Radian Announces Fourth Quarter and Full Year 2025 Financial Results

WAYNE, Pa.--( BUSINESS WIRE)--Radian Group Inc. (NYSE: RDN) today reported net income from continuing operations for the quarter ended December 31, 2025, of $159 million, or $1.15 per diluted share. This compares with net income from continuing operations for the quarter ended December 31, 2024, of $164 million, or $1.08 per diluted share.

Net income from continuing operations for the full year 2025 was $618 million, or $4.39 per diluted share. This compares with net income from continuing operations for the full year 2024 of $660 million, or $4.28 per diluted share.

Pretax income from continuing operations for the quarter ended December 31, 2025, was $201 million compared to $210 million for the quarter ended December 31, 2024. Pretax income from continuing operations for the full year 2025 was $791 million, compared to $846 million for the full year 2024.

Adjusted pretax operating income for the quarter ended December 31, 2025, was $204 million compared to $220 million for the quarter ended December 31, 2024. Adjusted diluted net operating income per share for the quarter ended December 31, 2025, was $1.16 compared to $1.13 for the quarter ended December 31, 2024.

Adjusted pretax operating income for the full year 2025 was $802 million compared to $867 million for the full year 2024. Adjusted diluted net operating income per share for the full year 2025 was $4.45 compared to $4.39 for the full year 2024.

Key Financial Highlights

Quarter ended

Year ended

($ in millions, except per-share amounts)

December 31,

2025

September 30,

2025

December 31,

2024

December 31,

2025

December 31,

2024

Total revenues

$301

$303

$293

$1,197

$1,206

Net income

$155

$141

$148

$583

$604

Net income from continuing operations

$159

$153

$164

$618

$660

Diluted net income from continuing operations per share

$1.15

$1.11

$1.08

$4.39

$4.28

Pretax income from continuing operations

$201

$199

$210

$791

$846

Adjusted pretax operating income (1)

$204

$206

$220

$802

$867

Adjusted diluted net operating income per share (1)

$1.16

$1.15

$1.13

$4.45

$4.39

Return on equity from continuing operations

13.5%

13.4%

14.1%

13.1%

14.6%

Adjusted net operating return on equity (1)

13.6%

13.9%

14.7%

13.3%

15.0%

New insurance written

$15,850

$15,497

$13,186

$55,166

$51,984

Net premiums earned

$237

$235

$942

$939

New defaults

14,201

13,378

13,967

51,551

50,535

As of

($ in millions, except per-share amounts)

December 31,

2025

September 30,

2025

December 31,

2024

Book value per share

$35.29

$34.34

$31.33

Accumulated other comprehensive income (loss) value per share

$(1.64)

$(1.67)

$(2.37)

PMIERs Available Assets

$5,384

$5,958

$6,039

PMIERs excess Available Assets

$1,560

$1,876

$2,158

Available holding company liquidity (2)

$1,834

$995

$885

Total investments

$5,987

$5,852

$5,702

Assets held for sale

$474

$723

$1,447

Liabilities held for sale

$364

$550

$1,240

Primary mortgage insurance in force

$282,519

$280,559

$275,126

Percentage of primary loans in default

2.56%

2.42%

2.44%

Loss reserves

$400

$388

$354

Adjusted results, including adjusted pretax operating income, adjusted diluted net operating income per share and adjusted net operating return on equity, are on a continuing operations basis and are non-GAAP financial measures on a consolidated basis. For definitions and reconciliations of these measures to the comparable GAAP measures, see Exhibits F and G.

Represents Radian Group’s available liquidity without considering available capacity under its unsecured revolving credit facility.

Book value per share at December 31, 2025, was $35.29 compared to $34.34 at September 30, 2025, and $31.33 at December 31, 2024. This represents a 13% growth in book value per share at December 31, 2025, as compared to December 31, 2024, and includes accumulated other comprehensive income (loss) of $(1.64) per share as of December 31, 2025, and $(2.37) per share as of December 31, 2024. Changes in accumulated other comprehensive income (loss) are primarily from net unrealized gains or losses on investments as a result of decreases or increases, respectively, in market interest rates.

“We delivered a strong year in 2025, driven by the consistent performance of our mortgage insurance business and the disciplined way we manage risk and capital. Just as importantly, we took meaningful steps to shape our company for the future – simplifying our focus and acquiring Inigo to expand our reach as a global multi-line specialty insurer,” said Radian’s Chief Executive Officer, Rick Thornberry. “As we look forward to the opportunities ahead in 2026, we are building from a position of strength with a focused strategy, a talented team, and the financial flexibility to invest in growth while continuing to return capital to stockholders. We believe this positions Radian to continue to deliver long-term value across market cycles.”

FOURTH QUARTER AND FULL YEAR HIGHLIGHTS

CAPITAL AND LIQUIDITY UPDATE

Radian Group

Radian Guaranty

STRATEGIC UPDATE

Discontinued Operations

Inigo Acquisition

(1)

Estimate presented on a U.K. GAAP basis. The difference between U.K. and U.S. GAAP is expected to be limited.

CONFERENCE CALL

Radian will discuss fourth quarter 2025 financial results in a conference call tomorrow, Thursday, February 19, 2026, at 11:00 a.m. Eastern time. The conference call will be webcast live on the company’s website at www.radian.com/for-investors/investor-events or at www.radian.com. The webcast is listen-only. Those interested in participating in the question-and-answer session should follow the conference call dial-in instructions below.

