RDN 8-K

Radian Group Inc (RDN)

8-K 2021-08-04 For: 2021-08-03

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Added on April 04, 2026

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Delaware		001-11356		23-2691170
(State or Other Jurisdiction of Incorporation)		(Commission File Number)		(IRS Employer Identification No.)

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

	RADIAN GROUP INC.
	(Registrant)


Date: August 4, 2021	By:	/s/ J. Franklin Hall
		J. Franklin Hall
		Senior Executive Vice President and Chief
		Financial Officer

	Quarter ended
	June 30, 2021	March 31, 2021	June 30, 2020
Net income (loss) ⁽¹⁾	$155.2	$125.6	($30.0)
Diluted net income (loss) per share	$0.80	$0.64	($0.15)
Consolidated pretax income (loss)	$195.5	$161.2	($42.2)
Adjusted pretax operating income (loss) ⁽²⁾	$184.7	$167.3	($88.5)
Adjusted diluted net operating income (loss) per share ⁽²⁾⁽³⁾	$0.75	$0.68	($0.36)
Return on equity ⁽¹⁾⁽⁴⁾	14.5%	11.8%	(3.1)%
Adjusted net operating return on equity ⁽²⁾⁽³⁾	13.6%	12.4%	(7.1)%
New Insurance Written (NIW) - mortgage insurance	$21,662	$20,161	$25,459
Net premiums earned - mortgage insurance	$247.1	$264.7	$247.6
New defaults ⁽⁵⁾	8,145	11,851	63,005
Provision for losses - mortgage insurance	$3.3	$45.9	$304.0
Book value per share ⁽⁶⁾	$23.02	$22.14	$20.82
PMIERs Available Assets ⁽⁷⁾	$5,042	$4,909	$4,229
PMIERs excess Available Assets ⁽⁸⁾	$1,857	$1,451	$1,002
Total Holding Company Liquidity ⁽⁹⁾	$1,191	$1,292	$1,404
Total investments	$6,682	$6,672	$6,431
Primary mortgage insurance in force	$237,302	$238,921	$241,306
Percentage of primary loans in default ⁽¹⁰⁾	4.0%	4.9%	6.5%
Mortgage insurance loss reserves	$881	$883	$735
homegenius revenues	$33.5	$25.8	$22.5

(1)		Net income for the second quarter of 2021 includes a pretax net gain on investments and other financial instruments of $15.7 million, compared to a pretax net loss on investments and other financial instruments of $5.2 million in the first quarter of 2021 and a pretax net gain on investments and other financial instruments for the second quarter of 2020 of $47.3 million.
(2)		Adjusted results, including 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. For definitions and reconciliations of these measures to the comparable GAAP measures, see Exhibits F and G.
(3)		Calculated using the company’s statutory tax rate of 21 percent.
(4)		Calculated by dividing annualized net income by average stockholders' equity, based on the average of the beginning and ending balances for each period presented.
(5)		Represents the number of new defaults reported during the period on loans related to primary mortgage insurance policies.
(6)		Book value per share includes accumulated other comprehensive income (loss) of $0.95 as of June 30, 2021, $0.61 as of March 31, 2021 and $1.11 as of June 30, 2020.
(7)		Represents Radian Guaranty’s Available Assets, calculated in accordance with the Private Mortgage Insurer Eligibility Requirements (PMIERs) financial requirements in effect for each date shown.
(8)		Represents Radian Guaranty’s excess or "cushion" of Available Assets over its Minimum Required Assets, calculated in accordance with the PMIERs financial requirements in effect for each date shown.
(9)		Represents Radian Group's total liquidity, including the $35 million minimum liquidity requirement and available capacity under its unsecured revolving credit facility.
(10)		Represents the number of primary loans in default as a percentage of the total number of insured primary loans.

RDN 8-K

Radian Announces Second Quarter 2021 Financial Results

Contacts


1500 Market Street, Philadelphia, Pennsylvania, 19102
(Address of Principal Executive Offices, and Zip Code)

	July 2021	June 2021	May 2021	April 2021
Beginning primary default inventory (# of loans)	40,464	42,802	45,689	50,106
New defaults	2,749	2,680	2,714	2,751
Cures	(4,728)	(4,980)	(5,573)	(7,128)
Claims paid	(141)	(29)	(32)	(37)
Rescissions and Claim Denials, net⁽¹⁾	3	(9)	4	(3)
Ending primary default inventory	38,347	40,464	42,802	45,689

(1)		Net of any previous Rescissions and Claim Denials that were reinstated during the period. Such reinstated Rescissions and Claim Denials may ultimately result in a paid claim.

