Net new insurance written was $4.4 billion for 1999 as compared to $4.8 billion for 1998, a decrease of 7.8%. For the fourth quarter, net new insurance written decreased 41.5% in 1999 to $892 million as compared to $1.5 billion in 1998. The Company also produced approximately $11 million of new insurance written on seasoned loans in 1999 compared to $225 million in 1998. The decrease in new insurance written was the result of changing business relationships and declines in the mortgage insurance market, especially during the fourth quarter of 1999. Driven by a higher interest rate environment, the total net new mortgage insurance written market decreased 27% in the fourth quarter of 1999 compared to the fourth quarter of 1998, according to industry data. Based upon this information, Triad's national market share of net new insurance written was 2.3% for all of 1999 compared to 2.6% for 1998. Total direct insurance in force reached $13.0 billion at December 31, 1999, compared to $11.3 billion at December 31, 1998, an increase of 15.8%.
The Company's loss ratio (the ratio of incurred losses to earned premiums) was 11.1% for 1999 compared to 13.3% for 1998. The loss ratio was 7.8% for the fourth quarter of 1999 compared to 18.6% for the fourth quarter of 1998. The Company's favorable loss ratio reflects the low level of delinquencies compared to the number of insured loans and the fact that approximately 79% (78% as of December 31, 1998) of the Company's insurance in force was originated in the last 36 months. Management believes, based upon its experience and industry data, that claims incidence for it and other private mortgage insurers is generally highest in the third through sixth years after loan origination. Although the claims experience on new insurance written in previous years has been quite favorable, the Company expects its incurred losses to increase as a greater amount of its insurance in force reaches its anticipated highest claim frequency years. Due to the inherent uncertainty of future premium levels, losses, economic conditions, and other factors that impact earnings, it is impossible to predict with any degree of certainty the impact of such higher claim frequencies on future earnings.
Net new insurance written was $4.8 billion for 1998 as compared to $2.9 billion for 1997, an increase of 66.2%. For the fourth quarter 1998, net new insurance written increased 106.2% to $1.5 billion compared to $740 million in the fourth quarter 1997. The Company also produced approximately $225 million of new insurance written on seasoned loans in 1998 compared to $950 million in 1997. The increase in new insurance written was the result of a strong economy, continued geographic expansion, the penetration of Triad's products in the marketplace to both new and existing customers, and the introduction of new products. According to industry data, Triad's national market share of net new
The Company's loss ratio (the ratio of incurred losses to earned premiums) was 13.3% for 1998 compared to 13.4% for 1997. The loss ratio was 18.6% for the fourth quarter of 1998 compared to 12.1% for the fourth quarter of 1997. The Company's favorable loss ratio reflected the low level of delinquencies compared to the number of insured loans and the fact that approximately 78% of the Company's insurance in force was originated in the past 36 months.