Q2 2021 MGIC Investment Corp Earnings Call
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Yeah.
Good day and thank you for standing by welcome to MGIC Investment Corporation second quarter 2021 earnings call. At this time all participants lines are in a listen only mode. After the speaker's presentation. There will be a question and answer session to ask a question during the session.
I'll need to press star 1 on your telephone.
Please be advised that today's conference is being recorded.
If you require any further assistance. Please press star zero I would don't liked he had to call over to your speaker today, Mr. Mike Zimmerman Senior Vice President Investor Relations. Please go ahead.
Thanks, Linda good morning, and thank you for joining us this morning and for your interest in MGIC Investment Corporation, joining me on the call today to discuss the results for the second quarter of 2021, our Chief Executive Officer, Tim Mattke, and Chief Financial Officer, Nathan Colson.
I wanted to remind all participants that our earnings release last evening, which may be accessed on Mgic's website, which is located at MTG MGIC com under newsroom includes additional information about the company's quarterly results that we will refer to during the call and includes a reconciliation of non-GAAP.
Financial measures for the most comparable GAAP measures.
We've also posted on our website a presentation that contains information pertaining to our primary risk in force.
And threatened reinsurance transactions and other information, which we think you will find valuable.
I also want to remind listeners that from time to time, we may post information about our underwriting guidelines on other presentations.
Our corrections for the past presentations on our website that investors and other interested parties would find valuable as well.
During the course of this call we may make comments about our expectations of the future actual results could differ materially from those contained in these forward looking statements.
Additional information about those factors, including COVID-19 that could cause actual results to differ materially from those discussed on the call are contained in the form 8-K and form 10-Q that were filed last night.
If the company makes any forward looking statements, we're not undertaking an obligation to update those statements in the future in light of subsequent developments.
Further no interested parties should rely on the fact that such guidance or forward looking statements are current at.
Any time other than time on this call or the issuance of the form 8-K or form 10-Q.
With that I'd like to turn the call over to Tim Mattke.
Mike Good morning, everyone.
I am pleased to report that we produced another quarter of very strong financial results.
After my opening remarks, Nathan will provide more detail about our financial results and capital position.
Then before we open up the line for questions I'll wrap up by discussing the current operating environment, including activities related to finding finance housing policy.
During the quarter, we earned GAAP net income of $153.1 million.
Our quarterly financial results reflect the solid credit quality of our insurance in force, a strong housing market or decreasing delinquency rate and improving economic conditions as many local economies return to pre pandemic levels of activity.
We had another busy quarter for you wrote a record $33.6 billion of new business, which more than offset the pressure of lower annual persistency on our existing book of business and resulted in our insurance in force growing to $262 billion nearly 14% higher than the same period last year.
An increasing percentage of our new insurance written as from purchase transactions accounting for 79% of our <unk> in the second quarter compared to 60% last quarter our.
Our application pipeline, a leading indicator of an IW indicate this trend has continued with purchase transactions continuing to account for more than 85 per cent of applications received in recent months.
Well <unk> in the first half for the year was strong we expect that ITW will slow in the second half of the year, primarily due to the reduction of refinance activity.
While the current supply of housing inventory available for purchase remains low we still expect robust purchase market conditions to persist.
Consumer demand for many reasons remained strong and interest rates for attractive, especially by historical standards.
Home prices have been increasing rapidly given the low housing inventory and the strong demand.
We believe that home prices may be increasing for more sound reasons that on in 2005.2007 cycle.
So while we do not expect broad declines in home prices, we do expect that the rate of increase blood flow.
These conditions, along with increasing annual persistency should allow our insurance in force to continue to grow although perhaps at a slower annual rates and we have been enjoying in recent quarters.
Taking a look at our insurance in force portfolio, our loss ratio was a low of 11, 6% from the quarter.
This result, primarily reflects the improving economic conditions, the quality of our existing book of business and a low number of new delinquency notices received.
