RDN

In its latest quarter, reported before 5 September 2026, Radian Group Inc. delivered stronger-than-expected results, supported by higher net premiums earned, increased new insurance written, and solid investment income, while continuing to return capital through share repurchases and dividends. An interesting tension for investors is that this operational strength and capital return comes alongside rising expenses, more primary loan defaults, and a Zacks Rank of #4 (Sell), reflecting a more cautious earnings outlook. Next, we’ll examine how Radian’s better-than-expected quarterly performance but softer earnings outlook could reshape the company’s mortgage-insurance-focused investment narrative. We've uncovered the 11 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them. To own Radian today, you need to believe in the resilience of its mortgage insurance franchise and its ability to turn strong premium and investment income into durable earnings, despite higher expenses and more primary loan defaults. The latest beat on quarterly results appears to support that core thesis in the short term, while the Zacks Rank of #4 (Sell) and softer earnings outlook keep the key risk of profit pressure very much in focus, rather than fundamentally changing it. Among recent announcements, the ongoing share repurchase activity, including roughly 1.7 million shares bought back in the second quarter of 2026 for about US$63.6 million, ties directly into this quarter’s story of capital return alongside operating strength. For investors, this continued buyback program can matter as much as the earnings print when thinking about how Radian balances growth in insurance in force with capital efficiency, especially as expenses rise and credit trends soften at the margin. Yet beneath the strong quarter and steady capital returns, investors should be aware of how Radian’s heavy reliance on mortgage insurance leaves it exposed if... Read the full narrative on Radian Group (it's free!) Radian Group's narrative projects $1.4 billion revenue and $518.3 million earnings by 2028. Uncover how Radian Group's forecasts yield a $38.67 fair value, a 5% upside to its current price. Two Simply Wall St Community fair value estimates for Radian span a wide range, from about US$38.67 to US$112.27 per share, underscoring how far opinions can differ. When you set those views against Radian’s reliance on mortgage insurance in a housing market facing affordability pressures, it becomes even more important to compare several perspectives before deciding how this business might fit into your portfolio. Explore 2 other fair value estimates on Radian Group - why the stock might be worth over 3x more than the current price! Don't just follow the ticker - dig into the data and build a conviction that's truly your own. A great starting point for your Radian Group research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision. Our free Radian Group research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Radian Group's overall financial health at a glance. Our top stock finds are flying under the radar-for now. Get in early: Outshine the giants: these 19 early-stage AI stocks could fund your retirement. Uncover the next big thing with 22 elite penny stocks that balance risk and reward. The future of work is here. Discover the 36 top robotics and automation stocks leading the charge in AI-driven automation and industrial transformation. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include RDN. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

A month has gone by since the last earnings report for Radian (RDN). Shares have added about 1.5% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Radian due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for Radian Group Inc. before we dive into how investors and analysts have reacted as of late. RDN Q2 Revenues Top Estimates on Higher Premiums, Investment IncomeRadian Group Inc. reported second-quarter 2026 adjusted operating income of $1.14 per share, which missed the Zacks Consensus Estimate by 17.4%. The bottom line improved 2.7% year over year. Operating revenues increased 86.2% year over year to $581 million, driven by higher premiums earned following the Inigo acquisition and net investment income. The top line surpassed the Zacks Consensus Estimate by 2.3%. The better-than-expected quarterly results benefited from strong growth in net premiums earned, higher new insurance written, a record level of primary mortgage insurance in force and solid investment income. However, elevated expenses and higher primary loan defaults remained headwinds. Net premiums earned were $504 million, up 115.7% year over year. Net investment income rose 21.1% year over year to $70 million, supported by higher income from fixed maturities and short-term investment balances.MI's new insurance written increased 14% year over year to $16.3 billion. Primary mortgage insurance in force rose 3% year over year to $284 billion, beating the Zacks Consensus Estimate by 1.1%. Persistency — the percentage of mortgage insurance remaining in force after 12 months — was 82% as of June 30, 2026, up 70 basis points year over year.As of June 30, 2026, primary delinquent loans represented 2.47% of primary loans in default compared with 2.27% in the prior-year quarter. Total expenses soared 301.1% year over year to $424.2 million. The expense ratio improved 190 basis points year over year to 23.4%. As of June 30, 2026, Radian reported cash of $119 million, up 114.7% from the 2025-end level. Total assets increased 31.2% from the 2025-end level to $10.7 billion. Book value per share increased 8.5% year over year to $36.00. Shareholders' equity rose 0.6% from the 2025-end level to $4.8 billion. Adjusted net operating return on equity was 12.9%, down 60 basis points year over year. As of June 30, 2026, Radian Guaranty's available assets under PMIERs totaled $5.3 billion, resulting in excess available assets of $1.5 billion. During the second quarter of 2026, the company repurchased 2.2 million shares of common stock for $76 million. In the second quarter, Radian paid a quarterly dividend of 25.5 cents per share, totaling approximately $37 million. In the past month, investors have witnessed a downward trend in fresh estimates. At this time, Radian has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for value investors. Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. It's no surprise Radian has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months. Radian is part of the Zacks Insurance - Multi line industry. Over the past month, Principal Financial (PFG), a stock from the same industry, has gained 2.7%. The company reported its results for the quarter ended June 2026 more than a month ago. Principal Financial reported revenues of $3.99 billion in the last reported quarter, representing a year-over-year change of +8.3%. EPS of $2.50 for the same period compares with $2.16 a year ago. Principal Financial is expected to post earnings of $2.53 per share for the current quarter, representing a year-over-year change of +20.5%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.2%. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Principal Financial. Also, the stock has a VGM Score of B. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Radian Group Inc. (RDN) : Free Stock Analysis Report Principal Financial Group, Inc. (PFG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

MGIC Investment Corporation MTG appears well positioned to sustain attractive earnings and capital returns in the near term. However, the earnings mix could shift as mortgage-insurance credit conditions gradually normalize.New insurance written (NIW) rose 8.5% year over year to $17.8 billion in the second quarter of 2026, the highest quarterly level since the third quarter of 2022, while insurance in force (IIF) increased 2.6% to $304.8 billion. The growth in NIW and IIF provides MTG with a larger premium-generating base and supports future revenue growth.For MTG, credit normalization refers to a gradual increase in mortgage delinquencies and potential claims as the exceptionally favorable credit performance of recent years moves closer to historical norms. So far, the normalization appears manageable. MTG's primary delinquency rate increased to 2.37% from 2.21% a year earlier, but declined 7 basis points sequentially from 2.44% in the first quarter of 2026. Management expects some seasonal increase in delinquencies in the second half of the year, but current trends do not indicate a material deterioration in credit quality.MTG also benefits from strong cure activity, favorable performance from newer policy vintages and substantial capital resources. The company had $2.7 billion of PMIERs excess as of June 30, 2026, while its reinsurance program reduced PMIERs required assets by approximately 52%. These factors provide a meaningful cushion against higher delinquencies and claims and help support capital flexibility.Overall, MTG should be able to sustain attractive earnings and capital returns as long as credit normalization remains gradual rather than developing into a broader deterioration in mortgage credit quality. Improving NIW, a growing IIF portfolio, disciplined expenses, strong capitalization and