— Primary mortgage insurance in force increases 5% year-over-year to $261.5 billion —

— Total revenues increase 6% year-over-year to $311 million —

— Total holding company liquidity grows to $1.2 billion, including benefit from $100 million ordinary dividend paid by Radian Guaranty —

— PMIERs excess Available Assets of $1.7 billion (or 44% over the Minimum Required Assets) —

— GAAP net income of $158 million, or $0.98 per diluted share —

— Adjusted diluted net operating income of $0.98 per share —

— Return on equity of 15.7% —

Radian Group Inc. (NYSE:RDN) today reported net income for the quarter ended March 31, 2023, of $158 million, or $0.98 per diluted share. This compares with net income for the quarter ended March 31, 2022, of $181 million, or $1.01 per diluted share.

Key Financial Highlights	Quarter ended
($ in millions, except per-share amounts)	March 31, 2023	December 31, 2022	March 31, 2022
Total revenues ⁽¹⁾	$311	$315	$293
Net income ⁽¹⁾	$158	$162	$181
Diluted net income per share	$0.98	$1.01	$1.01
Consolidated pretax income	$204	$203	$234
Adjusted pretax operating income ⁽²⁾	$200	$213	$265
Adjusted diluted net operating income per share ^{(2) (3)}	$0.98	$1.05	$1.17
Return on equity ^{(1) (4)}	15.7%	17.0%	17.2%
Adjusted net operating return on equity ^{(2) (3)}	15.7%	17.6%	19.9%
New Insurance Written (NIW) - mortgage insurance	$11,261	$12,859	$18,655
Net premiums earned - mortgage insurance	$231	$230	$245
New defaults	10,624	10,735	9,393
Provision for losses - mortgage insurance	($17)	($44)	($84)
homegenius revenues	$13	$19	$34
Book value per share	$26.23	$24.95	$23.75
Accumulated other comprehensive income (loss) value per share ⁽⁵⁾	($2.47)	($2.91)	($0.74)
PMIERs Available Assets ⁽⁶⁾	$5,651	$5,553	$5,102
PMIERs excess Available Assets ⁽⁷⁾	$1,740	$1,727	$1,560
Total Holding Company Liquidity ⁽⁸⁾	$1,231	$1,178	$1,282
Total investments	$5,838	$5,693	$6,335
Primary mortgage insurance in force	$261,450	$260,994	$248,951
Percentage of primary loans in default ⁽⁹⁾	2.1%	2.2%	2.6%
Mortgage insurance loss reserves	$400	$421	$722

(1)		Total revenues and net income for the first quarter of 2023 includes a pretax net gain of $6 million on investments and other financial instruments compared with a pretax net gain on investments and other financial instruments of $7 million in the fourth quarter of 2022 and a pretax net loss on investments and other financial instruments of $29 million for the first quarter of 2022.
(2)		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.
(3)		Calculated using the company's statutory tax rate of 21%.
(4)		Calculated by dividing annualized net income by average stockholders' equity, based on the average of the beginning and ending balances for each period presented.
(5)		Included in book value per share for each period presented.
(6)		Represents Radian Guaranty's Available Assets, calculated in accordance with the Private Mortgage Insurer Eligibility Requirements (PMIERs) financial requirements in effect for each date shown.
(7)		Represents Radian Guaranty's excess or "cushion" of Available Assets over its Minimum Required Assets, calculated in accordance with the PMIERs financial requirements in effect for each date shown.
(8)		Represents Radian Group's total liquidity, including available capacity under its $275 million unsecured revolving credit facility.
(9)		Represents the number of primary loans in default as a percentage of the total number of insured primary loans.

Net income for the quarter ended March 31, 2023, was $158 million, or $0.98 per diluted share. This compares with net income for the quarter ended March 31, 2022, of $181 million, or $1.01 per diluted share.

Adjusted pretax operating income for the quarter ended March 31, 2023, was $200 million, or $0.98 per diluted share. This compares with adjusted pretax operating income for the quarter ended March 31, 2022, of $265 million, or $1.17 per diluted share.

