News for 'TGIC' - (Triad Guaranty posts $60.9 million fourth-quarter loss)
Feb 18, 2012 (Winston-Salem Journal - McClatchy-Tribune Information Services
via COMTEX) -- Triad Guaranty Inc. reported Friday a $60.9 million loss for the
fourth quarter, primarily caused by the need to use more of its! reserves to
cover expenses.
The company, based in Winston-Salem, also faced another wave of financial
institutions sending more unsalvageable residential mortgages through the
foreclosure pipeline.
Triad was one of the first victims of the financial crisis.
It said in June 2008 that it would discontinue writing new mortgage-insurance
business and would conduct "an orderly transition of its business to runoff."
That means that the company's revenue would come from existing policies that
eventually will expire.
Triad expects to exist for another three to five years. Since Triad Guaranty
entered run-off status, at least 180 of its 250 local jobs have been eliminated.
"Stubbornly high unemployment, tight credit and depressed home prices have
prevented any meaningful recovery in the housing market, which continues to
negatively impact our financial results," said Ken Jones, Triad's chief
executive officer and pres! ident.
By comparison, the company had net income of $26.8 milli on in the fourth quarter
of 2010.
At that time, the company benefited from loan-modification efforts at the
federal and lender levels. As loans are modified, it enables Triad to reduce the
money it holds in reserve to cover bad loans, which has a direct effect on its
bottom line.
Triad had an earnings loss of $3.99 a share in the fourth quarter compared with
diluted earnings of $1.76 a share a year ago.
Triad said it spent $113.9 million on settled claims in the fourth quarter,
compared with $132.5 million in the third quarter and $139.4 million a year ago.
It had earned premiums of $39.1 million in the fourth quarter, compared with
$49.7 million in the third quarter and $40.9 million a year ago.
___ (c)2012 Winston-Salem Journal (Winston Salem, N.C.) Visit Winston-Salem
Journal (Winston Salem, N.C.) at www2.journalnow.com Distributed by MCT
Information Services
Richard Craver
Cop! yright (C) 2012, Winston-Salem Journal, N.C.
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