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Radian Announces Third Quarter 2024 Financial Results

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Radian Group Inc. (RDN) reported net income of $152 million, or $0.99 per diluted share, for Q3 2024. The company achieved a return on equity of 13.2% and grew book value per share by 18% year-over-year to $31.37. Key highlights include $13.5 billion in New Insurance Written and primary mortgage insurance in force reaching $274.7 billion. The company returned $86 million to stockholders through dividends and share repurchases, while reducing its holding company debt-to-capital ratio to 18.5% following retirement of $450 million senior notes. Radian maintains strong liquidity with $844 million available at the holding company and $2.1 billion in PMIERs excess Available Assets.

Radian Group Inc. (RDN) ha riportato un reddito netto di 152 milioni di dollari, pari a 0,99 dollari per azione diluita, per il terzo trimestre del 2024. L'azienda ha raggiunto un ritorno sul patrimonio netto del 13,2% e ha aumentato il valore contabile per azione del 18% rispetto all'anno precedente, portandolo a 31,37 dollari. I punti salienti includono 13,5 miliardi di dollari in Nuove Assicurazioni Sottoscritte e un'assicurazione mutui primaria in vigore che ha raggiunto i 274,7 miliardi di dollari. L'azienda ha restituito 86 milioni di dollari agli azionisti tramite dividendi e riacquisti di azioni, riducendo il proprio rapporto debito-capitale della holding al 18,5% dopo il rimborso di 450 milioni di dollari di note senior. Radian mantiene una forte liquidità con 844 milioni di dollari disponibili presso la holding e 2,1 miliardi di dollari in attivi disponibili NETS in eccesso.

Radian Group Inc. (RDN) informó sobre un ingreso neto de 152 millones de dólares, o 0,99 dólares por acción diluida, para el tercer trimestre de 2024. La compañía logró un rendimiento sobre el capital de 13,2% y aumentó el valor contable por acción en un 18% interanual, alcanzando los 31,37 dólares. Los puntos destacados incluyen 13,5 mil millones de dólares en Nuevos Seguros Suscritos y el seguro hipotecario primario en vigor que alcanzó los 274,7 mil millones de dólares. La empresa devolvió 86 millones de dólares a los accionistas a través de dividendos y recompra de acciones, mientras que redujo su relación deuda-capital de la compañía holding al 18,5% tras el retiro de 450 millones de dólares en notas senior. Radian mantiene una sólida liquidez con 844 millones de dólares disponibles en la holding y 2,1 mil millones de dólares en Activos Disponibles de exceso PMIER.

Radian Group Inc. (RDN)는 2024년 3분기 동안 순이익 1억 5200만 달러, 즉 희석화 주당 0.99달러를 보고했습니다. 이 회사는 자기자본이익률 13.2%를 달성하였고, 주당 장부가치는 1년 전 대비 18% 증가하여 31.37달러에 달했습니다. 주요 사항으로는 135억 달러의 신규 보험 계약을 포함하며, 주택 담보 보험이 2747억 달러에 이르렀습니다. 이 회사는 배당금과 자사주 매입을 통해 주주에게 8600만 달러를 환급하였으며, 4억 5000만 달러의 선순위 채권을 상환한 후 모회사 부채 대비 자본 비율을 18.5%로 낮췄습니다. Radian은 모회사에서 8억 4400만 달러, PMIERs 초과 가용 자산에서 21억 달러의 강력한 유동성을 유지하고 있습니다.

Radian Group Inc. (RDN) a rapporté un bénéfice net de 152 millions de dollars, soit 0,99 dollar par action diluée, pour le troisième trimestre 2024. L'entreprise a atteint un rendement des capitaux propres de 13,2% et a augmenté la valeur comptable par action de 18% d'une année sur l'autre, atteignant 31,37 dollars. Les faits saillants incluent 13,5 milliards de dollars en nouvelles assurances souscrites et l'assurance hypothécaire principale en vigueur atteignant 274,7 milliards de dollars. L'entreprise a restitué 86 millions de dollars aux actionnaires par le biais de dividendes et de rachats d'actions, tout en réduisant son ratio de dette sur capital de la société holding à 18,5% après le remboursement de 450 millions de dollars d'obligations senior. Radian maintient une forte liquidité avec 844 millions de dollars disponibles au niveau de la holding et 2,1 milliards de dollars en actifs disponibles excessifs dans les PMIER.

Radian Group Inc. (RDN) berichtete über netto Einkommen von 152 Millionen Dollar, oder 0,99 Dollar pro verwässerter Aktie, für das dritte Quartal 2024. Das Unternehmen erzielte eine Eigenkapitalrendite von 13,2% und steigerte den Buchwert pro Aktie um 18% im Vergleich zum Vorjahr auf 31,37 Dollar. Zu den wichtigsten Highlights gehören 13,5 Milliarden Dollar in neuen Versicherungen und die vorhandene primäre Hypothekenversicherung erreichte 274,7 Milliarden Dollar. Das Unternehmen gab 86 Millionen Dollar an die Aktionäre in Form von Dividenden und Aktienrückkäufen zurück und reduzierte das Verhältnis von Schulden zu Eigenkapital der Holdinggesellschaft auf 18,5%, nachdem es 450 Millionen Dollar an vorrangigen Anleihen zurückgezahlt hatte. Radian verfügt über eine starke Liquidität mit 844 Millionen Dollar, die in der Holdinggesellschaft verfügbar sind, und 2,1 Milliarden Dollar an überschüssigen verfügbaren Vermögenswerten in PMIERs.

Positive
  • 18% year-over-year growth in book value per share to $31.37
  • Strong net income of $152 million in Q3 2024
  • Primary mortgage insurance in force grew to $274.7 billion
  • Reduction in holding company debt-to-capital ratio to 18.5%
  • Maintained strong PMIERs excess Available Assets of $2.1 billion
Negative
  • Slight decrease in net income from $157 million in Q3 2023 to $152 million in Q3 2024
  • Decline in return on equity from 15.0% in Q3 2023 to 13.2% in Q3 2024
  • Increase in delinquent loans to 22,350 from 20,406 year-over-year

Insights

The Q3 2024 results demonstrate solid financial performance with several positive indicators. $152 million net income and $199 million adjusted pretax operating income show stable earnings. Key strengths include 18% year-over-year book value growth to $31.37 per share and strong capital return of $86 million to stockholders.

Notable improvements in the balance sheet include reduction of holding company debt-to-capital ratio to 18.5% and maintaining robust liquidity of $844 million. The $2.1 billion PMIERs excess Available Assets provides significant financial flexibility.

The mortgage insurance portfolio remains healthy with $274.7 billion insurance in force and stable persistency at 84%. While delinquencies increased slightly to 2.25%, this aligns with seasonal patterns and portfolio growth rather than credit deterioration.

— Third quarter net income of $152 million, or $0.99 per diluted share —

— Return on equity of 13.2%

— Book value per share growth of 18% year-over-year to $31.37

— Returned $86 million of capital to stockholders through dividends and share repurchases —

— Holding company debt-to-capital ratio reduced to 18.5% following retirement of $450 million senior notes —

$185 million ordinary dividend paid from Radian Guaranty to holding company during the third quarter —

Available holding company liquidity of $844 million and PMIERs excess Available Assets of $2.1 billion

WAYNE, Pa.--(BUSINESS WIRE)-- Radian Group Inc. (NYSE: RDN) today reported net income for the quarter ended September 30, 2024, of $152 million, or $0.99 per diluted share. This compares with net income for the quarter ended September 30, 2023, of $157 million, or $0.98 per diluted share.

Adjusted pretax operating income for the quarter ended September 30, 2024, was $199 million, or $1.03 per diluted share. This compares with adjusted pretax operating income for the quarter ended September 30, 2023, of $210 million, or $1.04 per diluted share.

Key Financial Highlights

 

Quarter ended

($ in millions, except per-share amounts)

 

September 30,
2024

 

June 30,
2024

 

September 30,
2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

$334

 

$321

 

$313

Net income

 

$152

 

$152

 

$157

Diluted net income per share

 

$0.99

 

$0.98

 

$0.98

Consolidated pretax income

 

$195

 

$188

 

$201

Adjusted pretax operating income (1)

 

$199

 

$193

 

$210

Adjusted diluted net operating income per share (1) (2)

 

$1.03

 

$0.99

 

$1.04

Return on equity (3)

 

13.2%

 

13.6%

 

15.0%

Adjusted net operating return on equity (1) (2)

 

13.7%

 

13.6%

 

16.0%

New Insurance Written (NIW) - mortgage insurance

 

$13,493

 

$13,902

 

$13,922

Net premiums earned - mortgage insurance

 

$235

 

$235

 

$237

New defaults

 

13,708

 

11,104

 

11,156

Provision for losses - mortgage insurance

 

$6

 

$(2)

 

$(8)

 

 

As of

($ in millions, except per-share amounts)

 

September 30,
2024

 

June 30,
2024

 

September 30,
2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Book value per share

 

$31.37

 

$29.66

 

$26.69

Accumulated other comprehensive income (loss) value per share (4)

 

$(1.56)

 

$(2.50)

 

$(3.35)

PMIERs Available Assets (5)

 

$5,984

 

$5,978

 

$5,758

PMIERs excess Available Assets (6)

 

$2,122

 

$2,206

 

$1,670

Available holding company liquidity (7)

 

$844

 

$1,190

 

$1,004

Total investments

 

$6,497

 

$6,588

 

$5,886

Residential mortgage loans held for sale, at fair value (8)

 

$530

 

$458

 

$138

Primary mortgage insurance in force

 

$274,721

 

$272,827

 

$269,511

Percentage of primary loans in default (9)

 

2.25%

 

2.04%

 

2.03%

Mortgage insurance loss reserves

 

$357

 

$351

 

$362

(1)

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.