Book value per share at March 31, 2023, was $26.23, compared to $24.95 at December 31, 2022, and $23.75 at March 31, 2022. This represents a 10% growth in book value per share at March 31, 2023, as compared to March 31, 2022, and includes accumulated other comprehensive income (loss) of $(2.47) per share as of March 31, 2023, and $(0.74) per share as of March 31, 2022, which, if excluded as of both dates, would represent 17% growth for the period. The change in accumulated other comprehensive income (loss) since March 31, 2022, is primarily from net unrealized losses on investments as a result of an increase in market interest rates.

"We kicked off the year with another solid quarter for Radian, increasing book value per share by 10% year-over-year to $26.23, generating net income of $158 million and delivering return on equity of 15.7%. Our primary mortgage insurance in force, which is the main driver of future earnings for our company, grew 5% year-over-year and our cure rate on defaulted loans reached the second highest level in 15 years during the first quarter of 2023," said Radian's Chief Executive Officer Rick Thornberry. "We continue to strategically manage capital by maintaining strong holding company liquidity and PMIERs cushion, repurchasing shares opportunistically and paying the highest yielding dividend in the industry."

FIRST QUARTER HIGHLIGHTS

NIW was $11.3 billion in the first quarter of 2023, compared to $12.9 billion in the fourth quarter of 2022, and $18.7 billion in the first quarter of 2022.
- Purchase NIW decreased 13% in the first quarter of 2023 compared to the fourth quarter of 2022 and decreased 36% compared to the first quarter of 2022.
- Refinances accounted for 2% of total NIW in the first quarter of 2023, compared to 2% in the fourth quarter of 2022, and 9% in the first quarter of 2022.
- Of the $11.3 billion in NIW in the first quarter of 2023, 95% was written with monthly and other recurring premiums, which was the same percentage as in the fourth quarter of 2022 and the first quarter of 2022.
Total primary mortgage insurance in force as of March 31, 2023, increased to $261.5 billion, relatively flat as compared to $261.0 billion as of December 31, 2022, and an increase of 5% compared to $249.0 billion as of March 31, 2022. The year-over-year change reflects an 8% increase in monthly premium policy insurance in force and a 12% decline in single premium policy insurance in force.
- Persistency, which is the percentage of mortgage insurance that remains in force after a twelve-month period, was 82% for the twelve months ended March 31, 2023, compared to 80% for the twelve months ended December 31, 2022, and 68% for the twelve months ended March 31, 2022.
- Annualized persistency for the three months ended March 31, 2023, was 84%, compared to 84% for the three months ended December 31, 2022, and 77% for the three months ended March 31, 2022.
Net mortgage insurance premiums earned were $231 million for the first quarter of 2023, compared to $230 million for the fourth quarter of 2022, and $245 million for the first quarter of 2022.
- Mortgage insurance in force portfolio premium yield was 38.5 basis points in the first quarter of 2023. This compares to 38.1 basis points in the fourth quarter of 2022, and 39.6 basis points in the first quarter of 2022.
- The impact of single premium policy cancellations before consideration of reinsurance represented 0.8 basis points of direct premium yield in the first quarter of 2023, 0.9 basis points in the fourth quarter of 2022, and 2.4 basis points in the first quarter of 2022.
- Total net mortgage insurance premium yield, which includes the impact of ceded premiums and accrued profit commission, was 35.4 basis points in the first quarter of 2023. This compares to 35.4 basis points in the fourth quarter of 2022, and 39.6 basis points in the first quarter of 2022.
- Details regarding premiums earned may be found in Exhibit D.
The mortgage insurance provision for losses was a benefit of $17 million in the first quarter of 2023, compared to benefits of $44 million and $84 million in the fourth quarter of 2022 and first quarter of 2022, respectively.
- All periods benefited from significant favorable reserve development on prior period defaults, particularly in 2022, due to more favorable trends in cures than originally estimated. The decreased benefit in the first quarter of 2023 compared to the fourth quarter of 2022 and the first quarter of 2022 was primarily related to less favorable development on prior period reserves, as the remaining number of defaults and loss reserve balance continues to decline.
- The number of primary delinquent loans was 20,748 as of March 31, 2023, compared to 21,913 as of December 31, 2022, and 25,510 as of March 31, 2022.
- The loss ratio in the first quarter of 2023 was (7.3)% compared to (18.9)% in the fourth quarter of 2022, and (34.3)% in the first quarter of 2022.
- Total mortgage insurance claims paid were $3 million in the first quarter of 2023, compared to $8 million in the fourth quarter of 2022, and $5 million in the first quarter of 2022.
Radian's homegenius segment offers an array of title, real estate and technology products and services to consumers, mortgage lenders, mortgage and real estate investors, GSEs, real estate brokers and agents.
- Total homegenius segment revenues for the first quarter of 2023 were $13 million, compared to $19 million for the fourth quarter of 2022, and $34 million for the first quarter of 2022.
- Adjusted pretax operating loss, our primary segment measure of profitability for the homegenius segment, was $23 million for the first quarter of 2023, compared to $31 million for the fourth quarter of 2022, and $14 million for the first quarter of 2022.
Other operating expenses were $83 million in the first quarter of 2023, compared to $110 million in the fourth quarter of 2022, and $90 million in the first quarter of 2022.
- Other operating expenses decreased in the first quarter of 2023 as compared to expenses in the fourth quarter of 2022, which were elevated primarily due to impairments to our lease-related assets and severance and related expenses previously reported and recognized in that quarter. Our expense reduction actions taken during 2022 helped to lower the level of our expenses in the first quarter of 2023. Additional details regarding other operating expenses by segment may be found in Exhibit E.

