8-K - RDN - Equibles

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d)

of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 5, 2025

Radian Group Inc.

(Exact Name of Registrant as Specified in its Charter)

Delaware	1-11356	23-2691170
(State or Other Jurisdiction<br><br>of Incorporation)	(Commission<br><br>File Number)	(IRS Employer<br><br>Identification No.)

550 East Swedesford Road, Suite 350

Wayne, Pennsylvania, 19087

(Address of Principal Executive Offices, and Zip Code)

(215)

231-1000

(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)
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☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading<br>Symbol(s)	Name of each exchange<br><br>on which registered
Common Stock, $0.001 par value per share	RDN	New York Stock Exchange

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 February 5, 2025, Radian Group Inc. (“Radian”) issued a news release announcing its financial results for the quarter and year ended December 31, 2024. 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*	Radian Group Inc. News Release dated February 5, 2025
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: February 6, 2025
	By:	/s/ Sumita Pandit
		Sumita Pandit
		Chief Financial Officer

EX-99.1

Exhibit 99.1

press release
	February 5, 2025

Radian Announces Fourth Quarter and Full Year 2024 Financial Results

— Fourth quarter net income of $148 million, or $0.98 per diluted share —

— Full year net income of $604 million, or $3.92 per diluted share —

— Full year return on equity of 13.4% —

— Book value per share growth of 9% year-over-year to $31.33 —

— Primary mortgage insurance in force increased to an all-time high of $275.1 billion —

— $675 million in ordinary dividends paid from Radian Guaranty to holding company during the year —

— Returned $376 million of capital to stockholders through dividends and share repurchases during the year, including $111 million in the fourth quarter —

WAYNE, PA. February 5, 2025 - Radian Group Inc. (NYSE: RDN) today reported net income for the quarter ended December 31, 2024, of $148 million, or $0.98 per diluted share. This compares with net income for the quarter ended December 31, 2023, of $143 million, or $0.91 per diluted share.

Net income for the full year 2024 was $604 million, or $3.92 per diluted share. This compares with net income for the full year 2023 of $603 million, or $3.77 per diluted share.

Adjusted pretax operating income for the quarter ended December 31, 2024, was $209 million, compared to $192 million for the quarter ended December 31, 2023. Adjusted diluted net operating income per share for the quarter ended December 31, 2024, was $1.09, compared to $0.96 for the quarter ended December 31, 2023.

Adjusted pretax operating income for the full year 2024 was $803 million, compared to $786 million for the full year 2023. Adjusted diluted net operating income per share for the full year 2024 was $4.11, compared to $3.88 for the full year 2023.

Key Financial Highlights	Quarter ended			Year ended
($ in millions, except per-share amounts)	December 31,<br>2024	September 30,<br>2024	December 31,<br>2023	December 31,<br>2024	December 31,<br>2023
Total revenues	$316	$334	$329	$1,290	$1,241
Net income	$148	$152	$143	$604	$603
Diluted net income per share	$0.98	$0.99	$0.91	$3.92	$3.77
Consolidated pretax income	$189	$195	$180	$771	$767
Adjusted pretax operating income (1)	$209	$199	$192	$803	$786
Adjusted diluted net operating income per share (1)	$1.09	$1.03	$0.96	$4.11	$3.88
Return on equity	12.7%	13.2%	13.4%	13.4%	14.5%
Adjusted net operating return on equity (1)	14.2%	13.7%	14.2%	14.1%	14.9%
New Insurance Written (NIW) - mortgage insurance	$13,186	$13,493	$10,629	$51,984	$52,670
Net premiums earned - mortgage insurance	$235	$235	$230	$939	$909
New defaults	13,967	13,708	12,452	50,535	44,007
	As of
---	---	---	---
($ in millions, except per-share amounts)	December 31,<br>2024	September 30,<br>2024	December 31,<br>2023
Book value per share	$31.33	$31.37	$28.71
Accumulated other comprehensive income (loss) value per share	$(2.37)	$(1.56)	$(2.16)
PMIERs Available Assets	$6,039	$5,984	$5,890
PMIERs excess Available Assets	$2,158	$2,122	$2,260
Available holding company liquidity (2)	$885	$844	$992
Total investments	$6,345	$6,497	$6,086
Residential mortgage loans held for sale, at fair value (3)	$520	$530	$33
Primary mortgage insurance in force	$275,126	$274,721	$269,979
Percentage of primary loans in default	2.44%	2.25%	2.20%
Mortgage insurance loss reserves	$354	$357	$365

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.
Represents Radian Group’s available liquidity without considering available capacity under its undrawn $275 million unsecured revolving credit facility.
Included in total investments on our consolidated balance sheets.

Book value per share at December 31, 2024, was $31.33, compared to $31.37 at September 30, 2024, and $28.71 at December 31, 2023. This represents a 9% growth in book value per share at December 31, 2024, as compared to December 31, 2023, and includes accumulated other comprehensive income (loss) of $(2.37) per share as of December 31, 2024, and $(2.16) per share as of December 31, 2023. Changes in accumulated other comprehensive income (loss) are primarily from net unrealized gains or losses on investments as a result of decreases or increases, respectively, in market interest rates.

“We reported another successful year for Radian in 2024, increasing book value per share by 9% year-over-year, generating net income of $604 million, and delivering a return on equity of 13.4%. Our primary mortgage insurance in force, which is the main driver of future earnings for our company, reached a record level of $275 billion dollars,” said Radian’s Chief Executive Officer, Rick Thornberry. “Our results continue to reflect the economic value of our high-quality mortgage insurance portfolio, the strength and quality of our investment portfolio, our strong capital and liquidity positions, our ongoing strategic focus on managing expenses, and our commitment to helping our customers transform risk into opportunity – while also returning value to our stockholders. We look forward to the opportunities ahead in 2025.”

