Radian Announces Third Quarter 2026 Financial Results
RADIAN GROUP INC (RDN) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 press release November 4, 2026 Radian Announces Third Quarter 2026 Financial Results — Third quarter revenue grew 106% year over year; Specialty represented 57% of net premiums earned — — Specialty delivered strong underwriting performance, benefiting from a benign c
How this was made
The 30-second read
Why it matters
The earnings beat and aggressive share repurchase program provide fresh catalysts for short‑term price appreciation, while the strong combined ratios underscore operational efficiency.
Market read
First‑report earnings release with double‑digit revenue growth and a sizable buyback, likely to move RDN and influence the broader insurance sector.
What to watch
Potential headwinds from rising interest rates could affect investment income and future underwriting profitability.
Radian Announces Third Quarter 2026 Financial Results
Total revenue more than doubled year-over-year, continuing-operations net income and adjusted operating income increased, Specialty produced an 80.4% combined ratio, and the company repurchased $135 million of stock during the quarter.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenuesGAAP | $624M | – | 106% |
| Net premiums earnedGAAP | $548M | – | – |
| Net investment incomeGAAP | $77M | – | – |
| Net gains (losses) on financial instruments and foreign exchangeGAAP | −$4.03M | – | – |
| Other incomeGAAP | $2.59M | – | – |
| Provision for lossesGAAP | $176.9M | – | – |
| Amortization of deferred policy acquisition costs and VOBAGAAP | $81.00M | – | – |
| Other operating expensesGAAP | $110.6M | – | – |
| Interest expenseGAAP | $21.43M | – | – |
| Total expensesGAAP | $395.8M | – | – |
| Pretax income from continuing operationsGAAP | $228M | – | – |
| Income tax provisionGAAP | $56.08M | – | – |
| Net income from continuing operationsGAAP | $172M | – | – |
| Income (loss) from discontinued operations, net of taxGAAP | −$8.55M | – | – |
| Net incomeGAAP | $164M | – | – |
| Diluted net income from continuing operations per shareGAAP | $1.28 | – | – |
| Diluted net income per shareGAAP | $1.22 | – | – |
| Adjusted pretax operating incomenon-GAAP | $254M | – | – |
| Adjusted diluted net operating income per sharenon-GAAP | $1.44 | – | – |
| Return on equity from continuing operationsGAAP | 14.6% | – | – |
| Adjusted net operating return on equitynon-GAAP | 16.3% | – | – |
| Mortgage Combined Ratioother | 36.6% | – | – |
| Specialty Combined Ratioother | 80.4% | – | – |
| Total Combined Ratioother | 61.5% | – | – |
| New insurance written - Mortgageother | $14.69B | – | decrease of 5% year-over-year |
| Gross premiums written - Specialtyother | $310M | – | – |
| Primary mortgage insurance in forceother | $285.7B | – | increase of 2% year-over-year |
| Percentage of primary loans in defaultother | 2.68% | – | – |
| Book value per shareother | $35.78 | – | 4.2% growth |
| PMIERs Available Assetsother | $5.33B | – | – |
| PMIERs excess Available Assetsother | $1.48B | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| MortgagePrimary Insurance in Force of $286 billion, stable net premiums earned of $237 million and in-force portfolio premium yield of 38 basis points, and $26 million of favorable reserve development on prior period defaults. | $236,785 thousand net premiums earned | – | – |
| SpecialtyTotal gross premiums written of $310 million, including $151 million of direct gross premiums written and $159 million of assumed gross premiums written; $43 million of favorable reserve development on prior accident year loss reserves and a benign catastrophe quarter. | $311,498 thousand net premiums earned | – | – |
| CorporateAdjusted pretax operating loss was $(39,051) thousand, including $26,650 thousand of interest expense. | $3,444 thousand net investment income | – | – |
Capital returns
- During the third quarter of 2026, the company repurchased 3.7 million shares of Radian Group common stock at a total cost of $135 million.
- In October, the company repurchased 3.5 million shares of Radian Group common stock at a total cost of $117 million.