Exhibit A:		Condensed Consolidated Statements of Operations Trend Schedule
Exhibit B:		Net Income (Loss) Per Share Trend Schedule
Exhibit C:		Condensed Consolidated Balance Sheets
Exhibit D:		Net Premiums Earned
Exhibit E:		Segment Information
Exhibit F:		Definition of Consolidated Non-GAAP Financial Measures
Exhibit G:		Consolidated Non-GAAP Financial Measure Reconciliations
Exhibit H:		Mortgage Supplemental Information
		New Insurance Written
Exhibit I:		Mortgage Supplemental Information
		Primary Insurance in Force and Risk in Force
Exhibit J:		Mortgage Supplemental Information
		Claims and Reserves
Exhibit K:		Mortgage Supplemental Information
		Default Statistics
Exhibit L:		Mortgage Supplemental Information
		Reinsurance Programs


Radian Group Inc. and Subsidiaries
Condensed Consolidated Statements of Operations Trend Schedule
Exhibit A

	2021					2020
(In thousands, except per-share amounts)	Qtr 2		Qtr 1			Qtr 4			Qtr 3		Qtr 2

Revenues:
Net premiums earned	$	254,756	$	271,872		$	302,140	(1)	$	286,471	$	249,295
Services revenue	29,464		22,895			11,440		(1)	33,943		28,075
Net investment income	36,291		38,251			38,115			36,255		38,723
Net gains (losses) on investments and other financial instruments	15,661		(5,181		)	17,376			17,652		47,276
Other income	822		976			790			913		1,072
Total revenues	336,994		328,813			369,861			375,234		364,441

Expenses:
Provision for losses	3,648		46,143			56,664			88,084		304,418
Policy acquisition costs	4,838		8,996			7,395			10,166		6,015
Cost of services	24,615		20,246			21,600			24,353		17,972
Other operating expenses	86,469		70,262			81,641			69,377		60,582
Interest expense	21,065		21,115			21,169			21,088		16,699
Amortization and impairment of other acquired intangible assets	863		862			2,225			961		979
Total expenses	141,498		167,624			190,694			214,029		406,665

Pretax income (loss)	195,496		161,189			179,167			161,205		(42,224		)
Income tax provision (benefit)	40,290		35,581			31,154			26,102		(12,273		)
Net income (loss)	$	155,206	$	125,608		$	148,013		$	135,103	$	(29,951	)

Diluted net income (loss) per share	$	0.80	$	0.64		$	0.76		$	0.70	$	(0.15	)

Radian Group Inc. and Subsidiaries
Net Income (Loss) Per Share Trend Schedule
Exhibit B

The calculation of basic and diluted net income (loss) per share was as follows:

	2021				2020
(In thousands, except per-share amounts)	Qtr 2		Qtr 1		Qtr 4		Qtr 3		Qtr 2
Net income (loss) —basic and diluted	$	155,206	$	125,608	$	148,013	$	135,103	$	(29,951	)

Average common shares outstanding—basic	193,436		193,439		193,248		193,176		193,299
Dilutive effect of stock-based compensation arrangements ⁽¹⁾	1,202		1,764		1,415		980		—
Adjusted average common shares outstanding—diluted	194,638		195,203		194,663		194,156		193,299

Basic net income (loss) per share	$	0.80	$	0.65	$	0.77	$	0.70	$	(0.15	)

Diluted net income (loss) per share	$	0.80	$	0.64	$	0.76	$	0.70	$	(0.15	)

	2021		2020
(In thousands)	Qtr 2	Qtr 1	Qtr 4	Qtr 3	Qtr 2
Shares of common stock equivalents	—	—	324	710	2,295

Radian Group Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
Exhibit C

	June 30,			March 31,			December 31,			September 30,			June 30,
(In thousands, except per-share amounts)	2021			2021			2020			2020			2020

Assets:
Investments	$	6,681,659		$	6,671,874		$	6,788,442		$	6,584,577		$	6,431,350
Cash		134,939			102,776			87,915			82,020			68,387
Restricted cash		2,968			20,987			6,231			4,424			16,279
Accrued investment income		32,223			34,841			34,047			36,093			34,179
Accounts and notes receivable		153,128			134,075			121,294			145,164			110,722
Reinsurance recoverables		75,411			76,664			73,202			66,515			56,852
Deferred policy acquisition costs		17,873			15,652			18,305			17,926			21,774
Property and equipment, net		74,288			78,309			80,457			88,717			89,143
Goodwill and other acquired intangible assets, net		21,318			22,181			23,043			25,268			26,229
Other assets		815,261			763,502			715,085			726,641			714,394
Total assets	$	8,009,068		$	7,920,861		$	7,948,021		$	7,777,345		$	7,569,309

Liabilities and stockholders’ equity:
Unearned premiums	$	373,031		$	406,689		$	448,791		$	501,787		$	561,280
Reserve for losses and loss adjustment expense		885,498			887,355			848,413			825,792			738,885
Senior notes		1,407,545			1,406,603			1,405,674			1,404,759			1,403,857
FHLB advances		153,983			138,833			176,483			141,058			175,122
Reinsurance funds withheld		285,406			282,345			278,555			318,773			312,350
Net deferred tax liability		266,330			210,571			213,897			166,136			126,883
Other liabilities		303,442			353,173			291,855			296,661			264,927
Total liabilities		3,675,235			3,685,569			3,663,668			3,654,966			3,583,304

