Triad Guaranty, a provider of private mortgage insurance coverage, has reported a net loss of $150 million for the first quarter of 2008, compared with a net income of $17.3 million for the same quarter of 2007.
Earned premiums for the quarter were $72.1 million, an increase of 13% over the same period in 2007 and down slightly compared to the fourth quarter of 2007.
According to the company, the growth in earned premiums was due to growth in primary insurance in force. Annual persistency on the primary business was 83% at March 31, 2008, compared with 77% at March 31, 2007, which contributed to the growth of the insurance in force.
Total insurance in force reached $67.6 billion at March 31, 2008, compared with $61.5 billion at March 31, 2007. Total new insurance written during the quarter, consisting only of primary business written under the company’s more restrictive underwriting guidelines, totaled $1.9 billion compared with $5.7 billion of primary and $1.9 billion of modified pool written in the first quarter of 2007.
Mark Tonnesen, president and CEO of Triad Guaranty, said: The negative trends we encountered during the second half of 2007 continued to impact us during the first quarter of 2008. Housing prices remain under pressure across the country and the distressed markets of Florida, California, Arizona and Nevada continue to be particularly affected.