Radian Group Inc. (NYSE:RDN) Q1 2020 Earnings Conference Call May 7, 2020 10:00 AM ET Corporate Participants John Damian - Senior Vice President of Investor Relation Rick Thornberry - Chief Executive Officer Frank Hall - Chief Financial Officer Derek Brummer - President of Radian Mortgage Conference Call Participants Mihir Bhatia - BofA Merrill Lynch Bose George - KBW Mackenzie Aron - Zelman Jack Micenko - SIG Mark DeVries - Barclays Geoffrey Dunn - Dowling & Partners Chris Gamaitoni - Compass Point Phil St ...

Financial Results Q1 2020 NYSE: RDN www.radian.biz Safe Harbor Statements 2 | --- ...

Radian Group Inc. (NYSE:RDN) Q4 2019 Earnings Conference Call February 6, 2020 10:00 AM ET Company Participants Emily Riley – Senior Vice President, Corporate Communications and Investor Relations Rick Thornberry – Chief Executive Officer Frank Hall – Chief Financial Officer Derek Brummer – Senior Executive Vice President-Mortgage Insurance and Risk Services Conference Call Participants Jack Micenko – SIG Mark DeVries – Barclays Bose George – KBW Douglas Harter – Credit Suisse Mihir Bhatia – Bank of America ...

Financial Results Q3 2019 NYSE: RDN www.radian.biz Safe Harbor Statements 2 All statements in this presentation that address events, developments or results that we expect or anticipate may occur in the future are "forwardlooking 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," ...

Financial Data and Key Metrics Changes - Net income for Q3 2019 was $173 million, or $0.83 per diluted share, compared to $0.78 in Q2 2019 and $0.66 in Q3 2018 [30] - Adjusted diluted net operating income was $0.81 per share, a 1% increase from Q2 2019 and a 14% increase from Q3 2018 [31] - Book value per share grew 24% year-over-year to $19.14, with a return on equity of 18% and an adjusted net operating return on equity of 17.4% [13][68] Business Line Data and Key Metrics Changes - Primary insurance in force increased by 9% year-over-year to $237 billion, with a 12% year-over-year growth in monthly premium insurance in force [14][36] - New insurance written (NIW) was $22 billion, a 19% increase from the previous quarter and a 40% increase from Q3 2018 [17][32] - The services segment reported revenues of $47 million, a 10% increase from the prior quarter and a 16% increase year-over-year [22][45] Market Data and Key Metrics Changes - The mortgage origination market was strong, driven by low interest rates and increased refinance activity, with first-time home buyers representing one-third of home sales [15][14] - The Radian home price index indicated a 7.9% year-over-year increase in median home values, up from a 5.8% growth rate in Q2 2019 [16] Company Strategy and Development Direction - The company is focused on providing customized pricing options and excellent customer service, which has resulted in record levels of new mortgage insurance business [18] - Radian aims to leverage its proprietary data and analytics platform to manage mortgage credit risk effectively and drive economic value [19] - The company expects to write new mortgage insurance business in the range of $65 billion to $70 billion for 2019, representing a 20% increase over the previous year [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong fundamentals of the mortgage insurance business, citing favorable economic conditions and regulatory frameworks [20][25] - The credit quality of the existing portfolio is excellent, with default rates at historically low levels [21][50] - Management believes that the regulatory landscape will encourage the use of private capital, which will benefit the mortgage insurance industry [26][28] Other Important Information - The company completed a share repurchase program, repurchasing over 13 million shares valued at approximately $300 million [23][60] - Moody's upgraded Radian's senior unsecured debt rating to A1, reflecting expectations for continued strong profitability [62][63] - The company has a P Myers cushion of $652 million, representing a 24% excess over minimum required assets [57] Q&A Session Summary Question: Impact of FHA adopting risk-based pricing on MI industry - Management indicated that the FHA is focused on rebuilding capital levels rather than cutting prices, and does not foresee a significant risk from lower premium pricing [72] Question: Expected expense ratio and leveraging opportunities - Management acknowledged that expenses were higher this quarter but suggested a normalized expense level of around $72 million going forward [76] Question: Outlook for the services segment - Management expressed optimism about the services segment, highlighting growth opportunities in title and real estate services [90][92] Question: Changes in market share dynamics - Management noted that market share shifts are primarily due to larger competitors entering the market, but emphasized a focus on quality business rather than market share [106] Question: Benefits of Moody's upgrades - Management stated that while the upgrade to investment grade is desirable for strategic reasons, it does not significantly impact core business operations [111]

Financial Results Q2 2019 NYSE: RDN www.radian.biz Safe Harbor Statements 2 All statements in this presentation that address events, developments or results that we expect or anticipate may occur in the future are "forwardlooking 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," ...