MGIC Investment Corporation First Quarter Net Income of $163.5 Million
MILWAUKEE, April 13 -- MGIC Investment
Corporation (NYSE: MTG) today reported net income for the quarter ended
March 31, 2006 of $163.5 million, compared with the $182.0 million for the
same quarter a year ago. Diluted earnings per share were $1.87 for the
quarter ending March 31, 2006, compared to $1.90 for the same quarter a
year ago.
Curt S. Culver, chairman and chief executive officer of MGIC Investment
Corporation and Mortgage Guaranty Insurance Corporation (MGIC), said that
the quarterly results benefited from positive joint venture results and the
expected seasonal decline in the delinquencies which somewhat offset the
decline of insurance in force and associated revenues.
Total revenues for the first quarter were $369.0 million, down 4.1
percent from $384.9 million in the first quarter of 2005. The decline in
revenues resulted from a 5.2 percent decrease in net premiums earned to
$299.7 million. Net premiums written for the quarter were $300.5 million,
compared with $312.2 million in the first quarter last year, a decrease of
3.8 percent.
New insurance written in the first quarter was $10.0 billion, compared
to $11.4 billion in the first quarter of 2005. New insurance written for
the quarter included $2.1 billion of bulk business compared with $2.5
billion in the same period last year.
Persistency, or the percentage of insurance remaining inforce from one
year prior, was 62.0 percent at March 31, 2006, compared with 61.3 percent
at December 31, 2005, and 59.7 percent at March 31, 2005. As of March 31,
2006, MGIC's primary insurance in force was $166.9 billion, compared with
$170.0 billion at December 31, 2005, and $172.1 billion at March 31, 2005.
The book value of MGIC Investment Corporation's investment portfolio and
cash was $5.4 billion at March 31, 2006, compared with $5.5 billion at
December 31, 2005, and $5.7 billion at March 31, 2005.
The delinquency inventory is 76,362 as of March 31, 2006, of which the
company estimates 3,100 delinquencies are the result of Hurricanes Katrina,
Rita and Wilma. At March 31, 2006, the percentage of loans that were
delinquent, excluding bulk loans, was 4.00 percent, compared with 4.52
percent at December 31, 2005, and 3.77 percent at March 31, 2005. Including
bulk loans, the percentage of loans that were delinquent at March 31, 2006
was 6.00 percent, compared to 6.58 percent at December 31, 2005, and 5.71
percent at March 31, 2005.
Losses incurred in the first quarter were $114.9 million, up from $98.9
million reported for the same period last year. Underwriting expenses were
$75.4 million in the first quarter, up from $68.8 million reported for the
same period last year.
Income from joint ventures, net of tax in the quarter, was $39.1
million, up from $34.2 million for the same period last year.
About MGIC
MGIC ( http://www.mgic.com ), the principal subsidiary of MGIC
Investment Corporation, is the nation's leading provider of private
mortgage insurance coverage with $166.9 billion primary insurance in force
covering 1.3 million mortgages as of March 31, 2006. MGIC serves 5,000
lenders with locations across the country and in Puerto Rico, helping
families achieve homeownership sooner by making affordable low-down-payment
mortgages a reality.
Webcast Details
As previously announced, MGIC Investment Corporation will hold a
webcast today at 10 a.m. ET to allow securities analysts and shareholders
the opportunity to hear management discuss the company's quarterly results.
The call is being webcast and can be accessed at the company's website at
http://www.mgic.com . The webcast is also being distributed over CCBN's
Investor Distribution Network to both institutional and individual
investors. Investors can listen to the call through CCBN's individual
investor center at http://www.companyboardroom.com or by visiting any of
the investor sites in CCBN's Individual Investor Network. The webcast will
be available for replay through May 14, 2006.
This press release, which includes certain additional statistical and
other information, including non-GAAP financial information, is available
on the Company's website at http://www.mgic.com under "Investor - News and
Financials - News Releases."
Safe Harbor Statement
Forward.Looking Statements and Risk Factors
-------------------------------------------
The Company's revenues and losses could be affected by the risk factors
discussed below, which should be read in conjunction with the company's
periodic reports to the SEC. These factors may also cause actual results to
differ materially from the results contemplated by forward-looking
statements that the Company may make. Forward-looking statements consist of
statements which relate to matters other than historical fact. Among
others, statements that include words such as the Company "believes,"
"anticipates" or "expects," or words of similar import, are forward-looking
statements. The Company is not undertaking any obligation to update any
forward-looking statements it may make even though these statements may be
affected by events or circumstances occurring after the forward-looking
statements were made.
