Slide 1: Financial Results Q1 2025
Financial Results Q1 2025 NYSE: RDN www.radian.com
Slide 2: Safe Harbor Statements
Safe Harbor Statements All statements in this presentation that address events, developments or results • changes in the charters or business practices of, or rules or regulations imposed by • volatility in our financial results caused by changes in the fair value of our assets that we expect or ant
Slide 3: About Us
About Us Radian Group Inc. is a mortgage and real estate company, providing mortgage insurance and other products and services: • Mortgage Insurance is our one reportable segment. This business provides credit-related insurance coverage for the benefit of mortgage lending institutions and mortgage c
Slide 4: Q1 2025 Summary Financial Metrics
Q1 2025 Summary Financial Metrics Compared to $148 million in Q4 2024 and $152 $145 million million in Q1 2024 12.6% Compared to 12.7% in Q4 2024 and 13.8% Net Income Return on Equity in Q1 2024 $0.98 12.7% Compared to 14.1% in Q4 2024 and 14.1% Compared to $0.98 in Q4 2024 and $0.98 in Q1 Adjusted
Slide 5: Q1 2025 Summary Financial Metrics
Q1 2025 Summary Financial Metrics $274.2 billion Compared to $275.1 billion as of December 31, $318 million Compared to $316 million in Q4 2024 and Primary Insurance In Force 2024 and $271.0 billion as of March 31, 2024 Total Revenues $319 million in Q1 2024 $234 million Compared to $235 million in
Slide 6: Financial Highlights
Financial Highlights Radian Group Inc. Consolidated March 31, June 30, September 30, December 31, March 31, (In millions, except per-share amounts) 2024 2024 2024 2024 2025 Primary IIF . $270,986 $272,827 $274,721 $275,126 $274,159 Total assets $7,760 $8,130 $8,420 $8,664 $8,765 Total investments $6
Slide 7: GAAP Diluted Net Income Per Share
GAAP Diluted Net Income Per Share Q4 2024 to Q1 2025 (1) (1) All diluted net income (loss) per share items are calculated based on 151.9 million weighted-average diluted shares outstanding for the quarter ended December 31, 2024, except for the March 31, 2025, diluted net income (loss) per share, wh
Slide 8: AOCI Impact to Book Value Per Share
AOCI Impact to Book Value Per Share GAAP Book Value Per Share Contractual Maturities of Fixed-Maturities Available for Sale As of March 31, 2025 Unrealized gain (loss) GAAP book Amortized recorded in value per $ in millions Cost Fair Value AOCI share Due in one year or less $117 $115 ($2) Due after
Slide 9: Revenue and Related Drivers
Revenue and Related Drivers 9
Slide 10: Primary Insurance In Force Rollforward and Persistency Rates
Primary Insurance In Force Rollforward and Persistency Rates Persistency Rates Primary IIF Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 ● Quarterly, Annualized (1) (In billions) ● 12 Months Ended Beginning primary IIF $270.0 $271.0 $272.8 $274.7 $275.1 NIW 11.5 13.9 13.5 13.2 9.5 Cancellations and (10.5)
Slide 11: Primary Insurance In Force
Primary Insurance In Force IIF as of: Vintage written in: March 31, December 31, March 31, ($ in billions) 2024 2024 2025 2025 $— —% $— —% $9.4 3.4% 2024 11.4 4.2% 49.3 17.9% 48.1 17.5% 2023 49.5 18.3% 45.3 16.5% 44.1 16.1% 2022 59.3 21.9% 54.2 19.7% 52.6 19.2% 2021 62.7 23.1% 53.5 19.4% 51.0 18.6%
Slide 12: Net Premiums Earned
Net Premiums Earned Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Average primary IIF ($ in billions) $270.5 $271.9 $273.8 $274.9 $274.6 (In basis points) In force portfolio premium yield (1) 38.2 38.2 38.2 38.0 38.0 Single premium cancellations (1) 0.3 0.3 0.3 0.3 0.1 Total direct yield 38.5 38.5 38.5 38
Slide 13: Investment Portfolio
Investment Portfolio Investment Portfolio Scheduled Maturity Investment Diversification Investment Portfolio by Rating As of March 31, 2025 As of March 31, 2025 As of March 31, 2025 $ in millions Fair Value Percent $ in millions Fair Value Percent $ in millions Fair Value Percent Short-term investme
Slide 14: Net Investment Income
Net Investment Income Net Investment Income (in millions) Average Investments (2) (in millions) ■ Residential mortgage loans held for sale (1) ■ Residential mortgage loans held for sale ■ Total investments, excluding residential mortgage loans held for sale ■ Total investments, excluding residential
Slide 15: Defaults and Other Loss Reserve-Related Details