(2)

Calculated using the Company’s federal statutory tax rate of 21%.

(3)

Calculated by dividing annualized net income by average stockholders’ equity, based on the average of the beginning and ending balances for each period presented.

(4)

Included in book value per share for each period presented.

(5)

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.

(6)

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.

(7)

Represents Radian Group’s available liquidity after the repayment of our $450 million senior notes without considering available capacity under its undrawn $275 million unsecured revolving credit facility.

(8)

Included in total investments on our condensed consolidated balance sheets.

(9)

Represents the number of primary loans in default as a percentage of the total number of insured primary loans.

Book value per share at September 30, 2024, was $31.37, compared to $29.66 at June 30, 2024, and $26.69 at September 30, 2023. This represents an 18% growth in book value per share at September 30, 2024, as compared to September 30, 2023, and includes accumulated other comprehensive income (loss) of $(1.56) per share as of September 30, 2024, and $(3.35) per share as of September 30, 2023. Changes in accumulated other comprehensive income (loss) are primarily from net unrealized gains or losses on investments as a result of decreases or increases, respectively, in market interest rates.

“We were pleased to deliver another quarter of excellent financial results for Radian, increasing book value per share by 18% year-over-year, generating net income of $152 million, and growing our primary mortgage insurance in force, which is the main driver of future earnings for our company, to $275 billion,” said Radian’s Chief Executive Officer Rick Thornberry. “These results reflect the economic value of our high-quality mortgage insurance portfolio, the strength and quality of our investment portfolio, our strong capital and liquidity positions, the depth of our customer relationships and the dedication of our team.”

THIRD QUARTER HIGHLIGHTS

  • NIW was $13.5 billion in the third quarter of 2024, compared to $13.9 billion in the second quarter of 2024, and $13.9 billion in the third quarter of 2023.
  • Purchase NIW decreased 3% in the third quarter of 2024 compared to the second quarter of 2024 and decreased 3% compared to the third quarter of 2023.
  • Refinances accounted for 4% of total NIW in the third quarter of 2024, compared to 2% in the second quarter of 2024, and 1% in the third quarter of 2023.
  • Total primary mortgage insurance in force of $274.7 billion as of September 30, 2024, compared to $272.8 billion as of June 30, 2024, and $269.5 billion as of September 30, 2023.
  • Persistency, which is the percentage of mortgage insurance that remains in force after a twelve-month period, was 84% for the twelve months ended September 30, 2024, compared to 84% for the twelve months ended June 30, 2024, and 84% for the twelve months ended September 30, 2023.
  • Annualized persistency for the three months ended September 30, 2024, was 84%, compared to 84% for the three months ended June 30, 2024, and 84% for the three months ended September 30, 2023.
  • Net mortgage insurance premiums earned were $235 million for the third quarter of 2024, compared to $235 million for the second quarter of 2024, and $237 million for the third quarter of 2023.
  • Mortgage insurance in force portfolio premium yield was 38.2 basis points in the third quarter of 2024. This compares to 38.2 basis points in the second quarter of 2024 and 38.0 basis points in the third quarter of 2023.
  • Total net mortgage insurance premium yield, which includes the impact of ceded premiums earned and accrued profit commission, was 34.4 basis points in the third quarter of 2024. This compares to 34.5 basis points in the second quarter of 2024, and 35.3 basis points in the third quarter of 2023.
  • Details regarding premiums earned may be found in Exhibit D.
  • The mortgage insurance provision for losses was a provision of $6 million in the third quarter of 2024, compared to a benefit of $2 million in the second quarter of 2024 and a benefit of $8 million in the third quarter of 2023.
  • Favorable reserve development on prior period defaults was $51 million in the third quarter of 2024, compared to $50 million in the second quarter of 2024 and $55 million in the third quarter of 2023.
  • The number of primary delinquent loans was 22,350 as of September 30, 2024, compared to 20,276 as of June 30, 2024, and 20,406 as of September 30, 2023. This increase in delinquent loans is consistent with seasonal credit trends and the natural seasoning of the insured portfolio, and reflects the growth in the company’s total primary mortgage insurance in force in recent years.
  • The loss ratio in the third quarter of 2024 was 3%, compared to (1)% in the second quarter of 2024, and (4)% in the third quarter of 2023.
  • Total mortgage insurance claims paid were $3 million in the third quarter of 2024, compared to $6 million in the second quarter of 2024 and $5 million in the third quarter of 2023.
  • Additional details regarding mortgage insurance provision for losses may be found in Exhibit D.
  • During the third quarter of 2024, Radian Mortgage Capital closed its inaugural private-label prime jumbo mortgage securitization transaction of $349 million.
  • Radian Group’s wholly owned subsidiary, Radian Investment Group Inc., retained certificates from the securitization with an initial fair value of $6 million and is considered to be the primary beneficiary of the securitization trust. As a result, Radian Group is consolidating the trust, which is a variable interest entity (“VIE”), in its financial statements. The consolidation of the VIE did not have a material impact on Radian Group’s results of operations in the third quarter of 2024.
  • Additional details regarding the income statement and balance sheet impacts of the VIE can be found in Exhibit A and Exhibit C, respectively.
  • Other operating expenses were $86 million in the third quarter of 2024, compared to $92 million in the second quarter of 2024, and $79 million in the third quarter of 2023.
  • Other operating expenses decreased in the third quarter of 2024 as compared to the second quarter of 2024. The decrease in other operating expenses was partially offset by a $10 million impairment on internal-use software recognized in the third quarter of 2024.
  • Additional details regarding other operating expenses may be found in Exhibit D.

CAPITAL AND LIQUIDITY UPDATE

Radian Group

  • As previously announced, Radian Group completed the redemption of its 2024 senior notes in the amount of $450 million in the third quarter of 2024. This redemption resulted in a corresponding $450 million reduction in holding company debt and reduced the holding company debt-to-capital ratio to 18.5% as of September 30, 2024.
  • As of September 30, 2024, Radian Group maintained $844 million of available liquidity. Total holding company liquidity, including the company’s undrawn $275 million unsecured revolving credit facility, was $1.1 billion as of September 30, 2024.
  • During the third quarter of 2024, the company repurchased 1.5 million shares of Radian Group common stock at a total cost of $49 million. As of September 30, 2024, purchase authority of up to $618 million remained available under the existing program.
  • Radian Group paid a dividend on its common stock in the amount of $0.245 per share, totaling $37 million, on September 11, 2024.

Radian Guaranty

  • Radian Guaranty paid an ordinary dividend to Radian Group of $185 million in the third quarter of 2024, bringing total year-to-date ordinary dividends paid to $485 million.
  • At September 30, 2024, Radian Guaranty’s Available Assets under PMIERs totaled $6.0 billion, resulting in PMIERs excess Available Assets of $2.1 billion.

CONFERENCE CALL

Radian will discuss third quarter 2024 financial results in a conference call tomorrow, Thursday, November 7, 2024, at 10:00 a.m. Eastern time. The conference call will be webcast live on the company’s website at https://radian.com/who-we-are/for-investors/webcasts or at www.radian.com. The webcast is listen-only. Those interested in participating in the question-and-answer session should follow the conference call dial-in instructions below.

The call may be accessed via telephone by registering for the call here to receive the dial-in numbers and unique PIN. It is recommended that you join 10 minutes prior to the event start (although you may register and dial in at any time during the call).

A digital replay of the webcast will be available on Radian’s website approximately two hours after the live broadcast ends for a period of one year at https://radian.com/who-we-are/for-investors/webcasts.

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 (loss), adjusted diluted net operating income (loss) 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, except for those investments and other financial instruments attributable to our Mortgage Conduit business; (ii) amortization and impairment of goodwill and other acquired intangible assets; and (iii) impairment of other long-lived assets and other non-operating items, if any, such as gains (losses) from the sale of lines of business, acquisition-related income (expenses) and gains (losses) on extinguishment of debt. Adjusted diluted net operating income (loss) per share is calculated by dividing adjusted pretax operating income (loss) attributable to common stockholders, net of taxes computed using the company’s statutory tax rate, by 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.

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, real estate, securitization, and title services. Powered by technology, informed by data and driven to deliver new and better ways to transact and manage risk, Radian is shaping the future of mortgage and real estate services. Learn more at www.radian.com.

