MGIC Investment Announces Additional $500 Million Share Repurchase Program and Quarterly Dividend of $0.08 Per Share

Rhea-AI Summary

MGIC Investment Corporation (NYSE: MTG) has announced a new share repurchase program allowing for the buyback of up to $500 million of common stock through the end of 2023. This follows a remaining authorization of approximately $141 million set to expire at the end of 2021. As of September 30, 2021, the company had approximately 329.3 million shares outstanding and $716 million in cash and investments. Additionally, a quarterly cash dividend of $0.08 per share was declared, payable on November 23, 2021.

Positive

• Authorization for a new $500 million stock repurchase program, enhancing shareholder value.
• Quarterly cash dividend of $0.08 per share increases shareholder returns.

Negative

• None.

MILWAUKEE, Oct. 28, 2021 /PRNewswire/ -- MGIC Investment Corporation (NYSE: MTG) announced its board of directors has authorized a new share repurchase program under which the Company may repurchase up to $500 million of its common stock through the end of 2023.  The new authorization is in addition to the Company's remaining stock purchase authorization of approximately $141 million (as of September 30, 2021), which expires at the end of 2021. 

Repurchases may be made from time to time on the open market (including through 10b5-1 plans) or through privately negotiated transactions.  The repurchase programs may be suspended for periods or discontinued at any time.

As of September 30, 2021, the Company had approximately 329.3 million shares of common stock outstanding and had approximately $716 million of cash and investments.  The Company expects to fund the purchases with these resources and future dividends that may be received from its principal subsidiary, Mortgage Guaranty Insurance Corporation.

The Company also announced that its board of directors declared a quarterly cash dividend of $0.08 per share payable on November 23, 2021, to shareholders of record as of November 11, 2021. 

About MGIC

Mortgage Guaranty Insurance Corporation "MGIC" (www.mgic.com), the principal subsidiary of MGIC Investment Corporation, serves lenders throughout the United States, Puerto Rico, and other locations helping families achieve homeownership sooner by making affordable low-down-payment mortgages a reality through the use of private mortgage insurance.

From time to time MGIC Investment Corporation releases important information via postings on its corporate website, and via postings on MGIC's website for information related to underwriting and pricing, and intends to continue to do so in the future. Such postings include corrections of previous disclosures, and may be made without any other disclosure. Investors and other interested parties are encouraged to enroll to receive automatic email alerts and Really Simple Syndication (RSS) feeds regarding new postings. Enrollment information for MGIC Investment Corporation alerts can be found at https://mtg.mgic.com/shareholder-services/email-alerts. For information about our underwriting and rates, see https://www.mgic.com/underwriting.

View original content:https://www.prnewswire.com/news-releases/mgic-investment-announces-additional-500-million-share-repurchase-program-and-quarterly-dividend-of-0-08-per-share-301411302.html

SOURCE MGIC Investment Corporation

FAQ

What is the new share repurchase program for MTG?

MGIC Investment Corporation has authorized a new buyback program of up to $500 million for its common stock, effective until the end of 2023.

How much stock was remaining for buyback before the new program?

Prior to the new program, MGIC had approximately $141 million remaining in its stock purchase authorization, which expires at the end of 2021.

When is the dividend payment date for MTG?

The quarterly cash dividend of $0.08 per share is payable on November 23, 2021.

What is MGIC's cash position as of September 30, 2021?

As of September 30, 2021, MGIC had approximately $716 million in cash and investments.

How many shares of common stock does MTG have outstanding?

MGIC Investment Corporation had approximately 329.3 million shares of common stock outstanding as of September 30, 2021.