Mortgage insurance earnings were strong in 3Q, even as business shrank

Radian Group reported third quarter net income of $198.3 million, down from $201.2 million in the second quarter, but well ahead of the $126.4 million earned in the third quarter of 2021.

But prior to the earnings report, Radian laid off 166 workers in Pennsylvania.

“Our primary mortgage insurance in force portfolio, which is the main driver of future earnings for our company, grew more than 7% year-over-year to $259 billion and credit performance remained strong,” said CEO Rick Thornberry in the earnings release. “We are managing our expense structure to align to today’s operating environment and strategically managing our capital.”

NIW was $17.6 billion in the third quarter, compared with $18.9 billion in the second quarter, and $26.6 billion in the third quarter of 2021. Radian ended the quarter ranked second in NIW, whereas three months prior, it was fourth.

However, its real estate services unit, homegenius, reported an adjusted pretax operating loss of $25.5 million for the third quarter, compared with a $5.6 million loss one year prior. Radian pulled this segment’s future earnings guidance because of the uncertainty around interest rates, George said.