Company Overview - Radian (RDN) is expected to report a year-over-year decline in earnings, with a projected earnings per share (EPS) of $0.93, reflecting a decrease of 6.1% compared to the previous year [3][12] - Revenue for the quarter is anticipated to be $316.6 million, which represents a 1.4% increase from the same quarter last year [3] Earnings Expectations - The earnings report is scheduled for release on July 30, and the actual results will significantly influence the stock price, depending on whether they meet or exceed expectations [2][12] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst expectations [4] Earnings Surprise Prediction - Radian's Most Accurate Estimate is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -4.87%, suggesting a bearish outlook from analysts [12] - The stock currently holds a Zacks Rank of 3 (Hold), complicating predictions of an earnings beat [12] Historical Performance - In the last reported quarter, Radian exceeded the consensus EPS estimate of $0.95 by delivering earnings of $0.99, resulting in a surprise of +4.21% [13] - Over the past four quarters, Radian has successfully beaten consensus EPS estimates each time [14] Industry Context - Another player in the insurance sector, Principal Financial (PFG), is expected to report earnings of $1.98 per share, indicating a year-over-year increase of 21.5%, with revenues projected at $4 billion, down 1.7% from the previous year [18] - Principal Financial's consensus EPS estimate has been revised 0.3% higher in the last 30 days, but a lower Most Accurate Estimate has led to an Earnings ESP of -1.14%, making it difficult to predict an earnings beat [19]

Core Insights - Radian Group Inc. (RDN) shares closed at $36.32, near its 52-week high, indicating strong investor confidence and potential for further price appreciation [1] - The stock is trading above its 50-day and 200-day simple moving averages, suggesting solid upward momentum [1] Company Performance - RDN has gained 14.5% year to date, outperforming its industry and the Finance sector, which grew by 7.7% and 8.9%, respectively [3][4] - The company has outperformed peers such as Old Republic International Corporation (3.7% gain), MetLife, Inc. (2.1% loss), and Assurant, Inc. (10% loss) [4] Market Outlook - The private mortgage insurance market is expected to remain around $300 billion in 2025, with RDN focusing on core, fee-based businesses for growth [7][18] - RDN's revenue for 2025 is estimated at $1.26 billion, reflecting a year-over-year improvement of 0.9% [9] Valuation Metrics - RDN shares are trading at a forward price-to-book value of 1.12X, significantly lower than the industry average of 2.73X and the Finance sector's 4.27X [8] - The average price target for RDN is $36.83, suggesting a potential upside of 0.74% from the last closing price [11] Analyst Sentiment - One of the two analysts covering RDN has raised estimates for 2025 and 2026, leading to a 1.06% and 1.3% increase in consensus estimates, respectively [10] Financial Health - RDN has been strengthening its capital position through capital contributions and reinsurance transactions, allowing for dividend hikes and share buybacks [17] - The company has increased its quarterly dividend by 4.1% in Q1 2025, marking the sixth consecutive year of dividend increases, with a current yield of 2.8% [19] Growth Drivers - New business growth and rising annual persistency rates are expected to expand RDN's insurance-in-force portfolio [7][16] - The company has a solid track record of beating earnings estimates, averaging a 12.45% surprise over the last four quarters [9]

Core Insights - Radian Group Inc. (RDN) shares closed at $34.24, near its 52-week high, indicating strong investor confidence and potential for further price appreciation [1] - The stock is trading above its 50-day and 200-day simple moving averages, suggesting solid upward momentum [1] Company Performance - Radian Group has a market capitalization of $4.6 billion, with an average trading volume of 1.7 million shares over the last three months [2] - Year-to-date, RDN shares have gained 7.9%, outperforming the Finance sector's growth of 4.8% and the Zacks S&P 500 composite's decline of 0.3% [5][6] - Compared to peers, RDN has outperformed Old Republic International Corporation (3.9% gain), while MetLife, Inc. and Assurant, Inc. have seen losses of 3.6% and 6.2%, respectively [7] Valuation Metrics - RDN shares are trading at a forward price-to-book value of 1.05X, significantly lower than the industry average of 2.44X and the Finance sector's 4.06X, indicating a better entry point for investors [10] Growth Projections - The Zacks Consensus Estimate for Radian Group's 2025 revenues is $1.26 billion, reflecting a year-over-year improvement of 0.9% [11] - Earnings per share and revenues for 2026 are projected to increase by 3% and 3.2%, respectively, compared to 2025 estimates [11] - Radian Group has a strong track record of beating earnings estimates, averaging a 12.45% surprise over the last four quarters [11] Analyst Sentiment - One of the two analysts covering RDN has lowered estimates for 2025 and 2026, resulting in a 0.2% decrease in the 2025 earnings estimate and a 0.7% decrease for 2026 [12] Business Strategy - Radian Group is focusing on core business areas with higher growth potential, ensuring a predictable and recurring fee-based revenue stream [15] - The company is experiencing a decline in claim filings, which is expected to strengthen its balance sheet and improve its financial profile [16] Capital Position - Radian Group is enhancing its capital position through capital contributions and reinsurance transactions, allowing for dividend hikes and share buybacks [17] Dividend Performance - The company has increased its quarterly dividend by 4.1% in Q1 2025, marking the sixth consecutive year of dividend increases, with a current yield of 2.9%, surpassing the industry average of 2.6% [22] Market Outlook - The private mortgage insurance market is expected to grow by approximately 10% in 2025 compared to 2024, favoring mortgage insurers in the long term [21]

Core Viewpoint - Radian Group Inc. has authorized a new $750 million share buyback program, reflecting confidence in its financial strength and capital flexibility, while also increasing its quarterly dividend by 4.1% [1][4][3]. Group 1: Share Buyback Program - The board of directors has approved a new share repurchase program of $750 million, which will expire on December 31, 2027, bringing the total repurchase authority to approximately $863 million [1][2]. - Since 2020, Radian Group has repurchased 74 million shares for $1.8 billion, representing over 36% of shares outstanding as of January 1, 2020 [2][3]. - As of March 31, 2025, Radian repurchased shares for $207 million, with $336 million remaining under the current program [3]. Group 2: Dividend Increase - The board has approved a quarterly dividend of 25.5 cents per share, to be paid on June 17, 2025, to stockholders of record as of June 2 [4]. - This marks the sixth consecutive year of dividend increases, with the dividend more than doubling over the past five years and a six-year CAGR of 13% [4]. - Radian's current dividend yield stands at 3.1%, surpassing the industry average of 2.5%, making it attractive for yield-seeking investors [4]. Group 3: Financial Position and Growth - Radian Group maintains a solid balance sheet with sufficient liquidity and strong cash flows, enabling effective capital deployment through share repurchases and dividend hikes [3][5]. - The company is well-positioned to return capital to stockholders while pursuing growth initiatives and delivering innovative products and services [5]. - An improving mortgage insurance portfolio, declining claims, and a solid capital position are expected to contribute to impressive results for the insurer [5]. Group 4: Stock Performance - Radian's stock has gained 4.3% year-to-date, underperforming the industry and sector returns of 5.7%, but outperforming the Zacks S&P 500 composite growth of 0.2% [6][8].

Group 1 - Radian Group (NYSE: RDN) shares have performed well over the past year, with a gain of approximately 12% [1] - After a brief decline in early April, Radian's shares have recovered and are now above "Liberation Day" levels, attributed to the company's lack of tariff exposure [1] - The company has over fifteen years of experience in making contrarian bets based on macro views and stock-specific turnaround stories, aiming for outsized returns with a favorable risk/reward profile [1]

[PART I—FINANCIAL INFORMATION](index=9&type=section&id=PART%20I%E2%80%94FINANCIAL%20INFORMATION) Presents Radian's unaudited condensed consolidated financial statements, management's discussion and analysis, market risk, and control disclosures for Q1 2025 [Item 1. Financial Statements (Unaudited)](index=9&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Presents Radian's unaudited condensed consolidated financial statements for Q1 2025, including balance sheets, income statements, cash flows, and detailed notes [Condensed Consolidated Financial Statements](index=10&type=section&id=Condensed%20Consolidated%20Financial%20Statements) Radian reported Q1 2025 net income of $144.6 million, or $0.98 per diluted share, with total assets increasing to $8.77 billion Key Financial Highlights (Q1 2025 vs Q1 2024) | Financial Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total Revenues | $318.1 million | $319.4 million | | Net Income | $144.6 million | $152.4 million | | Diluted Net Income Per Share | $0.98 | $0.98 | Condensed Consolidated Balance Sheet Summary | Balance Sheet Item | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Investments | $6.11 billion | $6.35 billion | | Total Assets | $8.77 billion | $8.66 billion | | Total Liabilities | $4.18 billion | $4.04 billion | | Total Stockholders' Equity | $4.59 billion | $4.62 billion | [Note 1: Description of Business](index=16&type=section&id=Note%201%3A%20Description%20of%20Business) Radian's primary business is its Mortgage Insurance segment, providing credit-related insurance, with $274.2 billion in force as of March 31, 2025 - The company's primary business is its Mortgage Insurance segment, providing credit-related insurance coverage through its subsidiary, Radian Guaranty[29](index=29&type=chunk)[30](index=30&type=chunk) - Total direct primary mortgage insurance in force (IIF) was **$274.2 billion** and risk in force (RIF) was **$72.0 billion** as of March 31, 2025[32](index=32&type=chunk) [Note 4: Segment Reporting](index=18&type=section&id=Note%204%3A%20Segment%20Reporting) The Mortgage Insurance segment's adjusted pretax operating income decreased in Q1 2025 due to a higher provision for losses, resulting in a 6.6% loss ratio Mortgage Insurance Segment Performance (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Adjusted Pretax Operating Income | $194.3 million | $209.9 million | | Total Revenues | $284.3 million | $285.0 million | | Provision for Losses | $15.3 million | ($6.9 million) | | Loss Ratio | 6.6% | (2.9)% | | Expense Ratio | 24.8% | 25.0% | [Note 7: Residential Mortgage Loans](index=29&type=section&id=Note%207%3A%20Residential%20Mortgage%20Loans) Radian's mortgage conduit subsidiary held $279 million in residential mortgage loans for sale and closed its third private label securitization in Q1 2025 - The carrying value of residential mortgage loans held for sale was **$279 million** at March 31, 2025, down from **$520 million** at December 31, 2024[93](index=93&type=chunk) - In Q1 2025, the company closed its third private label securitization transaction (RMCT 2025-J1), issuing **$368 million** of mortgage pass-through certificates, with the special purpose vehicles for these securitizations consolidated as VIEs[104](index=104&type=chunk)[105](index=105&type=chunk) - Total income from consolidated VIEs was **$428,000** for Q1 2025[114](index=114&type=chunk) [Note 8: Reinsurance](index=32&type=section&id=Note%208%3A%20Reinsurance) Radian utilizes Quota Share and Excess-of-Loss reinsurance programs to manage risk, with new QSR agreements for policies written from July 2025 through June 2028 - In April 2025, Radian Guaranty agreed to terms on three new QSR agreements to cede a percentage of NIW over three sequential one-year periods starting July 1, 2025[129](index=129&type=chunk) RIF Ceded under QSR Program (as of March 31, 2025) | Agreement | RIF Ceded (in millions) | | :--- | :--- | | 2024 QSR | $2,181 | | 2023 QSR | $2,453 | | 2022 QSR | $3,954 | | Single Premium QSR (Combined) | $2,986 | Remaining Coverage under XOL Program (as of March 31, 2025) | Agreement | Remaining Coverage (in millions) | | :--- | :--- | | Eagle Re 2023-1 Ltd. | $312 | | Eagle Re 2021-2 Ltd. | $224 | | Eagle Re 2021-1 Ltd. | $136 | | 2023 XOL Agreement | $150 | [Note 11: Losses and LAE](index=38&type=section&id=Note%2011%3A%20Losses%20and%20LAE) The provision for losses increased to $15.2 million in Q1 2025 due to a 6% rise in new primary defaults and less favorable reserve development Provision for Losses (Q1 2025 vs Q1 2024) | Component | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Mortgage Insurance | $15.3 million | ($6.9 million) | | Title Insurance | ($0.2 million) | ($0.1 million) | | **Total Provision for Losses** | **$15.2 million** | **($7.0 million)** | - New primary default notices increased by **6%** to **12,505** in Q1 2025 from **11,756** in Q1 2024, attributed to natural portfolio seasoning[163](index=163&type=chunk) - Favorable reserve development on prior year defaults continued to positively impact the provision in Q1 2025, but to a lesser extent than in Q1 2024, primarily due to favorable cure trends[165](index=165&type=chunk) [Note 12: Borrowings and Financing Activities](index=40&type=section&id=Note%2012%3A%20Borrowings%20and%20Financing%20Activities) Radian's total borrowings were $1.34 billion as of March 31, 2025, with interest expense decreasing due to a lower senior notes balance Borrowings as of March 31, 2025 | Debt Type | Carrying Value (in thousands) | | :--- | :--- | | Senior Notes due 2027 | $447,734 | | Senior Notes due 2029 | $618,231 | | **Total Senior Notes** | **$1,065,965** | | Mortgage loan financing facilities | $240,545 | | FHLB advances | $32,122 | | **Total Secured Borrowings** | **$272,667** | [Note 14: Capital Stock](index=42&type=section&id=Note%2014%3A%20Capital%20Stock) In Q1 2025, Radian repurchased 6.5 million shares for $209 million and increased its quarterly dividend to $0.255 per share - The company purchased **6.5 million shares** at an average price of **$32.07 per share** during Q1 2025[187](index=187&type=chunk) - The quarterly dividend was increased by **$0.01** to **$0.255 per share**, effective with the Q1 2025 payment[189](index=189&type=chunk) - At the end of Q1 2025, **$336 million** remained under the **$900 million** share repurchase authorization[187](index=187&type=chunk) [Note 16: Statutory Information](index=44&type=section&id=Note%2016%3A%20Statutory%20Information) Radian's insurance subsidiaries maintained compliance with capital requirements, with Radian Guaranty's PMIERs cushion at $2.1 billion and a 10.2:1 risk-to-capital ratio - Radian Guaranty's risk-to-capital ratio was **10.2:1** as of March 31, 2025, well below the typical 25:1 limit[197](index=197&type=chunk) - The company was in compliance with PMIERs, with Available Assets of **$6.0 billion** exceeding Minimum Required Assets by **$2.1 billion** (a **53% cushion**) as of March 31, 2025[198](index=198&type=chunk)[336](index=336&type=chunk) - Radian Guaranty received approval for and paid a **$200 million** return of capital distribution to Radian Group in Q1 2025[201](index=201&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=46&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Provides management's analysis of Radian's financial condition and operating results, including mortgage insurance portfolio metrics, consolidated performance, liquidity, and capital resources [Mortgage Insurance Portfolio Metrics](index=47&type=section&id=Mortgage%20Insurance%20Portfolio%20Metrics) New insurance written decreased by 18% in Q1 2025, while primary insurance in force remained stable, and reinsurance programs provided a significant PMIERs benefit New Insurance Written (NIW) | Period | NIW (in billions) | YoY Change | | :--- | :--- | :--- | | Q1 2025 | $9.5 | -18% | | Q1 2024 | $11.5 | N/A | Insurance in Force (IIF) and Persistency | Metric | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Primary IIF | $274.2 billion | $271.0 billion | | 12-Month Persistency Rate | 83.7% | 84.3% | - Reinsurance programs reduced PMIERs Minimum Required Assets by **$1.43 billion**, or **26.6%** of the gross requirement, as of March 31, 2025[236](index=236&type=chunk) [Results of Operations—Consolidated](index=51&type=section&id=Results%20of%20Operations%E2%80%94Consolidated) Consolidated net income decreased to $144.6 million in Q1 2025 due to an unfavorable swing in the provision for losses, though diluted EPS remained flat Consolidated Results Summary (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Income | $144.6 million | $152.4 million | | Diluted EPS | $0.98 | $0.98 | | Adjusted Pretax Operating Income | $190.8 million | $202.8 million | | Adjusted Diluted Net Operating EPS | $0.99 | $1.00 | [Results of Operations—Mortgage Insurance](index=55&type=section&id=Results%20of%20Operations%E2%80%94Mortgage%20Insurance) The Mortgage Insurance segment's adjusted pretax operating income declined due to an increased provision for losses, resulting in a 6.6% loss ratio - Net premiums earned were flat YoY at approximately **$234 million**, as growth in the in-force portfolio was offset by higher ceded premiums[267](index=267&type=chunk)[268](index=268&type=chunk) Mortgage Insurance Provision for Losses | Component | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Current Period Defaults | $53.7 million | $53.7 million | | Prior Period Defaults (Favorable Development) | ($38.4 million) | ($60.6 million) | | **Total Provision for Losses** | **$15.3 million** | **($6.9 million)** | - The expense ratio was stable at **24.8%** in Q1 2025 compared to **25.0%** in Q1 2024[298](index=298&type=chunk) [Liquidity and Capital Resources](index=61&type=section&id=Liquidity%20and%20Capital%20Resources) Radian Group maintained strong liquidity with $1.1 billion in available funds, while Radian Guaranty's PMIERs cushion remained robust at $2.1 billion - Radian Group (holding company) had available liquidity of **$1.1 billion** as of March 31, 2025, which includes **$834 million** in cash and liquid investments and a **$275 million** undrawn revolving credit facility[310](index=310&type=chunk) - Key uses of cash in Q1 2025 included **$207 million** for share repurchases and **$38 million** for dividends[321](index=321&type=chunk)[315](index=315&type=chunk) Capital Adequacy (Radian Guaranty) | Metric | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | PMIERs Cushion | $2.1 billion (53%) | $2.2 billion (56%) | | Risk-to-Capital Ratio | 10.2:1 | 10.2:1 | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=66&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's market risk exposures, primarily related to interest rate and credit risk, have not materially changed from prior disclosures - Market risk exposures at March 31, 2025, have not materially changed from those identified in the 2024 Form 10-K[346](index=346&type=chunk) [Item 4. Controls and Procedures](index=67&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal controls - The CEO and CFO concluded that as of March 31, 2025, the company's disclosure controls and procedures were effective[349](index=349&type=chunk) - No material changes to internal control over financial reporting occurred in Q1 2025[350](index=350&type=chunk) [PART II—OTHER INFORMATION](index=68&type=section&id=PART%20II%E2%80%94OTHER%20INFORMATION) Covers legal proceedings, risk factors, equity sales, other information, and exhibits for the quarter [Item 1. Legal Proceedings](index=68&type=section&id=Item%201.