Radian Group Inc. (NYSE:RDN) Q3 2022 Earnings Conference Call November 3, 2022 12:00 PM ET Company Participants John Damian - SVP of Corporate Development and IR Rick Thornberry - CEO Frank Hall - CFO Derek Brummer - President, Radian Mortgage Conference Call Participants Mark DeVries - Barclays Doug Harter - Credit Suisse Bose George - KBW Mihir Bhatia - Bank of America Eric Hagen - BTIG Operator Good day, and welcome to the Q3 2022 Radian Group Earnings Conference Call. [Operator Instructions] I would now ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________________ FORM 10-Q _____________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-11356 _______________________________ Radian Group Inc. (Exact name of ...

Financial Data and Key Metrics Changes - The company reported net income of $201 million or $1.15 per diluted share for Q2 2022, compared to $1.01 per diluted share in Q1 2022 and $0.80 per diluted share in Q2 2021 [27] - Adjusted diluted net operating income was $1.36 per share in Q2 2022, up from $1.17 in Q1 2022 and $0.75 in Q2 2021 [27] - Return on equity was 19.9% [9] - The primary insurance in force grew 7% year-over-year to over $254 billion as of June 30, 2022 [10][29] - Monthly premium insurance in force increased by more than 12% year-over-year [10] Business Line Data and Key Metrics Changes - The Mortgage segment wrote $18.9 billion of new insurance written (NIW) in Q2 2022, a slight increase from $18.7 billion in Q1 2022 but down from $21.7 billion in Q2 2021 [28] - Purchase transactions accounted for 97% of total NIW in Q2 2022, compared to 77% in Q2 2021 [28] - Homegenius segment revenues were $32.3 million in Q2 2022, down from $33.9 million in Q1 2022 but up 12% year-to-date compared to the same period last year [13][34] Market Data and Key Metrics Changes - The company noted a favorable prior period reserve development driven by better-than-expected cure activity, with new notices of default at their lowest in over 20 years [12] - The overall housing market is experiencing challenges with affordability due to rising home prices and mortgage rates, but the company believes this is a healthy shift [22][55] Company Strategy and Development Direction - The company is focused on three areas of strategic value creation: growing the mortgage insurance portfolio, expanding the Homegenius business, and managing capital resources [8][46] - The launch of Radian Mortgage Capital aims to provide additional secondary market options for high-quality loans and broaden market reach [12][47] - The company is committed to addressing the homeownership gap for underserved communities through an affordable homeownership initiative [24][25] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the macroeconomic environment's rapid changes, including increased mortgage rates and inflation, but expressed confidence in the company's ability to navigate these challenges [19][21] - The company expects the private mortgage insurance market to be approximately $400 billion to $450 billion in 2022, representing a smaller market than originally expected but still significant [23] - Management emphasized the importance of dynamic risk-based pricing to address current economic conditions [21][59] Other Important Information - The company maintained a strong capital position with $1 billion in total holding company liquidity and a PMIERs cushion of $1.4 billion or 38% [18][40] - Moody's upgraded the ratings of Radian Group and Radian Guaranty, reflecting improved capital adequacy and profitability metrics [44] Q&A Session Summary Question: How is the company managing the risks associated with the current environment? - Management highlighted the strength of the business model and the ability to navigate economic cycles, emphasizing disciplined underwriting and risk distribution strategies [52][54] Question: What are the plans for additional capital return? - Management indicated a willingness to return capital to shareholders while ensuring sufficient capital to support organic growth and potential acquisitions [66][68] Question: Can you discuss the demand and pricing backdrop for reinsurance? - Management noted solid demand and favorable pricing in the reinsurance market, driven by strong fundamentals and demographic tailwinds [72] Question: What is the strategic plan behind Radian Mortgage Capital? - Management described Radian Mortgage Capital as a long-term strategic extension aimed at aggregating and managing mortgage credit risk, providing additional liquidity options for customers [74][76]