The amount of insurance the Company writes could be adversely affected
if
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lenders and investors select alternatives to private mortgage
insurance.
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These alternatives to private mortgage insurance include:
-- lenders originating mortgages using piggyback structures to avoid
private mortgage insurance, such as a first mortgage with an 80%
loan.to.value ratio and a second mortgage with a 10%, 15% or 20%
loan.to.value ratio (referred to as 80.10.10, 80.15.5 or 80.20 loans,
respectively) rather than a first mortgage with a 90%, 95% or 100%
loan.to.value ratio,
-- investors holding mortgages in portfolio and self.insuring,
-- investors using credit enhancements other than private mortgage
insurance or using other credit enhancements in conjunction with
reduced levels of private mortgage insurance coverage, and
-- lenders using government mortgage insurance programs, including those
of the Federal Housing Administration and the Veterans Administration.
While no data is publicly available, the Company believes that
piggyback loans are a significant percentage of mortgage originations in
which borrowers make down payments of less than 20% and that their use is
primarily by borrowers with higher credit scores. During the fourth quarter
of 2004, the Company introduced on a national basis a program designed to
recapture business lost to these mortgage insurance avoidance products.
This program accounted for 7.5% of flow new insurance written in the fourth
quarter of 2005 and 6.3% of flow new insurance written for all of 2005.
Deterioration in the domestic economy or changes in the mix of business
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may result in more homeowners defaulting and the Company's losses
increasing.
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--
Losses result from events that reduce a borrower's ability to continue
to make mortgage payments, such as unemployment, and whether the home of a
borrower who defaults on his mortgage can be sold for an amount that will
cover unpaid principal and interest and the expenses of the sale. Favorable
economic conditions generally reduce the likelihood that borrowers will
lack sufficient income to pay their mortgages and also favorably affect the
value of homes, thereby reducing and in some cases even eliminating a loss
from a mortgage default. A deterioration in economic conditions generally
increases the likelihood that borrowers will not have sufficient income to
pay their mortgages and can also adversely affect housing values.
Approximately 8.6% of the Company's primary risk in force is located in
areas within Alabama (0.3%), Florida (4.5%), Louisiana (1.0%), Mississippi
(0.6%) and Texas (2.2%) that have been declared eligible for individual and
public assistance by the Federal Emergency Management Agency as a result of
Hurricanes Katrina, Rita and Wilma. The effect on the Company from these
hurricanes, however, will not be limited to these areas to the extent that
the borrowers in areas that have not experienced wind or water damage are
adversely affected due to deteriorating economic conditions attributable to
these hurricanes.
The mix of business the Company writes also affects the likelihood of
losses occurring. In recent years, the percentage of the Company's volume
written on a flow basis that includes segments the Company views as having
a higher probability of claim has continued to increase. These segments
include loans with loan.to.value ("LTV") ratios over 95% (including loans
with 100% LTV ratios), "FICO" credit scores below 620, limited
underwriting, including limited borrower documentation, or total
debt.to.income ratios of 38% or higher, as well as loans having
combinations of higher risk factors.
Approximately 9% of the Company's primary risk in force written through
the flow channel, and 72% of the Company's primary risk in force written
through the bulk channel, consists of adjustable rate mortgages ("ARMs").
The Company believes that during a prolonged period of rising interest
rates, claims on ARMs would be substantially higher than for fixed rate
loans, although the performance of ARMs has not been tested in such an
environment. In addition, the Company believes the volume of
"interest.only" loans (which may also be ARMs) and other loans with
negative amortization features, such as pay option ARMs, increased in 2004
and 2005. Because interest.only loans and pay option ARMs are a relatively
recent development, the Company has no data on their historical
performance. The Company believes claim rates on certain of these loans
will be substantially higher than on comparable loans that do not have
negative amortization.
Competition or changes in the Company's relationships with its
customers
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could reduce the Company's revenues or increase its losses.
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Competition for private mortgage insurance premiums occurs not only
among private mortgage insurers but also with mortgage lenders through
captive mortgage reinsurance transactions. In these transactions, a
lender's affiliate reinsures a portion of the insurance written by a
private mortgage insurer on mortgages originated or serviced by the lender.
