Radian Group (RDN) Q1 2025 Earnings Call May 01, 2025 11:00 AM ET Speaker0 Good day and thank you for standing by. Welcome to the First Quarter twenty twenty five Radian Group Conference Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session. To ask a question during the session, you will need to press 11 on your telephone. You will then hear an automated message advising your hand is raised. Please be advised that today' ...

Exhibit 99.1 press release April 30, 2025 Radian Announces First Quarter 2025 Financial Results — First quarter net income of $145 million, or $0.98 per diluted share — — Book value per share growth of 11% year-over-year to $32.48 — — Primary mortgage insurance in force grew year-over-year to $274.2 billion — — Default rate declines from prior quarter to 2.3%, driven by favorable credit trends — — $200 million return of capital paid from Radian Guaranty to holding company during the first quarter — — Repurc ...

Financial Results Q1 2025 NYSE: RDN www.radian.com Safe Harbor Statements All statements in this presentation that address events, developments or results that we expect or anticipate may occur in the future are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the U.S. Private Securities Litigation Reform Act of 1995. In most cases, forward-looking statements may be identified by words such as "anticipate," " ...

Radian (RDN) came out with quarterly earnings of $0.99 per share, beating the Zacks Consensus Estimate of $0.95 per share. This compares to earnings of $1.03 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 4.21%. A quarter ago, it was expected that this mortgage insurer would post earnings of $0.95 per share when it actually produced earnings of $1.09, delivering a surprise of 14.74%.Over the last four quarters, the company ha ...

Shares of Radian Group Inc. (RDN) have gained 7.2% in the past year, outperforming its industry’s growth of 7.1%. It, however, underperformed the Finance sector and the Zacks S&P 500 composite’s growth of 15.8% and 8.1%, respectively. The insurer has a market capitalization of $4.43 billion. The average volume of shares traded in the last three months was 1.8 million. Radian Group’s bottom line surpassed earnings estimates in each of the last four quarters, the average being 17.42%.RDN vs. Industry, Sector, ...

Group 1 - Radian Group Inc. (NYSE: RDN) has shown moderate performance over the past year, with a 10% increase in share price, but has been declining over the last six months due to concerns that results may have peaked [1] - The company has a history of making contrarian bets based on macro views and stock-specific turnaround stories, aiming for outsized returns with a favorable risk/reward profile [1]

Financial Performance - The company reported a total revenue of $1.5 billion for the fiscal year, representing a 10% increase year-over-year[7] - The company reported a net income of $250 million, a 5% increase compared to the previous year[7] - Consolidated pretax income for 2024 was $771 million, with net income of $604 million, or $3.92 net income per diluted share, compared to $767 million and $603 million, or $3.77 per diluted share in 2023[44] - Adjusted pretax operating income was $803 million in 2024, up from $786 million in 2023, resulting in adjusted diluted net operating income per share of $4.11 for 2024, compared to $3.88 for 2023[44] User Growth and Market Expansion - User data showed a growth in active users to 5 million, up from 4.5 million in the previous year, indicating an 11% increase[7] - The company provided guidance for the next fiscal year, projecting revenue growth of 12% to $1.68 billion[7] - The company plans to expand its market presence in Europe, targeting a 15% market share by the end of the next fiscal year[7] - New product launches are expected to contribute an additional $200 million in revenue, with a focus on innovative technology solutions[7] Strategic Initiatives - A strategic acquisition of a smaller competitor was completed, expected to enhance the company's service offerings and increase market penetration[7] - The company is exploring new partnerships to leverage synergies and drive growth in emerging markets[7] - Radian's business strategy focuses on expanding and diversifying revenue streams while leveraging data, analytics, and technology as a strategic differentiator[38] Research and Development - Research and development expenses increased by 20% to $300 million, reflecting the company's commitment to innovation[7] Customer Metrics - The customer retention rate improved to 85%, up from 80% last year, showcasing enhanced customer satisfaction[7] - The Persistency Rate, which impacts revenues and profitability, is influenced by policy cancellations and has a significant effect on the premiums received from Recurring Premium Policies[68] Risk Management and Compliance - Radian's eligibility under the PMIERs is crucial for insuring loans purchased by government-sponsored enterprises (GSEs)[19] - Radian Guaranty is compliant with the NAIC's amended Model Act for mortgage insurers, which may influence future statutory capital requirements[185] - The company employs a centralized enterprise risk management (ERM) function to oversee risk identification, assessment, management, and mitigation across the organization[134] Capital Management - The company has a total of $450 million in senior notes due in October 2024, which were fully redeemed in September 2024[16] - Radian Guaranty had a positive unassigned surplus of $223 million at the end of 2024, allowing it to pay ordinary dividends totaling $675 million in cash and marketable securities throughout 2024[189] - Radian Guaranty expects to distribute an additional $200 million to Radian Group before the end of February 2025[189] Market Competition - The company faces competition from the FHA and VA, as well as price competition in the private mortgage insurance industry[20] - The competitive landscape includes six active participants in the private mortgage insurance industry, with competition based on price, service, and underwriting guidelines[102] Investment Strategy - The investment portfolio had a cost basis of $6.3 billion and a carrying value of $5.9 billion as of December 31, 2024, with 97% rated investment grade[130] - The company’s investment strategy aims to optimize after-tax returns while preserving capital, with a focus on maintaining sufficient liquidity levels[127] Regulatory Environment - The PMIERs financial requirements mandate that a mortgage insurer's Available Assets must meet or exceed its Minimum Required Assets, with recent updates refining the standards for Available Assets[214] - The FHFA has adopted the ERCF, significantly increasing capital requirements and decreasing capital credit for credit risk transfer transactions[229] Corporate Responsibility - The company prioritizes corporate responsibility through charitable contributions, matching gifts, and community connection initiatives[170] Employee Metrics - As of December 31, 2024, Radian Group had approximately 1,000 employees, reflecting its commitment to human capital management[157]

