Radian Says Risk to Meet Standards for Rest of Year
Radian Group Inc. (RDN), the mortgage insurer whose stock advanced 87 percent this year, said it now expects to meet regulators’ capital standards for the rest of 2012 after recording investment gains.
The risk-to-capital ratio will probably be below the 25-to- 1 ceiling set by some state watchdogs for the remainder of the year, the Philadelphia-based company said today in a statement. The insurer said in August that it may fail to meet the standard in the second half of this year.
Chief Executive Officer S.A. Ibrahim has purchased reinsurance and benefited from investment gains as he seeks to stay within state regulators’ capital rules. Rivals including PMI Group Inc. and Triad Guaranty Inc. were forced to stop selling new policies after falling short of the standards as losses backing home loans drained capital.
Meeting the requirement is a result of “proactive capital management initiatives,” the company said in its statement.
The insurer advanced 5 cents to $4.42 in extended trading at 5 p.m. in New York. Mortgage insurers cover losses when homeowners default and foreclosures fail to recoup costs.
To contact the reporter on this story: Zachary Tracer in New York at email@example.com
To contact the editor responsible for this story: Dan Kraut at firstname.lastname@example.org