Welcome!

News Feed Item

StockCall Insight Into MGIC and Radian: Understanding How Property & Casualty Insurance Works

LONDON, February 11, 2013 /PRNewswire/ --

Insurance companies make money from two sources - from the premiums they collect and from the investments they make. Low interest rates and weak returns from investments over prolonged periods force property and casualty insurers to improve underwriting margins, which is not always easy. Organic growth remains  a challenge for international as well as domestic property and casualty insurance companies like MGIC Investment Corp. (NYSE:MTG) and Radian Group Inc. (NYSE:RDN). StockCall has issued technical analysis and charting reports on MGIC and Radian. Download these free researches now at

http://www.stockcall.com/todaysopinions

Property and Casualty a 'Soft' Industry

During the late 1990s there was a substantial decline in property and casualty premiums, which is why the industry is considered as "soft". This is nothing new for the industry as the last time the property and casualty market was really "hard" was way back in 1985. There are however always exceptions related to geographies (major catastrophes) and some particular types of property and casualty insurance.  

As the property and casualty insurance companies struggle with challenges posed by increased competition, uncertainty surrounding scope and timing of regulatory changes and gradual increase in claims including weather related claims of enormous proportions such as with the recent super storm Sandy. The encouraging factor, however, is that new companies are not showing up with the same speed as before. What the industry needs to do is to adopt a holistic approach to opportunities and the challenges it faces.

MGIC Investment Corp. and Radian Group Inc. Brief Description

Mortgage Guaranty Insurance Corporation, the principal subsidiary of MGIC Investment Corp. is a private mortgage insurer that is licensed in all 50 states, the District of Columbia, Guam and Puerto Rico and offers an alternative to federal government insurance programs. As of September 30, 2012, the company covered 1 million mortgages with $164.9 billion primary insurance in force. Download the free research on MGIC today by registering now at

http://www.StockCall.com/MTG021113.pdf

Radian Group is a credit enhancement company that focuses on first-lien residential mortgage insurance in the domestic market. The company operates in two segments - mortgage insurance and financial guaranty. Recently, the company announced availability of mortgage insurance rates through an application, Radian Rates, for Android devices on Google Play. Radian Rates is a mobile version of its existing online rate finder that allows lenders to access mortgage insurance rates on the go. Sign up and have access to our free report on Radian at

http://www.StockCall.com/RDN021113.pdf

A Quick Comparison

In the first nine months of 2012 there was a difference of $8 billion between new insurance written by the two companies. While RDN wrote new insurance worth $25.4 billion, MTG could manage only $17.1 billion.

Under normal conditions, the profit margin of both companies is expected to be similar, which means that it is safe to presume that the difference between profits of both companies will be in the same proportion as the premiums collected by them. Going by that logic, profit of MTG should be roughly one-third of RDN's profit.

That, however, is a very primitive way of assessing the long-term effect of new insurances written by the two companies. The fact is that in an effort to boost its cash flows, Radian has been undercutting competitors in single premium policies, which form 35% of the new insurance it writes. For a fair comparison, single premium business needs to be removed from new insurance written by Radian.

Radian will be releasing its earnings today (data were not available at the time this article was completed).

About StockCall.com

StockCall.com is a financial website where investors can have easy, precise and comprehensive research and opinions on stocks making the headlines. Sign up today to talk to our financial analyst at

http://www.stockcall.com  

SOURCE StockCall.com

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
SYS-CON Events announced today that EastBanc Technologies will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. EastBanc Technologies has been working at the frontier of technology since 1999. Today, the firm provides full-lifecycle software development delivering flexible technology solutions that seamlessly integrate with existing systems – whether on premise or cloud. EastBanc Technologies partners with p...
In his session at 18th Cloud Expo, Andrew Cole, Director of Solutions Engineering at Peak 10, will discuss how the newest technology advances are reducing the cost and complexity of traditional business continuity and disaster recovery solutions. Attendees will: Learn why having a full disaster recovery strategy is more important now than ever before Explore the key drivers of a successful disaster recovery solution Achieve measurable operational and business value from a disaster recovery ...
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management...
SYS-CON Events announced today that Tintri Inc., a leading producer of VM-aware storage (VAS) for virtualization and cloud environments, will exhibit at the 18th International CloudExpo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Hanu Software will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Leveraging best-in-class people, processes, and technologies, Hanu provides high-quality, high-value software development and business process outsourcing services to independent software vendors (ISVs) and enterprises.
SYS-CON Events announced today Object Management Group® has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
In his session at 18th Cloud Expo, Bruce Swann, Senior Product Marketing Manager at Adobe, will discuss how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects). Bruce Swann has more than 15 years of experience working with digital marketing disciplines like web analytics, social med...
SYS-CON Events announced today that ContentMX, the marketing technology and services company with a singular mission to increase engagement and drive more conversations for enterprise, channel and SMB technology marketers, has been named “Sponsor & Exhibitor Lounge Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York. “CloudExpo is a great opportunity to start a conversation with new prospects, but what happens after the...
The initial debate is over: Any enterprise with a serious commitment to IT is migrating to the cloud. But things are not so simple. There is a complex mix of on-premises, colocated, and public-cloud deployments. In this power panel at 18th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists will look at the present state of cloud from the C-level view, and how great companies and rock star executives can use cloud computing to meet their most ambitious and disruptive business ...
The cloud era has reached the stage where it is no longer a question of whether a company should migrate, but when. Enterprises have embraced the outsourcing of where their various applications are stored and who manages them, saving significant investment along the way. Plus, the cloud has become a defining competitive edge. Companies that fail to successfully adapt risk failure. The media, of course, continues to extol the virtues of the cloud, including how easy it is to get there. Migrating...
SYS-CON Events announced today that Isomorphic Software will exhibit at SYS-CON's [email protected] at Cloud Expo New York, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Isomorphic Software provides the SmartClient HTML5/AJAX platform, the most advanced technology for building rich, high-productivity enterprise web applications for any device. SmartClient couples the industry’s broadest, deepest UI component set with a java server framework to deliver an end-...
The IoTs will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm and share the must-have mindsets for removing complexity from the development proc...
SYS-CON Events announced today that AppNeta, the leader in performance insight for business-critical web applications, will exhibit and present at SYS-CON's @DevOpsSummit at Cloud Expo New York, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. AppNeta is the only application performance monitoring (APM) company to provide solutions for all applications – applications you develop internally, business-critical SaaS applications you use and the networks that deli...
Companies can harness IoT and predictive analytics to sustain business continuity; predict and manage site performance during emergencies; minimize expensive reactive maintenance; and forecast equipment and maintenance budgets and expenditures. Providing cost-effective, uninterrupted service is challenging, particularly for organizations with geographically dispersed operations.
What a difference a year makes. Organizations aren’t just talking about IoT possibilities, it is now baked into their core business strategy. With IoT, billions of devices generating data from different companies on different networks around the globe need to interact. From efficiency to better customer insights to completely new business models, IoT will turn traditional business models upside down. In the new customer-centric age, the key to success is delivering critical services and apps wit...