Triad Posts $259M Loss in 2Q

The net loss for Triad Guaranty Inc., Winston-Salem, N.C., ballooned to $359.4 million ($23.91 per share) for the second quarter of 2009, compared with a loss of $55.2 million ($3.68 per share) for the first quarter of 2009 and $198.8 million for the second quarter of 2008 ($13.36 per share). Company president and chief executive Ken Jones said the cure rates on loans in default had a further decline during the second quarter of 2009, plus Triad had higher severity on settled losses. Settled losses increased significantly at the company as more loans from its 2006 and 2007 book of business completed the foreclosure process. Triad increased its loss reserves by $279 million during the quarter. As of June 30, 2009, total insurance in force at Triad, which is in run-off status, fell to $57.5 billion, a decline of just under 5% from March 31, 2009. Net loss and loss adjustment expenses at Triad were $431.4 million for the second quarter of 2009, compared with $101.6 million for the first quarter of 2009 and $292.7 million for the second quarter last year. During the second quarter, Triad recognized benefits of $285.4 million from risk-sharing arrangements, including captive reinsurance programs. This compares with $97.4 million in the first quarter of 2009 and $52.4 million in the second quarter last year.