Radian Incurs $96MM Charge

Radian Group Inc., Philadelphia, has reported that it will add $96 million to the loss reserves of a financial guaranty subsidiary in anticipation of $111 million in claims from a manufactured housing transaction originated and serviced by Conseco Finance Corp.The action will result in a $62 million ($0.66 per share) after-tax reduction in earnings for the fourth quarter, Radian said. Radian Insurance Inc., a subsidiary of private mortgage insurer Radian Guaranty Inc., provided credit enhancement on three classes in a $1 billion transaction that closed in June 2000, Radian said. "This transaction performed within expectations until the end of 2002," said Radian chief financial officer Bob Quint. "At that time, the bankruptcy of Conseco led to a deterioration in performance." Radian can be found online at http://www.radiangroupinc.com.