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Radian Group Inc. (RDN - Free Report) reported second-quarter 2026 adjusted operating income of $1.14 per share, which missed the Zacks Consensus Estimate by 17.4%. The bottom line improved 2.7% year over year.
Operating revenues increased 86.2% year over year to $581 million, driven by higher premiums earned following the Inigo acquisition and net investment income. The top line surpassed the Zacks Consensus Estimate by 2.3%.
The better-than-expected quarterly results benefited from strong growth in net premiums earned, higher new insurance written, a record level of primary mortgage insurance in force and solid investment income. However, elevated expenses and higher primary loan defaults remained headwinds.
Radian Group Inc. Price, Consensus and EPS Surprise
Net premiums earned were $504 million, up 115.7% year over year. Net investment income rose 21.1% year over year to $70 million, supported by higher income from fixed maturities and short-term investment balances.
MI's new insurance written increased 14% year over year to $16.3 billion.
Primary mortgage insurance in force rose 3% year over year to $284 billion, beating the Zacks Consensus Estimate by 1.1%.
Persistency — the percentage of mortgage insurance remaining in force after 12 months — was 82% as of June 30, 2026, up 70 basis points year over year.
As of June 30, 2026, primary delinquent loans represented 2.47% of primary loans in default compared with 2.27% in the prior-year quarter.
Total expenses soared 301.1% year over year to $424.2 million. The expense ratio improved 190 basis points year over year to 23.4%.
RDN’s Financial Update
As of June 30, 2026, Radian reported cash of $119 million, up 114.7% from the 2025-end level.
Total assets increased 31.2% from the 2025-end level to $10.7 billion.
Book value per share increased 8.5% year over year to $36.00. Shareholders' equity rose 0.6% from the 2025-end level to $4.8 billion.
Adjusted net operating return on equity was 12.9%, down 60 basis points year over year.
As of June 30, 2026, Radian Guaranty's available assets under PMIERs totaled $5.3 billion, resulting in excess available assets of $1.5 billion.
RDN’s Capital Deployment & Dividend Update
During the second quarter of 2026, the company repurchased 2.2 million shares of common stock for $76 million.
In the second quarter, Radian paid a quarterly dividend of 25.5 cents per share, totaling approximately $37 million.
Prudential Financial, Inc. (PRU - Free Report) reported second-quarter 2026 adjusted operating income of $4.08 per share, beating the Zacks Consensus Estimate of $3.47 by 17.6%. The bottom line increased 14% year over year.
Total revenues rose 4.8% to $14.15 billion and matched the consensus estimate. Premiums decreased 1.6% year over year to $6.33 billion. However, policy charges and fee income increased 6.4% to $1.14 billion. Net investment income rose 12% year over year to $5.15 billion, while asset management fees, commissions and other income increased 9.2% year over year to $1.54 billion.
Assurant, Inc. (AIZ - Free Report) reported second-quarter 2026 adjusted earnings of $6.41 per share, beating the Zacks Consensus Estimate of $5.16 by 24.2%. The bottom line increased 25.7% year over year. Revenues rose 9.4% to $3.46 billion and surpassed the consensus estimate of $3.40 billion by 1.8%.
Net earned premiums increased 6.9% year over year to $2.77 billion. The figure was higher than our estimate of $2.71 billion. Fees and other income climbed 19.6% year over year to $554.6 million, reflecting continued expansion across the company’s protection and service programs. The figure was higher than our estimate of $500.3 million. Net investment income advanced 10.6% year over year to $142.4 million. The figure was lower than our estimate of $153.1 million. Total segment net earned premiums, fees and other income grew 8.9% to $3.32 billion, supported by gains in both operating segments.
Principal Financial Group, Inc.’s (PFG - Free Report) second-quarter 2026 operating earnings of $2.50 per share beat the Zacks Consensus Estimate by 7.3%. The bottom line increased 16% year over year. Revenues rose 6.4% year over year to $3.99 billion, which missed the consensus mark of $4.09 billion by 2.4%.
Total expenses increased 7.6% year over year to $3.41 billion. Benefits, claims and settlement expenses rose 8.3% to $1.99 billion, while operating expenses increased 8.1% to $1.40 billion. Non-GAAP operating earnings climbed 12% to $547 million. Excluding significant variances, operating earnings advanced 13% to $528.7 million. Net income attributable to PFG declined 1% to $403.4 million.
