Arch's 3Q Mortgage Insurance Income Rises 119%

Arch Capital Group's mortgage insurance business had underwriting income of $37.4 million in the third quarter, an increase of 119% compared with the $17.1 million earned one year prior.

The segment includes Arch's private mortgage insurance underwriting unit, Arch MI U.S., as well as domestic and international mortgage reinsurance businesses.

Arch MI U.S. had $8.75 billion of new insurance written, of which 79% came from bank and independent mortgage bankers and only 21% from credit unions. In the second quarter there was $6.4 billion of NIW, while in the third quarter of 2015 it had $3.2 billion of NIW.

When Arch acquired what had been known as CMG Mortgage Insurance in January 2014, it had only written policies on loans originated by credit unions.

Arch MI U.S. will add even more business from banks and independent mortgage bankers when it completes the purchase of United Guaranty Corp., which has been No. 1 in NIW, from American International Group.

At the end of the quarter Arch MI U.S. had $10.2 billion of risk-in-force and $40.3 billion of insurance-in-force.