reinsurance protection provide a solid foundation. However, investors should expect future earnings to rely increasingly on portfolio growth and recurring operating performance rather than exceptionally favorable loss development. Radian Group’s RDN mortgage-insurance portfolio is exposed to the same gradual normalization in borrower delinquencies and claims, although strong home equity provides an important buffer.Essent Group's ESNT significant portion of its portfolio is entering the period when mortgage-insurance claims are typically highest. Essent expects incurred losses and claims to increase as older books mature. Shares of MTG have gained 11.3% over the past year, outperforming the industry. Image Source: Zacks Investment Research The stock is undervalued compared with its industry. Its forward price-to-book value of 1.27X is lower than the industry average of 2.67X. It carries a Value Score of B. Image Source: Zacks Investment Research The Zacks Consensus Estimate for MTG’s full-year 2026 and 2027 EPS has moved up 6.2% and 4.8%, respectively, in the past 30 days.The consensus estimate for MTG’s 2027 EPS and revenues indicates a year-over-year increase. Image Source: Zacks Investment Research MTG stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MGIC Investment Corporation (MTG) : Free Stock Analysis Report Radian Group Inc. (RDN) : Free Stock Analysis Report Essent Group Ltd. (ESNT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Radian Group’s second quarter results were met with a negative market reaction after both revenue and non-GAAP earnings per share came in below Wall Street’s expectations. Management attributed the robust revenue growth to a full quarter of contributions from the newly acquired specialty insurer Intego, as well as continued strength in the core mortgage insurance business. CEO Richard Thornberry noted that the quarter marked a significant milestone in Radian’s transformation, citing progress in divesting non-core operations and focusing on insurance, but also acknowledged expense pressures linked to annual compensation and the establishment of reserves related to ongoing geopolitical developments. Is now the time to buy RDN? Find out in our full research report (it’s free). Revenue: $580.7 million vs analyst estimates of $581.8 million (90.8% year-on-year growth, in line) Adjusted EPS: $1.14 vs analyst expectations of $1.35 (15.7% miss) Operating Margin: 26%, down from 63.3% in the same quarter last year Market Capitalization: $4.81 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Rowland Mayor (KBW): asked about the impact and duration of Middle East conflict-related losses. CFO Dan Kobell explained the $30 million provision includes both current and potential future claims, adding, “We feel very well reserved as we sit here today, but continue to monitor the situation.” Terry Ma (Barclays): questioned whether the specialty combined ratio could revert to historical levels. Kobell clarified that the low 90s are reflective of current soft market conditions and seasonality, but longer-term ratios could improve if market conditions firm. Mihir Bhatia (Bank of America): inquired if future earnings pressure would stem more from lower margins or lower premium growth. CEO Richard Thornberry said, “We focus on finding economic value, not market share,” highlighting that the team will pull back where returns are unattractive. Graham Bundy (JPMorgan): asked how specialty segment expenses will trend as earned premiums rise in the second half. Kobell said acquisition costs will scale with premiums, but a portion of expenses are stable, keeping expense trends in line with combined ratio guidance. Rowland Mayor (KBW): queried about the potential for increased capital return once debt is repaid. Kobell noted that freed-up capital from reduced leverage would provide flexibility for further buybacks or other strategic uses. In the coming quarters, the StockStory team will closely watch (1) the pace and profitability of Intego’s specialty insurance growth amid softening rates, (2) continued progress on divesting non-core businesses and redeploying capital, and (3) the ability of mortgage insurance to sustain high persistency and capital generation. Additional attention will be paid to how well Radian manages expenses and navigates claims volatility from geopolitical events. Radian Group currently trades at $36.37, down from $39.17 just before the earnings. Is there an opportunity in the stock? The answer lies in our full research report (it’s free for active Edge members). ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies. Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 4:00 p.m. ET VP of Finance - Robert Lally Chief Executive Officer - Richard Thornberry CEO-elect - Mike Weinbach Senior Executive Vice President and Interim Chief Financial Officer - Dan Kobell Operator: Good day, and thank you for standing by. Welcome to the Second Quarter 2026 Radian Group Earnings Conference Call. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Robert Lally, VP of Finance. Please go ahead. Robert Lally: Thank you, and welcome to Radian's Second Quarter 2026 Conference Call. Our press release, which contains Radian's financial results for the quarter, was issued yesterday evening and is posted to the Investors section of our website at radian.com. This press release includes certain non-GAAP measures that may be discussed during today's call, including adjusted pretax operating income, adjusted diluted net operating income per share and adjusted net operating return on equity. A complete description of all our non-GAAP measures may be found in press release Exhibit F and reconciliations to these measures to the most comparable GAAP measures may be found in press release exit. These exhibits are on the Investors section of our website. Today, you will hear from Rick Thornberry, Radian's Chief Executive Officer; Mike Weinbach, Radian's CEO-elect; and Dan Kobell, Senior Executive Vice President and Interim Chief Financial Officer. Before we begin, I'd like to remind you that comments made during this call will include forward-looking statements. These statements are based on current expectations, estimates, projections, and assumptions that are subject to risks and uncertainties, which may cause actual results to differ materially. For more information regarding these risks and uncertainties as well as certain additional risks that Radian faces, you should refer to the risk factors included in our 2025 Form 10-K as well as subsequent reports filed with the SEC. These are also available on our website. Now I would like to turn the call over to Rick. Richard Thornberry: Thank you all for joining us today. Before discussing our second quarter results, I'd like to highlight another important milestone at Radian's strategic transformation. When we announced our agreement to acquire Intego in September last year, we also outlined a clear strategic path forward, transforming Radian from a leading U.S. mortgage insurer into a global multiline specialty insurer, while divesting non-core businesses and becoming a more focused insurance organization. Since then, we have successfully closed the Intego acquisition and integrated the business into our organization and we have taken definitive action to complete the divestitures, including completing the sale of our real estate services business this week, entering into an agreement to sell our title business, and earlier this year, exiting the mortgage conduit business. Together, these actions have sharpened our focus on insurance, expanded our product set, simplified our portfolio, reduce organizational complexity, and delivered on the key strategic actions we outlined less than a year ago. The Radian we are today is meaningfully different from the company that announced that strategy last year. Our mortgage insurance business, which has been the foundation of our company and a significant driver of value creation for stockholders for nearly 50 years, continues to generate strong earnings and capital. Combined with Intego, we are now a stronger, more diversified and more focused organization with 2 complementary correlated insurance businesses, greater capital allocation flexibility, and access to broader growth opportunities across global insurance markets. Most importantly, our team has executed on the commitments we made and position Radian for its next chapter of growth. The second quarter marked our first full quarter with Inigo and another important step for Radian as a global multiline specialty insurer. The financial benefits of this combination are already evident in our results. Total revenues increased 93% year-over-year to $575 million, while net earned premiums increased 116% to $504 million. Our Mortgage Insurance business once again produced strong underlying performance and remains a powerful source of earnings, capital generation and embedded economic value for our company. New insurance written increased year-over-year, reflecting continued strength in purchase activity, combined with the value of our proprietary data and analytics capabilities and our deep customer relationships. Primary insurance in force reached a record $284 billion with persistency remaining strong, supporting the