Mortgage insurer earnings grow in 2Q

Radian Group reported second quarter net income of $201.2 million, up from $181.2 million in the first quarter and $155.2 million in the second quarter of 2021.

The Philadelphia-based company also beat Gilbert’s adjusted earnings per share estimate due to “a much larger than expected favorable development drove the beat…[as] elevated cures likely pulled forward some reserve releases.”

On a quarter-to-quarter basis, NIW was relatively flat, $18.9 billion versus $18.7 billion in the first three months of the year. In the second quarter of 2021, Radian’s NIW totaled $21.7 billion.

“Our primary mortgage insurance in force, which is the main driver of future earnings for our company, grew 7% year-over-year, and the number of new defaults in the quarter was the lowest we’ve seen in more than 20 years,” Radian’s CEO Rick Thornberry said in a press release. “Moody’s recently upgraded our company, reflecting our improved capital adequacy through risk distribution, our improving profitability metrics, our strong market position and our financial flexibility with strong liquidity.”

Its delinquent loan inventory totaled 21,861 at the end of the second quarter, compared with 25,510 as of March 31, and 40,464 on June 30, 2021.

Besides mortgage insurance, Radian has a data and analytics segment, which includes its title insurance underwriting unit.

The segment, called homegenius, recorded an adjusted pretax operating loss of $17.7 million in the second quarter, compared with a $13.5 million loss for the quarter ended March 31, and a $9.2 million loss for the quarter ended June 30, 2021.

Comments are closed.