WINSTON-SALEM, N.C., April 26 /PRNewswire-FirstCall/ -- Triad Guaranty
Inc. (Nasdaq: TGIC) today reported net income for the quarter ended March
31, 2007 of $17.3 million compared with $18.6 million for the same quarter
a year ago, a decrease of 7%. Diluted earnings per share were $1.16 for the
first quarter of 2007 compared with $1.25 for the first quarter of 2006, a
decrease of 7%. Realized investment gains, net of taxes, increased diluted
earnings per share by $0.03 in the first quarter of 2007 and $0.04 the
first quarter of 2006.
Mark K. Tonnesen, President and Chief Executive Officer, said, "The
highlight for the quarter was our continued success in new production which
contributed to the 34% top line growth in earned premiums. Strong Primary
production during the quarter coupled with improved persistency enabled our
total insurance in force to grow 28% compared to a year ago. Changes in the
market place -- including tax deductibility for mortgage insurance,
problems evidenced in sub prime, widening credit spreads, a flat yield
curve, and a concurrent movement toward more traditional underwriting and
products -- have favored our business. We view this as an opportunity for
Triad."
Mr. Tonnesen continued, "That said, it remains difficult navigating
through these unsettled times in the housing and mortgage markets. Most
challenging in the short term is weakness in the housing market. Home
prices are generally flat to declining and housing inventories are growing
steadily, placing continued pressure on the amount of paid claims and our
ability to effectively mitigate potential losses. The result for the first
quarter was continued building of reserves and a quarterly loss ratio of
50.9%. Our strategy to limit our exposure to the sub prime market has
proven wise. However, we have changed our portfolio profile over time to
include more Alt A product and recently more potential negative
amortization mortgages. These products continue to perform as expected but
require our ongoing diligent review as they season further."
Total insurance in force reached $61.5 billion at March 31, 2007,
compared with $48.2 billion a year ago. Insurance in force included Primary
of $38.0 billion and Modified Pool of $23.5 billion at March 31, 2007,
compared with $29.9 billion and $18.3 billion, respectively, a year
earlier. New insurance written during the first quarter of 2007 totaled
$7.6 billion compared with $6.5 billion in the first quarter of 2006.
Primary new insurance written for the first quarter of 2007 was $5.7
billion, up significantly from $1.9 billion in the first quarter of 2006.
New insurance written attributable to Modified Pool transactions, which can
vary substantially from quarter to quarter, totaled $1.9 billion in the
first quarter of 2007, down from $4.6 billion for the same period of 2006.
In the supplemental data accompanying this release, we have included
expanded information regarding potential negative amortization mortgages,
which have grown to be a meaningful portion of our new insurance written
and insurance in force.
Earned premiums for the first quarter of 2007 were $63.9 million, an
increase of $16.1 million over the same period a year ago. The increase in
earned premiums was due almost equally to the growth in both Primary and
Modified Pool insurance in force over the past year. Persistency was 77.0%
at March 31, 2007 compared with 71.1% at March 31, 2006.
Incurred losses for the first quarter were $32.6 million, down from
$41.3 million in the fourth quarter of 2006 and significantly up from $16.4
million in the first quarter of 2006. Total paid claims for the first
quarter of 2007 were $17.7 million, up $1.1 million from the fourth quarter
of 2006 and up $3.3 million from $14.4 million in the first quarter of
2006. Primary severity on paid claims was $31,300 in the first quarter of
2007, up 11% from $28,100 experienced in the fourth quarter of 2006 and up
from $26,300 in the first quarter of 2006. The Primary delinquency rate
declined to 2.35% at March 31, 2007 compared with 2.47% at December 31,
2006 and 2.46% at March 31, 2006. The Modified Pool delinquency rate
increased to 2.93% at March 31, 2007, compared with 2.67% and 2.02% at
December 31, 2006 and March 31, 2006, respectively, reflecting the
continued seasoning of insurance in force during the last twelve months.
The Company's loss ratio was 50.9% for the first quarter of 2007
compared with 44.7% for the full year 2006. The Company's expense ratio was
22.8% for the first quarter of 2007 compared to 24.6% for the full year
2006.
