Radian Group Inc. · NYSE:RDN
Radian — Q2 2025 Earnings Presentation
29 slides from Radian's earnings presentation, Jul 31, 2025
Slide 1: Financial Results Q2 2025
Financial Results Q2 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 • risks associated with investments to diversify and grow, including to grow our that we expect or anticipate
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: Q2 2025 Summary Financial Metrics
Q2 2025 Summary Financial Metrics $142 million Compared to $145 million in Q1 2025 and $152 12.5% Compared to 12.6% in Q1 2025 and 13.6% million in Q2 2024 Return on Equity in Q2 2024 Net Income $1.02 12.4% Compared to 12.7% in Q1 2025 and 13.9% Compared to $0.98 in Q1 2025 and $0.98 in Q2 Adjusted
Slide 5: Q2 2025 Summary Financial Metrics
Q2 2025 Summary Financial Metrics $276.7 billion Compared to $274.2 billion as of March 31, $318 million Compared to $318 million in Q1 2025 and Primary Mortgage 2025 and $272.8 billion as of June 30, 2024 Total Revenues $321 million in Q2 2024 Insurance in Force $234 million Compared to $234 millio
Slide 6: Financial Highlights
Financial Highlights Radian Group Inc. Consolidated June 30, September 30, December 31, March 31, June 30, (In millions, except per-share amounts) 2024 2024 2024 2025 2025 Primary mortgage IIF . $272,827 $274,721 $275,126 $274,159 $276,745 Total assets $8,130 $8,420 $8,664 $8,765 $9,581 Total invest
Slide 7: GAAP Diluted Net Income Per Share
GAAP Diluted Net Income Per Share Q1 2025 to Q2 2025 (1) (1) All diluted net income (loss) per share items are calculated based on 147.7 million weighted-average diluted shares outstanding for the quarter ended March 31, 2025, except for the June 30, 2025, diluted net income (loss) per share, which
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 June 30, 2025 Unrealized gain (loss) GAAP book Amortized recorded in value per $ in millions Cost Fair Value AOCI share Due in one year or less $149 $146 ($3) Due after o
Slide 9: Revenue and Related Drivers
Revenue and Related Drivers 9
Slide 10: Primary Mortgage Insurance in Force Rollforward and Persistency Rates
Primary Mortgage Insurance in Force Rollforward and Persistency Rates Persistency Rates Primary IIF Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 ● Quarterly, Annualized (1) (In billions) ● 12 Months Ended Beginning primary IIF $271.0 $272.8 $274.7 $275.1 $274.2 NIW 13.9 13.5 13.2 9.5 14.3 Cancellations a
Slide 11: Primary Mortgage Insurance in Force
Primary Mortgage Insurance in Force IIF as of: Vintage written in: June 30, December 31, June 30, ($ in billions) 2024 2024 2025 2025 $23.4 8.5% 2024 $24.9 9.1% $49.3 17.9% 46.6 16.8% 2023 48.4 17.8% 45.3 16.5% 42.3 15.3% 2022 57.6 21.1% 54.2 19.7% 50.7 18.3% 2021 59.5 21.8% 53.5 19.4% 48.1 17.4% 20
Slide 12: Net Premiums Earned
Net Premiums Earned Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Average primary IIF ($ in billions) $271.9 $273.8 $274.9 $274.6 $275.5 (In basis points) In force portfolio premium yield (1) 38.2 38.2 38.0 38.0 37.8 Single premium cancellations (1) 0.3 0.3 0.3 0.1 0.3 Total direct yield 38.5 38.5 38.3 38
Slide 13: Investment Portfolio
Investment Portfolio Investment Portfolio Scheduled Maturity Investment Diversification Investment Portfolio by Rating As of June 30, 2025 As of June 30, 2025 As of June 30, 2025 $ in millions Fair Value Percent $ in millions Fair Value Percent $ in millions Fair Value Percent Short-term investments
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 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 (number of loans) Beginning default inventory 20,850 20,276 22,350 24,055 22,758 Total new defaults (1) 11,104 13,708 13,967 12,505 11,467 Cures (2) (11,472) (11,484) (12,066) (13,640) (11,754)
Slide 17: Strong Cure Trends Resulting in ~90% Of Defaults Cured Within One Year Of Default
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 Defaults Quarterly Remaining Cured as of # of Quarters Since Original New Default New as of June June 30, Defaults 30, 2025 (1) 2025
Slide 18: Reserve Related Activity
Reserve Related Activity ($ in millions, except otherwise indicated) Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Provision for losses (1) Current period defaults (2) $48 $57 $56 $54 $48 Prior period defaults (3) (50) (51) (56) (39) (36) Total provision for losses (1) $(2) $6 $0 $15 $12 Reserve for losse
Slide 19: Capital and Risk Distribution
Capital and Risk Distribution 19
Slide 20: Capital & Ratings
Capital & Ratings Total Holding Company Capitalization as of June 30, 2025 Holding Company Debt-to-Capital Ratio (1) ($ 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’ equit
Slide 21: Statutory Capital - Radian Guaranty Inc.
Statutory Capital - Radian Guaranty Inc. June 30, September 30, December 31, March 31, June 30, ($ in millions) 2024 2024 2024 2025 2025 Risk-to-capital ratio 10.3:1 10.3:1 10.2:1 10.2:1 10.3:1 Common stock and paid-in surplus $500 $500 $500 $300 (4) $300 Unassigned funds (1)(2) 186 191 223 408 381
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 (Q3-Q4 2025) $233 2026 478 2027 481 2028 523 2029 574 2030 554 2031 514 2032 497 2033 475 2034 470 2035 (Q1-Q2
Slide 23: Reinsurance Key Metrics
Reinsurance Key Metrics Current RIF Subject to Current PMIERs Radian’s Current Current Attachment Current Detachment Delinquency ($ in millions) Vintage Agreement MRA Reduction (1) Retention Layer %(2) %(2) %(2) Mortgage Insurance-linked Notes Eagle Re 2023-1 Apr 2022 - Dec 2022 $7,461 $248 $285 3.8
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) Q2 Q3 Q4 Q1 Q2 Consolidated pretax income $188 $195 $189 $188 $175 Less reconciling income (expense) items Net gains (losses) on investments and other financial instruments (1) (5) 6 (7) (2) 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 Q2 Q3 Q4 Q1 Q2 Diluted net income per share $0.98 $0.99 $0.98 $0.98 $1.02 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 Q2 Q3 Q4 Q1 Q2 Return on equity (1) 13.6% 13.2% 12.7% 12.6% 12.5% 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
radian ensuring the American dream