Common stock		207			210			210			210			210
Treasury stock		(920,225	)		(910,347	)		(910,115	)		(909,745	)		(909,738	)
Additional paid-in capital		2,161,857			2,242,950			2,245,897			2,238,869			2,232,949
Retained earnings		2,913,138			2,785,744			2,684,636			2,561,076			2,450,423
Accumulated other comprehensive income		178,856			116,735			263,725			231,969			212,161
Total stockholders’ equity		4,333,833			4,235,292			4,284,353			4,122,379			3,986,005
Total liabilities and stockholders’ equity	$	8,009,068		$	7,920,861		$	7,948,021		$	7,777,345		$	7,569,309

Shares outstanding		188,290			191,311			191,606			191,556			191,492

Book value per share	$	23.02		$	22.14		$	22.36		$	21.52		$	20.82

Debt to capital ratio ⁽¹⁾		24.5	%		24.9	%		24.7	%		25.4	%		26.0	%
Risk to capital ratio-Radian Guaranty only		11.4:1			11.9:1			12.7:1			13.2:1			13.3:1

Radian Group Inc. and Subsidiaries
Net Premiums Earned
Exhibit D

	2021						2020
(In thousands)	Qtr 2			Qtr 1			Qtr 4			Qtr 3			Qtr 2

Premiums earned:
Direct - Mortgage:
Premiums earned, excluding revenue from cancellations ⁽¹⁾	$	243,077		$	256,905		$	272,331		$	259,889		$	263,468
Single Premium Policy cancellations	31,592			38,510			53,526			65,667			50,023
Total direct - Mortgage ⁽¹⁾	274,669			295,415			325,857			325,556			313,491

Assumed - Mortgage: ⁽²⁾	1,615			2,298			2,615			2,946			3,197

Ceded - Mortgage:
Premiums earned, excluding revenue from cancellations	(27,324		)	(25,373		)	(27,229		)	(25,120		)	(26,493		)
Single Premium Policy cancellations ⁽³⁾	(9,036		)	(11,109		)	(15,197		)	(18,679		)	(14,424		)
Profit commission - other ⁽⁴⁾	7,162			3,433			770			(1,347		)	(28,175		)
Total ceded premiums - Mortgage ⁽⁵⁾	(29,198		)	(33,049		)	(41,656		)	(45,146		)	(69,092		)
Net premiums earned - Mortgage ⁽¹⁾	247,086			264,664			286,816			283,356			247,596
Net premiums earned - homegenius ⁽⁶⁾	7,670			7,208			7,572			7,099			4,734
Net premiums earned - All Other ⁽⁶⁾	—			—			7,752			(3,984		)	(3,035		)
Net premiums earned ⁽¹⁾	$	254,756		$	271,872		$	302,140		$	286,471		$	249,295

(1)		The fourth quarter of 2020 includes an increase to premiums earned of $11.3 million related to changes in present value estimates for initial premiums on monthly policies that are deferred and not collected until cancellation. The impact of changes in this estimate in other periods is not material.
(2)		Relates primarily to premiums earned from our participation in certain credit risk transfer programs.
(3)		Includes the impact of related profit commissions.
(4)		The amounts represent the profit commission on the Single Premium QSR Program, excluding the impact of Single Premium Policy cancellations.
(5)		See Exhibit L for additional information on ceded premiums for our various reinsurance programs.
(6)		See Exhibit E for additional information on changes that impacted our reported segment results for all periods.

Radian Group Inc. and Subsidiaries
Segment Information
Exhibit E (page 2 of 4)

	Mortgage
	2021						2020
(In thousands)	Qtr 2			Qtr 1			Qtr 4			Qtr 3			Qtr 2
Net premiums written ^{(2) (3)}	$	231,027		$	246,874		$	261,244		$	259,278		$	229,458
(Increase) decrease in unearned premiums		16,059			17,790			25,572			24,078			18,138
Net premiums earned		247,086			264,664			286,816			283,356			247,596
Services revenue		3,732			4,351			3,717			3,914			3,918
Net investment income		32,842			34,013			34,235			32,054			34,708
Other income		641			769			735			689			721
Total		284,301			303,797			325,503			320,013			286,943

Provision for losses		3,334			45,869			56,312			87,753			304,021
Policy acquisition costs		4,838			8,996			7,395			10,166			6,015
Cost of services		3,161			3,192			3,245			2,908			2,133
Other operating expenses before allocated corporate operating expenses⁽¹⁾		27,441			22,454			21,974			21,635			18,537
Interest expense ^{(5) (6)}		21,065			21,115			21,169			21,088			16,699
Total⁽⁷⁾		59,839			101,626			110,095			143,550			347,405
Adjusted pretax operating income (loss) before allocated corporate operating expenses		224,462			202,171			215,408			176,463			(60,462	)
Allocation of corporate operating expenses		33,000			27,884			31,102			29,127			25,359
Adjusted pretax operating income (loss)	$	191,462		$	174,287		$	184,306		$	147,336		$	(85,821	)

	homegenius ⁽⁶⁾
	2021						2020
(In thousands)	Qtr 2			Qtr 1			Qtr 4			Qtr 3			Qtr 2
Net premiums earned ⁽⁷⁾	$	7,670		$	7,208		$	7,572		$	7,099		$	4,734
Services revenue ^{(6) (7)}		25,750			18,550			15,958			22,627			17,688
Net investment income		31			37			43			67			126
Total		33,451			25,795			23,573			29,793			22,548

