PMI

Insurance giant American International Group’s announcement Tuesday that it plans to split off its mortgage insurance business takes the prospect of a broader breakup off the table in the short term, but some observers think the firm may still break itself up eventually.

The mortgage industry can better manage disparate regulatory requirements with a comprehensive approach that streamlines compliance.

American International Group announced $3.6 billion in new costs to fill a reserve shortfall and said it will hold an initial public offering for its mortgage insurer and sell an adviser network as CEO Peter Hancock seeks to boost returns and protect his job after criticism from activist investor Carl Icahn.

American International Group's plan to spin off a portion of its mortgage insurance unit is "almost pointless" given the challenges that CEO Peter Hancock faces to fix the much larger property-casualty business, an analyst at Keefe, Bruyette & Woods said.

American International Group Inc., the insurer being pressured by activist investor Carl Icahn to shrink the company, plans to pursue a partial spinoff of its mortgage guaranty unit.

MGIC Investment Corp. posted net income of $102.4 million in the fourth quarter, a gain of 36% from the $75.1 million it earned in the same period in 2014.

Activist investor Carl Icahn, who's pushing American International Group Inc. Chief Executive Officer Peter Hancock to shrink the insurer and boost returns, said the CEO must offer "a drastic strategic shift" at a presentation scheduled for next week. Icahn's plan includes splitting AIG into three units, one being United Guaranty Corp., a private mortgage insurer.

Radian Guaranty Inc. is in compliance with the government-sponsored enterprises capital standards after receiving $325 million in cash and securities from parent company Radian Group Inc.

Arch Mortgage Insurance introduced a new pricing program to better aligns a policy's risk with the amount of the premium. But analysts have expressed concerns about pricing competition.

The Federal Housing Finance Agency is giving private mortgage insurers some hope this holiday season that they might get a chance to offer deeper mortgage insurance on Fannie Mae and Freddie Mac single-family loans.