RDN 8-K
Radian Group Inc (RDN)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM
CURRENT REPORT
Pursuant to Section 13 OR 15(d)
of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
(Exact Name of Registrant as Specified in its Charter)
|
|
|||
(State or Other Jurisdiction of Incorporation) |
|
(Commission File Number) |
|
(IRS Employer Identification No.) |
(Address of Principal Executive Offices, and Zip Code)
(Registrant’s Telephone Number, Including Area Code)
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
|
Trading |
|
Name of each exchange on which registered |
|
|
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On July 30, 2025, Radian Group Inc. (“Radian”) issued a news release announcing its financial results for the quarter ended June 30, 2025. A copy of this news release is furnished as Exhibit 99.1 to this report.
The information included in this Item 2.02 of, or furnished with, this report shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”), nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
99.1* |
|
|
|
|
|
104 |
|
Cover Page Interactive Data File (embedded within the Inline XBRL document) |
* Furnished herewith.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
|
|
|
|
|
|
RADIAN GROUP INC. |
|
|
|
|
|
|
(Registrant) |
|
|
|
|
|||
Date: July 31, 2025 |
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
By: |
|
/s/ Sumita Pandit |
|
|
|
|
|
|
Sumita Pandit |
|
|
|
|
|
|
President and Chief Financial Officer |
Exhibit 99.1
|
press release |
July 30, 2025 |
|
|
|
Radian Announces Second Quarter 2025 Financial Results
— Second quarter net income of $142 million, or $1.02 per diluted share —
— Book value per share growth of 12% year-over-year to $33.18 —
— Primary mortgage insurance in force grew year-over-year to another all-time high of $276.7 billion —
— Default rate declined from prior quarter, driven by continued favorable credit trends —
— $200 million ordinary dividend paid from Radian Guaranty to holding company during second quarter —
— Repurchased $223 million of shares during the second quarter and paid $35 million of dividends —
WAYNE, PA. July 30, 2025 - Radian Group Inc. (NYSE: RDN) today reported net income for the quarter ended June 30, 2025, of $142 million, or $1.02 per diluted share. This compares with net income for the quarter ended June 30, 2024, of $152 million, or $0.98 per diluted share.
Consolidated pretax income for the quarter ended June 30, 2025, was $175 million compared to $188 million for the quarter ended June 30, 2024. Adjusted pretax operating income for the quarter ended June 30, 2025, was $173 million compared to $193 million for the quarter ended June 30, 2024. Adjusted diluted net operating income per share for the quarter ended June 30, 2025, was $1.01 compared to $1.01 for the quarter ended June 30, 2024.
Key Financial Highlights |
|
Quarter ended |
||||
($ in millions, except per-share amounts) |
|
June 30, |
|
March 31, |
|
June 30, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
$318 |
|
$318 |
|
$321 |
Net income |
|
$142 |
|
$145 |
|
$152 |
Diluted net income per share |
|
$1.02 |
|
$0.98 |
|
$0.98 |
Consolidated pretax income |
|
$175 |
|
$188 |
|
$188 |
Adjusted pretax operating income (1) |
|
$173 |
|
$191 |
|
$193 |
Adjusted diluted net operating income per share (1) |
|
$1.01 |
|
$0.99 |
|
$1.01 |
Return on equity |
|
12.5% |
|
12.6% |
|
13.6% |
Adjusted net operating return on equity (1) |
|
12.4% |
|
12.7% |
|
13.9% |
New insurance written - mortgage insurance |
|
$14,330 |
|
$9,489 |
|
$13,902 |
Net premiums earned - mortgage insurance |
|
$234 |
|
$234 |
|
$235 |
New defaults |
|
11,467 |
|
12,505 |
|
11,104 |
|
|
As of |
||||
($ in millions, except per-share amounts) |
|
June 30, |
|
March 31, |
|
June 30, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per share |
|
$33.18 |
|
$32.48 |
|
$29.66 |
Accumulated other comprehensive income (loss) value per share |
|
$(2.02) |
|
$(2.09) |
|
$(2.50) |
PMIERs Available Assets |
|
$6,021 |
|
$6,022 |
|
$5,978 |
PMIERs excess Available Assets |
|
$2,035 |
|
$2,094 |
|
$2,206 |
Available holding company liquidity (2) |
|
$784 |
|
$834 |
|
$1,190 |
Total investments (3) |
|
$6,485 |
|
$6,114 |
|
$6,588 |
Residential mortgage loans held for sale, at fair value (3) |
|
$698 |
|
$279 |
|
$458 |
Primary mortgage insurance in force |
|
$276,745 |
|
$274,159 |
|
$272,827 |
Percentage of primary loans in default |
|
2.27% |
|
2.33% |
|
2.04% |
Mortgage insurance loss reserves |
|
$377 |
|
$369 |
|
$351 |
Book value per share at June 30, 2025, was $33.18 compared to $32.48 at March 31, 2025, and $29.66 at June 30, 2024. This represents a 12% growth in book value per share at June 30, 2025, as compared to June 30, 2024, and includes accumulated other comprehensive income (loss) of $(2.02) per share as of June 30, 2025, and $(2.50) per share as of June 30, 2024. 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 reported strong performance for Radian in the second quarter, increasing book value per share by 12% year-over-year, generating net income of $142 million and delivering a return on equity of 12.5%. Our primary mortgage insurance in force, a key driver of future earnings for our company, grew to another all-time high of $277 billion,” said Radian’s Chief Executive Officer Rick Thornberry. “Since 1977, Radian has helped more than 8.5 million families achieve their dream of homeownership in an affordable, responsible and sustainable way and we remain committed to creating long-term value for our customers, communities and stockholders.”
SECOND QUARTER HIGHLIGHTS
CAPITAL AND LIQUIDITY UPDATE
Radian Group
Radian Guaranty
CONFERENCE CALL
Radian will discuss second quarter 2025 financial results in a conference call tomorrow, Thursday, July 31, 2025, at 11:00 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 and (ii) 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, among others. Adjusted diluted net operating income (loss) per share is calculated by dividing adjusted pretax operating income (loss), net of taxes computed using the company’s effective 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 effective 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 a catalyst for homeownership that transforms risk into opportunity through services and technologies that empower housing and capital market participants to act with confidence. The Radian family of companies is shaping the future of mortgage and real estate services through products and services that include industry-leading mortgage insurance and a comprehensive suite of mortgage, risk, real estate and title services. Visit www.radian.com to see how we’re creating possibilities for a place to call home.