FOURTH QUARTER AND FULL YEAR HIGHLIGHTS

NIW was $13.2 billion in the fourth quarter of 2024, compared to $13.5 billion in the third quarter of 2024, and $10.6 billion in the fourth quarter of 2023. NIW was $52.0 billion for the full year 2024, compared to $52.7 billion for the prior year.
Purchase NIW decreased 5% in the fourth quarter of 2024 compared to the third quarter of 2024 and decreased 8% compared to the fourth quarter of 2023.
Refinances accounted for 10% of total NIW in the fourth quarter of 2024, compared to 4% in the third quarter of 2024, and 1% in the fourth quarter of 2023.
Total primary mortgage insurance in force of $275.1 billion as of December 31, 2024, compared to $274.7 billion as of September 30, 2024, and $270.0 billion as of December 31, 2023.
Persistency, which is the percentage of mortgage insurance that remains in force after a twelve-month period, was 84% for the twelve months ended December 31, 2024, compared to 84% for the twelve months ended September 30, 2024, and 84% for the twelve months ended December 31, 2023.
Annualized persistency for the three months ended December 31, 2024, was 83%, compared to 84% for the three months ended September 30, 2024, and 86% for the three months ended December 31, 2023.
Net mortgage insurance premiums earned were $235 million for the fourth quarter of 2024, compared to $235 million for the third quarter of 2024, and $230 million for the fourth quarter of 2023.
Mortgage insurance in force portfolio premium yield was 38.0 basis points in the fourth quarter of 2024. This compares to 38.2 basis points in the third quarter of 2024 and 38.1 basis points in the fourth quarter of 2023.
Total net mortgage insurance premium yield, which includes the impact of ceded premiums earned and accrued profit commission, was 34.2 basis points in the fourth quarter of 2024. This compares to 34.4 basis points in the third quarter of 2024, and 34.2 basis points in the fourth quarter of 2023.
Details regarding premiums earned may be found in Exhibit D.
The mortgage insurance provision for losses was a de minimis amount in the fourth quarter of 2024, compared to a provision of $6 million in the third quarter of 2024 and a provision of $5 million in the fourth quarter of 2023.
Favorable reserve development on prior period defaults was $56 million in the fourth quarter of 2024, compared to $51 million in the third quarter of 2024 and $49 million in the fourth quarter of 2023.
The number of primary delinquent loans was 24,055 as of December 31, 2024, compared to 22,350 as of September 30, 2024, and 22,021 as of December 31, 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 fourth quarter of 2024 was 0%, compared to 3% in the third quarter of 2024, and 2% in the fourth quarter of 2023.
Total mortgage insurance claims paid were $5 million in the fourth quarter of 2024, compared to $3 million in the third quarter of 2024 and $3 million in the fourth quarter of 2023. For the full year 2024, total net claims paid, which includes the impact of settlements and commutations, were $17 million, compared to $14 million for the full year 2023.
Additional details regarding mortgage insurance provision for losses may be found in Exhibit D.
Other operating expenses were $88 million in the fourth quarter of 2024, compared to $86 million in the third quarter of 2024, and $95 million in the fourth quarter of 2023. Other operating expenses were $348 million for the full year 2024, compared to $348 million for the full year 2023.
Other operating expenses in the fourth quarter of 2024 included $13 million of impairment expenses related to internal-use software and lease-related assets.
Additional details regarding other operating expenses may be found in Exhibit D.

CAPITAL AND LIQUIDITY UPDATE

Radian Group

During the fourth quarter of 2024, the company repurchased 2.2 million shares of Radian Group common stock at a total cost of $75 million. For the full year 2024, the company repurchased 7.0 million shares of Radian Group common stock at a total cost of $224 million. As of December 31, 2024, purchase authority of up to $543 million remained available under the existing program.
Radian Group paid a dividend on its common stock in the amount of $0.245 per share, totaling $36 million, in the fourth quarter of 2024. For the full year 2024, the company paid total dividends of $152 million.
As of December 31, 2024, Radian Group maintained $885 million of available liquidity. Total holding company liquidity, including the company’s undrawn $275 million unsecured revolving credit facility, was $1.2 billion as of December 31, 2024.

Radian Guaranty

Radian Guaranty paid an ordinary dividend to Radian Group of $190 million in the fourth quarter of 2024, bringing total dividends paid during 2024 to $675 million.
At December 31, 2024, Radian Guaranty’s Available Assets under PMIERs totaled $6.0 billion, resulting in PMIERs excess Available Assets of $2.2 billion.

RECENT EVENTS

On January 16, 2025, Fitch Ratings (“Fitch”) upgraded the insurance financial strength (IFS) rating of Radian Guaranty to A from A-. In the same rating action, Fitch also upgraded the senior unsecured debt rating of Radian Group Inc. to BBB from BBB-. The outlook for the ratings is stable.

CONFERENCE CALL

Radian will discuss fourth quarter 2024 financial results in a conference call tomorrow, Thursday, February 6, 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; (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 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: daniel.kobell@radian.com

For Media

Rashi Iyer - Phone: 215.231.1167

email: rashi.iyer@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 (page 1 of 2)

	2024											2023
(In thousands, except per-share amounts)	Qtr 4			Qtr 3		Qtr 2			Qtr 1			Qtr 4
Revenues
Net premiums earned	$	238,562		$	239,133	$	237,731		$	235,857		$	232,649
Services revenue		12,250			12,167		13,265			12,588			12,419
Net investment income		71,310			78,396		73,766			69,221			68,824
Net gains (losses) on investments and other financial instruments		(8,291	)		2,174		(4,487	)		490			13,447
Income (loss) on consolidated VIEs		(467	)		465		—			—			—
Other income		2,497			1,522		872			1,262			1,305
Total revenues		315,861			333,857		321,147			319,418			328,644
Expenses
Provision for losses		(624	)		6,889		(1,745	)		(7,034	)		4,170
Policy acquisition costs		7,276			6,724		6,522			6,794			6,147
Cost of services		9,867			9,542		9,535			9,327			8,950
Other operating expenses		87,703			85,919		91,648			82,636			95,218
Interest expense		22,513			29,391		27,064			29,046			23,169
Impairment of goodwill		—			—		—			—			9,802
Amortization of other acquired intangible assets		—			—		—			—			1,371
Total expenses		126,735			138,465		133,024			120,769			148,827
Pretax income		189,126			195,392		188,123			198,649			179,817
Income tax provision		40,835			43,500		36,220			46,295			37,124
Net income	$	148,291		$	151,892	$	151,903		$	152,354		$	142,693
Diluted net income per share	$	0.98		$	0.99	$	0.98		$	0.98		$	0.91

See Exhibit D for additional details.

