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Radian Group Q4 Earnings Top Estimates, MI Business Remains Strong
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Key Takeaways
Radian Group beat Q4 estimates with EPS of $1.16 and revenue of $302 million.
RDN saw MI's new insurance written surge 20.2% to $15.9B, boosting premiums.
RDN returned $576M in 2025 as book value rose 12.6% to $35.29 per share.
Radian Group Inc. (RDN - Free Report) reported fourth-quarter 2025 adjusted operating income of $1.16 per share, which beat the Zacks Consensus Estimate by 4.5%. The bottom line improved 2.7% year over year.
Operating revenues increased 0.8% year over year to $302 million, driven by higher premiums earned and net investment income. The top line surpassed the Zacks Consensus Estimate by 1.1%.
The better-than-expected quarterly results benefited from solid performance in the Mortgage Insurance segment, higher primary mortgage insurance in force and growth in new insurance written, partially offset by higher expenses.
Radian Group Inc. Price, Consensus and EPS Surprise
Net premiums earned were $237 million, up 0.9% year over year. Net investment income rose 0.8% year over year to $62.7 million, supported by higher short-term investment balances, partially offset by securities and maturities.
MI's new insurance written increased 20.2% year over year to $15.9 billion.
Primary mortgage insurance in force rose 2.7% year over year to $282.5 billion, which beat the Zacks Consensus Estimate by 1.1%.
Persistency — the percentage of mortgage insurance remaining in force after 12 months — was 81.6% as of Dec. 31, 2025, down 110 basis points year over year.
Primary delinquent loans totaled 25,230 as of Dec. 31, 2025, up 5.9% year over year.
Total expenses increased 20.9% year over year to $99.5 million. The expense ratio improved 140 basis points year over year to 25.2%, reflecting enhanced operating leverage.
Financial Update
As of Dec. 31, 2025, Radian Group reported cash and cash equivalents of $24.8 million, up 29.2% year over year. Total assets declined 6.5% year over year to $8.1 billion.
The debt-to-capital ratio improved 40 basis points to 18.3%.
Book value per share rose 12.6% year over year to $35.29. Shareholders’ equity increased 3.4% year over year to $4.8 billion.
Adjusted net operating return on equity was 13.6%, down 110 basis points year over year.
As of Dec. 31, 2025, Radian Guaranty’s available assets under PMIERs totaled $5.4 billion, resulting in excess available assets of $1.6 billion.
Capital Deployment & Dividend Update
During 2025, the company returned $576 million to shareholders through dividends and share repurchases. In the fourth quarter, Radian paid a quarterly dividend of 25.5 cents per share, totaling approximately $35 million.
Full-Year 2025 Highlights
Adjusted operating income was $4.45 per share, up 1.4% year over year, and beat the Zacks Consensus Estimate by 3.7%.
Total operating revenues declined 1.1% year over year to $1.2 billion, which came in line with the Zacks Consensus Estimate.
Net premiums earned were $942 million, up 0.3% year over year.
The loss ratio deteriorated 730 basis points year over year to 7.1%.
Arch Capital Group Ltd. (ACGL - Free Report) reported fourth-quarter 2025 operating income of $2.98 per share, which beat the Zacks Consensus Estimate by 19.7%. The bottom line increased 31.9% year over year. ACGL’s quarterly results benefited from higher premiums in its insurance segment and improved net investment income.
Arch Capital’s net premiums earned rose 2.7% year over year to $4.3 billion on higher premiums earned in its insurance segment. The figure marginally missed the Zacks Consensus Estimate.
MGIC Investment Corporation (MTG - Free Report) reported fourth-quarter 2025 operating net income per share of 75 cents, which beat the Zacks Consensus Estimate by 2.7%. The bottom line improved 4.2% year over year.
MGIC Investment's total operating revenues declined 0.9% year over year to $298.7 million, attributable to lower net premiums earned and other revenues. The top line missed the Zacks Consensus Estimate by 2.9% despite stable investment income.
AXIS Capital Holdings Limited (AXS - Free Report) reported fourth-quarter 2025 operating income of $3.25 per share, which outpaced the Zacks Consensus Estimate by 9.4% and rose 9.4% year over year.
AXIS Capital’s total operating revenues of $1.7 billion beat the Zacks Consensus Estimate by 5.2%. The top line rose nearly 9% year over year on higher premiums earned. Net premiums written surged 13% to $1.4 billion, with an increase of 14% in the Insurance segment and growth of 5% in the Reinsurance segment.