- Year-to-date share repurchases total $379 million, or 8% of shares outstanding.
- Following the October share repurchases, purchase authority of up to $484 million remained available under the $750 million authorization approved in May 2025, which is scheduled to expire in December 2027.
- Radian Group paid a dividend on its common stock in the amount of $0.255 per share, totaling $34 million, in the third quarter of 2026.
- Radian Guaranty distributed $515 million to Radian Group in the first nine months of 2026, including a $175 million ordinary dividend in the third quarter of 2026.
- Subject to prior approval from the Pennsylvania Insurance Department, Radian Guaranty expects to pay $145 million in ordinary dividends in the fourth quarter of 2026.
What drove it
- The addition of Inigo drove total revenue that more than doubled year-over-year, with Specialty representing 57% of net premiums earned.
- Mortgage adjusted pretax operating income was $206 million, supported by $26 million of favorable reserve development on prior period defaults.
- Specialty adjusted pretax operating income was $86 million, with a benign catastrophe quarter and $43 million of favorable reserve development on prior accident year loss reserves.
- Specialty Combined Ratio improved to 80.4% from 97.7% in the second quarter of 2026.
- Purchase accounting adjustments, amortization of acquired intangible assets and acquisition-related expenses related to Inigo had a $21 million impact on third-quarter 2026 results.
- The company entered into an excess of loss reinsurance arrangement effective September 1, 2026, securing approximately $125 million of coverage on certain policies written from January 1, 2023 through June 30, 2024.
Concerns
- Mortgage new insurance written decreased 5% year-over-year to $15 billion.
- The percentage of primary loans in default was 2.68%, compared with 2.42% at September 30, 2025.
- Mortgage Combined Ratio was 36.6%, compared with 27.0% in the third quarter of 2025.
- Book value per share was $35.78 at September 30, 2026, compared with $36.00 at June 30, 2026.
- Accumulated other comprehensive income (loss) was $(3.32) per share as of September 30, 2026, compared with $(1.67) per share as of September 30, 2025.
- Income from discontinued operations was a loss of $(8,552) thousand as the Mortgage Conduit wind down was substantially complete and the company pursued the Title business sale.
What to watch
- Specialty underwriting performance, including catastrophe losses, reserve development and the softening premium rate environment identified by the company.
- Mortgage default trends, persistency and new insurance written.
- Execution of the Inigo integration and whether anticipated acquisition benefits are realized.
- Completion of the pending Title business sale, which remains subject to customary closing conditions and regulatory approvals.
- The expected $145 million of fourth-quarter 2026 ordinary dividends from Radian Guaranty, subject to prior approval from the Pennsylvania Insurance Department.
- PMIERs Available Assets and PMIERs excess Available Assets.
Balance sheet and cash flow
- Cash was $40,921 thousand as of September 30, 2026, compared with $15,258 thousand as of September 30, 2025.
- Total investments were $6,981 million as of September 30, 2026, compared with $5,852 million as of September 30, 2025.
- Total assets were $10,403,902 thousand as of September 30, 2026.
- Total stockholders' equity was $4,649,790 thousand as of September 30, 2026.
- Short-term borrowings were $548,424 thousand and long-term borrowings were $621,286 thousand as of September 30, 2026.
- Holding company debt-to-capital ratio was 18.7% as of September 30, 2026.
- Available holding company liquidity was $376 million as of September 30, 2026, excluding $500 million of undrawn capacity under the unsecured revolving credit facility.
- The company drew $200 million on its unsecured revolving credit facility in January 2026 and fully repaid the borrowing as of September 30, 2026.
- Assets held for sale were $35 million and liabilities held for sale were $17 million as of September 30, 2026.
- Operating cash flow and free cash flow were not reported.
Analysis
Radian reported a strong third quarter, with total revenues of $624 million compared with $303 million in the third quarter of 2025. Net premiums earned were $548 million versus $237 million, as Specialty contributed $311,498 thousand of net premiums earned following the Inigo acquisition. Net income from continuing operations was $172 million, or $1.28 per diluted share, compared with $153 million, or $1.11 per diluted share. Adjusted pretax operating income increased to $254 million from $206 million, while adjusted diluted net operating income per share rose to $1.44 from $1.15.
