RADIAN GROUP INC

For nearly 50 years, we have served as a leading private mortgage insurer, expanding access to affordable, responsible and sustainable homeownership. We believe we are differentiated from our peers by our proprietary risk analysis and risk management capabilities, informed by decades of mortgage data and intelligence. In recent years, our mortgage insurance business has generated positive results, including strong earnings and cash flow.

A pivotal milestone in our strategic evolution was our recent acquisition of Inigo, a highly respected Lloyd’s specialty insurer, which closed on February 2, 2026. We believe that combining the embedded value of our mortgage insurance business with the growth potential of a disciplined specialty insurance and reinsurance business through this acquisition positions us to create a capital-efficient diversified insurance business. Effective as of the first quarter of 2026, we manage our business in two reportable business segments, Mortgage and Specialty. Together, Radian’s Mortgage and Specialty businesses create a global multi-line specialty insurer.

Our financial performance was strong in the first quarter of 2026. Our consolidated results for the first quarter of 2026 reflect the addition of our Specialty segment following the acquisition of Inigo, with net income from continuing operations of $129 million, a 10.8% return on equity from continuing operations and pretax income from continuing operations of $174 million. Adjusted pretax operating income was $232 million, with a 14.7% adjusted net operating return on equity. The expansion of our business mix drove higher revenues, partially offset by higher provision for losses and expenses. With the closing of the Inigo acquisition, we believe we have taken a significant step to diversify our earnings and position the Company for long-term growth.

Our Mortgage segment continued to serve as a solid foundation for our financial results, generating strong earnings and cash flow in the first quarter of 2026. Our Mortgage segment contributed $221 million of adjusted pretax operating income, with net premiums earned of $238 million. Our mortgage insurance in force portfolio was $281.7 billion as of March 31, 2026, inclusive of $13.5 billion of NIW. We continued to observe low default and claim rates and steady cure activity, supporting favorable loss performance.

Consistent with the trends observed in recent periods, the economic and market conditions impacting our Mortgage results for the first quarter of 2026 remained generally favorable. These trends include: (i) a strong credit environment; (ii) a strong Persistency Rate due to the interest rates of mortgages in our insured portfolio generally remaining below prevailing interest rates, although refinance activity increased in the first quarter of 2026; and (iii) strong mortgage insurance fundamentals, including stringent underwriting and product standards, higher-quality borrowers with strong credit profiles and strengthened servicing standards and government support to help borrowers stay in their homes.

On February 2, 2026, we closed the acquisition of Inigo, making the first quarter of 2026 the first period in which the Specialty segment is included in our financial results. Our Specialty segment writes insurance and reinsurance coverage through multiple lines of business including property, casualty, financial lines and other specialty lines focusing on core classes of insurance and reinsurance where we believe we possess technical expertise.

For the two months of activity ended March 31, 2026, our Specialty segment contributed $40 million of pretax operating income, with net premiums earned of $164 million, and achieved a Combined Ratio of 85.3%. We believe this performance reflects strong underlying profitability, effective risk selection and disciplined underwriting and portfolio management.

The property, casualty and other specialty insurance markets in which the Specialty segment operates are influenced by market cycles, competitive pressures and evolving risk landscapes. This market demands a disciplined approach to underwriting, effective risk selection and robust data and analytics to navigate increasing competition, particularly in short-tail property lines. Factors such as claims inflation, geopolitical risks and climate change further shape the specialty insurance environment.

During the first quarter of 2026, the specialty insurance and reinsurance markets experienced continued softening pricing conditions, particularly across property and reinsurance classes, following several years of strong underwriting profitability and a relatively benign catastrophe environment in 2025, which has continued in early 2026. Increased availability of capacity from both traditional markets and alternative capital, including catastrophe bonds, intensified competitive pressures and resulted in risk‑adjusted rate reductions. Market conditions and the premium rate environment remain differentiated by line of business, and the softening pricing conditions have been most pronounced in U.S. property insurance and property catastrophe reinsurance.

