Radian Announces Fourth Quarter and Full Year 2020 Financial Results
Radian Group reported net income of $148.0 million for Q4 2020, down from $161.2 million in Q4 2019, translating to $0.76 per diluted share compared to $0.79 previously. For the entire year, net income was $393.6 million, a decline from $672.3 million in 2019. The company noted a 47.2% increase in New Insurance Written (NIW) to $105.0 billion in 2020. However, provision for losses surged to $483.3 million due to pandemic impacts. Book value per share increased by 11% to $22.36.
- 47.2% increase in New Insurance Written (NIW) to $105.0 billion in 2020.
- Book value per share grew by 11% to $22.36.
- Net income of $148.0 million in Q4 2020.
- Net income declined to $393.6 million in 2020 from $672.3 million in 2019.
- Provision for losses surged to $483.3 million due to pandemic-related defaults.
- Adjusted pretax operating income fell to $432.1 million in 2020 from $854.6 million in 2019.
Radian Group Inc. (NYSE: RDN) today reported net income for the quarter ended December 31, 2020, of
Net income for the full year 2020 was
Key Financial Highlights (dollars in millions, except per-share amounts)
Quarter ended |
Year ended |
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December 31,
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September 30,
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December 31,
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December 31,
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December 31,
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Net income (1) |
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Diluted net income per share |
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Consolidated pretax income |
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Adjusted pretax operating income (2) |
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Adjusted diluted net operating
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Return on equity(1)(4) |
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Adjusted net operating return
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New Insurance Written (NIW) -
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Net premiums earned - mortgage
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New defaults (6) |
14,552 | 20,508 | 10,869 |
|
108,025 | 40,985 |
Provision for losses - mortgage
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Quarter ended |
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December 31,
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September 30,
|
December 31,
|
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Book value per share (7) |
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PMIERs Available Assets (8) |
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PMIERs excess Available Assets (9) |
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Total Holding Company Liquidity (10) |
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Excess Available Resources to Support PMIERs (11) |
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Total investments |
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Primary mortgage insurance in force |
|
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Percentage of primary loans in default (12) |
5.2 % |
5.9 % |
2.0 % |
Mortgage insurance loss reserves |
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(1) |
Net income for the fourth quarter and full year 2020 includes a pretax net gain on investments and other financial instruments of |
|
(2) |
Adjusted results, including adjusted pretax operating income, adjusted diluted net operating income per share, and adjusted net operating return on equity are non-GAAP financial measures. For definitions and reconciliations of these measures to the comparable GAAP measures, see Exhibits F and G. | |
(3) |
Calculated using the company’s statutory tax rate of 21 percent. | |
(4) |
Calculated by dividing annualized net income by average stockholders' equity, based on the average of the beginning and ending balances for each period presented. | |
(5) |
The fourth quarters of 2020 and 2019 include increases to premiums earned of |
|
(6) |
Represents new defaults in the number of loans reported during the period on loans related to primary mortgage insurance policies. | |
(7) |
Accumulated other comprehensive income (loss) impacted book value per share by |
|
(8) |
Represents Radian Guaranty’s Available Assets, calculated in accordance with the Private Mortgage Insurer Eligibility Requirements (PMIERs) financial requirements in effect for each date shown. | |
(9) |
Represents Radian Guaranty’s excess or "cushion" of Available Assets over its Minimum Required Assets, calculated in accordance with the PMIERs financial requirements in effect for each date shown. | |
(10) |
Represents Radian Group's total liquidity, including the |
|
(11) |
Represents the sum of: (1) PMIERs excess Available Assets and (2) Total Holding Company Liquidity, net of the |
|
(12) |
Represents the number of primary loans in default as a percentage of the total number of insured primary loans. |
Adjusted pretax operating income for the quarter ended December 31, 2020, was
Adjusted pretax operating income for the full year 2020, was
Book value as of December 31, 2020 was
“While our quarterly and full-year results for 2020 were impacted by the pandemic environment, during the year we successfully increased book value per share by
Thornberry added, “Our solid results reflect the dedication of our outstanding team, who continue to support our customers and each other in a demanding, high-volume market. I’m pleased with our ability to operate well with strong momentum throughout a challenging year.”
