UPDATE 3-Radian Group posts narrower-than-expected Q3 loss

* Q3 loss $0.86 vs est loss $1.32

* Cuts '09 claims paid view by 15 pct

* Sees rise in delinquencies in Q4

* Expects increase in paid claims in '10

* Shares up 10 pct

(Adds details from conference call, updates share movement)

BANGALORE, Nov 4 (Reuters) - Mortgage insurer Radian Group Inc (RDN.N) reported a narrower-than-expected quarterly loss as fewer homeowners claimed mortgage insurance, and cut its 2009 claims-paid forecast.

On a post earnings call with analysts, company executives said they expect paid claims to increase in 2010 and were still exploring capital raising opportunities to improve liquidity and write new mortgage insurance business.

Radian expects some future losses from its trust preferred portfolio, it said.

Shares of the company, which rose as much as 19 percent, buoyed by results and bond insurer Ambac Financial Group's (ABK.N) more than $2 billion profit, pared much of their gains to trade up 6 percent in afternoon trade.

The company cut its claims-paid forecast for 2009 to $940 million from its prior view of $1.1 billion and said it expects to have sufficient capital to write mortgage insurance business into 2010.

Chief Executive S.A. Ibrahim said the company was, "actively working on strategies to continue writing new business well into the future."

Total direct claims paid for the the third quarter fell 51 percent to $135.5 million. Provision for losses fell 26 percent to $404.9 million.

Radian said mortgage insurance provision for losses of $376.5 million reflects higher delinquencies. The company expects delinquencies to continue to rise during the fourth quarter

The company had $380 million in cash available at Sept. 30.

Mortgage insurers has suffered huge losses in the recent past from backing subprime bonds and mortgages that saw a surge in defaults as credit and housing markets in the United States worsened, impacting economies globally.