Genworth and ORI Feeling Some Pain
Driven by losses in the mortgage insurance and title insurance segments of its business, Old Republic International Corp. here posted a first-quarter 2008 net loss of $19 million, or $0.08 per share, compared with net income of $107.7 million, or $0.46 per share, for the same period in 2007. Meanwhile, at Genworth Financial Inc., Richmond, Va., the other lines of insurance the parent company writes were enough to overcome losses from its mortgage insurance business, unlike at ORI.
Still profitability was down at Genworth to $116 million, or $0.27 per share, compared with $324 million, or $0.71 per share, one year prior.
The pretax loss from ORI's mortgage guaranty business for the period was $122.3 million, while for the title insurance business it was $12.6 million. The delinquency ratio for loans insured in the traditional channel as of March 31 was 5.79%, up from 4.22% one year prior, while bulk channel insured loan delinquencies were at 9.13%, up from 3.51%.
At Genworth, the U.S. mortgage insurance business lost $36 million. (c) 2008 Mortgage Servicing News and SourceMedia, Inc. All Rights Reserved. http://www.mortgageservicingnews.com/ http://www.sourcemedia.com/