Second quarter 2026
Filed Aug 6, 2026Second quarter revenue grew 93% year over year; Specialty represented 53% of net premiums earned
Revenue and net premiums earned expanded sharply with the first full quarter of Inigo results, but GAAP net income from continuing operations, pretax income, diluted EPS and returns on equity declined from both the prior quarter and prior year. Specialty generated substantial premiums but reported a 97.7% combined ratio amid Middle East conflict reserves.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Consolidated Total revenues ($ in millions)GAAP | $575 | – | 93% |
| Net premiums earned ($ in millions)GAAP | $504 | – | 116% |
| Net investment income ($ in millions)GAAP | $75 | – | – |
| Net income ($ in millions)GAAP | $116 | – | – |
| Net income from continuing operations ($ in millions)GAAP | $118 | – | – |
| Diluted net income from continuing operations per shareGAAP | $0.87 | – | – |
| Pretax income from continuing operations ($ in millions)GAAP | $151 | – | – |
| Adjusted pretax operating income ($ in millions)non-GAAP | $196 | – | – |
| Adjusted diluted net operating income per sharenon-GAAP | $1.14 | – | – |
| Return on equity from continuing operationsGAAP | 9.8% | – | – |
| Adjusted net operating return on equitynon-GAAP | 12.9% | – | – |
| Combined Ratio - Mortgageother | 35.8% | – | – |
| Combined Ratio - Specialtyother | 97.7% | – | – |
| New insurance written - Mortgage ($ in millions)other | $16,331 | – | 14% |
| Gross premiums written - Specialty ($ in millions)other | $504 | – | – |
| Book value per shareGAAP | $36.00 | – | 8.5% |
| Accumulated other comprehensive income (loss) value per shareGAAP | $(1.99) | – | – |
| Available holding company liquidity ($ in millions)other | $412 | – | – |
| Total investments ($ in millions)GAAP | $6,986 | – | – |
| Assets held for sale ($ in millions)GAAP | $64 | – | – |
| Liabilities held for sale ($ in millions)GAAP | $30 | – | – |
| PMIERs Available Assets ($ in millions)other | $5,349 | – | – |
| PMIERs excess Available Assets ($ in millions)other | $1,450 | – | – |
| Primary mortgage insurance in force ($ in millions)other | $284,035 | – | 3% |
| Percentage of primary loans in defaultother | 2.47% | – | – |
| Mortgage annualized persistency for the quarterother | 82% | – | – |
| In-force portfolio premium yieldother | 38 basis points | – | – |
| Mortgage provision for losses ($ in millions)other | $29 million | – | – |
| Mortgage favorable reserve development on prior period defaults ($ in millions)other | $20 million | – | – |
| Mortgage Expense Ratioother | 23% | – | – |
| Specialty insurance gross premiums written ($ in millions)other | $229 million | – | – |
| Specialty reinsurance gross premiums written ($ in millions)other | $275 million | – | – |
| Specialty provision for losses ($ in millions)other | $169 million | – | – |
| Specialty favorable reserve development on prior accident year loss reserves ($ in millions)other | $24 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| MortgagePrimary Insurance in Force of $284 billion, New Insurance Written of $16 billion, a stable in-force portfolio premium yield of 38 basis points, and favorable reserve development on prior period defaults of $20 million. Adjusted pretax operating income was $208 million. | $236 million | – | – |
| SpecialtyTotal gross premiums written were $504 million, comprising insurance gross premiums written of $229 million and reinsurance gross premiums written of $275 million. The provision for losses of $169 million included reserves for expected and potential claims related to the Middle East conflict. Adjusted pretax operating income was $29 million. | $267 million | – | – |
2026 outlook
- NoteRadian Group expects to repay its unsecured revolving credit facility borrowing in full during 2026.
- NoteRadian Guaranty expects to pay approximately $650 million in total ordinary dividends to Radian Group during 2026, subject to prior approval from the Pennsylvania Insurance Department.
- NoteRadian Guaranty expects to cede 15% of policies issued between July 1, 2027 and June 30, 2028, increasing total coverage to 30%, and 20% of policies issued between July 1, 2028 and June 30, 2029, in each case subject to certain conditions.
Capital returns
- During the second quarter of 2026, the company repurchased 2.2 million shares of Radian Group common stock at a total cost of $76 million.
- In July, the company repurchased 1.3 million shares of Radian Group common stock at a total cost of $50 million.
- Radian Group paid a dividend on its common stock in the amount of $0.255 per share, totaling $37 million, in the second quarter of 2026.
- The company fully utilized the authority under its $900 million share repurchase authorization that was scheduled to expire on June 30, 2026.
- Following the July share repurchases, purchase authority of up to $686 million remained available under the $750 million authorization approved in May 2025, which is scheduled to expire in December 2027.
- Radian Guaranty paid an ordinary dividend to Radian Group of $200 million in the second quarter of 2026, following an ordinary dividend of $140 million paid in the first quarter of 2026.
What drove it
- Consolidated total revenues grew 93% year over year and net premiums earned increased 116% year over year.
- Specialty represented 53% of net premiums earned, reflecting the first full quarter of Inigo results following the February 2, 2026 acquisition.
- Mortgage primary insurance in force reached $284 billion and new insurance written increased 14% year over year.
- Mortgage provision for losses included favorable reserve development on prior period defaults of $20 million.
- Operating expenses in the Mortgage segment and Corporate category increased compared to the prior quarter primarily because of share-based compensation expense associated with annual equity awards granted during the quarter.
- The wind down of the Mortgage Conduit business was substantially completed as of June 30, 2026, and the Real Estate Services business sale was completed in August.
Concerns
- Net income from continuing operations was $118 million, compared with $154 million in the prior-year quarter and $129 million in the prior quarter.