Contact:
For Investors
Dan Kobell - Phone: 215.231.1113
email: [email protected]
For Media
Rashi Iyer - Phone: 215.231.1167
email: [email protected]
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
|
|
2025 |
|
|
2024 |
|
||||||||||||||
(In thousands, except per-share amounts) |
|
Qtr 2 |
|
|
Qtr 1 |
|
|
Qtr 4 |
|
|
Qtr 3 |
|
|
Qtr 2 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net premiums earned |
|
$ |
237,520 |
|
|
$ |
236,679 |
|
|
$ |
238,562 |
|
|
$ |
239,133 |
|
|
$ |
237,731 |
|
Services revenue |
|
|
10,924 |
|
|
|
12,116 |
|
|
|
12,250 |
|
|
|
12,167 |
|
|
|
13,265 |
|
Net investment income |
|
|
72,769 |
|
|
|
68,574 |
|
|
|
71,310 |
|
|
|
78,396 |
|
|
|
73,766 |
|
Net gains (losses) on investments and other financial instruments |
|
|
(4,852 |
) |
|
|
(723 |
) |
|
|
(8,291 |
) |
|
|
2,174 |
|
|
|
(4,487 |
) |
Income (loss) on consolidated VIEs |
|
|
185 |
|
|
|
428 |
|
|
|
(467 |
) |
|
|
465 |
|
|
|
— |
|
Other income |
|
|
1,458 |
|
|
|
1,040 |
|
|
|
2,497 |
|
|
|
1,522 |
|
|
|
872 |
|
Total revenues |
|
|
318,004 |
|
|
|
318,114 |
|
|
|
315,861 |
|
|
|
333,857 |
|
|
|
321,147 |
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Provision for losses |
|
|
12,097 |
|
|
|
15,167 |
|
|
|
(624 |
) |
|
|
6,889 |
|
|
|
(1,745 |
) |
Policy acquisition costs |
|
|
7,205 |
|
|
|
6,388 |
|
|
|
7,276 |
|
|
|
6,724 |
|
|
|
6,522 |
|
Cost of services |
|
|
8,418 |
|
|
|
8,771 |
|
|
|
9,867 |
|
|
|
9,542 |
|
|
|
9,535 |
|
Other operating expenses |
|
|
89,397 |
|
|
|
76,849 |
|
|
|
87,703 |
|
|
|
85,919 |
|
|
|
91,648 |
|
Interest expense |
|
|
25,874 |
|
|
|
22,499 |
|
|
|
22,513 |
|
|
|
29,391 |
|
|
|
27,064 |
|
Total expenses |
|
|
142,991 |
|
|
|
129,674 |
|
|
|
126,735 |
|
|
|
138,465 |
|
|
|
133,024 |
|
Pretax income |
|
|
175,013 |
|
|
|
188,440 |
|
|
|
189,126 |
|
|
|
195,392 |
|
|
|
188,123 |
|
Income tax provision |
|
|
33,217 |
|
|
|
43,882 |
|
|
|
40,835 |
|
|
|
43,500 |
|
|
|
36,220 |
|
Net income |
|
$ |
141,796 |
|
|
$ |
144,558 |
|
|
$ |
148,291 |
|
|
$ |
151,892 |
|
|
$ |
151,903 |
|
Diluted net income per share |
|
$ |
1.02 |
|
|
$ |
0.98 |
|
|
$ |
0.98 |
|
|
$ |
0.99 |
|
|
$ |
0.98 |
|
Radian Group Inc. and Subsidiaries
Net Income Per Share
Exhibit B
The calculation of basic and diluted net income per share is as follows.
|
|
2025 |
|
|
2024 |
|
||||||||||||||
(In thousands, except per-share amounts) |
|
Qtr 2 |
|
|
Qtr 1 |
|
|
Qtr 4 |
|
|
Qtr 3 |
|
|
Qtr 2 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net income—basic and diluted |
|
$ |
141,796 |
|
|
$ |
144,558 |
|
|
$ |
148,291 |
|
|
$ |
151,892 |
|
|
$ |
151,903 |
|
Average common shares outstanding—basic |
|
|
137,376 |
|
|
|
145,618 |
|
|
|
150,302 |
|
|
|
151,846 |
|
|
|
153,110 |
|
Dilutive effect of share-based compensation arrangements (1) |
|
|
984 |
|
|
|
2,109 |
|
|
|
1,610 |
|
|
|
1,227 |
|
|
|
1,289 |
|
Adjusted average common shares outstanding—diluted |
|
|
138,360 |
|
|
|
147,727 |
|
|
|
151,912 |
|
|
|
153,073 |
|
|
|
154,399 |
|
Basic net income per share |
|
$ |
1.03 |
|
|
$ |
0.99 |
|
|
$ |
0.99 |
|
|
$ |
1.00 |
|
|
$ |
0.99 |
|
Diluted net income per share |
|
$ |
1.02 |
|
|
$ |
0.98 |
|
|
$ |
0.98 |
|
|
$ |
0.99 |
|
|
$ |
0.98 |
|
|
|
2025 |
|
|
2024 |
|
||||||||||||||
(In thousands) |
|
Qtr 2 |
|
|
Qtr 1 |
|
|
Qtr 4 |
|
|
Qtr 3 |
|
|
Qtr 2 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Shares of common stock equivalents |
|
|
2 |
|
|
|
24 |
|
|
|
9 |
|
|
|
— |
|
|
|
64 |
|
Radian Group Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
Exhibit C
|
|
Jun 30, |
|
|
Mar 31, |
|
|
Dec 31, |
|
|
Sep 30, |
|
|
Jun 30, |
|
|||||
(In thousands, except per-share amounts) |
|
2025 |
|
|
2025 |
|
|
2024 |
|
|
2024 |
|
|
2024 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Investments |
|
$ |
6,484,692 |
|
|
$ |
6,113,792 |
|
|
$ |
6,345,236 |
|
|
$ |
6,497,180 |
|
|
$ |
6,588,149 |
|
Cash |
|
|
22,090 |
|
|
|
24,182 |
|
|
|
38,823 |
|
|
|
28,061 |
|
|
|
13,791 |
|
Restricted cash |
|
|
105 |
|
|
|
4,168 |
|
|
|
2,649 |
|
|
|
2,014 |
|
|
|
1,993 |
|
Accrued investment income |
|
|
50,542 |
|
|
|
44,378 |
|
|
|
49,053 |
|
|
|
49,707 |
|
|
|
47,607 |
|
Accounts and notes receivable |
|
|
130,020 |
|
|
|
127,741 |
|
|
|
128,093 |
|
|
|
138,439 |
|
|
|
137,777 |
|
Reinsurance recoverable |
|
|
43,652 |
|
|
|
40,227 |
|
|
|
36,433 |
|
|
|
34,015 |
|
|
|
31,064 |
|
Deferred policy acquisition costs |
|
|
