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]