KBR Cuts Estimates on Triad

Keefe, Bruyette & Woods has cut its earnings estimates on mortgage insurer Triad Guaranty, citing the MI's loss of its largest customer to bankruptcy -- American Home Mortgage of Melville, N.Y.In a recent filing with the Securities and Exchange Commission, Triad said American Home was its largest customer in the first half, accounting for almost 34% of new insurance that it wrote. The nondepository lender closed its doors in August. About a week ago, Triad announced that it had borrowed $80 million under a revolving line of credit. After the company's stock swooned, company president Mark K. Tonnesen issued a statement saying, "The decision to draw down these funds was made by the board of directors at a regularly scheduled board meeting and not in response to any liquidity issues."