Radian Group Stock Price, News & Analysis

Radian Group reported a net income of $125.6 million, or $0.64 per diluted share, for Q1 2021, down from $140.5 million a year ago. The company's adjusted pretax operating income also fell to $167.3 million from $204.6 million. New Insurance Written (NIW) stood at $20.2 billion, a decrease from $29.8 billion in Q4 2020. The book value per share increased by 9% year-over-year, reaching $22.14. The company announced a quarterly dividend increase to $0.14 per share, effective June 4, 2021.

Radian Group Inc. (NYSE: RDN) announced $498 million in fully collateralized excess of loss reinsurance from its subsidiary, Radian Guaranty Inc., to cover mortgage insurance policies from August to December 2020. Funded by issuing six classes of mortgage insurance-linked notes (ILNs) from Eagle Re, a new Bermuda insurer, the transaction involves non-recourse agreements for Radian. Notably, Radian purchased $17.7 million in B-1 tranche and the entire B-2 tranche. Moody's rated the ILNs between A3 and B3, confirming their credit quality.

Radian Group reported a 9.3% annualized increase in home prices for Q1 2021, with median prices rising to $274,256 in March. The Radian Home Price Index (HPI) also showed an 8.8% year-over-year increase, reflecting robust market conditions, as distressed sales remain low at 4.4%. Notably, all six regions recorded price appreciation, with the West and South showing the strongest gains. Active listings continue to decline, further tightening the market. This data highlights a sustained seller's market, with a record number of sales transactions exceeding 750,000 in the first quarter.

Radian Group Inc. (NYSE: RDN) will conduct a conference call on May 5, 2021, at 10:00 a.m. Eastern Time to discuss its Q1 2021 financial results, which will be released after market close on May 4. Investors can listen to the call live via the webcast on Radian’s website or by dialing 800.447.0521 in the U.S. A digital replay will be available two hours post-broadcast for two weeks. Radian offers mortgage insurance and various real estate services, striving to enhance homeownership responsibly.

Radian Guaranty Inc. reported March 2021 operating statistics for its insured mortgage portfolio, revealing a total of 3,314 new primary defaults and a decrease in beginning primary default inventory to 52,882 loans. The ending primary default inventory dropped to 50,106 loans. In March, cures reached (6,043), indicating successful resolution of previously defaulted loans. Claims paid amounted to (45). The statistics reflect the impact of ongoing forbearance programs due to the COVID-19 pandemic.

Radian Group Inc. (NYSE: RDN) reports a significant rise in home prices across the U.S. in February 2021, with an annualized increase of 8.2%. The Radian Home Price Index (HPI) indicates a year-over-year rise of 8.3%, reflecting resilience post-pandemic. The median home price reached $272,186, up over $20,800 from February 2020. Additionally, homes appreciated 9.3% over the last six months amid low supply and high demand. Positive trends were noted in nearly all states, with record sales and low active listings, marking a strong start to the housing market in 2021.

Radian Guaranty Inc. released its February 2021 credit performance metrics for its mortgage insurance portfolio, showing a decrease in total new primary defaults to 3,873 from 4,664 in January. The beginning primary default inventory stands at 54,488, slightly down from 55,537 in January. Cures improved, with 5,420 cures reported in February compared to 5,674 in January. Claims paid slightly increased to 57 from 41 in January, while ending primary default inventory is 52,882.

Radian Group reported net income of $148.0 million for Q4 2020, down from $161.2 million in Q4 2019, translating to $0.76 per diluted share compared to $0.79 previously. For the entire year, net income was $393.6 million, a decline from $672.3 million in 2019. The company noted a 47.2% increase in New Insurance Written (NIW) to $105.0 billion in 2020. However, provision for losses surged to $483.3 million due to pandemic impacts. Book value per share increased by 11% to $22.36.

Radian Group Inc. (NYSE: RDN) reported that home prices in the U.S. rose at an annualized rate of 7.5% from December 2020 to January 2021, reflecting a slight slowdown from previous months. The national median home price reached $270,334, while distressed sales hit an all-time low of 11,212 units, accounting for just 4.9% of total sales. Over the past year, home prices increased 8.0% year-over-year. The Southwest region saw the only acceleration in price appreciation, while the South region recorded the highest growth at 8.9%.