CAPITAL AND LIQUIDITY UPDATE

Radian Group

As of March 31, 2023, Radian Group maintained $956 million of available liquidity. Total holding company liquidity, which includes the company's $275 million unsecured revolving credit facility, was $1.2 billion as of March 31, 2023.
During the first quarter of 2023, the company repurchased 716 thousand shares of Radian Group common stock at a total cost of $15 million, including commissions.
In addition, in April 2023 the company purchased an additional 229 thousand shares of Radian Group common stock at a total cost of $5 million, including commissions. After the repurchases in April, purchase authority of up to $280 million remained available under this program.
As previously announced, on February 15, 2023, Radian Group's board of directors authorized a regular quarterly dividend on its common stock in the amount of $0.225 per share, an increase of 12.5% from the previous quarterly dividend. The dividend was paid on March 15, 2023.

Radian Guaranty

In March 2023, Radian Guaranty paid an ordinary dividend to Radian Group of $100 million. Radian Guaranty expects to pay between $200 million to $300 million of additional ordinary dividends to Radian Group during the remainder of 2023, based on current performance expectations.
At March 31, 2023, Radian Guaranty's Available Assets under PMIERs totaled approximately $5.7 billion, resulting in excess available resources or a "cushion" of $1.7 billion, or 44%, over its Minimum Required Assets under PMIERs.

CONFERENCE CALL

Radian will discuss first quarter 2023 financial results in a conference call tomorrow, Thursday, May 4, 2023, at 12:00 p.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 certain investments and other financial instruments attributable to our reportable segments and All Other activities; (ii) gains (losses) on extinguishment of debt; (iii) amortization and impairment of goodwill and other acquired intangible assets; and (iv) impairment of other long-lived assets and other non-operating items, such as impairment of internal-use software, gains (losses) from the sale of lines of business and acquisition-related income and expenses. Adjusted diluted net operating income (loss) per share is calculated by dividing (i) adjusted pretax operating income (loss) attributable to common stockholders, net of taxes computed using the company's statutory tax rate, by (ii) 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.

In addition to the above non-GAAP measures for the consolidated company, we also have presented as supplemental information non-GAAP measures for our homegenius segment of adjusted pretax operating income (loss) before allocated corporate operating expenses and adjusted gross profit. Adjusted pretax operating income (loss) before allocated corporate operating expenses is calculated as adjusted pretax operating income (loss) as described above (which is the segment's ASC 280 GAAP measure of operating performance), adjusted to remove the impact of corporate allocations of other operating expenses for the homegenius segment. Adjusted gross profit is further adjusted to remove other operating expenses. For the homegenius segment, adjusted pretax operating income (loss) before allocated corporate operating expenses and adjusted gross profit are used to facilitate comparisons with other services companies, since they are widely accepted measures of performance in the services industry and are used internally as supplemental measures to evaluate the performance of our homegenius segment.

