On November 2, 2023, Radian Group Inc (RDN, Financial) reported its Q3 2023 earnings. The company's net income for the quarter ended September 30, 2023, was $157 million, or $0.98 per diluted share, a decrease from the net income of $198 million, or $1.20 per diluted share, for the quarter ended September 30, 2022. The primary mortgage insurance in force increased by 4% year-over-year to $269.5 billion.
Financial Highlights
The company's total revenues for Q3 2023 were $314 million, compared to $296 million for the same period in 2022. The diluted net income per share was $0.98, down from $1.20 in Q3 2022. The return on equity stood at 15.0%, a decrease from 20.7% in the same period last year.
Adjusted pretax operating income for Q3 2023 was $210 million, or $1.04 per diluted share, compared to $273 million, or $1.31 per diluted share, for Q3 2022. The book value per share at the end of Q3 2023 was $26.69, representing a 12% growth year-over-year.
Company's Performance and Future Prospects
Radian's CEO, Rick Thornberry, commented on the company's performance, stating,
We reported another quarter of excellent financial results for Radian, increasing book value per share by 12% year-over-year, generating net income of $157 million, and delivering return on equity of 15%. Our primary mortgage insurance in force, which is the main driver of future earnings for our company, grew 4% year-over-year to $270 billion, and, in October, we improved our capital position as well as enhanced our risk distribution program with the closing of two new reinsurance agreements."
Capital and Liquidity Update
As of September 30, 2023, Radian Group maintained $1.0 billion of available liquidity. Total holding company liquidity, including the company’s $275 million unsecured revolving credit facility, was $1.3 billion as of September 30, 2023. During the third quarter of 2023, the company repurchased 1.9 million shares of Radian Group common stock at a total cost of $50 million.
Recent Events
In October 2023, Radian Guaranty improved its capital position and enhanced its risk distribution program with the closing of the $353 million ILN and the $246 million excess-of-loss reinsurance agreements.
Explore the complete 8-K earnings release (here) from Radian Group Inc for further details.
