Financial Guaranty Insurance Co. fell more deeply into the hole in the second quarter as the insolvent bond insurer lost more money on contracts linked to mortgage debt and its statutory deficit continued to widen.

The New York-based company, whose parent company filed for bankruptcy protection earlier this month, posted a $16.1 million loss during the second quarter. The losses stemmed from assumptions the insurer will pay more claims on bonds secured by residential mortgages, particularly deals the company insured from 2005 to 2007.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.