%20Legal%20Proceedings) The company is routinely involved in legal and regulatory matters, but management expects no material adverse effect on financial condition or operations - The company is involved in routine legal actions and regulatory inquiries, but management does not expect them to have a material adverse effect[352](index=352&type=chunk)[180](index=180&type=chunk) [Item 1A. Risk Factors](index=68&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were reported, though recent executive actions and trade policies could exacerbate existing risks - No material changes to risk factors were reported, but the company highlighted that recent executive orders and trade policies could exacerbate existing risks[353](index=353&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=68&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Radian repurchased 6.5 million shares for $209 million in Q1 2025, with $336 million remaining under the current share repurchase authorization Share Repurchase Activity (Q1 2025) | Month | Shares Purchased | Average Price Paid | | :--- | :--- | :--- | | January 2025 | 2,577,018 | $31.75 | | February 2025 | 2,449,779 | $32.77 | | March 2025 | 1,432,353 | $31.46 | | **Total** | **6,459,150** | **N/A** | [Item 5. Other Information](index=69&type=section&id=Item%205.%20Other%20Information) Two company insiders adopted Rule 10b5-1 trading plans to sell common stock during the quarter - Director Lisa W. Hess and General Counsel Edward J. Hoffman each adopted a Rule 10b5-1 trading plan during Q1 2025[361](index=361&type=chunk) [Item 6. Exhibits](index=70&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO/CFO certifications and XBRL data files

Core Viewpoint - Radian Group reported a first-quarter 2025 adjusted operating income of 99 cents per share, exceeding the Zacks Consensus Estimate by 4.2%, despite a year-over-year decrease of 3.9% in earnings [1] Financial Performance - Operating revenues remained flat year over year at $306 million, missing the Zacks Consensus Estimate by 6.4% [2] - Net premiums earned were $234 million, unchanged from the previous year, while net investment income decreased by 0.9% year over year to $68.6 million [2] - Mortgage insurance new insurance written fell by 17.7% year over year to $9.5 billion [2] - Primary mortgage insurance in force reached an all-time high of $274.2 billion, reflecting a 1.2% increase year over year [2] Persistency and Delinquency - Persistency, defined as the percentage of mortgage insurance in force after 12 months, was 83.7%, down 60 basis points year over year [3] - Primary delinquent loans increased by 9.2% year over year to 22,758, while the default rate improved to 2.3% due to favorable credit trends [3] Expense and Loss Ratios - Total expenses rose by 7.4% year over year to $125.7 million, primarily due to higher provisions for losses [3] - The loss ratio for the first quarter was 7%, compared to 3% in the same quarter last year, while the expense ratio improved by 20 basis points to 24.8 [4] Segment Performance - The Mortgage segment's total revenues were $284.3 million, a decrease of 0.3% year over year, with net premiums earned remaining flat at $234 million [5] - Claims paid in the Mortgage segment increased by 33.3% year over year to $4 million, resulting in a loss ratio of 6.6% compared to -2.9% in the prior year [5] - The All Other segment reported revenues of $36 million, up 4.4% year over year, with net premiums earned increasing by 41.8% to $2.6 million [6] Financial Position - As of March 31, 2025, Radian Group had a cash balance of $28.2 million, down 41% from the end of 2024 [7] - The debt-to-capital ratio increased by 20 basis points to 18.9% from the end of 2024 [7] - Book value per share rose by 11% year over year to $32.48 [7] - The adjusted net operating return on equity was 12.7%, a contraction of 140 basis points [7] Shareholder Returns - In the first quarter of 2025, Radian repurchased 6.5 million shares for $207 million, with remaining purchase authority of up to $336 million [10] - A quarterly dividend of 25.5 cents per share was declared in the first quarter of 2025 [10]