Core Viewpoint - Radian (RDN) has experienced a bearish trend recently, losing 6.5% over the past two weeks, but the formation of a hammer chart pattern suggests a potential trend reversal as buying interest may be increasing [1][2]. Technical Analysis - The hammer chart pattern indicates a possible bottoming out with reduced selling pressure, suggesting a bullish outlook for RDN [2][4]. - A hammer pattern forms when there is a small candle body with a long lower wick, indicating that despite a downtrend, buying interest emerges to push the stock price up towards the opening price [3][4]. - The occurrence of a hammer pattern at the bottom of a downtrend signals that bears may have lost control, indicating a potential trend reversal [4]. Fundamental Analysis - Recent upward revisions in earnings estimates for RDN serve as a bullish indicator, as trends in earnings estimate revisions are closely correlated with stock price movements [6]. - The consensus EPS estimate for RDN has increased by 3% over the last 30 days, reflecting analysts' agreement on the company's potential for better earnings [7]. - RDN holds a Zacks Rank of 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which typically outperform the market [8].

Core Insights - The article discusses the current volatility in the stock market due to rising inflation, uncertainty regarding Federal Reserve rate cuts, and trade war fears, suggesting that dividend-paying stocks may be a safer investment option during this period [2][3][4][5][6][8]. Group 1: Market Conditions - Wall Street has experienced volatility in 2025, influenced by unexpected inflation surges, uncertainty over Federal Reserve rate cuts, and trade war concerns stemming from new tariffs imposed by President Trump [2][3]. - The consumer price index (CPI) rose by 0.5% month-over-month in January 2025, marking the highest increase since August 2023 and exceeding economists' expectations of a 0.3% rise [4]. - Year-over-year, the CPI increased by 3% in January 2025, the largest gain since June 2024, indicating a resurgence in inflation after a decline in 2024 [4][5]. Group 2: Federal Reserve and Rate Cuts - The Federal Reserve has indicated fewer rate cuts for 2025, maintaining its benchmark policy rate in the range of 4.25-4.5% during its January meeting [6][7]. - Experts now believe that only one 25 basis point rate cut may occur in 2025 unless inflation shows significant signs of decline [7]. Group 3: Trade War Concerns - Trade war fears are exacerbated by the imposition of tariffs, including a 10% tariff on Chinese goods and potential tariffs on Canadian and Mexican imports, which could further increase inflation [8]. - The uncertainty surrounding these tariffs is expected to keep markets volatile for an extended period [8]. Group 4: Dividend-Paying Stocks - In light of current market conditions, investing in dividend-paying stocks is recommended as they tend to provide stability and consistent income [3][9]. - Radian Group Inc. announced a dividend of $0.26 per share with a yield of 3.01%, having increased its dividend five times over the past five years [10]. - Urban Edge Properties declared a dividend of $0.19 per share with a yield of 3.28%, having increased its dividend four times in the last five years [12]. - Middlefield Banc Corp. announced a dividend of $0.21 per share with a yield of 3.10%, also increasing its dividend five times over the past five years [14].

Financial Results Q4 2024 NYSE: RDN www.radian.com Safe Harbor Statements All statements in this presentation that address events, developments or results that we expect or anticipate may occur in the future are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the U.S. Private Securities Litigation Reform Act of 1995. In most cases, forward-looking statements may be identified by words such as "anticipate," " ...