Radian Group (RDN) Q1 2025 earnings summary

Executive summary

• Net income for Q1 2025 was $145 million ($0.98 per diluted share), down from $152 million in Q1 2024, with book value per share up 11% year-over-year to $32.48.

• Primary mortgage insurance in force reached $274.2 billion, with a persistency rate of 84%–86% and a default rate decline to 2.3% from the prior quarter.

• $207 million in share repurchases (over 4% of shares outstanding) and $37 million in dividends paid, totaling $244 million returned to shareholders in Q1.

• $200 million return of capital from Radian Guaranty to the holding company was completed, enhancing future dividend capacity.

• Available holding company liquidity was $834 million, with a $2.1 billion PMIERS cushion at quarter-end.

Financial highlights

• Total revenues for Q1 2025 were $318 million, nearly flat year-over-year.

• Net premiums earned for mortgage insurance were $234 million, consistent with the prior quarter and year.

• Net investment income was $69 million, with $6 million from mortgage loans held for sale.

• Provision for losses increased to $15 million, reflecting less favorable reserve development.

• Adjusted pretax operating income was $191 million, down from $203 million in Q1 2024.

Outlook and guidance

• Operating expenses are expected to average $80 million per quarter in 2025, targeting $320 million for the year.

• Persistency rates are anticipated to remain high due to elevated interest rates.

• New quota share reinsurance agreements are expected to cede 30% of new insurance written from July 2025 to June 2027, and 15% from July 2027 to June 2028.

• Projected total distributions from Radian Guaranty to the holding company of up to $795 million in 2025.

• Share repurchases are expected to continue at a similar pace in Q2 2025, with $336 million remaining under the program.