Radian Group Q2 Earnings Call Highlights

Radian Group reported second-quarter results that reflected its first full quarter including specialty insurer Inigo, while executives emphasized continued strength in mortgage insurance, progress on divestitures and disciplined capital deployment amid a softer specialty insurance market. Total revenue rose 93% year over year to $575 million, while net earned premiums increased 116% to $504 million. The company reported GAAP net income from continuing operations of $0.87 per share and a 10% return on equity. Adjusted net operating earnings were $1.14 per share, with an adjusted net operating return on equity of 13%.

Chief Executive Officer Rick Thornberry said Radian has advanced the strategic plan announced alongside its agreement to acquire Inigo, which was intended to transform the company from a primarily U.S. mortgage insurer into a global multiline specialty insurer. The company has completed the Inigo acquisition, exited its mortgage conduit business, completed the sale of its real estate services business and entered an agreement to sell its title business. Radian said the actions have narrowed its focus to insurance, expanded its products and reduced organizational complexity. Inigo represented approximately 50% of consolidated revenue and 53% of total net premiums earned during the quarter, according to Thornberry.

Specialty segment net premiums earned totaled $267 million, up 9% year over year. Management said specialty market conditions have become more competitive, particularly in property insurance and reinsurance, with rates continuing to soften. Thornberry said the company would prioritize profitability, rate adequacy and returns over premium volume. “We won't sacrifice pricing or terms or expected returns to maintain premium volume,” Thornberry said during the call.

Kobell said Radian expects specialty earned premiums in the second half of 2026 to be about 20% higher than in the first half because of the business’s typical revenue seasonality. He said the guidance includes Inigo’s January results, which were not part of Radian’s consolidated reporting following the acquisition timing.

The specialty segment reported a 98% net combined ratio in the second quarter. Total loss provision was $169 million, including $24 million of favorable development from prior-period reserves, primarily in property lines.