Radian Group Inc. and Subsidiaries

Condensed Consolidated Statements of Operations (1)

Exhibit A (page 2 of 2)

	Years Ended December 31,
(In thousands, except per-share amounts)	2024			2023
Revenues
Net premiums earned	$	951,283		$	919,578
Services revenue		50,270			46,092
Net investment income		292,693			258,430
Net gains (losses) on investments and other financial instruments		(10,114	)		10,241
Income (loss) on consolidated VIEs		(2	)		—
Other income		6,153			6,247
Total revenues		1,290,283			1,240,588
Expenses
Provision for losses		(2,514	)		(42,526	)
Policy acquisition costs		27,316			24,578
Cost of services		38,271			38,491
Other operating expenses		347,906			347,578
Interest expense		108,014			89,695
Impairment of goodwill		—			9,802
Amortization of other acquired intangible assets		—			5,483
Total expenses		518,993			473,101
Pretax income		771,290			767,487
Income tax provision		166,850			164,368
Net income	$	604,440		$	603,119
Diluted net income per share	$	3.92		$	3.77

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 4		Qtr 3		Qtr 2		Qtr 1		Qtr 4
Net income—basic and diluted	$	148,291	$	151,892	$	151,903	$	152,354	$	142,693
Average common shares outstanding—basic		150,302		151,846		153,110		153,817		155,318
Dilutive effect of share-based compensation arrangements (1)		1,610		1,227		1,289		2,154		1,909
Adjusted average common shares outstanding—diluted		151,912		153,073		154,399		155,971		157,227
Basic net income per share	$	0.99	$	1.00	$	0.99	$	0.99	$	0.92
Diluted net income per share	$	0.98	$	0.99	$	0.98	$	0.98	$	0.91

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 4		Qtr 3		Qtr 2		Qtr 1		Qtr 4
Shares of common stock equivalents		9		—		64		—		—
	Years Ended December 31,
---	---	---	---	---
(In thousands, except per-share amounts)	2024		2023
Net income—basic and diluted	$	604,440	$	603,119
Average common shares outstanding—basic		152,465		158,140
Dilutive effect of share-based compensation arrangements (1)		1,726		1,993
Adjusted average common shares outstanding—diluted		154,191		160,133
Basic net income per share	$	3.96	$	3.81
Diluted net income per share	$	3.92	$	3.77

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.

	Years Ended December 31,
(In thousands)	2024		2023
Shares of common stock equivalents		11		14

Radian Group Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

Exhibit C

	Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,
(In thousands, except per-share amounts)	2024			2024			2024			2024			2023
Assets
Investments	$	6,345,236		$	6,497,180		$	6,588,149		$	6,327,114		$	6,085,654
Cash		38,823			28,061			13,791			26,993			18,999
Restricted cash		2,649			2,014			1,993			1,832			1,066
Accrued investment income		49,053			49,707			47,607			46,334			45,783
Accounts and notes receivable		128,093			138,439			137,777			130,095			123,857
Reinsurance recoverable		36,433			34,015			31,064			28,151			25,909
Deferred policy acquisition costs		17,746			18,430			18,566			18,561			18,718
Property and equipment, net		27,637			41,892			56,360			60,521			63,822
Prepaid federal income taxes		921,080			870,336			837,736			750,320			750,320
Other assets		375,931			384,666			396,600			369,944			459,805
Consolidated VIE assets (1)		721,307			355,031			—			—			—
Total assets	$	8,663,988		$	8,419,771		$	8,129,643		$	7,759,865		$	7,593,933
Liabilities and stockholders’ equity
Reserve for losses and loss adjustment expense	$	360,326		$	363,225		$	357,470		$	361,833		$	370,148
Unearned premiums		188,337			198,007			206,094			215,124			225,396
Senior notes		1,065,337			1,064,718			1,513,782			1,512,860			1,417,781
Secured borrowings		538,294			551,916			484,665			207,601			119,476
Net deferred tax liability		746,685			737,605			656,113			626,353			589,564
Other liabilities		431,556			457,155			429,200			396,362			473,763
Consolidated VIE liabilities (1)		709,595			348,292			—			—			—
Total liabilities		4,040,130			3,720,918			3,647,324			3,320,133			3,196,128
Common stock		168			171			172			171			173
Treasury stock		(968,246	)		(967,717	)		(967,218	)		(946,202	)		(945,870	)
Additional paid-in capital		1,246,826			1,315,046			1,356,341			1,390,436			1,430,594
Retained earnings		4,695,348			4,584,453			4,470,335			4,357,823			4,243,759
Accumulated other comprehensive income (loss)		(350,238	)		(233,100	)		(377,311	)		(362,496	)		(330,851	)
Total stockholders’ equity		4,623,858			4,698,853			4,482,319			4,439,732			4,397,805
Total liabilities and stockholders’ equity	$	8,663,988		$	8,419,771		$	8,129,643		$	7,759,865		$	7,593,933
Shares outstanding		147,569			149,776			151,148			151,509			153,179
Book value per share	$	31.33		$	31.37		$	29.66		$	29.30		$	28.71
Holding company debt-to-capital ratio (2)		18.7	%		18.5	%		25.2	%		25.4	%		24.4	%

Reflects the consolidation of Radian Mortgage Capital’s private label securitizations, net of our retained interest in these transactions. We determined that we are the primary beneficiary of these securitization trusts, which are each considered to be a variable interest entity (“VIE”), thereby requiring us to consolidate the VIE.
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 4)

