(Reuters) - Triad Guaranty Inc filed for Chapter 11 bankruptcy protection on Monday, court documents showed, after the U.S. mortgage insurer was hurt by higher insured losses on the back of weakness in the jobs and housing market.
Triad, which sells mortgage insurance to residential mortgage lenders, said in a filing withDelaware bankruptcy court that its loss ratios, which measure incurred losses to premiums earned, had been hit by "continued high unemployment in the U.S. and the slow economic recovery in U.S. residential mortgage and housing markets".
Through the Chapter 11 process, Triad said it hoped to maximize the value of the business for the benefit of its creditors.
The chapter 11 filing follows an administrative order issued six months ago by the Illinois Department of Insurance that recommended Triad be placed in rehabilitation.
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