RADIAN GROUP INC

New Insurance Written

We wrote $13.5 billion of primary NIW in the three months ended March 31, 2026, compared to $9.5 billion of NIW in the three months ended March 31, 2025, representing an increase of 42% for the three months ended March 31, 2026, as compared to the same period in 2025.

According to industry estimates, mortgage origination volume for home purchases increased moderately in the first quarter of 2026, while a decrease in interest rates led to an increase in refinance volume for the three months ended March 31, 2026, as compared to the same period in 2025, contributing to the increase in NIW in the first quarter of 2026.

The following table provides selected information for the periods indicated related to our Mortgage 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).

(1)

At origination.

Insurance and Risk in Force

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 decrease the cancellation rate of our insurance and positively affect our Persistency Rates. As shown in the table below: (i) our 12-month Persistency Rate at March 31, 2026, decreased as compared to the same period in 2025 and (ii) our quarterly, annualized Persistency Rate decreased at March 31, 2026, as compared to the same period in 2025. We believe the decrease in both the 12-month Persistency Rate and the quarterly, annualized Persistency Rate was primarily attributable to an increase in refinance activity in the first quarter of 2026, as further described below, resulting from the decline in mortgage interest rates in recent periods.

As of March 31, 2026, approximately half of our IIF had a mortgage note interest rate of 5.5% or less, which remains below the current prevailing mortgage interest rates based on reported industry averages. If mortgage rates were to decrease further, however, refinance volumes could increase, similar to the effect observed in the first quarter of 2026, which could negatively impact 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 2025 Form 10-K for more information.

The following table provides selected information as of and for the periods indicated related to Mortgage 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).

(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 segment 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 2025 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 reduced its Minimum Required Assets as of the dates indicated.

See “Results of Operations—Mortgage Segment—Revenues—Net Premiums Earned” for information about the impact on premiums earned from each of Radian Guaranty’s reinsurance programs.

Premiums Earned

The following table provides information about net premiums earned by line of business.

Insurance comprises specialty insurance business written across a range of structures, including primary and excess layers which are grouped into the following lines of business.

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Property– Covers commercial property risks across a range of industries.

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Casualty– Includes general liability, auto liability, marine-related liability, energy-related liability and other specialty liability exposures.

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Financial Lines – Includes directors’ & officers’ insurance and financial institutions insurance, primarily for public company and institutional risks.

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Other Specialty – Includes cyber, aviation war, political violence and terrorism and other geopolitical or technology-related risks, which may give rise to low-frequency, high-severity losses.

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Natural Resources – Includes insurance covering energy production, power generation, and mining and energy industry exposures.

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Partnerships – Includes insurance business written with selected counterparties within Inigo’s insurance platform.

Within Reinsurance, net premiums earned arise from assumed reinsurance business, under which Inigo acts as reinsurer to third-party cedants. This business includes proportional arrangements, where Inigo assumes a share of the underlying premiums and losses and non-proportional arrangements that provide protection against large individual losses, catastrophe events or aggregate loss experience.

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Property – Includes assumed catastrophe-oriented reinsurance, primarily excess of loss (including per risk, catastrophe, and aggregate), pro rata and retrocession arrangements, with exposures primarily in catastrophe-exposed regions.

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Casualty – Includes assumed casualty reinsurance arrangements providing quota share or excess of loss protection.

The following table provides information about gross premiums earned by geographic area.

(1)

Geographic location is primarily determined by the location of risk exposure.

Risk Distribution

The following table provides information on ceded premiums earned as a percentage of gross premiums earned by line of business.