Mortgage insurer Radian (RDN) posted third-quarter income of $14.3 million, or 11 cents a share, a 92% drop from year ago levels.
The steep drop in profit is attributed to changes in the fair value of derivatives and other financial instruments. Comparatively, the company posted a profit of $183.6 million, or $1.37 a share, for the same period last year.
The drop in profit levels overshadowed the fact that Radian improved its risk-to-capital ratio from 20.6-to-1 in March to to 20.1-to-1 in the third quarter.
Those improvements were tied to investment gains.
Radian also wrote $10.6 billion in new mortgage insurance business in just the third quarter, up from $4.1 billion a year ago.