Financial Performance - Radian's net income was $181.1 million in Q1 2022 [7], compared to $125.6 million in Q1 2021 [7], and $193.4 million in Q4 2021 [7] - Diluted net income per share was $1.01 in Q1 2022 [7], compared to $0.64 in Q1 2021 [7], and $1.07 in Q4 2021 [7] - Adjusted diluted net operating income per share was $1.17 in Q1 2022 [7], compared to $0.68 in Q1 2021 [7] - Return on average equity was 17.2% in Q1 2022 [8], compared to 11.8% in Q1 2021 [8] - Adjusted net operating return on average equity was 19.9% in Q1 2022 [8], compared to 12.4% in Q1 2021 [8] Insurance Portfolio - Primary insurance in force was $249.0 billion in Q1 2022 [10], reflecting a 10.3% year-over-year increase in monthly premium policies [10], offset by a 19.1% decline in single premium policies [10] - New insurance written was $18.7 billion in Q1 2022 [11], compared to $20.2 billion in Q1 2021 [11] - Net mortgage premiums earned were $245.2 million in Q1 2022 [11], compared to $264.7 million in Q1 2021 [11] Loss Reserves and Defaults - Provision for losses was $(83.8) million in Q1 2022 [12], compared to $46.1 million in Q1 2021 [12] - Reserve for losses and loss adjustment expense was $727.2 million in Q1 2022 [13], compared to $887.4 million in Q1 2021 [13] - The percentage of loans in default was 2.6% [63], with 50.4% of those loans in forbearance programs [63] Capital and Liquidity - Available holding company liquidity was $1.0 billion in Q1 2022 [8] - Investment portfolio was $6.3 billion in Q1 2022 [8] - PMIERs excess available assets were $1.6 billion in Q1 2022 [14], representing a 44% cushion [24]

[PART I—FINANCIAL INFORMATION](index=10&type=section&id=PART%20I%E2%80%94FINANCIAL%20INFORMATION) [Item 1. Financial Statements (Unaudited)](index=10&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Radian Group's Q1 2022 net income increased to **$181.1 million** due to favorable loss development, though total assets decreased to **$7.62 billion** from investment losses | Financial Metric | Three Months Ended March 31, 2022 ($ millions) | Three Months Ended March 31, 2021 ($ millions) | | :--- | :--- | :--- | | **Total Revenues** | $293.0 | $328.8 | | **Provision for Losses** | $(83.8) | $46.1 | | **Net Income** | $181.1 | $125.6 | | **Diluted EPS** | $1.01 | $0.64 | | Balance Sheet Item | March 31, 2022 ($ billions) | December 31, 2021 ($ billions) | | :--- | :--- | :--- | | **Total Investments** | $6.33 | $6.51 | | **Total Assets** | $7.62 | $7.84 | | **Total Liabilities** | $3.47 | $3.58 | | **Total Stockholders' Equity** | $4.15 | $4.26 | [Note 1 - Description of Business](index=16&type=section&id=Note%201%20-%20Description%20of%20Business) Radian operates through Mortgage, providing private mortgage insurance, and homegenius, offering title, real estate, and technology services - The Mortgage segment's primary business is providing private mortgage insurance on residential first-lien loans, facilitating homeownership for borrowers with down payments of less than **20%**[28](index=28&type=chunk)[29](index=29&type=chunk) - The homegenius segment is a fee-for-service business offering title, real estate, and technology products to consumers, lenders, investors, and real estate agents[32](index=32&type=chunk) - As of March 31, 2022, the company's total direct primary mortgage insurance in force (IIF) was **$249.0 billion**, with risk in force (RIF) of **$62.0 billion**[30](index=30&type=chunk) [Note 4 - Segment