Radian Announces Third Quarter 2025 Financial Results

— Company on track to acquire Inigo, a highly profitable Lloyd's specialty insurer, for $1.7 billion —

— Following a comprehensive strategic review, announced divestiture plan for Mortgage Conduit, Title and Real Estate Services businesses —

— Inigo acquisition, along with divestitures, set to transform Radian into global multi-line specialty insurer —

— Third quarter net income from continuing operations of $153 million, or $1.11 per diluted share —

— Book value per share growth of 9% year-over-year to $34.34 —

— Primary mortgage insurance in force grew to an all-time high of $281 billion —

— $200 million ordinary dividend paid from Radian Guaranty to holding company during third quarter —

Radian Group Inc. (NYSE:RDN) today reported diluted net income from continuing operations for the quarter ended September 30, 2025, of $153 million, or $1.11 per share. This compares with diluted net income from continuing operations for the quarter ended September 30, 2024, of $167 million, or $1.09 per share.

Pretax income from continuing operations for the quarter ended September 30, 2025, was $199 million compared to $214 million for the quarter ended September 30, 2024. Adjusted pretax operating income for the quarter ended September 30, 2025, was $206 million compared to $217 million for the quarter ended September 30, 2024. Adjusted diluted net operating income per share for the quarter ended September 30, 2025, was $1.15 compared to $1.10 for the quarter ended September 30, 2024.

Book value per share at September 30, 2025, was $34.34 compared to $33.18 at June 30, 2025, and $31.37 at September 30, 2024. This represents a 9% growth in book value per share at September 30, 2025, as compared to September 30, 2024, and includes accumulated other comprehensive income (loss) of $(1.67) per share as of September 30, 2025, and $(1.56) per share as of September 30, 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 excellent financial results during the quarter and announced our plans to strategically transform Radian into a global, multi-line specialty insurer," said Radian's Chief Executive Officer Rick Thornberry. "Our results demonstrate the strength and consistency of our business, driven by a high-quality mortgage insurance portfolio, disciplined capital management, and deep customer relationships."

Thornberry added, "The acquisition of Inigo, a highly profitable specialty insurer, is expected to significantly expand our total addressable market, create meaningful capital synergies, and enhance our ability to allocate our capital where we see the greatest opportunity for economic value and profitable growth. As we look to the future, we are excited about what both teams can accomplish together."

THIRD QUARTER HIGHLIGHTS

• Mortgage insurance new insurance written was $15.5 billion in the third quarter of 2025 compared to $14.3 billion in the second quarter of 2025 and $13.5 billion in the third quarter of 2024.
  • Refinances accounted for 5% of total NIW in the third quarter of 2025 compared to 5% in the second quarter of 2025 and 4% in the third quarter of 2024.
  • Additional details regarding NIW may be found in Exhibit H.
• Total primary mortgage insurance in force of $280.6 billion as of September 30, 2025, compared to $276.7 billion as of June 30, 2025, and $274.7 billion as of September 30, 2024.
  • Persistency, which is the percentage of mortgage insurance that remains in force after a twelve-month period, was 84% for the twelve months ended September 30, 2025, compared to 84% for the twelve months ended June 30, 2025, and 84% for the twelve months ended September 30, 2024.
  • Annualized persistency for the three months ended September 30, 2025, was 84% compared to 84% for the three months ended June 30, 2025, and 84% for the three months ended September 30, 2024.
  • Additional details regarding our primary mortgage insurance in force may be found in Exhibit I.
• Net mortgage insurance premiums earned were $237 million for the third quarter of 2025 compared to $234 million for the second quarter of 2025 and $235 million for the third quarter of 2024.
  • Mortgage insurance in force portfolio premium yield was 37.9 basis points in the third quarter of 2025. This compares to 37.8 basis points in the second quarter of 2025 and 38.2 basis points in the third quarter of 2024.
  • Total net mortgage insurance premium yield, which includes the impact of ceded premiums earned and accrued profit commission, was 34.0 basis points in the third quarter of 2025. This compares to 33.9 basis points in the second quarter of 2025 and 34.4 basis points in the third quarter of 2024.
  • Additional details regarding premiums earned may be found in Exhibit D.
• The mortgage insurance provision for losses was $18 million in the third quarter of 2025 compared to $12 million in the second quarter of 2025 and $6 million in the third quarter of 2024.
  • Favorable reserve development on prior period defaults was $35 million in the third quarter of 2025 compared to $36 million in the second quarter of 2025 and $51 million in the third quarter of 2024.
  • The number of primary delinquent loans was 23,819 as of September 30, 2025, compared to 22,258 as of June 30, 2025, and 22,350 as of September 30, 2024.
  • The loss ratio in the third quarter of 2025 was 8% compared to 5% in the second quarter of 2025 and 3% in the third quarter of 2024.
  • Total mortgage insurance claims paid were $10 million in the third quarter of 2025 compared to $7 million in the second quarter of 2025 and $3 million in the third quarter of 2024.
  • Additional details regarding mortgage insurance provision for losses may be found in Exhibit D.
• Other operating expenses were $62 million in the third quarter of 2025 compared to $69 million in the second quarter of 2025 and $64 million in the third quarter of 2024.
  • Other operating expenses decreased in third quarter of 2025 as a result of a decline in variable and share-based incentive compensation expense, which was elevated in the second quarter of 2025 primarily due to the timing of our annual share-based incentive grants in that quarter, partially offset by non-operating acquisition-related expenses of $9 million incurred during the third quarter of 2025. See "Strategic Update" below for additional details on our pending acquisition of Inigo Limited ("Inigo"), a Lloyd's specialty insurer.
  • Additional details regarding other operating expenses may be found in Exhibit D.

