Arch Capital Group's mortgage insurance segment had a 77% year-over-year increase in operating income as net premiums written increased by 105%. New insurance written by Arch MI U.S. increased 34%. The segment also includes domestic and international mortgage reinsurance operations.
There was $23.9 million of operating income for the segment in the first quarter of 2016, up from $13.5 million one year ago. The increase in net premiums written was driven by the Australian mortgage reinsurance business.
Arch MI U.S. continues to make inroads in diversifying its business away from only insuring mortgages underwritten by credit unions, as 69% of its first-quarter new insurance written of $2.9 billion came from banks and mortgage bankers. Before it was acquired by Arch Capital, the mortgage insurer was a joint venture of PMI Group and CUNA Mutual that only did business with credit unions.
In the first quarter of 2015, Arch MI U.S. had NIW of $1.8 billion, of which 50% came from banks and mortgage banks.
Arch's market share growth trails National MI, whose
