Triad Guaranty Inc. 2001 First Quarter Operating Earnings up 30.5 Percent

Apr 24, 2001, 01:00 ET from Triad Guaranty Inc.

    WINSTON-SALEM, N.C., April 24 /PRNewswire Interactive News Release/ --
     Triad Guaranty Inc. (Nasdaq:   TGIC) today reported first quarter 2001
 operating earnings, which excludes realized investment gains and losses, of
 $10.6 million or $0.77 per share, an increase of 30.5 percent compared to
 $8.1 million or $0.60 per share in the same period of 2000.  The Company's net
 income for the 2001 first quarter was $10.9 million, up 26 percent from
 $8.7 million in the first quarter of 2000.  Diluted earnings per share for the
 first quarter totaled $0.79 in 2001 compared to $0.63 in 2000.  Included in
 first quarter 2001 earnings was recognition of a nonrecurring incentive
 payment resulting from the cancellation of one of the Company's excess of loss
 reinsurance contracts.  This payment, which is reported as other income,
 represents approximately $0.09 per diluted share.
     Darryl W. Thompson, President and Chief Executive Officer, said, "We are
 pleased to report a record level of new insurance written and a strong
 26 percent growth in insurance in force for the first quarter of 2001.  Our
 production levels and our anticipated improvement in market share for the
 first quarter is reflective of tremendous efforts throughout our organization
 and our ongoing business strategy to serve our lender customers' needs by
 providing new, innovative and competitive products.  The strong new production
 and in force growth have laid the groundwork for Triad as we move through
 2001.  Our first quarter earnings also reflect strong growth in earned
 premiums as well as our continued excellent loss performance and an improved
 expense ratio."
     Insurance in force reached $16.9 billion at March 31, 2001 compared to
 $15.1 billion at December 31, 2000 and $13.4 billion at March 31, 2000,
 reflecting a 26 percent growth over the past twelve months.  New insurance
 written totaled $2.6 billion in the first quarter of 2001 compared to
 $771 million in the first quarter of 2000, an increase of 240 percent.  Net
 new insurance written, which excludes insurance on seasoned loans, was
 $2.4 billion for the first quarter of 2001 compared to $749 million in the
 first quarter of 2000.  Net new insurance written in the first quarter of 2001
 included approximately $1.0 billion attributable to a structured bulk
 transaction.
     Refinance business accounted for 33.6 percent of new insurance written,
 excluding bulk production, for the first quarter of 2001 compared to
 12.7 percent in the same quarter a year ago.  Persistency, or the percentage
 of insurance remaining in force compared to one year prior, was 81.4 percent
 at March 31, 2001, compared with 82.6 percent at December 31, 2000, and 82.5
 percent at March 31, 2000.
     The Company's combined loss and expense ratio was 44.9 percent for the
 2001 first quarter compared to 45.1 percent for the same period of 2000.  The
 Company's expense ratio improved to 33.7 percent in the 2001 first quarter
 compared to 35.8 percent in the same period a year ago.  The ratio of losses
 incurred to premiums earned was 11.2 percent for the first quarter of 2001
 compared to 9.3 percent for the first quarter of 2000 and 10.6 percent for all
 of 2000.  The Company's ratio of delinquent loans to total certificates in
 force was 0.65 percent at March 31, 2001 compared to 0.61 percent a year ago.
 According to Thompson, "We continue to experience relatively low paid losses.
 Although we expect our number of defaults to increase as our insured portfolio
 matures, we are encouraged that our loss mitigation efforts and the current
 economic environment continue to contribute to our favorable default rate and
 loss results."
     Triad Guaranty Inc.'s wholly owned subsidiary, Triad Guaranty Insurance
 Corporation, is a nationwide mortgage insurer providing mortgage insurance
 (MI) to residential mortgage lenders.  Private MI makes homeownership
 available to buyers with down payments of less than 20%, facilitates the sale
 of mortgage loans in the secondary market and protects lenders from default-
 related expenses.  For more information, please visit the company's web site
 at www.triadguaranty.com.
     This document contains forward-looking statements which involve various
 risks and uncertainties.  Actual results may differ from those set forth in
 the forward-looking statements.  Attention is directed to the discussion of
 risks and uncertainties as part of the Safe Harbor Statement under the Private
 Securities Litigation Reform Act of 1995 contained in the Company's most
 recent annual report, Form 10-K and other reports filed with the Securities
 and Exchange Commission.
 
