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Fri, November 2, 2012

Mortgage Guarantors Surge After MGIC/Freddie Mac Deal Resolving Coverage Dispute Announced


Published on 2012-11-02 05:32:00 - Market Wire
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November 02, 2012 08:20 ET

Mortgage Guarantors Surge After MGIC/Freddie Mac Deal Resolving Coverage Dispute Announced

Five Star Equities Provides Stock Research on Genworth Financial and Old Republic International

NEW YORK, NY--(Marketwire - Nov 2, 2012) - Mortgage insurers have experienced a resurgence in 2012 as the U.S. housing market has continued its steady recovery. Recent data from the Commerce Department has shown that home sales in the U.S. are at its fastest annual pace in over two years. Five Star Equities examines the outlook for companies in the Property & Casualty Insurance Industry and provides equity research on Genworth Financial Inc. (NYSE: [ GNW ]) and Old Republic International Corp. (NYSE: [ ORI ]).

Access to the full company reports can be found at:
[ www.FiveStarEquities.com/GNW ]
[ www.FiveStarEquities.com/ORI ]

"All the things that were really holding back housing are finally starting to lift," said Guy Berger, a U.S. economist at RBS Securities Inc. "It really is tough to find any bad signs here. Inventories are very, very lean. Assuming the economy remains on track, housing should continue to improve for the rest of the year and into 2013."

Mortgage guarantors have also received a lift from a preliminary deal between MGIC Investment and Freddie Mac resolving a coverage dispute, which would have prevented the insurer from backing some loans. As was the case with MGIC, soured home loans have caused some insurers to breach the 25-to-1 ratio of risk relative to capital preventing them from selling new coverage.

Five Star Equities releases regular market updates on the Property & Casualty Insurance Industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at [ www.FiveStarEquities.com ] and get exclusive access to our numerous stock reports and industry newsletters.

Genworth Financial provides insurance, wealth management, investment and financial solutions. As of December 31, 2011, it had more than 15 million customers, with a presence in more than 25 countries. For the third quarter of 2012 the company reported a net income of $34 million, compared with a net loss of $16 million in the third quarter of 2011. The company stated that they are considering selling their international-protection unit within the next two to three years.

Old Republic currently offers investors an annual dividend of $0.71 per share for a yield of roughly 7.2 percent. The company reported a net loss of $14.8 million in the third quarter of 2012, a significant improvement form the net loss of $116.5 million in the year-ago quarter. The narrowed loss was a result of a stronger mortgage-insurance unit, which reported fewer delinquencies.

Five Star Equities provides Market Research focused on equities that offer growth opportunities, value, and strong potential return. We strive to provide the most up-to-date market activities. We constantly create research reports and newsletters for our members. Five Star Equities has not been compensated by any of the above-mentioned companies. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at:
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