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 ensuring the American dream of homeownership responsibly and sustainably through products and services that include industry-leading mortgage insurance and a comprehensive suite of mortgage, risk, title, valuation, asset management and other real estate services. We are powered by technology, informed by data and driven to deliver new and better ways to transact and manage risk. Visit www.radian.com and homegenius.com to learn more about how Radian and its pioneering homegenius platform are building a smarter future for mortgage and real estate services.

FINANCIAL RESULTS AND SUPPLEMENTAL INFORMATION CONTENTS (Unaudited)

Exhibit A:						Condensed Consolidated Statements of Operations Trend Schedule
Exhibit B:						Net Income Per Share Trend Schedule
Exhibit C:						Condensed Consolidated Balance Sheets
Exhibit D:						Net Premiums Earned
Exhibit E:						Segment Information
Exhibit F:						Definition of Consolidated Non-GAAP Financial Measures
Exhibit G:						Consolidated Non-GAAP Financial Measure Reconciliations
Exhibit H:						Mortgage Supplemental Information - New Insurance Written
Exhibit I:						Mortgage Supplemental Information - Primary Insurance in Force and Risk in Force
Exhibit J:						Mortgage Supplemental Information - Default, Reserves and Claim Statistics
Exhibit K:						Mortgage Supplemental Information - Reinsurance Programs

Radian Group Inc. and Subsidiaries Condensed Consolidated Statements of Operations Trend Schedule Exhibit A

	2023			2022
(In thousands, except per-share amounts)	Qtr 1			Qtr 4			Qtr 3			Qtr 2			Qtr 1
Revenues
Net premiums earned	$	233,238		$	232,827		$	240,222		$	253,892		$	254,190
Services revenue		10,984			15,441			20,146			27,281			29,348
Net investment income		59,221			59,091			51,414			46,957			38,196
Net gains (losses) on investments and other financial instruments		5,585			6,845			(16,252	)		(41,869	)		(29,457	)
Other income		1,592			520			659			572			703
Total revenues		310,620			314,724			296,189			286,833			292,980
Expenses
Provision for losses		(16,929	)		(43,599	)		(96,964	)		(113,922	)		(83,754	)
Policy acquisition costs		6,293			5,931			5,442			5,940			6,605
Cost of services		10,398			16,128			18,717			22,760			24,753
Other operating expenses		83,269			109,785			91,327			90,495			89,541
Interest expense		22,207			21,594			21,183			20,831			20,846
Amortization of other acquired intangible assets		1,371			1,587			1,023			849			849
Total expenses		106,609			111,426			40,728			26,953			58,840
Pretax income		204,011			203,298			255,461			259,880			234,140
Income tax provision		46,254			40,968			57,181			58,687			53,009
Net income	$	157,757		$	162,330		$	198,280		$	201,193		$	181,131
Diluted net income per share	$	0.98		$	1.01		$	1.20		$	1.15		$	1.01

Selected Mortgage Key Ratios

	2023		2022
	Qtr 1		Qtr 4		Qtr 3		Qtr 2		Qtr 1
Loss ratio ⁽¹⁾	(7.3	)%	(18.9	)%	(41.5	)%	(46.2	)%	(34.3	)%
Expense ratio⁽²⁾	25.9	%	27.3	%	26.1	%	26.2	%	27.2	%

(1)		For our Mortgage segment, calculated as provision for losses expressed as a percentage of net premiums earned. See Exhibit E for additional information.
(2)		For our Mortgage 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. See Exhibit E for additional information.

Radian Group Inc. and Subsidiaries Net Income Per Share Trend Schedule Exhibit B

The calculation of basic and diluted net income per share is as follows.

