Radian Group Inc【RDN】株式ニュース

Radian Announces First Quarter 2026 Financial ResultsMay 6, 2026 4:46 PM
Business Wire — Radian completes acquisition of Inigo, becoming a global multi-line specialty insurer — — First quarter diluted net income from continuing operations per share of $0.93 — — First quarter adjusted net operating income per share of $1.27 — — First quarter return on equity from continuing operations of 10.8% — — Adjusted net operating return on equity of 14.7% — — Book value per share growth of 10% year-over-year to $35.67 — — $140 million ordinary dividend paid from Radian Guaranty to holding company during the first quarter — — Repurchased $50 million of shares and paid $35 million of dividends to stockholders during first quarter — Radian Group Inc. (NYSE: RDN) today reported net income from continuing operations for the quarter ended March 31, 2026, of $129 million, or $0.93 per diluted share. This compares with net income from continuing operations for the quarter ended March 31, 2025, of $152 million, or $1.03 per diluted share. Pretax income from continuing operations for the quarter ended March 31, 2026, was $174 million compared to $199 million for the quarter ended March 31, 2025. The results for the first quarter of 2026 include $49 million of acquisition-related expenses, amortization of acquired intangible assets and other purchase accounting adjustments related to the company’s acquisition of Inigo. Adjusted pretax operating income for the quarter ended March 31, 2026, was $232 million compared to $201 million for the quarter ended March 31, 2025. Adjusted diluted net operating income per share for the quarter ended March 31, 2026, was $1.27 compared to $1.04 for the quarter ended March 31, 2025. Key Financial Highlights Quarter ended ($ in millions, except per-share amounts) March 31,
2026 (1) December 31,
2025 March 31,
2025 Consolidated Total revenues $466 $301 $295 Net premiums earned $403 $237 $234 Net investment income $70 $63 $61 Net income $124 $155 $145 Net income from continuing operations $129 $159 $152 Diluted net income from continuing operations per share $0.93 $1.15 $1.03 Pretax income from continuing operations $174 $201 $199 Adjusted pretax operating income (2) $232 $204 $201 Adjusted diluted net operating income per share (2) $1.27 $1.16 $1.04 Return on equity from continuing operations 10.8% 13.5% 13.2% Adjusted net operating return on equity (2) 14.7% 13.6% 13.4% Segment information (3) Combined ratio - Mortgage (4) 30.2% 28.1% 27.8% Combined ratio - Specialty (4) 85.3% N/A N/A New insurance written - Mortgage $13,490 $15,850 $9,489 Gross premiums written - Specialty $162 N/A N/A As of ($ in millions, except per-share amounts) March 31,
2026 December 31,
2025 March 31,
2025 Consolidated Book value per share $35.67 $35.29 $32.48 Accumulated other comprehensive income (loss) value per share $(1.94) $(1.64) $(2.09) Available holding company liquidity (5) $391 $1,834 $834 Total investments $7,040 $5,987 $5,725 Assets held for sale $280 $474 $1,517 Liabilities held for sale $219 $364 $1,312 Segment information PMIERs Available Assets $5,445 $5,384 $6,022 PMIERs excess Available Assets $1,596 $1,560 $2,094 Primary mortgage insurance in force $281,718 $282,519 $274,159 Percentage of primary loans in default 2.51% 2.56% 2.33% N/A – Not applicable (1) Includes Inigo results from the date of acquisition, February 2, 2026. (2) Adjusted results, including adjusted pretax operating income, adjusted diluted net operating income per share and adjusted net operating return on equity, are on a continuing operations basis and are non-GAAP financial measures on a consolidated basis. For definitions and reconciliations of these measures to the comparable GAAP measures, see Exhibits F and G. (3) See Exhibit E for additional segment information. (4) Calculated as the sum of each segment’s reported provision for losses and operating expenses (which consist of amortization of policy acquisition costs and other operating expenses) expressed as a percentage of net premiums earned. See Exhibit E for additional details on the key ratios by segment. (5) Represents Radian Group’s available liquidity without considering available capacity under its unsecured revolving credit facility. Book value per share at March 31, 2026, was $35.67 compared to $35.29 at December 31, 2025, and $32.48 at March 31, 2025. This represents a 10% growth in book value per share at March 31, 2026, as compared to March 31, 2025, and includes accumulated other comprehensive income (loss) of $(1.94) per share as of March 31, 2026, and $(2.09) per share as of March 31, 2025. 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. “This quarter marks a defining milestone for Radian, our first as a global multi-line specialty insurer following the successful acquisition of Inigo. By uniting two world-class insurance businesses, we have created a more diversified and resilient enterprise, as reflected in our exceptional first quarter results,” said Radian Chief Executive Officer Rick Thornberry. “With a strong capital position, 22% year-over-year growth in adjusted diluted net operating income per share and adjusted operating return on equity increasing to 14.7% in the quarter, we are demonstrating the power of our strategy. We are confident in our direction, energized by the opportunities ahead, and committed to delivering long-term value for our stockholders.” FIRST QUARTER RESULTS OF OPERATIONS Mortgage The Mortgage segment reported adjusted pre-tax operating income of $221 million for the quarter. Key drivers of Mortgage segment’s first quarter results include: Primary Insurance in Force of $282 billion, an increase of 3% year-over-year New Insurance Written of $13.5 billion, an increase of 42% year-over-year Annualized persistency for the three months ended March 31, 2026, of 81.3% Net premiums earned grew to $238 million, with a stable in-force portfolio premium yield of 37.9 basis points Provision for losses of $24 million, which includes favorable reserve development on prior period defaults of $36 million Mortgage segment combined ratio of 30.2%, including an expense ratio of 20.0% See Exhibit E for additional segment information Specialty The Specialty segment reported adjusted pre-tax operating income of $40 million for the quarter, reflecting Inigo’s operations for the period post-acquisition, beginning February 2, 2026. Key drivers of Specialty segment’s results for the period since acquisition include: Total gross premiums written of $162 million Insurance gross premiums written of $82 million Reinsurance gross premiums written of $80 million Net premiums earned of $164 million Provision for losses of $86 million, which includes favorable reserve development on prior year loss reserves of $13 million Specialty segment combined ratio of 85.3% See Exhibit E for additional segment information and Exhibit J for supplemental information related to Inigo’s financial results for the month ended January 31, 2026, prior to the acquisition. CAPITAL AND LIQUIDITY UPDATE Radian Group In January 2026, Radian Group drew $200 million on its unsecured revolving credit facility. The company repaid $50 million of this borrowing during the first quarter and expects to repay this borrowing in full during 2026. On February 2, 2026, Radian Group completed its strategic acquisition of Inigo Limited (“Inigo”), a Lloyd’s of London (“Lloyd’s”) specialty insurer. Radian funded the acquisition from Radian Group’s available liquidity sources. During the first quarter of 2026, the company repurchased 1.5 million shares of Radian Group common stock at a total cost of $50 million. In addition, in April the company repurchased 1.9 million shares of Radian Group common stock at a total cost of $65 million. The Company has fully utilized the authority under its $900 million share repurchase authorization that was scheduled to expire on June 30, 2026. As a result, future repurchases will be made pursuant to the $750 million authorization approved by Radian Group’s board of directors in May 2025, which is scheduled to expire in December 2027. Following the April share repurchases, purchase authority of up to $748 million remained available under this authorization. Radian Group paid a dividend on its common stock in the amount of $0.255 per share, totaling $35 million, in the first quarter of 2026. Radian Group’s available liquidity was $391 million as of March 31, 2026. In addition, Radian Group maintained $350 million of undrawn capacity under its unsecured revolving credit facility as of March 31, 2026. Radian Guaranty Radian Guaranty paid an ordinary dividend to Radian Group of $140 million in the first quarter of 2026. Radian Guaranty expects to pay over $600 million in ordinary dividends to Radian Group during 2026, subject to prior approval from the Pennsylvania Insurance Department. At March 31, 2026, Radian Guaranty’s Available Assets under PMIERs totaled $5.4 billion, resulting in PMIERs excess Available Assets of $1.6 billion. STRATEGIC UPDATE Discontinued Operations As an update to the divestiture plan previously announced in 2025, during the first quarter of 2026 Radian made the decision to wind down its Mortgage Conduit business following an evaluation of divestment opportunities. The Company is currently engaged in ongoing discussions with prospective buyers for its Title and Real Estate Services businesses, and continues to expect to complete its divestiture plans for these businesses by the end of the third quarter of 2026. During the first quarter of 2026, Radian Group received $46 million in distributions from its businesses held for sale. These distributions reduced the net carrying value of the assets and liabilities held for sale related to these businesses to $61 million as of March 31, 2026, including the impact of estimated costs related to the sales. Additional details regarding discontinued operations may be found in Exhibit D. CONFERENCE CALL Radian will discuss first quarter 2026 financial results in a conference call tomorrow, Thursday, May 7, 2026, at 11:00 a.m. Eastern time. The conference call will be webcast live on the company’s website at www.radian.com/for-investors/investor-events 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 www.radian.com/for-investors/investor-events. 