RADIAN GROUP INC
For the period ended Sep 30, 2025. Filed Nov 6, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 6, 2025
Extracted filing text, with the paragraph anchors used by the comparison.
See the whole filing, with its images and exhibitsContents
Mortgage Insurance Portfolio Metrics
New Insurance Written
We wrote $15.5 billion and $39.3 billion of primary new mortgage insurance in the three and nine months ended September 30, 2025, respectively, compared to $13.5 billion and $38.9 billion of NIW in the three and nine months ended September 30, 2024, respectively, representing an increase of 15% for the three months ended September 30, 2025, and an increase of 1% for the nine months ended September 30, 2025, each as compared to the same period in 2024.
According to industry estimates, mortgage origination volume for home purchases increased for the three months ended September 30, 2025, as compared to the same period in 2024, contributing to the increase in NIW in the third quarter of 2025.
The following table provides selected information for the periods indicated related to our mortgage insurance NIW. For direct Single Premium Policies, NIW includes policies written on an individual basis (as each loan is originated) and on an aggregated basis (in which each individual loan in a group of loans is insured in a single transaction, typically after the loans have been originated).
| NIW | ||||
|---|---|---|---|---|
| Three Months EndedSeptember 30, · Nine Months EndedSeptember 30, | ||||
| ($ in millions) | 2025 | 2024 | 2025 | 2024 |
| NIW | $15,497 | $13,493 | $39,316 | $38,872 |
| Primary risk written | $4,114 | $3,389 | $10,340 | $9,889 |
| Average coverage percentage | 26.5% | 25.1% | 26.3% | 25.4% |
| NIW by loan purpose | ||||
| Purchases | 94.8% | 95.6% | 94.9% | 97.0% |
| Refinances | 5.2% | 4.4% | 5.1% | 3.0% |
| NIW by premium type | ||||
| Direct Monthly and Other Recurring Premiums | 96.4% | 95.9% | 96.4% | 96.3% |
| Direct single premiums | 3.6% | 4.1% | 3.6% | 3.7% |
| NIW by FICO score (1) | ||||
| >=740 | 63.5% | 69.5% | 66.3% | 68.8% |
| 680-739 | 31.8% | 24.8% | 28.8% | 25.7% |
| 620-679 | 4.7% | 5.7% | 4.9% | 5.5% |
| <=619 | 0.0% | 0.0% | 0.0% | 0.0% |
| NIW by LTV (1) | ||||
| 95.01% and above | 16.3% | 16.5% | 16.3% | 16.2% |
| 90.01% to 95.00% | 46.5% | 37.1% | 44.3% | 38.2% |
| 85.01% to 90.00% | 29.2% | 31.5% | 30.3% | 31.8% |
| 85.00% and below | 8.0% | 14.9% | 9.1% | 13.8% |
(1)
At origination.
Insurance and Risk in Force
| Year of origination - IIF | ||||||
|---|---|---|---|---|---|---|
| ($ in billions) · IIF as of: | ||||||
| By vintage · September 30, 2025 · December 31, 2024 · September 30, 2024 | ||||||
| 2025 | $38.0 | 13.5% | $— | —% | $— | —% |
| 2024 | 45.4 | 16.2% | 49.3 | 17.9% | 37.6 | 13.7% |
| 2023 | 40.8 | 14.6% | 45.3 | 16.5% | 47.2 | 17.2% |
| 2022 | 48.9 | 17.4% | 54.2 | 19.7% | 56.0 | 20.4% |
| 2021 | 45.5 | 16.2% | 53.5 | 19.4% | 56.6 | 20.6% |
| 2020 | 28.8 | 10.3% | 34.1 | 12.4% | 36.4 | 13.2% |
| 2009 - 2019 | 27.2 | 9.7% | 32.2 | 11.7% | 34.1 | 12.4% |
| 2008 & Prior | 6.0 | 2.1% | 6.5 | 2.4% | 6.8 | 2.5% |
| Total | $280.6 | 100.0% | $275.1 | 100.0% | $274.7 | 100.0% |
The primary driver of the future premiums that we expect to earn over time is our IIF, which increases as a result of our NIW and decreases as a result of policy cancellations and amortization.