Net Premiums Earned
	2024												2023
(In thousands)	Qtr 4			Qtr 3			Qtr 2			Qtr 1			Qtr 4
Direct - Mortgage insurance
Premiums earned, excluding revenue from cancellations	$	261,017		$	261,726		$	259,342		$	258,593		$	256,632
Single Premium Policy cancellations		2,363			1,783			2,076			2,114			2,058
Total direct - Mortgage insurance		263,380			263,509			261,418			260,707			258,690
Ceded - Mortgage insurance
Premiums earned, excluding revenue from cancellations		(43,239	)		(41,894	)		(39,925	)		(38,997	)		(40,065	)
Single Premium Policy cancellations (1)		952			818			732			(112	)		(444	)
Profit commission - other (2)		14,183			12,711			12,593			12,401			12,199
Total ceded premiums - Mortgage insurance		(28,104	)		(28,365	)		(26,600	)		(26,708	)		(28,310	)
Net premiums earned - Mortgage insurance		235,276			235,144			234,818			233,999			230,380
Net premiums earned - Title insurance		3,286			3,989			2,913			1,858			2,269
Net premiums earned	$	238,562		$	239,133		$	237,731		$	235,857		$	232,649

Includes the impact of related profit commissions.
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 4		Qtr 3		Qtr 2		Qtr 1		Qtr 4
Mortgage Insurance
Contract underwriting services	$	261	$	244	$	309	$	210	$	202
All Other
Real estate services		7,733		7,876		8,777		9,193		8,888
Title		3,645		3,427		3,540		2,573		2,713
Real estate technology		611		620		639		612		616
Total services revenue	$	12,250	$	12,167	$	13,265	$	12,588	$	12,419
Net Investment Income
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	2024												2023
(In thousands)	Qtr 4			Qtr 3			Qtr 2			Qtr 1			Qtr 4
Fixed maturities	$	57,238		$	59,348		$	57,924		$	57,259		$	58,669
Equity securities		3,350			3,047			3,067			2,539			3,753
Mortgage loans held for sale		7,537			7,828			5,411			1,793			1,725
Short-term investments		4,478			9,686			8,614			8,958			5,871
Other (1)		(1,293	)		(1,513	)		(1,250	)		(1,328	)		(1,194	)
Net investment income	$	71,310		$	78,396		$	73,766		$	69,221		$	68,824

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

Radian Group Inc. and Subsidiaries

Condensed Consolidated Statements of Operations Detail

Exhibit D (page 2 of 4)

Provision for Losses
	2024												2023
(In thousands)	Qtr 4			Qtr 3			Qtr 2			Qtr 1			Qtr 4
Mortgage insurance
Current period defaults (1)	$	55,795		$	57,032		$	47,918		$	53,688		$	53,981
Prior period defaults (2)		(55,734	)		(50,686	)		(49,687	)		(60,574	)		(49,373	)
Total Mortgage insurance		61			6,346			(1,769	)		(6,886	)		4,608
Title insurance		(685	)		543			24			(148	)		(438	)
Total provision for losses	$	(624	)	$	6,889		$	(1,745	)	$	(7,034	)	$	4,170

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.
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 4			Qtr 3			Qtr 2			Qtr 1			Qtr 4
Salaries and other base employee expenses	$	32,561		$	32,851		$	41,431		$	39,723		$	34,182
Variable and share-based incentive compensation		20,342			17,581			23,223			17,515			20,262
Other general operating expenses (1)		40,385			39,984			31,623			30,262			45,186
Ceding commissions		(6,620	)		(6,276	)		(5,957	)		(5,644	)		(5,327	)
Title agent commissions		1,035			1,779			1,328			780			915
Total	$	87,703		$	85,919		$	91,648		$	82,636		$	95,218

Includes $13 million, $10 million and $14 million in the fourth quarter of 2024, the third quarter of 2024 and the fourth quarter of 2023, respectively, of impairment of long-lived assets, consisting of impairments to our internal-use software and lease-related assets.

Interest Expense
	2024								2023
(In thousands)	Qtr 4		Qtr 3		Qtr 2		Qtr 1		Qtr 4
Senior notes	$	15,791	$	20,945	$	21,156	$	22,128	$	20,335
Mortgage loan financing facilities		5,963		7,500		5,107		1,438		1,421
Loss on extinguishment of debt		—		—		—		4,275		—
FHLB advances		403		538		544		945		1,059
Revolving credit facility		356		408		257		260		354
Total interest expense	$	22,513	$	29,391	$	27,064	$	29,046	$	23,169

Radian Group Inc. and Subsidiaries

Condensed Consolidated Statements of Operations Detail

Exhibit D (page 3 of 4)

Net Premiums Earned
	Years Ended December 31,
(In thousands)	2024			2023
Direct - Mortgage insurance
Premiums earned, excluding revenue from cancellations	$	1,040,678		$	1,015,238
Single Premium Policy cancellations		8,336			14,703
Total direct - Mortgage insurance		1,049,014			1,029,941
Ceded - Mortgage insurance
Premiums earned, excluding revenue from cancellations		(164,055	)		(165,870	)
Single Premium Policy cancellations (1)		2,390			(3,903	)
Profit commission - other (2)		51,888			49,195
Total ceded premiums - Mortgage insurance		(109,777	)		(120,578	)
Net premiums earned - Mortgage insurance		939,237			909,363
Net premiums earned - Title insurance		12,046			10,215
Net premiums earned	$	951,283		$	919,578

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

Services Revenue
	Years Ended December 31,
(In thousands)	2024		2023
Mortgage Insurance
Contract underwriting services	$	1,024	$	1,088
All Other
Real estate services		33,579		30,927
Title		13,185		11,464
Real estate technology		2,482		2,613
Total services revenue	$	50,270	$	46,092
Net Investment Income
---	---	---	---	---	---	---
	Years Ended December 31,
(In thousands)	2024			2023
Fixed maturities	$	231,769		$	226,654
Equity securities		12,003			13,420
Mortgage loans held for sale		22,569			4,212
Short-term investments		31,736			18,840
Other (1)		(5,384	)		(4,696	)
Net investment income	$	292,693		$	258,430