	2023		2022
(In thousands, except per-share amounts)	Qtr 1		Qtr 4		Qtr 3		Qtr 2		Qtr 1
Net income—basic and diluted	$	157,757	$	162,330	$	198,280	$	201,193	$	181,131
Average common shares outstanding—basic		158,304		158,357		162,506		173,705		176,816
Dilutive effect of stock-based compensation arrangements ⁽¹⁾		3,045		2,450		2,232		1,714		2,263
Adjusted average common shares outstanding—diluted		161,349		160,807		164,738		175,419		179,079
Basic net income per share	$	1.00	$	1.03	$	1.22	$	1.16	$	1.02
Diluted net income per share	$	0.98	$	1.01	$	1.20	$	1.15	$	1.01

(1)

The following number of shares of our common stock equivalents issued under our share-based compensation arrangements were not included in the calculation of diluted net income per share because they would be anti-dilutive.

	2023	2022
(In thousands)	Qtr 1	Qtr 4	Qtr 3	Qtr 2	Qtr 1
Shares of common stock equivalents	25	—	—	189	—

Radian Group Inc. and Subsidiaries Condensed Consolidated Balance Sheets Exhibit C

	March 31,			December 31,			September 30,			June 30			March 31,
(In thousands, except per-share amounts)	2023			2022			2022			2022			2022
Assets
Investments	$	5,837,892		$	5,693,491		$	5,591,881		$	5,906,147		$	6,334,950
Cash		50,167			56,183			54,701			135,262			131,853
Restricted cash		577			377			1,107			561			1,651
Accrued investment income		42,567			40,093			38,596			35,774			35,531
Accounts and notes receivable		129,565			119,834			174,041			166,380			142,579
Reinsurance recoverable		24,396			25,633			30,569			39,876			55,015
Deferred policy acquisition costs		18,236			18,460			17,920			16,983			16,383
Property and equipment, net		72,111			70,981			75,740			74,874			75,275
Goodwill and other acquired intangible assets, net		13,914			15,285			16,873			17,895			18,744
Prepaid federal income taxes		596,368			596,368			526,123			466,123			354,123
Other assets		418,609			427,024			458,292			414,412			449,642
Total assets	$	7,204,402		$	7,063,729		$	6,985,843		$	7,274,287		$	7,615,746
Liabilities and stockholders' equity
Unearned premiums	$	257,735		$	271,479		$	285,290		$	298,991		$	312,013
Reserve for losses and loss adjustment expense		405,651			426,843			483,664			594,808			727,247
Senior notes		1,414,549			1,413,504			1,412,473			1,411,458			1,410,458
Other borrowings		121,642			155,822			153,550			184,284			148,983
Reinsurance funds withheld		153,099			152,067			218,777			223,649			225,363
Net deferred tax liability		455,517			391,083			335,374			324,866			324,004
Other liabilities		289,731			333,604			358,665			305,269			320,114
Total liabilities		3,097,924			3,144,402			3,247,793			3,343,325			3,468,182
Common stock		176			176			176			186			193
Treasury stock		(931,313	)		(930,643	)		(930,396	)		(930,284	)		(920,958	)
Additional paid-in capital		1,515,852			1,519,641			1,513,615			1,698,490			1,871,763
Retained earnings		3,908,396			3,786,952			3,656,870			3,491,675			3,326,119
Accumulated other comprehensive income (loss)		(386,633	)		(456,799	)		(502,215	)		(329,105	)		(129,553	)
Total stockholders' equity		4,106,478			3,919,327			3,738,050			3,930,962			4,147,564
Total liabilities and stockholders' equity	$	7,204,402		$	7,063,729		$	6,985,843		$	7,274,287		$	7,615,746
Shares outstanding		156,547			157,056			157,058			166,388			174,648
Book value per share	$	26.23		$	24.95		$	23.80		$	23.63		$	23.75

Debt to capital ratio ⁽¹⁾		25.6 %		26.5 %		27.4 %		26.4 %		25.4 %
Risk to capital ratio-Radian Guaranty only		10.6:1		10.7:1		11.1:1		11.9:1		12.1:1

(1)

Calculated as senior notes divided by senior notes and stockholders' equity.