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, each from continuing operations (non-GAAP measures on a consolidated basis) 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. 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 pretax income (loss) from continuing operations excluding the effects of: (i) net gains (losses) on financial instruments and foreign exchange, (ii) amortization of other acquired intangible assets, (iii) other purchase accounting adjustments, net, and (iv) acquisition-related expenses and other non-operating items, such as impairment of internal-use software and other long-lived assets and gains (losses) on extinguishment of debt, among others. Adjusted diluted net operating income (loss) per share is calculated by dividing adjusted pretax operating income (loss), net of taxes computed using the company’s effective tax rate, by the sum of the weighted average number of common shares outstanding and all dilutive potential common shares outstanding. Adjusted net operating return on equity is calculated by dividing annualized adjusted pretax operating income (loss), net of taxes computed using the company’s effective tax rate, by average stockholders’ equity, based on the average of the beginning and ending balances for each period presented. See Exhibit F or Radian’s website for a description of these items, as well as Exhibit G for reconciliations to the most comparable GAAP measures. ABOUT RADIAN Radian Group Inc. (NYSE: RDN) is a trusted, global multi-line specialty insurer that helps businesses navigate risk with confidence. Built on financial strength and disciplined risk management, Radian brings clarity to complex risk decisions through its proprietary view of risk and a global perspective. Visit www.radian.com to learn how our collaborative and customer-centric culture transforms risk into a world of opportunity. 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: 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: Supplemental Information - Inigo Adjusted Pretax Operating Income for January 2026 (Pre-Acquisition) Radian Group Inc. and Subsidiaries Condensed Consolidated Statements of Operations (1) Exhibit A (In thousands, except per-share amounts) 2026 2025 Qtr 1 (2) Qtr 4 Qtr 3 Qtr 2 Qtr 1 Revenues Net premiums earned $ 402,528 $ 237,192 $ 237,103 $ 233,526 $ 234,044 Net investment income 69,698 62,683 63,399 61,672 61,010 Net gains (losses) on financial instruments and foreign exchange (8,879 ) (1,159 ) 1,285 1,851 (2,001 ) Other income 2,990 1,796 1,399 1,502 1,782 Total revenues 466,337 300,512 303,186 298,551 294,835 Expenses Provision for losses 107,933 21,588 17,886 11,954 15,340 Amortization of deferred policy acquisition costs and value of business acquired (“VOBA”) 62,069 4,280 7,166 7,205 6,388 Other operating expenses 98,169 56,417 62,256 69,178 57,908 Interest expense 20,594 17,189 17,184 17,428 16,489 Amortization of other acquired intangible assets 3,909 — — — — Total expenses 292,674 99,474 104,492 105,765 96,125 Pretax income from continuing operations 173,663 201,038 198,694 192,786 198,710 Income tax provision 44,197 42,236 45,892 38,301 46,620 Net income from continuing operations 129,466 158,802 152,802 154,485 152,090 Income (loss) from discontinued operations, net of tax (5,373 ) (3,959 ) (11,359 ) (12,689 ) (7,532 ) Net income $ 124,093 $ 154,843 $ 141,443 $ 141,796 $ 144,558 Diluted net income per share Net income from continuing operations $ 0.93 $ 1.15 $ 1.11 $ 1.11 $ 1.03 Income (loss) from discontinued operations, net of tax (0.04 ) (0.03 ) (0.08 ) (0.09 ) (0.05 ) Diluted net income per share $ 0.89 $ 1.12 $ 1.03 $ 1.02 $ 0.98 (1) See Exhibit D for additional details. (2) Includes Inigo results from the date of acquisition, February 2, 2026. Radian Group Inc. and Subsidiaries Net Income Per Share Exhibit B The calculation of basic and diluted net income per share is as follows. (In thousands, except per-share amounts) 2026 2025 Qtr 1 (1) Qtr 4 Qtr 3 Qtr 2 Qtr 1 Net income from continuing operations $ 129,466 $ 158,802 $ 152,802 $ 154,485 $ 152,090 Income (loss) from discontinued operations, net of tax (5,373 ) (3,959 ) (11,359 ) (12,689 ) (7,532 ) Net income—basic and diluted $ 124,093 $ 154,843 $ 141,443 $ 141,796 $ 144,558 Average common shares outstanding—basic 137,004 137,032 137,003 137,376 145,618 Dilutive effect of share-based compensation arrangements (2) 1,481 1,218 923 984 2,109 Adjusted average common shares outstanding—diluted 138,485 138,250 137,926 138,360 147,727 Net income per share Basic Net income from continuing operations $ 0.94 $ 1.16 $ 1.12 $ 1.12 $ 1.04 Income (loss) from discontinued operations, net of tax (0.04 ) (0.03 ) (0.08 ) (0.09 ) (0.05 ) Basic net income per share $ 0.90 $ 1.13 $ 1.04 $ 1.03 $ 0.99 Diluted Net income from continuing operations $ 0.93 $ 1.15 $ 1.11 $ 1.11 $ 1.03 Income (loss) from discontinued operations, net of tax (0.04 ) (0.03 ) (0.08 ) (0.09 ) (0.05 ) Diluted net income per share $ 0.89 $ 1.12 $ 1.03 $ 1.02 $ 0.98 (1) Includes Inigo results from the date of acquisition, February 2, 2026. (2) 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. 2026 2025 (In thousands) Qtr 1 Qtr 4 Qtr 3 Qtr 2 Qtr 1 Shares of common stock equivalents — — — 2 24 Radian Group Inc. and Subsidiaries Condensed Consolidated Balance Sheets Exhibit C (In thousands, except per-share amounts) Mar 31,
2026 Dec 31,
2025 Sep 30,
2025 Jun 30,
2025 Mar 31,
2025 Assets Investments $ 7,040,322 $ 5,987,318 $ 5,852,034 $ 5,680,489 $ 5,725,077 Cash 55,445 24,829 15,258 19,013 16,026 Restricted cash 32,534 10 11 28 29 Accrued investment income 51,497 40,285 43,031 43,467 41,973 Premiums and other receivables 665,910 120,197 128,765 125,744 121,052 Reinsurance recoverable 356,521 48,806 44,837 41,653 38,188 Deferred policy acquisition costs and VOBA 188,673 19,018 16,711 17,248 17,855 Goodwill and other acquired intangible assets 420,738 — — — — Prepaid federal income taxes 1,056,329 1,056,329 1,012,629 997,805 921,080 Other assets 504,347 351,337 369,013 411,198 389,255 Assets held for sale 280,060 474,268 722,514 2,267,056 1,517,393 Total assets $ 10,652,376 $ 8,122,397 $ 8,204,803 $ 9,603,701 $ 8,787,928 Liabilities and stockholders’ equity Reserve for losses and loss adjustment expense $ 1,822,619 $ 399,946 $ 387,650 $ 377,231 $ 369,090 Unearned premiums 856,058 159,341 166,165 171,901 178,931 Short-term borrowings 494,730 33,320 50,679 88,963 22,400 Long-term borrowings 773,946 1,075,795 1,076,973 1,076,325 1,075,687 Net deferred tax liability 978,540 942,193 910,256 864,421 826,692 Other liabilities 697,989 366,470 410,232 461,335 415,986 Liabilities held for sale 219,233 363,818 550,399 2,070,844 1,312,316 Total liabilities 5,843,115 3,340,883 3,552,354 5,111,020 4,201,102 Common stock 156 157 157 157 162 Treasury stock (991,427 ) (989,745 ) (989,352 ) (988,764 ) (969,396 ) Additional paid-in capital 842,235 861,211 855,320 847,399 1,048,738 Retained earnings 5,220,411 5,132,050 5,012,742 4,906,830 4,802,038 Accumulated other comprehensive income (loss) (262,114 ) (222,159 ) (226,418 ) (272,941 ) (294,716 ) Total stockholders’ equity 4,809,261 4,781,514 4,652,449 4,492,681 4,586,826 Total liabilities and stockholders’ equity $ 10,652,376 $ 8,122,397 $ 8,204,803 $ 9,603,701 $ 8,787,928 Shares outstanding 134,845 135,498 135,473 135,395 141,220 Book value per share $ 35.67 $ 35.29 $ 34.34 $ 33.18 $ 32.48 Holding company debt-to-capital ratio (1) 20.2 % 18.3 % 18.7 % 19.2 % 18.9 % (1) Calculated as the aggregate carrying value of our senior notes, which were issued and are owed by our holding company, and revolving credit facility, divided by the carrying value of our senior notes, revolving credit facility and stockholders’ equity. This holding company ratio does not include the effects of amounts owed by our subsidiaries related to other borrowings. Radian Group Inc. and Subsidiaries Condensed Consolidated Statements of Operations Detail Exhibit D (page 1 of 4) Net Premiums Earned 2026 2025 (In thousands) Qtr 1 Qtr 4 Qtr 3 Qtr 2 Qtr 1 Mortgage Direct $ 268,902 $ 268,465 $ 266,093 $ 262,044 $ 261,911 Ceded (1) (30,725 ) (31,273 ) (28,990 ) (28,518 ) (27,867 ) Net premiums earned 238,177 237,192 237,103 233,526 234,044 Specialty (2) Direct 108,987 N/A N/A N/A N/A Assumed 94,498 N/A N/A N/A N/A Ceded (39,134 ) N/A N/A N/A N/A Net premiums earned 164,351 N/A N/A N/A N/A Total Direct 377,889 268,465 266,093 262,044 261,911 Assumed 94,498 N/A N/A N/A N/A Ceded (69,859 ) (31,273 ) (28,990 ) (28,518 ) (27,867 ) Total net premiums earned $ 402,528 $ 237,192 $ 237,103 $ 233,526 $ 234,044 (1) Includes profit commission under our Mortgage segment’s QSR Program. (2) Includes Inigo results from the date of acquisition, February 2, 2026. Net Investment Income 2026 2025 (In thousands) Qtr 1 (1) Qtr 4 Qtr 3 Qtr 2 Qtr 1 Fixed maturities $ 60,370 $ 51,655 $ 57,614 $ 57,354 $ 56,649 Equity securities 1,160 1,798 2,446 2,634 2,145 Short-term investments 9,322 10,362 4,503 2,842 3,508 Other (2) (1,154 ) (1,132 ) (1,164 ) (1,158 ) (1,292 ) Net investment income $ 69,698 $ 62,683 $ 63,399 $ 61,672 $ 61,010 (1) Includes Inigo results from the date of acquisition, February 2, 2026. (2) Primarily 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 2026 2025 (In thousands) Qtr 1 Qtr 4 Qtr 3 Qtr 2 Qtr 1 Mortgage Current period (1) $ 59,839 $ 57,047 $ 52,963 $ 47,912 $ 53,740 Prior period (2) (35,563 ) (35,459 ) (35,077 ) (35,958 ) (38,400 ) Provision for losses - Mortgage 24,276 21,588 17,886 11,954 15,340 Specialty (3) Current period (4) 98,846 N/A N/A N/A N/A Prior period (5) (12,578 ) N/A N/A N/A N/A Provision for losses - Specialty 86,268 N/A N/A N/A N/A VOBA - reserves amortization (6) (2,611 ) N/A N/A N/A N/A Total provision for losses $ 107,933 $ 21,588 $ 17,886 $ 11,954 $ 15,340 (1) Related