MGIC Investment : Quarterly Statement (as of September 30, 2022)

STATEMENT AS OF SEPTEMBER 30, 2022 OF THE MORTGAGE GUARANTY INSURANCE CORPORATION

ASSETS

			Current Statement Date		4
		1	2		3	December 31
					Net Admitted Assets	Prior Year Net
		Assets	Nonadmitted Assets		(Cols. 1 - 2)	Admitted Assets
1.	Bonds	5,754,302,208			5,754,302,208	5,877,606,312
2.	Stocks:
	2.1 Preferred stocks
	2.2 Common stocks	380,362,967	3,153,331		377,209,636	370,591,803

3. Mortgage loans on real estate:

1. First liens
2. Other than first liens

4.	Real estate:
	4.1 Properties occupied by the company (less $
		encumbrances)				12,267,365		12,267,365	12,673,779
	4.2 Properties held for	the production of income (less
		$		encumbrances)
	4.3 Properties held for sale (less $
		encumbrances)				1,380,269		1,380,269	1,506,656
5.	Cash ($	2,238,701 ), cash equivalents
	($	171,309,822	) and short-term
	investments ($		58,633,995 )		232,182,518		232,182,518	133,585,821
6.	Contract loans (including $		premium notes)

7. Derivatives

8.	Other invested assets	75,253	75,253
9.	Receivables for securities	155,430		155,430	520,000
10.	Securities lending reinvested collateral assets

11. Aggregate write-ins for invested assets

12.	Subtotals, cash and invested assets (Lines 1 to 11)	6,380,726,010	3,228,584	6,377,497,426	6,396,484,371
13.	Title plants less $	charged off (for Title insurers
	only)
14.	Investment income due and accrued		49,054,139		49,054,139	46,825,408
15.	Premiums and considerations:
	15.1 Uncollected premiums and agents' balances in the course of collection	56,295,729		56,295,729	55,719,482

15.2 Deferred premiums, agents' balances and installments booked but deferred and not yet due (including $

	earned but unbilled premiums)
15.3	Accrued retrospective premiums ($	) and
	contracts subject to redetermination ($	)
16. Reinsurance:
16.1	Amounts recoverable from reinsurers		213,504		213,504	36,269,541
16.2	Funds held by or deposited with reinsured companies
16.3	Other amounts receivable under reinsurance contracts

17. Amounts receivable relating to uninsured plans

18.1	Current federal and foreign income tax recoverable and interest thereon
18.2	Net deferred tax asset	186,146,243	142,360,789	43,785,454	28,635,574
19.	Guaranty funds receivable or on deposit
20.	Electronic data processing equipment and software	2,896,313	555,356	2,340,957	1,760,782

21. Furniture and equipment, including health care delivery assets

($

)

35,498,108

35,498,108

22. Net adjustment in assets and liabilities due to foreign exchange rates

23.	Receivables from parent, subsidiaries and affiliates	2,306,207		2,306,207	4,321,235
24.	Health care ($	) and other amounts receivable
25.	Aggregate write-ins for other than invested assets	142,327,131	135,366,605	6,960,526	7,112,112
26.	Total assets excluding Separate Accounts, Segregated Accounts and
	Protected Cell Accounts (Lines 12 to 25)	6,855,463,384	317,009,442	6,538,453,942	6,577,128,505

27. From Separate Accounts, Segregated Accounts and Protected Cell Accounts

28.	Total (Lines 26 and 27)	6,855,463,384	317,009,442	6,538,453,942	6,577,128,505
	DETAILS OF WRITE-INS
1101.
1102.
1103.
1198.	Summary of remaining write-ins for Line 11 from overflow page
1199.	Totals (Lines 1101 through 1103 plus 1198)(Line 11 above)
2501.	Prepaid post retirement assets	121,670,820	121,670,820
2502.	Prepaid expenses	13,695,785	13,695,785
2503.	ILN expense premium	6,360,214		6,360,214	6,704,202
2598.	Summary of remaining write-ins for Line 25 from overflow page	600,312		600,312	407,910
2599.	Totals (Lines 2501 through 2503 plus 2598)(Line 25 above)	142,327,131	135,366,605	6,960,526	7,112,112

NOTE: We elected to use rounding in reporting amounts in this statement.

