Radian Reports Big 3Q Loss

Radian Group Inc., a Philadelphia-based mortgage insurer, has reported a net loss of $704 million ($8.78 per share) for the third quarter, compared with net profits of $112 million ($1.36 per share) a year earlier.Among the factors contributing to the loss were an impairment for C-BASS, which accounted for $3.78 per share; marking to market net-interest-margin securities on its balance sheet, $2.96 per share; marking to market its financial guaranty business, $2.06 per share; a second-lien premium deficiency, $1.26 per share; and a reserve for a collateralized debt obligation, $0.41 per share. These were partially offset by a gain on part of its stake in Sherman, which resulted in a $1.47-per-share benefit and an "all-other" benefit of $0.22 per share. S.A. Ibrahim, chief executive of Radian, said that while the poor results were not unexpected, the company has a "book value of $42.86 per share, and we are well positioned with our strong capital and liquidity position to weather the challenging credit cycle." Radian can be found online at http://www.radian.biz.