RDN
Radian Group Inc.36.18
-0.01-0.03%
Dec 16, 4:00:02 PM EST
Earnings Call Transcripts
This Quarter (Q4 '25)
No earnings call transcript available yet
Last Quarter (Q3 '25)
FY Q3 '25
Clarifies accretion, synergies, buybacks
Q&A largely reaffirmed the Inigo acquisition and divestiture plans from prepared remarks, but clarified 200 basis points ROE accretion atop the 13.9% operating run-rate, with potential reinsurance synergies between mortgage insurance and Inigo teased for Investor Day next year. Divestitures carry $170 million book value, expecting no major gain or loss amid strong inbound interest. Buybacks stay paused until excess holdco liquidity rebuilds post-close. Management defended the 7.5% default-to-claim rate as through-cycle prudent, crediting post-COVID equity and forbearance muscle memory yet wary of normalization. Punchy: Synergies unlock more upside. Investors eye deal execution and capital return timing.
Key Stats
Market Cap
4.90BP/E (TTM)
9.14Basic EPS (TTM)
3.96Dividend Yield
0.03%Recent Filings
8-K
Radian renews $500M revolver
10-Q
Q3 FY2025 results
Radian's Q3 results showed steady premiums earned at $237M, down slightly y/y from $235M while up q/q (derived), with net income from continuing operations dipping to $153M from $167M y/y on higher losses ($18M vs $6M). Mortgage insurance drove $301M revenues, bolstered by $15.5B NIW (up 15% y/y) and $281B IIF, yet loss ratio widened to 7.5% from 2.7% on reduced prior-period favorability. Cash stood at $15M with $5.9B investments; debt included $1.1B senior notes (due 2027/2029) and $60M FHLB advances. Announced $1.7B Inigo acquisition (closing Q1 2026, funded by $600M intercompany loan) and divestiture of conduit/title/real estate units (expected Q3 2026). Risks include GSE eligibility under PMIERs.
8-K
Radian advances Inigo acquisition
Radian Group reported Q3 net income from continuing operations of $153 million, or $1.11 per diluted share, with primary mortgage insurance in force hitting a record $281 billion. The company advanced its strategic pivot, confirming a $1.7 billion all-cash acquisition of Lloyd's specialty insurer Inigo, set to close in Q1 2026, while approving divestitures of its Mortgage Conduit, Title, and Real Estate Services units. This shift promises mid-teens EPS accretion and doubled revenue, yet hinges on regulatory nods. Transformation underway.
8-K
Radian acquires Inigo for $1.7B
Radian Group inked a $1.7 billion deal on September 18, 2025, to snap up Inigo Limited, a Lloyd's specialty insurer, transforming into a global multi-line player while shedding its mortgage conduit, title, and real estate services via divestitures expected within a year. The cash-heavy buy, adjustable by Inigo's tangible net assets and closing no earlier than January 1, 2026, doubles revenue and adds uncorrelated lines. Deal's accretive, yet regulatory hurdles loom large.
8-K
Radian expands repurchase facility to $500M
Radian Mortgage Capital LLC amended its uncommitted master repurchase agreement with JPMorgan Chase Bank, N.A., boosting the maximum borrowing limit from $400 million to $500 million while extending the termination date to August 27, 2026. This bolsters Radian's capacity to finance residential mortgage loan acquisitions for resale or securitization, easing liquidity pressures amid market volatility. Radian reaffirmed its parent guaranty obligations. The facility remains uncommitted, exposing Radian to potential funding risks if market conditions sour.
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