Posted To: Pipeline Press
Rumors are swirling that AIG has decided to pursue a partial spin-off of its mortgage insurance business, United Guaranty (UG). Stay tuned for tomorrow when AIG releases it strategic plan. Those "in the know" know that UG utilizes a "black box" model for pricing mortgage insurance policies, unlike many competitors who use published rate cards (see next paragraph). KBW reports that UG loss ratios "have been about 20% or slightly above over the last year, while the expense ratio has been about 25%. As of 3Q15, the equity allocated to AIG's mortgage insurance segment was $3.4 billion." MGIC Investment Corp . had its earnings sliced and diced. In general MGIC's earnings beat forecasts due to lower incurred losses. The company announced it was revising its rate card but noted that returns should...(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.
from Mortgage News Daily http://ift.tt/1S6dp6W
No comments:
Post a Comment