FINANCIAL RESULTS AND SUPPLEMENTAL INFORMATION CONTENTS (Unaudited)

Exhibit A:

 

Condensed Consolidated Statements of Operations

Exhibit B:

 

Net Income Per Share

Exhibit C:

 

Condensed Consolidated Balance Sheets

Exhibit D:

 

Condensed Consolidated Statements of Operations Detail

Exhibit E:

 

Segment Information

Exhibit F:

 

Definition of Consolidated Non-GAAP Financial Measures

Exhibit G:

 

Consolidated Non-GAAP Financial Measure Reconciliations

Exhibit H:

 

Mortgage Insurance Supplemental Information - New Insurance Written

Exhibit I:

 

Mortgage Insurance Supplemental Information - Primary Insurance in Force and Risk in Force

Radian Group Inc. and Subsidiaries

Condensed Consolidated Statements of Operations (1)

Exhibit A

 

 

 

2024

 

 

2023

 

(In thousands, except per-share amounts)

 

Qtr 3

 

 

Qtr 2

 

 

Qtr 1

 

 

Qtr 4

 

 

Qtr 3

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net premiums earned

 

$

239,133

 

 

$

237,731

 

 

$

235,857

 

 

$

232,649

 

 

$

240,262

 

Services revenue

 

 

12,167

 

 

 

13,265

 

 

 

12,588

 

 

 

12,419

 

 

 

10,892

 

Net investment income

 

 

78,396

 

 

 

73,766

 

 

 

69,221

 

 

 

68,824

 

 

 

67,805

 

Net gains (losses) on investments and other financial instruments

 

 

2,174

 

 

 

(4,487

)

 

 

490

 

 

 

13,447

 

 

 

(8,555

)

Income (loss) on consolidated VIEs

 

 

465

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income

 

 

1,522

 

 

 

872

 

 

 

1,262

 

 

 

1,305

 

 

 

2,109

 

Total revenues

 

 

333,857

 

 

 

321,147

 

 

 

319,418

 

 

 

328,644

 

 

 

312,513

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for losses

 

 

6,889

 

 

 

(1,745

)

 

 

(7,034

)

 

 

4,170

 

 

 

(8,135

)

Policy acquisition costs

 

 

6,724

 

 

 

6,522

 

 

 

6,794

 

 

 

6,147

 

 

 

6,920

 

Cost of services

 

 

9,542

 

 

 

9,535

 

 

 

9,327

 

 

 

8,950

 

 

 

8,886

 

Other operating expenses

 

 

85,919

 

 

 

91,648

 

 

 

82,636

 

 

 

95,218

 

 

 

79,206

 

Interest expense

 

 

29,391

 

 

 

27,064

 

 

 

29,046

 

 

 

23,169

 

 

 

23,282

 

Impairment of goodwill

 

 

 

 

 

 

 

 

 

 

 

9,802

 

 

 

 

Amortization of other acquired intangible assets

 

 

 

 

 

 

 

 

 

 

 

1,371

 

 

 

1,371

 

Total expenses

 

 

138,465

 

 

 

133,024

 

 

 

120,769

 

 

 

148,827

 

 

 

111,530

 

Pretax income

 

 

195,392

 

 

 

188,123

 

 

 

198,649

 

 

 

179,817

 

 

 

200,983

 

Income tax provision

 

 

43,500

 

 

 

36,220

 

 

 

46,295

 

 

 

37,124

 

 

 

44,401

 

Net income

 

$

151,892

 

 

$

151,903

 

 

$

152,354

 

 

$

142,693

 

 

$

156,582

 

Diluted net income per share

 

$

0.99

 

 

$

0.98

 

 

$

0.98

 

 

$

0.91

 

 

$

0.98

 

 

(1) See Exhibit D for additional details.

 

Radian Group Inc. and Subsidiaries

Net Income Per Share

Exhibit B

The calculation of basic and diluted net income per share is as follows.

 

 

2024

 

 

2023

 

(In thousands, except per-share amounts)

 

Qtr 3

 

 

Qtr 2

 

 

Qtr 1

 

 

Qtr 4

 

 

Qtr 3

 

Net income—basic and diluted

 

$

151,892

 

 

$

151,903

 

 

$

152,354

 

 

$

142,693

 

 

$

156,582

 

Average common shares outstanding—basic

 

 

151,846

 

 

 

153,110

 

 

 

153,817

 

 

 

155,318

 

 

 

158,461

 

Dilutive effect of share-based compensation arrangements (1)

 

 

1,227

 

 

 

1,289

 

 

 

2,154

 

 

 

1,909

 

 

 

1,686

 

Adjusted average common shares outstanding—diluted

 

 

153,073

 

 

 

154,399

 

 

 

155,971

 

 

 

157,227

 

 

 

160,147

 

Basic net income per share

 

$

1.00

 

 

$

0.99

 

 

$

0.99

 

 

$

0.92

 

 

$

0.99

 

Diluted net income per share

 

$

0.99

 

 

$

0.98

 

 

$

0.98

 

 

$

0.91

 

 

$

0.98

 

(1)

The following number of shares of our common stock equivalents issued under our share-based compensation arrangements are not included in the calculation of diluted net income per share because their effect would be anti-dilutive.

 

 

2024

 

 

2023

 

(In thousands)

 

Qtr 3

 

 

Qtr 2

 

 

Qtr 1

 

 

Qtr 4

 

 

Qtr 3

 

Shares of common stock equivalents

 

 

 

 

 

64

 

 

 

 

 

 

 

 

 

 

 

Radian Group Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

Exhibit C

 

 

Sep 30,

 

 

Jun 30,

 

 

Mar 31,

 

 

Dec 31,

 

 

Sep 30,

 

(In thousands, except per-share amounts)

 

2024

 

 

2024

 

 

2024

 

 

2023

 

 

2023

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments

 

$

6,497,180

 

 

$

6,588,149

 

 

$

6,327,114

 

 

$

6,085,654

 

 

$

5,885,652

 

Cash

 

 

28,061

 

 

 

13,791

 

 

 

26,993

 

 

 

18,999

 

 

 

55,489

 

Restricted cash

 

 

2,014

 

 

 

1,993

 

 

 

1,832

 

 

 

1,066

 

 

 

1,305

 

Accrued investment income

 

 

49,707

 

 

 

47,607

 

 

 

46,334

 

 

 

45,783

 

 

 

45,623

 

Accounts and notes receivable

 

 

138,439

 

 

 

137,777

 

 

 

130,095

 

 

 

123,857

 

 

 

144,614

 

Reinsurance recoverable

 

 

34,015

 

 

 

31,064

 

 

 

28,151

 

 

 

25,909

 

 

 

24,148

 

Deferred policy acquisition costs

 

 

18,430

 

 

 

18,566

 

 

 

18,561

 

 

 

18,718

 

 

 

18,817

 

Property and equipment, net

 

 

41,892

 

 

 

56,360

 

 

 

60,521

 

 

 

63,822

 

 

 

74,558

 

Goodwill and other acquired intangible assets, net

 

 

 

 

 

 

 

 

 

 

 

11,173

 

Prepaid federal income taxes

 

 

870,336

 

 

 

837,736

 

 

 

750,320

 

 

 

750,320

 

 

 

696,820

 

Other assets

 

 

384,666

 

 

 

396,600

 

 

 

369,944

 

 

 

459,805

 

 

 

420,483

 

Consolidated VIE assets (1)

 

 

355,031

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

8,419,771

 

 

$

8,129,643

 

 

$

7,759,865

 

 

$

7,593,933

 

 

$

7,378,682

 

Liabilities and stockholders’ equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unearned premiums

 

$

198,007

 

 

$

206,094

 

 

$

215,124

 

 

$

225,396

 

 

$

236,400

 

Reserve for losses and loss adjustment expense

 

 

363,225

 

 

 

357,470

 

 

 

361,833

 

 

 

370,148

 

 

 

367,568

 

Senior notes

 

 

1,064,718

 

 

 

1,513,782

 

 

 

1,512,860

 

 

 

1,417,781

 

 

 

1,416,687

 

Secured borrowings

 

 

551,916

 

 

 

484,665

 

 

 

207,601

 

 

 

119,476

 

 

 

241,753

 

Reinsurance funds withheld

 

 

138,810

 

 

 

135,849

 

 

 

133,460

 

 

 

130,564

 

 

 

156,114

 

Net deferred tax liability

 

 

737,605

 

 

 

656,113

 

 

 

626,353

 

 

 

589,564

 

 

 

497,560

 

Other liabilities

 

 

318,345

 

 

 

293,351

 

 

 

262,902

 

 

 

343,199

 

 

 

309,701

 

Consolidated VIE liabilities (1)

 

 

348,292

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

 

3,720,918

 

 

 

3,647,324

 

 

 

3,320,133

 

 

 

3,196,128

 

 

 

3,225,783

 

Common stock

 

 

171

 

 

 

172

 

 

 

171

 

 

 

173

 

 

 

175

 

Treasury stock

 

 

(967,717

)

 

 

(967,218

)

 

 

(946,202

)

 

 

(945,870

)

 

 

(945,504

)

Additional paid-in capital

 

 

1,315,046

 

 

 

1,356,341

 

 

 

1,390,436

 

 