Provision for losses		335			296			392			370			426
Cost of services		21,433			17,028			15,706			18,085			12,681
Other operating expenses before allocated corporate operating expenses ⁽¹⁾		16,160			14,928			15,238			13,136			10,527
Total		37,928			32,252			31,336			31,591			23,634
Adjusted pretax operating income (loss) before allocated corporate operating expenses		(4,477	)		(6,457	)		(7,763	)		(1,798	)		(1,086	)
Allocation of corporate operating expenses		4,721			3,996			3,369			3,248			2,823
Adjusted pretax operating income (loss)	$	(9,198	)	$	(10,453	)	$	(11,132	)	$	(5,046	)	$	(3,909	)

Radian Group Inc. and Subsidiaries
Segment Information
Exhibit E (page 3 of 4)

	All Other^{(6) (9)}
	2021				2020
(In thousands)	Qtr 2		Qtr 1		Qtr 4			Qtr 3			Qtr 2
Net premiums earned ⁽⁸⁾	$	—	$	—	$	7,752		$	(3,984	)	$	(3,035	)
Services revenue ^{(7) (8)}	44		53		(7,963		)	8,267			6,579
Net investment income	3,418		4,201		3,837			4,134			3,889
Other income	181		207		55			224			104
Total	3,643		4,461		3,681			8,641			7,537

Cost of services	19		28		2,835			4,127			3,177
Other operating expenses ⁽¹⁾	1,169		951		3,033			1,824			3,129
Total	1,188		979		5,868			5,951			6,306
Adjusted pretax operating income (loss)	$	2,455	$	3,482	$	(2,187	)	$	2,690		$	1,231

	2021				2020
(In thousands)	Qtr 2		Qtr 1		Qtr 4		Qtr 3		Qtr 2
Inter-segment revenue included in:
Mortgage	$	—	$	—	$	—	$	—	$	—
homegenius	62		59		86		98		91
All Other	—		—		186		767		19
Total inter-segment revenue	$	62	$	59	$	272	$	865	$	110

Inter-segment expense included in:
Mortgage	$	62	$	59	$	86	$	98	$	91
homegenius	—		—		186		767		19
All Other	—		—		—		—		—
Total inter-segment expense	$	62	$	59	$	272	$	865	$	110

See notes continued on next page.

Selected Mortgage Key Ratios

	2021				2020
	Qtr 2		Qtr 1		Qtr 4		Qtr 3		Qtr 2

Loss ratio ⁽¹⁾	1.3	%	17.3	%	19.6	%	31.0	%	122.8	%
Expense ratio⁽¹⁾	26.4	%	22.4	%	21.1	%	21.5	%	20.2	%

	Three Months Ended June 30, 2021
(In thousands)	Mortgage			homegenius			All Other			Inter-segment			Total
Net premiums written	$	231,027		$	7,670		$	—		$	—		$	238,697
(Increase) decrease in unearned premiums		16,059			—			—			—			16,059
Net premiums earned		247,086			7,670			—			—			254,756
Services revenue		3,732			25,750			44			(62	)		29,464
Net investment income		32,842			31			3,418			—			36,291
Other income		641			—			181			—			822
Total		284,301			33,451			3,643			(62	)		321,333

Provision for losses		3,334			335			—			(21	)		3,648
Policy acquisition costs		4,838			—			—			—			4,838
Cost of services		3,161			21,433			19			2			24,615
Other operating expenses before allocated corporate operating expenses ⁽¹⁾		27,441			16,160			1,169			(43	)		44,727
Interest expense		21,065			—			—			—			21,065
Total		59,839			37,928			1,188			(62	)		98,893
Adjusted pretax operating income (loss) before allocated corporate operating expenses		224,462			(4,477	)		2,455			—			222,440
Allocation of corporate operating expenses		33,000			4,721			—			—			37,721
Adjusted pretax operating income (loss)	$	191,462		$	(9,198	)	$	2,455		$	—		$	184,719

	Three Months Ended June 30, 2020
(In thousands)	Mortgage			homegenius			All Other			Inter-segment			Total
Net premiums written	$	229,458		$	4,734		$	(3,035	)	$	—		$	231,157
(Increase) decrease in unearned premiums		18,138			—			—			—			18,138
Net premiums earned		247,596			4,734			(3,035	)		—			249,295
Services revenue		3,918			17,688			6,579			(110	)		28,075
Net investment income		34,708			126			3,889			—			38,723
Other income ⁽¹⁾		721			—			104			—			825
Total		286,943			22,548			7,537			(110	)		316,918