17,248 |
|
|
|
17,855 |
|
|
|
17,746 |
|
|
|
18,430 |
|
|
|
18,566 |
|
Property and equipment, net |
|
|
23,516 |
|
|
|
25,576 |
|
|
|
27,637 |
|
|
|
41,892 |
|
|
|
56,360 |
|
Prepaid federal income taxes |
|
|
997,805 |
|
|
|
921,080 |
|
|
|
921,080 |
|
|
|
870,336 |
|
|
|
837,736 |
|
Other assets |
|
|
408,675 |
|
|
|
381,846 |
|
|
|
375,931 |
|
|
|
384,666 |
|
|
|
396,600 |
|
Consolidated VIE assets (1) |
|
|
1,402,312 |
|
|
|
1,064,541 |
|
|
|
721,307 |
|
|
|
355,031 |
|
|
|
— |
|
Total assets |
|
$ |
9,580,657 |
|
|
$ |
8,765,386 |
|
|
$ |
8,663,988 |
|
|
$ |
8,419,771 |
|
|
$ |
8,129,643 |
|
Liabilities and stockholders’ equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Reserve for losses and loss adjustment expense |
|
$ |
383,103 |
|
|
$ |
374,945 |
|
|
$ |
360,326 |
|
|
$ |
363,225 |
|
|
$ |
357,470 |
|
Unearned premiums |
|
|
171,901 |
|
|
|
178,931 |
|
|
|
188,337 |
|
|
|
198,007 |
|
|
|
206,094 |
|
Senior notes |
|
|
1,066,603 |
|
|
|
1,065,965 |
|
|
|
1,065,337 |
|
|
|
1,064,718 |
|
|
|
1,513,782 |
|
Secured borrowings |
|
|
762,933 |
|
|
|
272,667 |
|
|
|
538,294 |
|
|
|
551,916 |
|
|
|
484,665 |
|
Net deferred tax liability |
|
|
841,376 |
|
|
|
804,149 |
|
|
|
746,685 |
|
|
|
737,605 |
|
|
|
656,113 |
|
Other liabilities |
|
|
490,165 |
|
|
|
442,188 |
|
|
|
431,556 |
|
|
|
457,155 |
|
|
|
429,200 |
|
Consolidated VIE liabilities (1) |
|
|
1,371,895 |
|
|
|
1,039,715 |
|
|
|
709,595 |
|
|
|
348,292 |
|
|
|
— |
|
Total liabilities |
|
|
5,087,976 |
|
|
|
4,178,560 |
|
|
|
4,040,130 |
|
|
|
3,720,918 |
|
|
|
3,647,324 |
|
Common stock |
|
|
157 |
|
|
|
162 |
|
|
|
168 |
|
|
|
171 |
|
|
|
172 |
|
Treasury stock |
|
|
(988,764 |
) |
|
|
(969,396 |
) |
|
|
(968,246 |
) |
|
|
(967,717 |
) |
|
|
(967,218 |
) |
Additional paid-in capital |
|
|
847,399 |
|
|
|
1,048,738 |
|
|
|
1,246,826 |
|
|
|
1,315,046 |
|
|
|
1,356,341 |
|
Retained earnings |
|
|
4,906,830 |
|
|
|
4,802,038 |
|
|
|
4,695,348 |
|
|
|
4,584,453 |
|
|
|
4,470,335 |
|
Accumulated other comprehensive income (loss) |
|
|
(272,941 |
) |
|
|
(294,716 |
) |
|
|
(350,238 |
) |
|
|
(233,100 |
) |
|
|
(377,311 |
) |
Total stockholders’ equity |
|
|
4,492,681 |
|
|
|
4,586,826 |
|
|
|
4,623,858 |
|
|
|
4,698,853 |
|
|
|
4,482,319 |
|
Total liabilities and stockholders’ equity |
|
$ |
9,580,657 |
|
|
$ |
8,765,386 |
|
|
$ |
8,663,988 |
|
|
$ |
8,419,771 |
|
|
$ |
8,129,643 |
|
Shares outstanding |
|
|
135,395 |
|
|
|
141,220 |
|
|
|
147,569 |
|
|
|
149,776 |
|
|
|
151,148 |
|
Book value per share |
|
$ |
33.18 |
|
|
$ |
32.48 |
|
|
$ |
31.33 |
|
|
$ |
31.37 |
|
|
$ |
29.66 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Holding company debt-to-capital ratio (2) |
|
|
19.2 |
% |
|
|
18.9 |
% |
|
|
18.7 |
% |
|
|
18.5 |
% |
|
|
25.2 |
% |
Radian Group Inc. and Subsidiaries
Condensed Consolidated Statements of Operations Detail
Exhibit D (page 1 of 2)
Net Premiums Earned |
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
2025 |
|
|
2024 |
|
||||||||||||||
(In thousands) |
|
Qtr 2 |
|
|
Qtr 1 |
|
|
Qtr 4 |
|
|
Qtr 3 |
|
|
Qtr 2 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Direct - Mortgage insurance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Premiums earned, excluding revenue from cancellations |
|
$ |
260,336 |
|
|
$ |
260,705 |
|
|
$ |
261,017 |
|
|
$ |
261,726 |
|
|
$ |
259,342 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Single Premium Policy cancellations |
|
|
1,708 |
|
|
|
1,206 |
|
|
|
2,363 |
|
|
|
1,783 |
|
|
|
2,076 |
|
Total direct - Mortgage insurance |
|
|
262,044 |
|
|
|
261,911 |
|
|
|
263,380 |
|
|
|
263,509 |
|
|
|
261,418 |
|
Ceded - Mortgage insurance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Premiums earned, excluding revenue from cancellations |
|
|
(43,849 |
) |
|
|
(42,288 |
) |
|
|
(43,239 |
) |
|
|
(41,894 |
) |
|
|
(39,925 |
) |
Single Premium Policy cancellations (1) |
|
|
1,328 |
|
|
|
902 |
|
|
|
952 |
|
|
|
818 |
|
|
|
732 |
|
Profit commission - other (2) |
|
|
14,003 |
|
|
|
13,519 |
|
|
|
14,183 |
|
|
|
12,711 |
|
|
|
12,593 |
|
Total ceded premiums - Mortgage insurance |
|
|
(28,518 |
) |
|
|
(27,867 |
) |
|
|
(28,104 |
) |
|
|
(28,365 |
) |
|
|
(26,600 |
) |
Net premiums earned - Mortgage insurance |
|
|
233,526 |
|
|
|
234,044 |
|
|
|
235,276 |
|
|
|
235,144 |
|
|
|
234,818 |
|
Net premiums earned - Title insurance |
|
|
3,994 |
|
|
|
2,635 |
|
|
|
3,286 |
|
|
|
3,989 |
|
|
|
