Triad Guaranty Inc. Reports Second Quarter Results
WINSTON-SALEM, N.C., August 12, 2011 -- Triad Guaranty Inc. (OTCBB: TGIC) today reported a net loss for the quarter ended June 30, 2011 of $4.4 million compared to a net loss of $4.9 million for the first quarter of 2011 and net income of $79.1 million for the second quarter of 2010. The 2011 second quarter diluted loss per share was $0.29 compared to diluted loss per share of $0.32 for the 2011 first quarter and diluted income per share of $5.24 for the second quarter of 2010.
The net loss for the six months ended June 30, 2011 was $9.3 million compared to net income of $51.3 million for the six months ended June 30, 2010. The diluted loss per share was $0.61 for the six months ended June 30, 2011 compared to diluted income per share of $3.40 for the six months ended June 30, 2010.
Ken Jones, President and CEO, said, “We continue to see the impact of the troubled economy on employment and housing. Unemployment remained elevated and housing prices were either stagnant or dropped even further during the second quarter. These economic trends continued to impact our financial results during the second quarter. While total risk in default decreased again in the second quarter, the rate of decline slowed from that experienced for the past several quarters. While the level of newly reported defaults remained elevated, new defaults declined slightly in the second quarter. However, the benefit from the decline in new defaults was offset by lower cures and lower rescissions during the quarter. The average age of our default inventory continued to increase as the volume of settled claims for the second quarter remained low when compared to settled claims during 2010. We believe the drop in net settled claims is primarily related to widely reported loan servicers’ issues surrounding foreclosure policies and practices, including foreclosure moratoriums. The second quarter of 2010 included the positive impact of a significant change in reserve factors coupled with an additional accrual of earned premiums related to modified pool structures. These were the primary drivers of the increase in reported income for that quarter and make comparisons to the 2011 second quarter difficult.”
The following information was filed by Triad Guaranty Inc (TGICQ) on Friday, August 12, 2011 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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Ticker: TGICQ CIK: 911631 Form Type:10-Q Quarterly Report Accession Number: 0000911631-11-000032 Submitted to the SEC: Thu Nov 10 2011 5:05:45 PM EST Accepted by the SEC: Thu Nov 10 2011 Period: Friday, September 30, 2011 Industry: Surety Insurance