to defaulted loans with the most recent default notice dated in the period indicated. For example, if a loan had defaulted in a prior period, but then subsequently cured and later re-defaulted in the current period, the default would be considered a current period default. (2) Related to defaulted loans with a default notice dated in a period earlier than the period indicated, which have been continuously in default since that time. (3) Includes Inigo results from the date of acquisition, February 2, 2026. (4) Related to provision for losses and loss adjustment expenses for insured events occurring during the current accident period, including estimates for both reported claims and incurred but not reported claims. (5) Related to changes in estimates of losses and loss adjustment expenses related to prior accident years. (6) Represents positive amortization of the VOBA intangible asset attributable to reserves for the period since the date of acquisition, February 2, 2026. Radian Group Inc. and Subsidiaries Condensed Consolidated Statements of Operations Detail Exhibit D (page 3 of 4) Amortization of deferred policy acquisition costs and VOBA 2026 2025 (In thousands) Qtr 1 Qtr 4 Qtr 3 Qtr 2 Qtr 1 Amortization of deferred policy acquisition costs Mortgage $ 6,899 $ 4,280 $ 7,166 $ 7,205 $ 6,388 Specialty (1) 29,065 N/A N/A N/A N/A Purchase accounting adjustments (1) (30,001 ) N/A N/A N/A N/A Amortization of deferred policy acquisition costs 5,963 4,280 7,166 7,205 6,388 Amortization of VOBA (1) 56,106 N/A N/A N/A N/A Amortization of deferred policy acquisition costs and VOBA $ 62,069 $ 4,280 $ 7,166 $ 7,205 $ 6,388 (1) Includes results from the date of acquisition, February 2, 2026. Other Operating Expenses 2026 2025 (In thousands) Qtr 1 (1) Qtr 4 Qtr 3 Qtr 2 Qtr 1 Salaries and other base employee expenses $ 32,972 $ 25,086 $ 24,259 $ 26,932 $ 26,139 Variable and share-based incentive compensation 13,051 16,768 16,115 27,335 15,265 Other general operating expenses (2) 60,366 22,589 29,438 21,986 23,227 Ceding commissions (8,220 ) (8,026 ) (7,556 ) (7,075 ) (6,723 ) Total $ 98,169 $ 56,417 $ 62,256 $ 69,178 $ 57,908 (1) Includes Inigo results from the date of acquisition, February 2, 2026. (2) Includes $22 million in the first quarter of 2026 and $2 million and $9 million in the fourth and third quarter of 2025, respectively, of acquisition-related expenses. Interest Expense 2026 2025 (In thousands) Qtr 1 Qtr 4 Qtr 3 Qtr 2 Qtr 1 Senior notes $ 15,839 $ 15,829 $ 15,819 $ 15,810 $ 15,800 Letter of credit fees (1) 2,290 — — — — Revolving credit facility 1,996 389 258 741 264 FHLB advances 469 458 1,107 877 425 Loss on extinguishment of debt — 513 — — — Total interest expense $ 20,594 $ 17,189 $ 17,184 $ 17,428 $ 16,489 (1) Represents interest expense on Inigo’s letter of credit facility and includes Inigo’s results from the date of acquisition, February 2, 2026. Radian Group Inc. and Subsidiaries Condensed Consolidated Statements of Operations Detail Exhibit D (page 4 of 4) Discontinued Operations 2026 2025 (In thousands) Qtr 1 Qtr 4 Qtr 3 Qtr 2 Qtr 1 Revenues Net premiums earned $ 5,037 $ 5,248 $ 4,624 $ 3,995 $ 2,634 Services revenue 13,656 13,640 12,352 10,882 11,943 Net investment income 5,091 7,089 10,744 11,097 7,564 Net gains (losses) on financial instruments and foreign exchange 1,409 (576 ) 2,191 (6,703 ) 1,278 Income (loss) on consolidated VIEs — — (2,129 ) 185 428 Other income 1,685 (176 ) (332 ) (3 ) (568 ) Total revenues 26,878 25,225 27,450 19,453 23,279 Expenses Provision for losses 209 311 129 143 (173 ) Cost of services 10,152 9,735 8,729 8,412 8,673 Other operating expenses 20,155 16,136 23,732 20,225 19,039 Interest expense 3,613 4,802 8,105 8,446 6,010 Total expenses 34,129 30,984 40,695 37,226 33,549 Pretax income (loss) from discontinued operations (7,251 ) (5,759 ) (13,245 ) (17,773 ) (10,270 ) Income tax provision (benefit) (1,878 ) (1,800 ) (1,886 ) (5,084 ) (2,738 ) Income (loss) from discontinued operations, net of tax $ (5,373 ) $ (3,959 ) $ (11,359 ) $ (12,689 ) $ (7,532 ) Radian Group Inc. and Subsidiaries Segment Information Exhibit E (page 1 of 3) Subsequent to the acquisition of Inigo in the first quarter of 2026, our Chief Executive Officer (Radian’s chief operating decision maker) implemented certain changes that caused the composition of our reportable segments and the allocations of certain expenses for segment measurements to change. We have reflected these changes in our segment operating results for all periods presented, as shown below. Effective with the first quarter of 2026, we have two reportable business segments that are managed separately, Mortgage and Specialty. In addition to these reportable segments, effective with the first quarter of 2026, we report in a Corporate category activities that include: (i) income (losses) from assets held by Radian Group; (ii) interest expense from Radian Group’s borrowings, including the Intercompany Note with Radian Guaranty; and (iii) general corporate operating expenses not attributable or allocated to our reportable segments, related primarily to corporate oversight activities. The results of our Mortgage Conduit, Title and Real Estate Services businesses are reflected in income (loss) from discontinued operations, net of tax, in our condensed consolidated statements of operations for all periods presented. See Exhibit D for details on our discontinued operations. Summarized financial information concerning our reportable segments, Mortgage and Specialty, and our Corporate activities for the periods indicated is as follows. For a definition of adjusted pretax operating income, along with a reconciliation to its most comparable GAAP measure, see Exhibits F and G. Three Months Ended March 31, 2026 (In thousands) Mortgage Specialty (1) Corporate Inter-
segment (2) Total Net premiums written $ 233,265 $ 148,483 $ — $ — $ 381,748 (Increase) decrease in unearned premiums 4,912 15,868 — — 20,780 Net premiums earned 238,177 164,351 — — 402,528 Net investment income (2) 53,327 16,899 9,222 (9,750 ) 69,698 Other income 1,663 1,327 — — 2,990 Total 293,167 182,577 9,222 (9,750 ) 475,216 Provision for losses 24,276 86,268 — — 110,544 Amortization of deferred policy acquisition costs 6,899 29,065 — — 35,964 Other operating expenses 40,723 24,885 10,699 — 76,307 Interest expense (2) 470 2,290 27,584 (9,750 ) 20,594 Total 72,368 142,508 38,283 (9,750 ) 243,409 Adjusted pretax operating income (loss) $ 220,799 $ 40,069 $ (29,061 ) $ — $ 231,807 (1) Includes Inigo results from the date of acquisition, February 2, 2026. (2) Net investment income for the Mortgage segment and interest expense for the Corporate category each include $10 million related to interest on an intercompany loan issued by Radian Guaranty to Radian Group in connection with the Inigo acquisition, which is eliminated in consolidation. Three Months Ended March 31, 2025 (In thousands) Mortgage Specialty Corporate Inter-
segment Total Net premiums written $ 230,250 N/A $ — $ — $ 230,250 (Increase) decrease in unearned premiums 3,794 N/A — — 3,794 Net premiums earned 234,044 N/A — — 234,044 Net investment income 48,451 N/A 12,559 — 61,010 Other income 1,782 N/A — — 1,782 Total 284,277 N/A 12,559 — 296,836 Provision for losses 15,340 N/A — — 15,340 Amortization of deferred policy acquisition costs 6,388 N/A — — 6,388 Other operating expenses 43,203 N/A 14,321 — 57,524 Interest expense 425 N/A 16,064 — 16,489 Total 65,356 N/A 30,385 — 95,741 Adjusted pretax operating income (loss) $ 218,921 N/A $ (17,826 ) $ — $ 201,095 Radian Group Inc. and Subsidiaries Segment Information Exhibit E (page 2 of 3) Mortgage 2026 2025 (In thousands) Qtr 1 Qtr 4 Qtr 3 Qtr 2 Qtr 1 Net premiums written $ 233,265 $ 234,431 $ 235,733 $ 231,596 $ 230,250 (Increase) decrease in unearned premiums 4,912 2,761 1,370 1,930 3,794 Net premiums earned 238,177 237,192 237,103 233,526 234,044 Net investment income (1) 53,327 50,140 51,965 53,289 48,451 Other income 1,663 1,796 1,399 1,502 1,782 Total 293,167 289,128 290,467 288,317 284,277 Provision for losses 24,276 21,588 17,886 11,954 15,340 Amortization of deferred policy acquisition costs 6,899 4,280 7,166 7,205 6,388 Other operating expenses 40,723 40,808 39,159 51,881 43,203 Interest expense 470 458 1,107 877 425 Total 72,368 67,134 65,318 71,917 65,356 Adjusted pretax operating income $ 220,799 $ 221,994 $ 225,149 $ 216,400 $ 218,921 (1) Net investment income for the first quarter of 2026 includes $10 million related to interest receivable on the intercompany loan issued by Radian Guaranty to Radian Group in connection with the Inigo acquisition. A corresponding amount is reported as interest expense for the Corporate category and eliminated in consolidation. Corporate 2026 2025 (In thousands) Qtr 1 Qtr 4 Qtr 3 Qtr 2 Qtr 1 Net investment income $ 9,222 $ 12,760 $ 11,434 $ 8,383 $ 12,559 Total 9,222 12,760 11,434 8,383 12,559 Other operating expenses 10,699 14,754 14,414 17,297 14,321 Interest expense (1) 27,584 16,435 16,077 16,551 16,064 Total 38,283 31,189 30,491 33,848 30,385 Adjusted pretax operating income (loss) $ (29,061 ) $ (18,429 ) $ (19,057 ) $ (25,465 ) $ (17,826 ) (1) Interest expense for the first quarter of 2026 includes $10 million related to interest payable on the intercompany loan issued by Radian Guaranty to Radian Group in connection with the Inigo acquisition. A corresponding amount is reported as net investment income for the Mortgage segment and eliminated in consolidation. Radian Group Inc. and Subsidiaries Segment Information Exhibit E (page 3 of 3) Selected Key Segment Ratios 2026 2025 (In thousands) Qtr 1 Qtr 4 Qtr 3 Qtr 2 Qtr 1 Mortgage Loss ratio (1) 10.2 % 9.1 % 7.5 % 5.1 % 6.6 % Expense ratio (2) 20.0 % 19.0 % 19.5 % 25.3 % 21.2 % Combined ratio (3) 30.2 % 28.1 % 27.0 % 30.4 % 27.8 % Specialty (4) Loss ratio (1) 52.5 % N/A N/A N/A N/A Expense ratio (2) 32.8 % N/A N/A N/A N/A Combined ratio (3) 85.3 % N/A N/A N/A N/A (1) Calculated as each segment’s provision for losses expressed as a percentage of net premiums earned. (2) Calculated as