Triad Guaranty Inc.'s wholly owned subsidiary, Triad Guaranty Insurance
Corporation, is a nationwide mortgage insurer providing credit enhancement
solutions to its lender customers and the capital markets. This allows
buyers to achieve homeownership sooner, facilitates the sale of mortgage
loans in the secondary market and protects lenders from credit
default-related expenses. For more information, please visit the Company's
web site at http://www.triadguaranty.com
Diluted realized investment gains/(losses) per share, net of taxes is a
non-GAAP measure. We believe this is relevant and useful information to
investors because, except for losses on impaired securities, it shows the
effect that the Company's discretionary sale of investments had on
earnings.
This document may contain forward-looking statements that involve various
risks and uncertainties. Actual results may differ from those set forth in
the forward-looking statements. Attention is directed to the discussion of
risk and uncertainties as part of the Safe Harbor statement under the Private
Securities Litigation Reform Act of 1995 contained in the Company's most
recent annual report, Form 10-K and other reports filed with the Securities
and Exchange Commission.
Triad Guaranty Inc.
Consolidated Income Statement
(Unaudited)
Three Months Ended
March 31,
2007 2006
(Dollars in thousands
except per share amounts)
Premiums written:
Direct $78,408 $59,312
Ceded (12,701) (10,970)
Net premiums written $65,707 $48,342
Earned premiums $63,949 $47,890
Net investment income 7,349 6,222
Net realized investment gains (losses) 761 900
Other income (losses) 2 (2)
Total revenues 72,061 55,010
Net losses and loss adjustment expenses 32,581 16,351
Interest expense on debt 694 693
Amortization of deferred policy
acquisition costs 4,624 3,862
Other operating expenses - net 10,330 8,513
Income before income taxes 23,832 25,591
Income taxes 6,510 7,038
Net income $17,322 $18,553
Basic earnings per share $1.17 $1.26
Diluted earnings per share $1.16 $1.25
Weighted average common and common stock
equivalents outstanding (in thousands)
Basic 14,819 14,758
Diluted 14,946 14,862
NON-GAAP INFORMATION:
Diluted realized investment gains (losses)
per share, net of taxes $0.03 $0.04
Triad Guaranty Inc.
Consolidated Balance Sheet
(Unaudited) (Unaudited)
March 31, December 31, March 31,
2007 2006 2006
(Dollars in thousands
except per share amounts)
Assets:
Invested assets:
Fixed maturities,
available for sale,
at market $608,945 $586,594 $541,393
Equity securities,
available for sale,
at market 9,921 10,417 9,987
Other Investments 5,000 5,000 -
Short-term investments 45,294 5,301 5,053
669,160 607,312 556,433
Cash and cash equivalents 10,429 38,609 13,743
Deferred policy
acquisition costs 35,035 35,143 33,904
Prepaid federal income tax 166,693 166,908 139,465
Other assets 50,198 47,659 42,433
Total assets $931,515 $895,631 $785,978
Liabilities:
Losses and loss adjustment
expenses $98,721 $84,352 $52,614
Unearned premiums 15,022 13,193 13,944
Deferred income tax 180,232 176,483 159,180
Long-term debt 34,512 34,510 34,503
Other liabilities 15,876 16,869 10,530
Total liabilities 344,363 325,407 270,771
Stockholders' equity:
Retained earnings 470,398 453,076 405,995
Accumulated other
comprehensive income 10,157 12,018 7,211
Other equity accounts 106,597 105,130 102,001
Total stockholders'
equity 587,152 570,224 515,207
Total liabilities and
stockholders' equity $931,515 $895,631 $785,978
Stockholders' equity per
share:
Including unrealized
investment gains $39.38 $38.38 $34.74
Excluding unrealized
investment gains $38.70 $37.57 $34.25
Common shares outstanding 14,908,523 14,856,401 14,831,560
Triad Guaranty Inc.
