Triad Guaranty Delays 2007 Results Amid Potential Investment
Triad Guaranty Inc. said Tuesday that it will delay its 2007 annual and fourth quarter results as it looks to secure additional capital from an outside investor group. The company said it expects to file its report by April 1 with the Securities and Exchange Commission, which is within the time period permitted under applicable SEC rules. Triad has been pursuing capital strengthening plans as its mortgage insurance operations have racked up increasing losses in the back half of 2007 -- it reported a net loss of $31.8 million during the third quarter, and is expected to post a wider loss for Q4. The insurer said in a press statement that it was "actively engaged in negotiations with a third party investor group regarding a potential transaction related to its capital enhancement efforts," although it didn't name the investor group. "While we have completed our work on the Company's 2007 financial statements, these negotiations are at a critical juncture," said Ken Jones, Triad's CFO. "Although we cannot provide any assurance that these negotiations will be successful, we believe that delaying the filing of our Form 10-K will best serve the interests of the company at this stage in the process." Mortgage insurers have come under increased pressure as borrower defaults have accelerated, pushing paid losses up and sending cure rates to an all-time low. For more information, visit http://www.triadguaranty.com.