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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 %
US Market News
4月前
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
%
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