MGIC Investment slides by 9% on plan to not take certain new business

MGIC Investment Corp. (NYSE:MTG) dipped by 9% this morning after announcing it will stop taking a certain kind of new business.

The Milwaukee, Wisc.-based private mortgage insurance provider said before the bell that it will no longer cede new business under excess of loss reinsurance treaties with lender captive insurance companies.

The company said the move is an effort to boost its financial strength, which has been negatively impacted by higher losses resulting from the continuing turmoil in the residential housing and related mortgage lending industries.

By mid-day, MGIC Investment Corp. is at $7.26, down $0.72 from Thursday's close. The stock has traded as low as $3.51 and as high as $36.81 in the past year.

For detailed price information and news stories on MGIC Investment, click MTG.

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