Radian Group Inc. (RDN), the second-largest U.S. mortgage insurer, climbed in New York trading as profit advanced and the company said sales are climbing.
Third-quarter net income increased 64 percent to $183.6 million, or $1.37 per share, from $112.2 million, or 84 cents, the Philadelphia-based company said today in a statement.
Policy sales climbed 2 percent to $178.3 million as smaller rival PMI Group Inc. was prohibited from selling new coverage. Mortgage insurance claims fell 33 percent from a year earlier to $329.9 million.
“Historically Radian’s share was concentrated on the 10 largest lenders in the market and we deliberately started the process of diversifying our customer base and through the entire downturn we’ve consistently been adding sales capacity and production capacity and that has been happening year after year,” Chief Executive Officer Sanford Ibrahim said in a conference call with investors earlier today.
Radian rose 20 cents, or 8.5 percent, to $2.55 today. The insurer has fallen about 68 percent this year compared with the 8.9 percent decline in the Russell 2000 Index.
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