 

1,430,594

 

 

 

1,482,712

 

Retained earnings

 

 

4,584,453

 

 

 

4,470,335

 

 

 

4,357,823

 

 

 

4,243,759

 

 

 

4,136,598

 

Accumulated other comprehensive income (loss)

 

 

(233,100

)

 

 

(377,311

)

 

 

(362,496

)

 

 

(330,851

)

 

 

(521,082

)

Total stockholders’ equity

 

 

4,698,853

 

 

 

4,482,319

 

 

 

4,439,732

 

 

 

4,397,805

 

 

 

4,152,899

 

Total liabilities and stockholders’ equity

 

$

8,419,771

 

 

$

8,129,643

 

 

$

7,759,865

 

 

$

7,593,933

 

 

$

7,378,682

 

Shares outstanding

 

 

149,776

 

 

 

151,148

 

 

 

151,509

 

 

 

153,179

 

 

 

155,582

 

Book value per share

 

$

31.37

 

 

$

29.66

 

 

$

29.30

 

 

$

28.71

 

 

$

26.69

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Holding company debt-to-capital ratio (2)

 

 

18.5

%

 

 

25.2

%

 

 

25.4

%

 

 

24.4

%

 

 

25.4

%

(1)

Reflects the consolidation of Radian Mortgage Capital’s inaugural private label securitization, net of our retained interest in the transaction. We determined that we are the primary beneficiary of this securitization trust, which is considered to be a variable interest entity (“VIE”), thereby requiring us to consolidate the VIE.

(2)

Calculated as carrying value of senior notes, which were issued and are owed by our holding company, divided by carrying value of senior notes and stockholders’ equity. This holding company ratio does not include the effects of amounts owed by our subsidiaries related to secured borrowings.

 

Radian Group Inc. and Subsidiaries

Condensed Consolidated Statements of Operations Detail

Exhibit D (page 1 of 3)

 

Net Premiums Earned

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2024

 

 

2023

 

(In thousands)

 

Qtr 3

 

 

Qtr 2

 

 

Qtr 1

 

 

Qtr 4

 

 

Qtr 3

 

Direct - Mortgage insurance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Premiums earned, excluding revenue from cancellations

 

$

261,726

 

 

$

259,342

 

 

$

258,593

 

 

$

256,632

 

 

$

254,903

 

Single Premium Policy cancellations

 

 

1,783

 

 

 

2,076

 

 

 

2,114

 

 

 

2,058

 

 

 

3,304

 

Total direct - Mortgage insurance

 

 

263,509

 

 

 

261,418

 

 

 

260,707

 

 

 

258,690

 

 

 

258,207

 

Ceded - Mortgage insurance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Premiums earned, excluding revenue from cancellations

 

 

(41,894

)

 

 

(39,925

)

 

 

(38,997

)

 

 

(40,065

)

 

 

(32,363

)

Single Premium Policy cancellations (1)

 

 

818

 

 

 

732

 

 

 

(112

)

 

 

(444

)

 

 

(873

)

Profit commission - other (2)

 

 

12,711

 

 

 

12,593

 

 

 

12,401

 

 

 

12,199

 

 

 

11,830

 

Total ceded premiums - Mortgage insurance

 

 

(28,365

)

 

 

(26,600

)

 

 

(26,708

)

 

 

(28,310

)

 

 

(21,406

)

Net premiums earned - Mortgage insurance

 

 

235,144

 

 

 

234,818

 

 

 

233,999

 

 

 

230,380

 

 

 

236,801

 

Net premiums earned - Title insurance

 

 

3,989

 

 

 

2,913

 

 

 

1,858

 

 

 

2,269

 

 

 

3,461

 

Net premiums earned

 

$

239,133

 

 

$

237,731

 

 

$

235,857

 

 

$

232,649

 

 

$

240,262

 

(1)

Includes the impact of related profit commissions.

(2)

The amounts represent the profit commission under our QSR Program, excluding the impact of Single Premium Policy cancellations.

Services Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2024

 

 

2023

 

(In thousands)

 

Qtr 3

 

 

Qtr 2

 

 

Qtr 1

 

 

Qtr 4

 

 

Qtr 3

 

Mortgage Insurance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contract underwriting services

 

$

244

 

 

$

309

 

 

$

210

 

 

$

202

 

 

$

266

 

All Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate services

 

 

7,876

 

 

 

8,777

 

 

 

9,193

 

 

 

8,888

 

 

 

7,046

 

Title

 

 

3,427

 

 

 

3,540

 

 

 

2,573

 

 

 

2,713

 

 

 

2,964

 

Real estate technology

 

 

620

 

 

 

639

 

 

 

612

 

 

 

616

 

 

 

616

 

Total services revenue

 

$

12,167

 

 

$

13,265

 

 

$

12,588

 

 

$

12,419

 

 

$

10,892

 

 

Radian Group Inc. and Subsidiaries

Condensed Consolidated Statements of Operations Detail

Exhibit D (page 2 of 3)

 

Net Investment Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2024

 

 

2023

 

(In thousands)

 

Qtr 3

 

 

Qtr 2

 

 

Qtr 1

 

 

Qtr 4

 

 

Qtr 3

 

Fixed-maturities

 

$

59,348

 

 

$

57,924

 

 

$

57,259

 

 

$

58,669

 

 

$

58,599

 

Equity securities

 

 

3,047

 

 

 

3,067

 

 

 

2,539

 

 

 

3,753

 

 

 

3,222

 

Mortgage loans held for sale

 

 

7,828

 

 

 

5,411

 

 

 

1,793

 

 

 

1,725

 

 

 

1,719

 

Short-term investments

 

 

9,686

 

 

 

8,614

 

 

 

8,958

 

 

 

5,871

 

 

 

5,405

 

Other (1)

 

 

(1,513

)

 

 

(1,250

)

 

 

(1,328

)

 

 

(1,194

)

 

 

(1,140

)

Net investment income

 

$

78,396

 

 

$

73,766

 

 

$

69,221

 

 

$

68,824

 

 

$

67,805

 

(1)

Includes investment management expenses, as well as the net impact from our securities lending activities.

Provision for Losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2024

 

 

2023

 

(In thousands)

 

Qtr 3

 

 

Qtr 2

 

 

Qtr 1

 

 

Qtr 4

 

 

Qtr 3

 

Mortgage insurance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current period defaults (1)

 

$

57,032

 

 

$

47,918

 

 

$

53,688

 

 

$

53,981

 

 

$

46,630

 

Prior period defaults (2)

 

 

(50,686

)

 

 

(49,687

)

 

 

(60,574

)

 

 

(49,373

)

 

 

(54,887

)

Total Mortgage insurance

 

 

6,346

 

 

 

(1,769

)

 

 

(6,886

)

 

 

4,608

 

 

 

(8,257

)

Title insurance

 

 

543

 

 

 

24

 

 

 

(148

)

 

 

(438

)

 

 

122

 

Total provision for losses

 

$

6,889

 

 

$

(1,745

)

 

$

(7,034

)

 

$

4,170

 

 

$

(8,135

)

(1)

Related to defaulted loans with the most recent default notice dated in the period indicated. For example, if a loan had defaulted in a prior period, but then subsequently cured and later re-defaulted in the current period, the default would be considered a current period default.

(2)

Related to defaulted loans with a default notice dated in a period earlier than the period indicated, which have been continuously in default since that time.

Other Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2024

 

 

2023

 

(In thousands)

 

Qtr 3

 

 

Qtr 2

 

 

Qtr 1

 

 

Qtr 4

 

 

Qtr 3

 

Salaries and other base employee expenses

 

$

32,851

 

 

$

41,431

 

 

$

39,723

 

 

$

34,182

 

 

$

33,272

 

Variable and share-based incentive compensation

 

 

17,581

 

 

 

23,223

 

 

 

17,515

 

 

 

20,262

 

 

 

19,546

 

Other general operating expenses (1)

 

 

39,984

 

 

 

31,623

 

 

 

30,262

 

 

 

45,186

 

 

 

29,812

 

Ceding commissions

 

 

(6,276

)

 

 

(5,957

)

 

 

(5,644

)

 

 

(5,327

)

 

 

(5,153

)

Title agent commissions

 

 

1,779

 

 

 

1,328

 

 

 

780

 

 

 

915

 

 

 

1,729

 

Total

 

$

85,919

 

 

$

91,648

 

 

$

82,636

 

 

$

95,218

 

 

$

79,206

 

(1)

Includes $10 million and $14 million in the third quarter of 2024 and the fourth quarter of 2023, respectively, of impairment of long-lived assets, consisting of impairments to our lease-related assets and internal-use software.