FOURTH QUARTER AND FULL YEAR HIGHLIGHTS
-
NIW was
$29.8 billion for the fourth quarter of 2020, compared to$33.3 billion in the third quarter of 2020 and$20.0 billion in the prior-year quarter. NIW was$105.0 billion for the full year 2020, an increase of 47.2 percent compared to$71.3 billion for the prior year.- NIW for the full year 2020 represented record volume written on a flow basis for the company.
-
Of the
$29.8 billion in NIW in the fourth quarter of 2020, 91 percent was written with monthly and other recurring premiums, compared to 90 percent in the third quarter of 2020, and 82 percent in the fourth quarter of 2019. - Refinances accounted for 35 percent of total NIW in the fourth quarter of 2020, compared to 30 percent in the third quarter of 2020, and 33 percent in the fourth quarter of 2019.
-
Total primary mortgage insurance in force as of December 31, 2020, grew to
$246.1 billion , an increase of 0.3 percent compared to$245.5 billion as of September 30, 2020, and an increase of 2.3 percent compared to$240.6 billion as of December 31, 2019. The year over year increase included a 11.4 percent increase in monthly premium insurance in force and a 20.9 percent decline in single premium insurance in force.- Persistency, which is the percentage of mortgage insurance that remains in force after a twelve- month period, was 61.2 percent for the twelve months ended December 31, 2020, compared to 65.6 percent for the twelve months ended September 30, 2020 and 78.2 percent for the twelve months ended December 31, 2019.
- Annualized persistency for the three months ended December 31, 2020, was 60.4 percent, compared to 60.0 percent for the three months ended September 30, 2020, and 75.0 percent for the three months ended December 31, 2019.
-
Net mortgage insurance premiums earned were
$286.8 million for the quarter ended December 31, 2020, compared to$283.4 million for the quarter ended September 30, 2020, and$298.5 million for the quarter ended December 31, 2019. Net mortgage insurance premiums earned were$1.1 billion for the year ended December 31, 2020, compared to$1.1 billion for the year ended December 31, 2019.-
The fourth quarters of 2020 and 2019, include increases to premiums earned of
$11.3 million and$17.4 million , respectively, related to changes in present value estimates for initial premiums on monthly policies that are deferred and not collected until cancellation. - Mortgage insurance in force portfolio premium yield was 44.6 basis points in the fourth quarter of 2020, or 42.8 basis points excluding the impact of the fourth quarter 2020 premium adjustment described above. This compares to 43.2 basis points in the third quarter of 2020 and 50.0 basis points in the fourth quarter of 2019, or 47.1 basis points excluding the impact of the fourth quarter 2019 premium adjustment described above.
- The impact of single premium cancellations before consideration of reinsurance represented 8.7 basis points of direct premium yield in the fourth quarter of 2020, 10.7 basis points in the third quarter of 2020, and 4.4 basis points in the fourth quarter of 2019.
- Total net mortgage insurance premium yield, which includes the impact of ceded premiums and accrued profit commission, was 46.7 basis points in the fourth quarter of 2020, or 44.8 basis points excluding the impact of the fourth quarter 2020 premium adjustment described above. This compares to 46.6 basis points in the third quarter of 2020, and 50.0 basis points in the fourth quarter of 2019 or 47.1 basis points excluding the impact of the fourth quarter 2019 premium adjustment described above.
- Additional details regarding premiums earned may be found in Exhibit D.