It continued to be encouraged by the positive trends, we're seeing on credit performance, which continued through July.
At quarter end, we maintained at $2.3 billion excess over pmiers minimum required assets and our Pmiers sufficiency ratio was 167% at the end of the second quarter.
Reflecting our capital position and long term confidence in our transformed business model on $150 million dividend from MGIC to our holding company was declared and paid after the end of the second quarter and our holding company board authorized a 33% increase in the quarterly common stock dividend.
Our capital management strategy centers on maintaining financial flexibility at both the holding company and the writing company to protect our policyholders and to create long term value for shareholders.
This value to be created by writing more primary mortgage insurance pursuing new business opportunities retiring debt paying dividends or repurchasing stock.
In summary, we continually look for ways to maximize near term business opportunities while remaining focused on the long term success of the company.
I believe the actions we have taken prior to and during the Covid pandemic support this statement.
We have a strong and dynamic balance sheet, we are confident in our positioning in this market and we like the risk reward equation that the current conditions offer with that let me turn it over to Nathan.
Thanks, Tim and good morning.
Tim mentioned, we had another strong quarter of financial results in the second quarter, we earned $153 million and net income for 44 per diluted share and generated an annualized 13% return on beginning shareholders' equity.
This compares to $14 million for net income or <unk> <unk> per diluted share. It on the same period last year.
Of course, the second quarter of last year was impacted by the material increase in delinquencies related to COVID-19, and the associated increase in net losses incurred.
During the quarter total revenues for $298 million compared to $294 million last year with the increase primarily due to higher net premiums earned.
The main driver of the increase in net premiums earned for <unk>.
<unk> profit Commission earned through our quota share reinsurance transactions in the current quarter compared to the second quarter of last year, mainly due to the lower level of losses ceded in the current period compared to last year.
The net premium yield for the second quarter was $39.1 basis points, which was down 1.8 basis points compared to last quarter.
The decrease was primarily a result in.
And the decline in in force premium yield with the run off through attrition of older policies, which generally have higher premium rates.
As refinance activity decrease we also realized less benefit from accelerated premiums earned from single premium policy cancellations.
During the quarter, they totaled $20 million compared to $28 million last quarter and $33 million on the second quarter of 2020.
Shifting over to credit net losses incurred for $29 million on the second quarter compared to $217 million on the same period last year and $40 million last quarter.
In the second quarter, we received approximately 9000, new delinquency notices which represents less than 1% of the number of loans insured as of the start of the quarter and is 30% less than the number of notices received last quarter.
We are encouraged by the credit trends, we're experiencing including the low level of early payment defaults and believe they are good indicators of near term credit performance.
The estimated claim rate on new notices received in the second quarter of 2021 was approximately 7.5% compared to approximately 7% in the second quarter of 2020.
The reserve for incurred but not reported or <unk> increased by $4 million to approximately $24 million compared to an increase of $30 million on the second quarter of 2020.
The increase this quarter is primarily due to the recording of a small loss related to some lingering litigation associated with policy disputes from several years ago.
Our review of loss reserves on previously received delinquent notices determined that there was immaterial loss reserve development in the quarter.
Compared to $10 million of unfavorable development in the second quarter of last year.
Barring any material economic shocks. It appears that the second quarter of 2020 was the exception rather than the rule regarding the credit losses related to the pandemic.
While we are seeing cure activity from the large cohort of delinquency notices received in the second quarter of 2020.
We have not yet seen enough evidence to make any reserve adjustments on these COVID-19 related delinquencies.
Of the approximately 43000 loans on our delinquency inventory at June 30, approximately.
Approximately 55% or 23600 loans were reported to us to be on forbearance and we estimate that the substantial majority of those loans in forbearance will reach the end of their forbearance period in the second half of 2021.
The number of claims received in the quarter remained very low and were down 35% from the same period last year due to the various foreclosure and eviction moratoriums and primary pay claims in the quarter remained low at $11 million.