The call may be accessed via telephone by registering for the call here to receive the dial-in numbers and unique PIN. It is recommended that you join 10 minutes prior to the event start (although you may register and dial in at any time during the call).

A digital replay of the webcast will be available on Radian’s website approximately two hours after the live broadcast ends for a period of one year at www.radian.com/for-investors/investor-events.

In addition to the information provided in the company’s earnings news release, other statistical and financial information, which is expected to be referred to during the conference call, will be available on Radian’s website at www.radian.com, under Investors.

NON-GAAP FINANCIAL MEASURES

Radian believes that adjusted pretax operating income (loss), adjusted diluted net operating income (loss) per share and adjusted net operating return on equity, each from continuing operations (non-GAAP measures on a consolidated basis) facilitate evaluation of the company’s fundamental financial performance and provide relevant and meaningful information to investors about the ongoing operating results of the company. These measures are not recognized in accordance with accounting principles generally accepted in the United States of America (GAAP) and should not be considered in isolation or viewed as substitutes for GAAP measures of performance. The measures described below have been established in order to increase transparency for the purpose of evaluating the company’s operating trends and enabling more meaningful comparisons with Radian’s competitors.

Adjusted pretax operating income (loss) is defined as GAAP pretax income (loss) from continuing operations excluding the effects of: (i) net gains (losses) on investments and other financial instruments, and (ii) impairment of other long-lived assets and other non-operating items, if any, such as gains (losses) from the sale of lines of business, acquisition-related income (expenses) and gains (losses) on extinguishment of debt, among others. Adjusted diluted net operating income (loss) per share is calculated by dividing adjusted pretax operating income (loss), net of taxes computed using the company’s effective tax rate, by the sum of the weighted average number of common shares outstanding and all dilutive potential common shares outstanding. Adjusted net operating return on equity is calculated by dividing annualized adjusted pretax operating income (loss), net of taxes computed using the company’s effective tax rate, by average stockholders’ equity, based on the average of the beginning and ending balances for each period presented.

See Exhibit F or Radian’s website for a description of these items, as well as Exhibit G for reconciliations to the most comparable GAAP measures.

ABOUT RADIAN

As a leading U.S. private mortgage insurer, Radian Group Inc. (NYSE: RDN) provides solutions that expand access to affordable, responsible and sustainable homeownership and helps borrowers achieve their dream of owning a home. For more information www.radian.com.

FINANCIAL RESULTS AND SUPPLEMENTAL INFORMATION CONTENTS (Unaudited)

Exhibit A:

Condensed Consolidated Statements of Operations

Exhibit B:

Net Income Per Share

Exhibit C:

Condensed Consolidated Balance Sheets

Exhibit D:

Condensed Consolidated Statements of Operations Detail

Exhibit E:

Segment Information

Exhibit F:

Definition of Consolidated Non-GAAP Financial Measures

Exhibit G:

Non-GAAP Financial Measure Reconciliations

Exhibit H:

Mortgage Insurance Supplemental Information - New Insurance Written

Exhibit I:

Mortgage Insurance Supplemental Information - Primary Insurance in Force and Risk in Force

Condensed Consolidated Statements of Operations (1)

Exhibit A (page 1 of 2)

(In thousands, except per-share amounts)

2025

2024

Qtr 4

Qtr 3

Qtr 2

Qtr 1

Qtr 4

Revenues

Net premiums earned

237,192

237,103

233,526

234,044

235,276

Net investment income

62,683

63,399

61,672

61,010

62,211

Net gains (losses) on investments and other financial instruments

(1,159

)

1,285

1,851

(2,001

)

(6,750

)

Other income

1,796

1,399

1,502

1,782

1,932

Total revenues

300,512

303,186

298,551

294,835

292,669

Expenses

Provision for losses

21,588

17,886

11,954

15,340

Policy acquisition costs

4,280

7,166

7,205

6,388

7,276

Other operating expenses

56,417

62,256

69,178

57,908

58,398

Interest expense

17,189

17,184

17,428

16,489

16,550

Total expenses

99,474

104,492

105,765

96,125

82,285

Pretax income from continuing operations

201,038

198,694

192,786

198,710

210,384

Income tax provision

42,236

45,892

38,301

46,620

46,629

Net income from continuing operations

158,802

152,802

154,485

152,090

163,755

Income (loss) from discontinued operations, net of tax

(3,959

)

(11,359

)

(12,689

)

(7,532

)

(15,464

)

Net income

154,843

141,443

141,796

144,558

148,291

Diluted net income per share

Net income from continuing operations

1.15

1.11

1.03

1.08

Income (loss) from discontinued operations, net of tax

(0.03

)

(0.08

)

(0.09

)

(0.05

)

(0.10

)

Diluted net income per share

1.12

1.03

1.02

0.98

Radian Group Inc. and Subsidiaries

Condensed Consolidated Statements of Operations (1)

Exhibit A (page 2 of 2)

Years Ended December 31,

(In thousands, except per-share amounts)

2025

2024

Revenues

Net premiums earned

941,865

939,237

Net investment income

248,764

264,814

Net gains (losses) on investments and other financial instruments

(24

)

(4,347

)

Other income

6,479

6,595

Total revenues

1,197,084

1,206,299

Expenses

Provision for losses

66,768

(2,248

)

Policy acquisition costs

25,039

27,316

Other operating expenses

245,759

247,618

Interest expense

68,290

88,006

Total expenses

405,856

360,692

Pretax income from continuing operations

791,228

845,607

Income tax provision

173,049

185,292

Net income from continuing operations

618,179

660,315

Income (loss) from discontinued operations, net of tax

(35,539

)

(55,875

)

Net income

582,640

604,440

Diluted net income per share

Net income from continuing operations

4.39

4.28

Income (loss) from discontinued operations, net of tax

(0.25

)

(0.36

)

Diluted net income per share

4.14

3.92

Radian Group Inc. and Subsidiaries

Net Income Per Share

Exhibit B (page 1 of 2)

The calculation of basic and diluted net income per share is as follows.