embedded value of our portfolio and future earnings generation. Credit performance continued to reflect the quality of our insured portfolio and our team's unwavering commitment to disciplined underwriting. We are proud of the important role private mortgage insurance plays in the home finance marketplace by helping borrowers responsibly and sustainably achieve homeownership. Turning to our Specialty Insurance business. As I mentioned, this quarter marks our first full reporting period reflecting Inigo's contribution. The specialty insurance business is already contributing meaningfully to the diversification of our revenue and earnings profile. During the quarter, our Specialty segment represented approximately 50% of total revenues and 53% of total net premiums earned during the quarter highlighting the scale and earnings contribution of our new business mix. The strategic value that the combination with Inigo brings to Radian is clear, reinforcing both the benefits and the opportunity ahead. While the underlying specialty insurance portfolio continues to perform well, it is important to acknowledge that market conditions have become more competitive and rates continue to soften. The current rate environment is consistent with the cyclical dynamics we anticipate when underwriting the acquisition. The Inigo team is maintaining their focus on underwriting discipline and rate adequacy while also allocating capital to the most attractive opportunities. Our priority is profitability, not any particular revenue growth target. We believe Inigo's diversified portfolio, strong analytics capabilities, unwavering commitment to strong underwriting and experienced leadership team, position the business well to navigate market cycles and selectively deploy capital to the highest value opportunities. At the enterprise level, our capital position remains a significant and core strength. The earnings power and capital generation capabilities of our businesses provides us with meaningful financial flexibility. During the quarter, we continued to return capital to stockholders through both dividends and share repurchases, while maintaining the financial strength needed to support growth opportunities across the enterprise. As always, we remain focused on prudent capital management and creating long-term value for stockholders. Before I turn the call over to Dan to review our financial results, I would like to invite Mike Weinbach to share a few thoughts. As many of you know, Mike recently joined Radian as CEO-elect and has already spent considerable time engaging with our employees, customers, investors and business leaders across both the mortgage and specialty segments. And I work closely together to execute a seamless transition of leadership. Mike brings significant industry experience, a strong leadership track record and a deep appreciation for the strengths that make Radian and Inigo unique, including the value of our talented and experienced teams. I'm excited about the future of this company under his leadership. Mike? Mike Weinbach: Thanks, Rick. First off, I want to share how excited I am to be a part of Radian, and I want to offer 2 things to Rick. One is my congratulations on all you and the team have accomplished under your leadership. Radian is a transformed company due to your vision, leadership, and execution. The second is my thanks. Having the opportunity to come in as CEO elect on June 1, where I could observe and learn before having to make decisions was a true gift. So thank you. Thank you. Thank you to you and your family who has had to wait a little bit longer for Papa to be a primary job and for my fellow investors, I'll expand a little more on why I'm so excited to be here. Radian Group, and I fully include Inigo when I say this, has great people, a great culture and great platforms. We have a leading mortgage insurance business led by a team with decades of experience combined with an excitement about asking how we can make the business even better. We have a leading specialty insurance business, which is stocked with experienced insurance experts who came together to build something new and better than what they had experienced at their prior organizations. We're still early in that journey and the progress the team has made gives me great confidence in what lies ahead. I'm still learning and plan to take advantage of every minute I have with Rick while in this role, and when he continues as a strategic adviser to me and the Board and to the future. But I'll go back to where I started. I'm excited, and you should be too about all the possibilities ahead for Radian and the talent we have to realize them. Rick, back to you. Richard Thornberry: Thank you, Mike. The team and I are thrilled to have you on board and as my tenure comes to an end, I look forward to what is ahead, and I'm confident in the future of Radian in your hands. With that, I will turn the call over to Dan to review our financial results in more detail. Dan Kobell: Thank you, Rick. I'm pleased to provide additional details about our second quarter results. On a GAAP basis, which includes the impact of certain onetime costs related to the Inigo transaction as well as noncash amortization and purchase accounting adjustments, we generated net income from continuing operations of $0.87 per share with a return on equity of 10%. Adjusted net operating earnings per share grew year-over-year to $1.14 and adjusted net operating return on equity was 13% this quarter. Our operating results reflect continued strong underwriting performance across both our Mortgage and Specialty segments, continued growth in investment income and disciplined capital management. The results also include the expected seasonal expense associated with our annual share-based incentive compensation plans as well as the establishment of reserves in our specialty segment to reflect ongoing developments in the Middle East. On a year-to-date basis, our adjusted net operating earnings per share has increased 12% compared to the prior year as we continue to see immediate financial benefits from the Inigo acquisition. We grew book value per share 8.5% year-over-year to $36. We also returned dividends to our stockholders over the past year that were equivalent to an additional 3% of book value. On a consolidated basis, our total revenues grew 93% year-over-year to $575 million, primarily driven by the revenue contribution from our specialty segment. Our net premiums earned are not well balanced across our segments, with our Specialty segment accounting for 53% of second quarter net premiums earned. Our total investment portfolio of $7.1 billion consists of well diversified and highly rated securities. At an enterprise level, we generated $75 million of net investment income this quarter, an increase of 21% from a year ago, primarily driven by growth in balances. Our investment portfolio has continued to be an important contributor to our earnings and the addition of Inigo's investment portfolio further enhances this strength. Turning now to the key drivers of our segment results, beginning with our mortgage segment. New insurance written was $16.3 billion in the quarter, an increase of 14% year-over-year. Persistency also remained strong in the quarter, increasing to 82%. Our large, high-quality mortgage insurance in-force portfolio grew 3% year-over-year to an all-time high of $284 billion. As of the end of the second quarter, approximately half of our insurance in force portfolio at a mortgage rate of 5.5% or lower. Given current mortgage interest rates, these policies are less likely to cancel due to refinancing in the near term. Our in-force premium yield was stable this quarter as we continue to generate consistent premiums from our valuable mortgage insurance portfolio. Our mortgage provision for losses and related credit trends continue to be positive with strong cure activity and low claim levels. We reported approximately 12,400 new defaults in the quarter, a decline of 9% from the prior quarter. Cures once again exceeded new defaults this quarter, reducing our portfolio default rate to 2.47%. Our cure trends have also been consistently positive, meaningfully exceeding our initial default to claim expectations. This quarter, these favorable cure trends drove $20 million of favorable development from prior period defaults. Consistent with prior years, our second quarter operating expenses in both our mortgage segment and corporate area reflect the timing impact of our share-based compensation plans. This expected seasonal item is the primary driver of the increase in expense in these areas compared to the first quarter of 2026. Importantly, underlying expense performance remained strong, with mortgage segment operating expenses declining 7% year-over-year and the mortgage segment expense ratio improving to 23% from 25% a year ago. Now turning to our Specialty segment. Net premiums earned were $267 million, an increase of 9% year-over-year. In our specialty business, we continue to target opportunities to write attractive business across a range of insurance and reinsurance lines. As the environment has become more competitive, particularly in property insurance and reinsurance, the team remains thoughtful and disciplined in its