Radian Group (RDN) Q4 2024 earnings summary

Executive summary

• Full-year 2024 net income was $604 million ($3.92 per diluted share), nearly flat versus 2023, with a 13.4% return on equity and book value per share up 9% to $31.33 at year-end.

• Returned $376 million to shareholders via $224 million in share repurchases and $152 million in dividends, including a 9% increase in the quarterly dividend.

• Primary mortgage insurance in force reached a record $275.1 billion, driven by $52 billion in new insurance written and high persistency rates.

• Maintained strong capital and liquidity, with $885 million in holding company liquidity and a PMIERs cushion of $2.2 billion at year-end.

• Leadership transition announced, with Derek Brummer retiring and Sumita Pandit assuming an expanded role.

Financial highlights

• Q4 2024 net income was $148 million ($0.98 per diluted share); full-year net income was $604 million ($3.92 per diluted share).

• Adjusted diluted net operating income per share was $1.09 for Q4 and $4.11 for the year.

• Total revenues for 2024 were $1.3 billion, up 4% year-over-year; net premiums earned grew 3% to $939 million.

• Net investment income for 2024 was $293 million, with a portfolio yield of 3.9%.

• Loss ratio remained at 0% for the quarter and (0.2)% for the year, with a net benefit of $2.2 million in provision for losses.

Outlook and guidance

• Positioned to achieve $20–$25 million in run-rate operating expense reductions in 2025 versus 2023.

• Persistency rates expected to remain strong, supporting insurance in force growth.

• Anticipate a modestly larger private mortgage insurance market and stable in-force premium yield in 2025.

• Scheduled contingency reserve releases projected to drive ordinary dividend capacity.

• CEO expressed optimism for 2025, citing strong capital, liquidity, and focus on expense management.