Life as a mortgage insurer looks increasingly grim this earnings season. Yet another dismal earnings report Thursday hit stocks in the sector, as MGIC Investment ( MTG) slashed its dividend. Each piece of bad news generates outsized declines among these stocks, which have fallen between 67% and 89% this year. As the housing market continues to deteriorate, investors are concerned that the mortgage crisis is pushing these companies to their limits. Mortgage insurance policies are paid out to lenders when borrowers default on their debt. Thursday, Triad Guaranty ( TGIC) plunged 29%, a day after reporting a hefty quarterly loss of $31.8 million, or $2.13 a share, compared to a profit of $19.4 million, or $1.30 a share, in the year-ago quarter. Analysts had anticipated Triad would earn 72 cents a share in the quarter. MGIC, which reported a massive $4.60 per-share third-quarter loss a week ago, Thursday slashed its quarterly dividend by 90% to 2.5 cents a share, sending shares down 12%. Radian Group ( RDN) and PMI Group ( PMI), which report earnings next week, sank 23% and 8% respectively. Winston-Salem, N.C.-based Triad, which analysts had seen as insuring better-quality loans, said net losses and loss adjustment expenses totaled $106.8 million in the quarter, compared to $19.3 million in the year-ago period. The losses included an increase of reserves of $78.3 million compared to just $5.7 million a year earlier. Paid claims were $28.5 million for the quarter compared to $13.6 million.