Sequential Quarterly Statistical Information
(Unaudited)
Mar 31, Dec 31, Sep 30, Jun 30, Mar 31,
2007 2006 2006 2006 2006
(Dollars in millions unless otherwise indicated)
Insurance In Force
Primary insurance in force:
- Flow business $35,366 $32,779 $31,012 $30,064 $29,510
- Structured bulk
transactions 2,616 1,330 1,094 719 381
Total Primary
insurance in force 37,982 34,109 32,106 30,783 29,891
Modified Pool insurance in
force 23,507 22,719 21,779 20,022 18,309
Total insurance in
force $61,489 $56,828 $53,885 $50,804 $48,200
Number of insured loans:
- Primary 239,326 225,531 219,287 216,458 215,736
- Modified Pool 114,711 112,555 110,650 107,653 101,934
Total number of
insured loans 354,037 338,086 329,937 324,111 317,670
Average loan size:
- Primary $158.7 $151.2 $146.4 $142.2 $138.6
- Modified Pool $204.9 $201.9 $196.8 $186.0 $179.6
Credit quality of primary
insurance in force(1)
Prime 77.1% 80.4% 81.5% 82.9% 84.6%
Alt-A 19.1% 15.4% 14.1% 12.3% 10.4%
A Minus 3.2% 3.5% 3.6% 3.9% 4.1%
Sub Prime 0.6% 0.7% 0.8% 0.9% 0.9%
Primary Alt A insurance in
force by credit score:
FICO between 620 and 659 8.9% 10.1% 11.6% 14.4% 17.9%
FICO between 660 and 699 30.9% 32.5% 33.9% 34.4% 34.0%
FICO between 700 and 739 33.7% 31.9% 30.3% 28.2% 27.1%
FICO greater than 739 26.5% 25.5% 24.2% 22.9% 21.0%
Potential Negative
Amortization Mortgages
(PNAM)
% of Primary Insurance in
Force 14.3% 11.7%
% of Modified Pool
Insurance in Force 19.9% 21.2%
Credit quality of Primary
PNAM
Prime 30.8% 35.1%
Alt-A 69.1% 64.7%
A Minus 0.1% 0.2%
Sub Prime 0.0% 0.0%
Primary flow insurance in
force subject to captive
reinsurance arrangements 57.9% 61.0% 62.9% 62.7% 59.7%
Primary annual persistency
rate 77.0% 76.6% 75.3% 72.7% 71.1%
Dec 31, Sep 30, Jun 30, Mar 31,
2005 2005 2005 2005
(Dollars in millions unless otherwise indicated)
Insurance In Force
Primary insurance in force:
- Flow business $29,364 $29,327 $28,904 $28,314
- Structured bulk transactions 428 492 585 687
Total Primary insurance in
force 29,792 29,820 29,489 29,001
Modified Pool insurance in force 14,615 13,406 10,018 9,217
Total insurance in force $44,407 $43,225 $39,507 $38,218
Number of insured loans:
- Primary 217,397 219,159 219,256 217,657
- Modified Pool 85,091 78,241 59,581 55,182
Total number of insured loans 302,488 297,400 278,837 272,839
Average loan size:
- Primary $137.0 $136.1 $134.5 $133.2
- Modified Pool $171.8 $171.3 $168.1 $167.0
Credit quality of primary insurance
in force(1)
Prime 84.9% 85.5% 86.2% 87.2%
Alt-A 9.9% 9.2% 8.4% 7.6%
A Minus 4.2% 4.3% 4.4% 4.3%
Sub Prime 1.0% 1.0% 1.0% 1.0%
Primary Alt A insurance in force by
credit score:
FICO between 620 and 659 19.2% 20.0% 21.6% 22.7%
FICO between 660 and 699 33.9% 34.4% 36.6% 38.0%
FICO between 700 and 739 26.4% 26.0% 23.8% 22.7%
FICO greater than 739 20.5% 19.6% 18.0% 16.5%
Potential Negative Amortization
Mortgages (PNAM)
% of Primary Insurance in Force
% of Modified Pool Insurance in
Force
Credit quality of Primary PNAM
Prime
Alt-A
A Minus
Sub Prime
Primary flow insurance in force
subject to captive reinsurance
arrangements 59.0% 58.3% 57.2% 56.7%
Primary annual persistency rate 70.0% 69.7% 70.9% 69.0%
(1) The Credit Quality of loans notated above are defined as followed:
Prime - All business that is not Alt A, A-, or subprime; Alt A - Loans
with credit scores >= 620 and that were underwritten with low or no
documentation; A minus - Loans with credit scores >= 575 and <= 619;
Subprime - Loans with credit scores less than 575
Triad Guaranty Inc.
