MGIC Plans to Sell Shares in Effort to Increase Capital
The largest U.S. mortgage insurer MGIC Investment Corp announced on Monday that it plans to sell shares to help increase capital at its main subsidiary Mortgage Guaranty Insurance Co. The company has yet to decide on the size of the planned offering, but planned to make that decision by mid-to-late-March.
The funds from the share offering would help it expand the volume of new insurance business, according to the Milwaukee-based company, and adding the funds would be used for general corporate purposes.
MGIC posted a $1.47 billion loss in the fourth-quarter as more U.S. homeowners fell behind on payments and has said it may make other capital raising moves in addition to the share offering.
Published on March 4, 2008
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