Radian Group NYSE: RDN said its first quarter of 2026 marked the company’s first reporting period as a “global multi-line specialty insurer” following the early February closing of its $1.7 billion acquisition of Inigo, a specialty insurance carrier operating through the Lloyd’s market.
Chief Executive Officer Rick Thornberry said the company is now operating across two “complementary, non-correlated insurance businesses,” mortgage insurance and specialty insurance, each with separate risk and return characteristics. He said Inigo contributed meaningfully to results despite being included for only two months of the quarter.
“This quarter is not about declaring victory. It’s about establishing momentum,” Thornberry said. He added that Radian believes the combination of its mortgage insurance platform and Inigo’s specialty insurance business can create “a more resilient, more flexible, and more valuable future.”
Radian Posts Higher Adjusted Earnings as Inigo Contributes
Senior Executive Vice President and Interim Chief Financial Officer Dan Kobell said Radian generated net income from continuing operations of $129 million, or $0.93 per share, on a GAAP basis. Return on equity was 10.8%.
Kobell said GAAP results included certain one-time costs tied to the Inigo transaction, as well as non-cash amortization and purchase accounting adjustments. Adjusted net operating earnings were $1.27 per share, up 22% from a year earlier, while adjusted net operating return on equity rose to 14.7%, an increase of more than 130 basis points from the prior year.
Total revenue increased 58% year over year to $466 million, reflecting growth in the mortgage segment and the contribution from the new specialty segment. Book value per share rose 10% from a year earlier to $35.67, and Kobell said dividends returned to stockholders over the past year accounted for an additional 3% of book value.
Radian also reported $70 million of net investment income, up 14% from the year-earlier period, driven by higher investment balances. The company’s total investment portfolio stood at $7.1 billion and consisted of what Kobell described as well-diversified and highly rated securities.
Company Introduces Mortgage and Specialty Reporting Segments
Following the Inigo acquisition, Radian changed its reporting structure to include two insurance segments: mortgage and specialty. Kobell said a separate corporate category will include items not attributable to either segment, including holding company investment income, interest expense and certain corporate costs. Prior periods have been restated to reflect the revised structure.
In the mortgage segment, Radian’s insurance in force increased 3% year over year to $282 billion. New insurance written totaled $13.5 billion, up 42% from the prior year. Persistency remained strong at 81.3%, and Kobell noted that approximately half of the company’s insurance in-force portfolio had a mortgage rate of 5.5% or lower at quarter-end, making those policies less likely to cancel through refinancing in the near term.
Mortgage credit trends remained favorable, according to Kobell. Radian reported approximately 13,600 new defaults in the quarter, down 4% from the prior quarter, while cures increased to approximately 13,700. Cures exceeded new defaults, reducing the portfolio default rate to 2.51%. Kobell said favorable trends continued into April.
The mortgage segment recorded $36 million of favorable development from prior-period defaults, similar to recent quarters. Operating expenses in the mortgage segment declined 6% year over year to $41 million, and the mortgage expense ratio improved to 20% from 21% a year earlier.
Specialty Segment Reports 85% Combined Ratio
The specialty segment, which includes two months of Inigo performance, produced $164 million of net premiums earned. Kobell said those premiums were diversified across a range of insurance and reinsurance lines. The specialty segment represented 41% of Radian’s first-quarter net earned premiums.
The specialty segment’s total loss provision was $86 million, including $13 million of favorable net development for prior-period reserves. Kobell said the underwriting environment has become more competitive, especially in property insurance and reinsurance, but added that underwriting profitability remained strong during the quarter, helped by a low level of natural catastrophe losses.
The specialty segment reported a net expense ratio of 33% and a net combined ratio of 85%. Kobell said the results were consistent with Radian’s expectations, while cautioning that the combined ratio will vary over time.
“We intend to continue to prioritize profitability over volume and remain committed to disciplined, profitable growth,” Kobell said.
Capital Returns Resume After Acquisition
Radian resumed opportunistic share repurchases during the quarter. The company repurchased $50 million of common stock, or 1.5 million shares, in the first quarter and bought an additional $65 million in April. That brought total repurchases so far in 2026 to $115 million, or 3.3 million shares.
Kobell said Radian Guaranty paid a $140 million dividend to Radian Group in the first quarter, and the company expects dividends of at least $600 million from Radian Guaranty to Radian Group during 2026, including the first-quarter payment. Radian Guaranty’s PMIERs cushion was unchanged at $1.6 billion, which Kobell said was significantly above the required capital level.
Radian also paid a quarterly dividend to stockholders totaling $35 million. Holding company liquidity was $391 million at quarter-end.
The company previously drew $200 million on a revolving credit facility before the Inigo closing. Kobell said Radian repaid $50 million during the first quarter, leaving $150 million outstanding at quarter-end, and still expects to repay the borrowing in full during 2026. The holding company leverage ratio was 20.2% at quarter-end, and management expects it to be below 20% by the end of 2026.
During the question-and-answer session, Kobell said Radian expects $200 million to $250 million of full-year excess capital potentially available for opportunistic share repurchases after considering debt repayment, dividends and liquidity needs. He noted that the company had already used $115 million of that capacity through the first four months of the year.
Kobell also said Radian currently expects to refinance a $450 million senior note maturity due in March 2027, either later this year or early next year.
Management Addresses Specialty Pricing and Mortgage Severity
Asked about rising mortgage insurance claim severity, Kobell said the company has seen severity trend higher over recent years and quarters. He attributed the movement partly to newer loans entering default inventory with higher loan balances and higher risk in force per policy, as well as changes in claim mix and home price appreciation-related mitigation benefits. He said severity remains favorable to expectations, noting that pre-COVID severity was typically 100% or above, while current levels are in the 80% range.
On specialty insurance pricing, Thornberry said Radian expected market softening as part of its due diligence on Inigo. He said softening has been consistent with expectations, particularly after several years of high pricing, and that rate adequacy remains good in many areas despite pullbacks.
Thornberry said Inigo’s strategy is focused on managing through cycles with underwriting discipline, data and analytics, customer relationships and flexibility in capital allocation. He emphasized that Radian is prioritizing profitability rather than a specific revenue growth target.
Radian plans to hold an investor day on June 4 in New York City, where management said it expects to provide more detail on strategy, capital management and the company’s new operating structure across mortgage and specialty insurance.
About Radian Group NYSE: RDN
Radian Group Inc NYSE: RDN is a leading provider of private mortgage insurance and related risk management solutions in the United States. Through its primary subsidiary, Radian Guaranty Inc, the company underwrites borrower-paid and lender-paid mortgage insurance that protects lenders and investors from potential losses arising from borrower defaults. Radian's core business focuses on supporting residential mortgage originations and servicing by offering capital-efficient credit protection and credit risk transfer strategies.
Beyond mortgage insurance, Radian offers an array of real estate transaction services under its Radian Title division.
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