Insurer Radian Group's Q2 revenue jumps 93%, beats estimates
Insurer Radian Group's Q2 revenue jumps 93%, beats estimates
Overview
U.S. specialty insurer's Q2 revenue rose 93% yr/yr, beating analyst expectations
Adjusted net operating income per share increased to $1.14 from $1.11 yr ago
Company repurchased $76 mln in shares and paid $37 mln in dividends in Q2
Outlook
Radian Guaranty expects to pay about $650 mln in ordinary dividends to Radian Group in 2026
Company expects to repay remaining borrowing on its revolving credit facility in 2026
Radian says divestitures will sharpen focus on insurance and support future opportunities
Result Drivers
SPECIALTY INSURANCE EXPANSION - Specialty segment accounted for 53% of net premiums earned and contributed to revenue growth, per company
MORTGAGE SEGMENT GROWTH - Primary mortgage insurance in force reached a record $284 bln and new insurance written rose 14% yr/yr, per company
RESERVES IMPACT - Specialty segment provision for losses included reserves for expected and potential claims related to the Middle East conflict
Company press release: ID:nBw5WL37ya
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $575 mln | $537.20 mln (3 Analysts) |
Q2 Net Income |
| $116 mln |
|
Q2 Adjusted Operating Income | Beat | $196 mln | $180.55 mln (2 Analysts) |
Q2 Adjusted ROE |
| 12.90% |
|
Q2 Pretax Profit |
| $151 mln |
|
Q2 ROE |
| 9.80% |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the property & casualty insurance peer group is "buy"
Wall Street's median 12-month price target for Radian Group Inc. is $45.00, about 13.5% above its August 4 closing price of $39.64
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 7 three months ago
Reuters Recommended Reads
Aug 5 - Mortgage insurer Enact's Q2 revenue edges past estimates
Aug 5 - Genworth Financial Q2 net income flat
Aug 4 - Greenlight Re’s Q2 combined ratio worsens to 100.1% on Middle East exposure
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
Recent news on Radian
See all newsBTIG assumes coverage of Radian with 'buy' rating; shares rise
Brief: Radian Appoints Barry C. Mccarthy To Board Of Directors
Radian Group Inc. reports results for the quarter ended June 30 - Earnings Summary
Insurer Radian Group's Q2 revenue jumps 93%, beats estimates
Brief: Radian Group Q2 Revenue USD 575 Million