Radian(US:RDN) ZACKSยท2025-08-04 17:21Core Viewpoint - Radian Group Inc. reported a second-quarter 2025 adjusted operating income of $1.01 per share, exceeding the Zacks Consensus Estimate by 8.6%, while the bottom line remained flat year over year [1] Financial Performance - Operating revenues were flat year over year at $312 million, missing the Zacks Consensus Estimate by 1.5% [2] - Net premiums earned were $237.5 million, down 0.1% year over year, and net investment income decreased 1.4% year over year to $72.7 million [2] - Mortgage insurance (MI) new insurance written increased by 2.9% year over year to $14.3 billion [2][8] - Primary mortgage insurance in force rose 1.4% year over year to a record $276.7 billion [2] Persistency and Delinquency - Persistency, the percentage of mortgage insurance in force after 12 months, was 84% as of June 30, 2025, remaining flat year over year [3] - Primary delinquent loans increased by 9.7% year over year to 22,258 as of June 30, 2025 [3][8] Expense and Loss Ratios - Total expenses increased by 7.5% year over year to $143 million, with an expense ratio of 29.7, deteriorating by 120 basis points from the previous year [3] - The Mortgage segment reported a positive loss ratio of 5.1 compared to a negative 0.8 in the year-ago quarter, with claims paid decreasing by 33.3% year over year to $4 million [4] Segment Performance - The Mortgage segment's total revenues increased by 0.8% year over year to $288.3 million, while net premiums earned decreased by 0.5% to $233.5 million [4] - The All Other segment experienced a significant year-over-year revenue decrease of 29.6% to $27.9 million, despite net premiums earned increasing by 37.1% to nearly $4 million [5] Financial Position - As of June 30, 2025, Radian Group had a cash balance of $22.1 billion, down 43.1% from the end of 2024 [6] - The debt-to-capital ratio deteriorated by 50 basis points to 19.2 from the end of 2024 [6] - Book value per share increased by 11.9% year over year to $33.18 [6] Shareholder Returns - During Q2 2025, Radian repurchased 7 million shares for $223 million, with two active share repurchase authorizations remaining [9] - The board declared a quarterly dividend of 25.5 cents per share in Q2 2025 [10]