Radian Group Inc., Philadelphia, has reported a net loss of $618 million ($7.74 per share) for the fourth quarter, compared with net income of $158.4 million ($1.96 per share) a year earlier. For the full year, Radian lost $1.2 billion ($14.92 per share), compared with net income of $582.2 million ($7.08 per share) in 2006. At the end of the year, Radian had $1.3 billion in mortgage insurance loss reserves. S.A. Ibrahim, chief executive of Radian, noted that among the challenges the company faced during the year was the collapse of its proposed merger with MGIC. "In considering the book value of our company, we think it is important to take into consideration the significant embedded value within our financial guaranty business, as well as our ownership stake in Sherman," he said. "Our claims-paying resources in both business segments are strong, and we stand to benefit from a stable and well-capitalized financial guaranty business."

Subscribe Now

Authoritative analysis and perspective for every segment of the mortgage industry

30-Day Free Trial

Authoritative analysis and perspective for every segment of the mortgage industry