Radian Group Inc. and Subsidiaries Net Premiums Earned Exhibit D

	2023			2022
(In thousands)	Qtr 1			Qtr 4			Qtr 3			Qtr 2			Qtr 1
Premiums earned
Direct - Mortgage
Premiums earned, excluding revenue from cancellations	$	251,166		$	247,880		$	250,140		$	249,936		$	243,600
Single Premium Policy cancellations		5,361			5,756			6,705			6,894			14,696
Total direct - Mortgage		256,527			253,636			256,845			256,830			258,296
Assumed - Mortgage ⁽¹⁾		—			(56	)		1,211			1,539			1,331
Ceded - Mortgage
Premiums earned, excluding revenue from cancellations		(35,526	)		(35,773	)		(38,879	)		(28,565	)		(27,339	)
Single Premium Policy cancellations ⁽²⁾		(1,472	)		(1,676	)		(1,844	)		(1,965	)		(4,192	)
Profit commission - other ⁽³⁾		11,921			13,802			17,864			19,070			17,078
Total ceded premiums - Mortgage ⁽⁴⁾		(25,077	)		(23,647	)		(22,859	)		(11,460	)		(14,453	)
Net premiums earned - Mortgage		231,450			229,933			235,197			246,909			245,174
Net premiums earned - homegenius		1,788			2,894			5,025			6,983			9,016
Net premiums earned	$	233,238		$	232,827		$	240,222		$	253,892		$	254,190

(1)		Represents premiums from our participation in certain credit risk transfer programs. We discontinued our participation in these programs in December 2022 by novating these insurance policies to an unrelated third-party reinsurer.
(2)		Includes the impact of related profit commissions.
(3)		The amounts represent the profit commission on the Single Premium QSR Program and 2022 QSR Agreement, excluding the impact of Single Premium Policy cancellations.
(4)		See Exhibit K for additional information on ceded premiums for our various reinsurance programs.

Radian Group Inc. and Subsidiaries Segment Information Exhibit E (page 1 of 6)
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), homegenius adjusted pretax operating income (loss) before allocated corporate operating expenses and homegenius adjusted gross profit, along with reconciliations to consolidated GAAP measures, see Exhibits F and G.

	Three Months Ended March 31, 2023
(In thousands)	Mortgage			homegenius			All Other ⁽¹⁾			Inter-segment ⁽²⁾			Total
Net premiums written ⁽³⁾	$	229,419		$	1,788		$	—		$	—		$	231,207
(Increase) decrease in unearned premiums		2,031			—			—			—			2,031
Net premiums earned		231,450			1,788			—			—			233,238
Services revenue		336			10,743			—			(95	)		10,984
Net investment income		46,497			430			12,294			—			59,221
Net gains (losses) on investments and other financial instruments		—			—			80			—			80
Other income		1,587			—			5			—			1,592
Total		279,870			12,961			12,379			(95	)		305,115
Provision for losses		(16,864	)		(65	)		—			—			(16,929	)
Policy acquisition costs		6,293			—			—			—			6,293
Cost of services		241			10,157			—			—			10,398
Other operating expenses before allocated corporate operating expenses ⁽⁴⁾		18,806			21,252			518	⁽⁵⁾		(95	)		40,481
Interest expense		22,130			—			77			—			22,207
Total		30,606			31,344			595			(95	)		62,450
Adjusted pretax operating income (loss) before allocated corporate operating expenses		249,264			(18,383	)		11,784			—			242,665
Allocation of corporate operating expenses		34,829			4,658			3,315	⁽⁵⁾		—			42,802
Adjusted pretax operating income (loss)	$	214,435		$	(23,041	)	$	8,469		$	—		$	199,863

Radian Group Inc. and Subsidiaries Segment Information Exhibit E (page 2 of 6)