Since foreclosure and eviction moratoriums for GSE loans have been extended and the CFPB has introduced additional procedural safeguards, we expect claim payments to remain modest for the next few quarters.
Next I wanted to spend a couple of minutes talking about our balance sheet and capital position and our approach to capital management.
We continue to believe that our balanced approach to maintaining a strong capital position, including the use of forward commitment quota share treaties by accessing the capital markets for excess of loss reinsurance via aisle on transactions provides the most flexibility to maximize the long term value of both the writing company and the holding company.
As Tim mentioned this value can be created by writing more primary mortgage insurance pursuing new business opportunities retiring debt paying dividends or repurchasing stock.
Our goal is to maintain financial flexibility at both the holding company and the writing company.
At the holding company this means maintaining a target level of liquidity well in excess of our near term needs.
At the operating company it means maintaining a robust level of excess to pmiers significant enough to enable growth even in times of stress and to be well positioned for any changes to our operating environment.
These target levels are dynamic and changes the operating environment changes.
At the end of the second quarter, we had approximately $772 million of holding company liquidity and a $2.3 billion access to the P. Myers minimum requirements at the writing company.
There were 2 transactions subsequent to quarter on that directly support our goal of having financial flexibility at both the holding company underwriting company.
First we completed our fifth excess of loss reinsurance transaction executed through on IL on the third such transaction in the last 10 months.
This most recent transaction provides $400 million of loss protection and increases our pmiers excess.
Second we paid $150 million dividend from MGIC to our holding company.
Okay. Thank.
Taking a deeper dive on the holding company. We have said for some time that we have a target level of liquidity that is designed to maintain funds for multiple years of interest payments on outstanding debt near term maturing debt principal strategic growth opportunities in our quarterly common stock dividend.
The holding company liquidity is above our current target levels, which supported the 33% increase from the common stock dividend.
Additionally, in the third quarter, we intended we intend to resume our share repurchase program and we expect that we will fully use the remaining $291 million repurchase authorization prior to its expiration at year end 2021.
Taking a closer look at the writing company. It is a $2.3 billion of excess.
<unk> requirement as of June 30, or 167% Pmiers sufficiency ratio, which was above our current target level and supported the $150 million dividend from MGIC to our holding company.
Going forward, we will continue to assess mgic's capital position and we'll continue discussions with the OCI, but additional dividends to our holding company as appropriate.
As Tim mentioned.
We feel we are well positioned to capitalize on the market opportunities that a robust housing market should make available to us.
Given our strong market presence a growing in force book of business that is currently generating a low level of delinquencies, our comprehensive reinsurance program and the quality of the new business being written.
We believe that our holding company and writing company capital management strategy will create long term value for shareholders, while allowing us to continue to be a well capitalized counterparty for our customers.
With that let me turn it back to Tim.
Thanks Nathan.
For moving to questions, let me address a few additional topics.
The early indications from the <unk> administration, although it is going to focus its housing policy efforts on access to sustainable and affordable housing foreclosure and eviction mitigation for homeowners impacted by COVID-19, and ensuring a successful economic recovery for close to large scale changes for the housing finance infrastructure.
Although it's early in the tenure of the new FHFA acting director Sandra Thompson at this time, we are not aware of any policy initiatives that will provide new challenges for our company our industry.
I expect it will see a more coordinated effort from the various housing agencies of the U S government over the next several years.
We will continue to advocate for increased use of private mortgage insurance and housing policy finance industry in order to reduce taxpayer exposure to housing while still maintaining a resilient housing finance system.
Long term I remain encouraged about the future role that our company and industry can play on housing finance and believe that other regulators and policymakers share a similar view.
The COVID-19 pandemic reminding all housing finance participants that some options to credit enhancement for high LTV loans can be scarce or unavailable at various points in the economic cycle. However, our company and industry. We're organized solely to provide credit enhancement solutions to lenders borrowers and the Gse's and all economic cycle.
