Radian Releases Delinquency Data for August
New mortgage insurance business continues to climb to $3.75 billion
Company realizes $120 million in investment gains to support risk-to-capital position
PHILADELPHIA--(BUSINESS WIRE)-- Radian Guaranty Inc., the mortgage insurance subsidiary of Radian Group Inc., today released data for primary mortgage insurance delinquencies for August 2012. These details may also be found on Radians website at http://www.radian.biz/page?name=NewsReleases. Previously released historical data is also available on the website at http://www.radian.biz/page?name=FinancialReportsMortgageInsurance.
The information below regarding new delinquencies and cures is reported to Radian from loan servicers. The accuracy of these reports may be affected by several factors, including the date on which the report is generated and by the timing of servicing transfers.
|Primary New Insurance Written (NIW) ($ in billions)||$3.75|
|Beginning Primary Delinquent Inventory|
(# of loans)
|Plus: New Delinquencies||6,042|
(including those charged to a deductible or captive)
|Less: Rescissions and Denials||(727)|
|Ending Primary Delinquent Inventory|
(# of loans)
Statutory Capital Position
In July and August, the company completed two initiatives that will positively impact Radian Guarantys statutory capital position in 2012.
- The company realized approximately $120 million in after-tax gains on securities in its investment portfolio.
- As previously announced, Radian Guaranty entered into a quota share reinsurance agreement in April with a third-party reinsurance provider under which it agreed to cede 20 percent of new insurance written beginning with the business written in the fourth quarter of 2011. In August, Radian and the reinsurer mutually agreed to increase the amount of mortgage insurance risk ceded under the agreement from $1.25 billion to approximately $1.6 billion.
Radian Group Inc. (NYSE: RDN), headquartered in Philadelphia, provides private mortgage insurance and related risk mitigation products and services to mortgage lenders nationwide through its principal operating subsidiary, Radian Guaranty Inc. These services help promote and preserve homeownership opportunities for homebuyers, while protecting lenders from default-related losses on residential first mortgages and facilitating the sale of low-downpayment mortgages in the secondary market. Additional information may be found at www.radian.biz.
Some of the statements in this press release may constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. These statements are based on our current expectations, estimates and projections. Words such as "will," "expects," "believes" and similar expressions are used to identify these forward-looking statements. These statements are only predictions and as such are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Forward-looking statements are based upon assumptions as to future events or our future financial performance that may not prove to be accurate. Actual outcomes and results may differ materially from what is expressed or forecast in these forward-looking statements. As a result, these statements speak only as of the date they were made, and we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. For more information regarding these risks and uncertainties as well as certain additional risks that we face, you should refer to the Risk Factors detailed in Item 1A of Part I of our Annual Report on Form 10-K for the year ended December 31, 2011, Item 1A of Part II of our Quarterly Report on Form 10-Q for the quarter ended June 30, 2012, and subsequent reports and registration statements filed from time to time with the Securities and Exchange Commission.
Radian Group Inc.
Emily Riley, 215-231-1035
Source: Radian Group Inc.Copyright Business Wire 2012