Financial Data and Key Metrics Changes - The company reported a net income of $604 million for the full year 2024, with a diluted earnings per share of $3.92, reflecting a strong financial performance [10][17] - Book value per share increased by 9% year over year to $31.33, indicating solid growth in shareholder value [10][18] - The return on equity was reported at 13.4%, showcasing effective capital utilization [10][18] Business Line Data and Key Metrics Changes - Primary mortgage insurance in force reached an all-time high of $275 billion, a 2% increase year over year, which is a key driver for future earnings [11][20] - Net premiums earned for the fourth quarter were $235 million, with a total of $939 million for the full year, marking a 3% increase from the previous year [20] - The investment portfolio stood at $6.5 billion, generating net investment income of $71 million in the fourth quarter [22][24] Market Data and Key Metrics Changes - The private mortgage insurance market has remained relatively flat at approximately $300 billion over the past two years, but a slightly larger market is expected based on industry forecasts [14] - The persistency rate of existing insurance in force was high at 83.6%, indicating stability in the portfolio [21] Company Strategy and Development Direction - The company aims to achieve targeted reductions in run-rate operating expenses, with expectations of reducing expenses by $20 to $25 million in 2025 [34] - The strategic focus remains on managing operational efficiency and returning capital to shareholders, with $376 million returned through share repurchases and dividends in 2024 [12][37] - The company is well-positioned to support affordable homeownership through its mortgage insurance business model, which is strengthened by the PMIERs Capital framework [15] Management's Comments on Operating Environment and Future Outlook - Management expressed a positive outlook for the housing market and mortgage insurance business, supported by a constrained supply of existing homes [13][14] - The company anticipates continued strong performance in credit trends, with low claim levels and high cure rates for defaults [25][28] - Management highlighted the importance of bipartisan support for the private mortgage insurance industry in promoting sustainable homeownership [15][76] Other Important Information - The company received a ratings upgrade from Fitch to an A financial strength rating for Radian Guaranty and a BBB credit rating for Radian Group, both with a stable outlook [38] - A leadership transition was announced, with Sumita Pandit set to assume the role of President and Chief Financial Officer following Derek Brummer's retirement [40][41] Q&A Session Summary Question: Outlook for credit and default rates in 2025 - Management expects typical seasonal impacts on default rates, with a potential increase but not significantly above 3% unless macroeconomic conditions change [45][47] Question: Cure activity details - Cure activity has been strong across various vintages, with recent accident vintages showing the most cures [51] Question: Assumed claim rate in the quarter - The assumed claim rate was reduced to 7.5% for all new defaults, reflecting strong cure trends [54] Question: Changes in loan characteristics entering default - No material changes in loan characteristics have been observed, with embedded equity remaining strong [56][102] Question: Capital return and leverage strategy - The company is comfortable with its current leverage and plans to continue managing capital effectively, with a focus on returning capital to shareholders [62][66] Question: GSE reform and its impact on the private MI market - Management believes the private MI industry is well-positioned to support affordable housing, with ongoing dialogue with the new administration [72][76] Question: HomeGenius restructuring and margin improvement - The company expects to see improvements in margins for the HomeGenius segment as restructuring efforts continue [80][86] Question: Radian Mortgage Capital issuance plans - The company aims to grow its Radian Mortgage Capital business, with expectations for increased securitization activity in 2025 [108][110]

Core Insights - Radian Group Inc. reported fourth-quarter 2024 adjusted operating income of $1.09 per share, exceeding the Zacks Consensus Estimate by 14.7% and reflecting a year-over-year increase of 13.5% [1][2] Financial Performance - Operating revenues decreased by 4% year over year to $316 million, primarily due to lower services revenues [3] - Net premiums earned were $238.5 million, marking a 2.5% increase year over year [3] - Net investment income rose by 3.6% year over year to $71.3 million [3] - New Insurance Written increased by 24% year over year to $13.2 billion [3] - Primary mortgage insurance in force reached an all-time high of $275.1 billion, up 2% year over year [3] Expense Management - Total expenses decreased by 14.8% year over year to $126.7 million, attributed to lower other operating expenses and interest expense [5] - The expense ratio improved by 130 basis points to 24.2 compared to the year-ago quarter [5] Segment Performance - The Mortgage segment's total revenues increased by 2.1% year over year to $288.7 million, with net premiums earned rising by 2.1% to $235.2 million [6] - Claims paid in the Mortgage segment increased by 66.7% year over year to $5 million, while the loss ratio improved to 0% from 2% in the prior year [6] - The All Other segment's revenues grew by 3.8% year over year to $33.9 million, with net premiums earned increasing by 44.8% to $3.3 million [7] Full-Year Highlights - For the full year, adjusted operating income was $4.11 per share, beating the Zacks Consensus Estimate by 2.7% and reflecting a 6% year-over-year increase [8] - Total revenues for the year reached $1.2 billion, up 4% year over year [8] - New insurance written for the year was $51.9 billion, a decline of 1.3% from 2023 [8] - The loss ratio was negative 0.2 compared to negative 4.6 in 2023, while the expense ratio improved to 25.3 from 70 basis points in 2022 [8] Financial Position - As of December 31, 2024, Radian Group had a cash balance of $38.8 million, doubling from the previous year [10] - The debt-to-capital ratio improved by 570 basis points to 18.7% [10] - Book value per share increased by 9.1% year over year to $31.33 [10] - The adjusted net operating return on equity remained stable at 14.2% year over year [10] Shareholder Returns - In the fourth quarter of 2024, Radian repurchased 2.2 million shares for $75 million, with remaining purchase authority of up to $543 million [12] - A quarterly dividend of 24.5 cents per share was paid in the fourth quarter of 2024 [12]

Financial Performance - Fourth quarter net income was $148 million, or $0.98 per diluted share, compared to $143 million, or $0.91 per diluted share in Q4 2023[1][2] - Full year net income for 2024 was $604 million, or $3.92 per diluted share, slightly up from $603 million, or $3.77 per diluted share in 2023[2][3] - Adjusted pretax operating income for Q4 2024 was $209 million, an increase from $192 million in Q4 2023[2][4] - Total revenues for the full year 2024 were $1.29 billion, compared to $1.24 billion in 2023[4] - Total revenues for Q4 2024 were $315.861 million, a decrease of 5.4% from Q3 2024's $333.857 million[22] - Net income for Q4 2024 was $148.291 million, compared to $151.892 million in Q3 2024, reflecting a decrease of 2.1%[22] - For the full year 2024, total revenues reached $1.290 billion, an increase of 4% from $1.241 billion in 2023[23] - The company reported a net income of $604.440 million for the year 2024, slightly up from $603.119 million in 2023[23] - The consolidated pretax income for 2024 was $771.29 million, slightly higher than $767.49 million in 2023, indicating a growth of 0.2%[83] Revenue and Premiums - New Insurance Written (NIW) for Q4 2024 was $13.2 billion, compared to $10.6 billion in Q4 2023[9] - Net premiums earned for Q4 2024 were $238,562 thousand, compared to $232,649 thousand in Q4 2023, reflecting an increase of 2.5% year-over-year[31] - Net premiums earned for mortgage insurance increased to $939,237,000 in 2024 from $909,363,000 in 2023, representing a growth of 3.0%[45] - The company reported a total of $1,049,014,000 in direct mortgage insurance premiums earned in 2024, compared to $1,029,941,000 in 2023, a growth of 1.8%[45] - Net premiums written for the year ended December 31, 2024, reached $942,195, an increase from $914,455 in 2023, reflecting a growth of approximately 3%[63] - The net premiums earned for the year ended December 31, 2024, were $951,283, compared to $919,578 in 2023, showing an increase of about 3.4%[61] Expenses and Liabilities - Total expenses for Q4 2024 were $126.735 million, down from $138.465 million in Q3 2024, marking a decrease of 8.5%[22] - Interest expense for Q4 2024 was $22.513 million, a decrease from $29.391 million in Q3 2024[22] - The total operating expenses for the year ended December 31, 2024, were $331,856, compared to $280,008 in 2023, representing an increase of about 18.5%[61] - Total liabilities increased to $4,040,130 thousand as of December 31, 2024, compared to $3,196,128 thousand a year earlier, marking a rise of 26.5%[28] Assets and Book Value - Total assets increased to $8,663,988 thousand as of December 31, 2024, up from $7,593,933 thousand a year earlier, representing a growth of 14.1%[28] - Book value per share grew by 9% year-over-year to $31.33, compared to $28.71 at the end of 2023[5][7] - The book value per share was $31.33 as of December 31, 2024, up from $28.71 a year earlier, representing an increase of 9.0%[28] Ratings and Market Position - Fitch Ratings upgraded Radian Guaranty's insurance financial strength rating to A from A- on January 16, 2025[11] - The company anticipates potential impacts from economic conditions, including inflation and interest rates, on its future performance[95] - Radian Group is focused on maintaining eligibility under PMIERs to insure loans purchased by GSEs, which is critical for its business operations[95] - The company faces competition from FHA and VA, as well as price competition in the private mortgage insurance industry[95] Operational Highlights - The company maintained $885 million of available liquidity as of December 31, 2024[15] - The company plans to continue focusing on market expansion and new product development in the upcoming quarters[22] - The loss ratio for Q4 2024 was 0.0%, compared to 2.7% in Q3 2024, indicating improved performance[70] - The expense ratio for Q4 2024 was 24.2%, slightly higher than 23.7% in Q3 2024[70] Shareholder Returns - Radian Group paid $675 million in ordinary dividends during 2024, including $190 million in Q4 2024[15] - The diluted net income per share for Q4 2024 was $0.98, compared to $0.91 in Q4 2023, reflecting a year-over-year increase of 7.7%[80] - Adjusted diluted net operating income per share for Q4 2024 was $1.09, up from $0.96 in Q4 2023, representing a 13.5% increase[80]

Core Viewpoint - Radian (RDN) reported quarterly earnings of $1.09 per share, exceeding the Zacks Consensus Estimate of $0.95 per share, and showing an increase from $0.96 per share a year ago, indicating a positive earnings surprise of 14.74% [1] Company Performance - Over the last four quarters, Radian has consistently surpassed consensus EPS estimates, achieving this four times [2] - The company reported revenues of $312.37 million for the quarter ended December 2024, which fell short of the Zacks Consensus Estimate by 3.89%, but showed an increase from $302.78 million year-over-year [2] - Radian's stock has increased approximately 7% since the beginning of the year, outperforming the S&P 500's gain of 2.7% [3] Future Outlook - The future performance of Radian's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [3][4] - Current consensus EPS estimate for the upcoming quarter is $0.93 on revenues of $327.2 million, and for the current fiscal year, it is $3.67 on revenues of $1.32 billion [7] - The estimate revisions trend for Radian is currently mixed, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6] Industry Context - The Insurance - Multi line industry, to which Radian belongs, is currently ranked in the bottom 45% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Radian's performance [5]

Core Viewpoint - Radian Group Inc. is experiencing a short-term bearish trend as its share price trades below the 50-day simple moving average, despite a solid long-term growth outlook driven by an improving mortgage insurance portfolio and declining claims [1][2][4]. Group 1: Financial Performance - As of January 17, 2025, Radian Group's share price was $32.94, down 13% from its 52-week high of $37.86 [1]. - The company has a market capitalization of $4.90 billion and has seen its shares gain 12.4% over the past year, underperforming its industry and the S&P 500 composite [2]. - Radian Group's revenues for 2025 are projected to increase by 4.8% compared to 2024 estimates, while earnings have grown by 8.5% over the last five years [4]. - The return on invested capital in the trailing 12 months was 7.8%, significantly higher than the industry average of 2.3%, indicating efficient fund utilization [6]. Group 2: Growth Drivers - Radian Group is focusing on its core business and services with higher growth potential, which is expected to ensure a predictable and recurring fee-based revenue stream [7]. - The company has been witnessing a decline in claim filings, which is anticipated to further strengthen its balance sheet and improve its financial profile [8]. - The mortgage insurance market is expected to grow approximately 10% in 2025 compared to 2024, driven by ongoing homebuyer demand and a projected decline in interest rates [9]. Group 3: Capital Position and Dividends - Radian Group is strengthening its capital position through capital contributions, reinsurance transactions, and maintaining a solid cash position, which supports wealth distribution [10]. - The company increased its quarterly dividend by 9% in the first quarter of 2024, marking the fifth consecutive year of dividend increases, with a total rise of 96% over the past four years [11]. Group 4: Valuation - Radian Group shares are trading at a price-to-book multiple of 1.04, which is lower than the industry average of 2.37, providing a better entry point for investors [12]. - Other multi-line insurers are also trading at a discount to the industry average, indicating a favorable valuation environment [12]. Group 5: Overall Outlook - The combination of an improving mortgage insurance portfolio, declining claims, a solid capital position, effective capital deployment, and favorable growth estimates positions Radian Group well for long-term success [13].

Radian Group Inc. (RDN) shares are trading at a discount to the Zacks Multi-line Insurance industry. Its forward price-to-book value of 1.02X is lower than the industry average of 2.24X, the Finance sector’s 3.56X and the Zacks S&P 500 composite’s 8.6X.Image Source: Zacks Investment ResearchThe insurer has a market capitalization of $4.72 billion. The average volume of shares traded in the last three months was 1.05 million.The stock remains attractively valued compared with CNO Financial Group, Inc. (CNO) ...

Shares of Radian Group Inc. (RDN) have rallied 32.9% in the past year, outperforming the industry’s 26.9% growth. The insurer also outperformed the Zacks S&P 500 composite and the Finance sector’s return of 30% and 30.9%, respectively, in the past year. With a market capitalization of $5.04 billion, the average volume of shares traded in the last three months was 1.03 million. Currently priced at $33.86, the stock is a little below its 52-week high of $37.86.RDN Outperforms Industry, Sector, S&P in a YearIm ...

-Using blockchain technology to bring much needed transparency and simplification to the US real estate market, helping to reduce risk and improve operational efficiency through secure and immutable transactions -Title customers can save up to 25%* on average on closing costs LONDON and WAYNE, Pa., Nov. 13, 2024 (GLOBE NEWSWIRE) -- R3, the financial markets digital solutions provider, and Radian (NYSE: RDN), the data-driven, tech-enabled mortgage and real estate services family of companies, have collaborat ...

Radian (RDN) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices. The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate. Since a changing earni ...

Investors with an interest in Insurance - Multi line stocks have likely encountered both Radian (RDN) and BB Seguridade Participacoes SA (BBSEY) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look. There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emp ...