underwriting approach, focusing on maintaining sound underwriting margins to drive profitability. It is important to note that Specialty segment tends to exhibit meaningful seasonality and how premium revenue is recognized during the year. Earned premiums in the second half of the year are typically higher than in the first half. As shown in the Inigo quarterly results for 2025 included in press release Exhibit J. As a result, we anticipate second half earned premiums in 2026 to be approximately 20% higher than in the first half of the year. Operating expenses in our Specialty segment were $39 million this quarter, in line with the full-prior quarter. As noted at our recent Investor Day, Inigo's business was intentionally built with a simple and scalable operating model, supporting our ability to maintain an appropriate expense ratio through a softening market cycle. Total loss provision within the Specialty segment was $169 million, which included $24 million of favorable net development for prior period reserves primarily seen in property lines of business. We are pleased that the acquired reserve portfolio has developed more favorably than expected since the acquisition. Consistent with our thoughtful approach to establishing reserves, particularly in cases with significant uncertainty, we've set reserves this quarter to reflect the ongoing developments in the Middle East. These reserves reflect both the expected and potential claims related to the ongoing conflict as well as updated inflation assumptions across our full insured portfolio given the related macroeconomic uncertainty and potential inflationary pressures associated with the conflict. Our Specialty segment net combined ratio, which includes the impact of these reserves, was 98% for the second quarter. As we noted previously, we expect variability in our Specialty segment combined ratio all time and the impact on second quarter ratios from the Middle East reserving is elevated given the seasonally lower premiums in the first half of the year, as I noted earlier. Over the first half of 2026, the specialty combined ratio was 93%, which is elevated due to the reserving for the Middle East developments as noted. Absent this item, the combined ratio in the first half of the year would be in the high 80s, which is consistent with our expectations heading into the year. As the market continues to soften, we expect to see generally lower underwriting margins in our Specialty business which will gradually earn through to our reported results over time. As a result, a combined ratio in the low 90s is more reflective of the current operating environment. As noted, the reported combined ratio in any specific period will be subject to some volatility due to market events. Additional details regarding our segments are available in press release Exhibit E. Moving to our capital available liquidity and related strategic actions. Rating Guaranty's financial position remains strong. In the second quarter, Rating Guaranty paid a $200 million dividend to Radian Group, our PMIERs cushion was $1.5 billion, significantly above the required PMIERs capital level. This capital buffer, combined with our current reinsurance programs, positions Rating Guarantee well to withstand and remain well capitalized through a potential severe macroeconomic stress. Our Specialty segment also remains well capitalized and continues to maintain a strong position relative to its regulatory capital requirements. During the second quarter, our holding company received $19 million in distributions from our entities that were held for sale. Since we announced our divestiture plan last year, we have returned $127 million of capital from our entities held for sale to our holding company providing immediate liquidity and reducing the carrying value of those entities to $35 million as of the end of the second quarter. As we announced this week, we have completed the sale of our real estate services business in the third quarter and entered into a definitive agreement to sell our title services business. While we have not disclosed terms of the transactions, we do not expect the total net asset value return to our holding company as we complete the divestiture process to be materially different than the carrying value of these businesses as of the second quarter. As we approach the end of our divestiture plan, we are pleased with both the total value realized and the time to complete the process, both of which are in line with our initial expectations. As we move forward and continue to execute on our multiline insurance strategy, our robust capital generation profile and balance sheet strength continue to provide us with significant financial flexibility. Our actions in the second quarter reflect our disciplined approach to capital management as we continue to return significant capital to stockholders while reducing our debt and growing our liquidity position. In the second quarter, we repurchased $76 million of our common stock or 2.2 million shares. In the third quarter to date, we have purchased an additional $50 million shares bringing the total year-to-date purchase amount to $176 million or 5 million shares. We continue to believe that share repurchase provides an efficient and accretive way to return excess capital to stockholders, particularly as the shares trade significantly below our view of their intrinsic value. During the second quarter, Radian Group also paid a quarterly dividend to stockholders totaling $37 million. We also repaid $75 million of the draw on our revolving credit facility, reducing our holding company leverage ratio to 19%. As of quarter end, we had $75 million outstanding on our credit facility draw, which we expect to repay during 2026. Net of these actions, holding company liquidity at quarter end increased to $412 million. We have increased our previous guidance for expected dividends from Rating Guarantee to Radian Group and now expect at least $650 million of total dividends during 2026, including the $340 million paid through the first half of the year. I will now turn the call back over to Rick. Richard Thornberry: Thank you, Dan. Before we open the line for questions, let me summarize a few key takeaways from the quarter. First, our mortgage insurance business continues to be a source of strength across the enterprise, supported by high-quality risk selection, strong underwriting, favorable portfolio performance and meaningful capital generation. . Second, Inigo completed its first full quarter as part of Radian and continues to reinforce the strategic benefits of our transformation into a global multiline specialty insurer. Third, we remain focused on disciplined execution managing capital thoughtfully by allocating resources to attractive opportunities. And finally, I would like to acknowledge our employees across the company, their dedication, expertise and commitment to our customers are at the heart of our success. While we are still early in the next chapter for Radian, we are encouraged by the momentum across the organization and excited about the opportunities ahead. With that, operator, we are ready to take questions. Rowland Mayor: I wanted to quickly start on the Middle East loss. I think based on your high 80s combined ratio comment, it was about $20 million. Could you maybe help me understand if that was a few large claims or a higher volume of small medium claims if we should expect ongoing pressures from that work? Dan Kobell: Yes. Thanks, Rowland, for the question. So as I noted earlier, the combined ratio was 98% in the second quarter. So that included the reserving related to the Middle East, and that's both for the expected and potential claims related to the conflict itself as well as our updated inflation estimates given the potential for some additional inflationary pressure resulting from the contract. So I'd say the total of all those items in the second quarter was around $30 million, a bit higher than the number you provided. And again, that's inclusive of all of that for the Middle East. Excluding that, the combined ratio would have been generally in the mid- to high 80s. So consistent with where it was in the first quarter and generally, again, consistent with what we would have expected heading into the year. As far as the balance of the year, obviously, we feel like we're very well reserved as we sit here today continue to actively monitor the situation, but feel pretty good about where we sit relative to the reserves and what we know about the conflict at this point. Rowland Mayor: Okay. That's helpful. And then several P&C insurers are thing a spreading of competition beyond property lines. I was wondering if you could help me with the specialty growth in the quarter and whether you're seeing softening in casualty? Richard Thornberry: I think Ron, this is Rick. Thank you for the question. We -- I think it's -- clearly, we're seeing the market continue to soften across the specialty and reinsurance business. I think -- and this is all part of what we anticipated as part of the acquisition, so these kind of changing market cycles. For us, the team won't really respond to any kind of specific opportunities that we're seeing. But the teams remain very disciplined in how they go about kind of