Amerin Reports Record 1998 Earnings; New Insurance Written Increases 93 Percent to $15.2 Billion.

CHICAGO--(BUSINESS WIRE)--Jan. 21, 1999--Amerin Corporation (NASDAQ:AMRN), the parent of Amerin Guaranty, today reported earnings of $51.2 million, or $1.92 per share on a diluted basis, for the year ended December 31, 1998, increases of 26 and 25 percent, respectively over 1997's $40.8 million, or $1.54 per share. Excluding realized capital gains and direct merger costs, the earnings per share were $1.91 versus $1.51, an increase of 26 percent.

In the fourth quarter, Amerin earned $12.7 million, or $.48 per share, compared to $11.8 million, or $.45 per share, in the same period last year. Excluding realized capital losses and direct merger costs, the earnings per share were $.52 versus $.42, an increase of 24 percent.

Gerald L. Friedman, Amerin's chairman and chief executive officer, said: "We are extremely pleased with Amerin's record year. Our new insurance written of $15.2 billion was almost double the level of 1997, driven by heavy origination volume and our increased penetration of the market. Consequently, our insurance in force grew at a rate well above the industry average. This growth, coupled with a decline in the loss ratio, drove 1998 earnings up significantly."

Total revenues for the year were $145.9 million, an increase of 30 percent from 1997's $112.1 million. Fourth quarter revenues were $39.8 million, up 25 percent from the fourth quarter of 1997's $31.9 million. Net premiums earned were up 33 percent for the year, $123.1 million versus $92.3 million; and 34 percent for the quarter, $34.7 million versus $25.9 million. Investment income for the full year increased 15 percent to $21.3 million, up from $18.6 million in 1997. For the fourth quarter, it increased by 15 percent from $4.8 million in 1997 to $5.6 million in 1998.

As of December 31, 1998, Amerin's primary insurance in force was $28.1 billion as compared with $20.4 billion at December 31, 1997, an increase of 38 percent. Persistency, or the percentage of insurance remaining in force from one year prior, was 69.3 percent at December 31, 1998, compared with 75.2 percent at September 30, 1998, and 87.2 percent at December 31, 1997.

New insurance written for the year was $15.2 billion, an increase of 93 percent over 1997's $7.8 billion. In the fourth quarter, new insurance written increased 139 percent to $4.8 billion, compared with $2.0 billion a year ago.

Amerin's loss ratio decreased from 32.8 percent for 1997 to 27.9 percent for 1998. At the same time, its expense ratio increased from 26.6 percent for 1997 to 30.6 percent for 1998. This resulted in a combined ratio of 58.5 percent for 1998, down from 59.3 percent for 1997.

As of December 31, 1998, Amerin's percentage of loans in default was 1.41 percent, compared to 1.42 percent at September 30, 1998, and 1.43 percent at December 31, 1997.

Amerin provides private mortgage insurance to leading mortgage originators. The company's products are discount Borrower-Paid Mortgage Insurance and Lender-Paid Mortgage Insurance. Amerin's approach to sales and underwriting reduces the cost of its insurance and offers operating efficiencies to mortgage lenders and their borrowers. Home buyers who make down payments of less than 20 percent of the value of the home are usually required by the mortgage lender to qualify and pay for mortgage insurance on their mortgage loans. If the homeowner defaults on the loan, mortgage insurance pays the lender or the owner of the loan for its losses up to a specified coverage amount. On November 23, 1998, Amerin Corporation and CMAC Investment Corporation announced a merger agreement to create the country's second largest mortgage insurance company.

The following is a "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995:

The statements contained in this release that are not historical facts are forward-looking statements. Actual results may differ materially from those projected in the forward-looking statements. These forward-looking statements involve risks and uncertainties, including but not limited to, the following risks: that interest rates may increase rather than remain stable or decrease; that housing demand may decrease for any number of reasons, including changes in interest rates, adverse economic conditions, or other reasons; that Amerin's market share may decrease as a result of changes in underwriting criteria by Amerin or its competitors, or other reasons; and changes in the performance of the financial markets, in the demand for and market acceptance of Amerin products, increased competition from government programs and the use of substitutes for mortgage insurance, and in general economic conditions. Investors are also directed to other risks discussed in documents filed by the Company with the Securities and Exchange Commission.

