Radian Announces Fourth Quarter and Full Year 2024 Financial Results

WAYNE, Pa.--(BUSINESS WIRE)--Radian Group Inc. (NYSE: RDN) today reported net income for the quarter ended December 31, 2024, of $148 million, or $0.98 per diluted share. This compares with net income for the quarter ended December 31, 2023, of $143 million, or $0.91 per diluted share. Net income for the full year 2024 was $604 million, or $3.92 per diluted share. This compares with net income for the full year 2023 of $603 million, or $3.77 per diluted share. Adjusted pretax operating income for the quarter ended December 31, 2024, was $209 million, compared to $192 million for the quarter ended December 31, 2023. Adjusted diluted net operating income per share for the quarter ended December 31, 2024, was $1.09, compared to $0.96 for the quarter ended December 31, 2023. Adjusted pretax operating income for the full year 2024 was $803 million, compared to $786 million for the full year 2023. Adjusted diluted net operating income per share for the full year 2024 was $4.11, compared to $3.88 for the full year 2023. Key Financial Highlights Quarter Ended Year Ended ($ in millions, except per-share amounts) December 31, 2024 September 30, 2024 December 31, 2023 December 31, 2024 December 31, 2023 Total revenues $316 $334 $329 $1,290 $1,241 Net income $148 $152 $143 $604 $603 Diluted net income per share $0.98 $0.99 $0.91 $3.92 $3.77 Consolidated pretax income $189 $195 $180 $771 $767 Adjusted pretax operating income (1) $209 $199 $192 $803 $786 Adjusted diluted net operating income per share (1) $1.09 $1.03 $0.96 $4.11 $3.88 Return on equity 12.7% 13.2% 13.4% 13.4% 14.5% Adjusted net operating return on equity (1) 14.2% 13.7% 14.2% 14.1% 14.9% New Insurance Written (NIW) - mortgage insurance $13,186 $13,493 $10,629 $51,984 $52,670 Net premiums earned - mortgage insurance $235 $235 $230 $939 $909 New defaults 13,967 13,708 12,452 50,535 44,007 As of ($ in millions, except per-share amounts) December 31, 2024 September 30, 2024 December 31, 2023 Book value per share $31.33 $31.37 $28.71 Accumulated other comprehensive income (loss) value per share $(2.37) $(1.56) $(2.16) PMIERs Available Assets $6,039 $5,984 $5,890 PMIERs excess Available Assets $2,158 $2,122 $2,260 Available holding company liquidity (2) $885 $844 $992 Total investments $6,345 $6,497 $6,086 Residential mortgage loans held for sale, at fair value (3) $520 $530 $33 Primary mortgage insurance in force $275,126 $274,721 $269,979 Percentage of primary loans in default 2.44% 2.25% 2.20% Mortgage insurance loss reserves $354 $357 $365 (1) Adjusted results, including adjusted pretax operating income, adjusted diluted net operating income per share and adjusted net operating return on equity, are non-GAAP financial measures. For definitions and reconciliations of these measures to the comparable GAAP measures, see Exhibits F and G. (2) Represents Radian Group’s available liquidity without considering available capacity under its undrawn $275 million unsecured revolving credit facility. (3) Included in total investments on our consolidated balance sheets. Book value per share at December 31, 2024, was $31.33, compared to $31.37 at September 30, 2024, and $28.71 at December 31, 2023. This represents a 9% growth in book value per share at December 31, 2024, as compared to December 31, 2023, and includes accumulated other comprehensive income (loss) of $(2.37) per share as of December 31, 2024, and $(2.16) per share as of December 31, 2023. Changes in accumulated other comprehensive income (loss) are primarily from net unrealized gains or losses on investments as a result of decreases or increases, respectively, in market interest rates. “We reported another successful year for Radian in 2024, increasing book value per share by 9% year-over-year, generating net income of $604 million, and delivering a return on equity of 13.4%. Our primary mortgage insurance in force, which is the main driver of future earnings for our company, reached a record level of $275 billion dollars,” said Radian’s Chief Executive Officer, Rick Thornberry. “Our results continue to reflect the economic value of our high-quality mortgage insurance portfolio, the strength and quality of our investment portfolio, our strong capital and liquidity positions, our ongoing strategic focus on managing expenses, and our commitment to helping our customers transform risk into opportunity – while also returning value to our stockholders. We look forward to the opportunities ahead in 2025.” FOURTH QUARTER AND FULL YEAR HIGHLIGHTS NIW was $13.2 billion in the fourth quarter of 2024, compared to $13.5 billion in the third quarter of 2024, and $10.6 billion in the fourth quarter of 2023. NIW was $52.0 billion for the full year 2024, compared to $52.7 billion for the prior year. Purchase NIW decreased 5% in the fourth quarter of 2024 compared to the third quarter of 2024 and decreased 8% compared to the fourth quarter of 2023. Refinances accounted for 10% of total NIW in the fourth quarter of 2024, compared to 4% in the third quarter of 2024, and 1% in the fourth quarter of 2023. Total primary mortgage insurance in force of $275.1 billion as of December 31, 2024, compared to $274.7 billion as of September 30, 2024, and $270.0 billion as of December 31, 2023. Persistency, which is the percentage of mortgage insurance that remains in force after a twelve-month period, was 84% for the twelve months ended December 31, 2024, compared to 84% for the twelve months ended September 30, 2024, and 84% for the twelve months ended December 31, 2023. Annualized persistency for the three months ended December 31, 2024, was 83%, compared to 84% for the three months ended September 30, 2024, and 86% for the three months ended December 31, 2023. Net mortgage insurance premiums earned were $235 million for the fourth quarter of 2024, compared to $235 million for the third quarter of 2024, and $230 million for the fourth quarter of 2023. Mortgage insurance in force portfolio premium yield was 38.0 basis points in the fourth quarter of 2024. This compares to 38.2 basis points in the third quarter of 2024 and 38.1 basis points in the fourth quarter of 2023. Total net mortgage insurance premium yield, which includes the impact of ceded premiums earned and accrued profit commission, was 34.2 basis points in the fourth quarter of 2024. This compares to 34.4 basis points in the third quarter of 2024, and 34.2 basis points in the fourth quarter of 2023. Details regarding premiums earned may be found in Exhibit D. The mortgage insurance provision for losses was a de minimis amount in the fourth quarter of 2024, compared to a provision of $6 million in the third quarter of 2024 and a provision of $5 million in the fourth quarter of 2023. Favorable reserve development on prior period defaults was $56 million in the fourth quarter of 2024, compared to $51 million in the third quarter of 2024 and $49 million in the fourth quarter of 2023. The number of primary delinquent loans was 24,055 as of December 31, 2024, compared to 22,350 as of September 30, 2024, and 22,021 as of December 31, 2023. This increase in delinquent loans is consistent with seasonal credit trends and the natural seasoning of the insured portfolio and reflects the growth in the company’s total primary mortgage insurance in force in recent years. The loss ratio in the fourth quarter of 2024 was 0%, compared to 3% in the third quarter of 2024, and 2% in the fourth quarter of 2023. Total mortgage insurance claims paid were $5 million in the fourth quarter of 2024, compared to $3 million in the third quarter of 2024 and $3 million in the fourth quarter of 2023. For the full year 2024, total net claims paid, which includes the impact of settlements and commutations, were $17 million, compared to $14 million for the full year 2023. Additional details regarding mortgage insurance provision for losses may be found in Exhibit D. Other operating expenses were $88 million in the fourth quarter of 2024, compared to $86 million in the third quarter