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Radian Group Q4 Earnings Top Estimates, MI Business Remains Strong
Key Takeaways
Radian Group Inc. (RDN - Free Report) reported fourth-quarter 2025 adjusted operating income of $1.16 per share, which beat the Zacks Consensus Estimate by 4.5%. The bottom line improved 2.7% year over year.
Operating revenues increased 0.8% year over year to $302 million, driven by higher premiums earned and net investment income. The top line surpassed the Zacks Consensus Estimate by 1.1%.
The better-than-expected quarterly results benefited from solid performance in the Mortgage Insurance segment, higher primary mortgage insurance in force and growth in new insurance written, partially offset by higher expenses.
Radian Group Inc. Price, Consensus and EPS Surprise
Radian Group Inc. price-consensus-eps-surprise-chart | Radian Group Inc. Quote
Q4 in Detail
Net premiums earned were $237 million, up 0.9% year over year. Net investment income rose 0.8% year over year to $62.7 million, supported by higher short-term investment balances, partially offset by securities and maturities.
MI's new insurance written increased 20.2% year over year to $15.9 billion.
Primary mortgage insurance in force rose 2.7% year over year to $282.5 billion, which beat the Zacks Consensus Estimate by 1.1%.
Persistency — the percentage of mortgage insurance remaining in force after 12 months — was 81.6% as of Dec. 31, 2025, down 110 basis points year over year.
Primary delinquent loans totaled 25,230 as of Dec. 31, 2025, up 5.9% year over year.
Total expenses increased 20.9% year over year to $99.5 million. The expense ratio improved 140 basis points year over year to 25.2%, reflecting enhanced operating leverage.
Financial Update
As of Dec. 31, 2025, Radian Group reported cash and cash equivalents of $24.8 million, up 29.2% year over year. Total assets declined 6.5% year over year to $8.1 billion.
The debt-to-capital ratio improved 40 basis points to 18.3%.
Book value per share rose 12.6% year over year to $35.29. Shareholders’ equity increased 3.4% year over year to $4.8 billion.
Adjusted net operating return on equity was 13.6%, down 110 basis points year over year.
As of Dec. 31, 2025, Radian Guaranty’s available assets under PMIERs totaled $5.4 billion, resulting in excess available assets of $1.6 billion.
Capital Deployment & Dividend Update
During 2025, the company returned $576 million to shareholders through dividends and share repurchases. In the fourth quarter, Radian paid a quarterly dividend of 25.5 cents per share, totaling approximately $35 million.
Full-Year 2025 Highlights
Adjusted operating income was $4.45 per share, up 1.4% year over year, and beat the Zacks Consensus Estimate by 3.7%.
Total operating revenues declined 1.1% year over year to $1.2 billion, which came in line with the Zacks Consensus Estimate.
Net premiums earned were $942 million, up 0.3% year over year.
The loss ratio deteriorated 730 basis points year over year to 7.1%.
Zacks Rank
RDN currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Insurers
Arch Capital Group Ltd. (ACGL - Free Report) reported fourth-quarter 2025 operating income of $2.98 per share, which beat the Zacks Consensus Estimate by 19.7%. The bottom line increased 31.9% year over year. ACGL’s quarterly results benefited from higher premiums in its insurance segment and improved net investment income.
Arch Capital’s net premiums earned rose 2.7% year over year to $4.3 billion on higher premiums earned in its insurance segment. The figure marginally missed the Zacks Consensus Estimate.
MGIC Investment Corporation (MTG - Free Report) reported fourth-quarter 2025 operating net income per share of 75 cents, which beat the Zacks Consensus Estimate by 2.7%. The bottom line improved 4.2% year over year.
MGIC Investment's total operating revenues declined 0.9% year over year to $298.7 million, attributable to lower net premiums earned and other revenues. The top line missed the Zacks Consensus Estimate by 2.9% despite stable investment income.
AXIS Capital Holdings Limited (AXS - Free Report) reported fourth-quarter 2025 operating income of $3.25 per share, which outpaced the Zacks Consensus Estimate by 9.4% and rose 9.4% year over year.
AXIS Capital’s total operating revenues of $1.7 billion beat the Zacks Consensus Estimate by 5.2%. The top line rose nearly 9% year over year on higher premiums earned. Net premiums written surged 13% to $1.4 billion, with an increase of 14% in the Insurance segment and growth of 5% in the Reinsurance segment.