TAKING THE PULSE: Mortgage insurers are expecting more losses in the fourth quarter as they continue to struggle with soaring claims and declining new business, with housing sales at a seven-year low. But at least two, PMI Group Inc. (PMI) and Radian Group Inc. (RDN), recently said 2008 claims would not be as large as previously expected. MGIC Investment Corp. (MTG) started off the reports Tuesday by disclosing a surge in delinquent loans. It also doesn't expect a return to profitability this year but said it has adequate resources to meet its claim obligations.

Mortgage insurers, which cover potential lender losses on loans to borrowers who can't come up with a 20% down payment, have seen claims skyrocket in the past year as the credit crunch made it difficult for borrowers to refinance and for lenders to resell foreclosed properties at a profit. Several companies have seen their credit ratings lowered on concerns that rising unemployment and slumping home prices will lead to more defaults. Downgrades raise the cost of writing new business and sometimes limit firms' ability to do so.

 
   COMPANIES TO WATCH: 
 
   Old Republic International Corp. (ORI) - reports Jan. 22

Wall Street Expectations: Analysts polled by Thomson Reuters anticipate a loss of 25 cents a share. A year earlier, Old Republic reported net income of 9 cents a share on revenue of $1 billion.

Key Issues: Losses in the company's mortgage- and title-insurance operations continue to pressure the company, whose biggest business is selling property and casualty coverage. While cutting various ratings last month, Standard & Poor's Ratings Services noted the strength of the holding company and its P&C operations and their ability to support the mortgage-insurance unit.

 
   PMI Group - reporting date to be announced

Wall Street Expectations: Analysts are looking for a loss of $1.64 a share on revenue of $241.4 million. A year earlier, the largest U.S. mortgage insurer reported a net loss of $12.51 a share on revenue of $281 million.

Key Issues: PMI twice cut its 2008 U.S. claims-paid estimate at its mortgage-insurance segment twice during the quarter, saying they hadn't climbed as high as feared. Still, the company has been shedding international operations to raise capital amid U.S. losses and in September slashed its dividend 80%.

 
   Radian Group - reporting date to be announced

Wall Street Expectations: The company is projected to post a loss of $1.21 a share on revenue of $324.3 million. The prior-year net loss was $7.74 a share on negative revenue of $130.3 million amid $298 million in write-downs.

Key Issues: Radian predicted in October that fourth-quarter claims would be lower than previously expected, coming in at about the third-quarter level of $277 million. The company also has taken various capital-preservation steps, including halting its participation in capital-intensive lines of business such as providing credit protection.

 
   Genworth Financial Inc. (GNW) - reporting date to be announced

Wall Street Expectations: Analysts forecast operating earnings of 40 cents a share on revenue of $2.9 billion. A year earlier, Genworth reported net income of 40 cents a share on revenue of $2.78 billion.

Key Issues: Genworth, whose biggest operations are in life insurance and wealth management, said last month that it would cut 1,000 jobs to reduce 2009 expenses by some $150 million. Like other life insurers, it is seeking savings-and-loan status to qualify for the Treasury Department's capital purchase program. Meanwhile, Genworth's mortgage-insurance business has long been pressuring results.

(The Thomson Reuters estimate and year-ago net may not be comparable due to one-time items and other adjustments.)

-By Kathy Shwiff, Dow Jones Newswires; 201-938-5975; kathy.shwiff@dowjones.com

(Lavonne Kuykendall contributed to this report.)

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