each segment’s operating expenses (which consist of amortization of deferred policy acquisition costs and other operating expenses) expressed as a percentage of net premiums earned. (3) Calculated as the sum of each segment’s Loss ratio and Expense ratio. (4) Includes Inigo results from the date of acquisition, February 2, 2026. Radian Group Inc. and Subsidiaries Definition of 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 on a continuing operations basis, 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. The results of our Mortgage Conduit, Title and Real Estate Services businesses are included in income (loss) from discontinued operations, net of tax, for all periods presented herein. The calculation of adjusted pretax operating income, as detailed below, excludes income (loss) from discontinued operations, net of tax, for all periods presented herein. As a result, the calculations of adjusted diluted net operating income per share and adjusted net operating return on equity also exclude income (loss) from discontinued operations, net of tax, for all periods presented herein. Adjusted pretax operating income (loss) is defined as GAAP pretax income (loss) from continuing operations excluding the effects of: (i) net gains (losses) on financial instruments and foreign exchange, (ii) amortization of other acquired intangible assets, (iii) other purchase accounting adjustments, net, and (iv) acquisition-related expenses and other non-operating items, such as impairment of internal-use software and other long-lived assets and gains (losses) on extinguishment of debt, among others. Adjusted diluted net operating income (loss) per share is calculated by dividing adjusted pretax operating income (loss), net of taxes computed using the company’s effective tax rate, by the sum of the weighted average number of common shares outstanding and all dilutive potential common shares outstanding. Adjusted net operating return on equity is calculated by dividing annualized adjusted pretax operating income (loss), net of taxes computed using the company’s effective tax rate, by average stockholders’ equity, based on the average of the beginning and ending balances for each period presented. Although adjusted pretax operating income (loss) excludes certain items that have occurred in the past and are expected to occur in the future, the excluded items represent those that are: (i) not viewed as part of the operating performance of our primary activities or (ii) not expected to result in an economic impact equal to the amount reflected in pretax income (loss) from continuing operations. These adjustments, along with the reasons for their treatment, are described below. (1) Net gains (losses) on financial instruments and foreign exchange. The recognition of realized gains or losses on financial instruments and foreign currency exchange gains or losses can vary significantly across periods as such amounts are influenced by discretionary actions, including the timing of individual securities transactions, as well as by market conditions, our tax and capital profile, foreign currency movements, 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 and from changes in foreign exchange rates affecting monetary assets and liabilities. 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, foreign currency exchange impacts, and changes in fair value of financial instruments. (2) Amortization of other acquired intangible assets. Amortization of other 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. Radian Group Inc. and Subsidiaries Definition of Non-GAAP Financial Measures Exhibit F (page 2 of 2) (3) Other purchase accounting adjustments, net. Other purchase accounting adjustments include amortization related to VOBA and other impacts resulting from purchase accounting, such as the reversal of amortization related to Inigo’s historical deferred acquisition costs and capitalized software as of the acquisition date. These non-cash amounts arise from acquisition-related accounting requirements and do not necessarily reflect the underlying operating performance of the acquired business. (4) Acquisition-related expenses and other non-operating items. Acquisition-related expenses and other non-operating items includes activities that we do not view to be indicative of our fundamental operating activities, such as: (i) acquisition-related income and expenses, (ii) impairment of internal-use software and other long-lived assets; and (iii) gains (losses) on extinguishment of debt. See Exhibit G for the reconciliations of the most comparable GAAP measures, pretax income (loss) from continuing operations, diluted net income (loss) from continuing operations per share and return on equity from continuing operations 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) from continuing operations, diluted net income (loss) from continuing operations per share or return on equity from continuing operations. 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 Non-GAAP Financial Measure Reconciliations Exhibit G (page 1 of 2) Reconciliation of Pretax Income from Continuing Operations to Adjusted Pretax Operating Income 2026 2025 (In thousands) Qtr 1 (1) Qtr 4 Qtr 3 Qtr 2 Qtr 1 Pretax income from continuing operations $ 173,663 $ 201,038 $ 198,694 $ 192,786 $ 198,710 Less reconciling income (expense) items Net gains (losses) on financial instruments and foreign exchange (8,879 ) (1,159 ) 1,285 1,850 (2,001 ) Amortization of other acquired intangible assets (3,909 ) — — — — Other purchase accounting adjustments, net (23,330 ) (2) — — — — Acquisition-related expenses and other non-operating items (3) (22,026 ) (1,368 ) (8,683 ) — (384 ) Total adjusted pretax operating income (4) $ 231,807 $ 203,565 $ 206,092 $ 190,936 $ 201,095 (1) Includes Inigo results from the date of acquisition, February 2, 2026. (2) Primarily includes $53 million of net VOBA asset and liability amortization, offset by $30 million reversal of policy acquisition costs that are reflected in the Specialty segment results but eliminated under purchase accounting on a consolidated basis. (3) Acquisition-related expenses and other non-operating items for the first quarter of 2026 relates primarily to acquisition-related expenses for investment banking fees, transfer taxes, legal costs and other transaction expenses, which are included in other operating expenses on the Condensed Consolidated Statement of Operations in Exhibit A. (4) Total adjusted pretax operating income consists of adjusted pretax operating income (loss) for our reportable segments and Corporate activities as follows: 2026 2025 (In thousands) Qtr 1 Qtr 4 Qtr 3 Qtr 2 Qtr 1 Adjusted pretax operating income (loss) Mortgage segment $ 220,799 $ 221,994 $ 225,149 $ 216,400 $ 218,921 Specialty segment (a) 40,069 N/A N/A N/A N/A Corporate activities (29,061 ) (18,429 ) (19,057 ) (25,465 ) (17,826 ) Total adjusted pretax operating income $ 231,807 $ 203,565 $ 206,092 $ 190,935 $ 201,095 (a) Includes results from the date of acquisition, February 2, 2026. Reconciliation of Diluted Net Income from Continuing Operations Per Share
to Adjusted Diluted Net Operating Income Per Share 2026 2025 Qtr 1 Qtr 4 Qtr 3 Qtr 2 Qtr 1 Diluted net income from continuing operations per share $ 0.93 $ 1.15 $ 1.11 $ 1.11 $ 1.03 Less per-share impact of reconciling income (expense) items Net gains (losses) on financial instruments and foreign exchange (0.06 ) (0.01 ) 0.01 0.01 (0.02 ) Amortization of other acquired intangible assets (0.03 ) — — — — Other purchase accounting adjustments, net (0.17 ) — — — — Acquisition-related expenses and other non-operating items (0.16 ) (0.01 ) (0.06 ) — — Income tax (provision) benefit on reconciling income (expense) items (1) 0.08 0.01 0.01 (0.01 ) 0.01 Per-share impact of reconciling income (expense) items (0.34 ) (0.01 ) (0.04 ) — (0.01 ) Adjusted diluted net operating income per share $ 1.27 $ 1.16 $ 1.15 $ 1.11 $ 1.04 (1) Calculated using the company’s statutory tax rates of 21% for U.S. based adjustments and 25% for U.K. based adjustments. Radian Group Inc. and Subsidiaries Non-GAAP Financial Measure Reconciliations Exhibit G (page 2 of 2) Reconciliation of Return on Equity from Continuing Operations to Adjusted Net Operating Return on Equity (1) 2026 2025 Qtr 1 Qtr 4 Qtr 3 Qtr 2 Qtr 1 Return on equity from continuing operations (1) 10.8 % 13.5 % 13.4 % 13.6 % 13.2 % Less impact of reconciling income (expense) items (2) Net gains (losses) on financial instruments and foreign exchange (0.7 )% (0.1 )% 0.1 % 0.1 % (0.3 )% Amortization of other acquired intangible assets (0.3 )% — % — % — % — % Other purchase accounting adjustments, net (2.0 )% — % — % — % — % Acquisition-related expenses and other non-operating items (1.8 )% (0.1 )% (0.7 )% — % — % Income tax (provision) benefit on reconciling income (expense) items (3) 0.9 % 0.1 % 0.1 % — % 0.1 % Impact of reconciling income (expense) items (3.9 )% (0.1 )% (0.5 )% 0.1 % (0.2 )% Adjusted net operating return on equity 14.7 % 13.6 % 13.9 % 13.5 % 13.4 % (1) Calculated by dividing annualized net income from continuing operations 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 statutory tax rates of 21% for U.S. based adjustments and 25% for U.K. based adjustments. See Exhibit F for additional information on our non-GAAP financial measures. Radian Group Inc. and Subsidiaries Mortgage Supplemental Information - New Insurance Written Exhibit H 2026 2025 ($ in millions) Qtr 1 Qtr 4 Qtr 3 Qtr 2 Qtr 1 NIW $ 13,490 $ 15,850 $ 15,497 $ 14,330 $ 9,489 NIW by premium type Direct monthly and other recurring premiums 97.7 % 97.2 % 96.4 % 96.4 % 96.4 % Direct single premiums 2.3 % 2.8 % 3.6 % 3.6 % 3.6 % NIW for purchases 78.6 % 85.2 % 94.8 % 94.6 % 95.6 % NIW for refinances 21.4 % 14.8 % 5.2 % 5.4 % 4.4 % NIW by FICO score (1) >=740 66.7 % 65.5 % 63.5 % 68.2 % 68.1 % 680-739 28.4 % 29.7 % 31.8 % 27.0 % 27.0 % 620-679 4.6 % 4.8 % 4.7 % 4.8 % 4.9 % =740 60.7 % 60.7 % 60.7 % 60.6 % 60.3 % 680-739 32.4 % 32.4 % 32.3 % 32.2 % 32.4 % 620-679 6.7 % 6.7 % 6.8 % 6.9 % 7.0 %

