Radian Group Inc. today reported a net loss of $704 million and a diluted net loss per share of $8.78 for the third quarter ended September 30, 2007. From the unbelieveably brief press statement issued by the company, it's clear the company would rather have investors focusing on book value:
"The third quarter's results were disappointing but not unexpected given market conditions," said S.A. Ibrahim, Chief Executive Officer of Radian. "However, our book value is $42.86 per share and we are well positioned with our strong capital and liquidity position to weather the challenging credit cycle." Mr. Ibrahim added, "While mortgage insurance credit losses will continue to impact our results for the foreseeable future, I'm encouraged by the positive trends in mortgage insurance penetration and by the resiliency of our financial guaranty business."
It's worth noting that Radian's losses included a $468 million impairment charge associated with Credit-Based Asset Servicing and Securitization (C-BASS). Radian first disclosed in late July that it would write down its investment into the scratch-and-dent mortgage operation. Radian recently emerged as the spruned bride of sorts in failed merger talks with primary competitor MGIC Investment Corporation. The failed merger led Fitch Ratings to downgrade Radian's credit rating in September, leading to a spat between the financial guarantor and the agency.