Return to profit at least two years away for mortgage insurers

S&P downgrades four insurers as unemployment levels near 6% and fourth quarter results show further deterioration

Weaker-than-expected results for the fourth quarter of 2007 and the continued deterioration in key variables that influence claims for mortgage insurance have prompted ratings agency Standard & Poor’s (S&P) to downgrade the counter-party credit ratings of four US mortgage insurers. The rating agency also predicts that while individual results will vary most mortgage insurers will not generate an underwriting profit until 2010.