                           Triad Guaranty Inc.
          Selected Consolidated Financial and Statistical Data
                               (Unaudited)
 
                                             Three Months Ended
                                                  March 31,
                                              2001        2000
                                        (Dollars in thousands, except
     INCOME STATEMENT DATA (for          per share amounts)
      period ended):
       Premiums written:
         Direct                               $21,793     $18,008
         Assumed                                    2           3
         Ceded                                 (1,983)       (948)
                 Net premiums written         $19,812     $17,063
       Earned premiums                        $19,683     $17,144
       Net investment income                    3,476       2,926
       Realized investment gains                  452         778
       Other income                             1,867           6
         Total revenues                        25,478      20,854
       Net losses and loss adjustment
        expenses                                2,203       1,596
       Interest expense on debt                   693         693
       Amortization of deferred policy
        acquisition costs                       2,334       2,000
       Other operating expenses - net           4,351       4,111
       Income before income taxes              15,897      12,454
       Income taxes                             4,977       3,802
       Net income                             $10,920      $8,652
       Basic earnings per share                 $0.82       $0.65
       Diluted earnings per share               $0.79       $0.63
       Net operating earnings per diluted
        share                                   $0.77       $0.60
     Weighted average common shares
      outstanding (thousands)
         Basic                                 13,355      13,310
         Diluted                               13,830      13,656
 
     GAAP OPERATING RATIOS:
       Loss ratio                                11.2%        9.3%
       Expense ratio                             33.7%       35.8%
       Combined ratio                            44.9%       45.1%
 
     OTHER OPERATING INFORMATION ($
      millions):
       New insurance written ("NIW")
            Gross                              $2,627        $771
               Net NIW - flow                  $1,408        $749
               Net NIW - bulk                   1,038          --
            Net NIW                            $2,446        $749
 
       New primary risk written                  $373        $200
       Product mix as a % of flow NIW
            95% LTV's                            43.7%       44.5%
            ARMs                                  2.5%        7.9%
            Monthly premium                      97.4%       93.8%
            Refinances                           33.6%       12.7%
 
 
                               Triad Guaranty Inc.
                          Other Financial Information
                                   (Unaudited)
 
 
                                           March 31,  December 31, March 31,
                                             2001         2000        2000
     BALANCE SHEET DATA (at period end):
                                           (Dollars in thousands, except per
                                                     share amounts)
     Assets:
       Cash and invested assets              $245,793    $233,538    $198,459
       Deferred policy acquisition costs       23,685      22,815      20,698
       Prepaid federal income tax              49,955      49,375      36,562
       Other assets                            24,441      22,649      17,052
            Total assets                     $343,874    $328,377    $272,771
 
     Liabilities:
       Losses and loss adjustment expenses    $16,060     $14,987     $14,459
       Unearned premiums                        7,073       6,933       6,753
       Deferred income tax                     66,049      60,652      46,102
       Long-term debt                          34,469      34,467      34,463
       Other liabilities                        8,636      11,506       4,184
           Total liabilities                  132,287     128,545     105,961
       Total stockholders' equity             211,587     199,832     166,810
     Total liabilities and stockholders'
      equity                                 $343,874    $328,377    $272,771
 
     Stockholders' equity per share:
       Including unrealized (losses) gains
        on investments                         $15.84      $14.97      $12.53
       Excluding unrealized (losses) gains
        on investments                         $15.61      $14.79      $12.81
 
     OTHER STATISTICAL INFORMATION ($ in
      millions):
     Direct insurance in force                $16,943     $15,124     $13,437
     Direct risk in force (gross)              $3,910      $3,760      $3,328
     Risk-to-capital ratio                     14.9:1      14.8:1      15.1:1
     Number of insured loans                  130,015     123,046     111,049
     Persistency                                 81.4%       82.6%       82.5%
     Quarterly net paid claims and LAE ($
      thousands)                               $1,126      $2,006      $1,871
     Number of delinquent insured loans           848         740         678
     Delinquency rate                            0.65%       0.60%       0.61%
 
