Radian Group reported higher third-quarter earnings and a sharp increase in revenue, alongside continued growth in its mortgage-insurance business. The quarter also reflected the company’s acquisition of specialty insurer Inigo: Specialty accounted for 57% of net premiums earned, and Radian recorded $21 million in acquisition-related and purchase-accounting costs.
The company reported $172 million in net income from continuing operations, or $1.28 per diluted share, compared with $153 million and $1.11 a share a year earlier. Adjusted operating earnings per share were $1.44, up from $1.15.
Key details
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Revenue more than doubled year over year. Total revenue was $624 million, up from $303 million in the third quarter of 2025. Net premiums earned increased to $548 million from $237 million, while net investment income rose to $77 million from $63 million.
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Adjusted operating income also increased. Pretax income from continuing operations was $228 million, compared with $199 million a year earlier. Adjusted pretax operating income was $254 million, up from $206 million; the adjusted figure excludes items including the $21 million of Inigo-related purchase-accounting adjustments, intangible-asset amortization and acquisition expenses.
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Specialty insurance delivered a strong quarter. The segment’s combined ratio was 80.4%, improved from 97.7% in the second quarter. Radian cited a benign catastrophe quarter as a factor in Specialty’s underwriting performance. Specialty gross premiums written were $310 million, down from $504 million in the prior quarter; the release did not provide a year-earlier comparison.
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Mortgage insurance in force reached a record. Primary mortgage insurance in force was $285.7 billion at Sept. 30, up from $280.6 billion a year earlier. New mortgage insurance written was $14.7 billion, compared with $15.5 billion in the year-earlier quarter.
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Mortgage underwriting remained profitable, though its combined ratio rose. The mortgage segment’s combined ratio was 36.6%, versus 27.0% a year earlier and 35.8% in the second quarter. The share of primary loans in default increased to 2.68%, from 2.42% a year earlier and 2.47% in June.
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Returns improved from a year earlier. Return on equity from continuing operations was 14.6%, compared with 13.4% a year earlier. Adjusted net operating return on equity was 16.3%, up from 13.9%.
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Radian continued repurchasing shares. Repurchases totaled $379 million year to date, equal to 8% of shares outstanding. That included $135 million in the third quarter and another $117 million in October.
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Book value per share was mixed against the comparison periods. It stood at $35.78 at quarter-end, down from $36.00 in June but up from $34.34 a year earlier. Radian’s accumulated other comprehensive loss per share widened to $3.32, from $1.99 in June and $1.67 a year earlier.
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Holding-company liquidity declined. Available liquidity was $376 million at Sept. 30, compared with $412 million in June and $995 million a year earlier. The figure excludes access to a $500 million revolving credit facility. Total investments were $7.0 billion, up from $5.9 billion a year earlier.
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Mortgage-insurance capital resources remained above requirements. Radian reported $1.48 billion in excess available assets under the mortgage-insurance industry’s capital framework, down from $1.88 billion a year earlier.
What changes for investors
The results show Radian operating with a larger Specialty insurance business alongside its established mortgage-insurance operation. Specialty’s share of premiums and its strong quarterly underwriting result are notable, while mortgage insurance in force continued to expand. The reported earnings also include costs tied to the Inigo acquisition, so adjusted operating figures provide a separate view that excludes those items.
The company’s $379 million in year-to-date repurchases represents a meaningful return of capital, while holding-company liquidity was lower than a year ago.