United Guaranty Earns Money in 1Q for AIG

United Guaranty Corp., the private mortgage insurer which is a subsidiary of American International Group, reported 1Q13 operating income of $41 million compared with operating income of $8 million in the first quarter of 2012. The improved results are in part attributed an increase in net premiums earned. In 4Q12, UGC had an operating loss of $45 million.

New insurance written during 1Q13 totaled $10.6 billion, up from $6.5 billion for the same period in 2012. AIG said this year-to-year improvement was driven primarily by increased mortgage originations as well as new and expanded distribution channels.

Based on the numbers reported by the fourth publicly traded mortgage insurers, Radian was No. 1 in 1Q NIW at $10.9 billion, followed by UGC. MGIC was third at $6.5 billion, followed by Genworth’s $4.7 billion.

Net premiums written were $246 million for the first quarter of 2013, compared to $191 million in the first quarter of 2012.

The overall delinquency rate fell to 7.9% in the first quarter compared with 11.4% one year prior.

Parent company AIG had net income of $2.2 billion for 1Q13, down from $3.2 billion in 1Q12, but that quarter included income from Maiden Lane II and Maiden Lane III, among other sold or liquidated assets.