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

Radian Group Inc. and Subsidiaries

Condensed Consolidated Statements of Operations Detail

Exhibit D (page 4 of 4)

Provision for Losses
	Years Ended December 31,
(In thousands)	2024			2023
Mortgage insurance
Current period defaults (1)	$	197,719		$	178,664
Prior period defaults (2)		(199,967	)		(220,800	)
Total Mortgage insurance		(2,248	)		(42,136	)
Title insurance		(266	)		(390	)
Total provision for losses	$	(2,514	)	$	(42,526	)

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.
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
	Years Ended December 31,
(In thousands)	2024			2023
Salaries and other base employee expenses	$	146,565		$	141,550
Variable and share-based incentive compensation		78,661			76,989
Other general operating expenses (1)		142,254			144,516
Ceding commissions		(24,497	)		(19,932	)
Title agent commissions		4,923			4,455
Total	$	347,906		$	347,578

Includes $23 million and $14 million in 2024 and 2023, respectively, of impairment of long-lived assets, consisting of impairments to our internal-use software and lease-related assets.

Interest Expense
	Years Ended December 31,
(In thousands)	2024		2023
Senior notes	$	80,020	$	81,246
Mortgage loan financing facilities		20,008		3,507
Loss on extinguishment of debt		4,275		—
FHLB advances		2,430		3,454
Revolving credit facility		1,281		1,374
Other		—		114
Total interest expense	$	108,014	$	89,695

Radian Group Inc. and Subsidiaries

Segment Information

Exhibit E (page 1 of 5)

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 December 31, 2024
(In thousands)	Mortgage<br>Insurance		All Other (1)			Inter-<br>segment			Total
Net premiums written	$	231,979	$	3,286		$	—		$	235,265
(Increase) decrease in unearned premiums		3,297		—			—			3,297
Net premiums earned		235,276		3,286			—			238,562
Services revenue		262		12,088			(100	)		12,250
Net investment income		51,541		19,769			—			71,310
Net gains (losses) on investments and other financial instruments		—		(1,521	)		—			(1,521	)
Income (loss) on consolidated VIEs		—		(467	)		—			(467	)
Other income		1,707		826			(36	)		2,497
Total		288,786		33,981			(136	)		322,631
Provision for losses		61		(685	)		—			(624	)
Policy acquisition costs		7,276		—			—			7,276
Cost of services		99		9,768			—			9,867
Other operating expenses before allocated corporate operating expenses		15,582		21,644			(136	)		37,090
Interest expense		16,550		5,963			—			22,513
Total		39,568		36,690			(136	)		76,122
Adjusted pretax operating income (loss) before allocated corporate operating expenses		249,218		(2,709	)		—			246,509
Allocation of corporate operating expenses		34,011		3,661			—			37,672
Adjusted pretax operating income (loss) (2)	$	215,207	$	(6,370	)	$	—		$	208,837

Radian Group Inc. and Subsidiaries

Segment Information

Exhibit E (page 2 of 5)

	Three Months Ended December 31, 2023
(In thousands)	Mortgage<br>Insurance		All Other (1)			Inter-<br>segment			Total
Net premiums written	$	225,112	$	2,269		$	—		$	227,381
(Increase) decrease in unearned premiums		5,268		—			—			5,268
Net premiums earned		230,380		2,269			—			232,649
Services revenue		202		12,311			(94	)		12,419
Net investment income		51,061		17,763			—			68,824
Net gains (losses) on investments and other financial instruments		—		356			—			356
Other income		1,302		14			(11	)		1,305
Total		282,945		32,713			(105	)		315,553
Provision for losses		4,608		(438	)		—			4,170
Policy acquisition costs		6,147		—			—			6,147
Cost of services		157		8,793			—			8,950
Other operating expenses before allocated corporate operating expenses		15,559		23,660			(105	)		39,114
Interest expense		21,748		1,421			—			23,169
Total		48,219		33,436			(105	)		81,550
Adjusted pretax operating income (loss) before allocated corporate operating expenses		234,726		(723	)		—			234,003
Allocation of corporate operating expenses		36,929		5,340			—			42,269
Adjusted pretax operating income (loss) (2)	$	197,797	$	(6,063	)	$	—		$	191,734
	Year Ended December 31, 2024
---	---	---	---	---	---	---	---	---	---	---	---	---	---
(In thousands)	Mortgage<br>Insurance			All Other (1)				Inter-<br>segment			Total
Net premiums written	$	930,149		$	12,046			$	—		$	942,195
(Increase) decrease in unearned premiums		9,088			—				—			9,088
Net premiums earned		939,237			12,046				—			951,283
Services revenue		1,025			49,646				(401	)		50,270
Net investment income		201,453			91,240				—			292,693
Net gains (losses) on investments and other financial instruments		—			(5,798	)			—			(5,798	)
Income (loss) on consolidated VIEs		—			(2	)			—			(2	)
Other income		5,649			582				(78	)		6,153
Total		1,147,364			147,714		(3)		(479	)		1,294,599
Provision for losses		(2,248	)		(266	)			—			(2,514	)
Policy acquisition costs		27,316			—				—			27,316
Cost of services		534			37,737				—			38,271
Other operating expenses before allocated corporate operating expenses		66,417			99,106				(479	)		165,044
Interest expense		83,731			20,008				—			103,739
Total		175,750			156,585				(479	)		331,856
Adjusted pretax operating income (loss) before allocated corporate operating expenses		971,614			(8,871	)			—			962,743
Allocation of corporate operating expenses		144,251			15,487				—			159,738
Adjusted pretax operating income (loss) (2)	$	827,363		$	(24,358	)		$	—		$	803,005

Radian Group Inc. and Subsidiaries

Segment Information

Exhibit E (page 3 of 5)

