MGIC Investment Corp. and Radian Group Inc., the two largest U.S. mortgage insurers, are benefiting as their rivals falter.
MGIC's main unit wrote $1.3 billion in new policies in August, an 8% increase from the previous month, the Milwaukee insurer said Wednesday in a statement. Stronger mortgage insurers may be gaining as rivals including PMI Group Inc. and Old Republic International Corp. were told by regulators to stop selling policies, Radian Chief Executive S.A. Ibrahim said Wednesday.
"While it's unfortunate that two worthy competitors are not writing business anymore, for those of us writing business still, it means there's more business to write," Ibrahim said at a conference in New York by KBW Inc.
PMI and Old Republic were forced to halt sales this year after failing to meet regulators' capital requirements. Radian didn't disclose policy sales Wednesday.
MGIC's Mortgage Guaranty Insurance subsidiary, which pays lenders when homeowners default and foreclosure fails to recoup costs, said the number of primary delinquent loans fell to 183,338 at the end of August, from 185,093 a month earlier.