-
The fourth quarters of 2020 and 2019, include increases to premiums earned of
-
The mortgage insurance provision for losses was
$56.3 million in the fourth quarter of 2020, compared to$87.8 million in the third quarter of 2020, and$34.4 million in the fourth quarter of 2019. The mortgage insurance provision for losses was$483.3 million for the year ended December 31, 2020, compared to$131.5 million for the year ended December 31, 2019. The increase for the full year 2020 primarily relates to a significant increase in the number of new default notices as a result of the effects of the COVID-19 pandemic, substantially all due to borrowers in forbearance programs. The number of new defaults increased significantly during the second quarter of 2020, and while new defaults during the fourth quarter remained elevated compared to levels before the pandemic, they decreased 76.9 percent from the second quarter of 2020 and 29.0 percent from the third quarter of 2020.- The number of primary delinquent loans was 55,537 as of December 31, 2020, compared to 62,737 as of September 30, 2020 and 21,266 as of December 31, 2019.
- The primary mortgage insurance delinquency rate was 5.2 percent in the fourth quarter of 2020, compared to 5.9 percent in the third quarter of 2020, and 2.0 percent in the fourth quarter of 2019.
- The loss ratio in the fourth quarter of 2020 was 19.6 percent, compared to 31.0 percent in the third quarter of 2020 and 11.5 percent in the fourth quarter of 2019.
-
Mortgage insurance loss reserves were
$844.1 million as of December 31, 2020, compared to$821.7 million as of September 30, 2020, and$401.3 million as of December 31, 2019. -
Total mortgage insurance claims paid were
$40.6 million in the fourth quarter of 2020, compared to$10.8 million in the third quarter of 2020, and$28.5 million in the fourth quarter of 2019. Excluding the impact of commutations and settlements, claims paid were$8.4 million in the fourth quarter of 2020, compared to$11.1 million in the third quarter of 2020 and$24.8 million in the fourth quarter of 2019. For the full year 2020, total net claims paid were$97.6 million , compared to$132.2 million for the full year 2019.
-
Radian's Real Estate segment offers a broad array of title, valuation, asset management and other real estate services to market participants across the real estate value chain.
-
Total Real Estate segment revenues for the fourth quarter of 2020 were
$23.6 million , compared to$29.8 million for the third quarter of 2020, and$22.0 million for the fourth quarter of 2019. Total revenues for the full year 2020 were$102.4 million , compared to$89.6 million for the same period of 2019. -
Adjusted earnings before interest, income taxes, depreciation and amortization (Real Estate adjusted EBITDA) for the quarter ended December 31, 2020 was a loss of
$7.0 million , compared to a loss of$1.1 million for the quarter ended September 30, 2020, and a loss of$2.4 million for the quarter ended December 31, 2019. Real Estate adjusted EBITDA for the full year 2020 was a loss of$7.6 million , compared to a loss of$5.5 million for the prior year period. Additional details regarding the non-GAAP measure Real Estate adjusted EBITDA may be found in Exhibits F and G. - The decrease in Real Estate adjusted EBITDA in the fourth quarter and full year 2020, compared to the fourth quarter and full year 2019, was primarily related to the negative impact of the COVID-19 pandemic on the operating environment for certain business lines and the continued strategic investment focused on our title and digital real estate businesses.
- Due to certain changes in the composition of our reportable segments made in the fourth quarter of 2020, our results for Real Estate and All Other have been restated for all prior periods to reflect these changes. See Exhibit E for more details on these reclassifications.
-
Total Real Estate segment revenues for the fourth quarter of 2020 were
-
Other operating expenses were
$81.6 million in the fourth quarter of 2020, compared to$69.4 million in the third quarter of 2020, and$80.9 million in the fourth quarter of 2019. Other operating expenses were$280.7 million for the year ended December 31, 2020, compared to$306.1 million for the year ended December 31, 2019.-
The increase in the fourth quarter of 2020 compared to the third quarter of 2020 was primarily related to a
$6.5 million increase in non-operating items and adjustments to share-based incentive compensation. The increase in the fourth quarter of 2020 compared to the fourth quarter of 2019 was driven primarily by an increase in non-operating items, which was partially offset by lower incentive compensation expense. - The decrease for the full year 2020, compared to the full year 2019, was driven primarily by an increase in ceding commissions, lower professional services costs, and lower incentive compensation expense.
