MGIC Investment Shares Tumble As 3Q Loss Widens

MILWAUKEE (AP) — Mortgage insurer MGIC Investment Corp. reported a steeper third-quarter loss Friday, blaming a weak economy and high unemployment for elevated loan defaults.

The Milwaukee-based company said it lost $517.8 million, or $4.17 per share, compared with a loss of $115.4 million, or 93 cents a share a year ago.

The results were significantly worse than Wall Street expected. Analysts surveyed by Thomson Reuters expected a loss of $1.62 per share.

MGIC's shares fell 90 cents, or 12 percent, to close Friday at $6.42.

Revenue for the quarter fell to $413.3 million from $461.6 million a year ago.

Losses and expenses rose to $1.03 billion from $670.4 million a year earlier.

Although negative trends related to the recession and high unemployment persist, CEO Curt Culver said there are signs that the U.S. Treasury and private-sector loan-modification programs are beginning to help homeowners. Those measures haven't yet translated to any financial benefit to the company, however.