Triad, in Run-off, Sees $625 Million Deficit in Assets

Triad Guaranty Inc., Winston-Salem, N.C., now has a deficit in assets of $625 million, as the company lost $102 million for the third quarter 2009. This is an improvement over a loss of $359 million in the second quarter and a loss of $160 million in the third quarter last year. President and chief executive Ken Jones said first-time defaults declined slightly from the second quarter, but new defaults still remain at a high number. Furthermore, the cure rates on existing defaults are at a historic low "and have shown little sign of improving." Triad currently is in run-off. Mr. Jones said to meet all of its existing obligations the company would need to earn $625 million during the run-off. At the end of last year, the deficit in assets was just $137 million.