Reporting](index=18&type=section&id=Note%204%20-%20Segment%20Reporting) In Q1 2022, Mortgage segment adjusted pretax operating income rose to **$277.8 million**, while homegenius reported a wider adjusted pretax operating loss of **$13.5 million** | Segment | Q1 2022 Adjusted Pretax Operating Income (Loss) ($ thousands) | Q1 2021 Adjusted Pretax Operating Income (Loss) ($ thousands) | | :--- | :--- | :--- | | **Mortgage** | $277,841 | $175,709 | | **homegenius** | $(13,506) | $(10,453) | | **Total Reportable Segments** | $264,335 | $165,256 | - The company uses adjusted pretax operating income (loss) as its primary measure to evaluate segment performance and allocate resources, excluding items like net gains/losses on investments and amortization of acquired intangibles[51](index=51&type=chunk)[52](index=52&type=chunk) [Note 8 - Reinsurance](index=27&type=section&id=Note%208%20-%20Reinsurance) Radian uses reinsurance (QSR, Single Premium QSR, XOL) for risk management; Q1 2022 ceded premiums reduced net premiums earned by **$14.6 million** - Ceded losses for Q1 2022 were a benefit of **$12.8 million**, compared to an expense of **$3.7 million** in Q1 2021, reflecting favorable loss development[103](index=103&type=chunk) - As of January 1, 2022, Radian Guaranty is no longer ceding new insurance written (NIW) under the Single Premium QSR Program[107](index=107&type=chunk) | Reinsurance Program | RIF Ceded (as of March 31, 2022) ($ millions) | | :--- | :--- | | **2020 Single Premium QSR** | $2,137 | | **2018 Single Premium QSR** | $1,021 | | **2016 Single Premium QSR** | $1,698 | - The total assets of the unconsolidated Eagle Re Issuers, which collateralize the Excess-of-Loss program, were **$2.20 billion** as of March 31, 2022[121](index=121&type=chunk) [Note 11 - Losses and LAE](index=33&type=section&id=Note%2011%20-%20Losses%20and%20LAE) Total loss and LAE reserves decreased to **$727.2 million** by March 31, 2022, with Q1 2022 showing an **$84.2 million** benefit from favorable prior-year default development | Mortgage Insurance Reserve Rollforward | Three Months Ended March 31, 2022 ($ thousands) | | :--- | :--- | | **Beginning Balance, net of reinsurance** | $756,460 | | **Losses Incurred (Current Year)** | $40,662 | | **Losses Incurred (Prior Years - Favorable Development)** | $(124,897) | | **Total Incurred** | $(84,235) | | **Total Paid** | $4,738 | | **Ending Balance, net of reinsurance** | $667,487 | - New primary default notices decreased **21%** to **9,393** in Q1 2022 compared to Q1 2021[138](index=138&type=chunk) - Favorable reserve development was primarily driven by reductions in Default to Claim Rate assumptions for prior year defaults, especially those from 2020 at the start of the pandemic[139](index=139&type=chunk) [Note 14 - Capital Stock](index=36&type=section&id=Note%2014%20-%20Capital%20Stock) Radian's board approved a new **$400 million** share repurchase program and increased the quarterly dividend by **43%** to **$0.20** per share in Q1 2022 - A new share repurchase program authorizing up to **$400.0 million** was approved on February 9, 2022[150](index=150&type=chunk) - In Q1 2022, the company purchased **0.9 million** shares at an average price of **$23.01** per share, with **$378.7 million** remaining available under the program as of March 31, 2022[151](index=151&type=chunk) - The quarterly dividend was increased to **$0.20** per share, beginning with the dividend declared in Q1 2022[153](index=153&type=chunk) [Note 16 - Statutory Information](index=38&type=section&id=Note%2016%20-%20Statutory%20Information) Radian's insurance subsidiaries complied with statutory capital requirements, with Radian Guaranty's risk-to-capital ratio at **12.1:1** and a **$500 million** capital return to the parent - Radian Guaranty paid a **$500 million** Extraordinary Distribution to Radian Group in February 2022, approved by the Pennsylvania Insurance Department[164](index=164&type=chunk) - Radian Guaranty's Risk-to-capital ratio was **12.1:1** as of March 31, 2022, well within the