Radian Group (RDN) Shares Higher on Positive CFO Comments/Outlook (PMI, GNW, MTG)

Shares of Radian Group Inc. (NYSE: RDN) have been trending up all day, currently 10.73% higher to $10.23.

The move may be connected to CFO Bob Quint seeing positive market trend's for the mortgage insurance and financial guaranty businesses for the company.

From the press release, Quint notes: “We are seeing some improvement in the macroeconomic environment and housing market, which in turn has begun to stabilize the performance of our mortgage insurance legacy book,” stated Quint. “While we believe the recovery to a more normal economic environment will be slow, there are many signs that the worst is behind us.”

Highlights from today's presentation at the Macquarie Small- and Mid-Cap Conference include:

• Continued signs of market stabilization as delinquencies for April declined by approximately 1 percent, and for May by approximately 1.6 percent. The company emphasized that while the delinquency trends were clearly positive, there are many other factors affecting Radian’s loss reserve estimate, including default composition, severity and rescission and denial assumptions
  
  
• The gradual shift of market share to the private mortgage insurance industry from FHA mortgage insurance that began in February, and has slowly increased each month through April
  
  
• Radian Guaranty Inc., the company’s mortgage insurance subsidiary, had a risk-to-capital ratio of 16.9:1 at March 31, 2010, among the lowest in the industry at quarter end; the company’s recent capital raise provides additional financial flexibility, including potential capital support for the company’s mortgage insurance business
  
  
• Radian Asset Assurance Inc., the company’s principal financial guaranty subsidiary, continues to provide capital support for Radian Guaranty and expects to pay another ordinary dividend of approximately $70 million this month

Competitors of Radian that may be moving on the news include:

• Genworth Financial Inc. (NYSE: GNW) - up 4.18% to $15.96;
  
  
• MGIC Investment Corp. (NYSE: MTG) - up 8.19% to $9.12; and
  
  
• PMI Group, Inc. (NYSE: PMI) - up 6.41% to $4.48.

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