Triad Guaranty posts 37.7 million loss
May 12, 2012 (Menafn - Winston-Salem Journal - McClatchy-Tribune Information Services via COMTEX) --Decreased pressure on Triad Guaranty Inc.'s reserves enabled the company to post a lower -- but still major -- loss in the first quarter.
The mortgage-insurance provider, based in Winston-Salem, reported Friday that it had a 37.7 million loss in the quarter, compared with a 60.9 million loss in the fourth quarter and a 4.9 million loss a year ago.
The company, however, experienced another wave of financial institutions sending more unsalvageable residential mortgages through the foreclosure pipeline.
Triad, one of the first victims of the financial crisis, said in June 2008 that it would discontinue writing new mortgage-insurance policies and would conduct "an orderly transition of its business to runoff." That means that the company's revenue would come from existing policies that eventually will expire.
Triad expects to exist for three to five more years. Since Triad Guaranty entered runoff status, at least 200 of its 250 local jobs have been eliminated. Ken Jones, the company's chief executive and president, said the company has 50 employees.
The company had a per-share earnings loss of 2.47 in the first quarter, compared with a loss of 3.99 in the fourth quarter and a loss of 32 cents a year ago.
Jones said Triad benefited from the seasonal pattern of fewer initial default notices as more customers made payments after receiving income-tax refunds and year-end bonuses.
Triad spent 99.4 million on settled claims in the first quarter, compared with 118.3 million in the fourth quarter and 111.9 million a year ago.
It had earned premiums of 34.5 million in the first quarter, compared with 39.1 million in the fourth quarter and 37.1 million a year ago.
The company said the earned premium decline was caused by borrowers "finding it difficult to sell or refinance their homes."
Jones said the company's deficit in assets was at 737.8 million on March 31.
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