November 2, 2010 / 11:44 AM / 7 years ago

CORRECTED - CORRECTED-UPDATE 1-Lower delinquencies lift Radian to Q3 profit

(Corrects headline to show company posted a Q3 profit, not a surprise profit)

* Q3 EPS $0.84 vs loss/shr $0.86 yr ago

* Provisions for mortgage loss down 8 pct

Nov 2 (Reuters) - Mortgage insurer Radian Group (RDN.N) swung to a quarterly profit, after four straight quarters of losses, helped by lower delinquencies and a gain from the change in the market value of derivatives.

Philadelphia, Pennsylvania-based Radian's results come in sharp contrast to those of rivals MGIC Investment (MTG.N) and PMI Group PMI.N, which reported third-quarter losses on high paid claims.

Net income for the July-September quarter was $112.2 million, or 84 cents a share, compared with net loss of $70.5 million, or 86 cents a share a year earlier.

The results include a gain of $1.12 per share from the change in fair value of derivatives.

Analysts had expected the company to post a loss of 66 cents a share, according to Thomson Reuters I/B/E/S.

"The signs of credit trend stabilization continued for our businesses, including the third straight quarter of declining mortgage insurance delinquencies, despite the challenge of an uncertain economy," Chief Executive S.A. Ibrahim said in a statement.

The number of primary and pool delinquent loans decreased by 5.8 percent and 2.0 percent, sequentially, in the quarter.

Provision for mortgage insurance loss fell to $347.8 million from $376.5 million.

Shares of the company, with a market value of about $1billion, closed at $7.45 on Monday on the New York Stock Exchange.

They have fallen nearly 60 percent in value since touching a year-high high in April. (Reporting by Sweta Singh in Bangalore; Editing by Unnikrishnan Nair)

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