Financial Data and Key Metrics Changes - The company reported a net income of $145 million for the first quarter, with a return on equity of 12.6% and an 11% year-over-year increase in book value per share to $32.48 [6][13] - Adjusted diluted net operating income per share was $0.99, slightly lower than the previous quarter's $1.08 [13] - Total revenues for the quarter were $318 million, a slight increase from the previous quarter [14] Business Line Data and Key Metrics Changes - The primary mortgage insurance in force reached $274 billion, benefiting from an 86% persistency rate due to elevated interest rates [7][15] - New insurance written in the first quarter was $9.5 billion, lower than the previous quarter due to a smaller origination market [15] - The in-force premium yield remained stable at 38 basis points [16] Market Data and Key Metrics Changes - The private mortgage insurance market has been relatively flat at approximately $300 billion over the past two years [10] - The company expects the housing market in 2025 to align with recent years, supported by ongoing supply shortages and pent-up demand from first-time homebuyers [10] Company Strategy and Development Direction - The company continues to focus on capital and expense management, with a strategic emphasis on share repurchases as an attractive use of capital [6][8] - A multi-year quota share reinsurance arrangement was agreed upon to mitigate risk and provide capital relief [26] - The company aims to maintain strong liquidity and capital flexibility while returning value to shareholders [10][27] Management's Comments on Operating Environment and Future Outlook - Management expressed a positive outlook for the housing market and mortgage insurance business, despite uncertainties from global trade policies [11][12] - The company is closely monitoring the impact of financial market volatility on its business [11] - Management remains conservative in its credit loss expectations, maintaining a default rate expectation in the sub-3% range [32][34] Other Important Information - The company repurchased $27 million worth of shares during the quarter, representing over 4% of shares outstanding [8][24] - Operating expenses decreased by 12% from the previous quarter, totaling $77 million [22] - The company expects to pay up to $795 million in total distributions to Radian Group in 2025 [24] Q&A Session Summary Question: Update on credit loss expectations and pricing strategies - Management noted strong performance in default and cure trends, with a default rate of 2.33%, lower than the previous quarter [32][34] Question: Drivers behind the claims rate reduction - The claims rate was reduced from 8% to 7.5% based on positive cure trends and home price appreciation [36][37] Question: Insights on buybacks and capital return philosophy - The company accelerated share buybacks significantly this quarter, utilizing excess liquidity to capture value [40][41] Question: Level of embedded equity in new delinquencies - Approximately 75% of new defaults have more than 20% equity, contributing to strong cure performance [46] Question: Right level of Holdco liquidity - The company maintains a strong liquidity position, currently at $834 million, and plans to return capital to shareholders as opportunities arise [50][52]

Financial Data and Key Metrics Changes - The company reported a net income of $145 million for the first quarter, with a return on equity of 12.6% and an 11% year-over-year increase in book value per share to $32.48 [6][13] - Adjusted diluted net operating income per share was $0.99, slightly lower than the previous quarter's $1.08 [13] - Total revenues for the quarter were $318 million, a slight increase from the previous quarter [14] Business Line Data and Key Metrics Changes - The primary mortgage insurance in force reached $274 billion, benefiting from an 86% persistency rate due to elevated interest rates [7][15] - New insurance written in the first quarter was $9.5 billion, lower than the previous quarter due to a smaller origination market [15] - The in-force premium yield remained stable at 38 basis points [16] Market Data and Key Metrics Changes - The private mortgage insurance market has been relatively flat at approximately $300 billion over the past two years [10] - The company expects the housing market in 2025 to align with recent years, supported by ongoing supply shortages and pent-up demand from first-time homebuyers [10][11] Company Strategy and Development Direction - The company continues to focus on capital and expense management, with a strategic emphasis on share repurchases as an attractive use of capital [6][8] - A multi-year quota share reinsurance arrangement was agreed upon to mitigate risk and provide capital relief [26] - The company aims to maintain strong liquidity and capital flexibility while returning value to shareholders [10][27] Management's Comments on Operating Environment and Future Outlook - Management expressed a positive outlook for the housing market and mortgage insurance business, despite uncertainties from global trade policies [11][12] - The company is closely monitoring the impact of financial market volatility on its business [11] - Cure rates for defaults have been strong, with a significant portion of new defaults containing embedded equity [19][46] Other Important Information - The company repurchased $27 million worth of shares during the quarter, representing over 4% of shares outstanding [8][24] - Operating expenses decreased by 12% from the previous quarter, aligning with expectations [22] - The company expects to pay up to $795 million in total distributions to Radian Group in 2025 [24] Q&A Session Summary Question: Update on credit loss expectations and pricing strategies - Management noted strong performance in default and cure trends, with a default rate of 2.33%, lower than the previous quarter [32][34] Question: Drivers behind the claims rate reduction - The claims rate was reduced from 8% to 7.5% based on positive cure trends and home price appreciation [36][37] Question: Insights on buybacks and capital return philosophy - The company accelerated share buybacks significantly this quarter, utilizing excess liquidity to capture value [40][41] Question: Level of embedded equity in new delinquencies - Approximately 75% of new defaults have more than 20% equity, indicating strong trends in cure performance [46] Question: Right level of Holdco liquidity - The company maintains a strong liquidity position, currently at $834 million, and plans to continue returning capital to shareholders [49][51]

Financial Data and Key Metrics Changes - The company reported a net income of $145 million for the first quarter, with a return on equity of 12.6% and an 11% year-over-year increase in book value per share to $32.48 [6][13] - Total revenues for the quarter were $318 million, a slight increase from the previous quarter, with net premiums earned remaining consistent at $234 million [14][15] - The persistency rate for insurance in force increased to 86%, the second highest rate observed in over ten years [15][17] Business Line Data and Key Metrics Changes - The primary mortgage insurance in force portfolio grew to $274 billion, with $9.5 billion of new insurance written in the first quarter, lower than the previous quarter due to a smaller origination market [7][15] - The in-force premium yield remained stable at 38 basis points, expected to remain stable for the remainder of the year [17] Market Data and Key Metrics Changes - The private mortgage insurance market has been relatively flat at approximately $300 billion over the past two years, with expectations for 2025 to align with recent years [10] - The company noted a continuing positive impact from the current interest rate environment, supporting investment portfolio income and a higher persistency rate for insurance in force [11] Company Strategy and Development Direction - The company is focused on capital and expense management, with a strategic emphasis on share repurchases as an attractive use of capital [6][7] - Radian Guaranty entered into a multi-year quota share reinsurance arrangement to mitigate risk and provide PMIERs capital relief [27] Management's Comments on Operating Environment and Future Outlook - Management expressed a positive outlook for the housing market and mortgage insurance business, despite uncertainties from global trade policies [11][28] - The company continues to monitor macroeconomic factors that may impact credit performance, including unemployment trends [11][35] Other Important Information - The company repurchased $27 million of shares during the quarter, representing over 4% of shares outstanding, and returned a total of $244 million to stockholders, including dividends [7][26] - The holding company liquidity was $834 million at the end of the quarter, with a credit facility providing additional financial flexibility [26][52] Q&A Session Summary Question: Update on credit loss expectations and pricing strategies - Management indicated strong performance in cure trends, with a default rate decrease from 2.44% to 2.33%, and maintained a conservative view on through-the-cycle default rates [33][35] Question: Drivers behind the claims rate reduction - The claims rate was reduced from 8% to 7.5% based on positive trends in home price appreciation and cure rates, with no immediate changes expected unless macroeconomic conditions shift significantly [37][39] Question: Insights on buybacks and capital return philosophy - The company accelerated share buybacks significantly this quarter, utilizing excess liquidity and plans to continue at a similar pace in the second quarter [41][43] Question: Level of embedded equity in new delinquencies - Approximately 75% of new defaults have more than 20% equity, contributing to strong cure performance [46] Question: Right level of holding company liquidity - The company maintains a strong liquidity position, significantly above operational needs, and plans to continue returning capital to shareholders as opportunities arise [50][52]