-
The increase in the fourth quarter of 2020 compared to the third quarter of 2020 was primarily related to a
CAPITAL AND LIQUIDITY UPDATE
-
At December 31, 2020, Excess Available Resources to Support Private Mortgage Insurer Eligibility Requirements (PMIERs)were
$2.7 billion or 80 percent above Radian Guaranty's Minimum Required Assets of$3.4 billion .
Radian Group
-
As of December 31, 2020, Radian Group maintained
$1.1 billion of available liquidity. Total liquidity, which includes the company’s$267.5 million unsecured revolving credit facility, was$1.4 billion as of December 31, 2020. -
For the full year 2020, the company repurchased 11.0 million shares of Radian Group common stock at a total cost of
$226.3 million , including commissions. In March 2020, the company temporarily suspended purchases under its share repurchase program by canceling its then current 10b5-1 plan. The company may initiate a new 10b5-1 plan at its discretion in the future, during an open trading window and in accordance with SEC rules. As of December 31, 2020, purchase authority of up to$198.9 million remained available under this program. The current share repurchase authorization expires on August 31, 2021. -
On November 11, 2020, Radian Group's board of directors authorized a regular quarterly dividend on its common stock in the amount of
$0.12 5 per share and the dividend was paid on December 4, 2020. On February 10, 2021 Radian Group's board of directors authorized a regular quarterly dividend on its common stock in the amount of$0.12 5 per share and the dividend will be paid on March 4, 2021. -
For the full year 2020, Radian paid
$97.5 million in dividends on its common stock.
Radian Guaranty
-
As previously announced, in October 2020, Radian Guaranty entered into its fourth fully collateralized mortgage insurance-linked-note (ILN) reinsurance transaction, in which the company obtained
$390.3 million of credit risk protection from Eagle Re 2020-2 Ltd. (Eagle Re) through the issuance by Eagle Re of ILNs to eligible third-party capital markets investors in an unregistered private offering. Eagle Re is a special purpose insurer domiciled in Bermuda and is not a subsidiary or affiliate of Radian Guaranty. Radian Guaranty's related PMIERs credit under this ILN transaction remains subject to GSE approval. -
At December 31, 2020, Radian Guaranty’s Available Assets under PMIERs totaled approximately
$4.7 billion , resulting in excess available resources or a “cushion” of$1.3 billion , or 40 percent, over its Minimum Required Assets of$3.4 billion . -
As of December 31, 2020, 66 percent of Radian Guaranty's primary mortgage insurance risk in force is subject to some form of risk distribution, providing a
$1.4 billion reduction of Minimum Required Assets under PMIERs.
CONFERENCE CALL
Radian will discuss fourth quarter and year-end 2020 financial results in a conference call tomorrow, Thursday, February 25, 2021, at 10:00 a.m. Eastern standard time. The conference call will be broadcast live over the Internet at https://radian.com/who-we-are/for-investors/webcasts or at www.radian.com. The call may also be accessed by dialing 888.771.4371 inside the U.S., or 847.585.4405 for international callers, using passcode 50081023 by referencing Radian.
A digital replay of the webcast will be available on the Radian website approximately two hours after the live broadcast ends for a period of two weeks at https://radian.com/who-we-are/for-investors/webcasts using passcode 50081023.
In addition to the information provided in the company's earnings news release, other statistical and financial information, which is expected to be referred to during the conference call, will be available on Radian's website at www.radian.com, under Investors.
NON-GAAP FINANCIAL MEASURES
Radian believes that adjusted pretax operating income, adjusted diluted net operating income per share and adjusted net operating return on equity (non-GAAP measures) facilitate evaluation of the company’s fundamental financial performance and provide relevant and meaningful information to investors about the ongoing operating results of the company. On a consolidated basis, these measures are not recognized in accordance with accounting principles generally accepted in the United States of America (GAAP) and should not be considered in isolation or viewed as substitutes for GAAP measures of performance. The measures described below have been established in order to increase transparency for the purpose of evaluating the company’s operating trends and enabling more meaningful comparisons with Radian’s competitors.
