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Radian Divests Clayton EuroRisk to Focus on Core Service
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Radian Group Inc. (RDN - Free Report) divested its Clayton EuroRisk to a global investment firm. The divestiture is in sync with the company’s strategy to intensify its focus on core service.
Clayton EuroRisk is a provider of outsourced mortgage services in Europe. Henceforth, the company will not provide products and services for its Mortgage and Real Estate Services business in Europe. Radian Group intends to position its Service segment for continued profitability. EBITDA margin for the Services segment is expected in the 10-15% range over time.
Radian Group is restructuring business by increasing its focus on core business and services with higher-growth potential and ensuring more predictable and recurring fee-based revenues. Restructuring cost is estimated to be $20 million, of which, $12 million was recognized in the third quarter itself.
The company remains firmly focused on improving its mortgage insurance portfolio, the main catalyst of long-term earnings growth. It remains committed toward leveraging its core expertise in credit risk management, which will lead to more business written and strengthen the Mortgage Insurance franchise.
Radian Group carries a Zacks Rank #2 (Buy). Shares of Radian Group have rallied 15.6% year to date, outperforming the industry’s gain of 8.8%. The company is poised for long-term growth on declining delinquency, lower levels of paid claims and an improving risk-based capital ratio, reflecting improvement in the operating environment.
Other Stocks to Consider
Investors interested in multiline insurers can also look at other stocks worth considering namely, MGIC Investment Corporation (MTG - Free Report) , MetLife Inc. (MET - Free Report) and Prudential Financial, Inc. (PRU - Free Report) .
MGIC Investment provides private mortgage insurance and ancillary services to lenders and government-sponsored entities in the United States. The company delivered an average four-quarter positive surprise of 27.11%. The stock flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
MetLife provides life insurance, annuities, employee benefits and asset management products in the United States, Japan, Latin America, Asia, Europe and the Middle East. The company came up with an average four-quarter positive surprise of 9.60%. The stock carries a Zacks Rank of 2.
Prudential provides insurance, investment management and other financial products and services in the United States and internationally. The Zacks #2 Ranked company pulled off an average four-quarter positive surprise of 0.16%.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Radian Divests Clayton EuroRisk to Focus on Core Service
Radian Group Inc. (RDN - Free Report) divested its Clayton EuroRisk to a global investment firm. The divestiture is in sync with the company’s strategy to intensify its focus on core service.
Clayton EuroRisk is a provider of outsourced mortgage services in Europe. Henceforth, the company will not provide products and services for its Mortgage and Real Estate Services business in Europe. Radian Group intends to position its Service segment for continued profitability. EBITDA margin for the Services segment is expected in the 10-15% range over time.
Radian Group is restructuring business by increasing its focus on core business and services with higher-growth potential and ensuring more predictable and recurring fee-based revenues. Restructuring cost is estimated to be $20 million, of which, $12 million was recognized in the third quarter itself.
The company remains firmly focused on improving its mortgage insurance portfolio, the main catalyst of long-term earnings growth. It remains committed toward leveraging its core expertise in credit risk management, which will lead to more business written and strengthen the Mortgage Insurance franchise.
Radian Group carries a Zacks Rank #2 (Buy). Shares of Radian Group have rallied 15.6% year to date, outperforming the industry’s gain of 8.8%. The company is poised for long-term growth on declining delinquency, lower levels of paid claims and an improving risk-based capital ratio, reflecting improvement in the operating environment.
Other Stocks to Consider
Investors interested in multiline insurers can also look at other stocks worth considering namely, MGIC Investment Corporation (MTG - Free Report) , MetLife Inc. (MET - Free Report) and Prudential Financial, Inc. (PRU - Free Report) .
MGIC Investment provides private mortgage insurance and ancillary services to lenders and government-sponsored entities in the United States. The company delivered an average four-quarter positive surprise of 27.11%. The stock flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
MetLife provides life insurance, annuities, employee benefits and asset management products in the United States, Japan, Latin America, Asia, Europe and the Middle East. The company came up with an average four-quarter positive surprise of 9.60%. The stock carries a Zacks Rank of 2.
Prudential provides insurance, investment management and other financial products and services in the United States and internationally. The Zacks #2 Ranked company pulled off an average four-quarter positive surprise of 0.16%.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>