Radian(RDN) - 2024 Q4 - Annual Results

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]