Not only is private mortgage insurance offer dedicated capital day in day out for the housing industry now for as many solutions and a great value proposition for lenders and consumers to overcome the number 1 barrier to homeownership for down payment.
At MGIC, we are focused on providing critical support for the housing market, especially low and moderate income and first time homebuyers.
In summary, we're currently writing high levels of new insurance and are experiencing decrease in levels of delinquencies, both newly reported and those already in our delinquency inventory.
We have a book of business that has strong underlying credit characteristics, which is supported by a strong and dynamic balance sheet with a low debt to capital ratio and investment portfolio of nearly $7 billion contractual premium flow and a robust reinsurance program.
I am confident in our positioning in the market and we like the risk reward equation for the current conditions offer.
We have the right team in place to build off our solid foundation to continue to deliver competitive offerings and best in class service to our customers and generate strong returns for our shareholders.
With that operator, let's take questions.
Thank you reminder, to ask a question you will need the star 1 on your telephone.
Let me draw your question Chris.
And please standby, while we compile the Q&A roster.
Your first question is from Mark Mcgivney.
Your line is open.
Yes. Thanks.
To drill down a little more on kind of the excess capital position.
Nathan Thanks for all the color.
Full but could.
Could you elaborate first on you know what.
That expectation.
You have for kind of continued.
Dividends up from the writing company and then maybe help us quantify how to think about the excess liquidity at the holding company you know.
Just given kind of some of the maturities that you have.
Dividend obligations and kind of what that leaves for potential buybacks.
Sure market, it's Tim I'll take the first part of the question on debit capacity and let Nathan answer a little bit on the holding company from a dividend standpoint, we're really excited to be able to turn that dividend stream back on from MGIC to the holding company as you know once the pandemic started we ceased those dividend.
We felt it was the right time, we are happy that our regulator. The OTI felt it was the right time, so I think the level of that.
Of the 150 is reflective of a period, where we werent dividend ing out.
But we also view that we're going to have hopefully strong financial results and we'll continue discussions from the LTI about future dividend.
But it's too early to say at what level and what the cadence of that might be.
Mark It's Nathan just relative to the to the holding company.
Think we laid out on the list that we think of for for what we'd like liquidity to cover I think also felt comfortable that with the $150 million dividend coming up that we do expect to use the full remaining repurchase authorization. So I think clearly felt like we had a little bit above our target levels, but.
We haven't gotten too specific on exactly what those target levels are I think partly because we do view them as dynamic.
Want to be able to react to the current market in current conditions as appropriate. So I think just leave you with we do feel like we had above target levels, which supported the actions that we've taken and will continue to reassess that going forward.
Okay got it just a few clarifying points.
Do you expect to ultimately get back to kind of a regular cadence on those dividends up from the running company like you had.
Kind of pre Covid and does the $770 million of Holdco liquidity that you mentioned maybe from does that already include the 150.
Mark This is Nathan I'll take the I'll take the last question. There first for $770 million was as of June 30th for $150 million dividend was paid subsequent so that would be in addition to that something on a pro forma basis slightly above $900 million.
Got it okay, yes.
Yeah, Mark to your question about regular cadence, Mike My hope would be we get back to regular cadence I think what ultimately is most important is to be able to have the dialogue to get out the amount that we think we should get out of MGIC and the POC is comfortable with.
So I don't know if that means that we're back on a quarterly cadence right now, but that was how we were operating pre COVID-19.
Right now my hope and expectation would be we would get back to that but again, we will continue to have those conversations with our regulator.
Okay, great. Thank you.
Thanks.
Your next question is from Bose George Your line is now open.
Hey, guys good morning.
So just 1 more on the on the capital in terms of the excess at the Holdco.
The extent that the you know the next maturity is yes essentially.
Refinance.
Does that sort of increase the excess.
Net point the way you guys look at it.
Bose, It's Nathan I think right now the <unk>.