As discussed under "The mortgage insurance industry is subject to risk from
private litigation and regulatory proceedings" below, the Company provided
information to the New York Insurance Department and the Minnesota
Department of Commerce about captive mortgage reinsurance arrangements.
It has been publicly reported that certain other insurance departments
may review or investigate such arrangements. The level of competition
within the private mortgage insurance industry has also increased as many
large mortgage lenders have reduced the number of private mortgage insurers
with whom they do business. At the same time, consolidation among mortgage
lenders has increased the share of the mortgage lending market held by
large lenders. The Company's private mortgage insurance competitors
include:
-- PMI Mortgage Insurance Company,
-- Genworth Mortgage Insurance Corporation,
-- United Guaranty Residential Insurance Company,
-- Radian Guaranty Inc.,
-- Republic Mortgage Insurance Company,
-- Triad Guaranty Insurance Corporation, and
-- CMG Mortgage Insurance Company.
If interest rates decline, house prices appreciate or mortgage insurance
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cancellation requirements change, the length of time that the Company's
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policies remain in force could decline and result in declines in the
Company's
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--- revenue. --------
In each year, most of the Company's premiums are from insurance that
has been written in prior years. As a result, the length of time insurance
remains in force (which is also generally referred to as persistency) is an
important determinant of revenues. The factors affecting the length of time
the Company's insurance remains in force include:
-- the level of current mortgage interest rates compared to the mortgage
coupon rates on the insurance in force, which affects the
vulnerability of the insurance in force to refinancings, and
-- mortgage insurance cancellation policies of mortgage investors along
with the rate of home price appreciation experienced by the homes
underlying the mortgages in the insurance in force.
During the 1990s, the Company's year.end persistency ranged from a high
of 87.4% at December 31, 1990 to a low of 68.1% at December 31, 1998. At
March 31, 2006 persistency was at 62.0%, compared to the record low of
44.9% at September 30, 2003. Over the past several years, refinancing has
become easier to accomplish and less costly for many consumers. Hence, even
in an interest rate environment favorable to persistency improvement, the
Company does not expect persistency will approach its December 31, 1990
level.
If the volume of low down payment home mortgage originations declines,
the
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amount of insurance that the Company writes could decline which would
reduce
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- the Company's revenues. -----------------------
The factors that affect the volume of low.down.payment mortgage
originations include:
-- The level of home mortgage interest rates,
-- the health of the domestic economy as well as conditions in regional
and local economies,
-- housing affordability,
-- population trends, including the rate of household formation,
-- the rate of home price appreciation, which in times of heavy
refinancing can affect whether refinance loans have loan.to.value
ratios that require private mortgage insurance, and
-- government housing policy encouraging loans to first.time homebuyers.
In general, the majority of the underwriting profit (premium revenue
minus losses) that a book of mortgage insurance generates occurs in the
early years of the book, with the largest portion of the underwriting
profit realized in the first year. Subsequent years of a book generally
result in modest underwriting profit or underwriting losses. This pattern
of results occurs because relatively few of the claims that a book will
ultimately experience occur in the first few years of the book, when
premium revenue is highest, while subsequent years are affected by
declining premium revenues, as persistency decreases due to loan
prepayments, and higher losses.
If all other things were equal, a decline in new insurance written in a
year that followed a number of years of higher volume could result in a
lower contribution to the mortgage insurer's overall results. This effect
may occur because the older books will be experiencing declines in revenue
and increases in losses with a lower amount of underwriting profit on the
new book available to offset these results.
Whether such a lower contribution would in fact occur depends in part
on the extent of the volume decline. Even with a substantial decline in
volume, there may be offsetting factors that could increase the
contribution in the current year. These offsetting factors include higher
persistency and a mix of business with higher average premiums, which could
have the effect of increasing revenues, and improvements in the economy,
which could have the effect of reducing losses. In addition, the effect on
the insurer's overall results from such a lower contribution may be offset
by decreases in the mortgage insurer's expenses that are unrelated to claim
or default activity, including those related to lower volume.
Changes in the business practices of Fannie Mae and Freddie Mac could
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reduce the Company's revenues or increase its losses.