of 2024, and $95 million in the fourth quarter of 2023. Other operating expenses were $348 million for the full year 2024, compared to $348 million for the full year 2023. Other operating expenses in the fourth quarter of 2024 included $13 million of impairment expenses related to internal-use software and lease-related assets. Additional details regarding other operating expenses may be found in Exhibit D. CAPITAL AND LIQUIDITY UPDATE Radian Group During the fourth quarter of 2024, the company repurchased 2.2 million shares of Radian Group common stock at a total cost of $75 million. For the full year 2024, the company repurchased 7.0 million shares of Radian Group common stock at a total cost of $224 million. As of December 31, 2024, purchase authority of up to $543 million remained available under the existing program. Radian Group paid a dividend on its common stock in the amount of $0.245 per share, totaling $36 million, in the fourth quarter of 2024. For the full year 2024, the company paid total dividends of $152 million. As of December 31, 2024, Radian Group maintained $885 million of available liquidity. Total holding company liquidity, including the company’s undrawn $275 million unsecured revolving credit facility, was $1.2 billion as of December 31, 2024. Radian Guaranty Radian Guaranty paid an ordinary dividend to Radian Group of $190 million in the fourth quarter of 2024, bringing total dividends paid during 2024 to $675 million. At December 31, 2024, Radian Guaranty’s Available Assets under PMIERs totaled $6.0 billion, resulting in PMIERs excess Available Assets of $2.2 billion. RECENT EVENTS On January 16, 2025, Fitch Ratings (“Fitch”) upgraded the insurance financial strength (IFS) rating of Radian Guaranty to A from A-. In the same rating action, Fitch also upgraded the senior unsecured debt rating of Radian Group Inc. to BBB from BBB-. The outlook for the ratings is stable. CONFERENCE CALL Radian will discuss fourth quarter 2024 financial results in a conference call tomorrow, Thursday, February 6, 2025, at 11:00 a.m. Eastern time. The conference call will be webcast live on the company’s website at https://radian.com/who-we-are/for-investors/webcasts or at www.radian.com. The webcast is listen-only. Those interested in participating in the question-and-answer session should follow the conference call dial-in instructions below. The call may be accessed via telephone by registering for the call here to receive the dial-in numbers and unique PIN. It is recommended that you join 10 minutes prior to the event start (although you may register and dial in at any time during the call). A digital replay of the webcast will be available on Radian’s website approximately two hours after the live broadcast ends for a period of one year at https://radian.com/who-we-are/for-investors/webcasts. In addition to the information provided in the company’s earnings news release, other statistical and financial information, which is expected to be referred to during the conference call, will be available on Radian’s website at www.radian.com, under Investors. NON-GAAP FINANCIAL MEASURES Radian believes that adjusted pretax operating income (loss), adjusted diluted net operating income (loss) per share and adjusted net operating return on equity (non-GAAP measures) facilitate evaluation of the company’s fundamental financial performance and provide relevant and meaningful information to investors about the ongoing operating results of the company. On a consolidated basis, these measures are not recognized in accordance with accounting principles generally accepted in the United States of America (GAAP) and should not be considered in isolation or viewed as substitutes for GAAP measures of performance. The measures described below have been established in order to increase transparency for the purpose of evaluating the company’s operating trends and enabling more meaningful comparisons with Radian’s competitors. Adjusted pretax operating income (loss) is defined as GAAP consolidated pretax income (loss) excluding the effects of: (i) net gains (losses) on investments and other financial instruments, except for those investments and other financial instruments attributable to our Mortgage Conduit business; (ii) amortization and impairment of goodwill and other acquired intangible assets; and (iii) impairment of other long-lived assets and other non-operating items, if any, such as gains (losses) from the sale of lines of business, acquisition-related income (expenses) and gains (losses) on extinguishment of debt. Adjusted diluted net operating income (loss) per share is calculated by dividing adjusted pretax operating income (loss) attributable to common stockholders, net of taxes computed using the company’s statutory tax rate, by the sum of the weighted average number of common shares outstanding and all dilutive potential common shares outstanding. Adjusted net operating return on equity is calculated by dividing annualized adjusted pretax operating income (loss), net of taxes computed using the company’s statutory tax rate, by average stockholders’ equity, based on the average of the beginning and ending balances for each period presented. See Exhibit F or Radian’s website for a description of these items, as well as Exhibit G for reconciliations to the most comparable consolidated GAAP measures. ABOUT RADIAN Radian Group Inc. (NYSE: RDN) is a catalyst for homeownership that transforms risk into opportunity through services and technologies that empower housing and capital market participants to act with confidence. The Radian family of companies is shaping the future of mortgage and real estate services through products and services that include industry-leading mortgage insurance and a comprehensive suite of mortgage, risk, real estate, and title services. Visit www.radian.com to see how we’re creating possibilities for a place to call home. FINANCIAL RESULTS AND SUPPLEMENTAL INFORMATION CONTENTS (Unaudited) Exhibit A: Condensed Consolidated Statements of Operations Exhibit B: Net Income Per Share Exhibit C: Condensed Consolidated Balance Sheets Exhibit D: Condensed Consolidated Statements of Operations Detail Exhibit E: Segment Information Exhibit F: Definition of Consolidated Non-GAAP Financial Measures Exhibit G: Consolidated Non-GAAP Financial Measure Reconciliations Exhibit H: Mortgage Insurance Supplemental Information - New Insurance Written Exhibit I: Mortgage Insurance Supplemental Information - Primary Insurance in Force and Risk in Force Radian Group Inc. and Subsidiaries Condensed Consolidated Statements of Operations (1) Exhibit A (page 1 of 2) 2024 2023 (In thousands, except per-share amounts) Qtr 4 Qtr 3 Qtr 2 Qtr 1 Qtr 4 Revenues Net premiums earned $ 238,562 $ 239,133 $ 237,731 $ 235,857 $ 232,649 Services revenue 12,250 12,167 13,265 12,588 12,419 Net investment income 71,310 78,396 73,766 69,221 68,824 Net gains (losses) on investments and other financial instruments (8,291 ) 2,174 (4,487 ) 490 13,447 Income (loss) on consolidated VIEs (467 ) 465 — — — Other income 2,497 1,522 872 1,262 1,305 Total revenues 315,861 333,857 321,147 319,418 328,644 Expenses Provision for losses (624 ) 6,889 (1,745 ) (7,034 ) 4,170 Policy acquisition costs 7,276 6,724 6,522 6,794 6,147 Cost of services 9,867 9,542 9,535 9,327 8,950 Other operating expenses 87,703 85,919 91,648 82,636 95,218 Interest expense 22,513 29,391 27,064 29,046 23,169 Impairment of goodwill — — — — 9,802 Amortization of other acquired intangible assets — — — — 1,371 Total expenses 126,735 138,465 133,024 120,769 148,827 Pretax income 189,126 195,392 188,123 198,649 179,817 Income tax provision 40,835 43,500 36,220 46,295 37,124 Net income $ 148,291 $ 151,892 $ 151,903 $ 152,354 $ 142,693 Diluted net income per share $ 0.98 $ 0.99 $ 0.98 $ 0.98 $ 0.91 (1) See Exhibit D for additional details. Radian Group Inc. and Subsidiaries Condensed Consolidated Statements of Operations (1) Exhibit A (page 2 of 2) Years Ended December 31, (In thousands, except per-share amounts) 2024 2023 Revenues Net premiums earned $ 951,283 $ 919,578 Services revenue 50,270 46,092 Net investment income 292,693 258,430 Net gains (losses) on investments and other financial instruments (10,114 ) 10,241 Income (loss) on consolidated VIEs (2 ) — Other income 6,153 6,247 Total revenues 1,290,283 1,240,588 Expenses Provision for losses (2,514 ) (42,526 ) Policy acquisition costs 27,316 24,578 Cost of services 38,271 38,491 Other operating expenses 347,906 347,578 Interest expense 108,014 89,695 Impairment of goodwill — 9,802 Amortization of other acquired intangible assets — 5,483 Total expenses 518,993 473,101 Pretax income 771,290 767,487 Income tax provision 166,850 164,368 Net income $ 604,440 $ 603,119 Diluted net income per share $ 3.92 $ 3.77 (1) See Exhibit D for additional details. Radian Group Inc. and Subsidiaries Net Income Per Share Exhibit B The calculation of basic and diluted net income per share is as follows. 