Radian Announces Fourth Quarter and Full Year 2025 Financial ResultsFebruary 18, 2026 4:30 PM
Business Wire
— Radian completes acquisition of Inigo in February 2026, becoming a global multi-line specialty insurer —

— Fourth quarter net income from continuing operations of $159 million, or $1.15 per diluted share —

— Full year net income from continuing operations of $618 million, or $4.39 per diluted share —

— Full year return on equity from continuing operations of 13.1% —

— Book value per share growth of 13% year-over-year to $35.29 —

— Primary mortgage insurance in force grew to another all-time high of $282.5 billion —

— $795 million total distributions paid from Radian Guaranty to holding company during 2025 —

— Returned $576 million of capital to stockholders through dividends and share repurchases during 2025 —

Radian Group Inc. (NYSE: RDN) today reported net income from continuing operations for the quarter ended December 31, 2025, of $159 million, or $1.15 per diluted share. This compares with net income from continuing operations for the quarter ended December 31, 2024, of $164 million, or $1.08 per diluted share.

Net income from continuing operations for the full year 2025 was $618 million, or $4.39 per diluted share. This compares with net income from continuing operations for the full year 2024 of $660 million, or $4.28 per diluted share.

Pretax income from continuing operations for the quarter ended December 31, 2025, was $201 million compared to $210 million for the quarter ended December 31, 2024. Pretax income from continuing operations for the full year 2025 was $791 million, compared to $846 million for the full year 2024.

Adjusted pretax operating income for the quarter ended December 31, 2025, was $204 million compared to $220 million for the quarter ended December 31, 2024. Adjusted diluted net operating income per share for the quarter ended December 31, 2025, was $1.16 compared to $1.13 for the quarter ended December 31, 2024.

Adjusted pretax operating income for the full year 2025 was $802 million compared to $867 million for the full year 2024. Adjusted diluted net operating income per share for the full year 2025 was $4.45 compared to $4.39 for the full year 2024.

Key Financial Highlights

Quarter ended

Year ended

($ in millions, except per-share amounts)

December 31,

2025

September 30,

2025

December 31,

2024

December 31,

2025

December 31,

2024

Total revenues

$301

$303

$293

$1,197

$1,206

Net income

$155

$141

$148

$583

$604

Net income from continuing operations

$159

$153

$164

$618

$660

Diluted net income from continuing operations per share

$1.15

$1.11

$1.08

$4.39

$4.28

Pretax income from continuing operations

$201

$199

$210

$791

$846

Adjusted pretax operating income (1)

$204

$206

$220

$802

$867

Adjusted diluted net operating income per share (1)

$1.16

$1.15

$1.13

$4.45

$4.39

Return on equity from continuing operations

13.5%

13.4%

14.1%

13.1%

14.6%

Adjusted net operating return on equity (1)

13.6%

13.9%

14.7%

13.3%

15.0%

New insurance written

$15,850

$15,497

$13,186

$55,166

$51,984

Net premiums earned

$237

$237

$235

$942

$939

New defaults

14,201

13,378

13,967

51,551

50,535

As of

($ in millions, except per-share amounts)

December 31,

2025

September 30,

2025

December 31,

2024

Book value per share

$35.29

$34.34

$31.33

Accumulated other comprehensive income (loss) value per share

$(1.64)

$(1.67)

$(2.37)

PMIERs Available Assets

$5,384

$5,958

$6,039

PMIERs excess Available Assets

$1,560

$1,876

$2,158

Available holding company liquidity (2)

$1,834

$995

$885

Total investments

$5,987

$5,852

$5,702

Assets held for sale

$474

$723

$1,447

Liabilities held for sale

$364

$550

$1,240

Primary mortgage insurance in force

$282,519

$280,559

$275,126

Percentage of primary loans in default

2.56%

2.42%

2.44%

Loss reserves

$400

$388

$354

(1)

Adjusted results, including adjusted pretax operating income, adjusted diluted net operating income per share and adjusted net operating return on equity, are on a continuing operations basis and are non-GAAP financial measures on a consolidated basis. For definitions and reconciliations of these measures to the comparable GAAP measures, see Exhibits F and G.

(2)

Represents Radian Group’s available liquidity without considering available capacity under its unsecured revolving credit facility.

Book value per share at December 31, 2025, was $35.29 compared to $34.34 at September 30, 2025, and $31.33 at December 31, 2024. This represents a 13% growth in book value per share at December 31, 2025, as compared to December 31, 2024, and includes accumulated other comprehensive income (loss) of $(1.64) per share as of December 31, 2025, and $(2.37) per share as of December 31, 2024. Changes in accumulated other comprehensive income (loss) are primarily from net unrealized gains or losses on investments as a result of decreases or increases, respectively, in market interest rates.

“We delivered a strong year in 2025, driven by the consistent performance of our mortgage insurance business and the disciplined way we manage risk and capital. Just as importantly, we took meaningful steps to shape our company for the future – simplifying our focus and acquiring Inigo to expand our reach as a global multi-line specialty insurer,” said Radian’s Chief Executive Officer, Rick Thornberry. “As we look forward to the opportunities ahead in 2026, we are building from a position of strength with a focused strategy, a talented team, and the financial flexibility to invest in growth while continuing to return capital to stockholders. We believe this positions Radian to continue to deliver long-term value across market cycles.”

FOURTH QUARTER AND FULL YEAR HIGHLIGHTS

Mortgage insurance new insurance written was $15.9 billion in the fourth quarter of 2025 compared to $15.5 billion in the third quarter of 2025 and $13.2 billion in the fourth quarter of 2024. Mortgage insurance new insurance written was $55.2 billion for the full year 2025 compared to $52.0 billion for the prior year.

Refinances accounted for 15% of total NIW in the fourth quarter of 2025 compared to 5% in the third quarter of 2025 and 10% in the fourth quarter of 2024.

Additional details regarding NIW may be found in Exhibit H.

Total primary mortgage insurance in force of $282.5 billion as of December 31, 2025, compared to $280.6 billion as of September 30, 2025, and $275.1 billion as of December 31, 2024.

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, 2025, compared to 84% for the twelve months ended September 30, 2025, and 84% for the twelve months ended December 31, 2024.

Annualized persistency for the three months ended December 31, 2025, was 82% compared to 84% for the three months ended September 30, 2025, and 83% for the three months ended December 31, 2024.

Additional details regarding our primary mortgage insurance in force may be found in Exhibit I.

Net mortgage insurance premiums earned were $237 million for the fourth quarter of 2025 compared to $237 million for the third quarter of 2025 and $235 million for the fourth quarter of 2024.

Mortgage insurance in force portfolio premium yield was 37.9 basis points in the fourth quarter of 2025. This compares to 37.9 basis points in the third quarter of 2025 and 38.0 basis points in the fourth quarter of 2024.

Total net mortgage insurance premium yield, which includes the impact of ceded premiums earned and accrued profit commission, was 33.8 basis points in the fourth quarter of 2025. This compares to 34.0 basis points in the third quarter of 2025 and 34.2 basis points in the fourth quarter of 2024.

Additional details regarding premiums earned may be found in Exhibit D.

The mortgage insurance provision for losses was $22 million in the fourth quarter of 2025 compared to $18 million in the third quarter of 2025 and a de minimis amount in the fourth quarter of 2024.

Favorable reserve development on prior period defaults was $35 million in the fourth quarter of 2025 compared to $35 million in the third quarter of 2025 and $56 million in the fourth quarter of 2024.

The number of primary delinquent loans was 25,230 as of December 31, 2025, compared to 23,819 as of September 30, 2025, and 24,055 as of December 31, 2024.

The loss ratio in the fourth quarter of 2025 was 9% compared to 8% in the third quarter of 2025 and 0% in the fourth quarter of 2024.

Total mortgage insurance net claims paid, which include the impact of settlements and commutations, were $13 million in the fourth quarter of 2025 compared to $10 million in the third quarter of 2025 and $5 million in the fourth quarter of 2024. For the full year 2025, total mortgage insurance net claims paid were $34 million, compared to $17 million for the full year of 2024.

Additional details regarding mortgage insurance provision for losses may be found in Exhibit D.

Other operating expenses were $56 million in the fourth quarter of 2025 compared to $62 million in the third quarter of 2025 and $58 million in the fourth quarter of 2024. Other operating expenses were $246 million for the full year 2025, compared to $248 million for the full year 2024.

Details regarding other operating expenses may be found in Exhibit D.

CAPITAL AND LIQUIDITY UPDATE

Radian Group

Radian Group paid a dividend on its common stock in the amount of $0.255 per share, totaling $35 million, in the fourth quarter of 2025.

Radian Group’s available liquidity increased from $995 million as of September 30, 2025, to $1.8 billion as of December 31, 2025, resulting from funds received from Radian Guaranty during the fourth quarter of 2025 in the form of a $195 million ordinary dividend and a $600 million intercompany borrowing, as discussed in more detail below. Total holding company liquidity as of December 31, 2025, including the company’s $500 million unsecured revolving credit facility that was undrawn as of that date, was $2.3 billion.

In January 2026, Radian Group drew $200 million on our unsecured revolving credit facility. We expect to repay this borrowing during 2026.

On February 2, 2026, Radian Group completed its strategic acquisition of Inigo Limited (“Inigo”), a Lloyd’s of London (“Lloyd's”) specialty insurer. Radian funded the acquisition from Radian Group’s available liquidity sources. See “Strategic Update” below for additional details.

Radian Guaranty

Radian Guaranty distributed $795 million to Radian Group through dividends and return of capital in 2025, including a $195 million ordinary dividend in the fourth quarter of 2025.

In December 2025, Radian Group executed a $600 million intercompany note agreement to borrow funds from Radian Guaranty to fund a portion of the purchase price payment to acquire Inigo, as discussed below. The note has a ten-year term, bears interest at a rate of 6.50% per annum and was approved by the Pennsylvania Insurance Department. As a condition of this approval, Radian Guaranty is required to comply with certain conditions while the note is outstanding, including, most notably, obtaining prior approval from the Pennsylvania Insurance Department for all dividends paid by Radian Guaranty for an expected period of at least three years and maintaining a minimum policyholders’ surplus of $500 million, among other conditions.

Radian Guaranty expects to pay over $600 million in ordinary dividends to Radian Group during 2026. As noted, these dividends require prior approval from the Pennsylvania Insurance Department.

During the fourth quarter of 2025, Radian Guaranty entered into an excess of loss (XOL) reinsurance arrangement with a panel of highly rated third-party reinsurance providers. This arrangement is consistent with the company’s use of risk distribution strategies to effectively manage capital and proactively mitigate risk. The agreement, which is effective December 2025, secures approximately $373 million of XOL reinsurance coverage on certain policies written from 2016 through 2021.

