NEW YORK (Reuters) - Mortgage insurer MGIC Investment Corp <MTG.N> said on Tuesday it expects insurance payouts to generate up to $2 billion of paid losses in 2008, as the performance of mortgages it insures deteriorates.
(Corrects year in first paragraph)
NEW YORK (Reuters) - Mortgage insurer MGIC Investment Corp <MTG.N> said on Tuesday it expects insurance payouts to generate up to $2 billion of paid losses in 2008, as the performance of mortgages it insures deteriorates.
MGIC also estimated incurred losses of $1.3 billion in the fourth quarter of 2007 from insurance payouts and boosting reserves.
MGIC said more loans it insures are becoming delinquent, so that more are ending up as defaults that require the insurer to make payouts to lenders. The average size of claims is also rising.
!ADVERTISEMENT!(Reporting by Dan Wilchins, editing by Richard Chang)