Sequential Quarterly Statistical Information (con't.)
(Unaudited)
Mar 31, Dec 31, Sep 30, Jun 30, Mar 31,
2007 2006 2006 2006 2006
(Dollars in millions unless
otherwise indicated)
Risk In Force - Primary
Primary net risk in force:
- Flow business $8,094 $7,447 $7,016 $6,781 $6,652
- Structured bulk business 843 377 305 185 127
Total Primary net risk in
force $8,937 $7,824 $7,321 $6,966 $6,779
Primary risk in force by credit
score
FICO less than 575 0.5% 0.6% 0.7% 0.7% 0.8%
FICO between 575 and 619 3.2% 3.6% 3.7% 3.9% 4.1%
FICO between 620 and 659 15.9% 16.4% 16.7% 17.3% 17.8%
FICO between 660 and 699 24.7% 24.5% 24.5% 24.5% 24.5%
FICO between 700 and 739 25.9% 25.2% 24.7% 24.2% 23.9%
FICO greater than 739 29.8% 29.7% 29.8% 29.3% 28.9%
Primary risk in force by policy
year
2001 and prior 3.7% 4.4% 5.0% 5.7% 6.4%
2002 4.6% 5.5% 6.3% 7.1% 8.0%
2003 14.3% 17.1% 19.4% 22.0% 24.6%
2004 13.9% 16.8% 19.3% 21.9% 24.4%
2005 19.6% 23.4% 26.3% 29.1% 31.3%
2006 30.5% 32.8% 23.7% 14.2% 5.3%
2007 13.5% - - - -
Primary risk in force by loan
type:
- Fixed 66.2% 70.1% 71.0% 72.6% 73.8%
- ARM (positive amortization) 19.9% 18.3% 19.4% 19.8% 21.3%
- ARM (potential negative
amortization) 13.9% 11.6% 9.6% 7.6% 4.9%
Primary risk in force by property
type:
- Condominium 10.1% 9.6% 9.2% 8.7% 8.3%
- Other (principally single-
family detached) 89.9% 90.4% 90.8% 91.3% 91.7%
Primary risk in force by
occupancy status:
- Primary residence 88.1% 89.4% 89.7% 90.3% 91.3%
- Second home 7.7% 7.4% 7.0% 6.2% 5.3%
- Non-owner occupied 4.2% 3.2% 3.3% 3.5% 3.4%
Primary risk in force by mortgage
amount:
- $200,000 or less 53.9% 58.4% 61.3% 64.3% 66.7%
- Greater than $200,000 46.1% 41.6% 38.7% 35.7% 33.3%
Potential Negative Amortization
Mortgages (PNAM)
% of total Primary risk
in force - Flow business 13.7% 10.7%
% of total Primary risk
in force - Bulk business 16.1% 30.9%
% of total Primary risk
in force - Total 13.9% 11.6%
Primary PNAM risk in force by
credit score
FICO less than 575 0.0% 0.0%
FICO between 575 and 619 0.1% 0.2%
FICO between 620 and 659 9.0% 7.9%
FICO between 660 and 699 28.8% 29.7%
FICO between 700 and 739 33.7% 33.6%
FICO greater than 739 28.4% 28.6%
Dec 31, Sep 30, Jun 30, Mar 31,
2005 2005 2005 2005
Risk In Force - Primary
Primary net risk in force:
- Flow business $6,624 $6,647 $6,509 $6,351
- Structured bulk business 143 159 191 223
Total Primary net risk
in force $6,767 $6,806 $6,700 $6,574
Primary risk in force by credit score
FICO less than 575 0.8% 0.9% 1.0% 1.0%
FICO between 575 and 619 4.3% 4.4% 4.6% 4.6%
FICO between 620 and 659 17.9% 18.2% 18.3% 18.1%
FICO between 660 and 699 24.4% 24.4% 24.6% 24.7%
