Radian posts 2nd-qtr loss after setting up reserve

NEW YORK (Reuters) - U.S. mortgage and bond insurer Radian Group Inc (RDN.N) on Monday reported a net loss of $392.5 million after setting aside $421.8 million to establish a reserve for first-lien mortgage insurance losses.

The loss of $4.91 per share during the quarter that ended June 30 compares with net income of $21.1 million, or 26 cents, during the year-ago period. Quarterly revenue fell to $365.5 million.

Analysts on average had expected Radian to lose $1.58 a share on $340 million of revenue, according to Reuters Estimates.

The company said it remains committed to the mortgage business, despite the steep losses incurred as U.S. housing and property prices tumble. Radian says it can fulfill the capital needs of its mortgage insurance business without raising outside funds, by tapping its financial guaranty business

During the quarter, the company's Radian Asset Assurance Inc unit paid an ordinary dividend of $107.5 million to the parent company, which then shifted $100 million to Radian Guaranty to support the mortgage insurance business.

The Philadelphia company's book value at the end of June stood at $30.54 a share.

(Reporting by Joseph A. Giannone, Editing by Maureen Bavdek)