AIG 2012 Annual Report Download - page 35

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Other Operations
offers private residential mortgage guaranty insurance,
which protects mortgage lenders and investors from loss due to borrower default and loan foreclosure. With over
1,100 employees, United Guaranty currently insures over one million mortgage loans in the United States and has
operations in nine other countries. In 2012, United Guaranty generated more than $37 billion in new insurance
written, which represents the original principal balance of the insured mortgages, becoming the leading provider of
private mortgage insurance in the United States and is the highest rated private mortgage insurance company in the
U.S.
Mortgage Guaranty Business Strategy
Risk Selection: Ensure the high quality of our business through a continuous focus on risk
selection and risk based pricing using a proprietary, multi-variant risk evaluation model and
disciplined underwriting approach.
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Innovation: Focus on innovation through the development and enhancement of products,
technology, and processes, addressing the needs of stakeholders in the mortgage system.
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Ease of Use: Eliminate complexity in the mortgage insurance system to create growth
without sacrificing disciplined risk selection and management.
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Expense Management: Streamline our processes through the use of technology and shared
services to more quickly react to the changing dynamics of the mortgage industry.
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Mortgage Guaranty Insurance
Products and Services: United Guaranty provides an array of products and services including first-lien mortgage
guaranty insurance in a range of premium payment plans. United Guaranty’s primary product is private mortgage
insurance. The coverage we provide – which is called mortgage guaranty insurance, mortgage insurance, or simply
‘‘MI’’ – enables borrowers to purchase a house with a modest down payment. This is because MI protects lenders
against the increased risk of borrower default related to high loan-to-value (LTV) mortgages – those with less than
20 percent equity. In short, MI lets lenders provide more mortgage loans to more people.
Homeowner Support: United Guaranty also works with homeowners who are behind on their mortgage payments
to identify ways to retain their home. As a liaison between the borrower and the mortgage servicer, United Guaranty
provides the added support to qualified homeowners to help them avoid foreclosure.
Mortgage Guaranty (United Guaranty Corporation or UGC)
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AIG 2012 Form 10-K18
ITEM 1 / BUSINESS / OTHER OPERATIONS