2,913 |
|
Net premiums earned |
|
$ |
237,520 |
|
|
$ |
236,679 |
|
|
$ |
238,562 |
|
|
$ |
239,133 |
|
|
$ |
237,731 |
|
Services Revenue |
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
2025 |
|
|
2024 |
|
||||||||||||||
(In thousands) |
|
Qtr 2 |
|
|
Qtr 1 |
|
|
Qtr 4 |
|
|
Qtr 3 |
|
|
Qtr 2 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Mortgage Insurance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Contract underwriting services |
|
$ |
42 |
|
|
$ |
173 |
|
|
$ |
261 |
|
|
$ |
244 |
|
|
$ |
309 |
|
All Other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Real estate services |
|
|
6,187 |
|
|
|
8,055 |
|
|
|
7,733 |
|
|
|
7,876 |
|
|
|
8,777 |
|
Title |
|
|
4,013 |
|
|
|
3,261 |
|
|
|
3,645 |
|
|
|
3,427 |
|
|
|
3,540 |
|
Real estate technology |
|
|
682 |
|
|
|
627 |
|
|
|
611 |
|
|
|
620 |
|
|
|
639 |
|
Total services revenue |
|
$ |
10,924 |
|
|
$ |
12,116 |
|
|
$ |
12,250 |
|
|
$ |
12,167 |
|
|
$ |
13,265 |
|
Net Investment Income |
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
2025 |
|
|
2024 |
|
||||||||||||||
(In thousands) |
|
Qtr 2 |
|
|
Qtr 1 |
|
|
Qtr 4 |
|
|
Qtr 3 |
|
|
Qtr 2 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Fixed maturities |
|
$ |
57,835 |
|
|
$ |
56,714 |
|
|
$ |
57,238 |
|
|
$ |
59,348 |
|
|
$ |
57,924 |
|
Equity securities |
|
|
2,634 |
|
|
|
2,145 |
|
|
|
3,350 |
|
|
|
3,047 |
|
|
|
3,067 |
|
Residential mortgage loans held for sale |
|
|
10,064 |
|
|
|
6,273 |
|
|
|
7,537 |
|
|
|
7,828 |
|
|
|
5,411 |
|
Short-term investments |
|
|
3,409 |
|
|
|
4,751 |
|
|
|
4,478 |
|
|
|
9,686 |
|
|
|
8,614 |
|
Other (1) |
|
|
(1,173 |
) |
|
|
(1,309 |
) |
|
|
(1,293 |
) |
|
|
(1,513 |
) |
|
|
(1,250 |
) |
Net investment income |
|
$ |
72,769 |
|
|
$ |
68,574 |
|
|
$ |
71,310 |
|
|
$ |
78,396 |
|
|
$ |
73,766 |
|
Radian Group Inc. and Subsidiaries
Condensed Consolidated Statements of Operations Detail
Exhibit D (page 2 of 2)
Provision for Losses |
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
2025 |
|
|
2024 |
|
||||||||||||||
(In thousands) |
|
Qtr 2 |
|
|
Qtr 1 |
|
|
Qtr 4 |
|
|
Qtr 3 |
|
|
Qtr 2 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Mortgage insurance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Current period defaults (1) |
|
$ |
47,912 |
|
|
$ |
53,740 |
|
|
$ |
55,795 |
|
|
$ |
57,032 |
|
|
$ |
47,918 |
|
Prior period defaults (2) |
|
|
(35,958 |
) |
|
|
(38,400 |
) |
|
|
(55,734 |
) |
|
|
(50,686 |
) |
|
|
(49,687 |
) |
Total Mortgage insurance |
|
|
11,954 |
|
|
|
15,340 |
|
|
|
61 |
|
|
|
6,346 |
|
|
|
(1,769 |
) |
Title insurance |
|
|
143 |
|
|
|
(173 |
) |
|
|
(685 |
) |
|
|
543 |
|
|
|
24 |
|
Total provision for losses |
|
$ |
12,097 |
|
|
$ |
15,167 |
|
|
$ |
(624 |
) |
|
$ |
6,889 |
|
|
$ |
(1,745 |
) |
Other Operating Expenses |
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
2025 |
|
|
2024 |
|
||||||||||||||
(In thousands) |
|
Qtr 2 |
|
|
Qtr 1 |
|
|
Qtr 4 |
|
|
Qtr 3 |
|
|
Qtr 2 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Salaries and other base employee expenses |
|
$ |
36,025 |
|
|
$ |
36,038 |
|
|
$ |
32,561 |
|
|
$ |
32,851 |
|
|
$ |
41,431 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Variable and share-based incentive compensation |
|
|
30,779 |
|
|
|
18,174 |
|
|
|
20,342 |
|
|
|
17,581 |
|
|
|
23,223 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Other general operating expenses (1) |
|
|
28,352 |
|
|
|
28,475 |
|
|
|
40,385 |
|
|
|
39,984 |
|
|
|
31,623 |
|
Ceding commissions |
|
|
(7,075 |
) |
|
|
(6,723 |
) |
|
|
(6,620 |
) |
|
|
(6,276 |
) |
|
|
(5,957 |
) |
Title agent commissions |
|
|
1,317 |
|
|
|
885 |
|
|
|
1,035 |
|
|
|
1,779 |
|
|
|
1,328 |
|
Total |
|
$ |
89,398 |
|
|
$ |
76,849 |
|
|
$ |
87,703 |
|
|
$ |
85,919 |
|
|
$ |
91,648 |
|
Interest Expense |
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
2025 |
|
|
2024 |
|
||||||||||||||
(In thousands) |
|
Qtr 2 |
|
|
Qtr 1 |
|
|
Qtr 4 |
|
|
Qtr 3 |
|
|
Qtr 2 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Senior notes |
|
$ |
15,810 |
|
|
$ |
15,800 |
|
|
$ |
15,791 |
|
|
$ |
20,945 |
|
|
$ |
21,156 |
|
Mortgage loan financing facilities |
|
|
8,446 |
|
|
|
6,010 |
|
|
|
5,963 |
|
|
|
7,500 |
|
|
|
5,107 |
|
FHLB advances |
|
|
877 |
|
|
|
425 |
|
|
|
403 |
|
|
|
538 |
|
|
|
544 |
|
Revolving credit facility |
|
|
741 |
|
|
|
264 |
|
|
|
356 |
|
|
|
408 |
|
|
|
257 |
|
Total interest expense |
|
$ |
25,874 |
