Bailed-out insurer American International Group (AIG) is planning to retain its hold on mortgage insurance business unit, United Guaranty (UGC).
Reuters quoted AIG’s CEO Bob Benmosche as saying that the unit provides the company with insights into the mortgage market to evaluate its investments in mortgage-backed securities.
"It’s enhancing whatever we do here. For now we see it as a keeper," Benmosche added.
AIG has been selling off its business units to repay a federal bailout, but selling off UGC is not part of the company’s core operations.
Reuters has also reported that the company has no plans either to boost UGC or to participate in the reorganisation of the mortgage insurance market.
UGC had an operating income of $13m in the second quarter of 2011, a decrease from $226m in 2010, with declining new delinquent loans, as reported by Bizjournals.