UPDATE 1-Radian Group posts narrower-than-expected Q3 loss

* Q3 loss $0.86 vs est loss $1.32 * Total direct claims paid down 51 pct * Expects delinquencies to rise in Q4 * Cuts '09 claims view by 15 pct * Shares up 4 pct Nov 4 (Reuters) - Mortgage insurer Radian group Inc reported a narrower-than-expected quarterly loss as fewer homeowners claimed mortgage insurance, and lowered its claims-paid expectations for 2009 by 15 percent. Net loss for the third quarter was $70.5 million, or 86 cents a shares, compared with net income of $36.7 million, or 46 cents a share, in the year ago period. Analysts expected the company to post a loss of $1.32 a share, according to Thomson Reuters I/B/E/S. Total direct claims paid for the quarter fell 51 percent to $135.5 million. The company reduced its claims forecast for 2009 to $940 million from its prior view of $1.1 billion. Provision for losses fell 26 percent to $404.9 million. Chief Executive S.A. Ibrahim said the company was,"actively working on strategies to continue writing new business well into the future." The company expects to have sufficient capital to write mortgage insurance business into 2010, it said. Radian has suffered huge losses in the recent past from backing subprime bonds and mortgages that saw a surge in defaults as credit and housing markets in the United States worsened, impacting economies globally. In October, bigger rival MGIC Investment Corp posted a wider-than-expected quarterly loss as more people failed to repay their home loans. Radian shares were trading up 4 percent at $6.15 before the bell. (Reporting by Sweta Singh in Bangalore; Editing Vikram S Subhedar) Keywords: RADIAN/ ([e-mail] ; within U.S. [phone]; outside U.S. [phone]; Reuters Messaging: [e-mail]) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved.

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