|
|
$ |
22,499 |
|
|
$ |
22,513 |
|
|
$ |
29,391 |
|
|
$ |
27,064 |
|
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 June 30, 2025 |
|
|||||||||||||
(In thousands) |
|
Mortgage |
|
|
All Other (1) |
|
|
Inter- |
|
|
Total |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net premiums written |
|
$ |
231,596 |
|
|
$ |
3,994 |
|
|
$ |
— |
|
|
$ |
235,590 |
|
(Increase) decrease in unearned premiums |
|
|
1,930 |
|
|
|
— |
|
|
|
— |
|
|
|
1,930 |
|
Net premiums earned |
|
|
233,526 |
|
|
|
3,994 |
|
|
|
— |
|
|
|
237,520 |
|
Services revenue |
|
|
41 |
|
|
|
10,990 |
|
|
|
(107 |
) |
|
|
10,924 |
|
Net investment income |
|
|
53,288 |
|
|
|
19,481 |
|
|
|
— |
|
|
|
72,769 |
|
Net gains (losses) on investments and other financial instruments |
|
|
— |
|
|
|
(6,704 |
) |
|
|
— |
|
|
|
(6,704 |
) |
Income (loss) on consolidated VIEs |
|
|
— |
|
|
|
185 |
|
|
|
— |
|
|
|
185 |
|
Other income |
|
|
1,461 |
|
|
|
(3 |
) |
|
|
— |
|
|
|
1,458 |
|
Total |
|
|
288,316 |
|
|
|
27,943 |
|
|
|
(107 |
) |
|
|
316,152 |
|
Provision for losses |
|
|
11,954 |
|
|
|
143 |
|
|
|
— |
|
|
|
12,097 |
|
Policy acquisition costs |
|
|
7,205 |
|
|
|
— |
|
|
|
— |
|
|
|
7,205 |
|
Cost of services |
|
|
5 |
|
|
|
8,413 |
|
|
|
— |
|
|
|
8,418 |
|
Other operating expenses before allocated corporate operating expenses |
|
|
19,874 |
|
|
|
22,701 |
|
|
|
(107 |
) |
|
|
42,468 |
|
Interest expense |
|
|
17,428 |
|
|
|
8,446 |
|
|
|
— |
|
|
|
25,874 |
|
Total |
|
|
56,466 |
|
|
|
39,703 |
|
|
|
(107 |
) |
|
|
96,062 |
|
Adjusted pretax operating income (loss) before allocated corporate operating expenses |
|
|
231,850 |
|
|
|
(11,760 |
) |
|
|
— |
|
|
|
220,090 |
|
Allocation of corporate operating expenses |
|
|
42,328 |
|
|
|
4,601 |
|
|
|
— |
|
|
|
46,929 |
|
Adjusted pretax operating income (loss) (2) |
|
$ |
189,522 |
|
|
$ |
(16,361 |
) |
|
$ |
— |
|
|
$ |
173,161 |
|
Radian Group Inc. and Subsidiaries
Segment Information
Exhibit E (page 2 of 4)
|
|
Three Months Ended June 30, 2024 |
|
|||||||||||||
(In thousands) |
|
Mortgage |
|
|
All Other (1) |
|
|
Inter- |
|
|
Total |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net premiums written |
|
$ |
232,645 |
|
|
$ |
2,913 |
|
|
$ |
— |
|
|
$ |
235,558 |
|
(Increase) decrease in unearned premiums |
|
|
2,173 |
|
|
|
— |
|
|
|
— |
|
|
|
2,173 |
|
Net premiums earned |
|
|
234,818 |
|
|
|
2,913 |
|
|
|
— |
|
|
|
237,731 |
|
Services revenue |
|
|
309 |
|
|
|
13,064 |
|
|
|
(108 |
) |
|
|
13,265 |
|
Net investment income |
|
|
50,102 |
|
|
|
23,664 |
|
|
|
— |
|
|
|
73,766 |
|
Net gains (losses) on investments and other financial instruments |
|
|
— |
|
|
|
(49 |
) |
|
|
— |
|
|
|
(49 |
) |
Other income |
|
|
754 |
|
|
|
130 |
|
|
|
(12 |
) |
|
|
872 |
|
Total |
|
|
285,983 |
|
|
|
39,722 |
|
|
|
(120 |
) |
|
|
325,585 |
|
Provision for losses |
|
|
(1,769 |
) |
|
|
24 |
|
|
|
— |
|
|
|
(1,745 |
) |
Policy acquisition costs |
|
|
6,522 |
|
|
|
— |
|
|
|
— |
|
|
|
6,522 |
|
Cost of services |
|
|
156 |
|
|
|
9,379 |
|
|
|
— |
|
|
|
9,535 |
|
Other operating expenses before allocated corporate operating expenses |
|
|
17,157 |
|
|
|
26,615 |
|
|
|
(120 |
) |
|
|
43,652 |
|
Interest expense |
|
|
21,957 |
|
|
|
5,107 |
|
|
|
— |
|
|
|
27,064 |
|
Total |
|
|
44,023 |
|
|
|
41,125 |
|
|
|
(120 |
) |
|
|
85,028 |
|
Adjusted pretax operating income (loss) before allocated corporate operating expenses |
|
|
241,960 |
|
|
|
(1,403 |
) |
|
|
— |
|
|
|
240,557 |
|
Allocation of corporate operating expenses |
|
|
43,197 |
|
|
|
4,677 |
|
|
|
— |
|
|
|
47,874 |
|
Adjusted pretax operating income (loss) (2) |
|
$ |
198,763 |
|
|
$ |
(6,080 |
) |
|
$ |
— |
|
|
$ |
192,683 |
|
Radian Group Inc. and Subsidiaries
Segment Information
Exhibit E (page 3 of 4)
Mortgage Insurance |
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
2025 |
|
|
2024 |
|
||||||||||||||
(In thousands) |
|
Qtr 2 |
|
|
Qtr 1 |
|
|
Qtr 4 |
|
|
Qtr 3 |
|
|
Qtr 2 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net premiums written |
|
$ |
231,596 |
|
|
$ |
230,250 |
|
|
$ |
231,979 |
|
|
$ |
233,648 |
|
|
$ |
232,645 |
|
(Increase) decrease in unearned premiums |
|
|
1,930 |
|
|
|
3,794 |
|
|
|
3,297 |
|
|
|
1,496 |
|
|
|
2,173 |
|
Net premiums earned |
|
|
233,526 |
|
|
|
234,044 |
|
|
|
235,276 |
|
|
|
235,144 |
|
|
|
234,818 |
|
Services revenue |
|
|
41 |
|
|
|
174 |
|
|
|
262 |
|
|
|
244 |
|
|
|
309 |
|
Net investment income |