At December 31, 2025, Radian Guaranty’s Available Assets under PMIERs totaled $5.4 billion, resulting in PMIERs excess Available Assets of $1.6 billion.

STRATEGIC UPDATE

Discontinued Operations

Consistent with the previously announced divestiture plan of its Mortgage Conduit, Title and Real Estate Services businesses, the Company is engaged in active discussions with potential acquirers and continues to expect to complete the divestiture plan by the end of the third quarter of 2026.

During the fourth quarter of 2025, Radian Group received $62 million in distributions from its businesses held for sale. These distributions reduced the net carrying value of the assets and liabilities held for sale related to these three businesses to $110 million as of December 31, 2025, including the impact of estimated costs related to the sales.

Additional details regarding discontinued operations may be found in Exhibit D.

Inigo Acquisition

On February 2, 2026, Radian Group announced that it has completed its strategic acquisition of Inigo, a Lloyd’s specialty insurer, for $1.67 billion in a primarily all-cash transaction.

This strategic acquisition marks an important milestone in Radian’s expansion from a leading U.S. mortgage insurer to a global, diversified multi-line specialty insurer, significantly increasing the company’s product expertise and capabilities.

The transaction values Inigo at approximately 1.4 times(1) its estimated tangible equity at the end of 2025. The acquisition is expected to deliver mid-teens percentage accretion to earnings per share and approximately 200 basis points accretion to return on equity in 2026. Radian expects the acquisition will double its total annual revenue and provide flexibility to deploy capital across multiple insurance lines through various business cycles.

(1)

Estimate presented on a U.K. GAAP basis. The difference between U.K. and U.S. GAAP is expected to be limited.

CONFERENCE CALL

Radian will discuss fourth quarter 2025 financial results in a conference call tomorrow, Thursday, February 19, 2026, at 11:00 a.m. Eastern time. The conference call will be webcast live on the company’s website at www.radian.com/for-investors/investor-events 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 www.radian.com/for-investors/investor-events.

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, each from continuing operations (non-GAAP measures on a consolidated basis) 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. 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 pretax income (loss) from continuing operations excluding the effects of: (i) net gains (losses) on investments and other financial instruments, and (ii) impairment of other long-lived assets and other non-operating items, if any, such as gains (losses) from the sale of lines of business, acquisition-related income (expenses) and gains (losses) on extinguishment of debt, among others. Adjusted diluted net operating income (loss) per share is calculated by dividing adjusted pretax operating income (loss), net of taxes computed using the company’s effective tax rate, by the sum of the weighted average number of common shares outstanding and all dilutive potential common shares outstanding. Adjusted net operating return on equity is calculated by dividing annualized adjusted pretax operating income (loss), net of taxes computed using the company’s effective tax rate, by average stockholders’ equity, based on the average of the beginning and ending balances for each period presented.

See Exhibit F or Radian’s website for a description of these items, as well as Exhibit G for reconciliations to the most comparable GAAP measures.

ABOUT RADIAN

As a leading U.S. private mortgage insurer, Radian Group Inc. (NYSE: RDN) provides solutions that expand access to affordable, responsible and sustainable homeownership and helps borrowers achieve their dream of owning a home. For more information www.radian.com.

FINANCIAL RESULTS AND SUPPLEMENTAL INFORMATION CONTENTS (Unaudited)

Exhibit A:

Condensed Consolidated Statements of Operations

Exhibit B:

Net Income Per Share

Exhibit C:

Condensed Consolidated Balance Sheets

Exhibit D:

Condensed Consolidated Statements of Operations Detail

Exhibit E:

Segment Information

Exhibit F:

Definition of Consolidated Non-GAAP Financial Measures

Exhibit G:

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)

(In thousands, except per-share amounts)

2025

2024

Qtr 4

Qtr 3

Qtr 2

Qtr 1

Qtr 4

Revenues

Net premiums earned

$

237,192

$

237,103

$

233,526

$

234,044

$

235,276

Net investment income

62,683

63,399

61,672

61,010

62,211

Net gains (losses) on investments and other financial instruments

(1,159

)

1,285

1,851

(2,001

)

(6,750

)

Other income

1,796

1,399

1,502

1,782

1,932

Total revenues

300,512

303,186

298,551

294,835

292,669

Expenses

Provision for losses

21,588

17,886

11,954

15,340

61

Policy acquisition costs

4,280

7,166

7,205

6,388

7,276

Other operating expenses

56,417

62,256

69,178

57,908

58,398

Interest expense

17,189

17,184

17,428

16,489

16,550

Total expenses

99,474

104,492

105,765

96,125

82,285

Pretax income from continuing operations

201,038

198,694

192,786

198,710

210,384

Income tax provision

42,236

45,892

38,301

46,620

46,629

Net income from continuing operations

158,802

152,802

154,485

152,090

163,755

Income (loss) from discontinued operations, net of tax

(3,959

)

(11,359

)

(12,689

)

(7,532

)

(15,464

)

Net income

$

154,843

$

141,443

$

141,796

$

144,558

$

148,291

Diluted net income per share

Net income from continuing operations

$

1.15

$

1.11

$

1.11

$

1.03

$

1.08

Income (loss) from discontinued operations, net of tax

(0.03

)

(0.08

)

(0.09

)

(0.05

)

(0.10

)

Diluted net income per share

$

1.12

$

1.03

$

1.02

$

0.98

$

0.98

(1) 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)

2025

2024

Revenues

Net premiums earned

$

941,865

$

939,237

Net investment income

248,764

264,814

Net gains (losses) on investments and other financial instruments

(24

)

(4,347

)

Other income

6,479

6,595

Total revenues

1,197,084

1,206,299

Expenses

Provision for losses

66,768

(2,248

)

Policy acquisition costs

25,039

27,316

Other operating expenses

245,759

247,618

Interest expense

68,290

88,006

Total expenses

405,856

360,692

Pretax income from continuing operations

791,228

845,607

Income tax provision

173,049

185,292

Net income from continuing operations

618,179

660,315

Income (loss) from discontinued operations, net of tax

(35,539

)

(55,875

)

Net income

$

582,640

$

604,440

Diluted net income per share

Net income from continuing operations

$

4.39

$

4.28

Income (loss) from discontinued operations, net of tax

(0.25

)

(0.36

)

Diluted net income per share

$

4.14

$

3.92

(1) See Exhibit D for additional details.

Radian Group Inc. and Subsidiaries

Net Income Per Share

Exhibit B (page 1 of 2)

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

(In thousands, except per-share amounts)

2025

2024

Qtr 4

Qtr 3

Qtr 2

Qtr 1

Qtr 4

Net income from continuing operations

$

158,802

$

152,802

$

154,485

$

152,090

$

163,755

Income (loss) from discontinued operations, net of tax

(3,959

)

(11,359

)

(12,689

)

(7,532

)

(15,464

)

Net income—basic and diluted

$

154,843

$

141,443

$

141,796

$

144,558

$

148,291

Average common shares outstanding—basic

137,032

137,003

137,376

145,618

150,302

Dilutive effect of share-based compensation arrangements (1)

1,218

923

984

2,109

1,610

Adjusted average common shares outstanding—diluted

138,250

137,926

138,360

147,727

151,912

Net income per share

Basic

Net income from continuing operations

$

1.16

$

1.12

$

1.12

$

1.04

$

1.09

Income (loss) from discontinued operations, net of tax

(0.03

)

(0.08

)

(0.09

)

(0.05

)

(0.10

)

Basic net income per share

$

1.13

$

1.04

$

1.03

$

0.99

$

0.99

Diluted

Net income from continuing operations

$

1.15

$

1.11

$

1.11

$

1.03

$

1.08

Income (loss) from discontinued operations, net of tax

(0.03

)

(0.08

)

(0.09

)

(0.05

)

(0.10

)

Diluted net income per share

$

1.12

$

1.03

$

1.02

$

0.98

$

0.98

(1)

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

2025

2024

(In thousands)

Qtr 4

Qtr 3

Qtr 2

Qtr 1

Qtr 4

Shares of common stock equivalents

—

—

2

24

9

Radian Group Inc. and Subsidiaries

Net Income Per Share

Exhibit B (page 2 of 2)

Years Ended December 31,

(In thousands, except per-share amounts)

2025

2024

Net income from continuing operations—basic and diluted

$

618,179

$

660,315

Income (loss) from discontinued operations, net of tax

(35,539

)

(55,875

)

Net income—basic and diluted

$

582,640

$

604,440

Average common shares outstanding—basic

139,445

152,465

Dilutive effect of share-based compensation arrangements (1)

1,366

1,726

Adjusted average common shares outstanding—diluted

140,811

154,191

Net income per share

Basic

Net income from continuing operations

$

4.43

$

4.33

Income (loss) from discontinued operations, net of tax

(0.25

)

(0.37

)

Basic net income per share

$

4.18

$

3.96

Diluted

Net income from continuing operations

$

4.39

$

4.28

Income (loss) from discontinued operations, net of tax

(0.25

)

(0.36

)

Diluted net income per share

$

4.14

$

3.92

(1)

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

Years Ended December 31,

(In thousands)

2025

2024

Shares of common stock equivalents

—

11

Radian Group Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

Exhibit C

(In thousands, except per-share amounts)

Dec 31,

Sep 30,

Jun 30,

Mar 31,

Dec 31,

2025

2025

2025

2025

2024

Assets

Investments

$

5,987,318

$

5,852,034

$

5,680,489

$

5,725,077

$

5,701,831

Cash

24,829

15,258

19,013

16,026

19,220

Restricted cash

10

11

28

29

30

Accrued investment income

40,285

43,031

43,467

41,973

44,308

Accounts and notes receivable

120,197

128,765

125,744

121,052

120,990

Reinsurance recoverable

48,806

44,837

41,653

38,188

34,559

Deferred policy acquisition costs

19,018

16,711

17,248

17,855

17,746

Property and equipment, net

17,165

18,663

20,236

21,754

23,369

Prepaid federal income taxes

1,056,329

1,012,629

997,805

921,080

921,080

Other assets

334,172

350,350

390,962

367,501

358,962

Assets held for sale

474,268

722,514

2,267,056

1,517,393

1,447,440

Total assets

$

8,122,397

$

8,204,803

$

9,603,701

$

8,787,928

$

8,689,535

Liabilities and stockholders’ equity

Reserve for losses and loss adjustment expense

$

399,946

$

387,650

$

377,231

$

369,090

$

354,431

Unearned premiums

159,341

166,165

171,901

178,931

188,337

Senior notes

1,067,908

1,067,251

1,066,603

1,065,965

1,065,337

Other borrowings

41,207

60,401

98,685

32,122

45,865

Net deferred tax liability

942,193

910,256

864,421

826,692

772,232

Other liabilities

366,470

410,232

461,335

415,986

399,282

Liabilities held for sale

363,818

550,399

2,070,844

1,312,316

1,240,193

Total liabilities

3,340,883

3,552,354

5,111,020

4,201,102

4,065,677

Common stock

157

157

157

162

168

Treasury stock

(989,745

)

