Mortgage Insurer Radian Posts $347 Million Loss
We've Nattered about the Mortgage Insurance safety net before...
Mortgage insurer Radian Group reported Q1 profit increased 72% due to unrealized gains on derivatives and securities.
Excluding the gains, Radian swung to a pretax loss of $347 Million or $215 Million net loss during Q1.vs $107 Million profit a year ago.
Radian booked a net unrealized gain of $707.8 million on the value of derivatives and securities during the quarter
as losses tied to deterioration in the credit markets were more than offset by a change in how Radian values its derivative holdings.
Provisions to cover future claims increased dramatically as mortgages continue to default at greater rates.
Premiums earned +13%, however -21% Yoy; as Radian set aside $582.7 million for claims provisions during Q1 vs $107 million a year ago.
As of March 31, Radian had $1.7 billion in mortgage insurance loss reserves. Direct claims paid $190 Million vs $95.8 Million, a year ago.
CEO S.A. Ibrahim said the company was still considering "a range of alternatives to strengthen our capital position"
Hattip to the Houston Chronicle
Mortgage insurer Radian Group reported Q1 profit increased 72% due to unrealized gains on derivatives and securities.
Excluding the gains, Radian swung to a pretax loss of $347 Million or $215 Million net loss during Q1.vs $107 Million profit a year ago.
Radian booked a net unrealized gain of $707.8 million on the value of derivatives and securities during the quarter
as losses tied to deterioration in the credit markets were more than offset by a change in how Radian values its derivative holdings.
Provisions to cover future claims increased dramatically as mortgages continue to default at greater rates.
Premiums earned +13%, however -21% Yoy; as Radian set aside $582.7 million for claims provisions during Q1 vs $107 million a year ago.
As of March 31, Radian had $1.7 billion in mortgage insurance loss reserves. Direct claims paid $190 Million vs $95.8 Million, a year ago.
CEO S.A. Ibrahim said the company was still considering "a range of alternatives to strengthen our capital position"
Hattip to the Houston Chronicle
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