Radian Group (RDN) Q1 2026 earnings summary

Executive summary

• Completed the acquisition of Inigo, transforming into a global multi-line specialty insurer and establishing a new Specialty segment, which contributed $40 million of pretax operating income in its first two months.

• Achieved total revenue of $466 million in Q1 2026, up 58% year-over-year, driven by the Inigo acquisition and strong segment performance.

• Adjusted diluted net operating income per share rose to $1.27, up 22% year-over-year, while GAAP diluted net income per share was $0.93.

• Book value per share increased 10% year-over-year to $35.67.

• Paid $140 million dividend from Radian Guaranty to the holding company and repurchased $50 million in shares.

Financial highlights

• Net income from continuing operations was $129 million ($0.93 per share), down from $152 million in Q1 2025, with a 10.8% ROE.

• Adjusted net operating EPS grew 22% year-over-year to $1.27; adjusted net operating return on equity rose to 14.7%.

• Book value per share increased to $35.67 from $32.48 year-over-year; dividends added another 3% to book value.

• Total revenues grew 58% year-over-year to $466 million, with specialty segment now 41% of net earned premiums.

• Net investment income rose 14% year-over-year to $70 million, driven by higher balances.

Outlook and guidance

• Management expects continued strong performance in the Mortgage segment and disciplined, margin-focused growth in the Specialty segment, with a focus on underwriting profitability and selective growth.

• Radian Guaranty expects to pay over $600 million in ordinary dividends to the holding company in 2026, subject to regulatory approval.

• Holding company leverage ratio expected to fall below 20% by year-end 2026.

• No specific guidance on specialty segment combined ratio or premium growth due to market variability.

• Divestiture of Title and Real Estate Services businesses expected by end of Q3 2026.