Adjusted pretax operating income (loss) is defined as GAAP consolidated pretax income (loss) excluding the effects of: (i) net gains (losses) on investments and other financial instruments; (ii) loss on extinguishment of debt; (iii) amortization and impairment of goodwill and other acquired intangible assets; and (iv) impairment of other long-lived assets and other non-operating items, such as gains (losses) from the sale of lines of business and acquisition-related income and expenses. Adjusted diluted net operating income (loss) per share is calculated by dividing (i) adjusted pretax operating income (loss) attributable to common stockholders, net of taxes computed using the Company’s statutory tax rate, by (ii) the sum of the weighted average number of common shares outstanding and all dilutive potential common shares outstanding. Adjusted net operating return on equity is calculated by dividing annualized adjusted pretax operating income (loss), net of taxes computed using the Company's statutory tax rate, by average stockholders' equity, based on the average of the beginning and ending balances for each period presented.
In addition to the above non-GAAP measures for the consolidated company, we also have presented as supplemental information a non-GAAP measure for our Real Estate segment, representing a measure of earnings before interest, income tax provision (benefit), depreciation and amortization ("EBITDA"). We calculate Real Estate adjusted EBITDA by using adjusted pretax operating income as described above, further adjusted to remove the impact of depreciation and corporate allocations for interest and operating expenses. In addition, Real Estate adjusted EBITDA margin is calculated by dividing Real Estate adjusted EBITDA by GAAP total revenue for the Real Estate segment. Real Estate adjusted EBITDA and Real Estate adjusted EBITDA margin are used to facilitate comparisons with other services companies, since they are widely accepted measures of performance in the services industry and are used internally as supplemental measures to evaluate the performance of our Real Estate segment.
See Exhibit F or Radian’s website for a description of these items, as well as Exhibit G for reconciliations to the most comparable consolidated GAAP measures.
ABOUT RADIAN
Radian Group Inc. (NYSE: RDN) is ensuring the American dream of homeownership responsibly and sustainably through products and services that include industry-leading mortgage insurance and a comprehensive suite of mortgage, risk, title, valuation, asset management and other real estate services. We are powered by technology, informed by data and driven to deliver new and better ways to transact and manage risk. Visit www.radian.com to learn more about how Radian is shaping the future of mortgage and real estate services.
FINANCIAL RESULTS AND SUPPLEMENTAL INFORMATION CONTENTS (Unaudited)
| Exhibit A: | Condensed Consolidated Statements of Operations Trend Schedule | |
| Exhibit B: | Net Income Per Share Trend Schedule | |
| Exhibit C: | Condensed Consolidated Balance Sheets | |
| Exhibit D: | Net Premiums Earned | |
| Exhibit E: | Segment Information | |
| Exhibit F: | Definition of Consolidated Non-GAAP Financial Measures | |
| Exhibit G: | Consolidated Non-GAAP Financial Measure Reconciliations | |
