Radian Group Inc. 2026 Q2 Earnings Call

Please go ahead. Thank you, and welcome to Radian's second quarter 2026 conference call.

Our press release, which contains Radian's financial results for the quarter, was issued yesterday evening and is posted to the investor section of our website at radian.com. This press release includes certain non-GAAP measures that may be discussed during today's call, including adjusted pre-tax operating income, adjusted diluted net operating income per share, and adjusted net operating return on equity. A complete description of all our non-GAAP measures may be found in press release Exhibit S, and reconciliations to these measures to the most comparable GAAP measures may be found in press release Exhibit G. These exhibits are on the investor section of our website. Today, you will hear from Rick Thornberry, Radian's Chief Executive Officer; Mike Weinbach, Radian's CEO-Elect; and Dan Kobell, Senior Executive Vice President and Interim Chief Financial Officer.

Before we begin, I'd like to remind you that comments made during this call will include forward-looking statements. These statements are based on current expectations, estimates, projections, and assumptions that are subject to risks and uncertainties, which may cause actual results to differ materially. For more information regarding these risks and uncertainties, as well as certain additional risks that Radian faces, you should refer to the risk factors included in our 2025 Form 10-K, as well as to subsequent reports filed with the SEC. These are also available on our website. I would like to turn the call over to Rick.

Thank you all for joining us today. Before discussing our second quarter results, I would like to highlight another important milestone in Radian's strategic transformation. When we announced our agreement to acquire Inigo in September last year, we also outlined a clear strategic path forward, transforming Radian from a leading U.S. mortgage insurer into a global multi-line specialty insurer, while divesting non-core businesses and becoming a more focused insurance organization. Since then, we have successfully closed the Inigo acquisition and integrated the business into our organization, and we have taken definitive action to complete the divestitures, including completing the sale of our real estate services business this week, entering into an agreement to sell our title business, and earlier this year, exiting the mortgage conduit business.

Together, these actions have sharpened our focus on insurance, expanded our product set, simplified our portfolio, reduced organizational complexity, and delivered on the key strategic actions we outlined less than a year ago. The Radian we are today is meaningfully different from the company that announced that strategy last year. Our mortgage insurance business, which has been the foundation of our company and a significant driver of value creation for stockholders for nearly 50 years, continues to generate strong earnings and capital. Combined with Inigo, we are now a stronger, more diversified, and more focused organization with two complementary and uncorrelated insurance businesses, greater capital allocation flexibility, and access to broader growth opportunities across global insurance markets. Most importantly, our team has executed on the commitments we made and positioned Radian for its next chapter of growth.

The second quarter marked our first full quarter with Inigo and another important step for Radian as a global multi-line specialty insurer. The financial benefits of this combination are already evident in our results. Total revenues increased 93% year-over-year to $575 million, while net earned premiums increased 116% to $504 million. Our mortgage insurance business once again produced strong underlying performance and remains a powerful source of earnings, capital generation, and embedded economic value for our company. New insurance written increased year-over-year, reflecting continued strength in purchase activity, combined with the value of our proprietary data and analytics capabilities and our deep customer relationships. Primary insurance in force reached a record $284 billion, with persistency remaining strong, supporting the embedded value of our portfolio and future earnings generation.

Credit performance continued to reflect the quality of our insured portfolio and our team's unwavering commitment to disciplined underwriting. We are proud of the important role private mortgage insurance plays in the home finance marketplace by helping borrowers responsibly and sustainably achieve homeownership. Turning to our specialty insurance business, as I mentioned, this quarter marks our first full reporting period reflecting Inigo's contribution. The specialty insurance business is already contributing meaningfully to the diversification of our revenue and earnings profile. During the quarter, our specialty segment represented approximately 50% of total revenues and 53% of total net premiums earned during the quarter, highlighting the scale and earnings contribution of our new business mix. The strategic value that the combination with Inigo brings to Radian is clear, reinforcing both the benefits and the opportunity ahead.

While the underlying specialty insurance portfolio continues to perform well, it is important to acknowledge that market conditions have become more competitive and rates continue to soften. The current rate environment is consistent with the cyclical dynamics we anticipated when underwriting the acquisition. The Inigo team is maintaining their focus on underwriting discipline and rate adequacy while also allocating capital to the most attractive opportunities. Our priority is profitability, not any particular revenue growth target. We believe Inigo's diversified portfolio, strong analytics capabilities, unwavering commitment to strong underwriting, and experienced leadership team position the business well to navigate market cycles and selectively deploy capital to the highest value opportunities. At the enterprise level, our capital position remains a significant and core strength. The earnings power and capital generation capabilities of our businesses provide us with meaningful financial flexibility.

During the quarter, we continued to return capital to stockholders through both dividends and share repurchases while maintaining the financial strength needed to support growth opportunities across the enterprise. As always, we remain focused on prudent capital management and creating long-term value for stockholders. Before I turn the call over to Dan to review our financial results, I would like to invite Mike Weinbach to share a few thoughts. As many of you know, Mike recently joined Radian as CEO-elect and has already spent considerable time engaging with our employees, customers, investors, and business leaders across both the Mortgage and Specialty segments. He and I have worked closely together to execute a seamless transition of leadership. Mike brings significant industry experience, a strong leadership track record, and a deep appreciation for the strengths that make Radian and Inigo unique, including the value of our talented and experienced teams.

I'm excited about the future of this company under his leadership.

Mike? Thanks, Rick. First off, I want to share how excited I am to be a part of Radian, and I want to offer two things to Rick.

One is my congratulations on all you and the team have accomplished under your leadership. Radian is a transformed company due to your vision, leadership, and execution. The second is my thanks. Having the opportunity to come in as CEO-elect on June 1st, where I could observe and learn before having to make decisions, was a true gift. Thank you, thank you, thank you to you and your family, who's had to wait a little bit longer for Popa to be your primary job. For my fellow investors, I'll expand a little more on why I'm so excited to be here. Radian Group, and I fully include Inigo when I say this, has great people, a great culture, and great platforms.

We have a leading mortgage insurance business led by a team with decades of experience, combined with an excitement about asking how we can make the business even better. We have a leading specialty insurance business, which is stocked with experienced insurance experts who came together to build something new and better than what they had experienced at their prior organizations. We're still early in that journey, and the progress the team has made gives me great confidence in what lies ahead. I'm still learning and plan to take advantage of every minute I have with Rick while in this role and when he continues as a strategic advisor to me and the board into the future. I'll go back to where I started. I'm excited, and you should be too, about all the possibilities ahead for Radian and the talent we have to realize them.