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Triad Guaranty Inc. Reports $75.0 Million Loss for Fourth Quarter Reflecting Further Deterioration in the Housing and Mortgage Markets
WINSTON-SALEM, N.C., February 13, 2008 -- Triad Guaranty Inc. (NASDAQ GS: TGIC) today reported a net loss for the quarter ended December 31, 2007 of $75.0 million compared with net income of $8.1 million for the same quarter in 2006. The diluted loss per share was $5.05 for the fourth quarter of 2007 compared to diluted earnings per share of $0.54 for the fourth quarter of 2006. Realized investment losses, net of taxes, had no impact on diluted per share amounts for the fourth quarter of 2007 or 2006.
The net loss for the year ended December 31, 2007 was $77.5 million compared to net income of $65.6 million in 2006. The diluted loss per share was $5.22 for the year ended December 31, 2007 compared to diluted earnings per share of $4.40 in 2006. Realized investment losses, net of taxes, increased the net loss per share by $0.13 in 2007. Realized investment gains, net of taxes, increased earnings per share by $0.07 in 2006.
Mark K. Tonnesen, President and Chief Executive Officer, said, 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. While the total portfolio default counts increased 38% during the quarter, in California and Florida, default counts rose a combined 85%. The rapid and significant deterioration in the housing markets and its effect on our portfolio performance has prompted us to implement various measures reflected in our underwriting standards, capital management, loss mitigation and expense management.
Mr. Tonnesen continued, During the fourth quarter, we took a leadership role in our industry by tightening underwriting guidelines. Our new guidelines, which address loan to value limitations, credit scores and loan documentation, and incorporate volume limitations in distressed markets, led to our reduced fourth quarter production and are expected to further limit production in 2008. The Company has developed and is actively pursuing a plan to manage and enhance its capital resources. Although, at this time, we can give no assurance that we will be able to successfully implement our plan, we realize these efforts are critically important to the future of Triad Guaranty. Thus, enhancing capital resources is a top priority. Capital management dictated our
The following information was filed by Triad Guaranty Inc (TGICQ) on Thursday, February 14, 2008 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-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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