defining those opportunities. I think the team is well positioned to go through it. And we've been -- continue to be very impressed by the experience and the approach and that discipline that the teams opine across the process. So -- we're here to write profitable business to be selective where we can across the wide range of products that we focus on. And I think when you think about the strategy here, it remains unchanged, and it's pretty straightforward. We won't sacrifice pricing or terms or expected returns to maintain kind of premium volume. So I think when you look year-over-year, the team has seen the opportunity to grow, continues to see attractive rate adequacy across the variety of products, continues to work closely with our customers find those opportunities and kind of right risk where we continue to see value in that. And so I think the summary of all that is that we continue to see opportunities in the market. We're being very selective, leveraging our analytics remaining strongly committed to underwriting this business. One thing I would just highlight because I think it's important to note that I think the market has moved and is going to continue to move to where underwriting discipline matters more than ever. And I think as we worked with the team, one thing that we've seen is the hard market rewarded participation, so you could be in a market and feel good about it because premiums got to such a level. But the next stage of the cycle is going to reward those who remain disciplined and allocate capital selectively and consistently prioritize margin over volume, which is what we plan to do and what the team has done since the beginning -- as the market evolves, I think our underwriting discipline positions us well. And I think that's the strength and kind of opportunities as we go forward. So the team is continuing to find opportunities across variety of classes of products, and we're going to continue to look for those opportunities as we go forward. Rowland Mayor: Rick, that was super helpful. And just 1 more quick numbers 1 out of me, and I'll jump back in the queue. But you gave a guide on the specialty earned premium for the second half of the year. Does that 20% increase include the January growth that was not part of your consolidated results? . Dan Kobell: Good question, Rowland. And the answer is yes, it does. So if you take the full 6 months of the first half of the year, and we provided that in 2 different places in our press release, think that full 6 months as a baseline is 20% on that number is what we'd expect for the second half of the year. Richard Thornberry: Thank you,[indiscernible] , for that helpful clarification. I appreciate that. Terry Ma: Maybe just starting out with specialty. I think I heard you say a combined ratio of low 90s is more reflective of the current environment. Maybe just expand on that. And then longer term, should we expect the combined ratio to migrate back to the high 80s? Dan Kobell: Yes. Thanks, Terry, for the question. So in terms of the combined ratio, so I mentioned in my prepared remarks, we'd expect to see kind of the business where we're writing business where we see the market today, kind of expected combined ratios in the [indiscernible] 90's. I think that's coming after several really strong years of performance. And so it's kind of the impact of the expected softening that we've seen across the market. And so we kind of see -- if you look back at the results we provided for Inigo's business over their history, it's kind of been more mid-80s, trended to high 80s, and now you're kind of seeing that into the low 90s. And again, that's just part of the normal cycle that we'd expect and what we anticipated, as Rick mentioned, when we made the acquisition. So I think that's, again, consistent with our expectations as we sit here today. Again, just pairing that guidance with a reminder of the seasonality from a revenue perspective that we'd expect to see the second half of the year premiums, again, 20% higher than the first half of the year. So just want to make sure you kind of take both of those factors into consideration when you think about the near-term kind of underwriting projections for that business. And again, combined ratio, obviously, is going to be subject to some volatility from quarter-to-quarter just based on market effects. Richard Thornberry: Yes. And I would just -- I think -- as you think about this business going forward across a variety of different cycles, going back to what I kind of said just a few minutes ago, the discipline from an underwriting and value kind of focus from a probability and rate adequacy point of view through those cycles is important. And so over the long -- you can look at this business over the long term in terms of kind of long-term combined ratios with some volatility through it. The one thing that we feel very confident in is our team's ability to kind of navigate those cycles effectively. And again, the fine value kind of from a performance point of view, to kind of navigate through those cycles. So I feel very confident in that. And I think what we're doing is just trying to provide some view of kind of where we are in the cycle at this point and how the team is navigating it. Terry Ma: Got it. That's helpful. And then maybe just switching gears, talking about credit for [indiscernible] just any color on the cure rate trends that you're seeing, Slide 16 that you guys have in your deck still show pretty favorable trends overall like cross vintages. Do you expect that to continue as you get more of the recent vintages start to be? Dan Kobell: Yes. Thanks, a for the question. So I think when you look at that slide, again, as you can -- as you noted, you can see that cure development has continued to be very strong and very positive over time. I think when you look at that, that schedule covers multiple years -- and as a result, it kind of already reflects a little bit of newer vintages working their way through in the portfolio. And I think around that, you can probably see on the margins a little bit of a change in terms of some of that care development path from quarter-to-quarter. But broadly, we continue to see that very strong and certainly favorable to our reserving assumptions. So again, we effectively reserving to a 92.5% cure rate and we're getting to that level and beyond pretty consistently across all of those default cohorts. So we continue to see very strong activity even as kind of the newer business kind of works its way into the portfolio. And generally, from a credit perspective, we don't see any pockets of concern when we look at it at a credit metric level, kind of from a geography perspective or across vintages we continue to see everything play out in line with or better than our expectations when we price the business. Mihir Bhatia: I wanted to start on the specialty insurance piece, maybe just I guess, you continue to describe the rate conditions as softening. You also suggest the low 19s combined rate surety. Can you just help us understand where the pressure is great is today and whether your expectation is for future earnings pressure to come from lower margins or just lower premium growth? . Richard Thornberry: Yes. Thank you, Mihir. It's a great question. I think, look, as we sit here today year-over-year, I think we -- our net earned premiums were 9% up year-over-year. So that's indicative of the team continuing to find opportunities on in a competitive market. That's the one benchmark, I think I would kind of highlight for you as we go forward and Dan can comment on this as well, too. As we think about the combined ratio, we're really -- we're looking at the remainder of the year. And as Dan highlighted in his comments and then his response was a bit ago, we seasonality on a revenue basis generally leans towards the third and fourth quarter to be higher than the first half of the year. I think Dan's number was 20%. When you think about writing the business at technically lower margins than previous years from a rate perspective, but still an attractive rate adequacy and pricing and returns on capital. We would expect the combined ratio to migrate up. Beyond that, we're not really giving any guidance, but I think we're in a softening market. We anticipated that as part of our M&A transaction and kind of our analysis of kind of a through-cycle view of the business. And I have to just complement the team, again, as we've worked with them closely over the last year, one of the things that we liked about the business was the experience of the team and their ability to kind of adjust and navigate through cycles and find value. If you think about what's like our MI business, we're in our MI business, we don't focus on market share, particular growth targets, we focus on finding economic value. The specialty business, Inigo business focus is very similar in the sense of really looking to find those opportunities across markets, both in parting markets and soft markets where the returns are most attractive. And I think they continue to demonstrate that I'm very proud of how the team has shown that resiliency through this year, navigating it again. But I think it's kind of reflecting back on Dan's comments, I think we feel like the business