WAYNE, PA — Radian Group Inc. (NYSE: RDN) reported lower first-quarter net income as acquisition-related costs tied to its purchase of specialty insurer Inigo weighed on earnings, even as the company posted growth in insurance activity and operating income.
Net income from continuing operations fell to $129 million, or $0.93 per diluted share, for the quarter ended March 31, compared with $152 million, or $1.03 per diluted share, a year earlier.
Pretax income from continuing operations declined to $174 million from $199 million. Radian attributed part of the decrease to $49 million in acquisition-related expenses, amortization and purchase accounting adjustments connected to its acquisition of Inigo, which closed February 2.
The acquisition marks Radian’s expansion beyond mortgage insurance into global specialty insurance through Lloyd’s of London markets.
Adjusted pretax operating income rose to $232 million from $201 million a year earlier, while adjusted diluted net operating income per share increased to $1.27 from $1.04.
Book value per share increased 10% year over year to $35.67 as of March 31.
“This quarter marks a defining milestone for Radian, our first as a global multi-line specialty insurer following the successful acquisition of Inigo,” Chief Executive Officer Rick Thornberry said.
Radian’s mortgage segment generated adjusted pretax operating income of $221 million during the quarter. New insurance written increased 42% year over year to $13.5 billion, while primary insurance in force rose 3% to $282 billion.
The company reported a mortgage segment combined ratio of 30.2% and provision for losses of $24 million, including favorable reserve development tied to prior-period defaults.
The specialty segment, which reflects Inigo operations following the acquisition date, reported adjusted pretax operating income of $40 million. Gross premiums written totaled $162 million, split evenly between insurance and reinsurance operations.
Radian repurchased $50 million of common stock during the quarter and an additional $65 million in April. The company also paid $35 million in common stock dividends during the quarter.
Radian Group drew $200 million from its revolving credit facility in January to support the Inigo acquisition and repaid $50 million during the quarter. The company expects to repay the remaining balance during 2026.
Radian Guaranty paid a $140 million ordinary dividend to the parent company during the quarter and expects to pay more than $600 million in ordinary dividends during 2026, subject to approval from the Pennsylvania Insurance Department.
Separately, Radian said it plans to wind down its Mortgage Conduit business after evaluating divestiture options. The company continues discussions with potential buyers for its Title and Real Estate Services businesses and expects those divestitures to be completed by the end of the third quarter of 2026.
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