MGIC Investment Corp. (MTG), Genworth Financial Inc (GNW): Check out These Mortgage Insurers for a Good Play on the Housing Market Rebound

Radian, on the other hand, had 81,577 delinquent loans at the beginning of April this year, down from 85,109 at the end of the previous month. In addition, this figure was down around 20% from the figure during the same period a year ago when the company had 101,566 delinquent loans on its books.

In comparison, during the first quarter of this year, Genworth Financial Inc (NYSE:GNW) reported its first quarterly profit from U.S. mortgage insurance since 2007. In addition to U.S. mortgage insurance, Genworth provides insurance for overseas mortgages, a part of the business which has remained relatively profitable during the past few years. That said, the company still has a number of delinquent U.S. mortgages on its books. During April this year, Genworth had  62,804 delinquent loans on its books, down from 79,474 in the same period last year, a fall of 21%.

Moreover, Genworth Financial Inc (NYSE:GNW) has reported a profit during the last three years, thanks to the company’s profitable life, health, and international mortgage insurance businesses. Moreover, after reporting a loss in 2009, the company reported profits of around $50 million in both 2010 plus 2011, and profits of $330 million during 2012. Over the same period, EPS grew by 390% and current estimates predict the company’s EPS are set to grow 100% this year. In addition, Genworth Financial Inc (NYSE:GNW)’s Q1 profit for this year was double that of 2012.

Conclusion

So overall, the housing market is recovering and all three mortgage insurance providers above are reaping the benefits as numbers of delinquent mortgages start to fall. That said, while the country’s biggest private mortgage insurer, MGIC Investment Corp. (NYSE:MTG), is starting to see a marginal improvement in its profitability, Genworth Financial Inc (NYSE:GNW) could be the company of choice due to its diversification and profitable life and health insurance operations.

The article Check out These Mortgage Insurers for a Good Play on the Housing Market Rebound originally appeared on Fool.com and is written by Rupert Hargreaves.

Fool contributor Rupert Hargreaves owns shares of Genworth Financial. The Motley Fool has no position in any of the stocks mentioned. Rupert is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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