MGIC Investment Corporation (MTG) Earnings Call Transcript & Summary

I'm Michael Zimmerman, MGIC Investment Corporations Senior President of Investor Relations. Welcome to our 2021 annual Shareholder meeting, which we are hosting in a virtual format again this year. The constraints placed upon us by the COVID-19 pandemic. [Audio Gap] questions and the leading materials include the rules of conduct for the meeting. Please read these rules. [Audio Gap] While we will not be questioning at this meeting, we encourage you to listen to our first quarter 2021 earnings call for May 6, 2021. Details for that meeting can be found on our website. Now I'd like to turn the meeting over to Curt Culver, our Chairman of the Board to chair the meeting.

Good morning. As Mike indicated, I'm Curt Culver, and I will chair the meeting. The meeting is officially called to order. Joining me in hosting the meeting are Tim Mattke, our CEO; Kenny Jastrow, our long-term lead Director who is stepping down at the conclusion of this meeting, and Paula Maggio, our General Counsel and Corporate Secretary. Before we move to the business of the meeting, I wanted to express my gratitude to Kenny for his years of service, his always wise and thoughtful counsel and his focus and dedication on our Board governance and on our MGIC coworkers and his relentless pursuit of helping management enhance shareholder value. We are a better, stronger company for his efforts. Kenny, thank you. Kenny?

Thank you, Curt. Today is my 26th consecutive annual meeting of shareholders of MGIC. For me, I have been involved with MGIC almost half of my entire business career. First to our shareholders and Board of Directors, it has been an honor and a privilege to serve as a member of the Board of Directors. Thank you for allowing me to be a part of this wonderful company during my 26 years as a Director of MGIC, I had the good fortune to serve with very knowledgeable and thoughtful board members. Every director played a key role helping MGIC accomplish its goals and objectives. To each of them, I offer my heartfelt appreciation for their friendship and for our collective effort working together to support the company and all of its employees. In addition, throughout my time on the Board, MGIC was led by 4 exceptional Chief Executive Officers, Bill Lacy, Curt Culver, Pat Sinks and Tim Mattke. Each CEO provided outstanding leadership, each CEO was dedicated to the success of MGIC, each CEO was exactly the right person at the right time to lead MGIC, each CEO served with integrity and created a culture of excellence, founded on the principles of honesty and fair dealing, and each CEO focused on creating shareholder value and ensuring a safe and enjoyable work environment for all employees. MGIC is the leader in the mortgage insurance industry and has helped millions of families and individuals realize the dream of homeownership. Our nation values homeownership, and MGIC has a critical role to make housing available to all people. The future is very bright for housing and for MGIC. The team is in place, and I very much look forward to watching the success of the company in the years ahead. So it's time for me to say goodbye. MGIC has a very special place in my heart, especially all of its employees who, over the years, have given so much to make the company the best. Thank you.

Kenny, thank you again. You will truly be missed, and thanks so much for all you've done to make our company better. God bless you. Moving to the business of the meeting. Paula has Affidavit certifying that our annual report and proxy statement were mailed beginning on March 26, 2021, to shareholders of record as of March 12. The Affidavit will be filed with the records of this meeting. A list of shareholders entitled to vote is available for inspection in the meeting materials. Peter Descovich, representing Broadridge Financial Solutions, is serving as the inspector of election for this meeting. Peter, do we have a quorum?

Yes, Mr. Culver. More than 82% of the shares entitled to vote are represented in person or by proxy at this meeting.

Thank you. At our meeting today, we will be acting on 3 matters: First, electing 13 directors; second, conducting an advisory vote regarding approval of our executive compensation; and finally, ratifying the appointment of PricewaterhouseCoopers as our independent registered public accounting firm for 2021. All of these items were explained in our proxy statement. Our first business item is the election of 13 directors named in the proxy statement. It is my pleasure to introduce the Director standing for reelection each of whom is virtually attending this meeting. First, Analisa Allen, an information technology consultant with the Gerson Lehrman Group and formerly Chief Information Officer of Data and Analytics and of Home Lending Technology in each case for the consumer bank at JPMorgan Chase. Next, Dan Arrigoni, formerly President and Chief Executive Officer of U.S. Bank Home Mortgage Corporation; third, Chuck Chaplin, formerly President and Chief Financial Officer of MBIA; next, Jay Hartzell, President of the University of Texas at Austin; next, Tim Holt, formerly Senior Vice President and Chief Investment Officer of Aetna; Jody Kozlak, Founder and CEO of Kozlak Capital Partners and Former Global Senior Vice President of Human Resources for Alibaba; Michael Lehman, our lead Independent Director; Mike is Interim Chief Operating Officer of the Wisconsin School of Business and previously was Chief Financial Officer of a number of companies including Sun Microsystems; Melissa Lora, formerly President of Taco Bell International; Tim Mattke, who I've already introduced; Skip Poliner, formerly President of Northwestern Mutual; sheryl Scully, formerly City Manager of the City of San Antonio, Texas, the Chief Executive Officer of the Municipal Corporation; Mark Zandi, Chief Economist for Moody Analytics and myself. Notice of no other nomination was given to the corporation. As a result, under our bylaws, no other nomination can be made. The Board of Directors unanimously recommends a vote for each of the 13 nominees. The second item of business is an advisory vote to approve executive compensation for 2020. The Board of Directors unanimously recommends a vote for the approval of this matter. The third and final agenda item is ratifying the appointment of the corporation's independent registered public accounting firm. The Audit committee has reappointed PricewaterhouseCoopers for 2021. The Board of Directors unanimously recommends a vote for the approval of this matter. Also attending to meet virtually and available for questions is Kathy-Ann Edwards, our engagement partner from PricewaterhouseCoopers. Tim, have we received any questions that are pertinent to the business of the meeting?

Curt, no, we have not received any questions pertinent to the business of the meeting. Remember that our first quarter 2021 earnings call is scheduled for May 6, 2021, and we encourage you to listen to that call. With that, I'll turn the meeting back over to Curt.

Thanks, Tim. The polls are now open for all agenda items. Any shareholder who hasn't yet voted or who wishes to change their vote may do so by clicking the vote here button on their screen and following the instructions therein. Shareholders who have sent in proxies or voted via telephone or online and who do not want to change their votes do not need to take any further action. We will pause briefly while the votes are being counted. [Voting]

Now that everyone has had an opportunity to vote, the polls are now closed. Peter, may we have your report?

On the election of 13 directors, the preliminary results reflect that at least 94% of the votes cast were voted for the 13 nominees. On the advisory proposal to approve our executive compensation, the preliminary results reflect that at least 96% of the votes cast were cast for the approval. On the proposal to ratify the appointment of PricewaterhouseCoopers as our independent registered accounting firm, the preliminary results reflect that at least 92% of the votes cast were voted for the proposal. This report is subject to final tabulation, but that should not change the results materially. Also, the final report will include a number of votes on each item.

Thank you, Peter. On the basis of the inspector's report, each of the nominees has been duly elected as a Director of MGIC Investment Corporation, executive compensation for 2020 has been approved, and the appointment of PricewaterhouseCoopers as independent registered public accounting firm for 2021 has been ratified. No notice of any other business was given to the corporation. Under our bylaws, the formal business of our meeting is over. In my capacity as Chairman, I declare the meeting adjourned. Thank you all for being with us today. Take care. Thank you.