|
|
53,288 |
|
|
|
48,451 |
|
|
|
51,541 |
|
|
|
50,236 |
|
|
|
50,102 |
|
Other income |
|
|
1,461 |
|
|
|
1,629 |
|
|
|
1,707 |
|
|
|
1,948 |
|
|
|
754 |
|
Total |
|
|
288,316 |
|
|
|
284,298 |
|
|
|
288,786 |
|
|
|
287,572 |
|
|
|
285,983 |
|
Provision for losses |
|
|
11,954 |
|
|
|
15,340 |
|
|
|
61 |
|
|
|
6,346 |
|
|
|
(1,769 |
) |
Policy acquisition costs |
|
|
7,205 |
|
|
|
6,388 |
|
|
|
7,276 |
|
|
|
6,724 |
|
|
|
6,522 |
|
Cost of services |
|
|
5 |
|
|
|
98 |
|
|
|
99 |
|
|
|
126 |
|
|
|
156 |
|
Other operating expenses before allocated corporate operating expenses |
|
|
19,874 |
|
|
|
16,567 |
|
|
|
15,582 |
|
|
|
16,408 |
|
|
|
17,157 |
|
Interest expense |
|
|
17,428 |
|
|
|
16,489 |
|
|
|
16,550 |
|
|
|
21,891 |
|
|
|
21,957 |
|
Total |
|
|
56,466 |
|
|
|
54,882 |
|
|
|
39,568 |
|
|
|
51,495 |
|
|
|
44,023 |
|
Adjusted pretax operating income before allocated corporate operating expenses |
|
|
231,850 |
|
|
|
229,416 |
|
|
|
249,218 |
|
|
|
236,077 |
|
|
|
241,960 |
|
Allocation of corporate operating expenses |
|
|
42,328 |
|
|
|
35,123 |
|
|
|
34,011 |
|
|
|
32,534 |
|
|
|
43,197 |
|
Adjusted pretax operating income (1) |
|
$ |
189,522 |
|
|
$ |
194,293 |
|
|
$ |
215,207 |
|
|
$ |
203,543 |
|
|
$ |
198,763 |
|
All Other (2) |
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
2025 |
|
|
2024 |
|
||||||||||||||
(In thousands) |
|
Qtr 2 |
|
|
Qtr 1 |
|
|
Qtr 4 |
|
|
Qtr 3 |
|
|
Qtr 2 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net premiums earned |
|
$ |
3,994 |
|
|
$ |
2,635 |
|
|
$ |
3,286 |
|
|
$ |
3,989 |
|
|
$ |
2,913 |
|
Services revenue |
|
|
10,990 |
|
|
|
12,033 |
|
|
|
12,088 |
|
|
|
12,001 |
|
|
|
13,064 |
|
Net investment income |
|
|
19,481 |
|
|
|
20,123 |
|
|
|
19,769 |
|
|
|
28,160 |
|
|
|
23,664 |
|
Net gains (losses) on investments and other financial instruments |
|
|
(6,704 |
) |
|
|
1,287 |
|
|
|
(1,521 |
) |
|
|
(4,611 |
) |
|
|
(49 |
) |
Income (loss) on consolidated VIEs |
|
|
185 |
|
|
|
428 |
|
|
|
(467 |
) |
|
|
465 |
|
|
|
— |
|
Other income |
|
|
(3 |
) |
|
|
(568 |
) |
|
|
826 |
|
|
|
(399 |
) |
|
|
130 |
|
Total (3) |
|
|
27,943 |
|
|
|
35,938 |
|
|
|
33,981 |
|
|
|
39,605 |
|
|
|
39,722 |
|
Provision for losses |
|
|
143 |
|
|
|
(173 |
) |
|
|
(685 |
) |
|
|
543 |
|
|
|
24 |
|
Cost of services |
|
|
8,413 |
|
|
|
8,673 |
|
|
|
9,768 |
|
|
|
9,416 |
|
|
|
9,379 |
|
Other operating expenses before allocated corporate operating expenses |
|
|
22,701 |
|
|
|
21,102 |
|
|
|
21,644 |
|
|
|
23,583 |
|
|
|
26,615 |
|
Interest expense |
|
|
8,446 |
|
|
|
6,010 |
|
|
|
5,963 |
|
|
|
7,500 |
|
|
|
5,107 |
|
Total |
|
|
39,703 |
|
|
|
35,612 |
|
|
|
36,690 |
|
|
|
41,042 |
|
|
|
41,125 |
|
Adjusted pretax operating income (loss) before allocated corporate operating expenses |
|
|
(11,760 |
) |
|
|
326 |
|
|
|
(2,709 |
) |
|
|
(1,437 |
) |
|
|
(1,403 |
) |
Allocation of corporate operating expenses |
|
|
4,601 |
|
|
|
3,785 |
|
|
|
3,661 |
|
|
|
3,438 |
|
|
|
4,677 |
|
Adjusted pretax operating income (loss) (1) |
|
$ |
(16,361 |
) |
|
$ |
(3,459 |
) |
|
$ |
(6,370 |
) |
|
$ |
(4,875 |
) |
|
$ |
(6,080 |
) |
Radian Group Inc. and Subsidiaries
Segment Information
Exhibit E (page 4 of 4)
|
|
2025 |
|
|
2024 |
|
||||||||||||||
(In thousands) |
|
Qtr 2 |
|
|
Qtr 1 |
|
|
Qtr 4 |
|
|
Qtr 3 |
|
|
Qtr 2 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Holding company (a) |
|
$ |
8,383 |
|
|
$ |
12,560 |
|
|
$ |
10,670 |
|
|
$ |
19,113 |
|
|
$ |
17,042 |
|
Real estate services |
|
|
6,476 |
|
|
|
8,345 |
|
|
|
8,056 |
|
|
|
8,185 |
|
|
|
9,110 |
|
Title |
|
|
8,550 |
|
|
|
6,405 |
|
|
|
7,486 |
|
|
|
7,973 |
|
|
|
7,047 |
|
Mortgage conduit |
|
|
3,813 |
|
|
|
7,978 |
|
|
|
7,128 |
|
|
|
3,658 |
|
|
|
5,815 |
|
Real estate technology |
|
|
721 |
|
|
|
650 |
|
|
|
641 |
|
|
|
676 |
|
|
|
708 |
|
Total |
|
$ |
27,943 |
|
|
$ |
35,938 |
|
|
$ |
33,981 |
|
|
$ |
39,605 |
|
|
$ |
39,722 |
|
Selected Mortgage Insurance Key Ratios |
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
2025 |
|
|
2024 |
|
||||||||||||||
(In thousands) |
|
Qtr 2 |
|
|
Qtr 1 |
|
|
Qtr 4 |
|
|
Qtr 3 |
|
|
Qtr 2 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Loss ratio (1) |
|
|
5.1 |
% |
|
|
6.6 |
% |
|
|
0.0 |
% |
|
|
2.7 |
% |
|
|
(0.8 |
)% |
Expense ratio (2) |
|
|
29.7 |
% |
|
|
24.8 |
% |
|
|
24.2 |
% |
|
|
23.7 |
% |
|
|
28.5 |
% |
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.
