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Mar 31, 2020
Radian Q1 2020 Earnings Report
Radian reported strong operating results with increased book value and net income.
Key Takeaways
Radian Group Inc. reported a net income of $140.5 million, or $0.70 per diluted share, for the quarter ended March 31, 2020. Adjusted diluted net operating income per share increased 10% year-over-year to $0.80, and book value per share grew 16% year-over-year to $20.30.
Net income was $140.5 million, or $0.70 per diluted share.
Adjusted diluted net operating income per share increased 10% year-over-year to $0.80.
Book value per share grew 16% year-over-year to $20.30.
PMIERs Available Assets increased to $4.1 billion, with a $1.1 billion excess over Minimum Required Assets.
Radian
Radian
Radian Revenue by Segment
Revenue by Segment
Mortgage Insurance Revenue
CapyFin.com Forward Guidance
Radian anticipates that the COVID-19 pandemic will negatively impact its business and financial results in the second quarter of 2020 and in future periods.
Positive Outlook
- Successfully activated business continuity plans to transition to a virtual work environment.
- Connected with employees and customers through phone and web-based meetings versus in-person.
- Increased the company’s risk-based pricing and made adjustments to underwriting guidelines to account for the increased risk and uncertainty in the market while supporting customers with competitive rates.
- Aligned its businesses with the temporary underwriting and servicing guidelines announced by the GSEs.
- Supported Radian’s communities through increased matching gift levels and charitable contributions focused on first responders and healthcare workers.
Challenges Ahead
- The COVID-19 pandemic has significantly impacted the global economy.
- The pandemic has disrupted global supply chains.
- The pandemic has lowered equity market valuations.
- The pandemic has created significant volatility and disruption in financial markets.
- The pandemic has disrupted the housing finance system and real estate markets and increased unemployment levels.