UPDATE 2-Radian names new head of mortgage insurance unit
(Adds detail, analyst comment, updates stock price)
HAMILTON, Bermuda, July 7 (Reuters) - Mortgage and bond insurer Radian Group (RDN.N) on Monday named Teresa Bryce as president of its mortgage insurance unit, replacing David Applegate, who resigned. Bryce will be expected to eventually win back an "AA"-level rating for Radian Guaranty, the company said. Earlier this year, Standard & Poor's and Moody's Investors Service cut Radian Guaranty's ratings.
Bryce, currently the company's general counsel and chief risk officer, will report directly to Chief Executive S.A. Ibrahim, according to a statement.
Applegate will continue to provide consulting services to Radian Guaranty, the company said.
Trading in Radian was halted on the New York Stock Exchange, but on regional exchanges the shares rose 40 percent to $1.43. The stock has fallen 97 percent over the past year.
One research firm questioned whether Radian will be able to navigate its way through its current troubles. "We believe that Radian Guaranty is likely to be the next company to trip the regulatory risk-to-capital ratio ... which we feel would send the company into run-off," said a note issued by CreditSights late on Sunday.
An insurer in run-off writes no new policies but maintains a skeleton staff to honor claims on policies already agreed.
CreditSights said it also has, although to a lesser degree than for Radian, concerns about regulatory capital levels at rivals MGIC Investment Corp (MTG.N) and PMI Group (PMI.N).
Philadelphia-based Radian sells policies to cover partial payment of mortgages in the event of a default. Like many in its sector, the company has been battered as borrowers miss more payments and investors stop buying a wide variety of debt perceived to carry too much risk.
Last Thursday the company said its liquidity and claims-paying resources remained strong. [ID:WNAB0040] (Reporting by Lilla Zuill; editing by John Wallace and Steve Orlofsky) (lilla.zuill@reuters.com;+1 646 223 6281))