 

Radian Group Inc. and Subsidiaries

Condensed Consolidated Statements of Operations Detail

Exhibit D (page 3 of 3)

 

Interest Expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2024

 

 

2023

 

(In thousands)

 

Qtr 3

 

 

Qtr 2

 

 

Qtr 1

 

 

Qtr 4

 

 

Qtr 3

 

Senior notes

 

$

20,945

 

 

$

21,156

 

 

$

22,128

 

 

$

20,335

 

 

$

20,320

 

Mortgage loan financing facilities

 

 

7,500

 

 

 

5,107

 

 

 

1,438

 

 

 

1,421

 

 

 

1,609

 

Loss on extinguishment of debt

 

 

 

 

 

 

 

 

4,275

 

 

 

 

 

 

 

FHLB advances

 

 

538

 

 

 

544

 

 

 

945

 

 

 

1,059

 

 

 

1,039

 

Revolving credit facility

 

 

408

 

 

 

257

 

 

 

260

 

 

 

354

 

 

 

310

 

Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4

 

Total interest expense

 

$

29,391

 

 

$

27,064

 

 

$

29,046

 

 

$

23,169

 

 

$

23,282

 

Radian Group Inc. and Subsidiaries

Segment Information

Exhibit E (page 1 of 4)

Summarized financial information concerning our operating segments as of and for the periods indicated is as follows. For a definition of adjusted pretax operating income (loss), along with a reconciliation to its consolidated GAAP measure, see Exhibits F and G.

 

 

 

Three Months Ended September 30, 2024

 

(In thousands)

 

Mortgage
Insurance

 

 

All Other (1)

 

 

Inter-
segment

 

 

Total

 

Net premiums written

 

$

233,648

 

 

$

3,989

 

 

$

 

 

$

237,637

 

(Increase) decrease in unearned premiums

 

 

1,496

 

 

 

 

 

 

 

 

 

1,496

 

Net premiums earned

 

 

235,144

 

 

 

3,989

 

 

 

 

 

 

239,133

 

Services revenue

 

 

244

 

 

 

12,001

 

 

 

(78

)

 

 

12,167

 

Net investment income

 

 

50,236

 

 

 

28,160

 

 

 

 

 

 

78,396

 

Net gains (losses) on investments and other financial instruments

 

 

 

 

 

(4,611

)

 

 

 

 

 

(4,611

)

Income (loss) on consolidated VIEs

 

 

 

 

 

465

 

 

 

 

 

 

465

 

Other income

 

 

1,948

 

 

 

(399

)

 

 

(27

)

 

 

1,522

 

Total

 

 

287,572

 

 

 

39,605

 

 

 

(105

)

 

 

327,072

 

Provision for losses

 

 

6,346

 

 

 

543

 

 

 

 

 

 

6,889

 

Policy acquisition costs

 

 

6,724

 

 

 

 

 

 

 

 

 

6,724

 

Cost of services

 

 

126

 

 

 

9,416

 

 

 

 

 

 

9,542

 

Other operating expenses before allocated corporate operating expenses

 

 

16,408

 

 

 

23,583

 

 

 

(105

)

 

 

39,886

 

Interest expense

 

 

21,891

 

 

 

7,500

 

 

 

 

 

 

29,391

 

Total

 

 

51,495

 

 

 

41,042

 

 

 

(105

)

 

 

92,432

 

Adjusted pretax operating income (loss) before allocated corporate operating expenses

 

 

236,077

 

 

 

(1,437

)

 

 

 

 

 

234,640

 

Allocation of corporate operating expenses

 

 

32,534

 

 

 

3,438

 

 

 

 

 

 

35,972

 

Adjusted pretax operating income (loss) (2)

 

$

203,543

 

 

$

(4,875

)

 

$

 

 

$

198,668

 

Radian Group Inc. and Subsidiaries

Segment Information

Exhibit E (page 2 of 4)

 

 

Three Months Ended September 30, 2023

 

(In thousands)

 

Mortgage
Insurance

 

 

All Other (1)

 

 

Inter-
segment

 

 

Total

 

Net premiums written

 

$

235,169

 

 

$

3,461

 

 

$

 

 

$

238,630

 

(Increase) decrease in unearned premiums

 

 

1,632

 

 

 

 

 

 

 

 

 

1,632

 

Net premiums earned

 

 

236,801

 

 

 

3,461

 

 

 

 

 

 

240,262

 

Services revenue

 

 

266

 

 

 

10,723

 

 

 

(97

)

 

 

10,892

 

Net investment income

 

 

49,953

 

 

 

17,852

 

 

 

 

 

 

67,805

 

Net gains (losses) on investments and other financial instruments

 

 

 

 

 

283

 

 

 

 

 

 

283

 

Other income

 

 

1,237

 

 

 

9

 

 

 

(5

)

 

 

1,241

 

Total

 

 

288,257

 

 

 

32,328

 

 

 

(102

)

 

 

320,483

 

Provision for losses

 

 

(8,257

)

 

 

122

 

 

 

 

 

 

(8,135

)

Policy acquisition costs

 

 

6,920

 

 

 

 

 

 

 

 

 

6,920

 

Cost of services

 

 

172

 

 

 

8,714

 

 

 

 

 

 

8,886

 

Other operating expenses before allocated corporate operating expenses

 

 

16,776

 

 

 

26,062

 

 

 

(102

)

 

 

42,736

 

Interest expense

 

 

21,673

 

 

 

1,609

 

 

 

 

 

 

23,282

 

Total

 

 

37,284

 

 

 

36,507

 

 

 

(102

)

 

 

73,689

 

Adjusted pretax operating income (loss) before allocated corporate operating expenses

 

 

250,973

 

 

 

(4,179

)

 

 

 

 

 

246,794

 

Allocation of corporate operating expenses

 

 

31,744

 

 

 

4,595

 

 

 

 

 

 

36,339

 

Adjusted pretax operating income (loss) (2)

 

$

219,229

 

 

$

(8,774

)

 

$

 

 

$

210,455

 

(1)

All Other activities include: (i) income (losses) from assets held by our holding company; (ii) related general corporate operating expenses not attributable or allocated to our reportable segments; and (iii) the operating results from certain other immaterial activities and operating segments, including our mortgage conduit, title, real estate services and real estate technology businesses.

(2)

See Exhibits F and G for additional information on the use and definition of this term and a reconciliation to consolidated net income.

 

Radian Group Inc. and Subsidiaries

Segment Information

Exhibit E (page 3 of 4)

 

Mortgage Insurance

 

 

 

2024

 

 

2023

 

(In thousands)

 

Qtr 3

 

 

Qtr 2

 

 

Qtr 1

 

 

Qtr 4

 

 

Qtr 3

 

Net premiums written

 

$

233,648

 

 

$

232,645

 

 

$

231,877

 

 

$

225,112

 

 

$

235,169

 

(Increase) decrease in unearned premiums

 

 

1,496

 

 

 

2,173

 

 

 

2,122

 

 

 

5,268

 

 

 

1,632

 

Net premiums earned

 

 

235,144

 

 

 

234,818

 

 

 

233,999

 

 

 

230,380

 

 

 

236,801

 

Services revenue

 

 

244

 

 

 

309

 

 

 

210

 

 

 

202

 

 

 

266

 

Net investment income

 

 

50,236

 

 

 

50,102

 

 

 

49,574

 

 

 

51,061

 

 

 

49,953

 

Other income

 

 

1,948

 

 

 

754

 

 

 

1,240

 

 

 

1,302

 

 

 

1,237

 

Total

 

 

287,572

 

 

 

285,983

 

 

 

285,023

 

 

 

282,945

 

 

 

288,257

 

Provision for losses

 

 

6,346

 

 

 

(1,769

)

 

 

(6,886

)

 

 

4,608

 

 

 

(8,257

)

Policy acquisition costs

 

 

6,724

 

 

 

6,522

 

 

 

6,794

 

 

 

6,147

 

 

 

6,920

 

Cost of services

 

 

126

 

 

 

156

 

 

 

153

 

 

 

157

 

 

 

172

 

Other operating expenses before allocated corporate operating expenses

 

 

16,408

 

 

 

17,157

 

 

 

17,270

 

 

 

15,559

 

 

 

16,776

 

Interest expense

 

 

21,891

 

 

 

21,957

 

 

 

23,333

 

 

 

21,748

 

 

 

21,673

 

Total

 

 

51,495

 

 

 

44,023

 

 

 

40,664

 

 

 

48,219

 

 

 

37,284

 

Adjusted pretax operating income before allocated corporate operating expenses

 

 

236,077

 

 

 

241,960

 

 

 

244,359

 

 

 

234,726

 

 

 

250,973

 

Allocation of corporate operating expenses

 

 

32,534

 

 

 

43,197

 

 

 

34,509

 

 

 

36,929

 

 

 

31,744

 

Adjusted pretax operating income (1)

 

$

203,543

 

 

$

198,763

 

 

$

209,850

 

 

$

197,797

 

 

$

219,229

 

 

Radian Group Inc. and Subsidiaries

Segment Information

Exhibit E (page 4 of 4)

 

All Other (2)

 

 

 

2024

 

 

2023

 

(In thousands)

 

Qtr 3

 

 

Qtr 2

 

 

Qtr 1

 

 

Qtr 4

 

 

Qtr 3

 

Net premiums earned

 

$

3,989

 

 

$

2,913

 

 

$

1,858

 

 

$

2,269

 

 

$

3,461

 

Services revenue

 

 

12,001

 

 

 

13,064

 

 

 

12,493

 

 

 

12,311

 

 

 

10,723

 