2024 2023 (In thousands, except per-share amounts) Qtr 4 Qtr 3 Qtr 2 Qtr 1 Qtr 4 Net income—basic and diluted $ 148,291 $ 151,892 $ 151,903 $ 152,354 $ 142,693 Average common shares outstanding—basic 150,302 151,846 153,110 153,817 155,318 Dilutive effect of share-based compensation arrangements (1) 1,610 1,227 1,289 2,154 1,909 Adjusted average common shares outstanding—diluted 151,912 153,073 154,399 155,971 157,227 Basic net income per share $ 0.99 $ 1.00 $ 0.99 $ 0.99 $ 0.92 Diluted net income per share $ 0.98 $ 0.99 $ 0.98 $ 0.98 $ 0.91 (1) The following number of shares of our common stock equivalents issued under our share-based compensation arrangements are not included in the calculation of diluted net income per share because their effect would be anti-dilutive. 2024 2023 (In thousands) Qtr 4 Qtr 3 Qtr 2 Qtr 1 Qtr 4 Shares of common stock equivalents 9 — 64 — — Years Ended December 31, (In thousands, except per-share amounts) 2024 2023 Net income—basic and diluted $ 604,440 $ 603,119 Average common shares outstanding—basic 152,465 158,140 Dilutive effect of share-based compensation arrangements (1) 1,726 1,993 Adjusted average common shares outstanding—diluted 154,191 160,133 Basic net income per share $ 3.96 $ 3.81 Diluted net income per share $ 3.92 $ 3.77 (1) The following number of shares of our common stock equivalents issued under our share-based compensation arrangements are not included in the calculation of diluted net income per share because their effect would be anti-dilutive. Years Ended December 31, (In thousands) 2024 2023 Shares of common stock equivalents 11 14 Radian Group Inc. and Subsidiaries Condensed Consolidated Balance Sheets Exhibit C Dec 31, Sep 30, Jun 30, Mar 31, Dec 31, (In thousands, except per-share amounts) 2024 2024 2024 2024 2023 Assets Investments $ 6,345,236 $ 6,497,180 $ 6,588,149 $ 6,327,114 $ 6,085,654 Cash 38,823 28,061 13,791 26,993 18,999 Restricted cash 2,649 2,014 1,993 1,832 1,066 Accrued investment income 49,053 49,707 47,607 46,334 45,783 Accounts and notes receivable 128,093 138,439 137,777 130,095 123,857 Reinsurance recoverable 36,433 34,015 31,064 28,151 25,909 Deferred policy acquisition costs 17,746 18,430 18,566 18,561 18,718 Property and equipment, net 27,637 41,892 56,360 60,521 63,822 Prepaid federal income taxes 921,080 870,336 837,736 750,320 750,320 Other assets 375,931 384,666 396,600 369,944 459,805 Consolidated VIE assets (1) 721,307 355,031 — — — Total assets $ 8,663,988 $ 8,419,771 $ 8,129,643 $ 7,759,865 $ 7,593,933 Liabilities and stockholders’ equity Reserve for losses and loss adjustment expense $ 360,326 $ 363,225 $ 357,470 $ 361,833 $ 370,148 Unearned premiums 188,337 198,007 206,094 215,124 225,396 Senior notes 1,065,337 1,064,718 1,513,782 1,512,860 1,417,781 Secured borrowings 538,294 551,916 484,665 207,601 119,476 Net deferred tax liability 746,685 737,605 656,113 626,353 589,564 Other liabilities 431,556 457,155 429,200 396,362 473,763 Consolidated VIE liabilities (1) 709,595 348,292 — — — Total liabilities 4,040,130 3,720,918 3,647,324 3,320,133 3,196,128 Common stock 168 171 172 171 173 Treasury stock (968,246 ) (967,717 ) (967,218 ) (946,202 ) (945,870 ) Additional paid-in capital 1,246,826 1,315,046 1,356,341 1,390,436 1,430,594 Retained earnings 4,695,348 4,584,453 4,470,335 4,357,823 4,243,759 Accumulated other comprehensive income (loss) (350,238 ) (233,100 ) (377,311 ) (362,496 ) (330,851 ) Total stockholders’ equity 4,623,858 4,698,853 4,482,319 4,439,732 4,397,805 Total liabilities and stockholders’ equity $ 8,663,988 $ 8,419,771 $ 8,129,643 $ 7,759,865 $ 7,593,933 Shares outstanding 147,569 149,776 151,148 151,509 153,179 Book value per share $ 31.33 $ 31.37 $ 29.66 $ 29.30 $ 28.71 Holding company debt-to-capital ratio (2) 18.7 % 18.5 % 25.2 % 25.4 % 24.4 % (1) Reflects the consolidation of Radian Mortgage Capital’s private label securitizations, net of our retained interest in these transactions. We determined that we are the primary beneficiary of these securitization trusts, which are each considered to be a variable interest entity (“VIE”), thereby requiring us to consolidate the VIE. (2) Calculated as carrying value of senior notes, which were issued and are owed by our holding company, divided by carrying value of senior notes and stockholders’ equity. This holding company ratio does not include the effects of amounts owed by our subsidiaries related to secured borrowings. Radian Group Inc. and Subsidiaries Condensed Consolidated Statements of Operations Detail Exhibit D (page 1 of 4) Net Premiums Earned 2024 2023 (In thousands) Qtr 4 Qtr 3 Qtr 2 Qtr 1 Qtr 4 Direct - Mortgage insurance Premiums earned, excluding revenue from cancellations $ 261,017 $ 261,726 $ 259,342 $ 258,593 $ 256,632 Single Premium Policy cancellations 2,363 1,783 2,076 2,114 2,058 Total direct - Mortgage insurance 263,380 263,509 261,418 260,707 258,690 Ceded - Mortgage insurance Premiums earned, excluding revenue from cancellations (43,239 ) (41,894 ) (39,925 ) (38,997 ) (40,065 ) Single Premium Policy cancellations (1) 952 818 732 (112 ) (444 ) Profit commission - other (2) 14,183 12,711 12,593 12,401 12,199 Total ceded premiums - Mortgage insurance (28,104 ) (28,365 ) (26,600 ) (26,708 ) (28,310 ) Net premiums earned - Mortgage insurance 235,276 235,144 234,818 233,999 230,380 Net premiums earned - Title insurance 3,286 3,989 2,913 1,858 2,269 Net premiums earned $ 238,562 $ 239,133 $ 237,731 $ 235,857 $ 232,649 (1) Includes the impact of related profit commissions. (2) The amounts represent the profit commission under our QSR Program, excluding the impact of Single Premium Policy cancellations. Services Revenue 2024 2023 (In thousands) Qtr 4 Qtr 3 Qtr 2 Qtr 1 Qtr 4 Mortgage Insurance Contract underwriting services $ 261 $ 244 $ 309 $ 210 $ 202 All Other Real estate services 7,733 7,876 8,777 9,193 8,888 Title 3,645 3,427 3,540 2,573 2,713 Real estate technology 611 620 639 612 616 Total services revenue $ 12,250 $ 12,167 $ 13,265 $ 12,588 $ 12,419 Net Investment Income 2024 2023 (In thousands) Qtr 4 Qtr 3 Qtr 2 Qtr 1 Qtr 4 Fixed maturities $ 57,238 $ 59,348 $ 57,924 $ 57,259 $ 58,669 Equity securities 3,350 3,047 3,067 2,539 3,753 Mortgage loans held for sale 7,537 7,828 5,411 1,793 1,725 Short-term investments 4,478 9,686 8,614 8,958 5,871 Other (1) (1,293 ) (1,513 ) (1,250 ) (1,328 ) (1,194 ) Net investment income $ 71,310 $ 78,396 $ 73,766 $ 69,221 $ 68,824 (1) Includes investment management expenses, as well as the net impact from our securities lending activities. Radian Group Inc. and Subsidiaries Condensed Consolidated Statements of Operations Detail Exhibit D (page 2 of 4) Provision for Losses 2024 2023 (In thousands) Qtr 4 Qtr 3 Qtr 2 Qtr 1 Qtr 4 Mortgage insurance Current period defaults (1) $ 55,795 $ 57,032 $ 47,918 $ 53,688 $ 53,981 Prior period defaults (2) (55,734 ) (50,686 ) (49,687 ) (60,574 ) (49,373 ) Total Mortgage insurance 61 6,346 (1,769 ) (6,886 ) 4,608 Title insurance (685 ) 543 24 (148 ) (438 ) Total provision for losses $ (624 ) $ 6,889 $ (1,745 ) $ (7,034 ) $ 4,170 (1) Related to defaulted loans with the most recent default