Liquidity target would include the fact that we've got some debt maturing in the next couple of years. So if if that wasn't the case, then we would kind of reassess based on on those conditions.
Okay, great. Thanks, and then actually just switching over to your.
On your default to claim so that was 8.
8% this quarter.
And I guess it was on new notices versus 7% earlier. So just curious about the drivers of that.
Yes, it's Nathan again, I think in the prepared remarks, the new notice claim rate was approximately 7.5%.
So that's up a little bit flat quarter over quarter, but up a little bit from the second quarter of last year, but.
The the number of forbearance notices in the second quarter last year was on.
Off memory, I think north of 80%, whereas it's more normalized today so.
Really didn't view much changed from our perspective, and the new notice claim rate this quarter compared to where we'd been trending over the last few quarters.
Okay, great. Thanks, maybe just 1 more in terms of the reduction in the premium margin.
1 basis point or a little over this quarter can.
Can we see that that cadence kind of continue for the next few quarters.
And when should that bought them.
Yes, Nathan again, I do think what we've said for some time as we do expect that to continue to trend down I think the exact pace, particularly of the net premium yield is more difficult to judge quarter over quarter due to.
Reinsurance transactions and due to accelerated singles.
But focusing on that in force premium yield that has been coming down between basis point on a basis point and a half.
I do think I think that's a decent run rate for at least the next couple of quarters, but as you get out much beyond that it really starts to become dependent on a lot of other <unk>.
Variables and factors, so where that bottoms out or if it.
I think that's that's probably a little difficult to say and really subject to a lot of things that haven't happened yet that will happen through the balance of 'twenty, 1 and into 'twenty 2 and beyond.
Okay, great. Thanks.
Okay.
Your next question is from Geoffrey Dunn. Your line is now open.
Thanks, I wanted to revisit capital.
Entering COVID-19 your Opco dividends strategy had evolved too I think it was 70 million a quarter supplemented with a special.
Would that still be the intention going forward or are you thinking about trying to increase the quarterly amount to something much more substantial for possibly just shifts from Daniel specials.
Jeff It is.
Tim It's a good question I would tell you we continue dialogue with the OCI and that our preference had been the quarter lease because it matched up to dividend and interest cash flow at the holding company.
In response to the question I really that's why I hope to get back there, but ultimately I think that combination along with a special I think that worked well for us.
And I my expectation is that we can get back there based upon sort of what I know at this point.
But I am more focused I think on the level that we can get out on an annual basis.
And so that's why I guess on hedging a little bit it's just.
Until we see that we're back on a quarterly cadence I don't want to I guess over promise that quarterly cadence versus continue that dialogue with the OCI.
Okay, and then as you consider dividends I mean, I think a lot of people think of it as opportunity, but obviously the excess capital buildup as anoro drag.
So and I mean.
I don't know no matter what measure you look at it.
The industry is moving too much capital.
Are there any surplus constraints from managements or board's perspective is there a certain level that you'd prefer to hold on.
Since it seems like some companies can bring that down as well as just a couple of hundred million.
Jeff It's Nathan I'd say, our primary operating company MGIC has about $1.4 billion in surplus maybe 1.3.
So I don't think we would be at this point, particularly close to any floor level. So.
If that is something that we consider I don't think it would be in the near term.
But I think we've observed the same thing that the regulators have gotten comfortable with the companies running with relatively little surplus, but still a lot of capital when you consider contingency reserves.
Okay.
And then the last thing is on.
2 pieces of debt, you're I think that'll be notes and on the senior notes coming due in 'twenty 3.
Is a mid to upper teens.
For the cap ratio still appropriate in the industry from your perspective.
Or is there a desire to run lower than that considering the leverage that islands about it.
Yeah.
It's Nathan I think it's a really good a really good question I mean, the federal home loan bank debt for US initially was used to provide liquidity for the operating company to repurchase the outstanding Junior converts that the holding company had had issued so I don't think we view that as kind of permanent capital.