is in a good position and create some transparency around that. Mihir Bhatia: Got it. And Rick, congratulations on your upcoming retirement, I guess, and Mike congratulations again on the appointment of CEO. If I could ask your question, Mike. Just after spending the last 2 months at the company, maybe talk a little bit about the biggest thing you've learned that was maybe a little different from your perception before you were on the inside as it were? What's been new, different, maybe some of the learnings you've had so far? Mike Weinbach: Yes. Thanks, Mihir, for the question. And the one thing I'll start with, which wasn't a huge surprise that from the outside looking in, I saw a company with really good people, good culture, good platforms, and it totally lives up to billing. Again, I said this at Investor Day, I kind of upgraded it. It really is great people, great culture, great platforms. And I'm excited as I look to the future because and Rick talked about this a little bit upfront. But if you just think about where Radian is the Radian that is going to be entering 2027 is going to look very different than the Radian that entered 2026. It's a year of transformation transition with me and Rick, the acquisition of Inigo, the sale of our non-core businesses, but we have a company where the revenues will have effectively doubled from where they were coming into the year, the revenue generation capability with double-digit accretion to EPS and maybe more importantly, a simpler and more focused company, the 2 core insurance businesses, MI and specialty insurance that are not correlated, but have at the heart, the use of data and analytics to outperform the market. And the company is going to continue to generate excess capital, and we're going to have a lot of opportunities to deploy it. So were there surprises, I don't know that there were any surprises, there's certainly been a lot of learnings. So I'd say, as I've gotten a closer look at the MI business, it's a business that's performing I really do understand the strength in the way we deploy data, analytics and risk management capabilities and feel really great about the way we're participating in the market. But that also doesn't mean we're satisfied. We recognize we have opportunities to be more efficient. There's opportunities to take advantage of emerging AI technologies to be faster and obviously take our data and analytics to an even higher level. And at Inigo, and of course, had the opportunity to spend time with the team in London and spend time talking to brokers and customers and others in the market and I see this and I sort of get the validation from the marketplace, this is a really experienced team that's managed through different cycles and is built to focus on finding opportunities to deploy capital for strong risk-adjusted returns. It is -- we look at turns over growth -- we do this across 17 different lines that we write today, and we think there's still room for growth. So and just a little bit of reiterating some of the points that Rick and Dan have made. But we don't have to grow like we'll pull back in a softening market where we don't see the returns, but we're going to continue to lean into areas where we believe pricing remains adequate and where our underwriting expertise provides a competitive advantage. We still see opportunities to grow to new lines and have new partnerships in other areas to drive growth. So maybe a little bit of a longer answer than you were looking for, but I appreciate the question and remain extremely excited about. Richard Thornberry: Yes. Mihir, thank you for the all wishes. I appreciate that. But I want to tell you as a shareholder in this business, I'm excited about the future with Mike and I've had the chance to work together. We've built each other for a long time. But we had a chance to work together with the team over the last 2-plus months, I think the transition has been seamless and positive and I think really kind of sets the company up for the future. So I'm excited about it. As a fellow shareholder, I think is something you come spike. So thank you for the question. Graham Bundy: This is Graham Bundy on for Bose. You all touched on just earned premiums growing 20%. And in the second half there. Could you help me understand how expenses are the trends there are staying relatively flat? Dan Kobell: Yes. Thanks, Graham, for the question. Are you referring to expenses in the Specialty segment? . Graham Bundy: Yes. Dan Kobell: Yes. So in terms of the expenses there, there's a component that's related to acquisition costs that will fluctuate more directly with earned premium. So you'll see a change there. And that's probably that combined ratio guidance that I provided earlier and then there's a portion that's a little bit more fixed quarter-to-quarter and that we'd expect to be generally more stable. There's going to be some investments there for growth, obviously. But I would say the expense trend is all part of the combined ratio guidance that we provided of the low 90s for the second half of the year. Graham Bundy: Awesome. Very helpful. And then jumping to repurchases here. Could you guys just help us from a modeling perspective, what we should be expecting in the second half? I know with the Inigo acquisition in the first half, originally, you all thought it would pause a bit, but then with good opportunity there, you guys pegged right back up. So what can we expect in the second half year? Dan Kobell: Yes, sure. And so we were definitely pleased to restart the share repurchase program when we did very quickly after the nickel acquisition closed effectively in the first quarter of this year. And so we're very pleased with the repurchase that we've done to date. As we sit here, we're -- we're at $176 million of share repurchase to date for 2026. I did provide guidance last quarter that we'd expect a range for the full year of between $200 million to $250 million. And so we're tracking very well, obviously, against that range. As we sit here today, based on the activity and what we've done so far, I would expect us to be more towards the upper end of that $200 million to $250 million range. Of course, that is subject to market conditions and what happens between now and the end of the year, but that's a pretty good feel for where we'd expect to finish 2026 in terms of share repurchase. Richard Thornberry: And I would just add to Dan's comment that if you look at our track record over the last several years is our discipline around allocating capital, whether it's our dividend, whether it's our share buybacks not to mention a major acquisition, which we did within our whole balance sheet, which you see the accretive nature of that transaction. This quarter really kind of the revenue growth, earnings contribution opportunity ahead and the opportunity, as Dan highlighted, to accelerate our share buybacks this year, the debt repayment. We've been de-leveraging over the last year or 2 years, I guess. So it's been -- we've been very active capital managers. I know under Mike's watch going forward, that is a key part of his thesis as well. And so I think you'll continue to see us take advantage of our capital resources in the most attractive way. Dan Kobell: Yes. And the 1 piece I'll just add on to what Rick said, too, is what's given us a lot of the confidence and the ability to kind of execute on those capital management initiatives has been the visibility that we have into the dividends that are coming up for rent guarantee. So we -- at the beginning of the year, we noted that we expect $600 million or more of dividends coming up. We've just updated that to now $650 million or more for the full year 2026. And again, that increase is reflective of continued strong performance of the underlying mortgage business. The earnings of the mortgage business is effectively what drives that dividend capacity. So we continue to see that trend very well for us. Rowland Mayor: I wanted to just quickly go off that buyback question. Could you maybe walk through the remaining liquidity draws with the revolver and debt? And then once those are completed, so we assume that the capital, there's a lot more free capital available for buybacks? Dan Kobell: Yes. Thanks, Ron, for the question. So as we sit at the end of the second quarter, we had a $75 million balance on the draw that we took on the revolver. So again, our expectation is and has been throughout the year that we'd expect to pay that down by the end of 2026. As far as the debt maturity that we have coming up in 20 -- in the first quarter of 2027, we noted in the past, currently, our expectation is that we would look to refinance that. . We'll certainly evaluate that as we get closer and we have the flexibility to kind of interest that in different ways, but expectation is that we would refinance that at a similar size to what exists today. So I think your question is correct in the sense that in the world where we're not paying down a credit facility draw, and we continue to have a similar level of dividends coming up from Radian Guaranty that would create additional flexibility for us from a capital management perspective. And again, that goes back to the regular waterfall that we have, which I talked about at