS LOSSES RESERVES AND LAE, meanwhile analysts will sit on the sidelines waiting for the curtain fall, then adjust earnings estimates.

THE PMI MARKET IS already feeling impact of premium margins easing due to increased competition from the growth COMPANIES, ESSENT AND NMI HOLDINGS, which by the way are seeing less growth. NMI HOLDING'S net income has not grown in over four quarters, if you deduct extraordinary items from deferred tax assets.

Reuters wrote this: "HURRICANE Costs Become Talk of Monte Carlo’s Reinsurance Rendez-Vous

September 10, 2017 by Tom Sims
As Hurricane Irma battered Florida on Sunday, the cream of the insurance world — gathered under the Mediterranean sun in Monte Carlo — was assessing the costs of the storm for the global industry.

The takeaway so far: Irma and its predecessor Hurricane Harvey, which caused massive flooding in Texas two weeks ago, are likely to take a toll on profits in a sector struggling with thin margins, stiff competition and falling prices."