notice dated in the period indicated. For example, if a loan had defaulted in a prior period, but then subsequently cured and later re-defaulted in the current period, the default would be considered a current period default. (2) Related to defaulted loans with a default notice dated in a period earlier than the period indicated, which have been continuously in default since that time. Other Operating Expenses 2024 2023 (In thousands) Qtr 4 Qtr 3 Qtr 2 Qtr 1 Qtr 4 Salaries and other base employee expenses $ 32,561 $ 32,851 $ 41,431 $ 39,723 $ 34,182 Variable and share-based incentive compensation 20,342 17,581 23,223 17,515 20,262 Other general operating expenses (1) 40,385 39,984 31,623 30,262 45,186 Ceding commissions (6,620 ) (6,276 ) (5,957 ) (5,644 ) (5,327 ) Title agent commissions 1,035 1,779 1,328 780 915 Total $ 87,703 $ 85,919 $ 91,648 $ 82,636 $ 95,218 (1) Includes $13 million, $10 million and $14 million in the fourth quarter of 2024, the third quarter of 2024 and the fourth quarter of 2023, respectively, of impairment of long-lived assets, consisting of impairments to our internal-use software and lease-related assets. Interest Expense 2024 2023 (In thousands) Qtr 4 Qtr 3 Qtr 2 Qtr 1 Qtr 4 Senior notes $ 15,791 $ 20,945 $ 21,156 $ 22,128 $ 20,335 Mortgage loan financing facilities 5,963 7,500 5,107 1,438 1,421 Loss on extinguishment of debt — — — 4,275 — FHLB advances 403 538 544 945 1,059 Revolving credit facility 356 408 257 260 354 Total interest expense $ 22,513 $ 29,391 $ 27,064 $ 29,046 $ 23,169 Radian Group Inc. and Subsidiaries Condensed Consolidated Statements of Operations Detail Exhibit D (page 3 of 4) Net Premiums Earned Years Ended December 31, (In thousands) 2024 2023 Direct - Mortgage insurance Premiums earned, excluding revenue from cancellations $ 1,040,678 $ 1,015,238 Single Premium Policy cancellations 8,336 14,703 Total direct - Mortgage insurance 1,049,014 1,029,941 Ceded - Mortgage insurance Premiums earned, excluding revenue from cancellations (164,055 ) (165,870 ) Single Premium Policy cancellations (1) 2,390 (3,903 ) Profit commission - other (2) 51,888 49,195 Total ceded premiums - Mortgage insurance (109,777 ) (120,578 ) Net premiums earned - Mortgage insurance 939,237 909,363 Net premiums earned - Title insurance 12,046 10,215 Net premiums earned $ 951,283 $ 919,578 (1) Includes the impact of related profit commissions. (2) The amounts represent the profit commission under our QSR Program, excluding the impact of Single Premium Policy cancellations. Services Revenue Years Ended December 31, (In thousands) 2024 2023 Mortgage Insurance Contract underwriting services $ 1,024 $ 1,088 All Other Real estate services 33,579 30,927 Title 13,185 11,464 Real estate technology 2,482 2,613 Total services revenue $ 50,270 $ 46,092 Net Investment Income Years Ended December 31, (In thousands) 2024 2023 Fixed maturities $ 231,769 $ 226,654 Equity securities 12,003 13,420 Mortgage loans held for sale 22,569 4,212 Short-term investments 31,736 18,840 Other (1) (5,384 ) (4,696 ) Net investment income $ 292,693 $ 258,430 (1) Includes investment management expenses, as well as the net impact from our securities lending activities. Radian Group Inc. and Subsidiaries Condensed Consolidated Statements of Operations Detail Exhibit D (page 4 of 4) Provision for Losses Years Ended December 31, (In thousands) 2024 2023 Mortgage insurance Current period defaults (1) $ 197,719 $ 178,664 Prior period defaults (2) (199,967 ) (220,800 ) Total Mortgage insurance (2,248 ) (42,136 ) Title insurance (266 ) (390 ) Total provision for losses $ (2,514 ) $ (42,526 ) (1) Related to defaulted loans with the most recent default notice dated in the period indicated. For example, if a loan had defaulted in a prior period, but then subsequently cured and later re-defaulted in the current period, the default would be considered a current period default. (2) Related to defaulted loans with a default notice dated in a period earlier than the period indicated, which have been continuously in default since that time. Other Operating Expenses Years Ended December 31, (In thousands) 2024 2023 Salaries and other base employee expenses $ 146,565 $ 141,550 Variable and share-based incentive compensation 78,661 76,989 Other general operating expenses (1) 142,254 144,516 Ceding commissions (24,497 ) (19,932 ) Title agent commissions 4,923 4,455 Total $ 347,906 $ 347,578 (1) Includes $23 million and $14 million in 2024 and 2023, respectively, of impairment of long-lived assets, consisting of impairments to our internal-use software and lease-related assets. Interest Expense Years Ended December 31, (In thousands) 2024 2023 Senior notes $ 80,020 $ 81,246 Mortgage loan financing facilities 20,008 3,507 Loss on extinguishment of debt 4,275 — FHLB advances 2,430 3,454 Revolving credit facility 1,281 1,374 Other — 114 Total interest expense $ 108,014 $ 89,695 Radian Group Inc. and Subsidiaries Segment Information Exhibit E (page 1 of 5) Summarized financial information concerning our operating segments as of and for the periods indicated is as follows. For a definition of adjusted pretax operating income (loss), along with a reconciliation to its consolidated GAAP measure, see Exhibits F and G. Three Months Ended December 31, 2024 (In thousands) Mortgage Insurance All Other (1) Inter- segment Total Net premiums written $ 231,979 $ 3,286 $ — $ 235,265 (Increase) decrease in unearned premiums 3,297 — — 3,297 Net premiums earned 235,276 3,286 — 238,562 Services revenue 262 12,088 (100 ) 12,250 Net investment income 51,541 19,769 — 71,310 Net gains (losses) on investments and other financial instruments — (1,521 ) — (1,521 ) Income (loss) on consolidated VIEs — (467 ) — (467 ) Other income 1,707 826 (36 ) 2,497 Total 288,786 33,981 (136 ) 322,631 Provision for losses 61 (685 ) — (624 ) Policy acquisition costs 7,276 — — 7,276 Cost of services 99 9,768 — 9,867 Other operating expenses before allocated corporate operating expenses 15,582 21,644 (136 ) 37,090 Interest expense 16,550 5,963 — 22,513 Total 39,568 36,690 (136 ) 76,122 Adjusted pretax operating income (loss) before allocated corporate operating expenses 249,218 (2,709 ) — 246,509 Allocation of corporate operating expenses 34,011 3,661 — 37,672 Adjusted pretax operating income (loss) (2) $ 215,207 $ (6,370 ) $ — $ 208,837 Radian Group Inc. and Subsidiaries Segment Information Exhibit E (page 2 of 5) Three Months Ended December 31, 2023 (In thousands) Mortgage Insurance All Other (1) Inter- segment Total Net premiums written $ 225,112 $ 2,269 $ — $ 227,381 (Increase) decrease in unearned premiums 5,268 — — 5,268 Net premiums earned 230,380 2,269 — 232,649 Services revenue 202 12,311 (94 ) 12,419 Net investment income 51,061 17,763 — 68,824 Net gains (losses) on investments and other financial instruments — 356 — 356 Other income 1,302 14 (11 ) 1,305 Total 282,945 32,713 (105 ) 315,553 Provision for losses 4,608 (438 ) — 4,170 Policy acquisition costs 6,147 — — 6,147 Cost of services 157 8,793 — 8,950 Other operating expenses before allocated corporate operating expenses 15,559 23,660 (105 ) 39,114 Interest expense 21,748 1,421 — 23,169 Total 48,219 33,436 (105 ) 81,550 Adjusted pretax operating income (loss) before allocated corporate operating expenses 234,726 (723 ) — 234,003 Allocation of corporate operating expenses 36,929 5,340 — 42,269 Adjusted pretax operating income (loss) (2) $ 197,797 $ (6,063 ) $ — $ 191,734 Year Ended December 31, 2024 (In thousands) Mortgage Insurance All Other (1) Inter- segment Total Net premiums written $ 930,149 $ 12,046 $ — $ 942,195 (Increase) decrease in unearned premiums 9,088 — — 9,088 Net premiums earned 939,237 12,046 — 951,283 Services revenue 1,025 49,646 (401 ) 50,270 Net investment income 201,453 91,240 — 292,693 Net gains (losses) on investments and other financial instruments — (5,798 ) — (5,798 ) Income (loss) on consolidated VIEs — (2 ) — (2 ) Other income 5,649 582 (78 ) 6,153 Total 1,147,364 147,714 (3) (479 ) 1,294,599 Provision for losses (2,248 ) (266 ) — (2,514 ) Policy acquisition costs 27,316 — — 27,316 Cost of services 534 37,737 — 38,271 Other operating expenses before allocated corporate operating expenses 66,417 99,106 (479 ) 165,044 Interest expense 83,731 20,008 — 103,739 Total 175,750 156,585 (479 ) 331,856 Adjusted pretax operating income (loss) before allocated corporate operating expenses 971,614 (8,871 ) — 962,743 Allocation of corporate operating expenses 144,251 15,487 — 159,738 Adjusted pretax operating income (loss) (2) $ 827,363 $ (24,358 ) $ — $ 803,005 Radian Group Inc. and Subsidiaries Segment Information Exhibit E (page 3 of 5) Year Ended December 31, 2023 (In thousands) Mortgage Insurance All Other (1) Inter- segment Total Net premiums written $ 904,240 $ 10,215 $ — $ 914,455 (Increase) decrease in unearned premiums 5,123 — — 5,123 Net premiums earned 909,363 10,215 — 919,578 Services revenue 1,088 45,394 (390 ) 46,092 Net investment income 195,077 63,353 — 258,430 Net gains (losses) on investments and other financial instruments — 814 — 814 Income (loss) on consolidated VIEs — — — — Other income 5,372 27 (20 ) 5,379 Total 1,110,900 119,803 (3) (410 ) 1,230,293 Provision for losses (42,136 ) (390 ) — (42,526 ) Policy acquisition costs 24,578 — — 24,578 Cost of services 713 37,778 — 38,491 Other operating expenses before allocated corporate operating expenses 71,150 99,030 (410 ) 169,770 Interest expense 86,188 3,507 — 89,695 Total 140,493 139,925 (410 ) 280,008 Adjusted pretax operating income (loss) before allocated corporate operating expenses 970,407 (20,122 ) — 950,285 Allocation of corporate operating expenses 140,583 23,275 — 163,858 Adjusted pretax operating income (loss) (2) $ 829,824 $ (43,397 ) $ — $ 786,427 (1) All Other activities include: (i) income (losses) from assets held by our holding company; (ii) related general corporate operating expenses not attributable or allocated to our reportable segments; and (iii) the operating results from certain other immaterial activities and operating segments, including our mortgage conduit, title, real estate services and real estate technology businesses. (2) See Exhibits F and G for additional information on the use and definition of this term and a reconciliation to consolidated net income. (3) Details of All Other revenue are as follows. Years Ended December 31, (In thousands) 2024 2023 Holding company (a) $ 63,361 $ 57,017 Real estate services 34,868 31,300 Title 27,503 23,662 Mortgage conduit 19,291 5,144 Real estate technology 2,691 2,680 Total $ 147,714 $ 119,803 (a) Consists of net investment income earned from assets held by Radian Group, our holding company, that are not attributable or allocated to our underlying businesses. Radian Group Inc. and Subsidiaries Segment Information Exhibit E (page 4 of 5) Mortgage Insurance 2024 2023 (In thousands) Qtr 4 Qtr 3 Qtr 2 Qtr 1 Qtr 4 Net premiums written $ 231,979 $ 233,648 $ 232,645 $ 231,877 $ 225,112 (Increase) decrease in unearned premiums 3,297 1,496 2,173 2,122 5,268 Net premiums earned 235,276 235,144 234,818 233,999 230,380 Services revenue 262 244 309 210 202 Net investment income 51,541 50,236 50,102 49,574 51,061 Other income 1,707 1,948 754 1,240 1,302 Total 288,786 287,572 285,983 285,023 282,945 Provision for losses 61 6,346 (1,769 ) (6,886 ) 4,608 Policy acquisition costs 7,276 6,724 6,522 6,794 6,147 Cost of services 99 126 156 153 157 Other operating expenses before allocated corporate operating expenses 15,582 16,408 17,157 17,270 15,559 Interest expense 16,550 21,891 21,957 23,333 21,748 Total 39,568 51,495 44,023 40,664 48,219 Adjusted pretax operating income before allocated corporate operating expenses 249,218 236,077 241,960 244,359 234,726 Allocation of corporate operating expenses 34,011 32,534 43,197 34,509 36,929 Adjusted pretax operating income (1) $ 215,207 $ 203,543 $ 198,763 $ 209,850 $ 197,797 All Other (2) 2024 2023 (In thousands) Qtr 4 Qtr 3 Qtr 2 Qtr 1 Qtr 4 Net premiums earned $ 3,286 $ 3,989 $ 2,913 $ 1,858 $ 2,269 Services revenue 12,088 12,001 13,064 12,493 12,311 Net investment income 19,769 28,160 23,664 19,647 17,763 Net gains (losses) on investments and other financial instruments (1,521 ) (4,611 ) (49 ) 383 356 Income (loss) on consolidated VIEs (467 ) 465 — — — Other income 826 (399 ) 130 25 14 Total (3) 33,981 39,605 39,722 34,406 32,713 Provision for losses (685 ) 543 24 (148 ) (438 ) Cost of services 9,768 9,416 9,379 9,174 8,793 Other operating expenses before allocated corporate operating expenses 21,644 23,583 26,615 27,264 23,660 Interest expense 5,963 7,500 5,107 1,438 1,421 Total 36,690 41,042 41,125 37,728 33,436 Adjusted pretax operating income (loss) before allocated corporate operating expenses (2,709 ) (1,437 ) (1,403 ) (3,322 ) (723 ) Allocation of corporate operating expenses 3,661 3,438 4,677 3,711 5,340 Adjusted pretax operating income (loss) (1) $ (6,370 ) $ (4,875 ) $ (6,080 ) $ (7,033 ) $ (6,063 ) Radian Group Inc. and Subsidiaries Segment Information Exhibit E (page 5 of 5) (1) See Exhibits F and G for additional information on the use and definition of this term and a reconciliation to consolidated net income. (2) All Other activities include: (i) income (losses) from assets held by our holding company; (ii) related general corporate operating expenses not attributable or allocated to our reportable segments; and (iii) the operating results from certain other immaterial activities and operating segments, including our mortgage conduit, title, real estate services and real estate technology businesses. (3) Details of All Other revenue are as follows. 2024 2023 (In thousands) 2024 Qtr 3 Qtr 2 Qtr 1 Qtr 4 Holding company (a) $ 10,670 $ 19,113 $ 17,042 $ 16,536 $ 15,374 Real estate services 8,056 8,185 9,110 9,517 9,014 Title 7,486 7,973 7,047 4,997 5,516 Mortgage conduit 7,128 3,658 5,815 2,690 2,171 Real estate technology 641 676 708 666 638 Total $ 33,981 $ 39,605 $ 39,722 $ 34,406 $ 32,713 (a) Consists of net investment income earned from assets held by Radian Group, our holding company, that are not attributable or allocated to our underlying businesses. Selected Mortgage Insurance Key Ratios 2024 2023 (In thousands) Qtr 4 Qtr 3 Qtr 2 Qtr 1 Qtr 4 Loss ratio (1) 0.0 % 2.7 % (0.8 )% (2.9 )% 2.0 % Expense ratio (2) 24.2 % 23.7 % 28.5 % 25.0 % 25.5 % Years Ended December 31, (In thousands) 2024 2023 Loss ratio (1) (0.2 )% (4.6 )% Expense ratio (2) 25.3 % 26.0 % (1) For our Mortgage Insurance segment, calculated as provision for losses expressed as a percentage of net premiums earned. (2) For our Mortgage Insurance segment, calculated as operating expenses, (which consist of policy acquisition costs and other operating expenses, as well as allocated corporate operating expenses), expressed as a percentage of net premiums earned. Radian Group Inc. and Subsidiaries Definition of Consolidated Non-GAAP Financial Measures Exhibit F (page 1 of 2) Use of Non-GAAP Financial Measures In addition to the traditional GAAP financial measures, we have presented “adjusted pretax operating income (loss),” “adjusted diluted net operating income (loss) per share” and “adjusted net operating return on equity,” which are non-GAAP financial measures for the consolidated company, among our key performance indicators to evaluate our fundamental financial performance. These non-GAAP financial measures align with the way our business performance is evaluated by both management and by our board of directors. These measures have been established in order to increase transparency for the purposes of evaluating our operating trends and enabling more meaningful comparisons with our peers. Although on a consolidated basis adjusted pretax operating income (loss), adjusted diluted net operating income (loss) per share and adjusted net operating return on equity are non-GAAP financial measures, we believe these measures aid in understanding the underlying performance of our operations. Our senior management, including our Chief Executive Officer (Radian’s chief operating decision maker), uses adjusted pretax operating income (loss) as our primary