Net investment income

 

 

28,160

 

 

 

23,664

 

 

 

19,647

 

 

 

17,763

 

 

 

17,852

 

Net gains (losses) on investments and other financial instruments

 

 

(4,611

)

 

 

(49

)

 

 

383

 

 

 

356

 

 

 

283

 

Income (loss) on consolidated VIEs

 

 

465

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income

 

 

(399

)

 

 

130

 

 

 

25

 

 

 

14

 

 

 

9

 

Total (3)

 

 

39,605

 

 

 

39,722

 

 

 

34,406

 

 

 

32,713

 

 

 

32,328

 

Provision for losses

 

 

543

 

 

 

24

 

 

 

(148

)

 

 

(438

)

 

 

122

 

Cost of services

 

 

9,416

 

 

 

9,379

 

 

 

9,174

 

 

 

8,793

 

 

 

8,714

 

Other operating expenses before allocated corporate operating expenses

 

 

23,583

 

 

 

26,615

 

 

 

27,264

 

 

 

23,660

 

 

 

26,062

 

Interest expense

 

 

7,500

 

 

 

5,107

 

 

 

1,438

 

 

 

1,421

 

 

 

1,609

 

Total

 

 

41,042

 

 

 

41,125

 

 

 

37,728

 

 

 

33,436

 

 

 

36,507

 

Adjusted pretax operating income (loss) before allocated corporate operating expenses

 

 

(1,437

)

 

 

(1,403

)

 

 

(3,322

)

 

 

(723

)

 

 

(4,179

)

Allocation of corporate operating expenses

 

 

3,438

 

 

 

4,677

 

 

 

3,711

 

 

 

5,340

 

 

 

4,595

 

Adjusted pretax operating income (loss) (1)

 

$

(4,875

)

 

$

(6,080

)

 

$

(7,033

)

 

$

(6,063

)

 

$

(8,774

)

(1)

See Exhibits F and G for additional information on the use and definition of this term and a reconciliation to consolidated net income.

(2)

All Other activities include: (i) income (losses) from assets held by our holding company; (ii) related general corporate operating expenses not attributable or allocated to our reportable segments; and (iii) the operating results from certain other immaterial activities and operating segments, including our mortgage conduit, title, real estate services and real estate technology businesses.

(3)

Details of All Other revenue are as follows.

 

 

2024

 

 

2023

 

(In thousands)

 

Qtr 3

 

 

Qtr 2

 

 

Qtr 1

 

 

Qtr 4

 

 

Qtr 3

 

Holding company (a)

 

$

19,113

 

 

$

17,042

 

 

$

16,536

 

 

$

15,374

 

 

$

15,601

 

Real estate services

 

 

8,185

 

 

 

9,110

 

 

 

9,517

 

 

 

9,014

 

 

 

7,126

 

Title

 

 

7,973

 

 

 

7,047

 

 

 

4,997

 

 

 

5,516

 

 

 

6,948

 

Mortgage conduit

 

 

3,658

 

 

 

5,815

 

 

 

2,690

 

 

 

2,171

 

 

 

2,020

 

Real estate technology

 

 

676

 

 

 

708

 

 

 

666

 

 

 

638

 

 

 

633

 

Total

 

$

39,605

 

 

$

39,722

 

 

$

34,406

 

 

$

32,713

 

 

$

32,328

 

(a)

Consists of net investment income earned from assets held by Radian Group, our holding company, that are not attributable or allocated to our underlying businesses.

Selected Mortgage Insurance Key Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2024

 

 

2023

 

(In thousands)

 

Qtr 3

 

 

Qtr 2

 

 

Qtr 1

 

 

Qtr 4

 

 

Qtr 3

 

Loss ratio (1)

 

 

2.7

%

 

 

(0.8

)%

 

 

(2.9

)%

 

 

2.0

%

 

 

(3.5

)%

Expense ratio (2)

 

 

23.7

%

 

 

28.5

%

 

 

25.0

%

 

 

25.5

%

 

 

23.4

%

(1)

For our Mortgage Insurance segment, calculated as provision for losses expressed as a percentage of net premiums earned.

(2)

For our Mortgage Insurance segment, calculated as operating expenses, (which consist of policy acquisition costs and other operating expenses, as well as allocated corporate operating expenses), expressed as a percentage of net premiums earned.

Radian Group Inc. and Subsidiaries

Definition of Consolidated Non-GAAP Financial Measures

Exhibit F (page 1 of 2)

Use of Non-GAAP Financial Measures

In addition to the traditional GAAP financial measures, we have presented “adjusted pretax operating income (loss),” “adjusted diluted net operating income (loss) per share” and “adjusted net operating return on equity,” which are non-GAAP financial measures for the consolidated company, among our key performance indicators to evaluate our fundamental financial performance. These non-GAAP financial measures align with the way our business performance is evaluated by both management and by our board of directors. These measures have been established in order to increase transparency for the purposes of evaluating our operating trends and enabling more meaningful comparisons with our peers. Although on a consolidated basis adjusted pretax operating income (loss), adjusted diluted net operating income (loss) per share and adjusted net operating return on equity are non-GAAP financial measures, we believe these measures aid in understanding the underlying performance of our operations. Our senior management, including our Chief Executive Officer (Radian’s chief operating decision maker), uses adjusted pretax operating income (loss) as our primary measure to evaluate the fundamental financial performance of our businesses and to allocate resources to them.

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, except for those investments and other financial instruments attributable to our Mortgage Conduit business; (ii) amortization and impairment of goodwill and other acquired intangible assets; and (iii) impairment of other long-lived assets and other non-operating items, if any, such as gains (losses) from the sale of lines of business, acquisition-related income (expenses) and gains (losses) on extinguishment of debt. Adjusted diluted net operating income (loss) per share is calculated by dividing adjusted pretax operating income (loss) attributable to common stockholders, net of taxes computed using the company’s statutory tax rate, by 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.

Although adjusted pretax operating income (loss) excludes certain items that have occurred in the past and are expected to occur in the future, the excluded items represent those that are: (i) not viewed as part of the operating performance of our primary activities or (ii) not expected to result in an economic impact equal to the amount reflected in pretax income (loss). These adjustments, along with the reasons for their treatment, are described below.

(1)

 

Net gains (losses) on investments and other financial instruments. The recognition of realized investment gains or losses can vary significantly across periods as the activity is highly discretionary based on the timing of individual securities sales due to such factors as market opportunities, our tax and capital profile and overall market cycles. Unrealized gains and losses arise primarily from changes in the market value of our investments that are classified as trading or equity securities. These valuation adjustments may not necessarily result in realized economic gains or losses.

 

 

 

 

 

Trends in the profitability of our fundamental operating activities can be more clearly identified without the fluctuations of these realized and unrealized gains or losses and changes in fair value of other financial instruments. Except for certain investments and other financial instruments attributable to specific operating segments, we do not view them to be indicative of our fundamental operating activities.

 

 

 

(2)

 

Amortization and impairment of goodwill and other acquired intangible assets. Amortization of acquired intangible assets represents the periodic expense required to amortize the cost of acquired intangible assets over their estimated useful lives. Acquired intangible assets are also periodically reviewed for potential impairment, and impairment adjustments are made whenever appropriate. We do not view these charges as part of the operating performance of our primary activities.

 

 

 

(3)

 

Impairment of other long-lived assets and other non-operating items, if any. Impairment of other long-lived assets and other non-operating items includes activities that we do not view to be indicative of our fundamental operating activities, such as: (i) impairment of internal-use software and other long-lived assets; (ii) gains (losses) from the sale of lines of business; (iii) acquisition-related income and expenses; and (iv) gains (losses) on extinguishment of debt.

Radian Group Inc. and Subsidiaries

Definition of Consolidated Non-GAAP Financial Measures

Exhibit F (page 2 of 2)

See Exhibit G for the reconciliations of the most comparable GAAP measures, consolidated pretax income (loss), diluted net income (loss) per share and return on equity to our non-GAAP financial measures for the consolidated company, adjusted pretax operating income (loss), adjusted diluted net operating income (loss) per share and adjusted net operating return on equity, respectively.

Total adjusted pretax operating income (loss), adjusted diluted net operating income (loss) per share and adjusted net operating return on equity should not be considered in isolation or viewed as substitutes for GAAP pretax income (loss), diluted net income (loss) per share, return on equity or net income (loss). Our definitions of adjusted pretax operating income (loss) and adjusted diluted net operating income (loss) per share may not be comparable to similarly-named measures reported by other companies.

