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

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