WAYNE, PA — Radian Group Inc. (NYSE: RDN) nearly doubled second-quarter revenue as its Inigo acquisition expanded the insurer beyond its traditional mortgage business, though acquisition costs and higher insurance losses pushed net income from continuing operations down 23% from a year earlier.
Revenue rose 93% to $575 million for the quarter ended June 30 from $299 million a year earlier, while net premiums earned more than doubled to $504 million from $234 million. The quarter was Radian’s first to include a full three months of results from Inigo, which it acquired Feb. 2.
Net income from continuing operations fell to $118 million, or 87 cents a diluted share, from $154 million, or $1.11 a share, a year earlier. Pretax income from continuing operations declined to $151 million from $193 million.
The results included $39 million of purchase-accounting adjustments, amortization of acquired intangible assets and acquisition-related expenses tied to Inigo. Excluding certain items, adjusted pretax operating income increased to $196 million from $191 million, while adjusted diluted net operating income rose to $1.14 a share from $1.11.
The acquisition has materially changed Radian’s business mix. Its Specialty segment generated $267 million of net premiums earned in the quarter, compared with $236 million from Mortgage, meaning Specialty accounted for about 53% of the company’s total net premiums earned.
Specialty reported $504 million of gross premiums written and adjusted pretax operating income of $29 million. Its combined ratio was 97.7%, up from 85.3% in the first quarter.
The segment recorded a $169 million provision for losses, including reserves for expected and potential claims related to the Middle East conflict. That was partly offset by $24 million of favorable development on prior accident-year loss reserves.
Radian’s established mortgage insurance operation remained its larger profit contributor, producing $208 million of adjusted pretax operating income. Primary mortgage insurance in force reached a record $284 billion, up 3% from a year earlier, while new insurance written increased 14% to about $16 billion.
The percentage of primary insured loans in default declined to 2.47% from 2.51% at the end of the first quarter, though it remained above the 2.27% reported a year earlier. The Mortgage segment’s combined ratio rose to 35.8% from 30.4% a year earlier.
Book value per share increased 8.5% from a year earlier to $36.00. Radian had $412 million of available holding-company liquidity at June 30, excluding $425 million of undrawn capacity under its revolving credit facility.
The company drew $200 million from that credit facility in January and had repaid $125 million by the end of June. Radian expects to repay the remaining borrowing during 2026.
Radian also returned capital to shareholders, repurchasing 2.2 million shares for $76 million during the second quarter and another 1.3 million shares for $50 million in July. It paid $37 million in common-stock dividends during the quarter.
After the July purchases, Radian had as much as $686 million remaining under a $750 million share-repurchase authorization scheduled to expire in December 2027.
Radian Guaranty, the company’s mortgage insurance subsidiary, paid a $200 million ordinary dividend to its parent during the second quarter after paying $140 million in the first quarter. It expects approximately $650 million of such dividends for the full year, subject to prior approval from the Pennsylvania Insurance Department.
The company is simultaneously shedding businesses outside its core insurance operations. Radian had substantially completed the wind-down of its Mortgage Conduit business by June 30 and completed the sale of its Real Estate Services business in August. It also entered an agreement to sell its Title business, with that transaction still subject to customary closing conditions and required regulatory approvals.
Radian received $19 million in distributions during the quarter from businesses held for sale, helping reduce the net carrying value associated with those operations to $35 million at June 30.
Chief Executive Officer Rick Thornberry characterized the quarter as evidence of Radian’s transition into a global multiline specialty insurer, pointing to the combination of its Mortgage and Specialty operations and the company’s continuing divestitures.
The earnings report comes as Radian moves through a planned leadership transition. Mike Weinbach has since assumed the chief executive role and joined the company’s board, completing a transition that Radian had announced in May.
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