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Radian Announces Plans to Return Additional Capital to Stockholders
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Rhea-AI Summary
Radian Group Inc. (NYSE: RDN) announced a 43% increase in its quarterly dividend, raising it to $0.20 per share, payable on March 3, 2022. This increase shows strong financial health and capital flexibility. Additionally, Radian authorized a $400 million share repurchase program, expiring in February 2024. The company recently received approval for a $500 million return of capital from Radian Guaranty. The financial results for Q4 and year-end 2021 will be discussed in a call on February 23, 2022.
Positive
Quarterly dividend increased by 43% to $0.20 per share.
Authorized $400 million share repurchase program, indicating confidence in company value.
Approval received for $500 million return of capital, enhancing liquidity.
Negative
None.
Increases quarterly dividend by 43% to $0.20 per share and authorizes $400 million share repurchase program
WAYNE, Pa.--(BUSINESS WIRE)--
Radian Group Inc. (NYSE: RDN) announced today its plans to return capital to stockholders through an increased quarterly dividend and a new share repurchase authorization. These strategic capital actions are based on the company’s strong financial position and capital flexibility.
The company’s Board of Directors today approved the following:
A quarterly dividend of $0.20 per share, representing an increase of 43 percent from the previous quarterly dividend of $0.14 per share paid on December 3, 2021. The dividend is payable on March 3, 2022, to stockholders of record as of February 21, 2022.
A $400 million share repurchase authorization. The shares may be purchased in the open market or in privately negotiated transactions. Radian plans to utilize a value-based Rule 10b5-1 plan to execute the new authorization which, once implemented, would permit the company to purchase shares, at pre-determined price targets, when it may otherwise be precluded from doing so. The authorization will expire in February 2024.
Chief Executive Officer Rick Thornberry commented, “I am pleased that Radian’s strong financial position and capital flexibility enable us to return capital to stockholders through an increased dividend and share repurchases, while also positioning us to sustain growth in our businesses.”
On February 8, the Pennsylvania Insurance Department approved a $500 million return of capital from Radian Guaranty to Radian Group, which the company expects to be paid from Radian Guaranty’s gross paid in and contributed statutory surplus on or before February 11, 2022.
2021 Financial Results Conference Call
Radian will discuss fourth quarter and year-end 2021 financial results in a conference call on Wednesday, February 23, 2022, 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.
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.
Forward-Looking Statements
All statements in this press release that address events, developments or results that we expect or anticipate may occur in the future are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Exchange Act and the U.S. Private Securities Litigation Reform Act of 1995. In most cases, forward-looking statements may be identified by words such as “anticipate,” “may,” “will,” “could,” “should,” “would,” “expect,” “intend,” “plan,” “goal,” “contemplate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “seek,” “strategy,” “future,” “likely” or the negative or other variations on these words and other similar expressions. These statements, which may include, without limitation, projections regarding our future performance and financial condition, are made on the basis of management’s current views and assumptions with respect to future events. Any forward-looking statement is not a guarantee of future performance and actual results could differ materially from those contained in the forward-looking statement. These statements speak only as of the date they were made, and we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. We operate in a changing environment where new risks emerge from time to time and it is not possible for us to predict all risks that may affect us. Our ability and willingness to declare future dividends and to repurchase shares under the proposed repurchase program, as well as our ability to sustain growth in our businesses, are subject to risks and uncertainties including, without limitation: our ability to successfully execute and implement our capital plans and to maintain sufficient holding company liquidity to meet our liquidity needs; our ability to successfully execute and implement our business plans and strategies; our ability to maintain an adequate level of capital in our insurance subsidiaries to satisfy existing and future regulatory requirements; and changes in economic, market and political conditions that, among other things, may affect our capital resources, liquidity and financial resources. For more information regarding these risks and uncertainties as well as other additional risks that we face, you should refer to the Risk Factors detailed in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2021, and subsequent reports filed from time to time with the U.S. Securities and Exchange Commission.