Provision for losses		304,021			426			—			(29	)		304,418
Policy acquisition costs		6,015			—			—			—			6,015
Cost of services		2,133			12,681			3,177			(19	)		17,972
Other operating expenses before allocated corporate operating expenses ⁽¹⁾		18,537			10,527			3,129			(62	)		32,131
Interest expense		16,699			—			—			—			16,699
Total		347,405			23,634			6,306			(110	)		377,235
Adjusted pretax operating income (loss) before allocated corporate operating expenses		(60,462	)		(1,086	)		1,231			—			(60,317	)
Allocation of corporate operating expenses		25,359			2,823			—			—			28,182
Adjusted pretax operating income (loss)	$	(85,821	)	$	(3,909	)	$	1,231		$	—		$	(88,499	)

(1)		Does not include impairment of long-lived assets and other non-operating items, which are not considered components of adjusted pretax operating income (loss).
(2)		Net of ceded premiums written under the QSR Programs and the Excess-of-Loss Program. See Exhibit L for additional information.
(3)		The fourth quarter of 2020 includes an increase to premiums earned of $11.3 million, related to changes in present value estimates for initial premiums on monthly policies that are deferred and not collected until cancellation. The impact of changes in this estimate in other periods is not material.
(4)		Does not include impairment of long-lived assets and other non-operating items, which are not considered components of adjusted pretax operating income (loss).
(5)		Relates to interest on our borrowing and financing activities including our Senior Notes issued by our holding company and FHLB borrowings made by our mortgage insurance subsidiaries.
(6)		The wind-down of our traditional appraisal business announced in the fourth quarter of 2020 caused the composition of our reportable segments to change, including all activity related to that business and certain other adjustments to services revenue now being reflected in All Other activities. In addition, there were certain other immaterial reclassifications to net investment income and interest expense. These changes to our reportable segments have been reflected in our segment operating results for all periods presented.
(7)		Inter-segment information:

Radian Group Inc. and Subsidiaries
Segment Information
Exhibit E (page 4 of 4)

Notes continued from prior page.

(8)		In the fourth quarter of 2020, we reclassified certain revenue previously reflected in the homegenius segment results as services revenue to net premiums earned. As a result, for all periods presented in 2020, on the homegenius segment, net premiums earned has been increased and services revenue has been decreased, with offsetting adjustments reflected in All Other activities.
(9)		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; (iii) for all periods presented, the income and expenses related to our traditional appraisal services; and (iv) certain other immaterial revenue and expense items.


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

		Trends in the profitability of our fundamental operating activities can be more clearly identified without the fluctuations of these realized and unrealized gains or losses and changes in fair value of other financial instruments. We do not view them to be indicative of our fundamental operating activities.

(2)		*Loss on extinguishment of debt.* Gains or losses on early extinguishment of debt and losses incurred to purchase our debt prior to maturity are discretionary activities that are undertaken in order to take advantage of market opportunities to strengthen our financial and capital positions; therefore, we do not view these activities as part of our operating performance. Such transactions do not reflect expected future operations and do not provide meaningful insight regarding our current or past operating trends.

(3)		*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.

(4)		*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: and (iii) acquistion-related income and expenses.

Radian Group Inc. and Subsidiaries
Consolidated Non-GAAP Financial Measure Reconciliations
Exhibit G (page 1 of 3)

Reconciliation of Consolidated Pretax Income (Loss) to Adjusted Pretax Operating Income (Loss)

	2021						2020
(In thousands)	Qtr 2			Qtr 1			Qtr 4			Qtr 3			Qtr 2
Consolidated pretax income (loss)	$	195,496		$	161,189		$	179,167		$	161,205		$	(42,224	)
Less reconciling income (expense) items:
Net gains (losses) on investments and other financial instruments	15,661			(5,181		)	17,376			17,652			47,276
Amortization and impairment of other acquired intangible assets	(863		)	(862		)	(2,225		)	(961		)	(979		)
Impairment of other long-lived assets and other non-operating items ⁽¹⁾	(4,021		)	(84		)	(6,971		)	(466		)	(22		)
Total adjusted pretax operating income (loss) ⁽²⁾	$	184,719		$	167,316		$	170,987		$	144,980		$	(88,499	)

(1)		The amounts for all the periods presented are included in other operating expenses on the Condensed Consolidated Statement of Operations in Exhibit A and primarily relate to impairments of other long-lived assets.
(2)		Total adjusted pretax operating income (loss) consists of adjusted pretax operating income (loss) for each reportable segment and All Other activities as follows:

Radian Group Inc. and Subsidiaries
Consolidated Non-GAAP Financial Measure Reconciliations
Exhibit G (page 2 of 3)

Reconciliation of Diluted Net Income (Loss) Per Share to Adjusted Diluted Net Operating Income (Loss) Per Share

