"We believe that the recent decline of Radian's stock price is disproportionate to the fundamentals or our business," the company said in a statement.

Radian said it expected to report claims paid in the second quarter of less than $230 million, compared with a previous estimate of $240 million.

Radian attributed that relief in part to its loss-mitigation efforts, such as having its own employees at mortgage companies to reduce the size or number of claims paid and using counseling agencies, such as the Consumer Credit Counseling Service of the Delaware Valley, to work with borrowers.

Defaults on first mortgages that Radian insured increased 8.9 percent in the second quarter, compared with 10 percent in the first quarter and 17.3 percent in the fourth quarter of 2007, the company said.

Since the beginning of June, Radian's shares have tumbled from $6 to less than $1 on credit downgrades, worries about its ability to raise capital, and concerns about its ability to return to profitability.

Shares were valued at $1.02, up 25 cents, yesterday.

Trading in Radian shares was halted Wednesday on the New York Stock Exchange when shares fell below the $1.05 price minimum, but they are trading on NYSE Arce, an electronic exchange. The stock must trade at more than $1.10 a share for a full day on the electronic market to be relisted on the New York exchange.