common statutory limit of **25:1**[161](index=161&type=chunk) - The company was in compliance with the Private Mortgage Insurer Eligibility Requirements (PMIERs) set by the GSEs[162](index=162&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=39&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) NIW decreased **7.5%** to **$18.7 billion**, while IIF grew to **$249.0 billion**; consolidated net income increased due to loss provision benefits, with strong holding company liquidity [Mortgage Insurance Portfolio](index=41&type=section&id=Mortgage%20Insurance%20Portfolio) IIF grew to **$249.0 billion** by Q1 2022, driven by higher persistency, while NIW decreased **7.5%** to **$18.7 billion** due to lower refinance activity | Metric | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | **New Insurance Written (NIW) ($ billions)** | $18.7 | $20.2 | | **Primary Insurance in Force (IIF) ($ billions)** | $249.0 | $238.9 | | **12-Month Persistency Rate (%)** | 68.0% | 57.2% | - The composition of NIW shifted dramatically toward purchase loans, which constituted **91.4%** of Q1 2022 NIW, compared to **59.1%** in Q1 2021[191](index=191&type=chunk) [Results of Operations—Consolidated](index=44&type=section&id=Results%20of%20Operations%E2%80%94Consolidated) Consolidated net income rose to **$181.1 million** in Q1 2022, driven by a **$129.9 million** favorable change in loss provisions, despite lower total revenues of **$293.0 million** | (in thousands) | Q1 2022 ($ thousands) | Q1 2021 ($ thousands) | | :--- | :--- | :--- | | **Total Revenues** | $292,980 | $328,813 | | **Provision for Losses** | $(83,754) | $46,143 | | **Total Expenses** | $58,840 | $167,624 | | **Pretax Income** | $234,140 | $161,189 | | **Net Income** | $181,131 | $125,608 | - Adjusted pretax operating income, a non-GAAP measure, increased to **$264.9 million** from **$167.3 million** in the prior-year quarter[219](index=219&type=chunk) [Results of Operations—Mortgage](index=49&type=section&id=Results%20of%20Operations%E2%80%94Mortgage) Mortgage segment adjusted pretax operating income increased to **$277.8 million** in Q1 2022, primarily due to an **$84.2 million** net benefit from loss provisions, despite lower net premiums earned | Mortgage Segment | Q1 2022 ($ millions) | Q1 2021 ($ millions) | | :--- | :--- | :--- | | **Net Premiums Earned** | $245.2 | $264.6 | | **Provision for Losses** | $(84.2) | $45.9 | | **Adjusted Pretax Operating Income** | $277.8 | $175.7 | - The segment's loss ratio was **(34.3)%** for Q1 2022, compared to **17.3%** for Q1 2021, reflecting the large benefit from loss reserve releases[241](index=241&type=chunk) [Results of Operations—homegenius](index=55&type=section&id=Results%20of%20Operations%E2%80%94homegenius) homegenius segment revenues grew to **$33.9 million** in Q1 2022, but the adjusted pretax operating loss widened to **$13.5 million** due to increased expenses | homegenius Segment | Q1 2022 ($ thousands) | Q1 2021 ($ thousands) | | :--- | :--- | :--- | | **Total Revenues** | $33,912 | $25,795 | | **Total Expenses** | $47,418 | $36,248 | | **Adjusted Pretax Operating Loss** | $(13,506) | $(10,453) | - Services revenue increased primarily due to growth in valuation and single family rental products and services[266](index=266&type=chunk) [Liquidity and Capital Resources](index=57&type=section&id=Liquidity%20and%20Capital%20Resources) Radian Group maintained strong liquidity with **$1.0 billion** in cash and investments, while Radian Guaranty had a **$1.6 billion** PMIERs cushion and a debt-to-capital ratio of **25.4%** - Radian Group (holding company) had **$1.0 billion** in unrestricted cash and liquid investments and total liquidity of **$1.3 billion** as of March 31, 2022[278](index=278&type=chunk) - Radian Guaranty's PMIERs cushion was **$1.6 billion**, or **44%** over its Minimum Required Assets, as of March 31, 2022[298](index=298&type=chunk) | Capital Metric | March 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **Debt-to-capital ratio (%)** | 