	Year Ended December 31, 2023
(In thousands)	Mortgage<br>Insurance			All Other (1)				Inter-<br>segment			Total
Net premiums written	$	904,240		$	10,215			$	—		$	914,455
(Increase) decrease in unearned premiums		5,123			—				—			5,123
Net premiums earned		909,363			10,215				—			919,578
Services revenue		1,088			45,394				(390	)		46,092
Net investment income		195,077			63,353				—			258,430
Net gains (losses) on investments and other financial instruments		—			814				—			814
Income (loss) on consolidated VIEs		—			—				—			—
Other income		5,372			27				(20	)		5,379
Total		1,110,900			119,803		(3)		(410	)		1,230,293
Provision for losses		(42,136	)		(390	)			—			(42,526	)
Policy acquisition costs		24,578			—				—			24,578
Cost of services		713			37,778				—			38,491
Other operating expenses before allocated corporate operating expenses		71,150			99,030				(410	)		169,770
Interest expense		86,188			3,507				—			89,695
Total		140,493			139,925				(410	)		280,008
Adjusted pretax operating income (loss) before allocated corporate operating expenses		970,407			(20,122	)			—			950,285
Allocation of corporate operating expenses		140,583			23,275				—			163,858
Adjusted pretax operating income (loss) (2)	$	829,824		$	(43,397	)		$	—		$	786,427

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.
See Exhibits F and G for additional information on the use and definition of this term and a reconciliation to consolidated net income.
Details of All Other revenue are as follows.

	Years Ended December 31,
(In thousands)	2024		2023
Holding company (a)	$	63,361	$	57,017
Real estate services		34,868		31,300
Title		27,503		23,662
Mortgage conduit		19,291		5,144
Real estate technology		2,691		2,680
Total	$	147,714	$	119,803

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.

Radian Group Inc. and Subsidiaries

Segment Information

Exhibit E (page 4 of 5)

Mortgage Insurance
	2024										2023
(In thousands)	Qtr 4		Qtr 3		Qtr 2			Qtr 1			Qtr 4
Net premiums written	$	231,979	$	233,648	$	232,645		$	231,877		$	225,112
(Increase) decrease in unearned premiums		3,297		1,496		2,173			2,122			5,268
Net premiums earned		235,276		235,144		234,818			233,999			230,380
Services revenue		262		244		309			210			202
Net investment income		51,541		50,236		50,102			49,574			51,061
Other income		1,707		1,948		754			1,240			1,302
Total		288,786		287,572		285,983			285,023			282,945
Provision for losses		61		6,346		(1,769	)		(6,886	)		4,608
Policy acquisition costs		7,276		6,724		6,522			6,794			6,147
Cost of services		99		126		156			153			157
Other operating expenses before allocated corporate operating expenses		15,582		16,408		17,157			17,270			15,559
Interest expense		16,550		21,891		21,957			23,333			21,748
Total		39,568		51,495		44,023			40,664			48,219
Adjusted pretax operating income before allocated corporate operating expenses		249,218		236,077		241,960			244,359			234,726
Allocation of corporate operating expenses		34,011		32,534		43,197			34,509			36,929
Adjusted pretax operating income (1)	$	215,207	$	203,543	$	198,763		$	209,850		$	197,797
All Other (2)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	2024												2023
(In thousands)	Qtr 4			Qtr 3			Qtr 2			Qtr 1			Qtr 4
Net premiums earned	$	3,286		$	3,989		$	2,913		$	1,858		$	2,269
Services revenue		12,088			12,001			13,064			12,493			12,311
Net investment income		19,769			28,160			23,664			19,647			17,763
Net gains (losses) on investments and other financial instruments		(1,521	)		(4,611	)		(49	)		383			356
Income (loss) on consolidated VIEs		(467	)		465			—			—			—
Other income		826			(399	)		130			25			14
Total (3)		33,981			39,605			39,722			34,406			32,713
Provision for losses		(685	)		543			24			(148	)		(438	)
Cost of services		9,768			9,416			9,379			9,174			8,793
Other operating expenses before allocated corporate operating expenses		21,644			23,583			26,615			27,264			23,660
Interest expense		5,963			7,500			5,107			1,438			1,421
Total		36,690			41,042			41,125			37,728			33,436
Adjusted pretax operating income (loss) before allocated corporate operating expenses		(2,709	)		(1,437	)		(1,403	)		(3,322	)		(723	)
Allocation of corporate operating expenses		3,661			3,438			4,677			3,711			5,340
Adjusted pretax operating income (loss) (1)	$	(6,370	)	$	(4,875	)	$	(6,080	)	$	(7,033	)	$	(6,063	)

Radian Group Inc. and Subsidiaries

Segment Information

Exhibit E (page 5 of 5)

See Exhibits F and G for additional information on the use and definition of this term and a reconciliation to consolidated net income.
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.
Details of All Other revenue are as follows.

	2024								2023
(In thousands)	2024		Qtr 3		Qtr 2		Qtr 1		Qtr 4
Holding company (a)	$	10,670	$	19,113	$	17,042	$	16,536	$	15,374
Real estate services		8,056		8,185		9,110		9,517		9,014
Title		7,486		7,973		7,047		4,997		5,516
Mortgage conduit		7,128		3,658		5,815		2,690		2,171
Real estate technology		641		676		708		666		638
Total	$	33,981	$	39,605	$	39,722	$	34,406	$	32,713

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 4			Qtr 3			Qtr 2			Qtr 1			Qtr 4
Loss ratio (1)		0.0	%		2.7	%		(0.8	)%		(2.9	)%		2.0	%
Expense ratio (2)		24.2	%		23.7	%		28.5	%		25.0	%		25.5	%
	Years Ended December 31,
---	---	---	---	---	---	---
(In thousands)	2024			2023
Loss ratio (1)		(0.2	)%		(4.6	)%
Expense ratio (2)		25.3	%		26.0	%

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

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.

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.

