Radian Group Stock Earnings Reports

Radian reported another quarter of strong mortgage insurance (MI) performance driven by a high-quality, growing in-force portfolio ($281B) with strong persistency (84%), stable in-force premium yield (38 bps), low claim levels and favorable cure trends. Continuing operations net income was $153 million ($1.11/share); book value per share rose 9% year-over-year to $34.34. Management announced a strategic transformation: a planned $1.7 billion cash acquisition of Inigo to become a global multiline specialty insurer, funded from internal liquidity and a $600 million 10-year intercompany note, with the deal expected to close in Q1 2026. They also announced a divestiture plan for mortgage conduit, title and real estate services (reclassified as held for sale) with sales processes underway and completion targeted by Q3 2026. Expected benefits of the combined company include mid-teen EPS accretion and ~200 bps ROE accretion in year 1, a 12x expansion of addressable market, and potential capital/reinsurance synergies to be detailed post-close. Capital and liquidity remain strong: Radian Guaranty paid $200M in Q3 and expects ~$795M total distributions to the holding company in 2025, holding company liquidity is expected to be ~ $1.8B at start of 2026, and a $500M credit facility was expanded (undrawn). Management paused share repurchases while funding Inigo but expects to revisit buybacks within a few quarters after close as dividends from Radian Guaranty resume. Operating expense guidance for continuing operations was revised to about $250M for full-year 2025 (run rate into 2026). Overall, the quarter underscores resilient MI fundamentals while management executes a material strategic shift that will meaningfully diversify and scale the franchise.