Most Mortgage Insurers Do Well Despite Portfolio Persistency Problem.

While the nation's largest mortgage insurer reported a decline in net income between 2001 and 2002, its other three publicly traded competitors all said their net income increased during that time.

While refinancing has made it difficult to keep policies on the books, new business has been rising.

Philadelphia's Radian Group Inc. reported net income of $427.2 million or $4.41 per share, up 19% from the $360.4 million or $3.88 per share earned in 2001.

Chairman and chief executive Frank Filipps said the company's diversified business platform was responsible for the increase.

"Our mortgage insurance operations were challenged by an uncertain economic climate in 2002. But Radian's balanced business model allowed us to take advantage of an outstanding environment for our financial guaranty business - which grew 66% in net income over the year - while maintaining our stringent ROE criteria and disciplined approach to writing new business," he said.

Fourth-quarter earnings at Radian increased 12%, from $96.1 million or $1 for last three months of 2001 to $107.8 million or $1.14 per share in the most recent period.

The PMI Group Inc., San Francisco, had net income of $346.2 million or $3.79 per share vs. $307.2 million or $3.39 per share one year ago.