Triad Guaranty Insurance to begin runoff of its book of business

By Lisa Kerner

Charlotte, N.C., June 19 - Triad Guaranty Inc. said its subsidiary Triad Guaranty Insurance Corp. will cease issuing commitments for mortgage insurance effective July 15 and transition its business to runoff.

The company attributed its decision to the termination of Triad's negotiations with Lightyear Capital LLC to form a new mortgage insurance company, according to a Triad news release.

In addition, Triad said Freddie Mac denied the appeal of its subsidiary's suspension as an approved mortgage insurer.

Triad plans to reduce its workforce by about 100 people in the coming weeks.

"The difficult decisions made by our board with respect to these matters were based on a candid and thorough evaluation of our current situation and how to best serve the interests of Triad and its customers and policyholders going forward," Triad president and chief executive officer Mark Tonnesen said in the release.

"We are continuing to work with our financial advisor, Goldman Sachs, to explore whether other strategic alternatives are available, but we are not optimistic that any opportunities will surface," Tonnesen added.

Tonnesen expects that the runoff will allow for the payment of all legitimate policyholder claims.

Triad, through Triad Guaranty Insurance, is a mortgage insurer based in Winston-Salem, N.C.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.