	2021						2020
	Qtr 2			Qtr 1			Qtr 4			Qtr 3			Qtr 2
Diluted net income (loss) per share	$	0.80		$	0.64		$	0.76		$	0.70		$	(0.15	)

Less per-share impact of reconciling income (expense) items:
Net gains (losses) on investments and other financial instruments	0.08			(0.03		)	0.09			0.09			0.24
Amortization and impairment of other acquired intangible assets	—			—			(0.01		)	—			(0.01		)
Impairment of other long-lived assets and other non-operating items	(0.02		)	—			(0.04		)	—			—
Income tax (provision) benefit on reconciling income (expense) items⁽¹⁾	(0.01		)	0.01			(0.01		)	(0.02		)	(0.05		)
Difference between statutory and effective tax rate	—			(0.02		)	0.04			0.04			0.03
Per-share impact of reconciling income (expense) items	0.05			(0.04		)	0.07			0.11			0.21
Adjusted diluted net operating income (loss) per share ⁽¹⁾	$	0.75		$	0.68		$	0.69		$	0.59		$	(0.36	)

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

	2021						2020
	Qtr 2			Qtr 1			Qtr 4			Qtr 3			Qtr 2
Return on equity⁽¹⁾	14.5		%	11.8		%	14.1		%	13.3		%	(3.1	)	%
Less impact of reconciling income (expense) items: ⁽²⁾
Net gains (losses) on investments and other financial instruments	1.5			(0.5	)		1.7			1.7			4.8
Amortization and impairment of other acquired intangible assets	(0.1	)		(0.1	)		(0.2	)		(0.1	)		(0.1	)
Impairment of other long-lived assets and other non-operating items	(0.4	)		—			(0.7	)		—			—
Income tax (provision) benefit on reconciling income (expense) items⁽³⁾	(0.2	)		0.1			(0.2	)		(0.3	)		(1.0	)
Difference between statutory and effective tax rate	0.1			(0.1	)		0.6			0.7			0.3
Impact of reconciling income (expense) items	0.9			(0.6	)		1.2			2.0			4.0
Adjusted net operating return on equity	13.6		%	12.4		%	12.9		%	11.3		%	(7.1	)	%

(1)		Calculated by dividing annualized net income (loss) by average stockholders’ equity, based on the average of the beginning and ending balances for each period presented.
(2)		Annualized, as a percentage of average stockholders’ equity.
(3)		Calculated using the company’s federal statutory tax rate of 21%. Any permanent tax adjustments and state income taxes on these items have been deemed immaterial and are not included.

Radian Group Inc. and Subsidiaries
Consolidated Non-GAAP Financial Measure Reconciliations
Exhibit G (page 3 of 3)

Reconciliation of homegenius Adjusted Pretax Operating Income (Loss) to homegenius Adjusted Gross Profit

	2021						2020
(In thousands)	Qtr 2			Qtr 1			Qtr 4			Qtr 3			Qtr 2
homegenius adjusted pretax operating income (loss)	$	(9,198	)	$	(10,453	)	$	(11,132	)	$	(5,046	)	$	(3,909	)
Less reconciling income (expense) items:
Allocation of corporate operating expenses	(4,721		)	(3,996		)	(3,369		)	(3,248		)	(2,823		)
Adjusted pretax operating income (loss) before allocated corporate operating expenses	(4,477		)	(6,457		)	(7,763		)	(1,798		)	(1,086		)
Less reconciling income (expense) items:
Other operating expenses before allocated corporate operating expenses	(16,160		)	(14,928		)	(15,238		)	(13,136		)	(10,527		)
homegenius adjusted gross profit	$	11,683		$	8,471		$	7,475		$	11,338		$	9,441

Radian Group Inc. and Subsidiaries
Mortgage Supplemental Information - New Insurance Written
Exhibit H

	2021						2020
($ in millions)	Qtr 2			Qtr 1			Qtr 4			Qtr 3			Qtr 2

New insurance written ("NIW")	$	21,662		$	20,161		$	29,781		$	33,320		$	25,459

Percentage of NIW
Borrower-paid	99.1		%	99.2		%	99.2		%	98.5		%	97.8		%

Percentage by premium type
Direct monthly and other recurring premiums	93.1		%	90.2		%	91.4		%	90.0		%	84.7		%
Borrower-paid ^{(1) (2)}	6.6			9.4			8.3			9.0			13.6
Lender-paid⁽¹⁾	0.3			0.4			0.3			1.0			1.7
Direct single premiums⁽¹⁾	6.9			9.8			8.6			10.0			15.3
Total NIW	100.0		%	100.0		%	100.0		%	100.0		%	100.0		%

NIW for purchases	77.1		%	59.1		%	64.6		%	70.5		%	56.4		%
NIW for refinances	22.9		%	40.9		%	35.4		%	29.5		%	43.6		%