| Exhibit H: | Mortgage Supplemental Information | |
| New Insurance Written | ||
| Exhibit I: | Mortgage Supplemental Information | |
| Primary Insurance in Force and Risk in Force | ||
| Exhibit J: | Mortgage Supplemental Information | |
| Claims and Reserves | ||
| Exhibit K: | Mortgage Supplemental Information | |
| Default Statistics | ||
| Exhibit L: | Mortgage Supplemental Information | |
| Reinsurance Programs |
Radian Group Inc. and Subsidiaries |
||||||||||||||||||||
Condensed Consolidated Statements of Operations Trend Schedule |
||||||||||||||||||||
Exhibit A (page 1 of 2) |
||||||||||||||||||||
|
|
|
||||||||||||||||||
|
2020 |
|
2019 |
|||||||||||||||||
(In thousands, except per-share amounts) |
Qtr 4 |
|
|
|
Qtr 3 |
|
Qtr 2 |
|
Qtr 1 |
|
Qtr 4 |
|||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|||||||||||
Net premiums earned |
$ |
302,140 |
(1 |
) |
$ |
286,471 |
|
$ |
249,295 |
|
|
$ |
277,415 |
|
|
$ |
301,486 |
|||
Services revenue |
|
11,440 |
(1 |
) |
|
33,943 |
|
|
28,075 |
|
|
|
31,927 |
|
|
|
40,031 |
|||
Net investment income |
|
38,115 |
|
|
36,255 |
|
|
38,723 |
|
|
|
40,944 |
|
|
|
41,432 |
||||
Net gains (losses) on investments and other financial instruments |
|
17,376 |
|
|
17,652 |
|
|
47,276 |
|
|
|
(22,027 |
) |
|
|
4,257 |
||||
Other income |
|
790 |
|
|
913 |
|
|
1,072 |
|
|
|
822 |
|
|
|
818 |
||||
Total revenues |
|
369,861 |
|
|
375,234 |
|
|
364,441 |
|
|
|
329,081 |
|
|
|
388,024 |
||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Expenses: |
|
|
|
|
|
|
|
|
|
|||||||||||
Provision for losses |
|
56,664 |
|
|
88,084 |
|
|
304,418 |
|
|
|
35,951 |
|
|
|
34,619 |
||||
Policy acquisition costs |
|
7,395 |
|
|
10,166 |
|
|
6,015 |
|
|
|
7,413 |
|
|
|
6,783 |
||||
Cost of services |
|
21,600 |
|
|
24,353 |
|
|
17,972 |
|
|
|
22,141 |
|
|
|
27,278 |
||||
Other operating expenses |
|
81,641 |
|
|
69,377 |
|
|
60,582 |
|
|
|
69,110 |
|
|
|
80,894 |
||||
Interest expense |
|
21,169 |
|
|
21,088 |
|
|
16,699 |
|
|
|
12,194 |
|
|
|
12,160 |
||||
Impairment of goodwill |
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
4,828 |
||||
Amortization and impairment of other acquired intangible assets |
|
2,225 |
|
|
961 |
|
|
979 |
|
|
|
979 |
|
|
|
15,823 |
||||
Total expenses |
|
190,694 |
|
|
214,029 |
|
|
406,665 |
|
|
|
147,788 |
|
|
|
182,385 |
||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Pretax income (loss) |
|
179,167 |
|
|
161,205 |
|
|
(42,224 |
) |
|
|
181,293 |
|
|
|
205,639 |
||||
Income tax provision (benefit) |
|
31,154 |
|
|
26,102 |
|
|
(12,273 |
) |
|
|
40,832 |
|
|
|
44,455 |
||||
Net income (loss) |
$ |
148,013 |
|
$ |
135,103 |
|
$ |
(29,951 |
) |
|
$ |
140,461 |
|
|
$ |
161,184 |
||||
Diluted net income (loss) per share |
$ |
0.76 |
|
$ |
0.70 |
|
$ |
(0.15 |
) |
|
$ |
0.70 |
|
|
$ |
0.79 |
||||
(1) |
Includes the impact of a line item reclassification recorded in the fourth quarter to correct earlier periods in 2020, which increased net premiums earned and decreased services revenue by |
Radian Group Inc. and Subsidiaries |
||||||
Condensed Consolidated Statements of Operations |
||||||
Exhibit A (page 2 of 2) |
||||||
|
Year Ended
|
|||||
(In thousands, except per-share amounts) |
2020 |
|
2019 |
|||
|
|
|
|
|||
Revenues: |
|
|
|
|||
Net premiums earned - insurance |
