Radian's Q1 2022: Strong Growth & Capital Management

Radians Q1 2022 earnings showcase a significant transformation following the Inigo acquisition, positioning them as a global multiline specialty insurer. Mortgage insurance segment maintained steady earnings and capital flow, while Inigo contributed solid results post-acquisition. Adjusted net operating earnings per share surged 22% to $1.27, and total revenues soared 58% to $466 million. The company now reports in mortgage and specialty segments, with specialty making up 41% of net premiums earned. Book value per share grew 10% to $35.67, and return on equity climbed to 14.7%. Investment income rose 14% to $70 million, with a diversified, high-rated portfolio. Mortgage insurance in-force portfolio expanded 3% to $282 billion, new insurance written surged 42% to $13.5 billion, and persistency remained strong at 81.3%. Credit quality remained robust, with new defaults dropping 4%, cures outpacing them, and the default rate dipping to 2.51%. Inigos partial quarter delivered $164 million in net premiums earned, with a net combined ratio of 85% and low catastrophe losses. Capital management is on track, with share buybacks resuming, dividends paid, and expectations of at least $600 million in upstream dividends this year. Holding company liquidity stands at $391 million, and leverage is expected to drop below 20% by year-end, setting the stage for steady growth across cycles. Support the show:Get a discount at https://solipillow.com/discount/dnn. Advertise on DNN:[email protected] This is an automated, high-level news summary based on public reporting.Report issues to [email protected]. View sources & latest updates:https://sources.thednn.ai/c47e9bd8df2d26c0