Mgic Investment (MTG) risk factors, FY2024 10-K

Other

1. 01Wars and/or other global events may adversely affect the U.S. economy and our business
2. 02Downturns in the domestic economy or declines in home prices may result in more homeowners defaulting and our losses increasing, with a corresponding decrease in our returns
3. 03Changes in the business practices of Fannie Mae and Freddie Mac ("the GSEs"), federal legislation that changes their charters or a restructuring of the GSEs could reduce our revenues or increase our losses
4. 04MGIC Investment Corporation and Subsidiaries
5. 05We may not continue to meet the GSEs’ private mortgage insurer eligibility requirements and our returns may decrease if we are required to maintain more capital in order to maintain our eligibility
6. 06Because loss reserve estimates are subject to uncertainties, paid claims may be substantially different than our loss reserves
7. 07We are subject to comprehensive regulation and other requirements, which we may fail to satisfy
8. 08Pandemics, hurricanes and other disasters may adversely impact our results of operations and financial condition
9. 09Reinsurance may be unavailable at current levels and prices, and/or the GSEs may reduce the amount of capital credit we receive for our reinsurance transactions
10. 10Because we establish loss reserves only upon a loan delinquency rather than based on estimates of our ultimate losses on risk in force, losses may have a disproportionate adverse effect on our earnings in certain periods
11. 11State capital requirements may prevent us from continuing to write new insurance on an uninterrupted basis
12. 12If the volume of low down payment home mortgage originations declines, the amount of insurance that we write could decline
13. 13The amount of insurance we write could be adversely affected if lenders and investors select alternatives to private mortgage insurance or are unable to obtain capital relief for mortgage insurance
14. 14The length of time our insurance policies remain in force has a significant impact on our results
15. 15We are susceptible to disruptions in the servicing of mortgage loans that we insure and we rely on third-party reporting for information regarding the mortgage loans we insure
16. 16An increase in delinquent loans or a transfer of servicing resulting from liquidity issues, may increase the operational burden on servicers, cause a disruption in the servicing of delinquent loans and reduce servicers’ abilities to undertake mitigation efforts that could help limit our losses
17. 17adverse effect on our business, financial condition and operating results. We may terminate delegation of these loss management decisions to the GSEs; however, such termination may adversely affect our relationship with the GSEs and servicers
18. 18Our enterprise risk management program, described in "Business - Our Products and Services - Risk Management" in Item 1 of our Annual Report on Form 10-K for the year ended December 31, 2023, may not be effective in identifying, or adequate in controlling or mitigating, the risks we face in our business
19. 19Information technology system failures or interruptions may materially impact our operations and/or adversely affect our financial results
20. 20We could be materially adversely affected by a cybersecurity breach or failure of information security controls
21. 21malfunctions in our operations, which could result in damage to our reputation, financial losses, litigation, increased costs, regulatory penalties or customer dissatisfaction. We could be similarly affected by threats against our vendors and/or third-parties with whom we share information
22. 22Our underwriting practices and the mix of business we write affects our Minimum Required Assets under the PMIERs, our premium yields and the likelihood of losses occurring
23. 23The premiums we charge may not be adequate to compensate us for our liabilities for losses and as a result any inadequacy could materially affect our financial condition and results of operations
24. 24Actual or perceived instability in the financial services industry or non-performance by financial institutions or transactional counterparties could materially impact our business
25. 25We rely on our management team and our business could be harmed if we are unable to retain qualified personnel or successfully develop and/or recruit their replacements
26. 26Competition or changes in our relationships with our customers could reduce our revenues, reduce our premium yields and / or increase our losses
27. 27Adverse rating agency actions could have a material adverse impact on our business, results of operations and financial condition
28. 28We are subject to the risk of legal proceedings
29. 29Our success depends, in part, on our ability to manage risks in our investment portfolio
30. 30The inability of our insurance subsidiaries to pay dividends in sufficient amounts would harm our ability to meet our obligations, pay future shareholder dividends and/or make future share repurchases
31. 31Your ownership in our company may be diluted by additional capital that we raise
32. 32The price of our common stock may fluctuate significantly, which may make it difficult for holders to resell common stock when they want or at a price they find attractive