Beginning with the first quarter of 2025, when calculating adjusted diluted net operating income per share and adjusted net operating return on equity, the company no longer adjusts for the difference between the company’s statutory and effective tax rates to calculate those non-GAAP financial measures using the company’s federal statutory tax rate of 21%. The impact of this incremental adjustment for the difference between the company’s statutory and effective tax rates has been immaterial in recent periods because the number and magnitude of non-recurring fluctuations in the company’s effective tax rate have declined in recent years. As such, the company believes that this incremental adjustment for the difference between the two rates is no longer meaningful to users of our financial statements. We have reflected this change in our calculations of adjusted diluted net operating income per share and adjusted net operating return on equity for all periods presented herein. As it relates to the impact of reconciling income (expense) items included in these non-GAAP financial measures, the company continues to reflect these items on a gross basis and calculates the income tax provision (benefit) of these items using the company’s federal statutory tax rate of 21%.
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 and (ii) 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, among others. Adjusted diluted net operating income (loss) per share is calculated by dividing adjusted pretax operating income (loss), net of taxes computed using the company’s effective 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 effective 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.
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.
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 are not measures of overall profitability, and therefore, should not be considered in isolation or viewed as substitutes for GAAP pretax income (loss), diluted net income (loss) per share or return on equity. 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.
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 |
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
2025 |
|
|
2024 |
|
||||||||||||||
(In thousands) |
|
Qtr 2 |
|
|
Qtr 1 |
|
|
Qtr 4 |
|
|
Qtr 3 |
|
|
Qtr 2 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Consolidated pretax income |
|
$ |
175,013 |
|
|
$ |
188,440 |
|
|
$ |
189,126 |
|
|
$ |
195,392 |
|
|
$ |
188,123 |
|
Less reconciling income (expense) items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net gains (losses) on investments and other financial instruments (1) |
|
|
1,852 |
|
|
|
(2,010 |
) |
|
|
(6,770 |
) |
|
|
6,785 |
|
|
|
(4,438 |
) |
Impairment of other long-lived assets and other non-operating items |
|
|
— |
|
|
|
(384 |
) |
|
|
(12,941 |
) |
(2) |
|
(10,061 |
) |
(2) |
|
(122 |
) |
Total adjusted pretax operating income (3) |
|
$ |
173,161 |
|
|
$ |
190,834 |
|
|
$ |
208,837 |
|
|
$ |
198,668 |
|
|
$ |
192,683 |
|
|
|
2025 |
|
|
2024 |
|
||||||||||||||
(In thousands) |
|
Qtr 2 |
|
|
Qtr 1 |
|
|
Qtr 4 |
|
|
Qtr 3 |
|
|
Qtr 2 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Adjusted pretax operating income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Mortgage Insurance segment |
|
$ |
189,522 |
|
|
$ |
194,293 |
|
|
$ |
215,207 |
|
|
$ |
203,543 |
|
|
$ |
198,763 |
|
All Other activities |
|
|
(16,361 |
) |
|
|
(3,459 |
) |
|
|
(6,370 |
) |
|
|
(4,875 |
) |
|
|
(6,080 |
) |
Total adjusted pretax operating income |
|
$ |
173,161 |
|
|
$ |
190,834 |
|
|
$ |
208,837 |
|
|
$ |
198,668 |
|
|
$ |
192,683 |
|
Reconciliation of Diluted Net Income Per Share to Adjusted Diluted Net Operating Income Per Share |
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
2025 |
|
|
2024 |
|
||||||||||||||
|
|
Qtr 2 |
|
|
Qtr 1 |
|
|
Qtr 4 |
|
|
Qtr 3 |
|
|
Qtr 2 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Diluted net income per share |
|
$ |
1.02 |
|
|
$ |
0.98 |
|
|
$ |
0.98 |
|
|
$ |
0.99 |
|
|
$ |
0.98 |
|
Less per-share impact of reconciling income (expense) items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net gains (losses) on investments and other financial instruments |
|
|
0.01 |
|
|
|
(0.01 |
) |
|
|
(0.04 |
) |
|
|
0.04 |
|
|
|
(0.03 |
) |
Impairment of other long-lived assets and other non-operating items |
|
|
— |
|
|
|
— |
|
|
|
(0.09 |
) |
|
|
(0.06 |
) |
|
|
— |
|
Income tax (provision) benefit on reconciling income (expense) items (1) |
|
|
— |
|
|
|
— |
|
|
|
0.03 |
|
|
|
— |
|
|
|
— |
|
Per-share impact of reconciling income (expense) items |
|
|
0.01 |
|
|
|
(0.01 |
) |
|
|
(0.10 |
) |
|
|
(0.02 |
) |
|
|
(0.03 |
) |
Adjusted diluted net operating income per share |
|
$ |
1.01 |
|
|
$ |
0.99 |
|
|
$ |
1.08 |
|
|
$ |
1.01 |
|
|
$ |
1.01 |
|
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) |
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
2025 |
|
|
2024 |
|
||||||||||||||
|
|
Qtr 2 |
|
|
Qtr 1 |
|
|
Qtr 4 |
|
|
Qtr 3 |
|
|
Qtr 2 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Return on equity (1) |
|
|
12.5 |
% |
|
|
12.6 |
% |
|
|
12.7 |
% |
|
|
13.2 |
% |
|
|
13.6 |
% |
Less impact of reconciling income (expense) items (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net gains (losses) on investments and other financial instruments |
|
|
0.1 |
% |
|
|
(0.2 |
)% |
|
|
(0.6 |
)% |
|
|
0.6 |
% |
|
|
(0.4 |
)% |
Impairment of other long-lived assets and other non-operating items |
|
|
— |
% |
|
|
— |
% |
|
|
(1.1 |
)% |
|
|
(0.9 |
)% |
|
|
— |
% |
Income tax (provision) benefit on reconciling income (expense) items (3) |
|
|
— |
% |
|
|
0.1 |
% |
|
|
0.3 |
% |
|
|
— |
% |
|
|
0.1 |
% |
Impact of reconciling income (expense) items |
|
|
0.1 |
% |
|
|
(0.1 |
)% |
|
|
(1.4 |
)% |
|
|
(0.3 |
)% |
|
|
(0.3 |
)% |
Adjusted net operating return on equity |
|
|
12.4 |
% |
|
|
12.7 |
% |
|
|
14.1 |
% |
|
|
13.5 |
% |
|
|
13.9 |
% |
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, including a change made beginning with the first quarter of 2025 to the calculations of adjusted diluted net operating income per share and adjusted net operating return on equity.