Percentage of NIW by FICO score⁽³⁾
>=740	61.4		%	64.3		%	64.7		%	66.2		%	67.3		%
680-739	33.1			31.5			31.5			30.7			30.1
620-679	5.5			4.2			3.8			3.1			2.6
Total NIW	100.0		%	100.0		%	100.0		%	100.0		%	100.0		%

Percentage by LTV
95.01% and above	10.9		%	8.0		%	8.9		%	9.7		%	8.3		%
90.01% to 95.00%	40.4			31.6			34.7			39.6			36.4
85.01% to 90.00%	27.6			31.3			29.8			28.3			29.8
85.00% and below	21.1			29.1			26.6			22.4			25.5
Total NIW	100.0		%	100.0		%	100.0		%	100.0		%	100.0		%

(1)		Percentages exclude the impact of reinsurance.
(2)		Borrower-paid Single Premium Policies have lower Minimum Required Assets under PMIERs as compared to lender-paid Single Premium Policies.
(3)		For loans with multiple borrowers, the percentage of NIW by FICO score represents the lowest of the borrowers’ FICO scores.

Radian Group Inc. and Subsidiaries
Mortgage Supplemental Information - Primary Insurance in Force and Risk in Force
Exhibit I (page 1 of 2)

	June 30,			March 31,			December 31,			September 30,			June 30,
($ in millions)	2021			2021			2020			2020			2020
Primary insurance in force ⁽¹⁾
Prime	$	233,543		$	234,980		$	242,044		$	241,166		$	236,835
Alt-A and A minus and below	3,759			3,941			4,100			4,301			4,471
Primary	$	237,302		$	238,921		$	246,144		$	245,467		$	241,306

Primary risk in force^{(1) (2)}
Prime	$	57,155		$	57,579		$	59,689		$	59,972		$	59,253
Alt-A and A minus and below	885			929			967			1,017			1,058
Primary	$	58,040		$	58,508		$	60,656		$	60,989		$	60,311

Percentage of primary risk in force
Direct monthly and other recurring premiums	81.2		%	80.0		%	79.1		%	76.8		%	73.8		%
Direct single premiums	18.8		%	20.0		%	20.9		%	23.2		%	26.2		%

Percentage of primary risk in force by FICO score ⁽³⁾
>=740	57.5		%	57.2		%	57.5		%	57.6		%	57.4		%
680-739	34.8			34.9			34.6			34.3			34.3
620-679	7.2			7.3			7.3			7.5			7.7
<=619	0.5			0.6			0.6			0.6			0.6
Total Primary	100.0		%	100.0		%	100.0		%	100.0		%	100.0		%

Percentage of primary risk in force by LTV
95.01% and above	14.5		%	14.4		%	14.4		%	14.3		%	14.2		%
90.01% to 95.00%	48.5			48.6			49.3			50.1			50.4
85.01% to 90.00%	28.1			28.2			28.0			27.9			28.1
85.00% and below	8.9			8.8			8.3			7.7			7.3
Total	100.0		%	100.0		%	100.0		%	100.0		%	100.0		%

Percentage of primary risk in force by policy year
2008 and prior	5.7		%	6.1		%	6.2		%	6.6		%	7.2		%
2009 - 2015	8.7			9.9			11.3			13.3			16.0
2016	6.0			6.8			7.6			8.9			10.6
2017	6.8			8.0			9.1			10.7			13.0
2018	7.3			8.7			9.8			11.7			14.0
2019	13.6			15.6			17.8			20.6			23.3
2020	35.4			37.2			38.2			28.2			15.9
2021	16.5			7.7			—			—			—
Total	100.0		%	100.0		%	100.0		%	100.0		%	100.0		%

Primary risk in force on defaulted loans	$	2,345		$	2,910		$	3,250		$	3,747		$	4,263

Table continued on next page.

Radian Group Inc. and Subsidiaries
Mortgage Supplemental Information - Primary Insurance in Force and Risk in Force
Exhibit I (page 2 of 2)

Table continued from prior page.

	June 30,			March 31,			December 31,			September 30,			June 30,
	2021			2021			2020			2020			2020
Persistency Rate (12 months ended)	57.7	%	(4)	57.2	%	(4)	61.2	%	(4)	65.6	%	(4)	70.2	%
Persistency Rate (quarterly, annualized)⁽⁵⁾	66.3	%		62.5	%		60.4	%	(4)	60.0	%	(4)	63.8	%

(1)		Excludes the impact of premiums ceded under our reinsurance agreements.
(2)		Does not include pool risk in force or other risk in force, which combined represent approximately 1% of our total risk in force for all periods presented.
(3)		For loans with multiple borrowers, the percentage of primary risk in force by FICO score represents the lowest of the borrowers’ FICO scores.
(4)		The Persistency Rate was reduced by an increase in cancellations of Single Premium Policies due to increased cancellations identified by our ongoing servicer monitoring process for Single Premium Policies.
(5)		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.

