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Mar 31, 2024
Radian Q1 2024 Earnings Report
Radian's first quarter earnings reflected a strong start to the year, marked by increased book value per share and a solid return on equity.
Key Takeaways
Radian Group Inc. reported a net income of $152 million, or $0.98 per diluted share, for the quarter ended March 31, 2024. Total revenues reached $319 million, demonstrating a 3% year-over-year growth. The company's book value per share grew by 12% year-over-year, and the primary mortgage insurance in force reached an all-time high of $271 billion.
Net income for the first quarter of 2024 was $152 million, or $0.98 per diluted share.
Return on equity was 13.8%, and adjusted net operating return on equity was 14.5%.
Primary mortgage insurance in force grew 4% year-over-year, reaching $271 billion.
Total revenue increased 3% year-over-year to $319 million.
Radian
Radian
Forward Guidance
Radian initiated a series of transactions to increase its financial strength and reduce holding company leverage by year-end 2024.
Positive Outlook
- Issued $625 million aggregate principal amount of 6.200% senior unsecured notes due May 2029.
- Utilized a portion of the proceeds from the new debt issuance to redeem all of its $525 million aggregate principal amount of 6.625% senior unsecured notes due March 2025.
- Intends to retire its $450 million aggregate principal amount of 4.500% senior unsecured notes due October 2024 at or prior to maturity without incurring any additional indebtedness.
- This is expected to reduce the holding company debt to capital ratio to below 20% by year-end 2024.
- In the first quarter of 2024, Radian Guaranty paid an ordinary dividend to Radian Group of $100 million.
Challenges Ahead
- The health of the U.S. housing market generally and changes in economic conditions that impact the size of the insurable mortgage market, the credit performance of our insured mortgage portfolio and our business prospects, including changes resulting from inflationary pressures, the higher interest rate environment and the risk of higher unemployment rates, as well as other macroeconomic stresses and uncertainties, including potential impacts resulting from political and geopolitical events
- Changes in the way customers, investors, ratings agencies, regulators or legislators perceive our performance, financial strength and future prospects
- Radian Guaranty’s ability to remain eligible under the PMIERs to insure loans purchased by the GSEs
- Our ability to maintain an adequate level of capital in our insurance subsidiaries to satisfy current and future regulatory requirements
- Changes in the charters or business practices of, or rules or regulations imposed by or applicable to, the GSEs or loans purchased by the GSEs