	Three Months Ended March 31, 2022
(In thousands)	Mortgage			homegenius			All Other ⁽¹⁾		Inter-segment ⁽²⁾			Total
Net premiums written ⁽³⁾	$	248,360		$	9,016		$	—	$	—		$	257,376
(Increase) decrease in unearned premiums		(3,186	)		—			—		—			(3,186	)
Net premiums earned		245,174			9,016			—		—			254,190
Services revenue		4,552			24,878			—		(82	)		29,348
Net investment income		34,017			18			4,161		—			38,196
Other income		703			—			—		—			703
Total		284,446			33,912			4,161		(82	)		322,437
Provision for losses		(84,193	)		481			—		(42	)		(83,754	)
Policy acquisition costs		6,605			—			—		—			6,605
Cost of services		3,383			21,370			—		—			24,753
Other operating expenses before allocated corporate operating expenses ⁽⁴⁾		23,755			20,287			3,142		(40	)		47,144
Interest expense		20,846			—			—		—			20,846
Total		(29,604	)		42,138			3,142		(82	)		15,594
Adjusted pretax operating income (loss) before allocated corporate operating expenses		314,050			(8,226	)		1,019		—			306,843
Allocation of corporate operating expenses		36,209			5,280			406		—			41,895
Adjusted pretax operating income (loss)	$	277,841		$	(13,506	)	$	613	$	—		$	264,948

(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) certain investments in new business opportunities, including activities and investments associated with Radian Mortgage Capital, and other immaterial activities.
(2)		Includes immaterial inter-segment revenue for our homegenius segment and immaterial inter-segment expenses for our Mortgage segment and All Other activities.
(3)		Net of ceded premiums written under our quota share and excess-of-loss reinsurance agreements. See Exhibit K for additional information.
(4)		Does not include impairment of long-lived assets and other non-operating items, which are not considered components of adjusted pretax operating income (loss).
(5)		In the first quarter of 2023, as a one-time adjustment, we reclassified $2.9 million in cumulative expenses previously reflected in the All Other results as direct other operating expenses to allocated corporate operating expenses.

Radian Group Inc. and Subsidiaries Segment Information Exhibit E (page 3 of 6)

	Mortgage
		2023		2022
(In thousands)	Qtr 1			Qtr 4			Qtr 3			Qtr 2			Qtr 1
Net premiums written⁽¹⁾	$	229,419		$	227,791		$	235,076		$	248,645		$	248,360
(Increase) decrease in unearned premiums		2,031			2,142			121			(1,736	)		(3,186	)
Net premiums earned		231,450			229,933			235,197			246,909			245,174
Services revenue		336			328			405			2,105			4,552
Net investment income		46,497			52,165			44,842			40,197			34,017
Other income		1,587			512			589			572			703
Total		279,870			282,938			281,033			289,783			284,446
Provision for losses⁽²⁾		(16,864	)		(43,509	)		(97,493	)		(114,179	)		(84,193	)
Policy acquisition costs		6,293			5,931			5,442			5,940			6,605
Cost of services		241			235			373			1,960			3,383
Other operating expenses before allocated corporate operating expenses^{(2) (3)}		18,806			20,131			23,396			25,474			23,755
Interest expense		22,130			21,580			21,183			20,831			20,846
Total ⁽²⁾		30,606			4,368			(47,099	)		(59,974	)		(29,604	)
Adjusted pretax operating income before allocated corporate operating expenses		249,264			278,570			328,132			349,757			314,050
Allocation of corporate operating expenses		34,829			36,663			32,457			33,237			36,209
Adjusted pretax operating income	$	214,435		$	241,907		$	295,675		$	316,520		$	277,841

	homegenius
		2023		2022
(In thousands)	Qtr 1			Qtr 4			Qtr 3		Qtr 2		Qtr 1
Net premiums earned	$	1,788		$	2,894		$	5,025	$	6,983	$	9,016
Services revenue ⁽²⁾		10,743			15,207			19,812		25,261		24,878
Net investment income		430			366			246		99		18
Other income ⁽²⁾		—			170			—		—		—
Total ⁽²⁾		12,961			18,637			25,083		32,343		33,912
Provision for losses		(65	)		(90	)		435		309		481
Cost of services		10,157			15,893			18,344		20,800		21,370
Other operating expenses before allocated corporate operating expenses ⁽³⁾		21,252			27,998			26,285		23,205		20,287
Total

Radian Announces First Quarter 2023 Financial Results