RADIAN GROUP INC

New Insurance Written

We wrote $16.3 billion and $29.8 billion of primary NIW in the three and six months ended June 30, 2026, respectively, compared to $14.3 billion and $23.8 billion of NIW in the three and six months ended June 30, 2025, respectively, representing an increase of 14% for the three months ended June 30, 2026, and an increase of 25% for the six months ended June 30, 2026, each as compared to the same period in 2025.

According to industry estimates, mortgage origination volume increased moderately for the three months ended June 30, 2026, driven by an increase in refinance volume due to decreased interest rates and a slight increase in home purchase volume, as compared to the same period in 2025. Increased origination volume as well as higher estimated penetration rates contributed to the increase in our NIW in the three months ended June 30, 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 in turn decrease the cancellation rate of our insurance and positively affect our Persistency Rates; the opposite effects occur in lower interest rate environments. As shown in the table below: (i) our 12-month Persistency Rate at June 30, 2026, decreased as compared to the same period in 2025 and (ii) our quarterly, annualized Persistency Rate decreased at June 30, 2026, as compared to the same period in 2025. We believe these decreases were primarily attributable to an increase in refinance activity in 2026, particularly in the first quarter, which resulted from the decline in mortgage interest rates that occurred entering 2026 and generated increased refinance transactions and related policy cancellations.

As of June 30, 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 decrease further, refinance volumes could increase, similar to the effect observed this year, 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.

Gross Written Premiums

Gross written premiums are a key measure of underwriting activity within our Specialty segment and reflect the volume of business written during the period. For the three months ended June 30, 2026, Specialty gross written premiums were $504 million, consisting of $229 million of direct insurance business and $275 million of assumed reinsurance business. From the Closing Date through June 30, 2026, Specialty gross written premiums were $666 million, consisting of $311 million of direct insurance business and $356 million of assumed reinsurance business.

During the first half 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 that continued into 2026. Increased availability of capacity from both traditional markets and alternative capital providers, including catastrophe bonds, has intensified competitive pressures and contributed to risk‑adjusted rate reductions across many lines of business. While market conditions and the premium rate environment remain differentiated by line of business, the softening pricing conditions have been most pronounced in U.S. property insurance and property catastrophe reinsurance. These market conditions have had a meaningful negative influence on the pricing of business written in the first half of 2026. See Note 2 of Notes to Unaudited Condensed Consolidated Financial Statements for information regarding our premium earning methodologies, including certain reinsurance contracts for which earnings patterns reflect the seasonality of risk, and “Results of Operations—Specialty Segment—Revenues—Net Premiums Earned” for more information about our Specialty segment’s net premiums earned.

We expect competitive and pricing pressures to continue, particularly in catastrophe-exposed classes. In response to market conditions, we remain focused on disciplined underwriting designed to achieve 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, changes in portfolio mix and targeted growth in classes and segments where pricing and structural protections are within our tolerance levels.

Geographic Diversification

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

(1)

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

Lines 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 partners 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. The catastrophe excess of loss portfolio, which represents the largest component of the property reinsurance account, is global, with a particular emphasis on North America, Japan, Europe, Australia and New Zealand.

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

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

Risk Distribution

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