We expect competitive and pricing pressures to persist through the remainder of 2026, particularly in catastrophe-exposed classes. In response to market conditions, Inigo remains focused on underwriting profitability through the cycle and we expect to continue to emphasize margin‑focused underwriting, including selective reductions in lines, non‑renewal of inadequately priced risks, portfolio re‑shaping initiatives and targeted growth in classes and segments where pricing and structural protections remain acceptable.

Geopolitical developments also influenced market conditions during the first quarter of 2026. The escalation of hostilities in the Middle East introduced heightened uncertainty across political violence, aviation war, cyber, energy and related specialty insurance markets. While reported loss activity to date has been limited, the evolving situation presents a heightened risk of loss with respect to insured risks in the region, reinforcing the importance of disciplined risk selection, exposure management and reinsurance protection. The Company continues to monitor geopolitical developments and evolving market conditions, including potential increased volatility in financial markets.

Outlook

Looking ahead to the remainder of 2026, our priorities include continuing to deliver strong, consistent performance in our Mortgage segment, executing on the strategic development and selective growth of our Specialty segment and maintaining a disciplined approach to capital management. We believe our ability to consistently generate excess capital through cycles and redeploy it with discipline is a core competitive advantage. Our capital management philosophy prioritizes maintaining financial strength, investing in growth and responsibly returning excess capital to stockholders. Despite risks and uncertainties related to the current economic and market conditions, we continue to have a favorable outlook for our businesses based on the fundamentals in both our Mortgage and Specialty segments.

Legislative and Regulatory Developments

We are subject to comprehensive regulation and supervision in the jurisdictions in which our subsidiaries operate. For a description of significant U.S. state and federal regulations and other requirements of the GSEs that are applicable to our mortgage insurance business, as well as legislative and regulatory developments affecting the housing finance industry, see “Item 1. Business—Regulation—State Regulation” and “Item 1. Business—Regulation—Federal Regulation” in our 2025 Form 10-K. For a description of the U.K. regulatory requirements and framework and other requirements and regulations of Lloyd’s that are applicable to our specialty insurance business, see “Item 1. Business—Regulation—Regulation of Inigo” in our 2025 Form 10-K. There were no significant regulatory developments impacting our businesses from those discussed in our 2025 Form 10-K, other than the following.

Credit Score Models. In October 2022, the FHFA announced that as part of a multi-year effort, the GSEs intend to replace their use of Classic FICO credit scores with FICO 10T and VantageScore 4.0 credit scores, which are intended to improve accuracy by capturing additional payment histories for borrowers when available, such as rent, utilities and telecom payments. In July 2025, FHFA announced that the GSEs would allow lenders to use a credit score generated by either the Classic FICO model or the VantageScore 4.0 model. Most recently, in April 2026, FHFA announced that the GSEs will immediately accept loans with the VantageScore 4.0 model for certain approved lenders and will begin moving forward with FICO 10T. The U.S. Department of Housing and Urban Development also announced that FHA will permit the use of VantageScore 4.0 and FICO 10T as eligible credit score models for FHA-insured loans. As a mortgage insurer, Radian Guaranty uses credit scores in several areas of its operations and the adoption and implementation of the new credit scores requires planning and analysis to, among other things, understand how these scores calibrate to Radian Guaranty’s credit risk models. The Company continues to evaluate the impact of this most recent announcement, and while we expect there to be operational impacts, we do not expect it to have a material impact on our results of operations or financial condition.

Basel III. Over the past several decades, the Basel Committee on Banking Supervision has established international benchmarks for assessing banks’ capital adequacy requirements (“Basel III”). Included within those benchmarks are capital standards related to residential lending and securitization activity and, importantly for private mortgage insurers, the capital treatment of mortgage insurance on those loans. In July 2023, the U.S. federal banking agencies published a notice of proposed rulemaking to implement the final components of Basel III that was heavily criticized and debated. In March 2026, the U.S. federal bank regulators released new proposals to update the regulatory capital framework for banks that include more granular risk weights for the capital treatment of residential real estate and maintain the existing treatment of mortgage insurance as a prudent underwriting standard. The proposals also include several questions on the treatment of mortgage insurance as part of the proposed risk weight calculations. The Company will continue to monitor developments with respect to this rulemaking and its potential impact on our mortgage insurance business.