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The business practices of the Federal National Mortgage Association
("Fannie Mae") and the Federal Home Loan Mortgage Corporation ("Freddie
Mac"), each of which is a government sponsored entity ("GSE"), affect the
entire relationship between them and mortgage insurers and include:
-- the level of private mortgage insurance coverage, subject to the
limitations of Fannie Mae and Freddie Mac's charters, when private
mortgage insurance is used as the required credit enhancement on low
down payment mortgages,
-- whether Fannie Mae or Freddie Mac influence the mortgage lender's
selection of the mortgage insurer providing coverage and, if so, any
transactions that are related to that selection,
-- whether Fannie Mae or Freddie Mac will give mortgage lenders an
incentive, such as a reduced guaranty fee, to select a mortgage
insurer that has a "AAA" claims.paying ability,
-- rating to benefit from the lower capital requirements for Fannie Mae
and Freddie Mac when a mortgage is insured by a company with that
rating,
-- the underwriting standards that determine what loans are eligible for
purchase by Fannie Mae or Freddie Mac, which thereby affect the
quality of the risk insured by the mortgage insurer and the
availability of mortgage loans,
-- the terms on which mortgage insurance coverage can be canceled before
reaching the cancellation thresholds established by law, and
-- the circumstances in which mortgage servicers must perform activities
intended to avoid or mitigate loss on insured mortgages that are
delinquent.
The mortgage insurance industry is subject to the risk of private
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litigation and regulatory proceedings.
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Consumers are bringing a growing number of lawsuits against home
mortgage lenders and settlement service providers. In recent years, seven
mortgage insurers, including MGIC, have been involved in litigation
alleging violations of the anti.referral fee provisions of the Real Estate
Settlement Procedures Act, which is commonly known as RESPA, and the notice
provisions of the Fair Credit Reporting Act, which is commonly known as
FCRA. MGIC's settlement of class action litigation against it under RESPA
became final in October 2003. MGIC settled the named plaintiffs' claims in
litigation against it under FCRA in late December 2004 following denial of
class certification in June 2004. There can be no assurance that MGIC will
not be subject to future litigation under RESPA or FCRA or that the outcome
of any such litigation would not have a material adverse effect on the
Company. In August 2005, the United States Court of Appeals for the Ninth
Circuit decided a case under FCRA to which the Company was not a party that
may make it more likely that the Company will be subject to future
litigation regarding when notices to borrowers are required by FCRA.
In June 2005, in response to a letter from the New York Insurance
Department ("NYID"), the Company provided information regarding captive
mortgage reinsurance arrangements and other types of arrangements in which
lenders receive compensation. In February 2006, the NYID requested MGIC to
review its premium rates in New York and to file adjusted rates based on
recent years' experience or to explain why such experience would not alter
rates. In March 2006, MGIC advised the NYID that it believes its premium
rates are reasonable and that, given the nature of mortgage insurance risk,
premium rates should not be determined only by the experience of recent
years. In February 2006, in response to an administrative subpoena from the
Minnesota Department of Commerce (the "MDC"), which regulates insurance,
the Company provided the MDC with information about captive mortgage
reinsurance and certain other matters. In the spring of 2005, spokesmen for
insurance commissioners in Colorado and North Carolina were publicly
reported as saying that those commissioners are considering investigating
or reviewing captive mortgage reinsurance arrangements. Insurance
departments or other officials in other states may also conduct such
investigations or reviews.
The anti.referral fee provisions of RESPA provide that the Department
of Housing and Urban Development ("HUD") as well as the insurance
commissioner or attorney general of any state may bring an action to enjoin
violations of these provisions of RESPA. The insurance law provisions of
many states prohibit paying for the referral of insurance business and
provide various mechanisms to enforce this prohibition. While the Company
believes its captive reinsurance arrangements are in conformity with
applicable laws and regulations, it is not possible to predict the outcome
of any such reviews or investigations nor is it possible to predict their
effect on the Company or the mortgage insurance industry.
Net premiums written could be adversely affected if the Department of
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Housing and Urban Development reproposes and adopts a regulation under
the
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Real Estate Settlement Procedures Act that is equivalent to a proposed
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regulation that was withdrawn in 2004.
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HUD regulations under RESPA prohibit paying lenders for the referral of
settlement services, including mortgage insurance, and prohibit lenders
from receiving such payments. In July 2002, HUD proposed a regulation that
would exclude from these anti.referral fee provisions settlement services
included in a package of settlement services offered to a borrower at a
guaranteed price. HUD withdrew this proposed regulation in March 2004.