2

STATEMENT AS OF SEPTEMBER 30, 2022 OF THE MORTGAGE GUARANTY INSURANCE CORPORATION

LIABILITIES, SURPLUS AND OTHER FUNDS

			1	2
			Current	December 31,
			Statement Date	Prior Year
1.	Losses (current accident year $	98,578,004 )	519,844,870	761,730,043
2.	Reinsurance payable on paid losses and loss adjustment expenses	53	24,831
3.	Loss adjustment expenses		36,721,842	53,384,121

4. Commissions payable, contingent commissions and other similar charges

5.	Other expenses (excluding taxes, licenses and fees)			50,426,553	57,282,935
6.	Taxes, licenses and fees (excluding federal and foreign income taxes)			3,918,992	5,765,283
7.1	Current federal and foreign income taxes (including $	on realized capital gains (losses))		10,310,333	17,844,892
7.2	Net deferred tax liability
8.	Borrowed money $	and interest thereon $				155,254,932
9.	Unearned premiums (after deducting unearned premiums for ceded reinsurance of $	and
	including warranty reserves of $	and accrued accident and health experience rating refunds
	including $	for medical loss ratio rebate per the Public Health Service Act)		160,453,707	188,380,276
10.	Advance premium
11.	Dividends declared and unpaid:
	11.1 Stockholders
	11.2 Policyholders
12.	Ceded reinsurance premiums payable (net of ceding commissions)			12,685,443	17,653,709
13.	Funds held by company under reinsurance treaties
14.	Amounts withheld or retained by company for account of others			5,770,980	7,321,416
15.	Remittances and items not allocated				1,073,154	504,612
16.	Provision for reinsurance (including $	certified)
17.	Net adjustments in assets and liabilities due to foreign exchange rates
18.	Drafts outstanding
19.	Payable to parent, subsidiaries and affiliates				2,158,597

1. Derivatives
2. Payable for securities

22. Payable for securities lending

23. Liability for amounts held under uninsured plans

24.	Capital notes $	and interest thereon $
25.	Aggregate write-ins for liabilities			4,509,027,761	4,092,727,820
26.	Total liabilities excluding protected cell liabilities (Lines 1 through 25)			5,310,233,688	5,360,033,467
27.	Protected cell liabilities
28.	Total liabilities (Lines 26 and 27)			5,310,233,688	5,360,033,467
29.	Aggregate write-ins for special surplus funds
30.	Common capital stock				5,000,000	5,000,000
31.	Preferred capital stock
32.	Aggregate write-ins for other than special surplus funds
33.	Surplus notes
34.	Gross paid in and contributed surplus			1,098,231,032	1,289,320,525
35.	Unassigned funds (surplus)				312,571,163	110,356,454
36.	Less treasury stock, at cost:
	36.1	shares common (value included in Line 30	$	)	187,581,941	187,581,941
	36.2	shares preferred (value included in Line 31	$	)
37.	Surplus as regards policyholders (Lines 29 to 35, less 36)			1,228,220,254	1,217,095,038
38.	Totals (Page 2, Line 28, Col. 3)			6,538,453,942	6,577,128,505
	DETAILS OF WRITE-INS
2501.	Contingency reserve per Wisconsin Administrative Code Section 3.09(14)		4,461,171,266	4,056,128,239
2502.	Accrual for premium refunds				28,100,000	37,300,000
2503.	Liability for pension benefits			19,156,458	(3,263,505)
2598.	Summary of remaining write-ins for Line 25 from overflow page			600,037	2,563,086
2599.	Totals (Lines 2501 through 2503 plus 2598)(Line 25 above)			4,509,027,761
		4,092,727,820
2901.
2902.
2903.
2998.	Summary of remaining write-ins for Line 29 from overflow page
2999.	Totals (Lines 2901 through 2903 plus 2998)(Line 29 above)
3201.
3202.
3203.
3298.	Summary of remaining write-ins for Line 32 from overflow page
3299.	Totals (Lines 3201 through 3203 plus 3298)(Line 32 above)

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STATEMENT AS OF SEPTEMBER 30, 2022 OF THE MORTGAGE GUARANTY INSURANCE CORPORATION

