Wednesday, Radian Group Inc. (RDN), a provider of credit-related insurance coverage and financial services, reported a loss for the third-quarter compared to a profit for the prior year quarter, reflecting a significant provision for mortgage insurance losses.
Radian posted net loss of $70.5 million or $0.86 per share, compared to net income of $36.7 million or $0.46 per share in the same quarter last year.
On average, seven analysts polled by Thomson Reuters expected the company to report a loss of $1.32 per share for the quarter. Analysts' estimates typically exclude special items.
The company noted that the mortgage insurance provision for losses of $376.5 million for the quarter reflects higher delinquency counts and the continued aging of delinquencies.
Total revenues for the quarter were $331.6 million, down from $418.7 million in the comparable quarter last year. Analysts expected the company to report revenues of $257.60 million for the quarter.
Net loss posted for nine months was $56.0 million or $0.69 per share compared with a loss of $160.2 million or $2.01 per share for the corresponding period last year. Total revenues for the nine months were $920.5million versus $1.75 billion for the previous year period.
For the full-year 2009, Radian has reduced its claims-paid expectations from the $1.1 billion range, to a current estimate of $940 million, which includes $87 million of second-lien termination payments.
As of September 30, 2009, Radian Asset Assurance Inc., the company's principal financial guaranty subsidiary, had approximately $935 million in statutory surplus with an additional $1.6 billion in total claims-paying resources.
RDN is currently being traded at $6.40 up $0.48 or 8.11% on a volume of 7.534 million shares on the NYSE.
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