Radian Group and Genworth Financial Look to Make Headway in Struggling Mortgage Insurance Industry
February 27 2012 - 8:20AM
Marketwired
Mortgage Insurers continue to struggle to recoup their losses after
the housing bubble burst and foreclosures soared, leaving them with
large claims on unpaid home loans. Reuters reports that insurers
have been attempting to meet capital adequacy benchmarks and have
sought waivers to continue writing business in many states in the
United States. The Paragon Report examines investing opportunities
in the Property & Casualty Insurance Industry and provides
equity research on Radian Group Inc. (NYSE: RDN) and Genworth
Financial Inc. (NYSE: GNW). Access to the full company reports can
be found at:
www.paragonreport.com/RDN
www.paragonreport.com/GNW
Data through January 2012, released by S&P Indices and
Experian for the S&P/Experian Consumer Credit Default Indices,
showed that default rates on first mortgages declined for the first
time in five months in January, helping to contribute to an overall
decline in U.S. consumer-credit defaults. In January, overall
credit defaults declined to 2.16% from 2.24% in December. The
first-mortgage defaults rate dropped to 2.08% from 2.19% a month
earlier. Since first-mortgage loans are the largest of consumer
loans, their default rates typically drive the combined rate, David
M. Blitzer, managing director and chairman of the Index Committee
for S&P Indices explains. Defaults on second mortgages eased to
1.3% from 1.33% and bank credit cards were down at 4.57% from
4.6%.
The Paragon Report provides investors with an excellent first
step in their due diligence by providing daily trading ideas, and
consolidating the public information available on them. For more
investment research on the Property & Casualty Insurance
industry register with us free at www.paragonreport.com and get
exclusive access to our numerous stock reports and industry
newsletters.
Last week Radian Inc. posted a narrower-than-expected quarterly
loss on lower paid claims. However the mortgage insurer's
risk-to-capital ratio may rise more than the permissible 25:1 after
the first quarter if no additional capital is contributed, Chief
Financial Officer Robert Quint said. If Radian Guaranty's
risk-to-capital ratio were to exceed 25:1, Radian will infuse $50
million of additional capital into its unit Radian Mortgage
Assurance Inc (RMAI), the company said.
Genworth Financial, Inc., a financial security company, provides
insurance, wealth management, investment, and financial solutions
in the United States and internationally.
The Paragon Report has not been compensated by any of the
above-mentioned publicly traded companies. Paragon Report is
compensated by other third party organizations for advertising
services. We act as an independent research portal and are aware
that all investment entails inherent risks. Please view the full
disclaimer at http://www.paragonreport.com/disclaimer
Add to Digg Bookmark with del.icio.us Add to Newsvine
Radian (NYSE:RDN)
Historical Stock Chart
From Jul 2024 to Aug 2024
Radian (NYSE:RDN)
Historical Stock Chart
From Aug 2023 to Aug 2024