STATEMENT OF INCOME

							1	2	3
							Current	Prior Year	Prior Year Ended
							Year to Date	to Date	December 31
			UNDERWRITING INCOME
1.	Premiums earned:
	1.1 Direct (written $		830,366,269	)			858,239,905	864,675,105	1,151,932,663
	1.2 Assumed (written $	135,854 )			189,002	772,205	747,165
	1.3 Ceded (written $		107,723,685	)			107,723,900	122,633,243	163,032,330
	1.4 Net (written $		722,778,438 )				750,705,007	742,814,067	989,647,498
			DEDUCTIONS:
2.	Losses incurred (current accident year $	98,676,708	):
	2.1 Direct						(230,119,595)	90,562,056	59,975,419
	2.2 Assumed						(620,694)	(255,694)	(658,897)
	2.3 Ceded						(19,169,986)	13,353,381	9,639,124
	2.4 Net						(211,570,303)	76,952,981	49,677,398
3.	Loss adjustment expenses incurred				(10,424,401)	12,509,904	14,154,524
4.	Other underwriting expenses incurred				167,878,611	155,110,973	197,868,309
5.	Aggregate write-ins for underwriting deductions			405,043,027	416,533,202	554,093,063
6.	Total underwriting deductions (Lines 2 through 5)			350,926,934	661,107,060	815,793,294
7.	Net income of protected cells
8.	Net underwriting gain or (loss) (Line 1 minus Line 6 + Line 7)			399,778,073	81,707,007	173,854,204
			INVESTMENT INCOME
9.	Net investment income earned				136,725,042	111,712,908	149,710,833
10.	Net realized capital gains (losses) less capital gains tax of $	(2,325,263)		(65,976,708)	(4,147,408)	(4,561,580)
11.	Net investment gain (loss) (Lines 9 + 10)				70,748,334	107,565,500	145,149,253
			OTHER INCOME
12.	Net gain or (loss) from agents' or premium balances charged off (amount recovered
	$	104,369	amount charged off $	)		104,369	(61,399)	(67,387)
13.	Finance and service charges not included in premiums
14.	Aggregate write-ins for miscellaneous income				(1,326,436)	5,395	5,737
15.	Total other income (Lines 12 through 14)				(1,222,067)	(56,004)	(61,650)
16.	Net income before dividends to policyholders, after capital gains tax and before all other federal
	and foreign income taxes (Lines 8 + 11 + 15)				469,304,340	189,216,503	318,941,807
17.	Dividends to policyholders
18.	Net income, after dividends to policyholders, after capital gains tax and before all other federal and
	foreign income taxes (Line 16 minus Line 17)				469,304,340	189,216,503	318,941,807
19.	Federal and foreign income taxes incurred				111,607,129	(623,283)	29,368,504
20.	Net income (Line 18 minus Line 19)(to Line 22)			357,697,211	189,839,786	289,573,303
			CAPITAL AND SURPLUS ACCOUNT
21.	Surplus as regards policyholders, December 31 prior year			1,217,095,038	1,336,037,188	1,336,037,188
22.	Net income (from Line 20)					357,697,211	189,839,786	289,573,303
23.	Net transfers (to) from Protected Cell accounts
24.	Change in net unrealized capital gains (losses)	less capital gains tax of $	(29,660)	65,469,484	9,814,075	11,936,858
25.	Change in net unrealized foreign exchange capital gain (loss)
26.	Change in net deferred income tax				12,517,098	(40,452,063)	(38,956,278)
27.	Change in nonadmitted assets				(5,781,068)	(11,368,860)	(20,668,376)
28.	Change in provision for reinsurance

1. Change in surplus notes
2. Surplus (contributed to) withdrawn from protected cells

31.	Cumulative effect of changes in accounting principles	15,175,463	15,175,463
32.	Capital changes:
	32.1 Paid in

1. Transferred from surplus (Stock Dividend)
2. Transferred to surplus

33. Surplus adjustments:
33.1	Paid in	(191,089,493)
33.2	Transferred to capital (Stock Dividend)

33.3 Transferred from capital

34. Net remittances from or (to) Home Office

35.	Dividends to stockholders	(208,910,507)	(158,911,559)	(408,911,559)
36.	Change in treasury stock
37.	Aggregate write-ins for gains and losses in surplus	(18,777,509)	10,471,857	32,908,439
38.	Change in surplus as regards policyholders (Lines 22 through 37)	11,125,216	14,568,699	(118,942,150)
39.	Surplus as regards policyholders, as of statement date (Lines 21 plus 38)	1,228,220,254	1,350,605,887	1,217,095,038
	DETAILS OF WRITE-INS
0501.	Contingency reserve contribution per Wisconsin Administrative Code Section Insurance
	3.09(14)	405,043,027	416,533,202	554,093,063
0502.
0503.
0598.	Summary of remaining write-ins for Line 5 from overflow page
0599.	Totals (Lines 0501 through 0503 plus 0598)(Line 5 above)	405,043,027
416,533,202	554,093,063
1401.	Other revenue	2,651	5,395	5,737
1402.	Federal Home Loan Bank prepayment fee	(1,329,087)
1403.
1498.	Summary of remaining write-ins for Line 14 from overflow page
1499.	Totals (Lines 1401 through 1403 plus 1498)(Line 14 above)	(1,326,436)
5,395	5,737
3701.	SSAP 92 & SSAP 102 net funded status adjustments	(18,777,509)	10,471,857	32,908,439
3702.
3703.
3798.	Summary of remaining write-ins for Line 37 from overflow page
3799.	Totals (Lines 3701 through 3703 plus 3798)(Line 37 above)	(18,777,509)	10,471,857	32,908,439