(989,352

)

(988,764

)

(969,396

)

(968,246

)

Additional paid-in capital

861,211

855,320

847,399

1,048,738

1,246,826

Retained earnings

5,132,050

5,012,742

4,906,830

4,802,038

4,695,348

Accumulated other comprehensive income (loss)

(222,159

)

(226,418

)

(272,941

)

(294,716

)

(350,238

)

Total stockholders’ equity

4,781,514

4,652,449

4,492,681

4,586,826

4,623,858

Total liabilities and stockholders’ equity

$

8,122,397

$

8,204,803

$

9,603,701

$

8,787,928

$

8,689,535

Shares outstanding

135,498

135,473

135,395

141,220

147,569

Book value per share

$

35.29

$

34.34

$

33.18

$

32.48

$

31.33

Holding company debt-to-capital ratio (1)

18.3

%

18.7

%

19.2

%

18.9

%

18.7

%

(1)

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 other borrowings.

Radian Group Inc. and Subsidiaries

Condensed Consolidated Statements of Operations Detail

Exhibit D (page 1 of 5)

Net Premiums Earned

2025

2024

(In thousands)

Qtr 4

Qtr 3

Qtr 2

Qtr 1

Qtr 4

Direct

Premiums earned, excluding revenue from cancellations

$

266,460

$

264,272

$

260,336

$

260,705

$

261,017

Single Premium Policy cancellations

2,005

1,821

1,708

1,206

2,363

Total direct

268,465

266,093

262,044

261,911

263,380

Ceded

Premiums earned, excluding revenue from cancellations

(48,294

)

(45,870

)

(43,849

)

(42,288

)

(43,239

)

Single Premium Policy cancellations (1)

1,788

1,653

1,328

902

952

Profit commission - other (2)

15,233

15,227

14,003

13,519

14,183

Total ceded

(31,273

)

(28,990

)

(28,518

)

(27,867

)

(28,104

)

Net premiums earned

$

237,192

$

237,103

$

233,526

$

234,044

$

235,276

(1)

Includes the impact of related profit commissions.

(2)

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

Net Investment Income

2025

2024

(In thousands)

Qtr 4

Qtr 3

Qtr 2

Qtr 1

Qtr 4

Fixed maturities

$

51,655

$

57,614

$

57,354

$

56,649

$

57,129

Equity securities

1,798

2,446

2,634

2,145

3,350

Short-term investments

10,362

4,503

2,842

3,508

3,009

Other (1)

(1,132

)

(1,164

)

(1,158

)

(1,292

)

(1,277

)

Net investment income

$

62,683

$

63,399

$

61,672

$

61,010

$

62,211

(1)

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

Provision for Losses

2025

2024

(In thousands)

Qtr 4

Qtr 3

Qtr 2

Qtr 1

Qtr 4

Current period defaults (1)

$

57,047

$

52,963

$

47,912

$

53,740

$

55,795

Prior period defaults (2)

(35,459

)

(35,077

)

(35,958

)

(38,400

)

(55,734

)

Total provision for losses

$

21,588

$

17,886

$

11,954

$

15,340

$

61

(1)

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

(2)

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

Radian Group Inc. and Subsidiaries

Condensed Consolidated Statements of Operations Detail

Exhibit D (page 2 of 5)

Other Operating Expenses

2025

2024

(In thousands)

Qtr 4

Qtr 3

Qtr 2

Qtr 1

Qtr 4

Salaries and other base employee expenses

$

25,086

$

24,259

$

26,932

$

26,139

$

23,393

Variable and share-based incentive compensation

16,768

16,115

27,335

15,265

15,842

Other general operating expenses (1)

22,589

29,438

21,986

23,227

25,783

Ceding commissions

(8,026

)

(7,556

)

(7,075

)

(6,723

)

(6,620

)

Total

$

56,417

$

62,256

$

69,178

$

57,908

$

58,398

(1)

Includes $2 million and $9 million in the fourth and third quarter of 2025, respectively, of acquisition-related expenses.

Interest Expense

2025

2024

(In thousands)

Qtr 4

Qtr 3

Qtr 2

Qtr 1

Qtr 4

Senior notes

$

15,829

$

15,819

$

15,810

$

15,800

$

15,791

Revolving credit facility

389

258

741

264

356

FHLB advances

458

1,107

877

425

403

Loss on extinguishment of debt

513

—

—

—

—

Total interest expense

$

17,189

$

17,184

$

17,428

$

16,489

$

16,550

Discontinued Operations

2025

2024

(In thousands)

Qtr 4

Qtr 3

Qtr 2

Qtr 1

Qtr 4

Revenues

Net premiums earned

$

5,248

$

4,624

$

3,995

$

2,634

$

3,286

Services revenue

13,640

12,352

10,882

11,943

11,989

Net investment income

7,089

10,744

11,097

7,564

9,099

Net gains (losses) on investments and other financial instruments

(576

)

2,191

(6,703

)

1,278

(1,541

)

Income (loss) on consolidated VIEs

—

(2,129

)

185

428

(467

)

Other income

(176

)

(332

)

(3

)

(568

)

826

Total revenues

25,225

27,450

19,453

23,279

23,192

Expenses

Provision for losses

311

129

143

(173

)

(685

)

Cost of services

9,735

8,729

8,412

8,673

9,769

Other operating expenses

16,136

23,732

20,225

19,039

29,403

Interest expense

4,802

8,105

8,446

6,010

5,963

Total expenses

30,984

40,695

37,226

33,549

44,450

Pretax income (loss) from discontinued operations

(5,759

)

(13,245

)

(17,773

)

(10,270

)

(21,258

)

Income tax provision (benefit)

(1,800

)

(1,886

)

(5,084

)

(2,738

)

(5,794

)

Income (loss) from discontinued operations, net of tax

$

(3,959

)

$

(11,359

)

$

(12,689

)

$

(7,532

)

$

(15,464

)

Radian Group Inc. and Subsidiaries

Condensed Consolidated Statements of Operations Detail

Exhibit D (page 3 of 5)

Net Premiums Earned

Years Ended December 31,

(In thousands)

2025

2024

Direct

Premiums earned, excluding revenue from cancellations

$

1,051,773

$

1,040,678

Single Premium Policy cancellations

6,740

8,336

Total direct

1,058,513

1,049,014

Ceded

Premiums earned, excluding revenue from cancellations

(180,301

)

(164,055

)

Single Premium Policy cancellations (1)

5,671

2,390

Profit commission - other (2)

57,982

51,888

Total ceded

(116,648

)

(109,777

)

Net premiums earned

$

941,865

$

939,237

(1)

Includes the impact of related profit commissions.

(2)

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

Net Investment Income

Years Ended December 31,

(In thousands)

2025

2024

Fixed maturities

$

223,271

$

231,235

Equity securities

9,024

12,003

Short-term investments

21,215

26,908

Other (1)

(4,746

)

(5,332

)

Net investment income

$

248,764

$

264,814

(1)

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 5)

Provision for Losses

Years Ended December 31,

(In thousands)

2025

2024

Current period defaults (1)

$

211,355

$

197,719

Prior period defaults (2)

(144,587

)

(199,967

)

Total provision for losses

$

66,768

$

(2,248

)

(1)

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

(2)

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

Other Operating Expenses

Years Ended December 31,

(In thousands)

2025

2024

Salaries and other base employee expenses

$

102,416

$

102,679

Variable and share-based incentive compensation

75,482

63,272

Other general operating expenses (1)

97,240

106,164

Ceding commissions

(29,379

)

(24,497

)

Total

$

245,759

$

247,618

(1)

Includes $10 million in 2025 primarily comprised of acquisition-related expenses. Includes $13 million in 2024, 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)

2025

2024

Senior notes

$

63,258

$

80,020

FHLB advances

2,867

2,430

Revolving credit facility

1,652

1,281

Loss on extinguishment of debt

513

4,275

Total interest expense

$

68,290

$

88,006

Radian Group Inc. and Subsidiaries

Condensed Consolidated Statements of Operations Detail

Exhibit D (page 5 of 5)

Discontinued Operations

Years Ended December 31,

(In thousands)

2025

2024

Revenues

Net premiums earned

$

16,501

$

12,046

Services revenue

48,817

49,246

Net investment income

36,494

27,879

Net gains (losses) on investments and other financial instruments

(3,810

)

(5,767

)

Income (loss) on consolidated VIEs

(1,516

)

(2

)

Other income

(1,079

)

583

Total revenues

95,407

83,985

Expenses

Provision for losses

410

(266

)

Cost of services

35,549

37,738

Other operating expenses

79,132

100,822

Interest expense

27,363

20,008

Total expenses

142,454

158,302

Pretax income (loss) from discontinued operations

(47,047

)

(74,317

)

Income tax provision (benefit)

(11,508

)

(18,442

)

Income (loss) from discontinued operations, net of tax

$

(35,539

)

$

(55,875

)

Radian Group Inc. and Subsidiaries

Segment Information

Exhibit E (page 1 of 2)

In the third quarter of 2025, Radian Group’s board of directors approved a divestiture plan of its Mortgage Conduit, Title and Real Estate Services businesses. As a result, the results for these businesses are reflected in income (loss) from discontinued operations, net of tax, in our condensed consolidated statements of operations for all periods presented. See Exhibit D for details on our discontinued operations.

Summarized financial information concerning our one reportable segment, Mortgage Insurance, following such reclassification, for the periods indicated is as follows. For a definition of adjusted pretax operating income, along with a reconciliation to its most comparable GAAP measure, see Exhibits F and G.