FICO between 700 and 739 23.9% 23.8% 23.7% 23.8%
FICO greater than 739 28.7% 28.3% 27.9% 27.8%
Primary risk in force by policy year
2001 and prior 6.9% 7.6% 8.6% 9.7%
2002 8.6% 9.5% 11.1% 12.6%
2003 26.6% 29.3% 33.4% 37.3%
2004 26.1% 28.2% 31.4% 34.2%
2005 31.8% 25.4% 15.5% 6.2%
2006 - - - -
2007 - - - -
Primary risk in force by loan type:
- Fixed 73.7% 73.6% 74.1% 75.6%
- ARM (positive amortization) 22.2% 23.1% 23.9% 23.7%
- ARM (potential negative
amortization) 4.1% 3.3% 2.0% 0.7%
Primary risk in force by property
type:
- Condominium 7.8% 7.5% 7.2% 7.1%
- Other (principally single-family
detached) 92.2% 92.5% 92.8% 92.9%
Primary risk in force by occupancy
status:
- Primary residence 91.9% 92.7% 92.9% 93.3%
- Second home 4.6% 3.9% 3.7% 3.4%
- Non-owner occupied 3.5% 3.4% 3.4% 3.3%
Primary risk in force by mortgage
amount:
- $200,000 or less 67.7% 68.5% 69.9% 70.9%
- Greater than $200,000 32.3% 31.5% 30.1% 29.1%
Potential Negative Amortization
Mortgages (PNAM)
% of total Primary risk
in force - Flow business
% of total Primary risk
in force - Bulk business
% of total Primary risk
in force - Total
Primary PNAM risk in force by
credit score
FICO less than 575
FICO between 575 and 619
FICO between 620 and 659
FICO between 660 and 699
FICO between 700 and 739
FICO greater than 739
Triad Guaranty Inc.
Sequential Quarterly Statistical Information (con't.)
(Unaudited)
Mar 31, Dec 31, Sep 30, Jun 30, Mar 31,
2007 2006 2006 2006 2006
(Dollars in millions unless
otherwise indicated)
Risk In Force - Modified Pool
Modified Pool gross risk in force $933 $890 $837 $764 $751
Deductibles on gross risk $114 $101 $94 $90 $83
Modified Pool risk in force by
credit score(2):
FICO less than 575 0.1% 0.2% 0.2% 0.2% 0.2%
FICO between 575 and 619 0.7% 0.8% 0.9% 1.0% 1.0%
FICO between 620 and 659 10.9% 11.3% 11.6% 12.0% 12.2%
FICO between 660 and 699 31.3% 31.0% 30.6% 30.2% 29.9%
FICO between 700 and 739 29.8% 29.4% 29.4% 29.5% 29.7%
FICO greater than 739 27.2% 27.3% 27.3% 27.1% 27.1%
Modified Pool risk in force by
policy year
2001 and prior 2.8% 3.1% 3.7% 4.3% 4.7%
2002 3.4% 3.7% 4.3% 5.2% 5.8%
2003 14.7% 15.4% 16.4% 18.1% 18.4%
2004 16.0% 16.6% 17.6% 19.5% 19.6%
2005 29.2% 30.4% 32.3% 35.6% 35.9%
2006 29.9% 30.8% 25.7% 17.3% 15.4%
2007 4.0% - - - -
Modified Pool risk in force by
loan type(2):
- Fixed 28.2% 31.0% 32.1% 35.5% 32.5%
- ARM (positive amortization) 59.4% 55.6% 56.1% 58.7% 65.8%
- ARM (potential negative
amortization) 12.4% 13.4% 11.8% 5.8% 1.7%
Modified Pool risk in force by
property type(2):
- Condominium 8.9% 8.0% 7.3% 7.2% 6.7%
- Other (principally single-