4

STATEMENT AS OF SEPTEMBER 30, 2022 OF THE MORTGAGE GUARANTY INSURANCE CORPORATION

CASH FLOW

			1	2	3
			Current Year	Prior Year	Prior Year Ended
			To Date	To Date	December 31
	Cash from Operations
1.	Premiums collected net of reinsurance		708,033,925	714,121,878	954,822,350
2.	Net investment income		146,292,526	139,628,020	190,374,905
3.	Miscellaneous income		107,020	(56,004)	(61,650)
4.	Total (Lines 1 to 3)		854,433,471	853,693,894	1,145,135,605
5.	Benefit and loss related payments		(4,754,640)	39,389,597	54,818,089
6.	Net transfers to Separate Accounts, Segregated Accounts and Protected Cell Accounts
7.	Commissions, expenses paid and aggregate write-ins for deductions		177,955,732	159,101,112	205,943,494
8.	Dividends paid to policyholders
9.	Federal and foreign income taxes paid (recovered) net of $	(557,931) tax on capital
	gains (losses)		92,888,072	(1,153,000)	(1,962,731)
10.	Total (Lines 5 through 9)		266,089,164	197,337,709	258,798,852
11.	Net cash from operations (Line 4 minus Line 10)		588,344,307	656,356,185	886,336,753

Cash from Investments

12. Proceeds from investments sold, matured or repaid:

	12.1	Bonds	606,289,648	481,754,164	658,780,716
	12.2	Stocks	2,250,000
	12.3	Mortgage loans
	12.4	Real estate	2,649,893	3,171,550	3,927,551
	12.5	Other invested assets
	12.6	Net gains or (losses) on cash, cash equivalents and short-term investments	35,150	(9,862)	(9,861)
	12.7	Miscellaneous proceeds	364,570		(520,000)
	12.8 Total investment proceeds (Lines 12.1 to 12.7)	611,589,261	484,915,852	662,178,406
13. Cost of investments acquired (long-term only):
	13.1	Bonds	567,039,465	991,265,448	1,136,380,745
	13.2	Stocks
	13.3	Mortgage loans
	13.4	Real estate	2,523,506	3,564,159	4,342,207
	13.5	Other invested assets
	13.6	Miscellaneous applications		16,020,000	22,770,000
	13.7	Total investments acquired (Lines 13.1 to 13.6)	569,562,971	1,010,849,607	1,163,492,952
14.	Net increase (or decrease) in contract loans and premium notes
15.	Net cash from investments (Line 12.8 minus Line 13.7 and Line 14)	42,026,290	(525,933,755)	(501,314,546)

Cash from Financing and Miscellaneous Sources

1. Cash provided (applied):
2. 1. Surplus notes, capital notes
   2. Capital and paid in surplus, less treasury stock
   3. Borrowed funds
   4. Net deposits on deposit-type contracts and other insurance liabilities
   5. Dividends to stockholders
   6. Other cash provided (applied)
3. Net cash from financing and miscellaneous sources (Line 16.1 through Line 16.4 minus Line 16.5 plus Line 16.6)

(150,761,933)

(156,329,087)

208,910,507	150,000,000	400,000,000
(15,772,373)	(9,821,242)	(10,025,202)
(531,773,900)	(159,821,242)	(410,025,202)

	RECONCILIATION OF CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS
18.	Net change in cash, cash equivalents and short-term investments (Line 11, plus Lines 15 and 17)	98,596,697	(29,398,812)	(25,002,995)
19.	Cash, cash equivalents and short-term investments:
	19.1 Beginning of year	133,585,821	158,588,816	158,588,816
	19.2 End of period (Line 18 plus Line 19.1)	232,182,518	129,190,004	133,585,821

Note: Supplemental disclosures of cash flow information for non-cash transactions:

20.0001.	Line 2.7 Net investment income - Dividend received, net	20,367,887
20.0002.	Line 9 Federal and foreign income taxes paid - Dividend received, net	23,600,389
20.0003.	Line 12.1 Bonds - Return of capital to Parent	40,327,560
20.0004.	Line 12.2	Stocks - Dividend to Parent		8,911,559	8,911,559
20.0005.	Line 16.2	Capital and paid in surplus - Return of capital to Parent	(40,327,560)
20.0006.	Line 16.5	Dividends to stockholders - Dividend to Parent		8,911,559	8,911,559
20.0007.	Line 16.6	Other cash provided (applied) - Dividend received, net	3,232,502

5