Radian Group Q4 Earnings Top Estimates, MI Business Remains Strong

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Q4 in Detail

Net premiums earned were $237 million, up 0.9% year over year. Net investment income rose 0.8% year over year to $62.7 million, supported by higher short-term investment balances, partially offset by securities and maturities.

MI's new insurance written increased 20.2% year over year to $15.9 billion.

Primary mortgage insurance in force rose 2.7% year over year to $282.5 billion, which beat the Zacks Consensus Estimate by 1.1%.

Persistency — the percentage of mortgage insurance remaining in force after 12 months — was 81.6% as of Dec. 31, 2025, down 110 basis points year over year.

Primary delinquent loans totaled 25,230 as of Dec. 31, 2025, up 5.9% year over year.

Total expenses increased 20.9% year over year to $99.5 million. The expense ratio improved 140 basis points year over year to 25.2%, reflecting enhanced operating leverage.

Financial Update

As of Dec. 31, 2025, Radian Group reported cash and cash equivalents of $24.8 million, up 29.2% year over year. Total assets declined 6.5% year over year to $8.1 billion.

The debt-to-capital ratio improved 40 basis points to 18.3%.

Book value per share rose 12.6% year over year to $35.29. Shareholders’ equity increased 3.4% year over year to $4.8 billion.

Adjusted net operating return on equity was 13.6%, down 110 basis points year over year.

As of Dec. 31, 2025, Radian Guaranty’s available assets under PMIERs totaled $5.4 billion, resulting in excess available assets of $1.6 billion.

Capital Deployment & Dividend Update

During 2025, the company returned $576 million to shareholders through dividends and share repurchases. In the fourth quarter, Radian paid a quarterly dividend of 25.5 cents per share, totaling approximately $35 million.

Full-Year 2025 Highlights

Adjusted operating income was $4.45 per share, up 1.4% year over year, and beat the Zacks Consensus Estimate by 3.7%.

Total operating revenues declined 1.1% year over year to $1.2 billion, which came in line with the Zacks Consensus Estimate.

Net premiums earned were $942 million, up 0.3% year over year.

The loss ratio deteriorated 730 basis points year over year to 7.1%.

Zacks Rank

RDN currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Insurers

Arch Capital Group Ltd. ACGL reported fourth-quarter 2025 operating income of $2.98 per share, which beat the Zacks Consensus Estimate by 19.7%. The bottom line increased 31.9% year over year. ACGL’s quarterly results benefited from higher premiums in its insurance segment and improved net investment income.

Arch Capital’s net premiums earned rose 2.7% year over year to $4.3 billion on higher premiums earned in its insurance segment. The figure marginally missed the Zacks Consensus Estimate.

MGIC Investment Corporation MTG reported fourth-quarter 2025 operating net income per share of 75 cents, which beat the Zacks Consensus Estimate by 2.7%. The bottom line improved 4.2% year over year.

MGIC Investment's total operating revenues declined 0.9% year over year to $298.7 million, attributable to lower net premiums earned and other revenues. The top line missed the Zacks Consensus Estimate by 2.9% despite stable investment income.

AXIS Capital Holdings Limited AXS reported fourth-quarter 2025 operating income of $3.25 per share, which outpaced the Zacks Consensus Estimate by 9.4% and rose 9.4% year over year.

AXIS Capital’s total operating revenues of $1.7 billion beat the Zacks Consensus Estimate by 5.2%. The top line rose nearly 9% year over year on higher premiums earned. Net premiums written surged 13% to $1.4 billion, with an increase of 14% in the Insurance segment and growth of 5% in the Reinsurance segment.