                 Amerin Corporation and Subsidiaries
                 Consolidated Statement of Operations

Dollars in thousands, except
per share amounts.      Three Months Ended        Twelve Months Ended
                            December 31,               December 31,
                     1998               1997     1998             1997

Revenues:
  Net premiums
    written         $35,668          $26,162    $125,383       $94,740
  Increase in
    unearned premiums  (932)            (238)     (2,283)       (2,411)
  Net premiums
    earned           34,736           25,924     123,100        92,329

  Net investment
    income            5,584            4,836      21,312        18,607
  Realized investment
    gains (losses)     (558)           1,105       1,515         1,167
Total revenues       39,762           31,865     145,927       112,103

Expenses:
  Losses incurred     8,870            9,211      34,354        30,272
  Marketing, policy
    issue, and
    underwriting
    expenses          7,179            2,597      22,340        10,520
  Other operating
    expenses          4,697            3,731      16,046        14,643
  Merger costs        1,098                -       1,098             -

Total losses and
  expenses           21,844           15,539      73,838        55,435

  Income before
    taxes            17,918           16,326      72,089        56,668

    Income taxes      5,196            4,480      20,906        15,909
  Net income        $12,722          $11,846     $51,183       $40,759

Average common and
  common equivalent
  shares
  outstanding      26,671.9         26,595.6    26,709.2      26,483.3

Net income per share
  Basic               $0.48            $0.45       $1.94         $1.56
  Diluted             $0.48            $0.45       $1.92         $1.54

Operating earnings
  per share (1)       $0.52            $0.42       $1.91         $1.51

Operating ratios:
 Statutory (2)
  Loss ratio           25.5%            35.5%       27.9%         32.8%
  Expense ratio        26.2%            24.5%       25.4%         25.6%
  Combined ratio       51.7%            60.0%       53.3%         58.4%
Consolidated GAAP
  Loss ratio           25.5%            35.5%       27.9%         32.8%
  Expense ratio        33.3%            24.2%       30.6%         26.6%
  Combined ratio       58.8%            59.7%       58.5%         59.3%

                          OTHER INFORMATION

Dollars in millions

New insurance
  written ("NIW")    $4,805           $2,013     $15,164        $7,842
New primary risk
  written            $1,154             $512      $3,730        $2,004
New pool risk written   $69               $3         $86            $7

Product mix as a % of NIW:
  95% LTV              31.5%            41.2%       34.4%         41.0%
  ARMs                  2.0%             4.3%        2.3%          7.6%
  95% LTV/ 30%
    coverage           29.8%            40.0%       32.8%         39.4%
  90% LTV/ 25%
    coverage           41.0%            43.1%       41.8%         44.5%
  Monthly premium      90.5%            88.8%       89.3%         87.7%
  Refinances           41.1%            20.9%       36.8%         14.8%

(1) Operating earnings per share exclude the after-tax effect of
realized investment gains and direct merger costs.

(2) Operating ratios presented are on the basis of statutory
accounting practices and reflect the combined results of Amerin's
insurance company subsidiaries and do not include non-insurance
company costs or changes in the level of deferred policy acquisition
costs.

(3) Certain amounts in the 1997 financial statements were
reclassed to conform to the 1998 presentation.



                  Amerin Corporation and Subsidiaries
                      Consolidated Balance Sheet

Dollars in thousands,
except per share amounts.       December 31,   December 31, December 31,
                                   1998            1997         1996
Assets

Investments, at fair value (1)   $439,142        $377,720    $328,793
Cash and cash equivalents           7,186           4,456       1,176
Accrued investment income           6,024           5,872       4,393
Deferred policy acquisition costs  16,839           7,776       5,569
Leasehold improvements, furniture
  and equipment, at cost, net of
  accumulated depreciation         13,203           9,315       4,368
Goodwill, net of accumulated
  amortization                      1,984           2,133       2,282
Other assets                       15,854           8,029       8,243
Total assets                     $500,232        $415,301    $354,824


Liabilities and Common
  Stockholders' Equity

Liabilities:
Unearned premiums                 $26,114         $23,352     $20,525
Loss reserves                      43,849          31,280      18,730
Due for securities purchased        2,699               -       9,677
Accrued expenses and other
  liabilities                      18,340          10,514       5,283
Total liabilities                  91,002          65,146      54,215


Common Stockholders' Equity       409,230         350,155     300,609

Total liabilities and common
  stockholders' equity           $500,232        $415,301    $354,824
-----
Book value per share               $15.44          $13.39      $11.53

(1) Investments include
 unrealized gains on securities
 marked to market pursuant to
 FAS 115:                         $16,837         $12,660        $342


Dollars in millions.                  OTHER STATISTICAL INFORMATION

Direct primary insurance
  in force                        $28,147         $20,394     $14,777
Direct primary risk in force        7,032           5,149       3,671

Amerin Guaranty Corporation:
  Risk-to-capital ratio              18.3            16.1        13.3

Insured loans                     226,953         164,314     120,385
Persistency                          69.3%           87.2%       87.6%
Loans in default                    3,203           2,352       1,439
Default rate                         1.41%           1.43%       1.20%
Reserve per delinquent loan        13,554          13,287      13,016