(Reuters) – MGIC Investment Corp's risk-to-capital ratio breached the level considered safe by regulators and the mortgage insurer posted its eighth straight quarterly loss.
At June 30, the preliminary risk-to-capital ratio of its combined insurance operations was 30 to 1. Mortgage insurance regulators commonly allow for a maximum risk-to-capital ratio of 25 to 1.
The Wisconsin Insurance Commissioner, which is MGIC's primary regulator, uses a minimum policyholder position (MPP) to gauge the health of an insurer. MPP is the minimum amount of money an insurer would need to meet claims.
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