family detached) 91.1% 92.0% 92.7% 92.8% 93.3%
Modified Pool risk in force by
occupancy status(2):
- Primary residence 73.8% 73.7% 73.7% 73.9% 74.2%
- Second home 6.1% 6.2% 6.0% 5.9% 5.9%
- Non-owner occupied 20.1% 20.1% 20.3% 20.2% 19.9%
Modified Pool risk in force by
mortgage amount(2):
- $200,000 or less 37.1% 38.4% 39.6% 41.9% 42.9%
- Greater than $200,000 62.9% 61.6% 60.4% 58.1% 57.1%
Potential Negative Amortization
Mortgages (PNAM)(2):
% of total Modified Pool risk
in force 12.4% 13.4%
Modified Pool PNAM risk in force
by credit score(2):
FICO less than 575 0.0% 0.0%
FICO between 575 and 619 0.1% 0.1%
FICO between 620 and 659 8.6% 8.5%
FICO between 660 and 699 32.5% 32.2%
FICO between 700 and 739 29.3% 29.3%
FICO greater than 739 29.5% 29.9%
Dec 31, Sep 30, Jun 30, Mar 31,
2005 2005 2005 2005
Risk In Force - Modified Pool
Modified Pool gross risk in force $616 $579 $489 $462
Deductibles on gross risk $71 $68 $59 $53
Modified Pool risk in force by
credit score(2):
FICO less than 575 0.2% 0.2% 0.3% 0.3%
FICO between 575 and 619 1.1% 1.2% 1.6% 1.8%
FICO between 620 and 659 14.2% 14.8% 17.4% 18.3%
FICO between 660 and 699 31.1% 31.5% 33.2% 33.1%
FICO between 700 and 739 28.4% 28.1% 27.2% 26.7%
FICO greater than 739 25.0% 24.1% 20.2% 19.7%
Modified Pool risk in force by
policy year
2001 and prior 6.3% 8.0% 10.1% 11.9%
2002 7.9% 10.1% 13.3% 16.3%
2003 22.6% 24.2% 28.8% 30.7%
2004 24.1% 26.0% 31.0% 32.9%
2005 39.2% 31.7% 16.8% 8.2%
2006 - - - -
2007 - - - -
Modified Pool risk in force by
loan type(2):
- Fixed 41.3% 43.2% 47.9% 49.9%
- ARM (positive amortization) 58.7% 56.8% 52.1% 50.1%
- ARM (potential negative
amortization) 0.0% 0.0% 0.0% 0.0%
Modified Pool risk in force by
property type(2):
- Condominium 5.9% 4.8% 2.2% 1.4%
- Other (principally single-family
detached) 94.1% 95.2% 97.8% 98.6%
Modified Pool risk in force by
occupancy status(2):
- Primary residence 74.2% 74.7% 74.9% 75.0%
- Second home 5.7% 5.7% 5.7% 5.3%
- Non-owner occupied 20.1% 19.6% 19.4% 19.7%
Modified Pool risk in force by
mortgage amount(2):
- $200,000 or less 46.4% 46.3% 47.1% 47.5%
- Greater than $200,000 53.6% 53.7% 52.9% 52.5%
Potential Negative Amortization
Mortgages (PNAM)(2):
% of total Modified Pool risk
in force
Modified Pool PNAM risk in force
by credit score(2):
FICO less than 575
FICO between 575 and 619
FICO between 620 and 659
FICO between 660 and 699
FICO between 700 and 739
FICO greater than 739
(2) Percentages represent distribution of direct risk in force (RIF) on a
per policy basis and do not account for applicable stop loss amounts.
Triad Guaranty Inc.
Sequential Quarterly Statistical Information (con't.)
