EX-99 2 mtg-41516xexhibit99.htm EXHIBIT 99 Exhibit
Exhibit 99

Additional Information
 
 Q4 2015
 
 Q3 2015
 
 Q2 2015
 
 Q1 2015
 
 Q4 2014
 
 Q3 2014
 
New primary insurance written (NIW) (billions)
$
9.8

 
$
12.4

 
$
11.8

 
$
9.0

 
$
9.5

 
$
10.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Monthly premium plans (1)
7.7

 
10.2

 
9.5

 
6.9

 
7.9

 
8.8

 
Single premium plans
2.1

 
2.2

 
2.3

 
2.1

 
1.6

 
1.6

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Direct average premium rate (bps)
 
 
 
 
 
 
 
 
 
 
 
 
Monthly (1)
64.6

 
63.0

 
63.1

 
63.6

 
65.5

 
63.8

 
Singles
159.8

 
176.1

 
168.5

 
168.2

 
189.7

 
196.0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
New primary risk written (billions)
$
2.5

 
$
3.2

 
$
3.0

 
$
2.2

 
$
2.4

 
$
2.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Product mix as a % of primary flow NIW
 
 
 
 
 
 
 
 
 
 
 
 
    >95% LTVs
5
%
 
5
%
 
5
%
 
3
%
 
2
%
 
2
%
 
    Singles
22
%
 
18
%
 
20
%
 
23
%
 
17
%
 
15
%
 
    Refinances
17
%
 
12
%
 
20
%
 
29
%
 
17
%
 
12
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Primary Insurance In Force (IIF) (billions)
$
174.5

 
$
172.7

 
$
168.8

 
$
166.1

 
$
164.9

 
$
162.4

 
Flow only
$
164.0

 
$
161.8

 
$
157.5

 
$
154.5

 
$
153.0

 
$
150.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Persistency
79.7
%
 
80.0
%
 
80.4
%
 
81.6
%
 
82.8
%
 
82.8
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Primary Risk In Force (RIF) (billions)
$
45.5

 
$
45.0

 
$
44.0

 
$
43.2

 
$
42.9

 
$
42.3

 
     Flow only
$
42.5

 
$
41.9

 
$
40.8

 
$
40.0

 
$
39.6

 
$
38.8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Primary RIF by FICO (%) (6)
 
 
 
 
 
 
 
 
 
 
 
 
FICO 740 & >
47
%
 
47
%
 
46
%
 
46
%
 
46
%
 
45
%
 
FICO 700-739
24
%
 
24
%
 
24
%
 
23
%
 
23
%
 
23
%
 
FICO 660-699
16
%
 
16
%
 
16
%
 
16
%
 
16
%
 
16
%
 
FICO 659 & <
13
%
 
13
%
 
14
%
 
15
%
 
15
%
 
16
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average Coverage Ratio (RIF/IIF)
26.1
%
 
26.1
%
 
26.0
%
 
26.0
%
 
26.0
%
 
26.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average Loan Size (thousands)
$
175.89

 
$
174.58

 
$
172.37

 
$
171.05

 
$
170.24

 
$
169.05

 
Flow only
$
178.03

 
$
176.61

 
$
174.23

 
$
172.88

 
$
172.07

 
$
170.74

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Primary IIF - # of loans
992,188

 
989,020

 
979,202

 
970,931

 
968,748

 
960,849

 
Flow only
921,166

 
916,230

 
904,055

 
893,461

 
889,479

 
879,654

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Primary IIF - Default Roll Forward - # of Loans
 
 
 
 
 
 
 
 
 
 
 
 
Beginning Default Inventory
64,642

 
66,357

 
72,236

 
79,901

 
83,154

 
85,416

 
New Notices
18,459

 
19,509

 
17,451

 
18,896

 
21,393

 
22,927

 
Cures
(16,910
)
 
(17,036
)
 
(17,897
)
 
(21,767
)
 
(19,196
)
 
(19,582
)
 
Paids (including those charged to a deductible or captive)
(3,333
)
 
(3,958
)
 
(4,140
)
 
(4,573
)
 
(5,074
)
 
(5,288
)
 
Rescissions and denials
(225
)
 
(230
)
 
(172
)
 
(221
)
 
(183
)
 
(319
)
 
Items removed from inventory
—

 
—

 
(1,121
)
 
—

 
(193
)
 
—

 
Ending Default Inventory
62,633

 
64,642

 
66,357

 
72,236

 
79,901

 
83,154

 


Exhibit 99

Additional Information
 
 Q4 2015
 
 Q3 2015
 
 Q2 2015
 
 Q1 2015
 
 Q4 2014
 
 Q3 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Primary claim received inventory included in ending default inventory
2,769

 
2,982

 
3,440

 
4,448

 
4,746

 
5,194

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Composition of Cures
 
 
 
 
 
 
 
 
 
 
 
 
Reported delinquent and cured intraquarter
5,110

 
5,185

 
4,620

 
6,887

 
5,674

 
6,205

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of payments delinquent prior to cure
 
 
 
 
 
 
 
 
 
 
 
