* Net loss $187.5 mln vs $169.2 mln a year earlier
* 1st-qtr new mortgage insurance written $10.92 bln
* Provision for mortgage losses down
May 1 Mortgage insurer Radian Group Inc
quarterly loss widened due to higher losses from changes in the
fair value of derivatives and other financial instruments.
Losses from derivative instruments almost doubled to $173.3
million for the first quarter from $90.6 million a year earlier.
Net loss widened to $187.5 million, or $1.30 per share, in
the first quarter, from $169.2 million, or $1.28 per share, a
The company has posted a profit only once in the last six
"As our strong new business volume continues, our
delinquency inventory decreases and the mix of profitable new
business begins to outweigh our legacy mortgage insurance book,
we are positioning Radian for a return to operating
profitability." Chief Executive S.A. Ibrahim said in a
Radian Guaranty's risk-to-capital-ratio was 18.6-to-1 as of
March 31. Most U.S. states allow a maximum ratio of 25-to-1,
after which the insurer must seek waivers in individual states
to continue writing insurance.
In March Radian raised about $700 million through a
combination of stock offering and convertible senior notes that
reduced concerns about its ability to pay mortgage insurance
Radian set aside less money to cover mortgage insurance
losses in the first quarter. Mortgage insurance provision for
losses fell to $132.0 million from $234.7 million a year
New mortgage insurance written for the quarter rose to $10.9
billion, from $6.5 billion a year earlier, while total mortgage
insurance claims paid rose more than 40 percent to $309.9
Radian shares, which traded at more than $67 before the
housing bubble burst in 2007, closed at $11.95 on the New York
Stock Exchange on Tuesday.