(Unaudited)
Mar 31, Dec 31, Sep 30, Jun 30, Mar 31,
2007 2006 2006 2006 2006
(Dollars in millions unless otherwise indicated)
Production
New insurance written (NIW):
- Primary flow business $4,372 $3,612 $2,844 $2,559 $1,947
- Primary structured bulk
business 1,327 304 436 385 1
Total Primary 5,699 3,916 3,280 2,944 1,948
- Modified Pool 1,925 2,130 2,956 2,980 4,606
Total NIW $7,624 $6,046 $6,236 $5,924 $6,553
New risk written:
- Primary (gross) $1,576 $991 $865 $730 $490
- Modified Pool 69 78 106 92 142
Total new risk written $1,645 $1,069 $971 $822 $633
Primary NIW by loan-to-value
ratio (LTV):
- Greater than 95% 26.2% 16.2% 20.7% 12.2% 10.1%
- 90.01% to 95.00% 23.8% 25.3% 23.3% 22.0% 25.0%
- 90.00% and below 50.0% 58.5% 56.0% 65.8% 64.9%
Potential Negative Amortization
Mortgages (PNAM)
% of total Primary NIW 29.2% 28.6%
% of total Modified Pool NIW 3.0% 40.3%
Primary PNAM NIW by loan-to-value
ratio (LTV):
- Greater than 95% 1.7% 5.3%
- 90.01% to 95.00% 25.4% 17.3%
- 90.00% and below 72.9% 77.5%
Modified Pool PNAM NIW by loan-to-
value ratio (LTV):
- 80.00% and below 100.0% 100.0%
Percent of Primary NIW from
refinancings 44.1% 41.5% 28.9% 32.5% 33.5%
Percent of Primary flow NIW
subject to captive reinsurance
arrangements 28.1% 31.9% 61.5% 61.2% 55.1%
Dec 31, Sep 30, Jun 30, Mar 31,
2005 2005 2005 2005
(Dollars in millions unless otherwise indicated)
Production
New insurance written (NIW):
- Primary flow business $2,263 $3,091 $2,941 $2,161
- Primary structured bulk business - 2 - 30
Total Primary 2,263 3,093 2,941 2,191
- Modified Pool 2,255 4,526 1,798 2,103
Total NIW $4,518 $7,619 $4,739 $4,294
New risk written:
- Primary (gross) $583 $822 $723 $540
- Modified Pool 55 97 46 62
Total new risk written $638 $919 $769 $602
Primary NIW by loan-to-value ratio
(LTV):
- Greater than 95% 11.0% 14.1% 11.6% 13.2%
- 90.01% to 95.00% 35.9% 43.0% 30.7% 30.1%
- 90.00% and below 53.1% 42.9% 57.7% 56.7%
Potential Negative Amortization
Mortgages (PNAM)
% of total Primary NIW
% of total Modified Pool NIW
Primary PNAM NIW by loan-to-value
ratio (LTV):
- Greater than 95%
- 90.01% to 95.00%
- 90.00% and below
Modified Pool PNAM NIW by loan-to-
value ratio (LTV):
- 80.00% and below
Percent of Primary NIW from
refinancings 28.6% 26.5% 33.6% 34.9%
Percent of Primary flow NIW subject
to captive reinsurance arrangements 55.1% 58.1% 54.6% 47.4%
Note: The Company periodically enters into structured transactions
involving loans that have insurance effective dates within the current
reporting period but for which detailed loan information regarding the
insured loans is not provided until later. When this occurs, the Company
accrues due premium in the reporting period based on each loan's
insurance effective date; however, the loans are not reflected in the
Company's in force and related data totals until the loan level detail is
reported to the Company. At March 31, 2007, the Company had approximately
$1.899 billion of structured transactions with effective dates within the
first quarter for which loan level detail had not been received.
Triad Guaranty Inc.
Sequential Quarterly Statistical Information (con't.)