measure to evaluate the fundamental financial performance of our businesses and to allocate resources to them. Adjusted pretax operating income (loss) is defined as GAAP consolidated pretax income (loss) excluding the effects of: (i) net gains (losses) on investments and other financial instruments, except for those investments and other financial instruments attributable to our Mortgage Conduit business; (ii) amortization and impairment of goodwill and other acquired intangible assets; and (iii) impairment of other long-lived assets and other non-operating items, if any, such as gains (losses) from the sale of lines of business, acquisition-related income (expenses) and gains (losses) on extinguishment of debt. Adjusted diluted net operating income (loss) per share is calculated by dividing adjusted pretax operating income (loss) attributable to common stockholders, net of taxes computed using the company’s statutory tax rate, by the sum of the weighted average number of common shares outstanding and all dilutive potential common shares outstanding. Adjusted net operating return on equity is calculated by dividing annualized adjusted pretax operating income (loss), net of taxes computed using the company’s statutory tax rate, by average stockholders’ equity, based on the average of the beginning and ending balances for each period presented. Although adjusted pretax operating income (loss) excludes certain items that have occurred in the past and are expected to occur in the future, the excluded items represent those that are: (i) not viewed as part of the operating performance of our primary activities or (ii) not expected to result in an economic impact equal to the amount reflected in pretax income (loss). These adjustments, along with the reasons for their treatment, are described below. (1) Net gains (losses) on investments and other financial instruments. The recognition of realized investment gains or losses can vary significantly across periods as the activity is highly discretionary based on the timing of individual securities sales due to such factors as market opportunities, our tax and capital profile and overall market cycles. Unrealized gains and losses arise primarily from changes in the market value of our investments that are classified as trading or equity securities. These valuation adjustments may not necessarily result in realized economic gains or losses. Trends in the profitability of our fundamental operating activities can be more clearly identified without the fluctuations of these realized and unrealized gains or losses and changes in fair value of other financial instruments. Except for certain investments and other financial instruments attributable to specific operating segments, we do not view them to be indicative of our fundamental operating activities. (2) Amortization and impairment of goodwill and other acquired intangible assets. Amortization of acquired intangible assets represents the periodic expense required to amortize the cost of acquired intangible assets over their estimated useful lives. Acquired intangible assets are also periodically reviewed for potential impairment, and impairment adjustments are made whenever appropriate. We do not view these charges as part of the operating performance of our primary activities. (3) Impairment of other long-lived assets and other non-operating items, if any. Impairment of other long-lived assets and other non-operating items includes activities that we do not view to be indicative of our fundamental operating activities, such as: (i) impairment of internal-use software and other long-lived assets; (ii) gains (losses) from the sale of lines of business; (iii) acquisition-related income and expenses; and (iv) gains (losses) on extinguishment of debt. Radian Group Inc. and Subsidiaries Definition of Consolidated Non-GAAP Financial Measures Exhibit F (page 2 of 2) See Exhibit G for the reconciliations of the most comparable GAAP measures, consolidated pretax income (loss), diluted net income (loss) per share and return on equity to our non-GAAP financial measures for the consolidated company, adjusted pretax operating income (loss), adjusted diluted net operating income (loss) per share and adjusted net operating return on equity, respectively. Total adjusted pretax operating income (loss), adjusted diluted net operating income (loss) per share and adjusted net operating return on equity are not measures of overall profitability, and therefore, should not be considered in isolation or viewed as substitutes for GAAP pretax income (loss), diluted net income (loss) per share or return on equity. Our definitions of adjusted pretax operating income (loss), adjusted diluted net operating income (loss) per share and adjusted net operating return on equity may not be comparable to similarly-named measures reported by other companies. Radian Group Inc. and Subsidiaries Consolidated Non-GAAP Financial Measure Reconciliations Exhibit G (page 1 of 3) Reconciliation of Consolidated Pretax Income to Adjusted Pretax Operating Income 2024 2023 (In thousands) Qtr 4 Qtr 3 Qtr 2 Qtr 1 Qtr 4 Consolidated pretax income $ 189,126 $ 195,392 $ 188,123 $ 198,649 $ 179,817 Less reconciling income (expense) items Net gains (losses) on investments and other financial instruments (1) (6,770 ) 6,785 (4,438 ) 107 13,091 Amortization and impairment of goodwill and other acquired intangible assets — — — — (11,173 ) Impairment of other long-lived assets and other non-operating items (12,941 ) (2) (10,061 ) (2) (122 ) (4,275 ) (3) (13,835 ) (2) Total adjusted pretax operating income (4) $ 208,837 $ 198,668 $ 192,683 $ 202,817 $ 191,734 (1) Excludes net gains (losses) on investments and other financial instruments that are attributable to our Mortgage Conduit business, which are included in adjusted pretax operating income (loss). (2) This amount is included in other operating expenses on the Condensed Consolidated Statement of Operations in Exhibit A and primarily relates to impairment of other long-lived assets. (3) This amount is included in interest expense on the Condensed Consolidated Statement of Operations in Exhibit A and relates to the loss on extinguishment of debt. (4) Total adjusted pretax operating income consists of adjusted pretax operating income (loss) for our reportable segment and All Other activities as follows. 2024 2023 (In thousands) Qtr 4 Qtr 3 Qtr 2 Qtr 1 Qtr 4 Adjusted pretax operating income (loss) Mortgage Insurance segment $ 215,207 $ 203,543 $ 198,763 $ 209,850 $ 197,797 All Other activities (6,370 ) (4,875 ) (6,080 ) (7,033 ) (6,063 ) Total adjusted pretax operating income $ 208,837 $ 198,668 $ 192,683 $ 202,817 $ 191,734 Reconciliation of Diluted Net Income Per Share to Adjusted Diluted Net Operating Income Per Share 2024 2023 Qtr 4 Qtr 3 Qtr 2 Qtr 1 Qtr 4 Diluted net income per share $ 0.98 $ 0.99 $ 0.98 $ 0.98 $ 0.91 Less per-share impact of reconciling income (expense) items Net gains (losses) on investments and other financial instruments (0.04 ) 0.04 (0.03 ) — 0.08 Amortization and impairment of goodwill and other acquired intangible assets — — — — (0.07 ) Impairment of other long-lived assets and other non-operating items (0.09 ) (0.06 ) — (0.03 ) (0.09 ) Income tax (provision) benefit on reconciling income (expense) items (1) 0.03 — — 0.01 0.02 Difference between statutory and effective tax rates (0.01 ) (0.02 ) 0.02 (0.03 ) 0.01 Per-share impact of reconciling income (expense) items (0.11 ) (0.04 ) (0.01 ) (0.05 ) (0.05 ) Adjusted diluted net operating income per share (1) $ 1.09 $ 1.03 $ 0.99 $ 1.03 $ 0.96 (1) Calculated using the company’s federal statutory tax rate of 21%. Radian Group Inc. and Subsidiaries Consolidated Non-GAAP Financial Measure Reconciliations Exhibit G (page 2 of 3) Reconciliation of Return on Equity to Adjusted Net Operating Return on Equity (1) 2024 2023 Qtr 4 Qtr 3 Qtr 2 Qtr 1 Qtr 4 Return on equity (1) 12.7 % 13.2 % 13.6 % 13.8 % 13.4 % Less impact of reconciling income (expense) items (2) Net gains (losses) on investments and other