- Diluted net income from continuing operations per share was $0.87, compared with $1.11 in the prior-year quarter and $0.93 in the prior quarter.
- The quarter included $39 million of purchase accounting adjustments, amortization of acquired intangible assets and acquisition-related expenses related to the Inigo acquisition.
- Specialty's combined ratio was 97.7%, compared with 85.3% in the prior quarter.
- Specialty's provision for losses included reserves established for expected and potential claims related to the Middle East conflict.
- PMIERs excess Available Assets were $1,450 million, compared with $2,035 million as of June 30, 2025 and $1,596 million as of March 31, 2026.
What to watch
- Specialty underwriting performance and the effect of reserves for expected and potential Middle East conflict claims.
- Execution of the pending Title business sale, which remains subject to customary closing conditions and required regulatory approvals.
- Repayment of the remaining unsecured revolving credit facility borrowing during 2026.
- Radian Guaranty's expected approximately $650 million of total ordinary dividends to Radian Group during 2026, subject to prior approval from the Pennsylvania Insurance Department.
- The planned quota share reinsurance coverage for policies issued beginning July 1, 2027.
- Trends in the percentage of primary loans in default, which was 2.47% at June 30, 2026.
Balance sheet and cash flow
- Available holding company liquidity was $412 million as of June 30, 2026, excluding available capacity under the unsecured revolving credit facility.
- Radian Group maintained $425 million of undrawn capacity under its unsecured revolving credit facility as of June 30, 2026.
- In January 2026, Radian Group drew $200 million on its unsecured revolving credit facility and repaid $125 million of this borrowing during the first half of 2026.
- Total investments were $6,986 million as of June 30, 2026.
- At June 30, 2026, Radian Guaranty's Available Assets under PMIERs totaled $5.3 billion, resulting in PMIERs excess Available Assets of $1.5 billion.
- During the second quarter of 2026, Radian Group received $19 million in distributions from businesses held for sale.
- The net carrying value of assets and liabilities held for sale was $35 million as of June 30, 2026, including the impact of estimated costs related to the divestitures.
Analysis
Radian reported a sharp expansion in scale in the second quarter of 2026. Consolidated total revenues were $575 million, compared with $299 million in the prior-year quarter, while net premiums earned were $504 million, compared with $234 million. The release attributed the diversification and growth to Mortgage and Specialty Insurance and noted that Specialty represented 53% of net premiums earned. The quarter was the first full quarter including Inigo results after its February 2, 2026 acquisition.
Underlying profitability was stronger than the GAAP continuing-operations result but declined sequentially. Adjusted pretax operating income was $196 million, compared with $191 million in the prior-year quarter, while adjusted diluted net operating income per share was $1.14, compared with $1.11. However, net income from continuing operations was $118 million and diluted net income from continuing operations per share was $0.87, below both comparison periods. The release identified $39 million of Inigo-related purchase accounting adjustments, acquired intangible asset amortization and acquisition-related expenses in the quarter.
Mortgage remained highly profitable, reporting $208 million of adjusted pretax operating income and a 35.8% combined ratio. Primary mortgage insurance in force was $284,035 million, new insurance written was $16,331 million, and the percentage of primary loans in default declined to 2.47% from 2.51% at March 31, 2026. Mortgage provision for losses was $29 million and included $20 million of favorable reserve development. The 35.8% combined ratio was nevertheless above 30.2% in the prior quarter, while Mortgage and Corporate operating expenses increased sequentially because of annual equity-award share-based compensation expense.
Specialty produced $267 million of net premiums earned and $504 million of total gross premiums written, but its underwriting profitability was materially weaker than in the prior quarter. The segment reported $29 million of adjusted pretax operating income and a 97.7% combined ratio, compared with 85.3% in the prior quarter. Its $169 million provision for losses included reserves for expected and potential Middle East conflict claims, partly offset by $24 million of favorable reserve development on prior accident year loss reserves.
Capital deployment remained active. Radian repurchased $76 million of stock and paid $37 million of common dividends in the quarter, followed by $50 million of share repurchases in July. Radian Guaranty paid $200 million to the holding company in the quarter, and management expects approximately $650 million of total ordinary dividends during 2026, subject to regulatory approval. The company is simplifying around insurance through the substantially completed Mortgage Conduit wind down, the completed Real Estate Services sale and the pending Title business sale. The filing did not provide revenue, margin, expense or tax-rate financial guidance.
Management, verbatim
Radian delivered strong second quarter results as we benefit from our transformation into a global multi-line specialty insurer. Our Mortgage and Specialty Insurance businesses together generated 93% revenue growth and 116% increase in net earned premiums year over year, demonstrating the strength and diversification of our insurance platform. At the same time, our recently announced divestitures further simplify our portfolio and deepen our focus on insurance. With these actions, coupled with a seamless leadership transition, Radian is well-positioned to capitalize on future opportunities and deliver value for stockholders.
Rick Thornberry, Radian Chief Executive Officer
Not in the filing
stated, not guessed- Consolidated gross margin was not reported.
- Consolidated operating income was not reported.
- Consolidated operating expenses were not reported.
- Income tax expense and tax rate were not reported.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Cash and cash equivalents were not reported.
- Total debt was not reported.
- No quantitative revenue, gross margin, operating expense or tax-rate guidance was provided.
- Prior outlook was not provided, so comparison of actual results with prior guidance is unavailable.
- Mortgage segment net premiums earned prior-year and prior-quarter amounts were not reported on its own line.
- Specialty segment net premiums earned prior-year and prior-quarter amounts were not reported on its own line.
- Mortgage and Specialty segment adjusted pretax operating income comparison amounts were not reported.
- Segment operating expense dollar amounts were not reported.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.