Radian Provides Update on Capital Position and New Business Volume
13 Janvier 2012 - 2:30PM
Business Wire
Radian Group Inc. today provided an update on the capital
position and new business volume for Radian Guaranty Inc., its
primary mortgage insurance (MI) subsidiary:
- As of December 31, 2011, the company
expects to maintain a risk-to-capital ratio for Radian Guaranty
below 25:1, with approximately $500 million of holding company
liquidity remaining.
- In the fourth quarter of 2011, Radian
Guaranty led the mortgage insurance industry in new business volume
by writing $6.5 billion of new insurance written.
“Our top priority at Radian is to write as much new,
high-quality mortgage insurance business as possible,” stated
Radian’s Chief Executive Officer S.A. Ibrahim. “We grew new
business significantly in the fourth quarter, and earned the number
one market share position.”
Ibrahim added, “We continue to focus significant effort on
strengthening our statutory capital position while conserving our
holding company resources.”
As previously disclosed, in order to maximize the company’s
financial flexibility, Radian has requested waivers or similar
relief from the 16 states that impose a risk-based capital
requirement. Of these 16 states, New York does not possess the
regulatory authority to grant waivers and Kansas has declined to
grant waivers to mortgage insurers, including Radian Guaranty, at
this time. Of the remaining 14 states, Radian has received waivers
or similar relief from Arizona, Illinois, Kentucky and Wisconsin,
and has applications pending in the 10 remaining states. Radian has
also applied to Fannie Mae and Freddie Mac for approval of a
separate mortgage insurance subsidiary, Radian Mortgage Assurance
Inc., as an eligible mortgage insurer, in order to write business
in those states where a waiver or other relief is not available or
approved.
Announcement of Fourth Quarter and Full-year 2011 Results
The company will provide details on a series of capital
management initiatives that strengthen Radian Guaranty’s
risk-to-capital position and report its year-end financial results
on Thursday, February 23, 2012. Radian will webcast the conference
call being held at 10:00 a.m. Eastern time to discuss the company’s
results, which will be announced prior to the market open on the
same day.
The conference call will be broadcast live over the Internet at
http://www.radian.biz/page?name=Webcasts or at www.radian.biz. The
call may also be accessed by dialing (800) 230-1059 inside the
U.S., or (612) 234-9959 for international callers, using passcode
232387 or by referencing Radian.
A replay of the webcast will be available on the Radian website
approximately two hours after the live broadcast ends for a period
of one year. A replay of the conference call will be available
approximately two and a half hours after the call ends for a period
of two weeks, using the following dial-in numbers and passcode:
(800) 475-6701 inside the U.S., or (320) 365-3844 for international
callers, passcode 232387.
In addition to the information provided in the company's
earnings news release, other statistical and financial information,
which is expected to be referred to during the conference call,
will be available on Radian's website under Investors >Quarterly
Results, or by clicking on
http://www.radian.biz/page?name=QuarterlyResults.
About Radian
Radian Group Inc. (NYSE: RDN), headquartered in Philadelphia,
provides private mortgage insurance and related risk mitigation
products and services to mortgage lenders nationwide through its
principal operating subsidiary, Radian Guaranty Inc. These services
help promote and preserve homeownership opportunities for
homebuyers, while protecting lenders from default-related losses on
residential first mortgages and facilitating the sale of
low-downpayment mortgages in the secondary market. Additional
information may be found at www.radian.biz.
Forward-looking Statements
All statements in this press release that address events,
developments or results that we expect or anticipate may occur in
the future are “forward-looking statements” within the meaning of
Section 27A of the Securities Act of 1933, Section 21E of the
Securities Exchange Act of 1934 and the United States (“U.S.”)
Private Securities Litigation Reform Act of 1995. In most cases,
forward-looking statements may be identified by words such as
“anticipate,” “may,” “will,” “could,” “should,” “would,” “expect,”
“intend,” “plan,” “goal,” “contemplate,” “believe,” “estimate,”
“predict,” “project,” “potential,” “continue,” or the negative or
other variations on these words and other similar expressions.
These statements, which may include, without limitation,
projections regarding our future performance and financial
condition, are made on the basis of management’s current views and
assumptions with respect to future events. Any forward-looking
statement is not a guarantee of future performance and actual
results could differ materially from those contained in the
forward-looking information. The forward-looking statements, as
well as our prospects as a whole, are subject to risks and
uncertainties, including the following:
- changes in general economic and
political conditions, including high unemployment and continued
weakness in the U.S. housing and mortgage credit markets, the U.S.
economy reentering a recessionary period, a lack of meaningful
liquidity in the capital markets or in the credit markets, changes
or volatility in interest rates or consumer confidence, and changes
in credit spreads, each of which may be accelerated or intensified
by, among other things, further actual or threatened downgrades of
U.S. credit ratings;
- our ability to successfully execute
upon our capital plan, including our capital management
initiatives, for our mortgage insurance business (which depends, in
part, on the performance of our financial guaranty portfolio), and
if necessary, to obtain additional capital to support our mortgage
insurance business and the long-term liquidity needs of our holding
company;
- our ability to maintain an adequate
risk-to-capital position and surplus requirements in our mortgage
insurance business in light of ongoing losses in this business and
potential further deterioration in our financial guaranty
portfolio, which, in the absence of new capital, could depend on
our ability to execute strategies for which regulatory and other
approvals or waivers are required and may not be obtained;
- the application of existing federal or
state consumer, lending, insurance, tax, securities and other
applicable laws and regulations, or changes in these laws and
regulations or the way they are applied or interpreted, including,
without limitation, legislative and regulatory changes limiting or
restricting our use of (or increasing requirements for) additional
capital and the products we may offer and requirements,
restrictions or limitations resulting from audits or examinations
conducted by state and federal regulators; and
- the possibility that we may fail to
estimate accurately the likelihood, magnitude and timing of losses
in connection with establishing loss reserves for our mortgage
insurance or financial guaranty businesses or premium deficiencies
for our mortgage insurance business, or to estimate accurately the
fair value amounts of derivative instruments in determining gains
and losses on these contracts.
For more information regarding these risks and uncertainties as
well as certain additional risks that we face, you should refer to
the Risk Factors detailed in Item 1A of Part I of our Annual Report
on Form 10-K for the year ended December 31, 2010 and in Item 1A of
Part II of our Quarterly Report on Form 10-Q for the quarter ended
September 30, 2011, and subsequent reports and registration
statements filed from time to time with the Securities and Exchange
Commission.
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