Under the proposed regulation, if mortgage insurance were required on a
loan, the package must include any mortgage insurance premium paid at
settlement. Although certain state insurance regulations prohibit an
insurer's payment of referral fees, had this regulation been adopted in
this form, the Company's revenues could have been adversely affected to the
extent that lenders offered such packages and received value from the
Company in excess of what they could have received were the anti.referral
fee provisions of RESPA to apply and if such state regulations were not
applied to prohibit such payments.
The Company could be adversely affected if personal information on
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consumers that it maintains is improperly disclosed.
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As part of its business, the Company maintains large amounts of
personal information on consumers. While the Company believes it has
appropriate information security policies and systems to prevent
unauthorized disclosure, there can be no assurance that unauthorized
disclosure, either through the actions of third parties or employees, will
not occur. Unauthorized disclosure could aversely affect the Company's
reputation and expose it to material claims for damages.
The Company's income from joint ventures could be adversely affected by
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credit losses, insufficient liquidity or competition affecting those
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businesses. -----------
C.BASS: Credit.Based Asset Servicing and Securitization LLC ("C.BASS")
is particularly exposed to credit risk and funding risk. In addition,
C.BASS's results are sensitive to its ability to purchase mortgage loans
and securities on terms that it projects will meet its return targets. With
respect to credit risk, a higher proportion of non.conforming mortgage
originations (the types of mortgages C.BASS principally purchases) in 2005
compared to 2004 were products, such as interest only loans to subprime
borrowers, that are viewed by C.BASS as having greater credit risk. In
addition, credit losses are a function of housing prices, which in certain
regions have experienced rates of increase greater than historical norms
and greater than growth in median incomes.
With respect to liquidity, the substantial majority of C.BASS's
on.balance sheet financing for its mortgage and securities portfolio is
short.term and dependent on the value of the collateral that secures this
debt. While C.BASS's policies governing the management of capital at risk
are intended to provide sufficient liquidity to cover an instantaneous and
substantial decline in value, such policies cannot guaranty that all
liquidity required will in fact be available. Although there has been
growth in the volume of non.conforming mortgage originations in recent
years, volume is expected to decline in 2006. There is an increasing amount
of competition to purchase non.conforming mortgages, including from real
estate investment trusts and from firms that in the past acted as mortgage
securities intermediaries but which are now establishing their own captive
origination capacity. Decreasing credit spreads also heighten competition
in the purchase of non.conforming mortgages and other securities.
Sherman: The results of Sherman Financial Group LLC are sensitive to
its ability to purchase receivable portfolios on terms that it projects
will meet its return targets. While the volume of charged.off consumer
receivables and the portion of these receivables that have been sold to
third parties such as Sherman has grown in recent years, there is an
increasing amount of competition to purchase such portfolios, including
from new entrants to the industry, which has resulted in increases in the
prices at which portfolios can be purchased.
MGIC INVESTMENT CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
Three Months Ended March 31,
2006 2005
(in thousands of dollars,
except per share data)
Net premiums written $300,472 $312,239
Net premiums earned $299,667 $316,079
Investment income 57,964 57,003
Realized gains 87 1,565
Other revenue 11,314 10,261
Total revenues 369,032 384,908
Losses and expenses:
Losses incurred 114,885 98,866
Underwriting, other expenses 75,352 68,786
Interest expense 9,315 10,722
Ceding commission (1,087) (891)
Total losses and expenses 198,465 177,483
Income before tax and joint
ventures 170,567 207,425
Provision for income tax 46,166 59,660
Income from joint ventures, net
of tax (1) 39,052 34,248
Net income $163,453 $182,013
Diluted weighted average common
shares outstanding (Shares in
thousands) 87,227 95,784
Diluted earnings per share $1.87 $1.90
(1) Diluted EPS contribution from
C-BASS $0.22 $0.19
Diluted EPS contribution from
Sherman $0.21 $0.16
NOTE: See "Certain Non-GAAP Financial Measures" for diluted earnings
per share contribution from realized gains.