Specialty was the principal source of the year-over-year revenue expansion and represented 57% of net premiums earned. The segment generated $86,465 thousand of adjusted pretax operating income and posted an 80.4% combined ratio, improving from 97.7% in the second quarter of 2026. Specialty results benefited from a benign catastrophe quarter and $43 million of favorable reserve development on prior accident year loss reserves. The company also reported $310 million of Specialty gross premiums written, consisting of $151 million of direct and $159 million of assumed gross premiums written.
Mortgage remained highly profitable, reporting $206,286 thousand of adjusted pretax operating income. Net premiums earned were $236,785 thousand, while primary insurance in force reached $285,680 million, compared with $280,559 million a year earlier. The segment benefited from $26 million of favorable reserve development on prior period defaults, though new insurance written was $14,688 million compared with $15,497 million in the third quarter of 2025. The Mortgage Combined Ratio was 36.6%, compared with 27.0% a year earlier, and the percentage of primary loans in default was 2.68%, compared with 2.42%.
Capital deployment remained material. Radian repurchased 3.7 million shares for $135 million in the third quarter and repurchased another 3.5 million shares for $117 million in October. Year-to-date repurchases totaled $379 million, or 8% of shares outstanding. The company also paid a $0.255 per-share dividend totaling $34 million during the quarter. Available holding company liquidity was $376 million, with $500 million of undrawn revolving-credit capacity, while the $200 million revolver draw made in January was fully repaid by September 30, 2026.
Book value per share was $35.78, up 4.2% from $34.34 at September 30, 2025, but below $36.00 at June 30, 2026. PMIERs excess Available Assets were $1,478 million, compared with $1,876 million a year earlier. The company provided no quantitative earnings guidance. Near-term execution points are Specialty underwriting and catastrophe exposure, the pace and quality of mortgage insurance production, completion of the Title business sale, Inigo integration, and the expected fourth-quarter $145 million ordinary dividend from Radian Guaranty, subject to prior regulatory approval.
Management, verbatim
Radian delivered an excellent third quarter, with strong contributions from both our Mortgage Insurance and Specialty Insurance businesses. Total revenue more than doubled year-over-year with the addition of Inigo, and the strategic rationale for the acquisition is already showing up in our results.
Mike Weinbach, Radian CEO
With two strong insurance businesses, disciplined underwriting, and significant financial flexibility, we’re focused on executing and creating long-term value for shareholders.
Mike Weinbach, Radian CEO
Not in the filing
stated, not guessed- Forward quantitative guidance
- Prior-outlook comparison
- Operating cash flow
- Free cash flow
- Consolidated gross margin
- Consolidated operating income
- Forward tax-rate guidance
- Forward operating-expense guidance
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
The filing is an SEC Form 8‑K reporting Radian Group's third‑quarter 2026 results, including financial highlights, segment performance, and capital‑return actions.
Ticker impact
Radian Group reported Q3 2026 net income of $172 million ($1.28 per share) and revenue of $624 million, a 106% YoY increase.
upward pressure as investors price in the robust earnings beat and record share repurchases
The earnings beat, record revenue growth, and sizable share buyback tranche are fresh, material information that can drive the stock higher in the near term.
Market effects
Highlights strength in specialty and mortgage insurance segments, supporting broader insurance sector sentiment.
Positive for U.S. financial services and insurers, may lift related REITs and insurance stocks.
Shows resilience in U.S. insurance amid a benign catastrophe environment, modestly influencing global risk‑off dynamics.
Counterpoint
If expectations were already high, the modest EPS increase could be seen as a disappointment, limiting upside.
Key entities
- companyRadian Group Inc.
U.S. specialty insurer and mortgage insurer (ticker RDN).
- executiveMike Weinbach
CEO of Radian Group who commented on the results.
