NMI Holdings Inc (NMIH)

[tommiegun54]

MGIC(MTG) GOOD OPPORTUNITY/ALTERNATIVE TO NMIH

MGIC is expected to end 2019 with a book value of $12.02 according to CREDIT SUISSE ANALYSTS. While NMIH is trading at 2.3 times it's book value. MTG PRICE EARNINGS RATIO IS 7.28 VS 14 for NMIH.

MGIC PAYS A 2% DIVIDEND. MGIC has the highest net operating income of 4 PMI PUREPLAY COMPANIES. They ended 2018 at $660 million NOI.

CASH FLOW/POSITION: 'As of June 30, 2019, we had approximately $333 million in cash and, investments at our holding company. These resources are maintained
primarily to service our debt interest expense."(FROM SEC 10Q JUNE 2019)

If, MGIC WAS TO maintain a cash cushion of available assets EQUAL 20% in excess of requirements, they would have a book value of $13.26.

Capital Adequacy
PMIERs
As of June 30, 2019, MGIC’s Available Assets under PMIERs totaled
approximately $4.4 billion, an excess of approximately $1.1 billion over its
Minimum Required Assets; and MGIC is in compliance with the
requirements of the PMIERs and eligible to insure loans delivered to or
purchased by the GSEs.

Maintaining a sufficient level of Available Assets will allow MGIC to remain in compliance with the PMIERs financial
requirements, including, we believe, to the extent they are revised. Our
reinsurance transactions provided an aggregate of approximately $1.3
billion of PMIERs capital credit as of June 30, 2019.