 
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SOURCE Triad Guaranty Inc.
    WINSTON-SALEM, N.C., April 24 /PRNewswire Interactive News Release/ --
     Triad Guaranty Inc. (Nasdaq:   TGIC) today reported first quarter 2001
 operating earnings, which excludes realized investment gains and losses, of
 $10.6 million or $0.77 per share, an increase of 30.5 percent compared to
 $8.1 million or $0.60 per share in the same period of 2000.  The Company's net
 income for the 2001 first quarter was $10.9 million, up 26 percent from
 $8.7 million in the first quarter of 2000.  Diluted earnings per share for the
 first quarter totaled $0.79 in 2001 compared to $0.63 in 2000.  Included in
 first quarter 2001 earnings was recognition of a nonrecurring incentive
 payment resulting from the cancellation of one of the Company's excess of loss
 reinsurance contracts.  This payment, which is reported as other income,
 represents approximately $0.09 per diluted share.
     Darryl W. Thompson, President and Chief Executive Officer, said, "We are
 pleased to report a record level of new insurance written and a strong
 26 percent growth in insurance in force for the first quarter of 2001.  Our
 production levels and our anticipated improvement in market share for the
 first quarter is reflective of tremendous efforts throughout our organization
 and our ongoing business strategy to serve our lender customers' needs by
 providing new, innovative and competitive products.  The strong new production
 and in force growth have laid the groundwork for Triad as we move through
 2001.  Our first quarter earnings also reflect strong growth in earned
 premiums as well as our continued excellent loss performance and an improved
 expense ratio."
     Insurance in force reached $16.9 billion at March 31, 2001 compared to
 $15.1 billion at December 31, 2000 and $13.4 billion at March 31, 2000,
 reflecting a 26 percent growth over the past twelve months.  New insurance
 written totaled $2.6 billion in the first quarter of 2001 compared to
 $771 million in the first quarter of 2000, an increase of 240 percent.  Net
 new insurance written, which excludes insurance on seasoned loans, was
 $2.4 billion for the first quarter of 2001 compared to $749 million in the
 first quarter of 2000.  Net new insurance written in the first quarter of 2001
 included approximately $1.0 billion attributable to a structured bulk
 transaction.
     Refinance business accounted for 33.6 percent of new insurance written,
 excluding bulk production, for the first quarter of 2001 compared to
 12.7 percent in the same quarter a year ago.  Persistency, or the percentage
 of insurance remaining in force compared to one year prior, was 81.4 percent
 at March 31, 2001, compared with 82.6 percent at December 31, 2000, and 82.5
 percent at March 31, 2000.
     The Company's combined loss and expense ratio was 44.9 percent for the
 2001 first quarter compared to 45.1 percent for the same period of 2000.  The
 Company's expense ratio improved to 33.7 percent in the 2001 first quarter
 compared to 35.8 percent in the same period a year ago.  The ratio of losses
 incurred to premiums earned was 11.2 percent for the first quarter of 2001
 compared to 9.3 percent for the first quarter of 2000 and 10.6 percent for all
 of 2000.  The Company's ratio of delinquent loans to total certificates in
 force was 0.65 percent at March 31, 2001 compared to 0.61 percent a year ago.
 According to Thompson, "We continue to experience relatively low paid losses.
 Although we expect our number of defaults to increase as our insured portfolio
 matures, we are encouraged that our loss mitigation efforts and the current
 economic environment continue to contribute to our favorable default rate and
 loss results."
     Triad Guaranty Inc.'s wholly owned subsidiary, Triad Guaranty Insurance
 Corporation, is a nationwide mortgage insurer providing mortgage insurance
 (MI) to residential mortgage lenders.  Private MI makes homeownership
 available to buyers with down payments of less than 20%, facilitates the sale
 of mortgage loans in the secondary market and protects lenders from default-
 related expenses.  For more information, please visit the company's web site
 at www.triadguaranty.com.
     This document contains forward-looking statements which involve various
 risks and uncertainties.  Actual results may differ from those set forth in
 the forward-looking statements.  Attention is directed to the discussion of
 risks and uncertainties as part of the Safe Harbor Statement under the Private
 Securities Litigation Reform Act of 1995 contained in the Company's most
 recent annual report, Form 10-K and other reports filed with the Securities
 and Exchange Commission.
 