I've looked at repaying it but don't like the economics of doing that right now so that's going on I think just kind of run off with really no.
Thought at this point around refinancing that in terms of the long term debt to capital ratio I think we're pretty comfortable with where we are today I don't feel like we need to kind of delever.
But at the same time, I think would be comfortable with the longer term debt to capital ratio, that's below where we are today.
I think Moody's for instance has put out there is that.
1 of the factors potentially leading to an upgrade or be a debt to capital on the 15% range.
So I think something in the in the mid teens would also be comfortable for us overtime.
Okay.
Okay. Thank you.
Okay.
Your next question is from Colin Jensen.
Your line is now open.
Hey, Thanks, Good morning, Thanks for taking my question.
On a good bit about capital here, but just kind of looking at that August excess of loss deal.
Is it fair to think of the recent dividend increase and share repurchase resumption almost as a.
Byproduct of the capital that was freed up there or are those decisions kind of already made before that.
On a reinsurance was contemplated.
Yeah.
Yeah. Good question Nathan.
Yeah, I would I think that's certainly a piece of it I mean, the the island that we did in <unk>.
August was like I said like I said in the prepared remarks for the third transaction on the last 10 months for us It certainly could.
<unk> to execute on on our risk distribution strategy. So I.
I don't I wouldn't tie 1 for 1 I think it's a holistic of the capital that we've organically generated plus the reinsurance treaties that we've done.
And most importantly, just how the operating results have improved post the second quarter of last year.
But I wouldn't I wouldn't probably make drive too tight.
Have a link I guess between.
On the August <unk> issuance and these transactions.
Got it. Thank you that's helpful. And then just kind of shifting gears, a little bit to the home price depreciation so kind of given the rate of home price appreciation we've seen.
Borrowers in a position of positive home equity.
Should reduce the incentive to kind of go to foreclosure for borrowers that are in the situation are you seeing that play out in the data that you have available to you.
Hi.
I think it's Nathan again, I mean at this point, it's really difficult with the foreclosure moratoriums and the like we're just not seeing a lot of progress through.
But certainly broad based home price appreciation is a positive for claim incidents and potentially a positive for severity as well, but you know like we've said over time.
Even in a rising home price markets, we still pay claims and we're dealing with average is there and the like.
The loans that go to claim are on average loans.
So I do think that it is.
It would be a benefit we've certainly seen that in the kind of paid 2 exposure ratios that we put out being below 100. The last few quarters I think thats reflective of the current environment, but.
I still think even and rising home price environments, we still expect that we're going to pay claims.
Okay, So we might be able to see a little bit.
More color on that as the port closure Moratoria.
Run out.
Thank you.
Those are all my questions.
Thanks.
Your next question is from Mihir Bhatia. Your line is now open.
Hi, Good morning, and thank you for taking my question.
Lot of the capital we're doing the questions have been asked already so maybe I'll just ask a quick 1 on the line.
<unk> and delinquencies you resolved for delinquency is up to about 21.
400.
That's about the level. It was in 2018.2019, so what Im I guess my question is how should we be how are you thinking about it or how should we be thinking about it trending from here.
Just trying to understand given the strong home price appreciation and the fact that so many of your delinquencies are still forbearance for me David I'm, a little surprised that it would stay that high and maybe.
How should we be thinking about that from the heel like as you know.
The situation develops.
Sure.
It's Nathan.
It's largely a function of the fact that so few delinquent loans are being resolved via claim at this point.
So.
Until we're comfortable making changes to our initial estimates.
The kind of way the math works is that the the loans that cure you.
They don't really change your estimates show than the average reserve for the ones that remain continues to go up and with forbearance periods being extended to 18 months and with foreclosure moratorium. It's it's not clear whether theres going to be a lot of kind of paid resolution through the balance of this year, maybe not even into early next year. So.
I don't think that that is.
It's not really a change in reserve for.
