UPDATE 3-Mortgage insurer Radian surges after Q3 profit

miércoles 5 de noviembre de 2008 18:37 CET

(New throughout, adds conference call details, share movement, background)

* Q3 profit of $0.46/shr Vs estimates of $-2.16/shr

* Says capital adequate to meet current needs

* Views interest in Sherman as capital cushion

* Shares surge as much as 48 percent

By Sweta Singh

BANGALORE, Nov 5 (Reuters) - U.S. mortgage and bond insurer Radian Group Inc (RDN.N: Cotización) posted a quarterly profit, surprising Wall Street which was expecting a huge loss, and said it has enough capital to meet its current needs, sending shares up as much as 48 percent.

Radian views its 29 percent interest in debt purchaser Sherman Financial as a source of additional capital through dividends or potential sale, Chief Executive S.A. Ibrahim said in a conference call with analysts.

However, Ibrahim said that the company may need additional capital if the housing downturn lasts longer than expected adding that it will explore all alternatives for raising capital if needed.   Continuación...