Radian Group Inc.

What they do

Radian operates through a Mortgage segment, which provides private mortgage insurance and related risk management products to lenders, and a Specialty segment, which writes insurance tied to residential real estate and specialty lines. It reinsures a substantial portion of its mortgage risk through quota share, excess-of-loss, insurance-linked notes and traditional reinsurance agreements. The company has been divesting non-insurance businesses and integrating the Inigo acquisition.

Revenue drivers

• Mortgage insurance premiums — Net premiums earned were $504 million in Q2 2026, with primary mortgage insurance in force at a record $284 billion; premiums are earned on a book that is heavily ceded through the QSR, XOL and insurance-linked notes programs.
• Specialty insurance premiums — Specialty represented 53% of net premiums earned in Q2 2026, with gross premiums written of $504 million in the quarter, contributing a second large premium stream alongside mortgage.
• Net investment income — Consolidated net investment income was $75 million in Q2 2026; the Mortgage segment's average investment yield rose to 4.3% from 4.0%, boosted by $10 million of quarterly interest from the Intercompany Note to Radian Group.

Recent performance

Second quarter 2026 total revenues were $575 million, up 93% year over year from $299 million, and net income from continuing operations was $118 million, or $0.87 per diluted share, versus $154 million and $1.11 a year earlier. Adjusted diluted net operating income per share was $1.14, compared with $1.11 in Q2 2025. Results included $39 million of Inigo purchase accounting adjustments, intangible amortization and acquisition-related expenses. Mortgage's combined ratio was 35.8% versus 30.4% a year earlier, while Specialty's combined ratio was 97.7% versus 85.3% in Q1 2026. Book value per share was $36.00 at June 30, 2026.

Strategy

Management describes an ongoing transformation centered on insurance, with the first full quarter of Inigo results and divestitures nearing completion. It is integrating Inigo, managing mortgage risk through reinsurance programs, and maintaining capital strength, with PMIERs excess available assets of $1,450 million at quarter end. The company paid a $200 million ordinary dividend from Radian Guaranty to the holding company in Q2 2026, repurchased $76 million of shares and paid $37 million of dividends. A CEO transition is described as supporting strategic continuity.

Risks

• Mortgage credit risk — As a mortgage insurer, losses rise with defaults, and management notes default rate and credit trends remain key drivers of the provision for losses.
• Reinsurance dependence — A large share of mortgage risk is ceded through QSR, XOL, insurance-linked notes and traditional reinsurance, and ceded premiums were 12.3% of direct premiums earned in Q2 2026.
• Regulatory and compliance exposure — Radian is subject to GLBA safeguards amendments, state privacy laws, CFPB and NYDFS scrutiny, and fair lending laws, including a proposed Regulation B rule that would eliminate disparate-impact liability.
• Acquisition integration and execution — The Inigo acquisition generated $39 million of purchase accounting, intangible amortization and transaction costs in Q2 2026, and the company is simultaneously completing divestitures.

Outlook

Management points to the Inigo acquisition, completed divestitures and the CEO transition as evidence of a strategy that is gaining momentum. It highlights record primary mortgage insurance in force, favorable credit trends with a declining default rate, and strong holding company liquidity of $412 million. No specific earnings guidance is given in the excerpts provided.