Triad Guaranty Inc. said late Wednesday that net income at the guarantor and mortgage insurance specialist dropped 35 percent during the fourth quarter, reporting net income of $8.1 million for the quarter versus $12.6 million in the fourth quarter of 2005.
In spite of lagging fourth quarter performance, Triad reported annual net income for 2006 of $65.6 million, compared with $56.8 million for 2005.
"Despite many positive developments in the fourth quarter, our earnings are disappointing," said Mark Tonnesen, president and CEO. "While the increase in defaults and the number of paid claims was virtually on target, our average cost per paid claim increased significantly. The fundamental cause of the higher loss per claim was the impact of the slowing housing market on our claims mitigation efforts."