 
      3 payments or less
7,714

 
7,146

 
7,721

 
9,516

 
8,420

 
7,989

 
      4-11 payments
2,836

 
3,005

 
3,789

 
3,688

 
3,463

 
3,651

 
      12 payments or more
1,250

 
1,700

 
1,767

 
1,676

 
1,639

 
1,737

 
  Total Cures in Quarter
16,910

 
17,036

 
17,897

 
21,767

 
19,196

 
19,582

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Composition of Paids
 
 
 
 
 
 
 
 
 
 
 
 
Number of payments delinquent at time of claim payment
 
 
 
 
 
 
 
 
 
 
 
 
      3 payments or less
18

 
20

 
16

 
12

 
11

 
25

 
      4-11 payments
304

 
374

 
435

 
550

 
528

 
550

 
      12 payments or more
3,011

 
3,564

 
3,689

 
4,011

 
4,535

 
4,713

 
  Total Paids in Quarter
3,333

 
3,958

 
4,140

 
4,573

 
5,074

 
5,288

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Aging of Primary Default Inventory
 
 
 
 
 
 
 
 
 
 
 
 
  Consecutive months in default
 
 
 
 
 
 
 
 
 
 
 
 
      3 months or less
13,053

21
%
13,991

22
%
12,545

19
%
11,604

16
%
15,319

19
%
16,209

19
%
      4-11 months
15,763

25
%
14,703

23
%
15,487

23
%
18,940

26
%
19,710

25
%
18,890

23
%
      12 months or more
33,817

54
%
35,948

55
%
38,325

58
%
41,692

58
%
44,872

56
%
48,055

58
%
 
 
 
 
 
 
 
 
 
 
 
 
 
  Number of payments delinquent
 
 
 
 
 
 
 
 
 
 
 
 
      3 payments or less
20,360

33
%
20,637

32
%
19,274

29
%
19,159

27
%
23,253

29
%
23,769

28
%
      4-11 payments
15,092

24
%
14,890

23
%
15,710

24
%
18,372

25
%
19,427

24
%
18,985

23
%
      12 payments or more
27,181

43
%
29,115

45
%
31,373

47
%
34,705

48
%
37,221

47
%
40,400

49
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Primary IIF - # of Delinquent Loans
62,633

 
64,642

 
66,357

 
72,236

 
79,901

 
83,154

 
     Flow only
47,088

 
48,436

 
49,507

 
53,390

 
59,111

 
61,323

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Primary IIF Default Rates
6.31
%
 
6.54
%
 
6.78
%
 
7.44
%
 
8.25
%
 
8.65
%
 
     Flow only
5.11
%
 
5.29
%
 
5.48
%
 
5.98
%
 
6.65
%
 
6.97
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Exhibit 99

Additional Information
 
 Q4 2015
 
 Q3 2015
 
 Q2 2015
 
 Q1 2015
 
 Q4 2014
 
 Q3 2014
 
Reserves
 
 
 
 
 
 
 
 
 
 
 
 
  Primary
 
 
 
 
 
 
 
 
 
 
 
 
      Direct Loss Reserves (millions)
$
1,807

 
$
1,877

 
$
1,993

 
$
2,112

 
$
2,246

 
$
2,362

 
Average Direct Reserve Per Default
$
28,859

 
$
29,032

 
$
30,033

 
$
29,233

 
$
28,107

 
$
28,404

 
  Pool
 
 
 
 
 
 
 
 
 
 
 
 
      Direct loss reserves (millions)
$
43

 
$
49

 
$
52

 
$
57

 
$
65

 
$
69

 
      Ending default inventory
2,739

 
2,950

 
3,129

 
3,350

 
3,797

 
4,525

 
Pool claim received inventory included in ending default inventory
60

 
75

 
97

 
88

 
99

 
86

 
Reserves related to Freddie Mac settlement (millions)
$
42

 
$
52

 
$
63

 
$
73

 
$
84

 
$
94

 
  Other Gross Reserves (millions) (3)
$
1

 
$
2

 
$
3

 
$
3

 
$
2

 
$
3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Paid Claims (millions) (4)
$
188

 
$
207

 
$
222

 
$
232

 
$
248

 
$
263

 
     Total primary (excluding settlements)
$
164

 
$
190

 
$
196

 
$
217

 
$
225

 
$
242

 
     Settlements
$
—

 
$
—

 
$
10

 
—

 
$
6

 
—

 
     Pool - with aggregate loss limits
$
4

 
$
3

 
$
5

 
$
4

 
$
3

 
$
6

 
     Pool - without aggregate loss
     limits
$
2

 
$
3

 
$
3

 
$
2

 
$
3

 
$
3

 
     Pool - Freddie Mac settlement
$
10

 
$
11

 
$
10

 
$
11

 
$
10

 
$
11

 
     Reinsurance
$
(2
)
 
$
(5
)
 
$
(8
)
 
$
(8
)
 
$
(7
)
 
$
(7
)
 
     Other (3)
$
10

 
$
5

 
$
6

 
$
6

 
$
8

 
$
8

 
     Reinsurance terminations (4)
$
—

 
$
(15
)
 