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RDN Q2 Revenues Top Estimates on Higher Premiums, Investment Income
Key Takeaways
Radian Group Inc. (RDN - Free Report) reported second-quarter 2026 adjusted operating income of $1.14 per share, which missed the Zacks Consensus Estimate by 17.4%. The bottom line improved 2.7% year over year.
Operating revenues increased 86.2% year over year to $581 million, driven by higher premiums earned following the Inigo acquisition and net investment income. The top line surpassed the Zacks Consensus Estimate by 2.3%.
The better-than-expected quarterly results benefited from strong growth in net premiums earned, higher new insurance written, a record level of primary mortgage insurance in force and solid investment income. However, elevated expenses and higher primary loan defaults remained headwinds.
Radian Group Inc. Price, Consensus and EPS Surprise
Radian Group Inc. price-consensus-eps-surprise-chart | Radian Group Inc. Quote
Q2 in Detail
Net premiums earned were $504 million, up 115.7% year over year. Net investment income rose 21.1% year over year to $70 million, supported by higher income from fixed maturities and short-term investment balances.
MI's new insurance written increased 14% year over year to $16.3 billion.
Primary mortgage insurance in force rose 3% year over year to $284 billion, beating the Zacks Consensus Estimate by 1.1%.
Persistency — the percentage of mortgage insurance remaining in force after 12 months — was 82% as of June 30, 2026, up 70 basis points year over year.
As of June 30, 2026, primary delinquent loans represented 2.47% of primary loans in default compared with 2.27% in the prior-year quarter.
Total expenses soared 301.1% year over year to $424.2 million. The expense ratio improved 190 basis points year over year to 23.4%.
RDN’s Financial Update
As of June 30, 2026, Radian reported cash of $119 million, up 114.7% from the 2025-end level.
Total assets increased 31.2% from the 2025-end level to $10.7 billion.
Book value per share increased 8.5% year over year to $36.00. Shareholders' equity rose 0.6% from the 2025-end level to $4.8 billion.
Adjusted net operating return on equity was 12.9%, down 60 basis points year over year.
As of June 30, 2026, Radian Guaranty's available assets under PMIERs totaled $5.3 billion, resulting in excess available assets of $1.5 billion.
RDN’s Capital Deployment & Dividend Update
During the second quarter of 2026, the company repurchased 2.2 million shares of common stock for $76 million.
In the second quarter, Radian paid a quarterly dividend of 25.5 cents per share, totaling approximately $37 million.
RDN’s 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 Multi-Line Insurers
Prudential Financial, Inc. (PRU - Free Report) reported second-quarter 2026 adjusted operating income of $4.08 per share, beating the Zacks Consensus Estimate of $3.47 by 17.6%. The bottom line increased 14% year over year.
Total revenues rose 4.8% to $14.15 billion and matched the consensus estimate. Premiums decreased 1.6% year over year to $6.33 billion. However, policy charges and fee income increased 6.4% to $1.14 billion. Net investment income rose 12% year over year to $5.15 billion, while asset management fees, commissions and other income increased 9.2% year over year to $1.54 billion.
Assurant, Inc. (AIZ - Free Report) reported second-quarter 2026 adjusted earnings of $6.41 per share, beating the Zacks Consensus Estimate of $5.16 by 24.2%. The bottom line increased 25.7% year over year. Revenues rose 9.4% to $3.46 billion and surpassed the consensus estimate of $3.40 billion by 1.8%.
Net earned premiums increased 6.9% year over year to $2.77 billion. The figure was higher than our estimate of $2.71 billion. Fees and other income climbed 19.6% year over year to $554.6 million, reflecting continued expansion across the company’s protection and service programs. The figure was higher than our estimate of $500.3 million. Net investment income advanced 10.6% year over year to $142.4 million. The figure was lower than our estimate of $153.1 million. Total segment net earned premiums, fees and other income grew 8.9% to $3.32 billion, supported by gains in both operating segments.
Principal Financial Group, Inc.’s (PFG - Free Report) second-quarter 2026 operating earnings of $2.50 per share beat the Zacks Consensus Estimate by 7.3%. The bottom line increased 16% year over year. Revenues rose 6.4% year over year to $3.99 billion, which missed the consensus mark of $4.09 billion by 2.4%.
Total expenses increased 7.6% year over year to $3.41 billion. Benefits, claims and settlement expenses rose 8.3% to $1.99 billion, while operating expenses increased 8.1% to $1.40 billion. Non-GAAP operating earnings climbed 12% to $547 million. Excluding significant variances, operating earnings advanced 13% to $528.7 million. Net income attributable to PFG declined 1% to $403.4 million.