MILWAUKEE: Mortgage insurer MGIC Investment Corp. said Wednesday it lost almost $1.5 billion (euro1.03 billion) for the last three months of 2007 on higher home delinquencies and payouts. It also said it is looking for ways to boost its capital.

Chairman and chief executive Curt S. Culver said the company still doesn't see making money this year, if delinquencies and losses continue to rise and fewer homeowners get back on track with payments.

Its shares tumbled $1.22, or 8.6 percent, to $12.96 in morning trading Wednesday.

The Milwaukee-based company said it lost $1.47 billion (euro1.01 billion), or $18.17 (euro12.46) per share, in the fourth quarter compared with a profit of $121.5 million (euro83.3 million) or $1.47 (euro1.01) per share in the same period a year ago.

A survey by Thomson Financial indicates Wall Street analysts had expected the company to lose, on average, $6.77 (euro4.64) per share. Those estimates typically exclude one-time items.

The company said it has hired an advisor to assist it in exploring alternatives for increasing its capital, though Culver said MGIC has enough money to pay claims.

The company announced late last month that it could pay $2 billion (euro1.37 billion) in claims this year, up from previous estimates of up to $1.5 billion (euro1.03 billion). It finished 2007 paying out $870 million (euro596.46 million) in claims, up from $611 million (euro418.89 million) in 2006. Home buyers typically must get mortgage insurance when they put down less than 20 percent of their home's value. When they miss payments, the insurers pay lenders. If homes end up in foreclosure, both lenders and insurers lose money.

Revenues for the fourth quarter were $399.1 million (euro273.62 million), up 8.7 percent from $367.2 million (euro251.75 million) in the last three months of 2006. The company increased its net premiums written for the quarter nearly 25 percent to $380.5 million (euro260.87 million), up from $367.1 million (euro251.68 million) in the same quarter in 2006.

MGIC finished 2007 with a loss of $1.67 billion (euro1.14 billion), or $20.54 (euro14.08) a share. In 2006, MGIC earned $564.7 million (euro387.15 million), or $6.65 (euro4.56) a share. For the year, revenues rose to $1.69 billion (euro1.16 billion), from $1.47 billion (euro1.01 billion) in 2006. New insurance written was $76.8 billion (euro52.65 billion), compared to $58.2 billion (euro39.9 billion) in 2006.