financial instruments (0.6 )% 0.6 % (0.4 )% — % 1.2 % Amortization and impairment of goodwill and other acquired intangible assets — % — % — % — % (1.0 )% Impairment of other long-lived assets and other non-operating items (1.1 )% (0.9 )% — % (0.4 )% (1.3 )% Income tax (provision) benefit on reconciling income (expense) items (3) 0.3 % — % 0.1 % 0.1 % 0.2 % Difference between statutory and effective tax rates (0.1 )% (0.2 )% 0.3 % (0.4 )% 0.1 % Impact of reconciling income (expense) items (1.5 )% (0.5 )% — % (0.7 )% (0.8 )% Adjusted net operating return on equity (3) 14.2 % 13.7 % 13.6 % 14.5 % 14.2 % (1) Calculated by dividing annualized net income by average stockholders’ equity, based on the average of the beginning and ending balances for each period presented. (2) Annualized, as a percentage of average stockholders’ equity. (3) Calculated using the company’s federal statutory tax rate of 21%. Reconciliation of Consolidated Pretax Income to Adjusted Pretax Operating Income Years Ended December 31, (In thousands) 2024 2023 Consolidated pretax income $ 771,290 $ 767,487 Less reconciling income (expense) items Net gains (losses) on investments and other financial instruments (1) (4,316 ) 9,427 Amortization and impairment of goodwill and other acquired intangible assets — (15,285 ) Impairment of other long-lived assets and other non-operating items (2) (27,399 ) (13,082 ) Total adjusted pretax operating income (3) $ 803,005 $ 786,427 (1) Excludes net gains (losses) on investments and other financial instruments that are attributable to our Mortgage Conduit business, which are included in adjusted pretax operating income (loss). (2) Related primarily to impairments of internal-use software and lease-related assets, which are included in other operating expenses on the Condensed Consolidated Statement of Operations in Exhibit A. (3) Total adjusted pretax operating income consists of adjusted pretax operating income (loss) for our reportable segment and All Other activities as follows. Years Ended December 31, (In thousands) 2024 2023 Adjusted pretax operating income (loss) Mortgage Insurance segment $ 827,363 $ 829,824 All Other activities (24,358 ) (43,397 ) Total adjusted pretax operating income $ 803,005 $ 786,427 Radian Group Inc. and Subsidiaries Consolidated Non-GAAP Financial Measure Reconciliations Exhibit G (page 3 of 3) Reconciliation of Diluted Net Income Per Share to Adjusted Diluted Net Operating Income Per Share Years Ended December 31, 2024 2023 Diluted net income per share $ 3.92 $ 3.77 Less per-share impact of reconciling income (expense) items Net gains (losses) on investments and other financial instruments (0.03 ) 0.06 Amortization and impairment of goodwill and other acquired intangible assets — (0.09 ) Impairment of other long-lived assets and other non-operating items (0.17 ) (0.08 ) Income tax (provision) benefit on reconciling income (expense) items (1) 0.04 0.02 Difference between statutory and effective tax rates (0.03 ) (0.02 ) Per-share impact of reconciling income (expense) items (0.19 ) (0.11 ) Adjusted diluted net operating income per share (1) $ 4.11 $ 3.88 (1) Calculated using the company’s federal statutory tax rate of 21%. Reconciliation of Return on Equity to Adjusted Net Operating Return on Equity (1) Years Ended December 31, 2024 2023 Return on equity (1) 13.4 % 14.5 % Less impact of reconciling income (expense) items (2) Net gains (losses) on investments and other financial instruments (0.1 )% 0.2 % Amortization and impairment of goodwill and other acquired intangible assets — % (0.3 )% Impairment of other long-lived assets and other non-operating items (0.6 )% (0.3 )% Income tax (provision) benefit on reconciling income (expense) items (3) 0.1 % 0.1 % Difference between statutory and effective tax rates (0.1 )% (0.1 )% Impact of reconciling income (expense) items (0.7 )% (0.4 )% Adjusted net operating return on equity (3) 14.1 % 14.9 % (1) Calculated by dividing net income by average stockholders’ equity. (2) As a percentage of average stockholders’ equity. (3) Calculated using the company’s federal statutory tax rate of 21%. On a consolidated basis, “adjusted pretax operating income (loss),” “adjusted diluted net operating income (loss) per share” and “adjusted net operating return on equity” are measures not determined in accordance with GAAP. These measures should not be considered in isolation or viewed as substitutes for GAAP pretax income (loss), diluted net income (loss) per share, return on equity or net income (loss). Our definitions of adjusted pretax operating income (loss), adjusted diluted net operating income (loss) per share and adjusted net operating return on equity may not be comparable to similarly-named measures reported by other companies. See Exhibit F for additional information on our consolidated non-GAAP financial measures. Radian Group Inc. and Subsidiaries Mortgage Insurance Supplemental Information - New Insurance Written Exhibit H 2024 2023 ($ in millions) Qtr 4 Qtr 3 Qtr 2 Qtr 1 Qtr 4 NIW $ 13,186 $ 13,493 $ 13,902 $ 11,534 $ 10,629 NIW by premium type Direct monthly and other recurring premiums 96.4 % 95.9 % 96.5 % 96.7 % 96.4 % Direct single premiums 3.6 % 4.1 % 3.5 % 3.3 % 3.6 % NIW for purchases 90.4 % 95.6 % 98.3 % 96.9 % 98.8 % NIW for refinances 9.6 % 4.4 % 1.7 % 3.1 % 1.2 % NIW by FICO score (1) >=740 71.7 % 69.5 % 69.4 % 67.3 % 66.5 % 680-739 23.3 % 24.8 % 25.5 % 27.1 % 27.9 % 620-679 5.0 % 5.7 % 5.1 % 5.6 % 5.6 % <=619 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % Total NIW 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % NIW by LTV (2) 95.01% and above 15.9 % 16.5 % 16.5 % 15.4 % 15.4 % 90.01% to 95.00% 37.5 % 37.1 % 37.2 % 40.8 % 40.0 % 85.01% to 90.00% 31.7 % 31.5 % 32.4 % 31.3 % 31.3 % 85.00% and below 14.9 % 14.9 % 13.9 % 12.5 % 13.3 % Total NIW 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % (1) For loans with multiple borrowers, the percentage of NIW by FICO score represents the lowest of the borrowers’ FICO scores at origination. (2) At origination. Radian Group Inc. and Subsidiaries Mortgage Insurance Supplemental Information - Primary Insurance in Force and Risk in Force Exhibit I 2024 2023 ($ in millions) Qtr 4 Qtr 3 Qtr 2 Qtr 1 Qtr 4 Primary insurance in force $ 275,126 $ 274,721 $ 272,827 $ 270,986 $ 269,979 Primary risk in force (“RIF”) $ 72,074 $ 71,834 $ 71,109 $ 70,299 $ 69,710 Primary RIF by premium type Direct monthly and other recurring premiums 90.0 % 89.8 % 89.5 % 89.2 % 88.9 % Direct single premiums 10.0 % 10.2 % 10.5 % 10.8 % 11.1 % Primary RIF by FICO score (1) >=740 60.1 % 59.6 % 59.2 % 58.8 % 58.5 % 680-739 32.6 % 33.0 % 33.3 % 33.6 % 33.9 % 620-679 7.0 % 7.1 % 7.2 % 7.3 % 7.3 % <=619 0.3 % 0.3 % 0.3 % 0.3 % 0.3 % Total RIF 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % Primary RIF by LTV (2) 95.01% and above 19.8 % 19.5 % 19.2 % 18.9 % 18.6 % 90.01% to 95.00% 47.9 % 48.0 % 48.1 % 48.2 % 48.2 % 85.01% to 90.00% 27.3 % 27.3 % 27.3 % 27.1 % 27.1 % 85.00% and below 5.0 % 5.2 % 5.4 % 5.8 % 6.1 % Total RIF 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % Persistency Rate (12 months ended) 83.6 % 84.4 % 84.3 % 84.3 % 84.0 % Persistency Rate (quarterly, annualized) (3) 82.7 % 84.1 % 83.5 % 85.3 % 85.8 % (1) For loans with multiple borrowers, the percentage of primary RIF by FICO score represents the lowest of the borrowers’ FICO scores at origination. (2) At origination. (3) 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. FORWARD-LOOKING STATEMENTS All statements in this press release that address events, developments or results that we expect or anticipate may occur in the future are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the U.S. Private Securities Litigation Reform Act of 1995. In most cases, forward-looking statements may be identified by words such as “anticipate,” “may,” “will,” “could,” “should,” “would,” “expect,” “intend,” “plan,” “goal,” “contemplate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “seek,” “strategy,” “future,” “likely” or the negative or other variations on these words