On August 1, 2024, Radian Group Inc (RDN, Financial) released its 8-K filing for the second quarter of 2024, showcasing a robust financial performance. Radian Group Inc provides mortgage insurance and services to the real estate and mortgage finance industries. The company operates in two segments: Mortgage and homegenius, with the Mortgage segment earning the majority of revenue.
Financial Performance and Key Metrics
Radian Group Inc reported a net income of $152 million, or $0.98 per diluted share, for the quarter ended June 30, 2024. This marks an increase from the $146 million, or $0.91 per diluted share, reported for the same period in 2023. The company's adjusted pretax operating income was $193 million, or $0.99 per diluted share, compared to $184 million, or $0.91 per diluted share, in the previous year.
Revenue and Income Trends
Radian Group Inc's total revenues for Q2 2024 were $321 million, up from $290 million in Q2 2023. The company's net premiums earned from mortgage insurance were $235 million, a significant increase from $211 million in the same quarter last year. The provision for losses in mortgage insurance was a positive $2 million, indicating a reversal from the $22 million loss provision in Q2 2023.
| Key Financial Highlights | Q2 2024 | Q1 2024 | Q2 2023 |
|---|---|---|---|
| Total revenues | $321 million | $319 million | $290 million |
| Net income | $152 million | $152 million | $146 million |
| Diluted net income per share | $0.98 | $0.98 | $0.91 |
| Book value per share | $29.66 | $29.30 | $26.51 |
Capital and Liquidity
Radian Group Inc's book value per share grew by 12% year-over-year to $29.66. The company's available holding company liquidity increased to $1.2 billion following a $200 million ordinary dividend from Radian Guaranty during the second quarter. Additionally, the share repurchase authorization was increased to $900 million and extended through June 2026, with $50 million of shares repurchased during the second quarter and $667 million of purchase authority remaining.
Operational Highlights
Radian Group Inc's new insurance written (NIW) for mortgage insurance was $13.9 billion in Q2 2024, compared to $16.9 billion in Q2 2023. The net premiums earned from mortgage insurance were $235 million, up from $211 million in the same quarter last year. The company's return on equity was 13.6%, slightly down from 14.1% in Q2 2023.
“We reported another quarter with excellent results for Radian. We increased book value per share by 12% year-over-year, generated net income of $152 million and delivered a return on equity of 13.6% in the second quarter,” said Radian’s Chief Executive Officer Rick Thornberry. “Our strong operational performance reflects the high quality of our mortgage insurance portfolio, the resilience of our business model, the strength and quality of our investment portfolio, the depth of our customer relationships and the commitment of our team.”
Conclusion
Radian Group Inc's Q2 2024 financial results demonstrate strong performance and resilience in the mortgage insurance industry. The company's ability to grow its book value per share and maintain robust liquidity positions it well for future growth. Investors and stakeholders can find more detailed financial information in the company's 8-K filing.
Explore the complete 8-K earnings release (here) from Radian Group Inc for further details.