(In thousands, except per-share amounts)

2025

2024

Qtr 4

Qtr 3

Qtr 2

Qtr 1

Qtr 4

Net income from continuing operations

158,802

152,802

154,485

152,090

163,755

Income (loss) from discontinued operations, net of tax

(3,959

)

(11,359

)

(12,689

)

(7,532

)

(15,464

)

Net income—basic and diluted

154,843

141,443

141,796

144,558

148,291

Average common shares outstanding—basic

137,032

137,003

137,376

145,618

150,302

Dilutive effect of share-based compensation arrangements (1)

1,218

923

984

2,109

1,610

Adjusted average common shares outstanding—diluted

138,250

137,926

138,360

147,727

151,912

Net income per share

Basic

Net income from continuing operations

1.16

1.12

1.04

1.09

Income (loss) from discontinued operations, net of tax

(0.03

)

(0.08

)

(0.09

)

(0.05

)

(0.10

)

Basic net income per share

1.13

1.04

1.03

0.99

Diluted

Net income from continuing operations

1.15

1.11

1.03

1.08

Income (loss) from discontinued operations, net of tax

(0.03

)

(0.08

)

(0.09

)

(0.05

)

(0.10

)

Diluted net income per share

1.12

1.03

1.02

0.98

(1)

The following number of shares of our common stock equivalents issued under our share-based compensation arrangements are not included in the calculation of diluted net income per share because their effect would be anti-dilutive.

2025

2024

(In thousands)

Qtr 4

Qtr 3

Qtr 2

Qtr 1

Qtr 4

Shares of common stock equivalents

—

Radian Group Inc. and Subsidiaries

Net Income Per Share

Exhibit B (page 2 of 2)

Years Ended December 31,

(In thousands, except per-share amounts)

2025

2024

Net income from continuing operations—basic and diluted

618,179

660,315

Income (loss) from discontinued operations, net of tax

(35,539

)

(55,875

)

Net income—basic and diluted

582,640

604,440

Average common shares outstanding—basic

139,445

152,465

Dilutive effect of share-based compensation arrangements (1)

1,366

1,726

Adjusted average common shares outstanding—diluted

140,811

154,191

Net income per share

Basic

Net income from continuing operations

4.43

4.33

Income (loss) from discontinued operations, net of tax

(0.25

)

(0.37

)

Basic net income per share

4.18

3.96

Diluted

Net income from continuing operations

4.39

4.28

Income (loss) from discontinued operations, net of tax

(0.25

)

(0.36

)

Diluted net income per share

4.14

3.92

(1)

Years Ended December 31,

(In thousands)

2025

2024

Shares of common stock equivalents

—

Radian Group Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

Exhibit C

(In thousands, except per-share amounts)

Dec 31,

Sep 30,

Jun 30,

Mar 31,

Dec 31,

2025

2024

Assets

Investments

5,987,318

5,852,034

5,680,489

5,725,077

5,701,831

Cash

24,829

15,258

19,013

16,026

19,220

Restricted cash

Accrued investment income

40,285

43,031

43,467

41,973

44,308

Accounts and notes receivable

120,197

128,765

125,744

121,052

120,990

Reinsurance recoverable

48,806

44,837

41,653

38,188

34,559

Deferred policy acquisition costs

19,018

16,711

17,248

17,855

17,746

Property and equipment, net

17,165

18,663

20,236

21,754

23,369

Prepaid federal income taxes

1,056,329

1,012,629

997,805

921,080

Other assets

334,172

350,350

390,962

367,501

358,962

Assets held for sale

474,268

722,514

2,267,056

1,517,393

1,447,440

Total assets

8,122,397

8,204,803

9,603,701

8,787,928

8,689,535

Liabilities and stockholders’ equity

Reserve for losses and loss adjustment expense

399,946

387,650

377,231

369,090

354,431

Unearned premiums

159,341

166,165

171,901

178,931

188,337

Senior notes

1,067,908

1,067,251

1,066,603

1,065,965

1,065,337

Other borrowings

41,207

60,401

98,685

32,122

45,865

Net deferred tax liability

942,193

910,256

864,421

826,692

772,232

Other liabilities

366,470

410,232

461,335

415,986

399,282

Liabilities held for sale

363,818

550,399

2,070,844

1,312,316

1,240,193

Total liabilities

3,340,883

3,552,354

5,111,020

4,201,102

4,065,677

Common stock

157

162

168

Treasury stock

(989,745

)

(989,352

)

(988,764

)

(969,396

)

(968,246

)

Additional paid-in capital

861,211

855,320

847,399

1,048,738

1,246,826

Retained earnings

5,132,050

5,012,742

4,906,830

4,802,038

4,695,348

Accumulated other comprehensive income (loss)

(222,159

)

(226,418

)

(272,941

)

(294,716

)

(350,238

)

Total stockholders’ equity

4,781,514

4,652,449

4,492,681

4,586,826

4,623,858

Total liabilities and stockholders’ equity

8,122,397

8,204,803

9,603,701

8,787,928

8,689,535

Shares outstanding

135,498

135,473

135,395

141,220

147,569

Book value per share

35.29

34.34

33.18

32.48

31.33

Holding company debt-to-capital ratio (1)

18.3

18.7

19.2

18.9

18.7

(1)

Calculated as carrying value of senior notes, which were issued and are owed by our holding company, divided by carrying value of senior notes and stockholders’ equity. This holding company ratio does not include the effects of amounts owed by our subsidiaries related to other borrowings.