our Investor Day in terms of making sure we're supporting the organic growth of our businesses and then looking at other options, whether it's delevering accretive M&A or potentially returning capital to stockholders, and we do that today through both the quarterly dividend and then opportunistic share repurchase. Rowland Mayor: And then just 1 more and then I promise I'm done. I want to make sure I didn't mishear the Middle East commentary. That $30 million provision you took in 2Q includes IBNR for potential future events. Or should we expect ongoing losses as the count continues? Dan Kobell: Yes. So I would say that's a fully loaded number that it includes what we what we expect and potential claims related to the conflict based on what we knew as of the end of the second quarter. And along with the related item, which is the inflation adjustment based on the potential pressures that the conflict might have created. . Richard Thornberry: Thank you. Appreciate that. And once again, thank you to everybody for joining us today. Before we conclude, I'd like to thank our employees across Radian and its businesses. Throughout my time as CEO, I have been continually impressed by the talent, dedication and professionalism of the teams. -- their commitment to serving our customers and delivering for our stockholders is what has made our success possible. I'd also like to thank our customers, business partners, and stockholders for their trust and support they have placed in us over the years. . As I reflect on my time leading this company, I'm incredibly proud of what we've accomplished together. We have built a stronger, more diversified organization, create a platform for the future growth and position Radian for long-term success. Most importantly, with Mike's leadership and exceptional leadership team, outstanding employees and a clear strategy, I'm excited and confident in the future of this company. It's been a privilege to serve our CEO, thank you for your support, and thank you for the opportunity to be part of this remarkable team and company. Thank you. Operator: This concludes today's conference call. Thank you for participating, and you may now disconnect. Before you buy stock in Radian Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Radian Group wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $403,337!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,334,946!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 13, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Radian (RDN) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE. Radian Group (RDN) has drawn fresh attention after a busy stretch of news, including strong second quarter results, further share repurchases, a new shelf registration and a board appointment tied to payments and data expertise. See our latest analysis for Radian Group. After these updates, Radian Group’s recent 7 day share price return declined 7.1%. However, the year to date share price return of 1.61% and 1 year total shareholder return of 9.98% indicate that longer term momentum has been steadier than the latest pullback. If you want to see how other financial stocks are responding to earnings and capital moves, it can help to broaden your search with the 19 top founder-led companies Bulls point to Radian Group’s revenue growth, buybacks and mortgage insurance exposure, while bears focus on the recent price pullback and lower quarterly earnings. Which side does the valuation math look closer to right now? On simple earnings terms, Radian Group trades on a P/E of 8.6x, which points to a lower valuation compared with its peers at the current $36.50 share price. The P/E ratio compares the share price with earnings per share. For a mortgage insurance and diversified financial company like Radian Group, it gives a quick read on how the market is pricing each dollar of current earnings. Here, several factors stand out. Radian Group is flagged as good value based on this 8.6x P/E when set against both the US Diversified Financial industry average of 16.9x and a peer group average of 9x. It is also described as trading at good value compared to peers and industry overall. In addition, the estimated fair P/E for the company is 13.3x, which is above its current level, with some observers noting that this is a level the market could move towards if sentiment around its earnings profile and mortgage insurance exposure changed. The gap is even wider when looking at cash flow based valuation. The SWS DCF model estimates a future cash flow value of $112.63 per share versus the current $36.50, and the shares are also described as trading at 67.6% below an internal fair value estimate. That combination indicates that the current P/E discount is not only relative to peers but also to what the DCF work suggests for the business. Explore the SWS fair ratio for Radian Group Result: Price-to-Earnings of 8.6x (UNDERVALUED) However, Radian Group’s lower recent quarterly earnings and the stock’s 7 day share price decline of 7.1% could challenge the current value argument if these trends persist. Find out about the key risks to this Radian Group narrative. The SWS DCF model paints an even stronger value case for Radian Group. It suggests a future cash flow value of $112.63 per share versus the current $36.50 price, which implies a very wide valuation gap. Does this signal mispricing or just higher risk than the earnings multiple implies? Look into how the SWS DCF model arrives at its fair value. Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Radian Group for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 51 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity. Given the mix of optimism and concern around Radian Group’s valuation, now is a good time to review the full picture for yourself. To weigh the potential upsides against the key issues that investors are watching, start by checking the 4 key rewards and 1 important warning sign. If you only stop at Radian Group, you may miss other stocks that better match your goals. Use the Simply Wall Street Screener to compare ideas side by side. Target potential value opportunities by scanning companies that line up with the 51 high quality undervalued stocks. Strengthen your focus on financial resilience by using the solid balance sheet and fundamentals stocks screener (48 results) to narrow in on sturdier balance sheets. Spot less followed opportunities by running the screener containing 21 high quality undiscovered gems and seeing which stocks stand out on fundamentals. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include RDN. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in Radian Group Inc.? Here are five stocks we like better. Strong second-quarter growth: Revenue increased 93% year over year to $575 million, while adjusted net operating earnings reached $1.14 per share. Results included Radian’s first full quarter with specialty insurer Inigo. Mortgage insurance remained resilient: New insurance written rose 14% to $16.3 billion, insurance in force reached a record $284 billion, and the portfolio default rate improved to 2.47% as cures exceeded new defaults. Specialty market pressures tempered outlook: The specialty segment posted a 98% combined ratio, including about $30 million in Middle East-related reserves. Management expects softer pricing to push underlying combined ratios toward the low 90% range, while continuing share repurchases and targeting at least $650 million in 2026 dividends from Radian Guaranty. 3 Undervalued Dividend Payers For Volatile Market Conditions Radian Group (NYSE:RDN) reported second-quarter results that reflected its first full quarter including specialty insurer Inigo, while executives emphasized continued strength in mortgage insurance, progress on divestitures and disciplined capital deployment amid a softer specialty insurance market. Total revenue rose 93% year over year to $575 million, while net earned premiums increased 116% to $504 million. The company reported GAAP net income from continuing operations of $0.87 per share and a 10% return on equity. Adjusted net operating earnings were $1.14 per share, with an adjusted net operating return on equity of 13%. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling Senior Executive Vice President and Interim Chief Financial Officer Dan Kobell said results included one-time costs associated with the Inigo transaction, non-cash amortization and purchase-accounting adjustments. They also reflected seasonal share-based compensation expenses and reserves established in the specialty business related to developments in the Middle East. Chief Executive Officer Rick Thornberry said Radian has advanced the strategic plan announced alongside its agreement to acquire Inigo, which was intended to transform the company from a primarily U.S. mortgage insurer into a global multiline specialty insurer. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High The company has completed the Inigo acquisition, exited its mortgage conduit business, completed the sale of its real estate services business and entered an agreement to sell its title business. Radian said the actions have narrowed its focus to insurance, expanded its products and reduced organizational complexity. Inigo represented approximately 50% of consolidated revenue and 53% of total net premiums earned during the quarter, according to Thornberry. Specialty segment net premiums earned totaled $267 million, up 9% year over year. → No Hangover: Revisiting Microsoft One Week After Earnings Management said specialty market conditions have become more competitive, particularly in property insurance and reinsurance, with rates continuing to soften. Thornberry said the company would prioritize profitability, rate adequacy and returns over premium volume. “We won't sacrifice pricing or terms or expected returns to maintain premium volume,” Thornberry said during the call. Kobell said Radian expects specialty earned premiums in the second half of 2026 to be about 20% higher than in the first half because of the business’s typical revenue seasonality. He said the guidance includes Inigo’s January results, which were not part of Radian’s consolidated reporting following the acquisition timing. The specialty segment reported a 98% net combined ratio in the second quarter. Total loss provision was $169 million, including $24 million of favorable development from prior-period reserves, primarily in property lines. However, Radian also established approximately $30 million of reserves related to Middle East developments. Kobell said the figure included expected and potential conflict-related claims as well as updated inflation assumptions across the insured portfolio due to possible macroeconomic and inflation pressures tied to the conflict. Excluding that reserving, the second-quarter specialty combined ratio would have been in the mid-to-high 80% range, Kobell said. For the first half, the specialty combined ratio was 93%; absent the Middle East-related item, it would have been in the high 80s. Looking ahead, management said a combined ratio in the low 90% range is more representative of current specialty underwriting conditions as lower margins from softening prices gradually earn through results. Kobell added that quarterly combined ratios could be volatile because of market events. Radian said it believes it is well reserved based on information available at the end of the quarter, while continuing to monitor the Middle East situation. Radian’s mortgage insurance segment wrote $16.3 billion of new insurance during the quarter, an increase of 14% from a year earlier. Primary insurance in force rose 3% year over year to a record $284 billion, while persistency increased to 82%. Approximately half of the insurance-in-force portfolio carried mortgage rates of 5.5% or lower at quarter-end, which management said makes those policies less likely to cancel through refinancing under current interest-rate conditions. Credit trends remained favorable. New defaults declined 9% sequentially to about 12,400, while cures exceeded new defaults, reducing the portfolio default rate to 2.47%. Favorable cure trends resulted in $20 million of favorable development from prior-period defaults. Kobell said the company was effectively reserving to a 92.5% cure rate and has consistently achieved that level or better across default cohorts. He said management did not see areas of concern by credit metric, geography or vintage. Mortgage segment operating expenses declined 7% year over year, and the segment expense ratio improved to 23% from 25% a year earlier. Radian Guaranty paid a $200 million dividend to the parent company during the quarter, and Radian increased its 2026 expectation for dividends from Radian Guaranty to at least $650 million, including $340 million already paid in the first half. The company’s PMIERs cushion stood at $1.5 billion above required capital levels. Holding-company liquidity increased to $412 million at quarter-end after Radian repurchased $76 million of stock, paid $37 million in quarterly dividends and repaid $75 million of borrowings under its revolving credit facility. Radian repurchased another $50 million of shares early in the third quarter, bringing year-to-date repurchases to $176 million, or 5 million shares. Kobell said the company now expects to finish 2026 nearer the upper end of its prior $200 million to $250 million repurchase range, subject to market conditions. Radian had $75 million remaining on its revolving credit facility at quarter-end and expects to repay that balance during 2026. The company said it expects to evaluate refinancing debt maturing in the first quarter of 2027, with its current expectation being a refinancing at a similar size. CEO-Elect Mike Weinbach, who joined Radian on June 1, said the company’s two core insurance businesses are uncorrelated and share a focus on using data, analytics and risk management to outperform. He said Radian sees opportunities to improve efficiency, use emerging artificial intelligence technologies and selectively grow in specialty lines where pricing and underwriting conditions remain attractive. Thornberry, whose tenure as CEO is ending, said he will continue as a strategic adviser to Weinbach and the board. Radian Group Inc (NYSE:RDN) is a leading provider of private mortgage insurance and related risk management solutions in the United States. Through its primary subsidiary, Radian Guaranty Inc, the company underwrites borrower-paid and lender-paid mortgage insurance that protects lenders and investors from potential losses arising from borrower defaults. Radian's core business focuses on supporting residential mortgage originations and servicing by offering capital-efficient credit protection and credit risk transfer strategies. Beyond mortgage insurance, Radian offers an array of real estate transaction services under its Radian Title division. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Radian Group Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Successfully transitioned from a U.S. mortgage insurer to a global multiline specialty insurer by integrating Inigo and completing divestitures of real estate, title, and mortgage conduit businesses. The Specialty segment now represents approximately 50% of total revenues and 53% of net premiums earned, significantly diversifying the company's earnings profile. Mortgage Insurance performance remains robust, with primary insurance in force reaching a record $284 billion and persistency staying strong at 82%. Management attributes the 93% year-over-year revenue growth primarily to the first full quarter of Inigo's contribution and continued strength in purchase activity within the mortgage segment. Operational focus has shifted toward underwriting discipline over volume, particularly as specialty market rates soften and competition increases in property and casualty lines. Credit performance in the mortgage portfolio continues to exceed expectations, with cure trends driving $20 million of favorable development from prior period defaults. Management anticipates second-half 2026 earned premiums in the Specialty segment will be approximately 20% higher than the first half due to historical seasonality. The Specialty segment's combined ratio is expected to settle in the low 90s, reflecting a softening market cycle and lower underwriting margins compared to previous years. Guidance for 2026 dividends from Radian Guaranty to the holding company has been increased to at least $650 million, up from the previous $600 million estimate. The company expects to repay the remaining $75 million draw on its revolving credit facility by the end of 2026 and intends to refinance its 2027 debt maturity. Full-year 2026 share repurchases are projected to reach the upper end of the $200 million to $250 million range, depending on market conditions. Established a $30 million reserve in the Specialty segment to account for expected and potential claims related to Middle East conflicts and associated inflationary pressures. Reported $24 million of favorable net development in the Specialty segment's prior period reserves, primarily within property lines of business. Second-quarter operating expenses were impacted by expected seasonal costs associated with annual share-based incentive compensation plans. The sale of the real estate services business was completed in Q3, with the title business sale pending; total net asset value return is expected to align with current carrying values. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. The $30 million provision is a 'fully loaded' number including IBNR for potential future events and updated inflation assumptions based on what was known at quarter-end. Management believes the business is currently well-reserved against the conflict and continues to monitor the situation actively. Management emphasized that they will not sacrifice pricing, terms, or expected returns to maintain premium volume as the market cycle evolves. The strategy prioritizes margin over volume, with the team prepared to pull back in areas where returns do not meet adequacy standards while leaning into 17 different lines where pricing remains attractive. Current reserves assume a 92.5% cure rate, but actual performance has consistently exceeded this level across multiple default cohorts. Management sees no specific pockets of concern regarding geography or vintage, noting that approximately half of the insurance in force has a mortgage rate of 5.5% or lower, reducing cancellation risk.