$ |
1,115,321 |
|
$ |
1,145,349 |
|
Services revenue |
|
105,385 |
|
|
154,596 |
|
Net investment income |
|
154,037 |
|
|
171,796 |
|
Net gains (losses) on investments and other financial instruments |
|
60,277 |
|
|
51,719 |
|
Other income |
|
3,597 |
|
|
3,495 |
|
Total revenues |
|
1,438,617 |
|
|
1,526,955 |
|
|
|
|
|
|||
Expenses: |
|
|
|
|||
Provision for losses |
|
485,117 |
|
|
132,031 |
|
Policy acquisition costs |
|
30,989 |
|
|
25,314 |
|
Cost of services |
|
86,066 |
|
|
108,324 |
|
Other operating expenses |
|
280,710 |
|
|
306,129 |
|
Interest expense |
|
71,150 |
|
|
56,310 |
|
Loss on extinguishment of debt |
|
— |
|
|
22,738 |
|
Impairment of goodwill |
|
— |
|
|
4,828 |
|
Amortization and impairment of other intangible assets |
|
5,144 |
|
|
22,288 |
|
Total expenses |
|
959,176 |
|
|
677,962 |
|
|
|
|
|
|||
Pretax income |
|
479,441 |
|
|
848,993 |
|
Income tax provision |
|
85,815 |
|
|
176,684 |
|
Net income |
$ |
393,626 |
|
$ |
672,309 |
|
Diluted net income per share |
$ |
2.00 |
|
$ |
3.20 |
|
Radian Group Inc. and Subsidiaries |
||||||||||||||||
Net Income Per Share Trend Schedule |
||||||||||||||||
Exhibit B |
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| |
||||||||||||||||
The calculation of basic and diluted net income (loss) per share was as follows: |
||||||||||||||||
|
2020 |
|
2019 |
|||||||||||||
(In thousands, except per-share amounts) |
Qtr 4 |
|
Qtr 3 |
|
Qtr 2 |
|
Qtr 1 |
|
Qtr 4 |
|||||||
Net income (loss) —basic and diluted |
$ |
148,013 |
|
$ |
135,103 |
|
$ |
(29,951 |
) |
|
$ |
140,461 |
|
$ |
161,184 |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Average common shares outstanding—basic (1) |
|
193,248 |
|
|
193,176 |
|
|
193,299 |
|
|
|
200,161 |
|
|
203,431 |
|
Dilutive effect of stock-based compensation arrangements (2) |
|
1,415 |
|
|
980 |
|
|
— |
|
|
|
1,658 |
|
|
1,734 |
|
Adjusted average common shares outstanding—diluted |
|
194,663 |
|
|
194,156 |
|
|
193,299 |
|
|
|
201,819 |
|
|
205,165 |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Basic net income (loss) per share |
$ |
0.77 |
|
$ |
0.70 |
|
$ |
(0.15 |
) |
|
$ |
0.70 |
|
$ |
0.79 |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Diluted net income (loss) per share |
$ |
0.76 |
|
$ |
0.70 |
|
$ |
(0.15 |
) |
|
$ |
0.70 |
|
$ |
0.79 |
|
(1) |
Includes the impact of fully vested shares under our share-based compensation arrangements. |
(2) |
There were no dilutive shares for the three months ended June 30, 2020, as a result of our net loss for the period. The following number of shares of our common stock equivalents issued under our share-based compensation arrangements were not included in the calculation of diluted net income (loss) per share because they were anti-dilutive: |
|
2020 |
|
2019 |
||||||||||||
(In thousands) |
Qtr 4 |
|
Qtr 3 |
|
Qtr 2 |
|
Qtr 1 |
|
Qtr 4 |
||||||
Shares of common stock equivalents |
324 |
|
710 |
|
2,295 |
|
132 |
|
— |
||||||
|
Year Ended December 31, |
|||||||
(In thousands, except per-share amounts) |
2020 |
|
2019 |
|||||
Net income - basic and diluted |
$ |
393,626 |
|
|
$ |
672,309 |
|
|
|
|
|
|
|||||
Average common shares outstanding—basic (1) |
195,443 |
|
|
208,773 |
|
|||
Dilutive effect of stock-based compensation arrangements (2) |
1,199 |
|
|
1,567 |
|
|||