Radian Group Inc. and Subsidiaries

Condensed Consolidated Statements of Operations Detail

Exhibit D (page 1 of 5)

Net Premiums Earned

2025

2024

(In thousands)

Qtr 4

Qtr 3

Qtr 2

Qtr 1

Qtr 4

Direct

Premiums earned, excluding revenue from cancellations

266,460

264,272

260,336

260,705

261,017

Single Premium Policy cancellations

2,005

1,821

1,708

1,206

2,363

Total direct

268,465

266,093

262,044

261,911

263,380

Ceded

Premiums earned, excluding revenue from cancellations

(48,294

)

(45,870

)

(43,849

)

(42,288

)

(43,239

)

Single Premium Policy cancellations (1)

1,788

1,653

1,328

902

952

Profit commission - other (2)

15,233

15,227

14,003

13,519

14,183

Total ceded

(31,273

)

(28,990

)

(28,518

)

(27,867

)

(28,104

)

Net premiums earned

237,192

237,103

233,526

234,044

235,276

(1)

Includes the impact of related profit commissions.

(2)

Represents the profit commission under our QSR Program, excluding the impact of Single Premium Policy cancellations.

Net Investment Income

2025

2024

(In thousands)

Qtr 4

Qtr 3

Qtr 2

Qtr 1

Qtr 4

Fixed maturities

51,655

57,614

57,354

56,649

57,129

Equity securities

1,798

2,446

2,634

2,145

3,350

Short-term investments

10,362

4,503

2,842

3,508

3,009

Other (1)

(1,132

)

(1,164

)

(1,158

)

(1,292

)

(1,277

)

Net investment income

62,683

63,399

61,672

61,010

62,211

(1)

Includes investment management expenses, as well as the net impact from our securities lending activities.

Provision for Losses

2025

2024

(In thousands)

Qtr 4

Qtr 3

Qtr 2

Qtr 1

Qtr 4

Current period defaults (1)

57,047

52,963

47,912

53,740

55,795

Prior period defaults (2)

(35,459

)

(35,077

)

(35,958

)

(38,400

)

(55,734

)

Total provision for losses

21,588

17,886

11,954

15,340

(1)

Related to defaulted loans with the most recent default notice dated in the period indicated. For example, if a loan had defaulted in a prior period, but then subsequently cured and later re-defaulted in the current period, the default would be considered a current period default.

(2)

Related to defaulted loans with a default notice dated in a period earlier than the period indicated, which have been continuously in default since that time.

Radian Group Inc. and Subsidiaries

Condensed Consolidated Statements of Operations Detail

Exhibit D (page 2 of 5)

Other Operating Expenses

2025

2024

(In thousands)

Qtr 4

Qtr 3

Qtr 2

Qtr 1

Qtr 4

Salaries and other base employee expenses

25,086

24,259

26,932

26,139

23,393

Variable and share-based incentive compensation

16,768

16,115

27,335

15,265

15,842

Other general operating expenses (1)

22,589

29,438

21,986

23,227

25,783

Ceding commissions

(8,026

)

(7,556

)

(7,075

)

(6,723

)

(6,620

)

Total

56,417

62,256

69,178

57,908

58,398

(1)

Includes $2 million and $9 million in the fourth and third quarter of 2025, respectively, of acquisition-related expenses.

Interest Expense

2025

2024

(In thousands)

Qtr 4

Qtr 3

Qtr 2

Qtr 1

Qtr 4

Senior notes

15,829

15,819

15,810

15,800

15,791

Revolving credit facility

389

258

741

264

356

FHLB advances

458

1,107

877

425

403

Loss on extinguishment of debt

513

—

Total interest expense

17,189

17,184

17,428

16,489

16,550

Discontinued Operations

2025

2024

(In thousands)

Qtr 4

Qtr 3

Qtr 2

Qtr 1

Qtr 4

Revenues

Net premiums earned

5,248

4,624

3,995

2,634

3,286

Services revenue

13,640

12,352

10,882

11,943

11,989

Net investment income

7,089

10,744

11,097

7,564

9,099

Net gains (losses) on investments and other financial instruments

(576

)

2,191

(6,703

)

1,278

(1,541

)

Income (loss) on consolidated VIEs

—

(2,129

)

185

428

(467

)

Other income

(176

)

(332

)

(568

)

826

Total revenues

25,225

27,450

19,453

23,279

23,192

Expenses

Provision for losses

311

129

143

(173

)

(685

)

Cost of services

9,735

8,729

8,412

8,673

9,769

Other operating expenses

16,136

23,732

20,225

19,039

29,403

Interest expense

4,802

8,105

8,446

6,010

5,963

Total expenses

30,984

40,695

37,226

33,549

44,450

Pretax income (loss) from discontinued operations

(5,759

)

