News for 'TGIC' - (DJ Triad Guaranty 1Q Loss Narrows Sharply, Calls Deficit Substantial)
DOW JONES NEWSWIRES
Triad Guaranty Inc.'s (TGIC) first-quarter loss narrowed sharply as the mortgage insurer reported lower reserves to cover potential losses and lower expenses.
&n! bsp;The company has been winding down its business and the loss is the first after three straight profitable quarters that were boosted by large decreases in reserves. President and Chief Executive Ken Jones said despite a decline in new defaults, the company didn't benefit as much from reserve declines in the latest quarter.
Net settled claims declined 26%, which Jones attributed mostly to loan services' issues related to foreclosures, including in some cases, foreclosure moratoriums.
"Our deficit in assets remains substantial" and was $593.7 million at March 31, Jones said. "We continue to believe that, absent significant positive changes in the economy and the residential real estate market, our existing assets and future premiums may not be sufficient to meet our current and future policyholder obligations," he said.
Triad reported a loss of $4.9 million, or 32 cents a share, compared with a year-earlier loss of $27.8 million! , or $1.84 a share. Revenue decreased 19% to $45.2 million.
& nbsp;Triad stopped writing mortgage-insurance policies in July 2008 after it incurred steep losses because of defaults and delinquencies on home loans. It sold its propriety mortgage insurance software and most of its supporting hardware to Essent Guaranty Inc. in late 2009.
Shares closed Thursday at 30 cents and were inactive premarket.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481; Tess.Stynes@dowjones.com
(END) Dow Jones Newswires
May 13, 2011 08:43 ET (12:43 GMT)
Copyright (c) 2011 Dow Jones & Company, Inc.- - 08 43 AM EDT 05-13-11
