United Guaranty Corp.'s second-quarter pretax operating income fell 25% from a year ago due to a less favorable adjustment to its loan loss reserves.
The mortgage insurance business earned $157 million for parent company American International Group, down from $210 million in pretax operating income last year. The big difference was that United Guaranty was able to adjust a previous loan loss reserve in the second quarter of 2014 by $89 million in its favor, versus an adjustment of only $17 million for the most recent period.
During the second quarter, UG had $15.2 billion in new insurance written, up 37% on a year-over-year basis. The Greensboro, N.C.-based company was the largest underwriter of new private mortgage insurance policies during the quarter as both
Net premiums written by UG increased 11% to $277 million during the same timeframe.
Separately, the mortgage insurance segment of Arch Capital Group reported last week it had second quarter underwriting income of $16.6 million, compared with $8.8 million one year ago. The results of Arch MI U.S., as well as the parent company's mortgage reinsurance business, are included in this segment.
Arch U.S. MI had $30.6 million of net premiums written during the quarter, of which nearly $24 million came from credit union clients. One year prior, nearly all of the $25 million of net premiums written came from credit unions,
There was $2.7 billion of NIW during the quarter, approximately 50% of which came from banks.