(13,245

)

(17,773

)

(10,270

)

(21,258

)

Income tax provision (benefit)

(1,800

)

(1,886

)

(5,084

)

(2,738

)

(5,794

)

Income (loss) from discontinued operations, net of tax

(3,959

)

(11,359

)

(12,689

)

(7,532

)

(15,464

)

Radian Group Inc. and Subsidiaries

Condensed Consolidated Statements of Operations Detail

Exhibit D (page 3 of 5)

Net Premiums Earned

Years Ended December 31,

(In thousands)

2025

2024

Direct

Premiums earned, excluding revenue from cancellations

1,051,773

1,040,678

Single Premium Policy cancellations

6,740

8,336

Total direct

1,058,513

1,049,014

Ceded

Premiums earned, excluding revenue from cancellations

(180,301

)

(164,055

)

Single Premium Policy cancellations (1)

5,671

2,390

Profit commission - other (2)

57,982

51,888

Total ceded

(116,648

)

(109,777

)

Net premiums earned

941,865

939,237

(1)

Includes the impact of related profit commissions.

(2)

The amounts represent the profit commission under our QSR Program, excluding the impact of Single Premium Policy cancellations.

Net Investment Income

Years Ended December 31,

(In thousands)

2025

2024

Fixed maturities

223,271

231,235

Equity securities

9,024

12,003

Short-term investments

21,215

26,908

Other (1)

(4,746

)

(5,332

)

Net investment income

248,764

264,814

(1)

Includes investment management expenses, as well as the net impact from our securities lending activities.

Radian Group Inc. and Subsidiaries

Condensed Consolidated Statements of Operations Detail

Exhibit D (page 4 of 5)

Provision for Losses

Years Ended December 31,

(In thousands)

2025

2024

Current period defaults (1)

211,355

197,719

Prior period defaults (2)

(144,587

)

(199,967

)

Total provision for losses

66,768

(2,248

)

(1)

(2)

Related to defaulted loans with a default notice dated in a period earlier than the period indicated, which have been continuously in default since that time.

Other Operating Expenses

Years Ended December 31,

(In thousands)

2025

2024

Salaries and other base employee expenses

102,416

102,679

Variable and share-based incentive compensation

75,482

63,272

Other general operating expenses (1)

97,240

106,164

Ceding commissions

(29,379

)

(24,497

)

Total

245,759

247,618

(1)

Includes $10 million in 2025 primarily comprised of acquisition-related expenses. Includes $13 million in 2024, of impairment of long-lived assets, consisting of impairments to our internal-use software and lease-related assets.

Interest Expense

Years Ended December 31,

(In thousands)

2025

2024

Senior notes

63,258

80,020

FHLB advances

2,867

2,430

Revolving credit facility

1,652

1,281

Loss on extinguishment of debt

513

4,275

Total interest expense

68,290

88,006

Radian Group Inc. and Subsidiaries

Condensed Consolidated Statements of Operations Detail

Exhibit D (page 5 of 5)

Discontinued Operations

Years Ended December 31,

(In thousands)

2025

2024

Revenues

Net premiums earned

16,501

12,046

Services revenue

48,817

49,246

Net investment income

36,494

27,879

Net gains (losses) on investments and other financial instruments

(3,810

)

(5,767

)

Income (loss) on consolidated VIEs

(1,516

)

Other income

(1,079

)

583

Total revenues

95,407

83,985

Expenses

Provision for losses

410

(266

)

Cost of services

35,549

37,738

Other operating expenses

79,132

100,822

Interest expense

27,363

20,008

Total expenses

142,454

158,302

Pretax income (loss) from discontinued operations

(47,047

)

(74,317

)

Income tax provision (benefit)

(11,508

)

(18,442

)

Income (loss) from discontinued operations, net of tax

(35,539

)

(55,875

)

Radian Group Inc. and Subsidiaries

Segment Information

Exhibit E (page 1 of 2)

In the third quarter of 2025, Radian Group’s board of directors approved a divestiture plan of its Mortgage Conduit, Title and Real Estate Services businesses. As a result, the results for these businesses are reflected in income (loss) from discontinued operations, net of tax, in our condensed consolidated statements of operations for all periods presented. See Exhibit D for details on our discontinued operations.

Summarized financial information concerning our one reportable segment, Mortgage Insurance, following such reclassification, for the periods indicated is as follows. For a definition of adjusted pretax operating income, along with a reconciliation to its most comparable GAAP measure, see Exhibits F and G.

Adjusted Pretax Operating Income

2025

2024

(In thousands)

Qtr 4

Qtr 3

Qtr 2

Qtr 1

Qtr 4

Net premiums written

234,431

235,733

231,596

230,250

231,979

(Increase) decrease in unearned premiums

2,761

1,370

1,930

3,794

3,297

Net premiums earned

237,192

237,103

233,526

234,044

235,276

Net investment income

62,683

63,399

61,672

61,010

62,211

Other income

1,796

1,399

1,503

1,781

1,931

Total

301,671

301,901

296,701

296,835

299,418

Provision for losses

21,588

17,886

11,954

15,340

Policy acquisition costs

4,280

7,166

7,204

6,389

7,276

Other operating expenses

55,562

53,573

69,179

57,523

55,224

Interest expense

16,676

17,184

17,428

16,489

16,549

Total

98,106

95,809

105,765

95,741

79,110

Adjusted pretax operating income

203,565

206,092

190,936

201,094

220,308

Selected Mortgage Insurance Key Ratios

2025

2024

(In thousands)

Qtr 4

Qtr 3

Qtr 2

Qtr 1

Qtr 4

Loss ratio (1)

9.1

7.5

5.1

6.6

0.0

Expense ratio (2)

25.2

25.6

32.7

27.3

26.6

(1)

Calculated as provision for losses expressed as a percentage of net premiums earned.