(Unaudited)
Mar 31, Dec 31, Sep 30, Jun 30, Mar 31,
2007 2006 2006 2006 2006
(Dollars in millions unless otherwise indicated)
Delinquencies and Claim
Information
Total primary delinquent
loans 5,632 5,565 5,201 5,001 5,302
- Flow business 5,335 5,265 4,892 4,666 4,908
- Bulk business 297 300 309 335 394
Total Modified Pool
delinquent loans 3,366 3,001 2,387 1,944 2,055
- Structured with
deductibles 2,176 1,897 1,578 1,330 1,383
- Structured without
deductibles 1,190 1,104 809 614 672
Total primary
delinquency rate 2.35% 2.47% 2.37% 2.31% 2.46%
Modified Pool
delinquency rate 2.93% 2.67% 2.16% 1.81% 2.02%
Potential Negative
Amortization Mortgages
(PNAM)
Primary PNAM
delinquent loans 227 142
Primary PNAM
delinquency rate
(of total Primary
PNAM loans) 1.37% 1.12%
Modified Pool PNAM
delinquent loans 64 37
Modified Pool PNAM
delinquency rate
(of total Modified
Pool PNAM loans) 0.51% 0.28%
Primary average severity
($ thousands) $31.3 $28.1 $25.7 $25.8 $26.2
- Flow business $31.1 $27.9 $25.0 $25.0 $26.0
- Bulk business $34.0 $29.8 $37.6 $32.5 $27.4
Primary net paid claims
($ thousands) $16,447 $15,100 $13,016 $13,501 $13,305
- Flow business $15,122 $13,880 $11,887 $11,614 $11,444
- Bulk business $1,325 $1,220 $1,129 $1,887 $1,861
Modified Pool average
severity ($ thousands) $23.7 $26.2 $18.8 $19.4 $16.4
Modified Pool net paid
claims ($ thousands) $1,281 $1,493 $603 $930 $1,100
Risk in Default (without
deductibles)
($ thousands) $292,434 $265,415 $220,204 $197,014 $204,934
Reserves as Percent of
Risk at Default 33.8% 31.8% 27.3% 27.9% 25.7%
Financial Information
Loss ratio - GAAP 50.9% 70.9% 35.7% 34.1% 34.1%
Expense ratio - GAAP 22.8% 22.8% 24.8% 25.6% 25.6%
Combined ratio - GAAP 73.7% 93.7% 60.5% 59.7% 59.7%
Risk-to-capital
ratio 13.8:1 12.5:1 12.0:1 11.8:1 12.3:1
Dec 31, Sep 30, Jun 30, Mar 31,
2005 2005 2005 2005
(Dollars in millions unless otherwise indicated)
Delinquencies and Claim
Information
Total primary delinquent loans 5,617 4,537 4,189 4,319
- Flow business 5,147 4,097 3,752 3,872
- Bulk business 470 440 437 447
Total Modified Pool delinquent
loans 2,136 1,565 1,549 1,553
- Structured with deductibles 1,388 920 829 748
- Structured without
deductibles 748 645 720 805
Total primary delinquency rate 2.58% 2.07% 1.91% 1.98%
Modified Pool delinquency rate 2.51% 2.00% 2.60% 2.81%
Potential Negative Amortization
Mortgages (PNAM)
Primary PNAM delinquent loans
Primary PNAM delinquency rate
(of total Primary PNAM loans)
Modified Pool PNAM delinquent
loans
Modified Pool PNAM delinquency
rate (of total Modified Pool
PNAM loans)
Primary average severity
($ thousands) $26.2 $26.2 $28.9 $24.7
- Flow business $24.9 $26.1 $29.0 $24.9
- Bulk business $40.5 $27.4 $27.6 $21.0
Primary net paid claims
($ thousands) $11,562 $11,982 $12,147 $8,681
- Flow business $10,021 $10,555 $10,931 $8,283
- Bulk business $1,540 $1,427 $1,216 $398
Modified Pool average severity
($ thousands) $18.0 $22.0 $24.5 $17.6
Modified Pool net paid claims
($ thousands) $862 $1,475 $1,150 $970
Risk in Default (without
deductibles) ($ thousands) $220,030 $180,154 $168,368 $179,605
Reserves as Percent of Risk at
Default 23.2% 23.2% 22.9% 19.4%
Financial Information
Loss ratio - GAAP 48.9% 38.4% 42.0% 27.4%
Expense ratio - GAAP 26.4% 26.1% 26.4% 28.1%
Combined ratio - GAAP 75.3% 64.5% 68.4% 55.5%
Risk-to-capital
ratio 12.6:1 13.0:1 13.1:1 13.7:1
SOURCE Triad Guaranty Inc.
 back to top
Related links:
http://www.triadguaranty.com
CONTACT:
Ken Jones, Senior Vice President, Chief
Financial Officer of Triad Guaranty Inc., +1-800-451-4872 ext.
1105, kjones@tgic.com
|
