UPDATE 2-MGIC Investment posts profit after 3 yrs of losses

* Q2 EPS $0.13 vs est loss/shr $0.63

* Q2 boosted by 58 pct drop in loss incurred

* Shares up 15 pct before the bell
(Recasts; adds details, share movement)

July 20 (BestGrowthStock)- MGIC Investment Corp (MTG.N: ) swung to a
surprise quarterly profit, after three straight years in the
red, as losses from defaults at the largest U.S. mortgage
insurer more than halved, sending its shares up 15 percent.

Losses in the second quarter were $320.1 million, down
from $769.6 million last year, primarily due to a decrease in
the default inventory.

At June 31, the percentage of loans that were delinquent,
excluding bulk loans, was 14.97 percent, compared with 15.38
percent at March 31.

Mounting losses from increasing defaults have long plagued
the balance sheets of mortgage insurers like MGIC, Radian Group
(RDN.N: ) and PMI Group (PMI.N: ), and have forced them to seek
capital from investors.

At the end of the first quarter, all the three companies
announced offerings in efforts to raise money to shore up their
capital levels.

Mortgage insurers assist home buyers who cannot offer a 20
percent down payment.

Net income for the second quarter was $24.6 million, or 13
cents a share, compared with a loss of $339.8 million, or $2.74
a share, in the year-ago quarter.

Analysts expected the company to post a loss of 63 cents a
share, according to Thomson Reuters I/B/E/S.

Shares of the Milwaukee-based MGIC were trading up $1.18 at
$9.0 before the bell. The stock, which closed at $7.82 on
Monday on the New York Stock Exchange, has fallen nearly 40
percent in the last 3 months.

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(Reporting by Abhinav Sharma, Sweta Singh in Bangalore;
Editing by Prem Udayabhanu)

UPDATE 2-MGIC Investment posts profit after 3 yrs of losses