Summary
- MGIC Investment Corporation is one of the leading mortgage insurance companies in the United States.
- The stock trades at just 84% of book, pays a 3.14% dividend and is buying back stock strategically while reducing debt.
- Losses are likely to increase, but the company has conservatively reduced risk using reinsurance and should remain solidly profitable even during a recession.
- MTG has generated average ROEs in the teens over the last 6 years and should be able to continue that average over the business cycle.
For further details see:
MGIC Investment Corporation: Strong Buy At 84% Of Book Value