and other similar expressions. These statements, which may include, without limitation, projections regarding our future performance and financial condition, are made on the basis of management’s current views and assumptions with respect to future events. These statements speak only as of the date they were made, and we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. We operate in a changing environment where new risks emerge from time to time and it is not possible for us to predict all risks that may affect us. The forward-looking statements are not guarantees of future performance, and the forward-looking statements, as well as our prospects as a whole, are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements. These risks and uncertainties include, without limitation: the health of the U.S. housing market generally and changes in economic conditions that impact the size of the insurable mortgage market, the credit performance of our insured mortgage portfolio, the returns on our investments in residential mortgage loans acquired through our Mortgage Conduit business and other investments held in our investment portfolio, as well as our business prospects, including: changes resulting from inflationary pressures, the interest rate environment and the risk of higher unemployment rates; other macroeconomic stresses and uncertainties, including potential impacts resulting from the recent change in Presidential administrations and other political and geopolitical events, civil disturbances and endemics/pandemics or extreme weather events and other natural disasters that may adversely affect regional economic conditions and housing markets; changes in the way customers, investors, ratings agencies, regulators or legislators perceive our performance, financial strength and future prospects; Radian Guaranty’s ability to remain eligible under the PMIERs to insure loans purchased by the GSEs; our ability to maintain an adequate level of capital in our insurance subsidiaries to satisfy current and future regulatory requirements; changes in the charters or business practices of, or rules or regulations imposed by or applicable to, the GSEs or loans purchased by the GSEs, or changes in the requirements for Radian Guaranty to remain an approved insurer to the GSEs, such as changes in the PMIERs or the GSEs’ interpretation and application of the PMIERs or other applicable requirements; changes in the current housing finance system in the United States, including the roles and areas of primary focus of the FHA, the VA, the GSEs and private mortgage insurers in this system; our ability to successfully execute and implement our capital plans, including our risk distribution strategy through the capital markets, traditional reinsurance markets or other strategies, and to maintain sufficient holding company liquidity to meet our liquidity needs; our ability to successfully execute and implement our business plans and strategies, including plans and strategies that may require GSE and/or regulatory approvals and licenses, that are subject to complex compliance requirements that we may be unable to satisfy, or that may expose us to new risks, including those that could impact our capital and liquidity positions; risks related to the quality of third-party mortgage underwriting and mortgage loan servicing; a decrease in the Persistency Rates of our mortgage insurance on Monthly Premium Policies; competition in the private mortgage insurance industry generally, and more specifically: price competition in our mortgage insurance business and competition from the FHA and the VA as well as from other forms of credit enhancement, such as any potential GSE-sponsored alternatives to traditional mortgage insurance; U.S. political conditions and the impact of Presidential Executive Orders and legislative and regulatory activity (or inactivity), including adoption of (or failure to adopt) new laws and regulations, or changes in existing laws and regulations, or the way they are interpreted or applied; legal and regulatory claims, assertions, actions, reviews, audits, inquiries and investigations that could result in adverse judgments, settlements, fines, injunctions, restitutions or other relief that could require significant expenditures, new or increased reserves or have other effects on our business; the amount and timing of potential payments or adjustments associated with federal or other tax examinations; the possibility that we may fail to estimate accurately, especially in the event of an extended economic downturn or a period of extreme market volatility and economic uncertainty, the likelihood, magnitude and timing of losses in establishing loss reserves for our mortgage insurance business or to accurately calculate and/or project our Available Assets and Minimum Required Assets under the PMIERs, which could be impacted by, among other things, the size and mix of our IIF, changes to the PMIERs, the level of defaults in our portfolio, the reported status of defaults in our portfolio (including whether they are subject to mortgage forbearance, a repayment plan or a loan modification trial period), the level of cash flow generated by our insurance operations and our risk distribution strategies; volatility in our financial results caused by changes in the fair value of our assets and liabilities carried at fair value; changes in GAAP or SAP rules and guidance, or their interpretation; risks associated with investments to grow our existing businesses, or to pursue new lines of business or new products and services, including our ability and related costs to acquire, develop, launch and implement new and innovative technologies and digital products and services, whether these products and services receive broad customer acceptance or disrupt existing customer relationships, and additional financial risks related to these and other potential investments, including required changes in our investment, financing and hedging strategies, risks associated with our increased use of financial leverage, which could expose us to liquidity risks resulting from changes in the fair values of assets, and the risk that we may fail to achieve forecasted results, which could result in lower or negative earnings contribution; the effectiveness and security of our information technology systems and digital products and services, including the risk that these systems, products or services fail to operate as expected or planned or expose us to cybersecurity or third-party risks, including due to malware, unauthorized access, cyberattack, ransomware or other similar events; our ability to attract, develop and retain key employees; the amount of dividends, if any, that our insurance subsidiaries may distribute to us, which under applicable regulatory requirements is based primarily on the financial performance of our insurance subsidiaries, and therefore, may be impacted by general economic, competitive and other factors, many of which are beyond our control; and the ability of our operating subsidiaries to distribute amounts to us under our internal tax- and expense-sharing arrangements, which for our insurance subsidiaries are subject to regulatory review and could be terminated at the discretion of such regulators. For more information regarding these risks and uncertainties as well as certain additional risks that we face, you should refer to “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023, and to subsequent reports and registration statements filed from time to time with the U.S. Securities and Exchange Commission. We caution you not to place undue reliance on these forward-looking statements, which are current only as of the date on which we issued this press release. We do not intend to, and we disclaim any duty or obligation to, update or revise any forward-looking statements to reflect new information or future events or for any other reason.

Radian Announces Fourth Quarter and Full Year 2024 Financial Results

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