Radian Group Q2 Earnings Top Estimates, Premiums Decline Y/Y

Radian Group Inc. RDN reported second-quarter 2025 adjusted operating income of 1.01 per share, which beat the Zacks Consensus Estimate by 8.6%. The bottom remained flat year over year.

The results reflected muted premiums, lower persistence, higher default loans and higher expenses.

Quarter in Details

Operating revenues remained flat year over year at $312 million and missed the Zacks Consensus Estimate by 1.5%.

Radian Group Inc. Price, Consensus and EPS Surprise

Radian Group Inc. price-consensus-eps-surprise-chart | Radian Group Inc. Quote

Net premiums earned were $237.5 million, down 0.1% year over year. Net investment income decreased 1.4% year over year to $72.7 million.

MI new insurance written increased 2.9% year over year to $14.3 billion.
Primary mortgage insurance in force increased 1.4% year over year to record $276.7 billion.

Persistency — the percentage of mortgage insurance in force that remains in the company’s books after a 12-month period — was 84% as of June 30, 2025, and remained flat year over year.

Primary delinquent loans were 22,258 as of June 30, 2025, up 9.7% year over year.

Total expenses increased 7.5% year over year to $143 million. The expense ratio was 29.7, which deteriorated 120 basis points (bps) from the year-ago quarter.

Segmental Update

The Mortgage segment reported a year-over-year increase of 0.8% in total revenues to $288.3 million. Net premiums earned by the segment were $233.5 million, down 0.5% year over year. Claims paid were $4 million, which decreased 33.3% year over year. The loss ratio was positive 5.1 compared with negative 0.8 in the year-ago quarter.

The All Other segment reported a year-over-year decrease of 29.6% in total revenues to $27.9 million. Net premiums earned by the segment were nearly $4 million, up 37.1% year over year. Net investment income decreased 17.7% year over year to $19.5 million. Adjusted pretax operating loss was $16.4 million, wider than the year-ago loss of $6 million.

Financial Update

As of June 30, 2025, Radian Group had a cash balance of $22.1 billion, down 43.1% from the 2024-end level.

The debt-to-capital ratio deteriorated 50 bps to 19.2 from the 2024-end level.

Book value per share, a measure of net worth, climbed 11.9% year over year to $33.18 as of June 30, 2025.

In the second quarter, adjusted net operating return on equity was 12.4%, which contracted 150 bps year over year.

As of June 30, 2025, Radian Guaranty’s available assets under PMIERs totaled approximately $6 billion, resulting in PMIERs excess available assets of $2 billion.

Share Repurchase and Dividend Update

During the second quarter of 2025, Radian bought back 7 million shares worth $223 million. As of June 30, 2025, Radian Group had two active share repurchase authorizations. The first, set to expire in June 2026, had $113 million remaining. In May 2025, the board approved a second authorization of up to $750 million, which will become effective only after the first is fully used or expires, and is valid through December 2027.

The board of directors paid a quarterly dividend of 25.5 cents per share in the second quarter of 2025.

Zacks Rank

RDN currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Insurers

Prudential Financial, Inc. PRU reported second-quarter 2025 adjusted operating income of $3.58 per share, which beat the Zacks Consensus Estimate by 11.5%. The bottom line rose 5.6% year over year. Total revenues of $13.5 billion beat the Zacks Consensus Estimate by 0.2% but declined 2.4% year over year. The decrease in revenues was due to lower premiums.Total benefits and expenses amounted to $11.8 billion, which declined 3.6% year over year in the second quarter.

Everest Group, Ltd.’s EG second-quarter 2025 operating income of $17.36 per share beat the Zacks Consensus Estimate by 14.7%. The bottom line increased 3% year over year. Everest Group’s total operating revenues of $4.5 billion increased 6.3% year over year on higher premiums earned and net investment income. The top line beat the consensus mark by 2%. Gross written premiums deteriorated 0.7% year over year to $4.7 billion due to a decline of 3.3% in Insurance, partially offset by 1.6% growth in Reinsurance. Our estimate was $5 billion.Net investment income was $532 million, which increased 0.7% year over year.

Chubb Limited CB reported second-quarter 2025 core operating income of $6.14 per share, which outpaced the Zacks Consensus Estimate by 4.2%. The bottom line increased 14.1% year over year. Net premiums written improved 6.3% year over year to $14.2 billion in the quarter, which is in line with the Zacks Consensus Estimate. Our estimate was pegged at $14 billion. Net investment income was $1.5 billion, up 6.8 % year over year. The Zacks Consensus Estimate was pegged at $1.8 billion, while our estimate for the same was $1.9 billion. Revenues of $14.8 million missed the Zacks Consensus Estimate by a whisker but improved 6.9% year over year.

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