Historically, there is a close correlation between interest rates and Persistency Rates. Higher interest rate environments generally decrease refinancings, which decreases the cancellation rate of our insurance and positively affects our Persistency Rates. As shown in the table below, our 12-month Persistency Rate at September 30, 2025, was relatively flat as compared to September 30, 2024.
As of September 30, 2025, approximately half of our IIF had a mortgage note interest rate of 5.0% or less, which remains below the current prevailing mortgage interest rates based on reported industry averages. If mortgage rates were to decrease, however, refinance volumes could increase, which could have a negative impact on our Persistency Rate and the size of our IIF portfolio. See “If the length of time that our mortgage insurance policies remain in force declines, it could result in a decrease in our future revenues” under “Item 1A. Risk Factors” in our 2024 Form 10-K for more information.
The following table provides selected information as of and for the periods indicated related to mortgage insurance IIF and RIF. Throughout this report, unless otherwise noted, RIF is presented on a gross basis and includes the amount ceded under reinsurance. RIF and IIF for direct Single Premium Policies include policies written on an individual basis (as each loan is originated) and on an aggregated basis (in which each individual loan in a group of loans is insured in a single transaction, typically after the loans have been originated).
| IIF and RIF | |||
|---|---|---|---|
| ($ in millions) | September 30,2025 | December 31,2024 | September 30,2024 |
| Primary IIF | $280,559 | $275,126 | $274,721 |
| Primary RIF | $74,039 | $72,074 | $71,834 |
| Average coverage percentage | 26.4% | 26.2% | 26.1% |
| Persistency Rate (12 months ended) | 83.8% | 83.6% | 84.4% |
| Persistency Rate (quarterly, annualized) (1) | 84.2% | 82.7% | 84.1% |
| Primary RIF by premium type | |||
| Direct Monthly and Other Recurring Premiums | 90.7% | 90.0% | 89.8% |
| Direct single premiums | 9.3% | 10.0% | 10.2% |
| Primary RIF by FICO score (2) | |||
| >=740 | 60.7% | 60.1% | 59.6% |
| 680-739 | 32.3% | 32.6% | 33.0% |
| 620-679 | 6.8% | 7.0% | 7.1% |
| <=619 | 0.2% | 0.3% | 0.3% |
| Primary RIF by LTV (2) | |||
| 95.01% and above | 20.4% | 19.8% | 19.5% |
| 90.01% to 95.00% | 48.3% | 47.9% | 48.0% |
| 85.01% to 90.00% | 26.8% | 27.3% | 27.3% |
| 85.00% and below | 4.5% | 5.0% | 5.2% |
(1)
The Persistency Rate on a quarterly, annualized basis is calculated based on loan-level detail for the quarter ending as of the date shown. It may be impacted by seasonality or other factors, including the level of refinance activity during the applicable periods, and may not be indicative of full-year trends.
(2)
At origination.
Risk Distribution
We use third-party reinsurance in our Mortgage Insurance business as part of our risk distribution strategy, including to manage our capital position and risk profile.
The impact of these programs on our financial results will vary depending on the level of ceded RIF, as well as the levels of prepayments and incurred losses on the reinsured portfolios, among other factors. See “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Key Factors Affecting Our Results—Mortgage Insurance—Risk Distribution” in our 2024 Form 10-K and Note 8 of Notes to Unaudited Condensed Consolidated Financial Statements in this report for more information about our reinsurance transactions.
The following table provides information about the amounts by which Radian Guaranty’s reinsurance programs reduce its Minimum Required Assets.
| PMIERs benefit from risk distribution | ||
|---|---|---|
| ($ in thousands) | September 30,2025 | December 31,2024 |
| PMIERs impact - reduction in Minimum Required Assets | ||
| QSR Program | $857,350 | $745,197 |
| XOL Program | ||
| Mortgage insurance-linked notes program | 431,957 | 558,939 |
| Traditional reinsurance agreement | 129,267 | 160,742 |
| Total XOL Program | 561,224 | 719,681 |
| Total PMIERs impact | $1,418,574 | $1,464,878 |
| Percentage of gross Minimum Required Assets | 25.8% | 27.4% |
See “Results of Operations—Consolidated—Revenues—Net Premiums Earned” for information about the impact on premiums earned from each of Radian Guaranty’s reinsurance programs.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.