With the recent completion of a major acquisition, Arch Mortgage Insurance Co.’s book of business skyrocketed and delinquency deteriorated.
Arch Capital Group LTD, the parent of the mortgage insurer, disclosed in its fourth-quarter 2015 earnings report pre-tax income of $83 million.
Profits sank from the $317 million that was generated in the previous three-month period but improved from $39 million one year previous.
Underwriting income from just the mortgage insurance business was $42 million, an improvement over $37 million in the third quarter and $18 million earned in the fourth-quarter 2015.
During the final-three months of 2016, Walnut Creek, California-based Arch M.I. wrote $8.788 billion in new insurance. Business was mostly unchanged from $8.753 billion written three months earlier
but soared from $2.575 billion in the same three months during 2015.
For all of last year, new insurance written amounted to $26.867 billion, more than doubling the $10.271 billion written during all of 2015.
Insurance in force skyrocketed to 1,153,630 loans for $234.518 billion as of year-end 2016 from 199,661 loans for $40.258 billion as of Sept. 30 and
148,943 policies in force for $27.101 billion as of year-end 2015.
The dramatic increase in the book of business reflects Arch Capital’s Dec. 31, 2016, acquisition of United Guaranteed Corp. from AIG.
Delinquency finished 2016 at 2.6 percent, more than doubling from 1.2 percent as of Sept. 30, 2016,
and leaping from 1.8 percent at the conclusion of 2015.
