Loading...
•
Jun 30, 2024
Radian Q2 2024 Earnings Report
Radian reported net income of $152 million and EPS of $0.98 for Q2 2024.
Key Takeaways
Radian Group Inc. reported a strong second quarter with a net income of $152 million, or $0.98 per diluted share, compared to $146 million, or $0.91 per diluted share, for the same quarter last year. The company's return on equity was 13.6%.
Net income for the quarter ended June 30, 2024, was $152 million, or $0.98 per diluted share.
Return on equity was 13.6%.
Book value per share grew 12% year-over-year to $29.66.
Available Holding Company Liquidity increased to $1.2 billion.
Radian
Radian
Forward Guidance
Radian expects to cede 25% of NIW between July 1, 2024, and June 30, 2025, under the 2024 QSR Agreement.
Positive Outlook
- Radian Guaranty paid an ordinary dividend to Radian Group of $200 million in the second quarter of 2024.
- Radian Guaranty’s Available Assets under PMIERs totaled approximately $6.0 billion, resulting in PMIERs excess Available Assets of $2.2 billion.
- Radian Mortgage Capital brought to market its inaugural secondary market securitization, a prime jumbo transaction of $348.9 million in size.
- Radian Group announced the redemption of its 2024 senior notes in the amount of $450 million, payable in September 2024.
- The redemption will result in a corresponding $450 million reduction in holding company debt and reduce Radian Group’s financial leverage.
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, or changes in the requirements for Radian Guaranty to remain an approved insurer to the GSEs, such as changes in the PMIERs or the GSEs’ interpretation and application of the PMIERs or other applicable requirements