 

Radian Group Inc. and Subsidiaries

Consolidated Non-GAAP Financial Measure Reconciliations

Exhibit G (page 1 of 2)

 

Reconciliation of Consolidated Pretax Income to Adjusted Pretax Operating Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2024

 

 

2023

 

(In thousands)

 

Qtr 3

 

 

Qtr 2

 

 

Qtr 1

 

 

Qtr 4

 

 

Qtr 3

 

Consolidated pretax income

 

$

195,392

 

 

$

188,123

 

 

$

198,649

 

 

$

179,817

 

 

$

200,983

 

Less reconciling income (expense) items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net gains (losses) on investments and other financial instruments (1)

 

 

6,785

 

 

 

(4,438

)

 

 

107

 

 

 

13,091

 

 

 

(8,838

)

Amortization and impairment of goodwill and other acquired intangible assets

 

 

 

 

 

 

 

 

 

 

 

(11,173

)

 

 

(1,371

)

Impairment of other long-lived assets and other non-operating items

 

 

(10,061

)

(2)

 

(122

)

 

 

(4,275

)

(3)

 

(13,835

)

(2)

 

737

 

Total adjusted pretax operating income (4)

 

$

198,668

 

 

$

192,683

 

 

$

202,817

 

 

$

191,734

 

 

$

210,455

 

(1)

Excludes net gains (losses) on investments and other financial instruments that are attributable to our Mortgage Conduit business, which are included in adjusted pretax operating income (loss).

(2)

This amount is included in other operating expenses on the Condensed Consolidated Statement of Operations in Exhibit A and primarily relates to impairment of other long-lived assets.

(3)

This amount is included in interest expense on the Condensed Consolidated Statement of Operations in Exhibit A and relates to the loss on extinguishment of debt.

(4)

Total adjusted pretax operating income consists of adjusted pretax operating income (loss) for our reportable segment and All Other activities as follows.

 

 

2024

 

 

2023

 

(In thousands)

 

Qtr 3

 

 

Qtr 2

 

 

Qtr 1

 

 

Qtr 4

 

 

Qtr 3

 

Adjusted pretax operating income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage Insurance segment

 

$

203,543

 

 

$

198,763

 

 

$

209,850

 

 

$

197,797

 

 

$

219,229

 

All Other activities

 

 

(4,875

)

 

 

(6,080

)

 

 

(7,033

)

 

 

(6,063

)

 

 

(8,774

)

Total adjusted pretax operating income

 

$

198,668

 

 

$

192,683

 

 

$

202,817

 

 

$

191,734

 

 

$

210,455

 

 

Reconciliation of Diluted Net Income Per Share to Adjusted Diluted Net Operating Income Per Share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2024

 

 

2023

 

 

 

Qtr 3

 

 

Qtr 2

 

 

Qtr 1

 

 

Qtr 4

 

 

Qtr 3

 

Diluted net income per share

 

$

0.99

 

 

$

0.98

 

 

$

0.98

 

 

$

0.91

 

 

$

0.98

 

Less per-share impact of reconciling income (expense) items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net gains (losses) on investments and other financial instruments

 

 

0.04

 

 

 

(0.03

)

 

 

 

 

 

0.08

 

 

 

(0.06

)

Amortization and impairment of goodwill and other acquired intangible assets

 

 

 

 

 

 

 

 

 

 

 

(0.07

)

 

 

(0.01

)

Impairment of other long-lived assets and other non-operating items

 

 

(0.06

)

 

 

 

 

 

(0.03

)

 

 

(0.09

)

 

 

0.01

 

Income tax (provision) benefit on reconciling income (expense) items (1)

 

 

 

 

 

 

 

 

0.01

 

 

 

0.02

 

 

 

0.01

 

Difference between statutory and effective tax rates

 

 

(0.02

)

 

 

0.02

 

 

 

(0.03

)

 

 

0.01

 

 

 

(0.01

)

Per-share impact of reconciling income (expense) items

 

 

(0.04

)

 

 

(0.01

)

 

 

(0.05

)

 

 

(0.05

)

 

 

(0.06

)

Adjusted diluted net operating income per share (1)

 

$

1.03

 

 

$

0.99

 

 

$

1.03

 

 

$

0.96

 

 

$

1.04

 

(1)

Calculated using the company’s federal statutory tax rate of 21%.

 

Radian Group Inc. and Subsidiaries

Consolidated Non-GAAP Financial Measure Reconciliations

Exhibit G (page 2 of 2)

 

Reconciliation of Return on Equity to Adjusted Net Operating Return on Equity (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2024

 

 

2023

 

 

 

Qtr 3

 

 

Qtr 2

 

 

Qtr 1

 

 

Qtr 4

 

 

Qtr 3

 

Return on equity (1)

 

 

13.2

%

 

 

13.6

%

 

 

13.8

%

 

 

13.4

%

 

 

15.0

%

Less impact of reconciling income (expense) items (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net gains (losses) on investments and other financial instruments

 

 

0.6

%

 

 

(0.4

)%

 

 

%

 

 

1.2

%

 

 

(0.9

)%

Amortization and impairment of goodwill and other acquired intangible assets

 

 

%

 

 

%

 

 

%

 

 

(1.0

)%

 

 

(0.2

)%

Impairment of other long-lived assets and other non-operating items

 

 

(0.9

)%

 

 

%

 

 

(0.4

)%

 

 

(1.3

)%

 

 

0.1

%

Income tax (provision) benefit on reconciling income (expense) items (3)

 

 

%

 

 

0.1

%

 

 

0.1

%

 

 

0.2

%

 

 

0.2

%

Difference between statutory and effective tax rates

 

 

(0.2

)%

 

 

0.3

%

 

 

(0.4

)%

 

 

0.1

%

 

 

(0.2

)%

Impact of reconciling income (expense) items

 

 

(0.5

)%

 

 

%

 

 

(0.7

)%

 

 

(0.8

)%

 

 

(1.0

)%

Adjusted net operating return on equity (3)

 

 

13.7

%

 

 

13.6

%

 

 

14.5

%

 

 

14.2

%

 

 

16.0

%

(1)

Calculated by dividing annualized net income by average stockholders’ equity, based on the average of the beginning and ending balances for each period presented.

(2)

Annualized, as a percentage of average stockholders’ equity.

(3)

Calculated using the company’s federal statutory tax rate of 21%.

On a consolidated basis, “adjusted pretax operating income (loss),” “adjusted diluted net operating income (loss) per share” and “adjusted net operating return on equity” are measures not determined in accordance with GAAP. These measures should not be considered in isolation or viewed as substitutes for GAAP pretax income (loss), diluted net income (loss) per share, return on equity or net income (loss).

Our definitions of adjusted pretax operating income (loss), adjusted diluted net operating income (loss) per share and adjusted net operating return on equity may not be comparable to similarly-named measures reported by other companies. See Exhibit F for additional information on our consolidated non-GAAP financial measures.

Radian Group Inc. and Subsidiaries

Mortgage Insurance Supplemental Information - New Insurance Written

Exhibit H

 

 

2024

 

 

2023

 

($ in millions)

 

Qtr 3

 

 

Qtr 2

 

 

Qtr 1

 

 

Qtr 4

 

 

Qtr 3

 

NIW

 

$

13,493

 

 

$

13,902

 

 

$

11,534

 

 

$

10,629

 

 

$

13,922

 

NIW by premium type

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct monthly and other recurring premiums

 

 

95.9

%

 

 

96.5

%

 

 

96.7

%

 

 

96.4

%

 

 

96.0

%

Direct single premiums

 

 

4.1

%

 

 

3.5

%

 

 

3.3

%

 

 

3.6

%

 

 

4.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NIW for purchases

 

 

95.6

%

 

 

98.3

%

 

 

96.9

%

 

 

98.8

%

 

 

98.7

%

NIW for refinances

 

 

4.4

%

 

 

1.7

%

 

 

3.1

%

 

 

1.2

%

 

 

1.3

%

NIW by FICO score (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

>=740

 

 

69.5

%

 

 

69.4

%

 

 

67.3

%

 

 

66.5

%

 

 

67.3

%

680-739

 

 

24.8

%

 

 

25.5

%

 

 

27.1

%

 

 

27.9

%

 

 

27.4

%

620-679

 

 

5.7

%

 

 

5.1

%

 

 

5.6

%

 

 

5.6

%

 

 

5.3

%

<=619

 

 

0.0

%

 

 

0.0

%

 

 

0.0

%

 

 

0.0

%

 

 

0.0

%

Total NIW

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

NIW by LTV (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

95.01% and above

 

 

16.5

%

 

 

16.5

%

 

 

15.4

%

 

 

15.4

%

 

 

16.5

%

90.01% to 95.00%

 

 

37.1

%

 

 

37.2

%

 

 

40.8

%

 

 

40.0

%

 

 

38.6

%

85.01% to 90.00%

 

 

31.5

%

 

 

32.4

%

 

 

31.3

%

 

 

31.3

%

 

 

30.2

%

85.00% and below

 

 

14.9

%

 

 

13.9

%

 

 

12.5

%

 

 

13.3

%

 

 

14.7

%

Total NIW

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

(1)

For loans with multiple borrowers, the percentage of NIW by FICO score represents the lowest of the borrowers’ FICO scores at origination.

(2)

At origination.

