Radian Announces Third Quarter 2024 Financial Results
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.
- 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
- Slight decrease in net income from $157 million in Q3 2023 to $152 million in Q3 2024
- Decline in return on equity from 15.0% in Q3 2023 to 13.2% in Q3 2024
- Increase in delinquent loans to 22,350 from 20,406 year-over-year
Insights
The Q3 2024 results demonstrate solid financial performance with several positive indicators.
Notable improvements in the balance sheet include reduction of holding company debt-to-capital ratio to
The mortgage insurance portfolio remains healthy with
— Third quarter net income of
— Return on equity of
— Book value per share growth of
— Returned
— Holding company debt-to-capital ratio reduced to
—
— Available holding company liquidity of
Adjusted pretax operating income for the quarter ended September 30, 2024, was
Key Financial Highlights |
|
Quarter ended |
||||
($ in millions, except per-share amounts) |
|
September 30,
|
|
June 30,
|
|
September 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
|
|
|
|
Net income |
|
|
|
|
|
|
Diluted net income per share |
|
|
|
|
|
|
Consolidated pretax income |
|
|
|
|
|
|
Adjusted pretax operating income (1) |
|
|
|
|
|
|
Adjusted diluted net operating income per share (1) (2) |
|
|
|
|
|
|
Return on equity (3) |
|
|
|
|
|
|
Adjusted net operating return on equity (1) (2) |
|
|
|
|
|
|
New Insurance Written (NIW) - mortgage insurance |
|
|
|
|
|
|
Net premiums earned - mortgage insurance |
|
|
|
|
|
|
New defaults |
|
13,708 |
|
11,104 |
|
11,156 |
Provision for losses - mortgage insurance |
|
|
|
|
|
|
|
|
As of |
||||
($ in millions, except per-share amounts) |
|
September 30,
|
|
June 30,
|
|
September 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per share |
|
|
|
|
|
|
Accumulated other comprehensive income (loss) value per share (4) |
|
|
|
|
|
|
PMIERs Available Assets (5) |
|
|
|
|
|
|
PMIERs excess Available Assets (6) |
|
|
|
|
|
|
Available holding company liquidity (7) |
|
|
|
|
|
|
Total investments |
|
|
|
|
|
|
Residential mortgage loans held for sale, at fair value (8) |
|
|
|
|
|
|
Primary mortgage insurance in force |
|
|
|
|
|
|
Percentage of primary loans in default (9) |
|
|
|
|
|
|
Mortgage insurance loss reserves |
|
|
|
|
|
|
(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 |
|
(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 |
|
(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
“We were pleased to deliver another quarter of excellent financial results for Radian, increasing book value per share by
THIRD QUARTER HIGHLIGHTS
-
NIW was
in the third quarter of 2024, compared to$13.5 billion in the second quarter of 2024, and$13.9 billion in the third quarter of 2023.$13.9 billion
-
Purchase NIW decreased
3% in the third quarter of 2024 compared to the second quarter of 2024 and decreased3% compared to the third quarter of 2023. -
Refinances accounted for
4% of total NIW in the third quarter of 2024, compared to2% in the second quarter of 2024, and1% in the third quarter of 2023.
-
Total primary mortgage insurance in force of
as of September 30, 2024, compared to$274.7 billion as of June 30, 2024, and$272.8 billion as of September 30, 2023.$269.5 billion
-
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 to84% for the twelve months ended June 30, 2024, and84% for the twelve months ended September 30, 2023. -
Annualized persistency for the three months ended September 30, 2024, was
84% , compared to84% for the three months ended June 30, 2024, and84% for the three months ended September 30, 2023.
-
Net mortgage insurance premiums earned were
for the third quarter of 2024, compared to$235 million for the second quarter of 2024, and$235 million for the third quarter of 2023.$237 million
- 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
in the third quarter of 2024, compared to a benefit of$6 million in the second quarter of 2024 and a benefit of$2 million in the third quarter of 2023.$8 million
-
Favorable reserve development on prior period defaults was
in the third quarter of 2024, compared to$51 million in the second quarter of 2024 and$50 million in the third quarter of 2023.$55 million - 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
in the third quarter of 2024, compared to$3 million in the second quarter of 2024 and$6 million in the third quarter of 2023.$5 million - 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
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.$6 million - 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
in the third quarter of 2024, compared to$86 million in the second quarter of 2024, and$92 million in the third quarter of 2023.$79 million
-
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
impairment on internal-use software recognized in the third quarter of 2024.$10 million - 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
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$450 million 18.5% as of September 30, 2024. -
As of September 30, 2024, Radian Group maintained
of available liquidity. Total holding company liquidity, including the company’s undrawn$844 million unsecured revolving credit facility, was$275 million as of September 30, 2024.$1.1 billion -
During the third quarter of 2024, the company repurchased 1.5 million shares of Radian Group common stock at a total cost of
. As of September 30, 2024, purchase authority of up to$49 million remained available under the existing program.$618 million -
Radian Group paid a dividend on its common stock in the amount of
per share, totaling$0.24 5 , on September 11, 2024.$37 million
Radian Guaranty
-
Radian Guaranty paid an ordinary dividend to Radian Group of
in the third quarter of 2024, bringing total year-to-date ordinary dividends paid to$185 million .$485 million -
At September 30, 2024, Radian Guaranty’s Available Assets under PMIERs totaled
, resulting in PMIERs excess Available Assets of$6.0 billion .$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
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 |
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
|
|
|
All Other (1) |
|
|
Inter-
|
|
|
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
|
|
|
All Other (1) |
|
|
Inter-
|
|
|
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 |
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 |
|
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) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
16.5 |
% |
|
|
16.5 |
% |
|
|
15.4 |
% |
|
|
15.4 |
% |
|
|
16.5 |
% |
|
|
|
37.1 |
% |
|
|
37.2 |
% |
|
|
40.8 |
% |
|
|
40.0 |
% |
|
|
38.6 |
% |
|
|
|
31.5 |
% |
|
|
32.4 |
% |
|
|
31.3 |
% |
|
|
31.3 |
% |
|
|
30.2 |
% |
|
|
|
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) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
19.5 |
% |
|
|
19.2 |
% |
|
|
18.9 |
% |
|
|
18.6 |
% |
|
|
18.4 |
% |
|
|
|
48.0 |
% |
|
|
48.1 |
% |
|
|
48.2 |
% |
|
|
48.2 |
% |
|
|
48.2 |
% |
|
|
|
27.3 |
% |
|
|
27.3 |
% |
|
|
27.1 |
% |
|
|
27.1 |
% |
|
|
27.0 |
% |
|
|
|
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
-
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
View source version on businesswire.com: https://www.businesswire.com/news/home/20241101415115/en/
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?
How much capital did Radian (RDN) return to shareholders in Q3 2024?
What was Radian's (RDN) book value per share growth in Q3 2024?