Adjusted average common shares outstanding—diluted |
196,642 |
|
|
210,340 |
|
|||
|
|
|
|
|||||
Basic net income per share |
$ |
2.01 |
|
|
$ |
3.22 |
|
|
|
|
|
|
|||||
Diluted net income per share |
$ |
2.00 |
|
|
$ |
3.20 |
|
|
(1) |
Includes the impact of fully vested shares under our share-based compensation arrangements. |
(2) |
The following number of shares of our common stock equivalents issued under our share-based compensation arrangements were not included in the calculation of diluted net income per share because they were anti-dilutive: |
|
Year Ended December 31, |
|||||
(In thousands) |
2020 |
|
2019 |
|||
Shares of common stock equivalents |
865 |
|
221 |
|||
Radian Group Inc. and Subsidiaries |
||||||||||||||||||||
Condensed Consolidated Balance Sheets |
||||||||||||||||||||
Exhibit C |
||||||||||||||||||||
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|||||||||||
(In thousands, except per-share amounts) |
2020 |
|
2020 |
|
2020 |
|
2020 |
|
2019 |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Assets: |
|
|
|
|
|
|
|
|
|
|||||||||||
Investments |
$ |
6,788,442 |
|
|
$ |
6,584,577 |
|
|
$ |
6,431,350 |
|
|
$ |
5,608,627 |
|
|
$ |
5,658,747 |
|
|
Cash |
87,915 |
|
|
82,020 |
|
|
68,387 |
|
|
54,108 |
|
|
92,729 |
|
||||||
Restricted cash |
6,231 |
|
|
4,424 |
|
|
16,279 |
|
|
7,817 |
|
|
3,545 |
|
||||||
Accrued investment income |
34,047 |
|
|
36,093 |
|
|
34,179 |
|
|
32,559 |
|
|
32,333 |
|
||||||
Accounts and notes receivable |
121,294 |
|
|
145,164 |
|
|
110,722 |
|
|
123,381 |
|
|
93,630 |
|
||||||
Reinsurance recoverables |
73,202 |
|
|
66,515 |
|
|
56,852 |
|
|
17,722 |
|
|
16,976 |
|
||||||
Deferred policy acquisition costs |
18,305 |
|
|
17,926 |
|
|
21,774 |
|
|
20,855 |
|
|
20,759 |
|
||||||
Property and equipment, net |
80,457 |
|
|
88,717 |
|
|
89,143 |
|
|
87,915 |
|
|
87,879 |
|
||||||
Prepaid reinsurance premium |
267,638 |
|
|
295,062 |
|
|
330,476 |
|
|
356,104 |
|
|
363,856 |
|
||||||
Goodwill and other acquired intangible assets, net |
23,043 |
|
|
25,268 |
|
|
26,229 |
|
|
27,208 |
|
|
28,187 |
|
||||||
Other assets |
447,447 |
|
|
431,579 |
|
|
383,918 |
|
|
354,136 |
|
|
409,672 |
|
||||||
Total assets |
$ |
7,948,021 |
|
|
$ |
7,777,345 |
|
|
$ |
7,569,309 |
|
|
$ |
6,690,432 |
|
|
$ |
6,808,313 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Liabilities and stockholders’ equity: |
|
|
|
|
|
|
|
|
|
|||||||||||
Unearned premiums |
$ |
448,791 |
|
|
$ |
501,787 |
|
|
$ |
561,280 |
|
|
$ |
605,045 |
|
|
$ |
626,822 |
|
|
Reserve for losses and loss adjustment expense |
848,413 |
|
|
825,792 |
|
|
738,885 |
|
|
418,202 |
|
|
404,765 |
|
||||||
Senior notes |
1,405,674 |
|
|
1,404,759 |
|
|
1,403,857 |
|
|
887,584 |
|
|
887,110 |
|
||||||
FHLB advances |
176,483 |
|
|
141,058 |
|
|
175,122 |
|
|
173,760 |
|
|
134,875 |
|
||||||
Reinsurance funds withheld |
278,555 |
|
|
318,773 |
|
|
312,350 |
|
|
302,551 |
|
|
291,829 |
|
||||||
Net deferred tax liability |
213,897 |
|
|
166,136 |
|
|
126,883 |
|||||||||||||
FAQ
What are Radian Group's earnings for Q4 2020?
How did Radian's annual income for 2020 compare to 2019?
What was the New Insurance Written (NIW) for Radian in 2020?
What is Radian's book value per share as of December 31, 2020?
What was the provision for losses reported by Radian in 2020?
