News
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01/13/2012
Radian Provides Update on Capital Position and New Business Volume
Expects to maintain Radian Guaranty’s risk-to-capital ratio below 25:1 at year end
Exceeds new business goal by writing
Announces date to release fourth quarter and full-year 2011 results of
-
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
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,
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
The conference call will be broadcast live over the Internet at http://www.radian.biz/page?name=Webcasts or at www.radian.com. 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
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
- 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
Source:
Radian Group Inc.
Emily Riley, 215-231-1035
emily.riley@radian.com