New quarterly business at United Guaranty rose by nearly half, while the unit’s income increased, its book of business grew and defaults declined.
Parent American International Group Inc. reported that it earned $2.9 billion from continuing operations before income taxes in the second quarter.
The details, as well as other operational and financial results, were provided in the New York-based company’s second-quarter 2016 earnings report.
Earnings swung from an $0.2 billion loss three months earlier and was better than the $2.6 billion profit a year earlier.
Within just the mortgage guaranty business, pre-tax operating income was $187 million, more than the first quarter’s $163 million and also better than $157 million in the second-quarter 2015.
Primary new insurance written by the Greensboro, North Carolina-based company on domestic first liens was $12.985 billion in the second-quarter 2016.
Business jumped from $8.827 billion in the prior three-month period
but came up short versus the $15.190 billion written in the same quarter last year.
There was primary insurance in force on 914,646 first liens for $186.406 billion.
United Guaranty’s book of business grew from 908,851 policies for
$184.201 billion three months earlier and 879,045 policies for $174.250 billion at the middle of 2015.
The default rate was trimmed to 2.9 percent as of mid-2016 from 3.0 percent as of March 31 and 3.6 percent as of June 30, 2015.
There was no discussion about the initial public offering plan for United Guaranty first disclosed by AIG in January 2016.