(2)

Calculated as operating expenses (which consist of policy acquisition costs and other operating expenses) expressed as a percentage of net premiums earned.

Radian Group Inc. and Subsidiaries

Segment Information

Exhibit E (page 2 of 2)

Adjusted Pretax Operating Income

Years Ended December 31,

(In thousands)

2025

2024

Net premiums written

932,010

930,149

(Increase) decrease in unearned premiums

9,855

9,088

Net premiums earned

941,865

939,237

Net investment income

248,764

264,814

Other income

6,479

6,595

Total

1,197,108

1,210,646

Provision for losses

66,768

(2,248

)

Policy acquisition costs

25,039

27,316

Other operating expenses

235,837

234,632

Interest expense

67,777

83,732

Total

395,421

343,432

Adjusted pretax operating income

801,687

867,214

Selected Mortgage Insurance Key Ratios

Years Ended December 31,

(In thousands)

2025

2024

Loss ratio (1)

7.1

(0.2

Expense ratio (2)

27.7

27.9

(1)

Calculated as provision for losses expressed as a percentage of net premiums earned.

(2)

Calculated as operating expenses (which consist of policy acquisition costs and other operating expenses) expressed as a percentage of net premiums earned.

Radian Group Inc. and Subsidiaries

Definition of Non-GAAP Financial Measures

Exhibit F (page 1 of 2)

Use of Non-GAAP Financial Measures

In addition to the traditional GAAP financial measures, we have presented “adjusted pretax operating income (loss),” “adjusted diluted net operating income (loss) per share” and “adjusted net operating return on equity,” which are non-GAAP financial measures for the consolidated company on a continuing operations basis, among our key performance indicators to evaluate our fundamental financial performance. These non-GAAP financial measures align with the way our business performance is evaluated by both management and by our board of directors. These measures have been established in order to increase transparency for the purposes of evaluating our operating trends and enabling more meaningful comparisons with our peers. Although on a consolidated basis adjusted pretax operating income (loss), adjusted diluted net operating income (loss) per share and adjusted net operating return on equity are non-GAAP financial measures, we believe these measures aid in understanding the underlying performance of our operations. Our senior management, including our Chief Executive Officer (Radian’s chief operating decision maker), uses adjusted pretax operating income (loss) as our primary measure to evaluate the fundamental financial performance of our businesses and to allocate resources to them.

The results of our Mortgage Conduit, Title and Real Estate Services businesses are included in income (loss) from discontinued operations, net of tax, for all periods presented herein. The calculation of adjusted pretax operating income, as detailed below, excludes income (loss) from discontinued operations, net of tax, for all periods presented herein. As a result, the calculations of adjusted diluted net operating income per share and adjusted net operating return on equity also exclude income (loss) from discontinued operations, net of tax, for all periods presented herein.

Adjusted pretax operating income (loss) is defined as GAAP pretax income (loss) from continuing operations excluding the effects of: (i) net gains (losses) on investments and other financial instruments and (ii) impairment of other long-lived assets and other non-operating items, if any, such as gains (losses) from the sale of lines of business, acquisition-related income (expenses) and gains (losses) on extinguishment of debt, among others. Adjusted diluted net operating income (loss) per share is calculated by dividing adjusted pretax operating income (loss), net of taxes, computed using the company’s effective tax rate, by the sum of the weighted average number of common shares outstanding and all dilutive potential common shares outstanding. Adjusted net operating return on equity is calculated by dividing annualized adjusted pretax operating income (loss), net of taxes computed using the company’s effective tax rate, by average stockholders’ equity, based on the average of the beginning and ending balances for each period presented.

Although adjusted pretax operating income (loss) excludes certain items that have occurred in the past and are expected to occur in the future, the excluded items represent those that are: (i) not viewed as part of the operating performance of our primary activities or (ii) not expected to result in an economic impact equal to the amount reflected in pretax income (loss) from continuing operations. These adjustments, along with the reasons for their treatment, are described below.

(1)

Net gains (losses) on investments and other financial instruments. The recognition of realized investment gains or losses can vary significantly across periods as the activity is highly discretionary based on the timing of individual securities sales due to such factors as market opportunities, our tax and capital profile and overall market cycles. Unrealized gains and losses arise primarily from changes in the market value of our investments that are classified as trading or equity securities. These valuation adjustments may not necessarily result in realized economic gains or losses.

Trends in the profitability of our fundamental operating activities can be more clearly identified without the fluctuations of these realized and unrealized gains or losses and changes in fair value of other financial instruments. Except for certain investments and other financial instruments attributable to specific operating segments, we do not view them to be indicative of our fundamental operating activities.

(2)

Impairment of other long-lived assets and other non-operating items, if any. Impairment of other long-lived assets and other non-operating items includes activities that we do not view to be indicative of our fundamental operating activities, such as: (i) impairment of internal-use software and other long-lived assets; (ii) gains (losses) from the sale of lines of business; (iii) acquisition-related income and expenses; and (iv) gains (losses) on extinguishment of debt.