                           Triad Guaranty Inc.
          Selected Consolidated Financial and Statistical Data
                               (Unaudited)
 
                                             Three Months Ended
                                                  March 31,
                                              2001        2000
                                        (Dollars in thousands, except
     INCOME STATEMENT DATA (for          per share amounts)
      period ended):
       Premiums written:
         Direct                               $21,793     $18,008
         Assumed                                    2           3
         Ceded                                 (1,983)       (948)
                 Net premiums written         $19,812     $17,063
       Earned premiums                        $19,683     $17,144
       Net investment income                    3,476       2,926
       Realized investment gains                  452         778
       Other income                             1,867           6
         Total revenues                        25,478      20,854
       Net losses and loss adjustment
        expenses                                2,203       1,596
       Interest expense on debt                   693         693
       Amortization of deferred policy
        acquisition costs                       2,334       2,000
       Other operating expenses - net           4,351       4,111
       Income before income taxes              15,897      12,454
       Income taxes                             4,977       3,802
       Net income                             $10,920      $8,652
       Basic earnings per share                 $0.82       $0.65
       Diluted earnings per share               $0.79       $0.63
       Net operating earnings per diluted
        share                                   $0.77       $0.60
     Weighted average common shares
      outstanding (thousands)
         Basic                                 13,355      13,310
         Diluted                               13,830      13,656
 
     GAAP OPERATING RATIOS:
       Loss ratio                                11.2%        9.3%
       Expense ratio                             33.7%       35.8%
       Combined ratio                            44.9%       45.1%
 
     OTHER OPERATING INFORMATION ($
      millions):
       New insurance written ("NIW")
            Gross                              $2,627        $771
               Net NIW - flow                  $1,408        $749
               Net NIW - bulk                   1,038          --
            Net NIW                            $2,446        $749
 
       New primary risk written                  $373        $200
       Product mix as a % of flow NIW
            95% LTV's                            43.7%       44.5%
            ARMs                                  2.5%        7.9%
            Monthly premium                      97.4%       93.8%
            Refinances                           33.6%       12.7%
 
 
                               Triad Guaranty Inc.
                          Other Financial Information
                                   (Unaudited)
 
 
                                           March 31,  December 31, March 31,
                                             2001         2000        2000
     BALANCE SHEET DATA (at period end):
                                           (Dollars in thousands, except per
                                                     share amounts)
     Assets:
       Cash and invested assets              $245,793    $233,538    $198,459
       Deferred policy acquisition costs       23,685      22,815      20,698
       Prepaid federal income tax              49,955      49,375      36,562
       Other assets                            24,441      22,649      17,052
            Total assets                     $343,874    $328,377    $272,771
 
     Liabilities:
       Losses and loss adjustment expenses    $16,060     $14,987     $14,459
       Unearned premiums                        7,073       6,933       6,753
       Deferred income tax                     66,049      60,652      46,102
       Long-term debt                          34,469      34,467      34,463
       Other liabilities                        8,636      11,506       4,184
           Total liabilities                  132,287     128,545     105,961
       Total stockholders' equity             211,587     199,832     166,810
     Total liabilities and stockholders'
      equity                                 $343,874    $328,377    $272,771
 
     Stockholders' equity per share:
       Including unrealized (losses) gains
        on investments                         $15.84      $14.97      $12.53
       Excluding unrealized (losses) gains
        on investments                         $15.61      $14.79      $12.81
 
     OTHER STATISTICAL INFORMATION ($ in
      millions):
     Direct insurance in force                $16,943     $15,124     $13,437
     Direct risk in force (gross)              $3,910      $3,760      $3,328
     Risk-to-capital ratio                     14.9:1      14.8:1      15.1:1
     Number of insured loans                  130,015     123,046     111,049
     Persistency                                 81.4%       82.6%       82.5%
     Quarterly net paid claims and LAE ($
      thousands)                               $1,126      $2,006      $1,871
     Number of delinquent insured loans           848         740         678
     Delinquency rate                            0.65%       0.60%       0.61%
 
 
                                MAKE YOUR OPINION COUNT -  Click Here
                 http://tbutton.prnewswire.com/prn/11690X41355714
 
 SOURCE  Triad Guaranty Inc.