Defaults and Other Loss Reserve- Related Details 15
Slide 16: Mortgage Insurance Default Rollforward
Mortgage Insurance Default Rollforward Primary Insurance In Force Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 (number of loans) Beginning default inventory 22,021 20,850 20,276 22,350 24,055 Total new defaults (1) 11,756 11,104 13,708 13,967 12,505 Cures (2) (12,808) (11,472) (11,484) (12,066) (13,640)
Slide 17: Strong Cure Trends Resulting In ~90% Of Defaults Cured Within One Year
Strong Cure Trends Resulting In ~90% Of Defaults Cured Within One Year Of Default Cumulative % of New Defaults That Have Cured Since Original Default Quarter Defaults Remaining as of Defaults Cured # of Quarters Since Original New Default Quarterly New March 31, 2025 as of March 31, Defaults (1) 202
Slide 18: Reserve Related Activity
Reserve Related Activity ($ in millions, except otherwise indicated) Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Provision for losses (1) Current period defaults (2) $54 $48 $57 $56 $54 Prior period defaults (3) (61) (50) (51) (56) (39) Total provision for losses (1) $(7) $(2) $6 $0 $15 Reserve for loss
Slide 19: Capital and Risk Distribution
Capital and Risk Distribution 19
Slide 20: Capital & Ratings
Capital & Ratings Total Holding Company Capitalization as of March 31, 2025 Holding Company Debt-to-Capital Ratio (1) ($ in millions) Coupon Description Principal Carrying Value 4.875% Senior Notes due 2027 $ 450 $ 448 6.200% Senior Notes due 2029 $ 625 $ 618 Total $ 1,075 $ 1,066 Stockholders’ equi
Slide 21: Statutory Capital - Radian Guaranty Inc.
Statutory Capital - Radian Guaranty Inc. March 31, June 30, September 30, December 31, March 31, ($ in millions) 2024 2024 2024 2024 2025 Risk-to-capital ratio 10.2:1 10.3:1 10.3:1 10.2:1 10.2:1 Common stock and paid-in surplus $500 $500 $500 $500 $300 (4) Unassigned funds (1)(2) 203 186 191 223 408
Slide 22: Contingency Reserve Releases Help Drive Recurring Distributions to Holdco
Contingency Reserve Releases Help Drive Recurring Distributions to Holdco Radian Guaranty Distributions to Holdco Scheduled (in millions) Contingency Reserve (In millions) Releases (2) 2025 (Q2-Q4 2025) $350 2026 478 2027 481 2028 523 2029 574 2030 554 2031 514 2032 497 2033 475 2034 469 2035 (Q1 20
Slide 23: Reinsurance Key Metrics
Reinsurance Key Metrics Current RIF Subject to Current PMIERs Radian’s Current Current Attachment Current Detachment Delinquency ($ in millions) Vintage Agreement MRA Reduction (1) Retention Layer %(2) %(2) %(2) Mortgage Insurance-linked Notes Eagle Re 2023-1 Apr 2022 - Dec 2022 $7,708 $267 $285 3.7
Slide 24: Consolidated Non-GAAP Financial Measures Reconciliations
Consolidated Non-GAAP Financial Measures Reconciliations 24
Slide 25: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures Although adjusted pretax operating income (loss) excludes certain items that have occurred in the In addition to the traditional GAAP financial measures, we have presented “adjusted pretax operating past and are expected to occur in the future, the excluded items r
Slide 26: Reconciliation of Consolidated Pretax Income to Adjusted Pretax Operating Income
Reconciliation of Consolidated Pretax Income to Adjusted Pretax Operating Income 2024 2025 (In millions) Q1 Q2 Q3 Q4 Q1 Consolidated pretax income $199 $188 $195 $189 $188 Less reconciling income (expense) items Net gains (losses) on investments and other financial instruments (1) — (5) 6 (7) (2) Im
Slide 27: Reconciliation of Diluted Net Income Per Share to Adjusted Diluted Net Operating Income Per Share
Reconciliation of Diluted Net Income Per Share to Adjusted Diluted Net Operating Income Per Share 2024 2025 Q1 Q2 Q3 Q4 Q1 Diluted net income per share $0.98 $0.98 $0.99 $0.98 $0.98 Less per-share impact of reconciling income (expense) items Net gains (losses) on investments and other financial inst
Slide 28: Reconciliation of Return on Equity to Adjusted Net Operating Return on Equity
Reconciliation of Return on Equity to Adjusted Net Operating Return on Equity 2024 2025 Q1 Q2 Q3 Q4 Q1 Return on equity (1) 13.8% 13.6% 13.2% 12.7% 12.6% Less impact of reconciling income (expense) items (2) Net gains (losses) on investments and other financial instruments —% (0.4)% 0.6% (0.6)% (0.2
Slide 29: radian
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