RADIAN GROUP INC

For nearly 50 years, we have been a leading private mortgage insurer, expanding access to affordable, responsible and sustainable homeownership. On February 2, 2026, we acquired Inigo, a Lloyd’s specialty insurer. The acquisition of Inigo expanded our business profile and established Radian as a global multi-line specialty insurer, combining the embedded value and capital generation capabilities of our mortgage insurance business with the growth potential of a disciplined specialty insurance and reinsurance business.

As part of our strategy to become a more focused insurance business, we also announced a plan to divest our non-core businesses. We have now executed definitive actions to complete these divestitures, including completing the sale of our Real Estate Services business and entering into an agreement to sell our Title business. We expect the sale of our Title business to be completed by the end of this year.

Following the acquisition of Inigo, we now operate through two reportable segments, Mortgage and Specialty. We believe our businesses are differentiated by our proprietary risk analysis and risk management capabilities, which are informed by data and analytics, as well as our disciplined approach to underwriting and capital management. On a consolidated basis, during the third quarter of 2026, net income from continuing operations was $172 million, producing a 14.6% return on equity, and pretax income from continuing operations was $228 million. Adjusted pretax operating income was $254 million, contributing to a 16.3% adjusted net operating return on equity for the third quarter of 2026.

The Specialty segment expands our revenue base and further diversifies our earnings streams, while our Mortgage segment continues to generate strong cash flow and capital. We believe the combination of our Mortgage and Specialty businesses has increased our strategic flexibility and is positioning Radian to deliver results over the long-term.

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.

Risks and uncertainties related to current economic and market conditions include: (i) the effects of elevated mortgage interest rates, which have supported favorable persistency rates, but have contributed to lower mortgage origination volumes and NIW as well as a more competitive pricing environment; (ii) premium rate softening in our Specialty segment; and (iii) recent legislative and regulatory developments impacting our Mortgage segment discussed below. Despite these risks and uncertainties, 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, in “Item 1. Business—Regulation” in our 2025 Form 10-K, see “State Regulation” and “Federal Regulation.”

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.

Mortgage Insurance Cancellation. The Homeowners Protection Act (“HPA”) imposes certain cancellation and termination requirements for borrower-paid private mortgage insurance with respect to “residential mortgage transactions” as defined in the HPA. Provided that certain conditions are satisfied, the HPA generally provides that borrower-paid private mortgage insurance may be canceled at the request of the borrower once certain value thresholds are satisfied. For borrower-paid private mortgage insurance, if the loan is current (or later becomes current), the HPA also provides for servicer-initiated automatic termination once the principal balance of the mortgage is first scheduled to reach a certain threshold in comparison to the original value. In addition, the GSEs’ guidelines currently provide that when certain value thresholds and conditions are satisfied, borrowers can request cancellation of borrower-paid mortgage insurance. See “Item 1. Business—Regulation—Federal Regulation—Mortgage Insurance Cancellation” in our 2025 Form 10-K for more information regarding cancellation and termination requirements for borrower-paid private mortgage insurance.

On September 15, 2026, FHFA directed Fannie Mae to align their guidelines with Freddie Mac to allow servicers to proactively contact borrowers who have reached or may be close to reaching the LTV thresholds for mortgage insurance cancellation to notify borrowers of their potential eligibility to cancel their mortgage insurance and the actions needed to effect that cancellation. In addition, on October 22, 2026, President Trump issued an executive order entitled “Decreasing Housing Costs for the American People” (the “EO”) that includes language directing the FHFA Director to consider whether it is in the best interests of the GSEs or the FHFA to establish a pilot program that leverages automated valuation models and other data to cancel mortgage insurance based on current market value. Pursuant to the EO, if a pilot program is established in the future, it would apply only prospectively to mortgage insurance on new loans originated after the pilot program is in place. The outcome of the directive under the EO, including the details and future timing of any potential pilot program or other programs addressing similar issues is uncertain. Currently, the GSEs’ existing cancellation guidelines, as described in “Item 1. Business—Regulation—Federal Regulation—Mortgage Insurance Cancellation” in our 2025 Form 10-K remain unchanged. Under “Item 1A. Risk Factors” in our 2025 Form 10-K, see “Changes in the charters, business practices or role of the GSEs in the U.S. housing finance market generally, could significantly impact our Mortgage Insurance business” and “If the length of time that our mortgage insurance policies remain in force declines it could result in a decrease in our future revenues.”

Credit Score Models. In recent years, the FHFA and the GSEs have undertaken initiatives to modernize the credit scoring framework used in mortgage underwriting, including efforts to replace their use of Classic FICO credit scores with FICO 10T and VantageScore 4.0 credit scores. In April 2026, FHFA announced VantageScore 4.0 and FICO Score 10T as approved credit score models and that the GSEs would immediately begin accepting loans with the VantageScore 4.0 model for certain approved lenders. In September 2026, the GSEs published updated guidelines allowing all lenders to use VantageScore 4.0 when originating and selling loans to the GSEs. The GSEs have also issued PMIERs guidance which sets forth the risk-based required asset factors for insured loans that utilize VantageScore 4.0 credit scores, which became effective on September 30, 2026. We are working closely with lenders and other industry stakeholders on the adoption of VantageScore 4.0 and incorporating related developments into our operational strategies.

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”). While Basel III does not directly impact our mortgage insurance capital requirements, included within those benchmarks are capital standards related to residential lending and securitization activity and, importantly for private mortgage insurers, the capital treatment that banks will receive for 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.