Radian Group Inc. and Subsidiaries
Mortgage Supplemental Information - Claims and Reserves
Exhibit J

	2021						2020
($ in thousands)	Qtr 2			Qtr 1			Qtr 4		Qtr 3			Qtr 2

Net claims paid: ⁽¹⁾
Total primary claims paid	$	4,870		$	6,611		$	8,353	$	11,331		$	22,144
Total pool and other	(649		)	(138		)	70		(230		)	639
Subtotal	4,221			6,473			8,423		11,101			22,783
Impact of commutations and settlements ⁽²⁾	—			4,000			32,170		(267		)	—
Total net claims paid	$	4,221		$	10,473		$	40,593	$	10,834		$	22,783

Total average net primary claims paid ^{(1) (3)}	$	46.8		$	43.8		$	46.9	$	46.4		$	47.9

Average direct primary claims paid ^{(3) (4)}	$	48.4		$	45.5		$	48.5	$	47.8		$	49.0

(1)		Includes the impact of reinsurance recoveries and LAE.
(2)		Includes payments to commute mortgage insurance coverage on certain performing and non-performing loans. For the first quarter of 2021 and the fourth quarter of 2020, primarily includes payments made to settle certain previously disclosed legal proceedings.
(3)		Calculated without giving effect to the impact of commutations and settlements.
(4)		Before reinsurance recoveries.

Radian Group Inc. and Subsidiaries
Mortgage Supplemental Information - Default Statistics
Exhibit K

	June 30,		March 31,		December 31,		September 30,		June 30,
	2021		2021		2020		2020		2020
Default Statistics
Primary Insurance:
Prime
Number of insured loans	976,344		996,082		1,031,736		1,043,450		1,040,964
Number of loans in default	36,826		45,929		51,032		58,057		64,648
Percentage of loans in default	3.77	%	4.61	%	4.95	%	5.56	%	6.21	%

Alt-A and A minus and below
Number of insured loans	24,205		25,282		26,208		27,310		28,357
Number of loans in default	3,638		4,177		4,505		4,680		5,094
Percentage of loans in default	15.03	%	16.52	%	17.19	%	17.14	%	17.96	%

Total Primary
Number of insured loans	1,000,549		1,021,364		1,057,944		1,070,760		1,069,321
Number of loans in default	40,464		50,106		55,537		62,737		69,742
Percentage of loans in default	4.04	%	4.91	%	5.25	%	5.86	%	6.52	%

Radian Group Inc. and Subsidiaries
Mortgage Supplemental Information - Reinsurance Programs
Exhibit L

	2021								2020
($ in thousands)	Qtr 2				Qtr 1				Qtr 4				Qtr 3				Qtr 2

Quota Share Reinsurance (“QSR”) and Single Premium QSR Programs
Ceded premiums written⁽¹⁾	$	(7,032	)		$	(2,852	)		$	(1,117	)		$	2,119			$	35,821
% of premiums written	(2.8		)	%	(1.1		)	%	(0.4		)	%	0.8			%	13.0			%
Ceded premiums earned	$	13,491			$	20,788			$	29,510			$	36,742			$	60,652
% of premiums earned	4.8			%	6.8			%	8.6			%	11.2			%	19.2			%
Ceding commissions written	$	(2,362	)		$	(2,949	)		$	(3,847	)		$	(4,984	)		$	(5,304	)
Ceding commissions earned ⁽²⁾	$	7,920			$	10,407			$	13,197			$	17,038			$	13,453
Profit commission	$	17,935			$	16,350			$	18,406			$	20,425			$	(10,649	)
Ceded losses	$	(1,007	)		$	3,661			$	7,106			$	10,189			$	39,635

Excess-of-Loss Program
Ceded premiums written	$	18,524			$	11,482			$	15,240			$	7,499			$	7,525
% of premiums written	7.4			%	4.4			%	5.2			%	2.8			%	2.7			%
Ceded premiums earned	$	15,601			$	12,154			$	12,037			$	8,290			$	8,321
% of premiums earned	5.5			%	4.0			%	3.7			%	2.5			%	2.6			%

Ceded RIF ⁽³⁾
Single Premium QSR Program	$	5,728,142			$	6,147,808			$	6,646,812			$	7,358,932			$	8,173,756
Excess-of-Loss Program	1,952,900				1,525,100				1,560,600				1,170,200				1,170,200
QSR Program	268,337				317,827				381,787				454,585				532,743
Total Ceded RIF	$	7,949,379			$	7,990,735			$	8,589,199			$	8,983,717			$	9,876,699

PMIERs impact - reduction in Minimum Required Assets
Excess-of-Loss Program	$	907,112			$	673,957			$	912,734			$	783,842			$	970,294
Single Premium QSR Program	355,115				388,536				423,712				469,625				517,028
QSR Program	16,545				19,378				22,712				26,213				30,837
Total PMIERs impact	$	1,278,772			$	1,081,871			$	1,359,158			$	1,279,680			$	1,518,159

(1)		Net of profit commission.
(2)		Includes amounts reported in policy acquisition costs and other operating expenses. Operating expenses include the following ceding commissions, net of deferred policy acquisition costs, for the periods indicated: