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]

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 Performance - Radian Group's net income for Q1 2025 was $145 million, compared to $148 million in Q4 2024 and $152 million in Q1 2024[9] - The diluted net income per share was $0.98 in Q1 2025, consistent with $0.98 in Q4 2024 and Q1 2024[9] - The adjusted diluted net operating income per share was $0.99 in Q1 2025, compared to $1.08 in Q4 2024 and $1.00 in Q1 2024[9] - The book value per share grew by 11% year-over-year, reaching $32.48 as of March 31, 2025, compared to $29.30 as of March 31, 2024[9] - The return on equity was 12.6% in Q1 2025, slightly lower than 12.7% in Q4 2024 and 13.8% in Q1 2024[10] - The adjusted net operating return on equity was 12.7% in Q1 2025, compared to 14.1% in both Q4 2024 and Q1 2024[10] Insurance Operations - The primary insurance in force was $274.2 billion as of March 31, 2025, compared to $275.1 billion as of December 31, 2024, and $271.0 billion as of March 31, 2024[13] - New insurance written was $9.5 billion in Q1 2025, compared to $13.2 billion in Q4 2024 and $11.5 billion in Q1 2024[13] - Net mortgage insurance premiums earned were $234 million in Q1 2025, consistent with $235 million in Q4 2024 and $234 million in Q1 2024[13] Investment Portfolio - Total investments were $6.1 billion as of March 31, 2025, compared to $6.3 billion as of December 31, 2024, and March 31, 2024[15] - Net investment income was $69 million in Q1 2025, consistent with $71 million in Q4 2024 and $69 million in Q1 2024[14]

Core Viewpoint - Radian reported quarterly earnings of $0.99 per share, exceeding the Zacks Consensus Estimate of $0.95 per share, but down from $1.03 per share a year ago, indicating a 4.21% earnings surprise [1] Group 1: Earnings Performance - The company has surpassed consensus EPS estimates for the last four quarters [2] - Radian's revenues for the quarter ended March 2025 were $306.29 million, missing the Zacks Consensus Estimate by 6.39%, and slightly down from $306.34 million year-over-year [2] - The stock has shown a loss of about 0.3% since the beginning of the year, while the S&P 500 has declined by 5.5% [3] Group 2: Future Outlook - The company's earnings outlook is crucial for investors, including current consensus earnings expectations for upcoming quarters [4] - The current consensus EPS estimate for the next quarter is $0.97 on revenues of $330.2 million, and for the current fiscal year, it is $3.79 on revenues of $1.32 billion [7] - The estimate revisions trend for Radian is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Group 3: Industry Context - The Insurance - Multi line industry, to which Radian belongs, is currently in the top 17% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Another company in the same industry, Assured Guaranty, is expected to report quarterly earnings of $3.15 per share, reflecting a year-over-year increase of 60.7% [9]

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].