Radian Group Inc. and Subsidiaries

Definition of Non-GAAP Financial Measures

Exhibit F (page 2 of 2)

See Exhibit G for the reconciliations of the most comparable GAAP measures, pretax income (loss) from continuing operations, diluted net income (loss) from continuing operations per share and return on equity from continuing operations to our non-GAAP financial measures for the consolidated company, adjusted pretax operating income (loss), adjusted diluted net operating income (loss) per share and adjusted net operating return on equity, respectively.

Total adjusted pretax operating income (loss), adjusted diluted net operating income (loss) per share and adjusted net operating return on equity are not measures of overall profitability, and therefore, should not be considered in isolation or viewed as substitutes for GAAP pretax income (loss) from continuing operations, diluted net income (loss) from continuing operations per share or return on equity from continuing operations. Our definitions of adjusted pretax operating income (loss), adjusted diluted net operating income (loss) per share and adjusted net operating return on equity may not be comparable to similarly-named measures reported by other companies.

Radian Group Inc. and Subsidiaries

Non-GAAP Financial Measure Reconciliations

Exhibit G (page 1 of 3)

Reconciliation of Pretax Income from Continuing Operations to Adjusted Pretax Operating Income

2025

2024

(In thousands)

Qtr 4

Qtr 3

Qtr 2

Qtr 1

Qtr 4

Pretax income from continuing operations

201,038

198,694

192,786

198,710

210,384

Less reconciling income (expense) items

Net gains (losses) on investments and other financial instruments

(1,159

)

1,285

1,850

(2,000

)

(6,750

)

Impairment of other long-lived assets and other non-operating items (1)

(1,368

)

(8,683

)

—

(384

)

(3,174

)

Total adjusted pretax operating income

203,565

206,092

190,936

201,094

220,308

(1)

Relates primarily to acquisition-related expenses for the 2025 periods and impairment of other long-lived assets for 2024, which are included in other operating expenses on the Condensed Consolidated Statement of Operations in Exhibit A.

Reconciliation of Diluted Net Income from Continuing Operations Per Share

to Adjusted Diluted Net Operating Income Per Share

2025

2024

Qtr 4

Qtr 3

Qtr 2

Qtr 1

Qtr 4

Diluted net income from continuing operations per share

1.15

1.11

1.03

1.08

Less per-share impact of reconciling income (expense) items

Net gains (losses) on investments and other financial instruments

(0.01

)

0.01

(0.02

)

(0.04

)

Impairment of other long-lived assets and other non-operating items

(0.01

)

(0.06

)

—

(0.02

)

Income tax (provision) benefit on reconciling income (expense) items (1)

0.01

(0.01

)

0.01

Per-share impact of reconciling income (expense) items

(0.01

)

(0.04

)

—

(0.01

)

(0.05

)

Adjusted diluted net operating income per share

1.16

1.15

1.11

1.04

1.13

(1)

Calculated using the company’s federal statutory tax rate of 21%.

Radian Group Inc. and Subsidiaries

Non-GAAP Financial Measure Reconciliations

Exhibit G (page 2 of 3)

Reconciliation of Return on Equity from Continuing Operations to Adjusted Net Operating Return on Equity (1)

2025

2024

Qtr 4

Qtr 3

Qtr 2

Qtr 1

Qtr 4

Return on equity from continuing operations (1)

13.5

13.4

13.6

13.2

14.1

Less impact of reconciling income (expense) items (2)

Net gains (losses) on investments and other financial instruments

(0.1

0.1

(0.3

(0.6

Impairment of other long-lived assets and other non-operating items

(0.1

(0.7

—

(0.2

Income tax (provision) benefit on reconciling income (expense) items (3)

0.1

—

0.1

0.2

Impact of reconciling income (expense) items

(0.1

(0.5

0.1

(0.2

(0.6

Adjusted net operating return on equity

13.6

13.9

13.5

13.4

14.7

(1)

Calculated by dividing annualized net income from continuing operations by average stockholders’ equity, based on the average of the beginning and ending balances for each period presented.

(2)

Annualized, as a percentage of average stockholders’ equity.

(3)

Calculated using the company’s federal statutory tax rate of 21%.

Reconciliation of Pretax Income from Continuing Operations to Adjusted Pretax Operating Income

Years Ended December 31,

(In thousands)

2025

2024

Pretax income from continuing operations

791,228

845,607

Less reconciling income (expense) items

Net gains (losses) on investments and other financial instruments

(24

)

(4,347

)

Impairment of other long-lived assets and other non-operating items (1)

(10,435

)

(17,260

)

Total adjusted pretax operating income

801,687

867,214

(1)

Relates primarily to acquisition-related expenses for 2025 and impairment of other long-lived assets for 2024, which are included in other operating expenses on the Condensed Consolidated Statement of Operations in Exhibit A.

Radian Group Inc. and Subsidiaries

Non-GAAP Financial Measure Reconciliations

Exhibit G (page 3 of 3)

Reconciliation of Diluted Net Income from Continuing Operations Per Share to Adjusted Diluted Net Operating Income Per Share

Years Ended December 31,

2025

2024

Diluted net income from continuing operations per share

4.39

4.28

Less per-share impact of reconciling income (expense) items

Net gains (losses) on investments and other financial instruments

—

(0.03

)

Impairment of other long-lived assets and other non-operating items

(0.08

)

(0.11

)

Income tax (provision) benefit on reconciling income (expense) items (1)

0.02

0.03

Per-share impact of reconciling income (expense) items

(0.06

)

(0.11

)

Adjusted diluted net operating income per share (1)

4.45

4.39

(1)

Calculated using the company’s federal statutory tax rate of 21%.

