Triad Cites $75M Loss in 4Q

Triad Guaranty Inc., Winston-Salem, N.C., has reported a net loss of $75.0 million ($5.05 per share) for the fourth quarter, compared with net income of $8.1 million ($0.54 per share) a year earlier. For the year, Triad lost $77.5 million ($5.22 per share), compared with profits of $65.6 million ($4.40 per share) the year before. "The trends we encountered in the third quarter accelerated in the fourth, especially the rise in defaults in locations where home prices are under pressure," said Mark K. Tonnesen, Triad's president and chief executive. "While the total portfolio default counts increased 38% during the quarter, in California and Florida default counts rose a combined 85%." In response, the company tightened its underwriting guidelines in the fourth quarter, which reduced production. As a result, Mr. Tonnesen said Triad "is actively pursuing a plan to manage and enhance its capital resources. .... Capital management dictated our decision during the quarter to withdraw from Canada and contribute this capital to our U.S. insurance subsidiary."