Arch regains top market share among mortgage insurers

Arch MI U.S. returned to having the No. 1 market share among private mortgage insurers as it increased its new insurance written 15% over the previous year.

Arch's new insurance written totaled $19.9 billion for the quarter, compared with $11.4 billion in the first quarter and $17.3 billion for the second quarter last year.

The company benefited from increased demand for policies for home purchases, which more than offset a reduction in its single-premium writings. New monthly premium policies made up 94.3% of the quarter's NIW, up from 85.7% one year prior.

Arch and Radian Guaranty swapped spots as measured by market share although Radian's NIW of $16.4 billion (a 14.5% year-over-year increase) represented the best quarter ever for that company. In the first quarter, Radian's NIW was approximately $300 million higher than Arch's.

Arch's mortgage segment, which includes its reinsurance and international business, reported underwriting income of $205.8 million, up 12% from the previous year's $183.6 million.

Gross premiums were 1.6% lower year-over-year, reflecting the lower level of single-premium business and a decrease in Australian mortgage reinsurance business, partially offset by growth in the monthly premium business and government-sponsored enterprise credit-risk-sharing transactions.

At the end of the second quarter, Arch's total insurance-in-force was $359.9 billion, of which $267.9 billion was from Arch MI U.S.

Genworth's U.S. mortgage insurance business also benefited from stronger demand, increasing 16% from the previous year, to $11.4 billion from $9.8 billion.

Its adjusted operating income was $137 million, compared with $111 million in the first quarter and $91 million one year ago. Genworth's loss ratio was 8%, helped by a favorable $15 million pretax loss reserve adjustment.

While Genworth finally received approval from the Committee on Foreign Investment in the U.S. to be acquired by China Oceanwide, the deal still needs approval by Delaware insurance regulators and Chinese officials. The parties extended the deadline for the transaction until Aug. 15.