Arch Capital Corp.'s mortgage insurance business saw its second-quarter underwriting income increase 128% when compared with the prior year, to $37.8 million
This segment includes both Arch U.S. MI as well as the company's mortgage reinsurance line.
Net premiums written increased 81% year-over-year to $111.5 million. While two-thirds of that is due to an increase from the Australian mortgage reinsurance business, much of the rest comes from growth in the U.S. flow mortgage insurance business. This line item also benefited from government-sponsored enterprise risk-sharing deals receiving insurance treatment for accounting purposes.
Arch U.S. MI had $6.4 billion of new insurance written for the quarter, up from $2.7 billion one year prior. Over three-quarters of the business came from bank and nonbank mortgage lenders, up from 50% in the second quarter of 2015. When Arch Capital acquired CMG Mortgage Insurance from PMI Group and CUNA Mutual, all of its NIW came from credit unions.