NYSE$RDN

Radian Group Inc · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

Radian reported a strong fourth quarter and full year 2024 financial performance, with increased net income and record primary mortgage insurance in force.

Radian Group Inc. announced net income of $148 million for the fourth quarter of 2024, or $0.98 per diluted share, and a full year net income of $604 million, or $3.92 per diluted share. The company's primary mortgage insurance in force reached an all-time high of $275.1 billion.

  • 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.
  • Full year net income reached $604 million, or $3.92 per diluted share, up from $603 million, or $3.77 per diluted share in FY 2023.
  • Adjusted pretax operating income for Q4 2024 was $209 million, an increase from $192 million in Q4 2023.
  • Primary mortgage insurance in force grew to a record $275.1 billion as of December 31, 2024.

Headline financials

Total Revenue

$316M

Previous: $329M-3.9%
EPS (adj)

$1.09

Previous: $0.96+13.5%
Net premiums earned

$235M

Previous: $230M+2.1%
New insurance written

$13.2B

Previous: $10.6B+24.1%
Primary insurance in force

$275B

Previous: $270B+1.9%
Book value per share

$31.33

Previous: $28.71+9.1%
Holding company liquidity

$885M

Previous: $992M-10.8%
Loss ratio

0.0%

Previous: 2.0%-100.0%
Expense ratio

24.2%

Previous: 25.5%-5.1%
Return on equity

12.7%

Previous: 13.4%-5.2%
Adjusted operating ROE

14.2%

Previous: 14.2%+0.0%
New defaults

14.0K

Previous: 12.5K+12.2%
Primary delinquent loans

24.1K

Previous: 22.0K+9.2%
MI net claims paid

$5M

Previous: $3M+66.7%
Net Income

$148M

Previous: $143M+3.7%
Operating Income

$189M

Previous: $180M+5.2%

Revenue & EPS history

Radian · Revenue · Quarterly

$316M

Q4 2024-3.9%vs Q4 2023
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Radian · $289M total across 1 segment · Q3 2023

  • Mortgage Insurance
    $289M+2.7%

Forward guidance

Radian's forward-looking statements indicate a focus on maintaining capital adequacy, managing market risks, and adapting to regulatory changes, while continuing to execute business strategies and return value to stockholders.

Tailwinds

  • Ability to maintain adequate capital levels in insurance subsidiaries to meet regulatory requirements.
  • Successful execution of capital plans, including risk distribution strategies.
  • Maintenance of sufficient holding company liquidity.
  • Continued focus on managing expenses and optimizing investment portfolio performance.
  • Commitment to returning value to stockholders through dividends and share repurchases.

Headwinds

  • Potential impacts from changes in the U.S. housing market and economic conditions, including inflationary pressures and interest rates.
  • Risks associated with changes in customer, investor, ratings agency, regulator, or legislator perceptions of performance.
  • Challenges in maintaining eligibility under PMIERs and adapting to changes in GSE requirements.
  • Uncertainties related to the current housing finance system and the roles of various market participants.
  • Risks from new business lines, technologies, and potential impacts from political and geopolitical events.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2024

Historical avgQ4 2024

+0.0%

Avg return

Earnings day

+0.4%

Avg return

5 days after

+0.8%

Avg return

30 days after

48%

31 / 65 earnings

Positive

+19.2%

Q2 2011

Best reaction

-18.8%

Q3 2010

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-4.0%-2.6%-10.2%
Q4 2025+1.6%+6.3%+0.5%
Q3 2025-0.7%+3.0%+1.2%
Q1 2025+1.9%+5.1%+6.9%
Q4 2024-1.8%-4.8%-6.3%
Q3 2024+4.6%+5.8%+7.0%
Q2 2024-4.2%-8.7%-2.7%
Q1 2024+2.9%+4.8%+4.6%
Q4 2023-4.5%-2.1%+3.2%
Q3 2023+4.6%+6.6%+1.9%
Q2 2023+2.0%+4.0%+1.1%
Q1 2023+2.1%+5.9%+11.3%
Q4 2022-1.7%-1.1%-5.4%
Q3 2022-1.7%-0.8%-8.8%
Q2 2022+0.8%+0.0%-5.6%
Q1 2022+3.9%+0.1%-1.2%
Q4 2021+2.1%+2.4%-2.4%
Q3 2021-7.6%-6.8%-14.0%
Q2 2021-2.1%+2.5%+4.3%
Q1 2021-4.8%-4.5%-7.3%
Q4 2020-1.2%-1.0%+6.9%
Q3 2020-5.1%-2.6%+5.7%
Q2 2020+3.8%+4.7%+5.1%
Q1 2020+8.8%+6.0%+31.4%
Q4 2019-1.1%-3.0%-11.7%
Q3 2019+1.0%+1.0%+4.0%
Q2 2019-3.4%-7.0%-3.8%
Q1 2019+1.6%+2.4%-3.7%
Q4 2018-1.2%+1.3%+2.9%
Q3 2018+5.3%+3.8%+0.3%
Q2 2018+4.8%+8.2%+15.0%
Q1 2018-0.6%+3.5%+7.6%
Q4 2017+1.7%-2.0%-6.3%
Q3 2017+4.4%+3.3%+3.0%
Q2 2017+1.5%+0.9%+0.5%
Q1 2017-12.7%-14.3%-14.4%
Q4 2016-1.7%-0.3%+1.0%
Q3 2016-4.5%-7.8%+1.3%
Q2 2016+4.6%+1.5%+10.3%
Q1 2016+3.8%
Q4 2015+3.1%
Q3 2015-11.5%
Q2 2015-1.0%
Q1 2015-2.7%
Q4 2014-3.6%
Q3 2014+8.8%
Q2 2014+5.3%
Q1 2014+3.7%
Q4 2013+6.1%
Q3 2013-10.5%
Q2 2013+1.7%
Q1 2013-0.5%
Q4 2012+2.7%
Q3 2012+14.7%
Q2 2012+4.7%
Q1 2012+0.0%
Q4 2011-1.9%
Q4 2009-1.9%
Q3 2011-18.8%
Q3 2010-18.8%
Q2 2011+19.2%
Q2 2010-0.2%
Q1 2010-0.2%
Q4 2010-0.2%
Q1 2011-0.2%

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