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.
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 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 3)

Reconciliation of Consolidated Pretax Income to Adjusted Pretax Operating Income
	2024															2023
(In thousands)	Qtr 4				Qtr 3				Qtr 2			Qtr 1				Qtr 4
Consolidated pretax income	$	189,126			$	195,392			$	188,123		$	198,649			$	179,817
Less reconciling income (expense) items
Net gains (losses) on investments and other financial instruments (1)		(6,770	)			6,785				(4,438	)		107				13,091
Amortization and impairment of goodwill and other acquired intangible assets		—				—				—			—				(11,173	)
Impairment of other long-lived assets and other non-operating items		(12,941	)	(2)		(10,061	)	(2)		(122	)		(4,275	)	(3)		(13,835	)	(2)
Total adjusted pretax operating income (4)	$	208,837			$	198,668			$	192,683		$	202,817			$	191,734

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).
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.
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.
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 4			Qtr 3			Qtr 2			Qtr 1			Qtr 4
Adjusted pretax operating income (loss)
Mortgage Insurance segment	$	215,207		$	203,543		$	198,763		$	209,850		$	197,797
All Other activities		(6,370	)		(4,875	)		(6,080	)		(7,033	)		(6,063	)
Total adjusted pretax operating income	$	208,837		$	198,668		$	192,683		$	202,817		$	191,734
Reconciliation of Diluted Net Income Per Share to Adjusted Diluted Net Operating Income Per Share
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	2024												2023
	Qtr 4			Qtr 3			Qtr 2			Qtr 1			Qtr 4
Diluted net income per share	$	0.98		$	0.99		$	0.98		$	0.98		$	0.91
Less per-share impact of reconciling income (expense) items
Net gains (losses) on investments and other financial instruments		(0.04	)		0.04			(0.03	)		—			0.08
Amortization and impairment of goodwill and other acquired intangible assets		—			—			—			—			(0.07	)
Impairment of other long-lived assets and other non-operating items		(0.09	)		(0.06	)		—			(0.03	)		(0.09	)
Income tax (provision) benefit on reconciling income (expense) items (1)		0.03			—			—			0.01			0.02
Difference between statutory and effective tax rates		(0.01	)		(0.02	)		0.02			(0.03	)		0.01
Per-share impact of reconciling income (expense) items		(0.11	)		(0.04	)		(0.01	)		(0.05	)		(0.05	)
Adjusted diluted net operating income per share (1)	$	1.09		$	1.03		$	0.99		$	1.03		$	0.96

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

Radian Group Inc. and Subsidiaries

Consolidated Non-GAAP Financial Measure Reconciliations

Exhibit G (page 2 of 3)

Reconciliation of Return on Equity to Adjusted Net Operating Return on Equity (1)
	2024												2023
	Qtr 4			Qtr 3			Qtr 2			Qtr 1			Qtr 4
Return on equity (1)		12.7	%		13.2	%		13.6	%		13.8	%		13.4	%
Less impact of reconciling income (expense) items (2)
Net gains (losses) on investments and other financial instruments		(0.6	)%		0.6	%		(0.4	)%		—	%		1.2	%
Amortization and impairment of goodwill and other acquired intangible assets		—	%		—	%		—	%		—	%		(1.0	)%
Impairment of other long-lived assets and other non-operating items		(1.1	)%		(0.9	)%		—	%		(0.4	)%		(1.3	)%
Income tax (provision) benefit on reconciling income (expense) items (3)		0.3	%		—	%		0.1	%		0.1	%		0.2	%
Difference between statutory and effective tax rates		(0.1	)%		(0.2	)%		0.3	%		(0.4	)%		0.1	%
Impact of reconciling income (expense) items		(1.5	)%		(0.5	)%		—	%		(0.7	)%		(0.8	)%
Adjusted net operating return on equity (3)		14.2	%		13.7	%		13.6	%		14.5	%		14.2	%

Calculated by dividing annualized net income by average stockholders’ equity, based on the average of the beginning and ending balances for each period presented.
Annualized, as a percentage of average stockholders’ equity.
Calculated using the company’s federal statutory tax rate of 21%.

Reconciliation of Consolidated Pretax Income to Adjusted Pretax Operating Income
	Years Ended December 31,
(In thousands)	2024			2023
Consolidated pretax income	$	771,290		$	767,487
Less reconciling income (expense) items
Net gains (losses) on investments and other financial instruments (1)		(4,316	)		9,427
Amortization and impairment of goodwill and other acquired intangible assets		—			(15,285	)
Impairment of other long-lived assets and other non-operating items (2)		(27,399	)		(13,082	)
Total adjusted pretax operating income (3)	$	803,005		$	786,427

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).
Related primarily to impairments of internal-use software and lease-related assets, which are included in other operating expenses on the Condensed Consolidated Statement of Operations in Exhibit A.
Total adjusted pretax operating income consists of adjusted pretax operating income (loss) for our reportable segment and All Other activities as follows.

	Years Ended December 31,
(In thousands)	2024			2023
Adjusted pretax operating income (loss)
Mortgage Insurance segment	$	827,363		$	829,824
All Other activities		(24,358	)		(43,397	)
Total adjusted pretax operating income	$	803,005		$	786,427

Radian Group Inc. and Subsidiaries

Consolidated Non-GAAP Financial Measure Reconciliations

Exhibit G (page 3 of 3)

Reconciliation of Diluted Net Income Per Share to Adjusted Diluted Net Operating Income Per Share
	Years Ended December 31,
	2024			2023
Diluted net income per share	$	3.92		$	3.77
Less per-share impact of reconciling income (expense) items
Net gains (losses) on investments and other financial instruments		(0.03	)		0.06
Amortization and impairment of goodwill and other acquired intangible assets		—			(0.09	)
Impairment of other long-lived assets and other non-operating items		(0.17	)		(0.08	)
Income tax (provision) benefit on reconciling income (expense) items (1)		0.04			0.02
Difference between statutory and effective tax rates		(0.03	)		(0.02	)
Per-share impact of reconciling income (expense) items		(0.19	)		(0.11	)
Adjusted diluted net operating income per share (1)	$	4.11		$	3.88

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

Reconciliation of Return on Equity to Adjusted Net Operating Return on Equity (1)
	Years Ended December 31,
	2024			2023
Return on equity (1)		13.4	%		14.5	%
Less impact of reconciling income (expense) items (2)
Net gains (losses) on investments and other financial instruments		(0.1	)%		0.2	%
Amortization and impairment of goodwill and other acquired intangible assets		—	%		(0.3	)%
Impairment of other long-lived assets and other non-operating items		(0.6	)%		(0.3	)%
Income tax (provision) benefit on reconciling income (expense) items (3)		0.1	%		0.1	%
Difference between statutory and effective tax rates		(0.1	)%		(0.1	)%
Impact of reconciling income (expense) items		(0.7	)%		(0.4	)%
Adjusted net operating return on equity (3)		14.1	%		14.9	%

Calculated by dividing net income by average stockholders’ equity.
As a percentage of average stockholders’ equity.
Calculated using the company’s federal statutory tax rate of 21%.

