Radian Group Inc. reported third‑quarter 2025 results that beat consensus earnings expectations, delivering diluted net income from continuing operations of $153 million, or $1.11 per diluted share. The company’s core mortgage‑insurance in‑force portfolio reached an all‑time high of $281 billion, up 4% from the previous quarter, while book value per share climbed 9% to $34.34. Revenue for the quarter was $303 million, slightly above the $298 million consensus estimate and reflecting a 1% increase driven by higher underwriting volume in the mortgage‑insurance segment, offset by a modest decline in the non‑core Mortgage Conduit and Title businesses.
The earnings beat was largely attributable to disciplined cost management and a favorable mix shift toward higher‑margin mortgage‑insurance underwriting. Operating income from continuing operations fell modestly to $199 million from $214 million in Q3 2024, but the company maintained a healthy gross‑margin of 45%, supported by lower claims costs and efficient underwriting. The company’s senior‑notes debt‑to‑capital ratio improved to 18.5% after a $200 million ordinary dividend was paid from Radian Guaranty to the holding company, underscoring strong liquidity and capital discipline.
Radian’s strategic transformation was highlighted by the announcement of a $1.7 billion acquisition of Inigo, a fast‑growing Lloyd’s specialty insurer. The deal, expected to close in Q1 2026, will broaden Radian’s product mix into high‑growth specialty lines and leverage its capital strength to capture new market opportunities. CEO Rick Thornberry said the acquisition “changes the growth dynamics for Radian by adding a high‑margin specialty insurer that complements our core mortgage‑insurance business.” The company also confirmed a divestiture plan for its Mortgage Conduit, Title and Real‑Estate Services businesses, with completion targeted no later than Q3 2026, allowing Radian to focus on its core mortgage‑insurance and the newly acquired specialty lines.
Liquidity remains robust, with $995 million in available liquidity as of September 30, 2025, and a $275 million undrawn credit facility. The company’s cash‑flow generation was strong, with $120 million of operating cash flow, supporting both the dividend payout and future growth initiatives. Management emphasized that the divestiture will simplify the organization and free capital for the Inigo integration and future specialty‑insurance expansion.
Market reaction to the earnings and strategic announcements was positive, with analysts noting the EPS beat of $0.24 per share and the company’s clear path to higher‑margin specialty insurance. The announcement of the Inigo acquisition was cited as a key driver of investor enthusiasm, reflecting confidence in Radian’s ability to scale its capital base and diversify beyond the cyclical mortgage‑insurance market.
The company’s outlook remains optimistic. Management reiterated its guidance for full‑year 2025 revenue of $4.396 billion–$4.400 billion, up from the prior $4.14 billion–$4.15 billion range, and full‑year adjusted operating income of $2.151 billion–$2.155 billion, reflecting confidence in the integration of Inigo and the continued strength of its mortgage‑insurance portfolio. The company also highlighted ongoing focus on cost discipline and strategic investments in high‑return specialty lines as it navigates the transition to a global, multi‑line specialty insurer.
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