Adjusted Pretax Operating Income

2025

2024

(In thousands)

Qtr 4

Qtr 3

Qtr 2

Qtr 1

Qtr 4

Net premiums written

$

234,431

$

235,733

$

231,596

$

230,250

$

231,979

(Increase) decrease in unearned premiums

2,761

1,370

1,930

3,794

3,297

Net premiums earned

237,192

237,103

233,526

234,044

235,276

Net investment income

62,683

63,399

61,672

61,010

62,211

Other income

1,796

1,399

1,503

1,781

1,931

Total

301,671

301,901

296,701

296,835

299,418

Provision for losses

21,588

17,886

11,954

15,340

61

Policy acquisition costs

4,280

7,166

7,204

6,389

7,276

Other operating expenses

55,562

53,573

69,179

57,523

55,224

Interest expense

16,676

17,184

17,428

16,489

16,549

Total

98,106

95,809

105,765

95,741

79,110

Adjusted pretax operating income

$

203,565

$

206,092

$

190,936

$

201,094

$

220,308

Selected Mortgage Insurance Key Ratios

2025

2024

(In thousands)

Qtr 4

Qtr 3

Qtr 2

Qtr 1

Qtr 4

Loss ratio (1)

9.1

%

7.5

%

5.1

%

6.6

%

0.0

%

Expense ratio (2)

25.2

%

25.6

%

32.7

%

27.3

%

26.6

%

(1)

Calculated as provision for losses expressed as a percentage of net premiums earned.

(2)

Calculated as operating expenses (which consist of policy acquisition costs and other operating expenses) expressed as a percentage of net premiums earned.

Radian Group Inc. and Subsidiaries

Segment Information

Exhibit E (page 2 of 2)

Adjusted Pretax Operating Income

Years Ended December 31,

(In thousands)

2025

2024

Net premiums written

$

932,010

$

930,149

(Increase) decrease in unearned premiums

9,855

9,088

Net premiums earned

941,865

939,237

Net investment income

248,764

264,814

Other income

6,479

6,595

Total

1,197,108

1,210,646

Provision for losses

66,768

(2,248

)

Policy acquisition costs

25,039

27,316

Other operating expenses

235,837

234,632

Interest expense

67,777

83,732

Total

395,421

343,432

Adjusted pretax operating income

$

801,687

$

867,214

Selected Mortgage Insurance Key Ratios

Years Ended December 31,

(In thousands)

2025

2024

Loss ratio (1)

7.1

%

(0.2

)%

Expense ratio (2)

27.7

%

27.9

%

(1)

Calculated as provision for losses expressed as a percentage of net premiums earned.

(2)

Calculated as operating expenses (which consist of policy acquisition costs and other operating expenses) expressed as a percentage of net premiums earned.

Radian Group Inc. and Subsidiaries

Definition of 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 on a continuing operations basis, 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.

The results of our Mortgage Conduit, Title and Real Estate Services businesses are included in income (loss) from discontinued operations, net of tax, for all periods presented herein. The calculation of adjusted pretax operating income, as detailed below, excludes income (loss) from discontinued operations, net of tax, for all periods presented herein. As a result, the calculations of adjusted diluted net operating income per share and adjusted net operating return on equity also exclude income (loss) from discontinued operations, net of tax, for all periods presented herein.

Adjusted pretax operating income (loss) is defined as GAAP pretax income (loss) from continuing operations excluding the effects of: (i) net gains (losses) on investments and other financial instruments and (ii) impairment of other long-lived assets and other non-operating items, if any, such as gains (losses) from the sale of lines of business, acquisition-related income (expenses) and gains (losses) on extinguishment of debt, among others. Adjusted diluted net operating income (loss) per share is calculated by dividing adjusted pretax operating income (loss), net of taxes, computed using the company’s effective tax rate, by the sum of the weighted average number of common shares outstanding and all dilutive potential common shares outstanding. Adjusted net operating return on equity is calculated by dividing annualized adjusted pretax operating income (loss), net of taxes computed using the company’s effective tax rate, by average stockholders’ equity, based on the average of the beginning and ending balances for each period presented.

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

(1)

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

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

(2)

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 Non-GAAP Financial Measures

Exhibit F (page 2 of 2)

See Exhibit G for the reconciliations of the most comparable GAAP measures, pretax income (loss) from continuing operations, diluted net income (loss) from continuing operations per share and return on equity from continuing operations 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) from continuing operations, diluted net income (loss) from continuing operations per share or return on equity from continuing operations. 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

Non-GAAP Financial Measure Reconciliations

Exhibit G (page 1 of 3)

Reconciliation of Pretax Income from Continuing Operations to Adjusted Pretax Operating Income

2025

2024

(In thousands)

Qtr 4

Qtr 3

Qtr 2

Qtr 1

Qtr 4

Pretax income from continuing operations

$

201,038

$

198,694

$

192,786

$

198,710

$

210,384

Less reconciling income (expense) items

Net gains (losses) on investments and other financial instruments

(1,159

)

1,285

1,850

(2,000

)

(6,750

)

Impairment of other long-lived assets and other non-operating items (1)

(1,368

)

(8,683

)

—

(384

)

(3,174

)

Total adjusted pretax operating income

$

203,565

$

206,092

$

190,936

$

201,094

$

220,308

(1)

Relates primarily to acquisition-related expenses for the 2025 periods and impairment of other long-lived assets for 2024, which are included in other operating expenses on the Condensed Consolidated Statement of Operations in Exhibit A.

Reconciliation of Diluted Net Income from Continuing Operations Per Share

to Adjusted Diluted Net Operating Income Per Share

2025

2024

Qtr 4

Qtr 3

Qtr 2

Qtr 1

Qtr 4

Diluted net income from continuing operations per share

$

1.15

$

1.11

$

1.11

$

1.03

$

1.08

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

Net gains (losses) on investments and other financial instruments

(0.01

)

0.01

0.01

(0.02

)

(0.04

)

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

(0.01

)

(0.06

)

—

—

(0.02

)

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

0.01

0.01

(0.01

)

0.01

0.01

Per-share impact of reconciling income (expense) items

(0.01

)

(0.04

)

—

(0.01

)

(0.05

)

Adjusted diluted net operating income per share

$

1.16

$

1.15

$

1.11

$

1.04

$

1.13

(1)

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

Radian Group Inc. and Subsidiaries

Non-GAAP Financial Measure Reconciliations

Exhibit G (page 2 of 3)

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

2025

2024

Qtr 4

Qtr 3

Qtr 2

Qtr 1

Qtr 4

Return on equity from continuing operations (1)

13.5

%

13.4

%

13.6

%

13.2

%

14.1

%

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

Net gains (losses) on investments and other financial instruments

(0.1

)%

0.1

%

0.1

%

(0.3

)%

(0.6

)%

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

(0.1

)%

(0.7

)%

—

%

—

%

(0.2

)%

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

0.1

%

0.1

%

—

%

0.1

%

0.2

%

Impact of reconciling income (expense) items

(0.1

)%

(0.5

)%

0.1

%

(0.2

)%

(0.6

)%

Adjusted net operating return on equity

13.6

%

13.9

%

13.5

%

13.4

%

14.7

%

(1)

Calculated by dividing annualized net income from continuing operations 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%.

Reconciliation of Pretax Income from Continuing Operations to Adjusted Pretax Operating Income

Years Ended December 31,

(In thousands)

2025

2024

Pretax income from continuing operations

$

791,228

$

845,607

Less reconciling income (expense) items

Net gains (losses) on investments and other financial instruments

(24

)

(4,347

)

Impairment of other long-lived assets and other non-operating items (1)

(10,435

)

(17,260

)

Total adjusted pretax operating income

$

801,687

$

867,214

(1)

Relates primarily to acquisition-related expenses for 2025 and impairment of other long-lived assets for 2024, which are included in other operating expenses on the Condensed Consolidated Statement of Operations in Exhibit A.

Radian Group Inc. and Subsidiaries

Non-GAAP Financial Measure Reconciliations

Exhibit G (page 3 of 3)

Reconciliation of Diluted Net Income from Continuing Operations Per Share to Adjusted Diluted Net Operating Income Per Share

Years Ended December 31,

2025

2024

Diluted net income from continuing operations per share

$

4.39

$

4.28

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

Net gains (losses) on investments and other financial instruments

—

(0.03

)

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

(0.08

)

(0.11

)

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

0.02

0.03

Per-share impact of reconciling income (expense) items

(0.06

)

(0.11

)

Adjusted diluted net operating income per share (1)

$

4.45

$

4.39

(1)

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

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

Years Ended December 31,

2025

2024

Return on equity from continuing operations (1)

13.1

%

14.6

%

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

Net gains (losses) on investments and other financial instruments

—

%

(0.1

)%

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

(0.2

)%

(0.4

)%

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

—

%

0.1

%

Impact of reconciling income (expense) items

(0.2

)%

(0.4

)%

Adjusted net operating return on equity

13.3

%

15.0

%

(1)

Calculated by dividing net income from continuing operations by average stockholders’ equity.

(2)

As a percentage of average stockholders’ equity.

(3)

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

See Exhibit F for additional information on our non-GAAP financial measures.

Radian Group Inc. and Subsidiaries

Mortgage Insurance Supplemental Information - New Insurance Written

Exhibit H

2025

2024

($ in millions)

Qtr 4

Qtr 3

Qtr 2

Qtr 1

Qtr 4

NIW

$

15,850

$

15,497

$

14,330

$

9,489

$

13,186

NIW by premium type

Direct monthly and other recurring premiums

97.2

%

96.4

%

96.4

%

96.4

%

96.4

%

Direct single premiums

2.8

%

3.6

%

3.6

%

3.6

%

3.6

%

NIW for purchases

85.2

%

94.8

%

94.6

%

95.6

%

90.4

%

NIW for refinances

14.8

%

5.2

%

5.4

%

4.4

%

9.6

%

NIW by FICO score (1)

>=740

65.5

%

63.5

%

68.2

%

68.1

%

71.7

%

680-739

29.7

%

31.8

%

27.0

%

27.0

%

23.3

%

620-679

4.8

%

4.7

%

4.8

%

4.9

%

5.0

%

=740

60.7

%

60.7

%

60.6

%

60.3

%

60.1

%

680-739

32.4

%

32.3

%

32.2

%

32.4

%

32.6

%

620-679

6.7

%

6.8

%

6.9

%

7.0

%

7.0

%