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

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

Radian Group Inc. and Subsidiaries

Mortgage Insurance Supplemental Information - New Insurance Written

Exhibit H

	2024												2023
($ in millions)	Qtr 4			Qtr 3			Qtr 2			Qtr 1			Qtr 4
NIW	$	13,186		$	13,493		$	13,902		$	11,534		$	10,629
NIW by premium type
Direct monthly and other recurring premiums		96.4	%		95.9	%		96.5	%		96.7	%		96.4	%
Direct single premiums		3.6	%		4.1	%		3.5	%		3.3	%		3.6	%
NIW for purchases		90.4	%		95.6	%		98.3	%		96.9	%		98.8	%
NIW for refinances		9.6	%		4.4	%		1.7	%		3.1	%		1.2	%
NIW by FICO score (1)
>=740		71.7	%		69.5	%		69.4	%		67.3	%		66.5	%
680-739		23.3	%		24.8	%		25.5	%		27.1	%		27.9	%
620-679		5.0	%		5.7	%		5.1	%		5.6	%		5.6	%
<=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		15.9	%		16.5	%		16.5	%		15.4	%		15.4	%
90.01% to 95.00%		37.5	%		37.1	%		37.2	%		40.8	%		40.0	%
85.01% to 90.00%		31.7	%		31.5	%		32.4	%		31.3	%		31.3	%
85.00% and below		14.9	%		14.9	%		13.9	%		12.5	%		13.3	%
Total NIW		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

For loans with multiple borrowers, the percentage of NIW by FICO score represents the lowest of the borrowers’ FICO scores at origination.
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 4			Qtr 3			Qtr 2			Qtr 1			Qtr 4
Primary insurance in force	$	275,126		$	274,721		$	272,827		$	270,986		$	269,979
Primary risk in force (“RIF”)	$	72,074		$	71,834		$	71,109		$	70,299		$	69,710
Primary RIF by premium type
Direct monthly and other recurring premiums		90.0	%		89.8	%		89.5	%		89.2	%		88.9	%
Direct single premiums		10.0	%		10.2	%		10.5	%		10.8	%		11.1	%
Primary RIF by FICO score (1)
>=740		60.1	%		59.6	%		59.2	%		58.8	%		58.5	%
680-739		32.6	%		33.0	%		33.3	%		33.6	%		33.9	%
620-679		7.0	%		7.1	%		7.2	%		7.3	%		7.3	%
<=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		19.8	%		19.5	%		19.2	%		18.9	%		18.6	%
90.01% to 95.00%		47.9	%		48.0	%		48.1	%		48.2	%		48.2	%
85.01% to 90.00%		27.3	%		27.3	%		27.3	%		27.1	%		27.1	%
85.00% and below		5.0	%		5.2	%		5.4	%		5.8	%		6.1	%
Total RIF		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
Persistency Rate (12 months ended)		83.6	%		84.4	%		84.3	%		84.3	%		84.0	%
Persistency Rate (quarterly, annualized) (3)		82.7	%		84.1	%		83.5	%		85.3	%		85.8	%

For loans with multiple borrowers, the percentage of primary RIF by FICO score represents the lowest of the borrowers’ FICO scores at origination.
At origination.
The Persistency Rate on a quarterly, annualized basis is calculated based on loan-level detail for the quarter ending as of the date shown. It may be impacted by seasonality or other factors, including the level of refinance activity during the applicable periods and may not be indicative of full-year trends.

FORWARD-LOOKING STATEMENTS

All statements in this press release that address events, developments or results that we expect or anticipate may occur in the future are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the U.S. Private Securities Litigation Reform Act of 1995. In most cases, forward-looking statements may be identified by words such as “anticipate,” “may,” “will,” “could,” “should,” “would,” “expect,” “intend,” “plan,” “goal,” “contemplate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “seek,” “strategy,” “future,” “likely” or the negative or other variations on these words and other similar expressions. These statements, which may include, without limitation, projections regarding our future performance and financial condition, are made on the basis of management’s current views and assumptions with respect to future events. These statements speak only as of the date they were made, and we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. We operate in a changing environment where new risks emerge from time to time and it is not possible for us to predict all risks that may affect us. The forward-looking statements are not guarantees of future performance, and the forward-looking statements, as well as our prospects as a whole, are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements. These risks and uncertainties include, without limitation:

the health of the U.S. housing market generally and changes in economic conditions that impact the size of the insurable mortgage market, the credit performance of our insured mortgage portfolio, the returns on our investments in residential mortgage loans acquired through our Mortgage Conduit business and other investments held in our investment portfolio, as well as our business prospects, including: changes resulting from inflationary pressures, the interest rate environment and the risk of higher unemployment rates; other macroeconomic stresses and uncertainties, including potential impacts resulting from the recent change in Presidential administrations and other 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;
changes in the current housing finance system in the United States, including the roles and areas of primary focus 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, traditional reinsurance markets or other strategies, 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 and the impact of Presidential Executive Orders 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, 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 acquire, 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 and other potential 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, develop and retain key employees;
the amount of dividends, if any, that our insurance subsidiaries may distribute to us, which under applicable regulatory requirements is based primarily on the financial performance of our insurance subsidiaries, and therefore, may be impacted by general economic, competitive and other factors, many of which are beyond our control; and
the ability of our operating subsidiaries to distribute amounts to us under our internal tax- and expense-sharing arrangements, which for our insurance subsidiaries are subject to regulatory review and could be terminated at the discretion of such regulators.

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