Radian Group Inc. and Subsidiaries

Mortgage Insurance Supplemental Information - Primary Insurance in Force and Risk in Force

Exhibit I

 

 

2024

 

 

2023

 

($ in millions)

 

Qtr 3

 

 

Qtr 2

 

 

Qtr 1

 

 

Qtr 4

 

 

Qtr 3

 

Primary insurance in force

 

$

274,721

 

 

$

272,827

 

 

$

270,986

 

 

$

269,979

 

 

$

269,511

 

Primary risk in force (“RIF”)

 

$

71,834

 

 

$

71,109

 

 

$

70,299

 

 

$

69,710

 

 

$

69,298

 

Primary RIF by premium type

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct monthly and other recurring premiums

 

 

89.8

%

 

 

89.5

%

 

 

89.2

%

 

 

88.9

%

 

 

88.6

%

Direct single premiums

 

 

10.2

%

 

 

10.5

%

 

 

10.8

%

 

 

11.1

%

 

 

11.4

%

Primary RIF by FICO score (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

>=740

 

 

59.6

%

 

 

59.2

%

 

 

58.8

%

 

 

58.5

%

 

 

58.2

%

680-739

 

 

33.0

%

 

 

33.3

%

 

 

33.6

%

 

 

33.9

%

 

 

34.0

%

620-679

 

 

7.1

%

 

 

7.2

%

 

 

7.3

%

 

 

7.3

%

 

 

7.4

%

<=619

 

 

0.3

%

 

 

0.3

%

 

 

0.3

%

 

 

0.3

%

 

 

0.4

%

Total RIF

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

Primary RIF by LTV (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

95.01% and above

 

 

19.5

%

 

 

19.2

%

 

 

18.9

%

 

 

18.6

%

 

 

18.4

%

90.01% to 95.00%

 

 

48.0

%

 

 

48.1

%

 

 

48.2

%

 

 

48.2

%

 

 

48.2

%

85.01% to 90.00%

 

 

27.3

%

 

 

27.3

%

 

 

27.1

%

 

 

27.1

%

 

 

27.0

%

85.00% and below

 

 

5.2

%

 

 

5.4

%

 

 

5.8

%

 

 

6.1

%

 

 

6.4

%

Total RIF

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

Persistency Rate (12 months ended)

 

 

84.4

%

 

 

84.3

%

 

 

84.3

%

 

 

84.0

%

 

 

83.6

%

Persistency Rate (quarterly, annualized) (3)

 

 

84.1

%

 

 

83.5

%

 

 

85.3

%

 

 

85.8

%

 

 

84.2

%

(1)

For loans with multiple borrowers, the percentage of primary RIF by FICO score represents the lowest of the borrowers’ FICO scores at origination.

(2)

At origination.

(3)

The Persistency Rate on a quarterly, annualized basis is calculated based on loan-level detail for the quarter ending as of the date shown. It may be impacted by seasonality or other factors, including the level of refinance activity during the applicable periods and may not be indicative of full-year trends.

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 Securities Exchange Act of 1934 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. 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. The forward-looking statements are not guarantees of future performance, and the forward-looking statements, as well as our prospects as a whole, are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements. These risks and uncertainties include, without limitation:

  • the health of the U.S. housing market generally and changes in economic conditions that impact the size of the insurable mortgage market, the credit performance of our insured mortgage portfolio, the returns on our investments in residential mortgage loans acquired through our Mortgage Conduit business and other investments held in our investment portfolio, as well as our business prospects, including: changes resulting from inflationary pressures, the interest rate environment and the risk of higher unemployment rates; other macroeconomic stresses and uncertainties, including potential impacts resulting from political and geopolitical events, civil disturbances and endemics/pandemics or extreme weather events and other natural disasters that may adversely affect regional economic conditions and housing markets;
  • changes in the way customers, investors, ratings agencies, regulators or legislators perceive our performance, financial strength and future prospects;
  • Radian Guaranty’s ability to remain eligible under the PMIERs to insure loans purchased by the GSEs;
  • our ability to maintain an adequate level of capital in our insurance subsidiaries to satisfy current and future regulatory requirements;
  • changes in the charters or business practices of, or rules or regulations imposed by or applicable to, the GSEs or loans purchased by the GSEs, or changes in the requirements for Radian Guaranty to remain an approved insurer to the GSEs, such as changes in the PMIERs or the GSEs’ interpretation and application of the PMIERs or other applicable requirements;
  • the effects of the Enterprise Regulatory Capital Framework, finalized in February 2022, which establishes a new regulatory capital framework for the GSEs, and which, as finalized, increases the capital requirements for the GSEs, and among other things, could impact the GSEs’ operations and pricing as well as the size of the insurable mortgage market;
  • changes in the current housing finance system in the United States, including the roles of the FHA, the VA, the GSEs and private mortgage insurers in this system;
  • our ability to successfully execute and implement our capital plans, including our risk distribution strategy through the capital markets and traditional reinsurance markets, and to maintain sufficient holding company liquidity to meet our liquidity needs;
  • our ability to successfully execute and implement our business plans and strategies, including plans and strategies that may require GSE and/or regulatory approvals and licenses, that are subject to complex compliance requirements that we may be unable to satisfy, or that may expose us to new risks, including those that could impact our capital and liquidity positions;
  • risks related to the quality of third-party mortgage underwriting and mortgage loan servicing;
  • a decrease in the Persistency Rates of our mortgage insurance on Monthly Premium Policies;
  • competition in the private mortgage insurance industry generally, and more specifically: price competition in our mortgage insurance business and competition from the FHA and the VA as well as from other forms of credit enhancement, such as any potential GSE-sponsored alternatives to traditional mortgage insurance;
  • U.S. political conditions, which may be more volatile and present a heightened risk in Presidential election years, and legislative and regulatory activity (or inactivity), including adoption of (or failure to adopt) new laws and regulations, or changes in existing laws and regulations, or the way they are interpreted or applied;
  • legal and regulatory claims, assertions, actions, reviews, audits, inquiries and investigations that could result in adverse judgments, settlements, fines, injunctions, restitutions or other relief that could require significant expenditures, new or increased reserves or have other effects on our business;
  • the amount and timing of potential payments or adjustments associated with federal or other tax examinations;
  • the possibility that we may fail to estimate accurately, especially in the event of an extended economic downturn or a period of extreme market volatility and economic uncertainty, the likelihood, magnitude and timing of losses in establishing loss reserves for our mortgage insurance business or to accurately calculate and/or project our Available Assets and Minimum Required Assets under the PMIERs, which could be impacted by, among other things, the size and mix of our IIF, future changes to the PMIERs, the level of defaults in our portfolio, the reported status of defaults in our portfolio (including whether they are subject to mortgage forbearance, a repayment plan or a loan modification trial period), the level of cash flow generated by our insurance operations and our risk distribution strategies;
  • volatility in our financial results caused by changes in the fair value of our assets and liabilities carried at fair value;
  • changes in GAAP or SAP rules and guidance, or their interpretation;
  • risks associated with investments to grow our existing businesses, or to pursue new lines of business or new products and services, including our ability and related costs to develop, launch and implement new and innovative technologies and digital products and services, whether these products and services receive broad customer acceptance or disrupt existing customer relationships, and additional financial risks related to these investments, including required changes in our investment, financing and hedging strategies, risks associated with our increased use of financial leverage, which could expose us to liquidity risks resulting from changes in the fair values of assets, and the risk that we may fail to achieve forecasted results, which could result in lower or negative earnings contribution;
  • the effectiveness and security of our information technology systems and digital products and services, including the risk that these systems, products or services fail to operate as expected or planned or expose us to cybersecurity or third-party risks, including due to malware, unauthorized access, cyberattack, ransomware or other similar events;
  • our ability to attract and retain key employees;
  • the amount of dividends, if any, that our insurance subsidiaries may distribute to us, which under applicable regulatory requirements is based primarily on the financial performance of our insurance subsidiaries, and therefore, may be impacted by general economic, competitive and other factors, many of which are beyond our control; and
  • the ability of our operating subsidiaries to distribute amounts to us under our internal tax- and expense-sharing arrangements, which for our insurance subsidiaries are subject to regulatory review and could be terminated at the discretion of such regulators.

For more information regarding these risks and uncertainties as well as certain additional risks that we face, you should refer to “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023, and to subsequent reports and registration statements filed from time to time with the U.S. Securities and Exchange Commission. We caution you not to place undue reliance on these forward-looking statements, which are current only as of the date on which we issued this press release. We do not intend to, and we disclaim any duty or obligation to, update or revise any forward-looking statements to reflect new information or future events or for any other reason.

For Investors

Dan Kobell - Phone: 215.231.1113

email: daniel.kobell@radian.com



For Media

Rashi Iyer - Phone: 215.231.1167

email: rashi.iyer@radian.com

Source: Radian Group Inc.

FAQ

What was Radian's (RDN) net income for Q3 2024?

Radian reported net income of $152 million, or $0.99 per diluted share, for the third quarter of 2024.

How much capital did Radian (RDN) return to shareholders in Q3 2024?

Radian returned $86 million to stockholders through dividends ($37 million) and share repurchases ($49 million) during Q3 2024.

What was Radian's (RDN) book value per share growth in Q3 2024?

Radian's book value per share grew 18% year-over-year to $31.37 as of September 30, 2024.

What was Radian's (RDN) New Insurance Written (NIW) in Q3 2024?

Radian's New Insurance Written was $13.5 billion in the third quarter of 2024.

Radian Group Inc.

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