Credit risk management company Radian Group's (RDN) - Get Report third-quarter earnings fell 31.1%, affected by additions to loss reserves in its mortgage insurance business. The additions are attributable to new delinquencies, an aging of existing delinquencies and an increase in severity due primarily to larger average loan balances.
The company earned $112 million, or $1.36 a share, in the quarter, compared with $162.6 million, or $1.88 a share, a year ago. Analysts surveyed by Thomson First Call were expecting earnings of $1.52 a share.
Third-quarter revenue fell 15.9% from a year ago to $321.8 million.
Net premium written fell 18.8% to $254.8 million, and net investment income increased 13% to $60.2 million.
Revenue from Radian's mortgage insurance business segment fell 8.3% to $237.6 million, and revenue from its financial guaranty business fell 35.1% to $81.5 million.
The company added that it did less structured business in the quarter, reflecting market conditions and the tight spread environment.
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