News for 'TGIC' - (DJ Triad Guaranty Swings To 2Q Loss On Fewer Settled Claims)
DOW JONES NEWSWIRES
Mortgage insurer Triad Guaranty Inc. (TGIC) swung to a second-quarter loss as a drop in settled claims offset realized investment gains.
"While the level of! newly reported defaults remained elevated, new defaults declined slightly in the second quarter," said President and Chief Executive Ken Jones. "However, the benefit from the decline in new defaults was offset by lower cures and lower rescissions during the quarter."
Triad, which is winding down its business, 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.
Mortgage insurers sell protection on home loans when a borrower puts down less than the standard 20% down payment. During the housing bubble, mortgage insurers sold too much underpriced coverage and lost billions as the industry made good on the policies.
Triad reported a loss of $4.4 million, or 29 cents a share, compared with a profit of $79.1 million, or $5.24 ! per share, a year earlier. Revenue dropped 43% to $46.5 million.
&n bsp; The company booked realized investment gains of $3 million, compared with losses of $985,000 last year, but earned premiums fell 51%.
Net settled claims fell 23%, reflecting foreclosure moratoriums after reported issues with some loan servicers' foreclosure policies and practices.
Shares closed Thursday at 20 cents and were inactive premarket. The stock trades over the counter since the company voluntarily delisted its shares from Nasdaq because they failed to remain above a minimum $1 value.
-By Melodie Warner, Dow Jones Newswires; 212-416-2283; melodie.warner@dowjones.com
(END) Dow Jones Newswires
August 12, 2011 09:12 ET (13:12 GMT)
Copyright (c) 2011 Dow Jones & Company, Inc.- - 09 12 AM EDT 08-12-11
