SCHEDULE II-CONDENSED FINANCIAL INFORMATION OF REGISTRANT

12 Months Ended

Dec. 31, 2011

SCHEDULE II-CONDENSED FINANCIAL INFORMATION OF REGISTRANT [Abstract]

SCHEDULE II-CONDENSED FINANCIAL INFORMATION OF REGISTRANT

MGIC INVESTMENT CORPORATION

SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT

CONDENSED BALANCE SHEETS

PARENT COMPANY ONLY

December 31, 2011 and 2010

	2011			2010
	(In thousands)
ASSETS
Fixed maturities (amortized cost, 2011-$421,250; 2010-$844,383)	$	428,985		$	832,484
Cash and cash equivalents		57,636			58,380
Investment in subsidiaries, at equity in net assets		1,544,017			1,786,522
Accounts receivable - affiliates		-			686
Income taxes receivable		23,864			21,412
Accrued investment income		3,720			5,610
Other assets		11,785			16,530
Total assets	$	2,070,007		$	2,721,624
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Senior notes	$	170,515		$	376,329
Convertible senior notes		345,000			345,000
Convertible junior debentures		344,422			315,626
Accounts payable - affiliates		84			-
Accrued interest		13,171			15,609
Other liabilities		-			5
Total liabilities		873,192			1,052,569
Shareholders' equity
Common stock, (one dollar par value, shares authorized 460,000; shares issued 2011 and 2010 - 205,047; shares outstanding 2011 - 201,172 ; 2010 - 200,450)		205,047			205,047
Paid-in capital		1,135,821			1,138,942
Treasury stock (shares at cost, 2011 - 3,875; 2010 - 4,597)		(162,542	)		(222,632	)
Accumulated other comprehensive income, net of tax		30,124			22,136
Retained (deficit) earnings		(11,635	)		525,562
Total shareholders' equity		1,196,815			1,669,055
Total liabilities and shareholders' equity	$	2,070,007		$	2,721,624

See accompanying supplementary notes to Parent Company condensed financial statements.

CONDENSED STATEMENTS OF OPERATIONS

PARENT COMPANY ONLY

Years Ended December 31, 2011, 2010 and 2009

	2011			2010			2009
	(In thousands)
Revenues:
Equity in undistributed net loss of subsidiaries	$	(437,731	)	$	(270,844	)	$	(1,326,671	)
Investment income, net of expenses		15,693			5,573			1,026
Realized investment gains (losses), net		4,724			163			(38	)
Other income		27,688			-			27,378
Total losses		(389,626	)		(265,108	)		(1,298,305	)
Expenses:
Operating expenses		(133	)		2,116			350
Interest expense		103,271			98,589			89,266
Total expenses		103,138			100,705			89,616
Loss before tax		(492,764	)		(365,813	)		(1,387,921	)
Benefit from income taxes		(6,872	)		(2,078	)		(65,644	)
Net loss		(485,892	)		(363,735	)		(1,322,277	)
Other comprehensive income (loss), net		7,988			(52,019	)		180,944
Comprehensive loss	$	(477,904	)	$	(415,754	)	$	(1,141,333	)

See accompanying supplementary notes to Parent Company condensed financial statements.

CONDENSED STATEMENTS OF CASH FLOWS

PARENT COMPANY ONLY

Years Ended December 31, 2011, 2010 and 2009

	2011			2010			2009
	(In thousands)
Cash flows from operating activities:
Net loss	$	(485,892	)	$	(363,735	)	$	(1,322,277	)
Adjustments to reconcile net loss to net cash used in operating activities:		437,731			270,844			1,326,671
Equity in undistributed net loss of subsidiaries
Other		7,378			40,638			1,842
Change in certain assets and liabilities:
Accounts receivable - affiliates		770			658			(41	)
Income taxes receivable		(2,452	)		6,330			(54,755	)
Accrued investment income		1,890			(5,474	)		267
Accrued interest		(2,438	)		(33,795	)		33,286
Net cash used in operating activities		(43,013	)		(84,534	)		(15,007	)
Cash flows from investing activities:
Transactions with subsidiaries		(200,000	)		(200,000	)		(1,050	)
Purchase of fixed maturities		(130,503	)		(977,408	)		(6,618	)
Sale of fixed maturities		551,493			135,413			2,336
Net cash provided by (used in) investing activities		220,990			(1,041,995	)		(5,332	)
Cash flows from financing activities:
Repayment of note payable		-			-			(200,000	)
Repayment of long-term debt		(178,721	)		(1,000	)		(94,352	)
Net proceeds from convertible senior notes		-			334,373			-
Common stock shares issued		-			772,376			-
Net cash (used in) provided by financing activities		(178,721	)		1,105,749			(294,352	)
Net decrease in cash and cash equivalents		(744	)		(20,780	)		(314,691	)
Cash and cash equivalents at beginning of year		58,380			79,160			393,851
Cash and cash equivalents at end of period	$	57,636		$	58,380		$	79,160

See accompanying supplementary notes to Parent Company condensed financial statements.