CAPITAL AND LIQUIDITY UPDATE

Radian Group

• Radian Group paid a dividend on its common stock in the amount of $0.255 per share, totaling $35 million, in the third quarter of 2025.
• Radian Group's available liquidity increased from $784 million as of June 30, 2025, to $995 million as of September 30, 2025. Total holding company liquidity, including the company's undrawn $275 million unsecured revolving credit facility, was $1.3 billion as of September 30, 2025.
• On November 4, 2025, Radian Group entered into a new $500 million unsecured revolving credit facility with a syndicate of bank lenders, led by Royal Bank of Canada and Citizens Bank, which has a maturity date of November 4, 2030. The credit facility amends and replaces Radian's previously existing $275 million facility, and includes an accordion feature that allows Radian Group, at its option, to increase the total borrowing capacity by $250 million, so long as Radian receives commitments from lenders. Subject to certain limitations, borrowings under the credit facility may be used for working capital and general corporate purposes.

Radian Guaranty

• Radian Guaranty distributed $600 million to Radian Group in the first nine months of 2025, including a $200 million ordinary dividend in the third quarter of 2025. Based on statutory dividend limits tied to prior year net income, Radian Guaranty has the capacity to pay up to $195 million of additional distributions to Radian Group in the fourth quarter of 2025.
• At September 30, 2025, Radian Guaranty's Available Assets under PMIERs totaled $6.0 billion, resulting in PMIERs excess Available Assets of $1.9 billion.

STRATEGIC UPDATE

Discontinued Operations

• As previously announced, 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 have been reclassified to income (loss) from discontinued operations, net of tax, in our condensed consolidated statements of operations for all periods presented.
  • Income (loss) from discontinued operations, net of tax, was $(11) million for the quarter ended September 30, 2025, or $(0.08) per diluted share. This compares to income (loss) from discontinued operations, net of tax, of $(15) million for the quarter ended September 30, 2024, or $(0.10) per diluted share.
  • The results for discontinued operations for the quarter ended September 30, 2025, include $7 million of estimated costs related to the expected future sale of these businesses.
  • Additional details regarding discontinued operations may be found in Exhibit D.

Inigo Acquisition

• As previously announced, in the third quarter of 2025, Radian Group entered into a definitive agreement to acquire Inigo, a highly profitable Lloyd's specialty insurer, for $1.7 billion in a primarily all-cash transaction. Radian plans to fund the acquisition from Radian Group's available liquidity sources, including $600 million from Radian Guaranty through a 10-year intercompany note approved by the Pennsylvania Insurance Department.
• This strategic acquisition will mark an important step in Radian's transformation from a leading U.S. mortgage insurer to a global, diversified multi-line specialty insurer, significantly expanding the company's product expertise and capabilities.
• The transaction values Inigo at 1.5 times its projected tangible equity at the end of 2025. The acquisition is expected to deliver mid-teens percentage accretion to earnings per share and approximately 200 basis points accretion to return on equity in the first full year after closing. Radian expects the acquisition will double its total annual revenue, and provide flexibility to deploy capital across multiple insurance lines through various business cycles.
• The transaction is expected to close in the first quarter of 2026, subject to regulatory approvals and other closing conditions.

CONFERENCE CALL

Radian will discuss third quarter 2025 financial results in a conference call tomorrow, Wednesday, November 5, 2025, at 11:00 a.m. Eastern time. The conference call will be webcast live on the company's website at https://www.radian.com/for-investors/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 https://www.radian.com/for-investors/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) 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)

As previously announced, 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 have been reclassified to 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.

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 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.

Effective in the third quarter of 2025, 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.

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.