Philosophy or methodology or a belief that those loans are now going to be worse than they were a quarter or 2 ago, just the fact that.
We're not seeing the resolution so those that remain we've got a lot more on the 12 months.
Delinquent.
Delinquent buckets than we had at that time.
So so I think it's largely just kind of an artifact of the current situation and the fact that there's really nothing being resolved right now other than cares so until we're ready to comfortable on I've seen enough data to feel like we want to adjust our initial estimates I think that that same.
On processes will continue to play out.
And Mike just to add to.
The 8 all of the things they said about agent is true, but the the vintage years too because of the forbearance right. There are a lot of newer loans like the 18.19 book sales have higher balances in 13 and 14, so if off.
All what Nathan said, plus you have larger loans.
Got it.
Okay.
That is very helpful. Thank you and then just 1 question more for me on pricing just wanted to.
I understand it's difficult to predict.
Imports needed if you will but your comment about <unk> in general I appreciate that but maybe talk about just the pricing and Lam and the day that youre seeing in the market well. It is like 2 quarters ago or a quarter ago, even where it felt like there was a lot more talk about on.
Competitive intensity all from.
From some price competition.
More I guess higher level of price competition, taking place what do you what are you seeing in the market today. Thank you.
Yeah, It's Tim.
Again, we don't like to talk to specific on pricing I think you know I look back over the last 12 months to 18 months and I think we've talked about before as I said on the pandemic a higher risk associated with a perceived risk associated with the loans that we're insuring.
From our perspective at least.
Yet I assume others on the industry.
So we saw price increases I think thats normalized come down over the period of time as the economies.
Continue to be I guess robust at housing in particular is that not only resilient, but actually been really strong.
And so I think you saw sort of pricing normalize and as we've talked I think last quarter I think maybe.
From a credit standpoint, we see what we see as far as what we're reflecting on our pricing we don't necessarily know exactly how other people are viewing it but I think it's safe to assume based upon.
What what you can observe and what we've heard other people say.
That people feel really good with this current market Chris the current housing market current economy and pricing is reflective of that but still generating strong returns and we still feel really good about the risk return equation.
Okay. Thank you.
Sure.
Yes.
And then for your questions I would now like to turn the call back teams from the line of Jpmorgan. Sir. Please go ahead.
Sure. This is Tim just wanted to thank everyone for their interest in MGIC.
And we will talk soon thanks.
And this concludes today's conference call. Thank you for participating you may now disconnect.
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Yes.
On.
On the book.
Okay.
For us.
Okay.
Sure.
Yes.
Yes.
Yes.
Sure.
Yes.
Yes.
Sure.
Okay.
Yes.
Okay.
Okay.
Sure.
Sure.
Okay.
Okay.
Okay.
Right.
Okay.
Yes.
Yes.
Okay.
Okay.
Okay.
Okay.
Yes.
Okay.
Yes.
Okay.
Okay.
Okay.
Okay.
Sure.
Yes.
Okay.
Yes.
Okay.
Okay.
Thanks.
Okay.
Okay.
Okay.
Okay.
Yes.
Yes.
Okay.
Yes.
Yes.
Okay.
Yes.
Okay.
Okay.
Sure.
Okay.
Okay.
Okay.
Yes.
Okay.
Okay.
Okay.
Yes.
Yes.
Okay.
Okay.
Okay.
Sure.
Right.
From.
Okay.
Yes.
Okay.
Okay.
Okay.
Okay.
Yes.
Yes.
Thank you.
Yes.
Okay.
Okay.
Okay.
Yes.
Okay.
Okay.
Okay.
Okay.
Yes.
Okay.
Bottom line.
Yes.
Yes.
Okay.
Okay.
Okay.
Okay.
Okay.
Okay.
Sure.
Yes.
Okay.
Yes.
Okay.
Okay.
Okay.
Sure.
Okay.
Okay.
Yes.
Sure.
Okay.
Okay.
Okay.
[music].
Okay.
Okay.
Yes.