Radian Group Inc. and Subsidiaries
Mortgage Insurance Supplemental Information - New Insurance Written
Exhibit H
|
|
|
2025 |
|
|
2024 |
|
||||||||||||||
($ in millions) |
|
|
Qtr 2 |
|
|
Qtr 1 |
|
|
Qtr 4 |
|
|
Qtr 3 |
|
|
Qtr 2 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
NIW |
|
|
$ |
14,330 |
|
|
$ |
9,489 |
|
|
$ |
13,186 |
|
|
$ |
13,493 |
|
|
$ |
13,902 |
|
NIW by premium type |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Direct monthly and other recurring premiums |
|
|
|
96.4 |
% |
|
|
96.4 |
% |
|
|
96.4 |
% |
|
|
95.9 |
% |
|
|
96.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Direct single premiums |
|
|
|
3.6 |
% |
|
|
3.6 |
% |
|
|
3.6 |
% |
|
|
4.1 |
% |
|
|
3.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
NIW for purchases |
|
|
|
94.6 |
% |
|
|
95.6 |
% |
|
|
90.4 |
% |
|
|
95.6 |
% |
|
|
98.3 |
% |
NIW for refinances |
|
|
|
5.4 |
% |
|
|
4.4 |
% |
|
|
9.6 |
% |
|
|
4.4 |
% |
|
|
1.7 |
% |
NIW by FICO score (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
>=740 |
|
|
|
68.2 |
% |
|
|
68.1 |
% |
|
|
71.7 |
% |
|
|
69.5 |
% |
|
|
69.4 |
% |
680-739 |
|
|
|
27.0 |
% |
|
|
27.0 |
% |
|
|
23.3 |
% |
|
|
24.8 |
% |
|
|
25.5 |
% |
620-679 |
|
|
|
4.8 |
% |
|
|
4.9 |
% |
|
|
5.0 |
% |
|
|
5.7 |
% |
|
|
5.1 |
% |
<=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 |
|
|
|
16.7 |
% |
|
|
15.6 |
% |
|
|
15.9 |
% |
|
|
16.5 |
% |
|
|
16.5 |
% |
90.01% to 95.00% |
|
|
|
44.0 |
% |
|
|
41.5 |
% |
|
|
37.5 |
% |
|
|
37.1 |
% |
|
|
37.2 |
% |
85.01% to 90.00% |
|
|
|
30.1 |
% |
|
|
32.3 |
% |
|
|
31.7 |
% |
|
|
31.5 |
% |
|
|
32.4 |
% |
85.00% and below |
|
|
|
9.2 |
% |
|
|
10.6 |
% |
|
|
14.9 |
% |
|
|
14.9 |
% |
|
|
13.9 |
% |
Total NIW |
|
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
100.0 |
% |
Radian Group Inc. and Subsidiaries
Mortgage Insurance Supplemental Information - Primary Insurance in Force and Risk in Force
Exhibit I
|
|
2025 |
|
|
2024 |
|
||||||||||||||
($ in millions) |
|
Qtr 2 |
|
|
Qtr 1 |
|
|
Qtr 4 |
|
|
Qtr 3 |
|
|
Qtr 2 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Primary IIF |
|
$ |
276,745 |
|
|
$ |
274,159 |
|
|
$ |
275,126 |
|
|
$ |
274,721 |
|
|
$ |
272,827 |
|
Primary RIF |
|
$ |
72,820 |
|
|
$ |
71,958 |
|
|
$ |
72,074 |
|
|
$ |
71,834 |
|
|
$ |
71,109 |
|
Primary RIF by premium type |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Direct monthly and other recurring premiums |
|
|
90.3 |
% |
|
|
90.1 |
% |
|
|
90.0 |
% |
|
|
89.8 |
% |
|
|
89.5 |
% |
Direct single premiums |
|
|
9.7 |
% |
|
|
9.9 |
% |
|
|
10.0 |
% |
|
|
10.2 |
% |
|
|
10.5 |
% |
Primary RIF by FICO score (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
>=740 |
|
|
60.6 |
% |
|
|
60.3 |
% |
|
|
60.1 |
% |
|
|
59.6 |
% |
|
|
59.2 |
% |
680-739 |
|
|
32.2 |
% |
|
|
32.4 |
% |
|
|
32.6 |
% |
|
|
33.0 |
% |
|
|
33.3 |
% |
620-679 |
|
|
6.9 |
% |
|
|
7.0 |
% |
|
|
7.0 |
% |
|
|
7.1 |
% |
|
|
7.2 |
% |
<=619 |
|
|
0.3 |
% |
|
|
0.3 |
% |
|
|
0.3 |
% |
|
|
0.3 |
% |
|
|
0.3 |
% |
Total RIF |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
100.0 |
% |
Primary RIF by LTV (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
95.01% and above |
|
|
20.2 |
% |
|
|
20.0 |
% |
|
|
19.8 |
% |
|
|
19.5 |
% |
|
|
19.2 |
% |
90.01% to 95.00% |
|
|
48.0 |
% |
|
|
47.9 |
% |
|
|
47.9 |
% |
|
|
48.0 |
% |
|
|
48.1 |
% |
85.01% to 90.00% |
|
|
27.1 |
% |
|
|
27.3 |
% |
|
|
27.3 |
% |
|
|
27.3 |
% |
|
|
27.3 |
% |
85.00% and below |
|
|
4.7 |
% |
|
|
4.8 |
% |
|
|
5.0 |
% |
|
|
5.2 |
% |
|
|
5.4 |
% |
Total RIF |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
100.0 |
% |
Persistency Rate (12 months ended) |
|
|
83.8 |
% |
|
|
83.7 |
% |
|
|
83.6 |
% |
|
|
84.4 |
% |
|
|
84.3 |
% |
Persistency Rate (quarterly, annualized) (3) |
|
|
83.8 |
% |
|
|
85.7 |
% |
|
|
82.7 |
% |
|
|
84.1 |
% |
|
|
83.5 |
% |
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:
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, 2024, 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.
###