MGIC INVESTMENT CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET AS OF
March 31, December 31, March 31,
2006 2005 2005
(in thousands of dollars,
except per share data)
ASSETS
Investments (1) $5,237,080 $5,295,430 $5,481,961
Cash and cash equivalents 206,595 195,256 187,096
Reinsurance recoverable on
loss reserves (2) 14,039 14,787 16,233
Prepaid reinsurance
premiums 9,110 9,608 6,344
Home office and equipment,
net 32,579 32,666 33,954
Deferred insurance policy
acquisition costs 16,934 18,416 26,663
Other assets 807,881 791,406 692,227
$6,324,218 $6,357,569 $6,444,478
LIABILITIES AND SHAREHOLDERS'
EQUITY
Liabilities:
Loss reserves (2) 1,103,557 1,124,454 1,134,100
Unearned premiums 160,130 159,823 139,101
Short- and long-term debt 597,674 685,163 655,215
Other liabilities 267,331 223,074 318,381
Total liabilities 2,128,692 2,192,514 2,246,797
Shareholders' equity 4,195,526 4,165,055 4,197,681
$6,324,218 $6,357,569 $6,444,478
Book value per share $48.08 $47.31 $43.92
(1) Investments include
unrealized gains on securities
marked to market pursuant to
FAS 115 70,086 119,836 104,086
(2) Loss reserves, net of
reinsurance recoverable on
loss reserves 1,089,518 1,109,667 1,117,867
CERTAIN NON-GAAP FINANCIAL MEASURES
Three Months Ended March 31,
2006 2005
(in thousands of dollars,
except per share data)
Diluted earnings per share
contribution from realized
gains:
Realized gains $87 $1,565
Income taxes at 35% 30 548
After tax realized gains 57 1,017
Weighted average shares 87,227 95,784
Diluted EPS contribution from
realized gains $- $0.01
Management believes the diluted earnings per share contribution from
realized gains provides useful information to investors because it shows
the after-tax effect that sales of securities from the Company's
investment portfolio, which are discretionary transactions, had on
earnings.
OTHER INFORMATION
New primary insurance written
("NIW") ($ millions) $10,032 $11,407
New risk written ($ millions):
Primary $2,725 $3,065
Pool (1) $68 $48
Product mix as a % of primary
flow NIW
95% LTVs 24% 27%
ARMs 11% 13%
Refinances 28% 33%
Net paid claims ($ millions)
Flow $62 $71
Bulk (2) 53 58
Other 20 20
$135 $149
(1) Represents contractual aggregate loss limits and, for the three
months ended March 31, 2006 and 2005, for $19 million and
$361 million, respectively, of risk without such limits, risk is
calculated at $1 million and $20 million, respectively, the estimated
amount that would credit enhance these loans to a 'AA' level based on
a rating agency model.
(2) Bulk loans are those that are part of a negotiated transaction
between the lender and the mortgage insurer.
OTHER INFORMATION
As of
March 31, December 31, March 31,
2006 2005 2005
Direct Primary Insurance
In Force ($ millions) 166,881 170,029 172,051
Direct Primary Risk
In Force ($ millions) 44,107 44,860 44,747
Direct Pool Risk
In Force ($ millions) (1) 2,968 2,909 3,053
Mortgage Guaranty Insurance
Corporation - Risk-to-capital
ratio 6.2:1 6.3:1 6.4:1
Primary Insurance:
Insured Loans 1,273,382 1,303,084 1,370,852
Persistency 62.0% 61.3% 59.7%
Total loans delinquent 76,362 85,788 78,234
Percentage of loans
delinquent (delinquency rate) 6.00% 6.58% 5.71%
A-minus and subprime credit
loans delinquent (2) 33,085 36,485 32,545
Percentage of A-minus and
subprime credit loans
delinquent (delinquency
rate) 17.32% 18.30% 15.66%
(1) Represents contractual aggregate loss limits and, at March 31, 2006,
December 31, 2005 and March 31, 2005, respectively, for $4.8 billion,
$5.0 billion and $5.1 billion of risk without such limits, risk is
calculated at $470 million, $469 million and $438 million, the
estimated amounts that would credit enhance these loans to a 'AA'
level based on a rating agency model.
(2) A-minus and subprime credit is included in flow, bulk and total.
Documentation Type -
% of Risk in Force
that is Alt A
Bulk 24.7% 26.7% 27.8% 29.5% 32.5% 33.4%
Flow 6.9% 6.7% 6.6% 6.7% 6.9% 7.1%
Total 11.7% 11.7% 12.1% 12.7% 13.9% 14.0%
Other:
Shares
repurchased
# of shares
(000) 395.0 1,100.1 3,350.0 1,109.3 3,183.1 1,372.9
Average
price $67.48 $62.33 $60.73 $62.84 $60.35 $66.67