Reconciliation of Return on Equity from Continuing Operations to Adjusted Net Operating Return on Equity (1)

Years Ended December 31,

2025

2024

Return on equity from continuing operations (1)

13.1

14.6

Less impact of reconciling income (expense) items (2)

Net gains (losses) on investments and other financial instruments

—

(0.1

Impairment of other long-lived assets and other non-operating items

(0.2

(0.4

Income tax (provision) benefit on reconciling income (expense) items (3)

—

0.1

Impact of reconciling income (expense) items

(0.2

(0.4

Adjusted net operating return on equity

13.3

15.0

(1)

Calculated by dividing net income from continuing operations by average stockholders’ equity.

(2)

As a percentage of average stockholders’ equity.

(3)

Calculated using the company’s federal statutory tax rate of 21%.

See Exhibit F for additional information on our non-GAAP financial measures.

Radian Group Inc. and Subsidiaries

Mortgage Insurance Supplemental Information - New Insurance Written

Exhibit H

2025

2024

($ in millions)

Qtr 4

Qtr 3

Qtr 2

Qtr 1

Qtr 4

NIW

15,850

15,497

14,330

9,489

13,186

NIW by premium type

Direct monthly and other recurring premiums

97.2

96.4

Direct single premiums

2.8

3.6

NIW for purchases

85.2

94.8

94.6

95.6

90.4

NIW for refinances

14.8

5.2

5.4

4.4

9.6

NIW by FICO score (1)

>=740

65.5

63.5

68.2

68.1

71.7

680-739

29.7

31.8

27.0

23.3

620-679

4.8

4.7

4.8

4.9

5.0

<=619

0.0

Total NIW

100.0

NIW by LTV (1)

95.01% and above

17.3

16.3

16.7

15.6

15.9

90.01% to 95.00%

44.0

46.5

44.0

41.5

37.5

85.01% to 90.00%

29.9

29.2

30.1

32.3

31.7

85.00% and below

8.8

8.0

9.2

10.6

14.9

Total NIW

100.0

Radian Group Inc. and Subsidiaries

Mortgage Insurance Supplemental Information - Primary Insurance in Force and Risk in Force

Exhibit I

2025

2024

($ in millions)

Qtr 4

Qtr 3

Qtr 2

Qtr 1

Qtr 4

Primary IIF

282,519

280,559

276,745

274,159

275,126

Primary RIF (1)

74,704

74,039

72,820

71,958

72,074

Primary RIF by premium type

Direct monthly and other recurring premiums

91.0

90.7

90.3

90.1

90.0

Direct single premiums

9.0

9.3

9.7

9.9

10.0

Primary RIF by FICO score (2)

>=740

60.7

60.6

60.3

60.1

680-739

32.4

32.3

32.2

32.4

32.6

620-679

6.7

6.8

6.9

7.0

<=619

0.2

0.3

Total RIF

100.0

Primary RIF by LTV (2)

95.01% and above

20.7

20.4

20.2

20.0

19.8

90.01% to 95.00%

48.6

48.3

48.0

47.9

85.01% to 90.00%

26.4

26.8

27.1

27.3

85.00% and below

4.3

4.5

4.7

4.8

5.0

Total RIF

100.0

Persistency Rate (12 months ended)

83.6

83.8

83.7

83.6

Persistency Rate (quarterly, annualized) (3)

81.6

84.2

83.8

85.7

82.7

(1)

RIF is presented on a gross basis and includes the amount ceded under reinsurance.

(2)

At origination.

(3)

The Persistency Rate on a quarterly, annualized basis is calculated based on loan-level detail for the quarter shown. It may be impacted by seasonality or other factors, including the level of refinance activity during the applicable periods and may not be indicative of full-year trends.

FORWARD-LOOKING STATEMENTS

All statements in this press release that address events, developments or results that we expect or anticipate may occur in the future are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the U.S. Private Securities Litigation Reform Act of 1995. In most cases, forward-looking statements may be identified by words such as “anticipate,” “may,” “will,” “could,” “should,” “would,” “expect,” “intend,” “plan,” “goal,” “pursue,” “contemplate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “seek,” “strategy,” “future,” “likely” or the negative or other variations on these words and other similar expressions. These statements, which may include, without limitation, projections regarding our future performance and financial condition and statements regarding the planned divestitures of our Mortgage Conduit, Title and Real Estate Services businesses, are made on the basis of management’s current views and assumptions with respect to future events. These statements speak only as of the date they were made, and we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. We operate in a changing environment where new risks emerge from time to time and it is not possible for us to predict all risks that may affect us. The forward-looking statements are not guarantees of future performance, and the forward-looking statements, as well as our prospects as a whole, are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements. These risks and uncertainties include, without limitation:

For more information regarding these risks and uncertainties as well as certain additional risks that we face, you should refer to “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024 and its quarterly report on Form 10-Q for the quarterly period ended September 30, 2025, as well as subsequent reports and registration statements filed from time to time with the U.S. Securities and Exchange Commission. We caution you not to place undue reliance on these forward-looking statements, which are current only as of the date on which we issued this press release. We do not intend to, and we disclaim any duty or obligation to, update or revise any forward-looking statements to reflect new information or future events or for any other reason.