$
—

 
$
—

 
$
—

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Primary Average Claim Payment (thousands)
$
49.1

 
$
48.2

 
$
48.6

 
$
47.4

 
$
45.0

 
$
45.8

 
     Flow only
$
45.6

 
$
44.8

 
$
45.1

 
$
44.2

 
$
44.6

 
$
43.5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reinsurance excluding captives
 
 
 
 
 
 
 
 
 
 
 
 
% insurance inforce subject to reinsurance
72.9
%
 
71.9
%
 
59.5
%
 
57.1
%
 
56.0
%
 
54.3
%
 
% Quarterly NIW subject to reinsurance
89.5
%
 
90.6
%
 
97.9
%
 
85.2
%
 
87.4
%
 
90.1
%
 
Ceded premium written (millions)
$
30.0

 
$
(46.8
)
(5
)
$
30.9

 
$
27.1

 
$
27.6

 
$
27.7

 
Ceded premium earned (millions)
$
30.0

 
$
11.0

(5
)
$
23.0

 
$
24.6

 
$
24.2

 
$
23.7

 
Ceded losses incurred (millions)
$
7.2

 
$
4.2

 
$
1.2

 
$
4.9

 
$
4.8

 
$
4.7

 
Ceding commissions (millions) (included in underwriting and other expenses)
$
11.4

 
$
(2.4
)
(5
)
$
11.7

 
$
10.1

 
$
10.0

 
$
9.9

 
Profit commission (millions) (included in ceded premiums)
$
27.0

 
$
34.9

(5
)
$
27.5

 
$
23.5

 
$
22.5

 
$
21.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Direct Pool RIF (millions)
 
 
 
 
 
 
 
 
 
 
 
 
    With aggregate loss limits
$
271

 
$
279

 
$
282

 
$
287

 
$
303

 
$
331

 
    Without aggregate loss limits
$
388

 
$
418

 
$
456

 
$
479

 
$
505

 
$
536

 
 
 
 
 
 
 
 
 
 
 
 
 
 


Exhibit 99

Additional Information
 
 Q4 2015
 
 Q3 2015
 
 Q2 2015
 
 Q1 2015
 
 Q4 2014
 
 Q3 2014
 
Bulk Primary Insurance Statistics
 
 
 
 
 
 
 
 
 
 
 
 
     Insurance in force (billions)
$
10.5

 
$
10.9

 
$
11.3

 
$
11.6

 
$
11.9

 
$
12.2

 
     Risk in force (billions)
$
3.0

 
$
3.1

 
$
3.2

 
$
3.2

 
$
3.3

 
$
3.5

 
     Average loan size (thousands)
$
148.15

 
$
149.00

 
$
149.93

 
$
149.90

 
$
149.75

 
$
150.77

 
     Number of delinquent loans
15,545

 
16,206

 
16,850

 
18,846

 
20,790

 
21,831

 
     Default rate
21.89
%
 
22.26
%
 
22.42
%
 
24.33
%
 
26.23
%
 
26.89
%
 
     Primary paid claims (millions)
$
39

 
$
47

 
$
46

 
$
50

 
$
36

 
$
46

 
     Average claim payment
    (thousands)
$
65.7

 
$
62.2

 
$
63.3

 
$
61.8

 
$
47.3

 
$
59.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage Guaranty Insurance Corporation - Risk to Capital
12.1:1

 
12.3:1

 
13.2:1

 
13.7:1

 
14.6:1

 
15.0:1

 
Combined Insurance Companies -
Risk to Capital
13.6:1

 
13.6:1

 
14.8:1

 
15.4:1

 
16.4:1

 
17.0:1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
GAAP loss ratio
(insurance operations only)
42.0
%
 
32.0
%
(2
)
42.3
%
(2
)
37.6
%
(2
)
54.8
%
(2
)
55.1
%
(2
)
GAAP underwriting expense ratio (insurance operations only)
13.9
%
 
14.4
%
 
15.0
%
 
16.4
%
 
13.9
%
 
14.9
%
 

Note: The FICO credit score for a loan with multiple borrowers is the lowest of the borrowers’ “decision FICO scores.” A borrower’s “decision FICO score” is determined as follows: if there are three FICO scores available, the middle FICO score is used; if two FICO scores are available, the lower of the two is used; if only one FICO score is available, it is used.

Note: Average claim paid may vary from period to period due to amounts associated with mitigation efforts.

(1) Includes loans with annual and split payments.

(2) As calculated, does not reflect any effects due to premium deficiency.

(3) Includes Australian operations.

(4) Net paid claims, as presented, does not include amounts received in conjunction with terminations or commutations of reinsurance agreements.

(5) In the third quarter of 2015, the April 2013 quota share reinsurance agreement was restructured via a commutation and new agreement. The effects of the new agreement for the third quarter of 2015 were as follows (in millions):
Ceded premium written
$
22.6

Ceded premium earned
$
22.6

Ceding commissions
$
9.2

Profit commissions
$
23.3


(6) Unknown FICO scores are reported in the "659 and <" FICO category.