25.4% | 24.9% | | **Book value per share ($)** | $23.75 | $24.28 | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=62&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's market risk exposures, primarily from interest rate and credit spread risk in its investment portfolio, remain materially unchanged from 2021 - The fair value of the company's investments is materially exposed to changes in interest rates and credit spreads[312](index=312&type=chunk) [Item 4. Controls and Procedures](index=62&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2022, with no material changes in internal control over financial reporting - The CEO and CFO concluded that as of March 31, 2022, disclosure controls and procedures were effective to provide reasonable assurance of timely and accurate reporting[315](index=315&type=chunk) [PART II—OTHER INFORMATION](index=63&type=section&id=PART%20II%E2%80%94OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=63&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in routine legal and regulatory matters, with management not expecting a material adverse effect on financial condition - Radian is routinely involved in legal actions, regulatory reviews, and other disputes arising in the ordinary course of business[318](index=318&type=chunk) [Item 1A. Risk Factors](index=63&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's risk factors were reported from those disclosed in the 2021 Annual Report on Form 10-K - No material changes to risk factors were reported since the 2021 Form 10-K[319](index=319&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=63&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not sell unregistered equity securities in Q1 2022 but repurchased **927,075** shares at **$23.01** each under a **$400 million** program | Period | Total Shares Purchased | Average Price Paid per Share ($) | Dollar Value Remaining Under Program ($) | | :--- | :--- | :--- | :--- | | **Jan 2022** | 387 | $21.94 | N/A | | **Feb 2022** | 1,824 | $22.23 | $400,000,000 | | **Mar 2022** | 931,438 | $23.01 | $378,680,000 | - The current share repurchase program was approved on February 9, 2022, for up to **$400 million** and expires in February 2024[323](index=323&type=chunk) [Item 6. Exhibits](index=64&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO/CFO certifications and XBRL data files

Radian Group, Inc. (NYSE:RDN) Q1 2022 Earnings Conference Call May 4, 2022 10:00 AM ET Company Participants John Damian - IR Rick Thornberry - CEO Frank Hall - CFO Derek Brummer - President, Radian Mortgage Conference Call Participants Mark DeVries - Barclays Doug Harter - Credit Suisse Bose George - KBW Mihir Bhatia - Bank of America Ryan Gilbert - BTIG John Damian Thank you, and welcome to Radian's First Quarter 2022 Conference Call. Our press release, which contains Radian's financial results for the qua ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _______________________________ FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-11356 ____________________________ RADIAN GROUP INC. (Exact name of registrant as specified in its char ...

Radian Group Inc. (NYSE:RDN) Q4 2021 Earnings Conference Call February 23, 2022 10:00 AM ET Company Participants John Damian - IR Rick Thornberry - CEO Frank Hall - CFO Derek Brummer - President, Radian Mortgage Conference Call Participants Mark DeVries - Barclays Mihir Bhatia - Bank of America Doug Harter - Credit Suisse Bose George - KBW Ryan Gilbert - BTIG Geoffrey Dunn - Dowling Cullen Johnson - B. Riley Securities Operator Good morning, and welcome to Radian's Fourth Quarter 2021 Earnings Call. My name ...

radian Financial Results Q4 2021 NYSE: RDN www.radian.com 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 "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 "antic ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________________ FORM 10-Q _____________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-11356 _______________________________ Radian Group Inc. (Exact nam ...