Lower delinquencies boost Old Republic MI ratios
Net income decreases, but revenue increases
Less people made claims on their mortgage insurance at Old Republic in the second quarter of 2016 compared to last year.
The lower ratios for 2016 were due to declines in reported delinquencies as well as higher rates of cured defaults, or defaults that were resolved without payment.
Additionally, developments of claim reserves lowered claim ratios by 41.9 percentage points in the second quarter and 40.5 percentage points in the first half of 2016.
During 2015, the reductions amounted to 80.6 percentage points for both periods.
The continuation of a low mortgage rate environment and improving housing and commercial property markets led to higher revenue from title premiums and fees in this year's second quarter and first six months, according to the earnings release.
The improvements were achieved in spite of adverse effects that mortgage disclosure rules are having on the consummation of real estate transactions.
Overall, Old Republic’s net income decreased to $101 million from $102 million last year. On the other hand, its revenue increased to $1,435.5, up from $1,393.3 last year. Diluted earnings per share increased slightly from $0.32 last year to $0.34 the second quarter of 2016.