EXHIBIT 99.1

FOR IMMEDIATE RELEASE


NEWS RELEASE
Triad Guaranty Inc.
Nasdaq Symbol: TGIC
www.triadguaranty.com
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Contact: Eric Dana
         Senior Vice President, Chief Financial Officer

         800-451-4872, ext. 1105
         edana@tgic.com

                          TRIAD GUARANTY INC. ANNOUNCES

               CLOSING OF COLLATERAL INVESTMENT CORP. TRANSACTION



WINSTON-SALEM,  NC, November 2, 2005 - Triad Guaranty Inc. (Nasdaq:  TGIC) today
announced  that  the  transaction  with  Collateral  Investment  Corp.  ("CIC"),
previously announced on May 18, 2005, closed yesterday. In the transaction, CIC,
which  holds  approximately  17.4% of the  outstanding  common  stock of  Triad,
transferred all of its 2,573,551  shares of Triad common stock to the Company in
exchange for 2,528,514 newly issued shares of Triad common stock, representing a
discount of  approximately  1.75% to the  Company.  CIC has  announced  plans to
liquidate and  distribute  the newly issued Triad  shares,  which are subject to
transfer restrictions, to its shareholders.

Triad  Guaranty  Inc.'s  wholly  owned  subsidiary,   Triad  Guaranty  Insurance
Corporation,  is  a  nationwide  mortgage  insurer  providing  private  mortgage
insurance (MI) to residential  mortgage lenders.  Private MI makes homeownership
available  to buyers  with  equity of less  than  20%,  facilitates  the sale of
mortgage loans in the secondary market and protects lenders from default-related
expenses.  For  more  information,  please  visit  the  company's  web  site  at
http://www.triadguaranty.com.
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