Radian Asset Assurance Reports 4Q Net Loss of $180.3 Million

Radian Asset Assurance Inc. reported a net loss of $180.3 million for the fourth quarter of 2008, down from a net loss of $362.5 million in the fourth quarter of 2007, according to documents it published yesterday.

The bond insurer recorded a net income of $340.5 million for 2008 compared to a net loss of $443.9 million. Parent Radian Group Inc. earlier this year reported a fourth-quarter net loss of $250 million and a net loss $410.6 million for all of 2008.

Radian Asset stopped writing any new financial guaranty business as of the third quarter of last year. Radian Group transferred the company to its mortgage insurer to provide capital support as the bond insurer’s portfolio runs off.

Public finance insurance represents about $49.4 billion — $44.2 billion domestic — of the $100.7 billion of net par outstanding in Radian Asset’s portfolio as of Dec. 31, 2008. That compares to the $62 billion of public finance net par outstanding as of Dec. 31, 2007.

General obligation bonds represent the largest portion of the exposure, with $17 billion in net par outstanding. Issuers in California account for the largest net par outstanding by state, with $5.8 billion in par outstanding.

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