— Third quarter net income of $152 million, or $0.99 per diluted share —

— Return on equity of 13.2% —

— Book value per share growth of 18% year-over-year to $31.37 —

— Returned $86 million of capital to stockholders through dividends and share repurchases —

— Holding company debt-to-capital ratio reduced to 18.5% following retirement of $450 million senior notes —

— $185 million ordinary dividend paid from Radian Guaranty to holding company during the third quarter —

— Available holding company liquidity of $844 million and PMIERs excess Available Assets of $2.1 billion —

Radian Group Inc. (NYSE:RDN) today reported net income for the quarter ended September 30, 2024, of $152 million, or $0.99 per diluted share. This compares with net income for the quarter ended September 30, 2023, of $157 million, or $0.98 per diluted share.

Adjusted pretax operating income for the quarter ended September 30, 2024, was $199 million, or $1.03 per diluted share. This compares with adjusted pretax operating income for the quarter ended September 30, 2023, of $210 million, or $1.04 per diluted share.

Key Financial Highlights	Quarter ended
($ in millions, except per-share amounts)	September 30, 2024	June 30, 2024	September 30, 2023


Total revenues	$334	$321	$313
Net income	$152	$152	$157
Diluted net income per share	$0.99	$0.98	$0.98
Consolidated pretax income	$195	$188	$201
Adjusted pretax operating income ⁽¹⁾	$199	$193	$210
Adjusted diluted net operating income per share ^{(1) (2)}	$1.03	$0.99	$1.04
Return on equity⁽³⁾	13.2%	13.6%	15.0%
Adjusted net operating return on equity ^{(1) (2)}	13.7%	13.6%	16.0%
New Insurance Written (NIW) - mortgage insurance	$13,493	$13,902	$13,922
Net premiums earned - mortgage insurance	$235	$235	$237
New defaults	13,708	11,104	11,156
Provision for losses - mortgage insurance	$6	$(2)	$(8)

	As of
($ in millions, except per-share amounts)	September 30, 2024	June 30, 2024	September 30, 2023


Book value per share	$31.37	$29.66	$26.69
Accumulated other comprehensive income (loss) value per share ⁽⁴⁾	$(1.56)	$(2.50)	$(3.35)
PMIERs Available Assets ⁽⁵⁾	$5,984	$5,978	$5,758
PMIERs excess Available Assets ⁽⁶⁾	$2,122	$2,206	$1,670
Available holding company liquidity ⁽⁷⁾	$844	$1,190	$1,004
Total investments	$6,497	$6,588	$5,886
Residential mortgage loans held for sale, at fair value ⁽⁸⁾	$530	$458	$138
Primary mortgage insurance in force	$274,721	$272,827	$269,511
Percentage of primary loans in default ⁽⁹⁾	2.25%	2.04%	2.03%
Mortgage insurance loss reserves	$357	$351	$362

(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)		Calculated using the Company's federal statutory tax rate of 21%.
(3)		Calculated by dividing annualized net income by average stockholders' equity, based on the average of the beginning and ending balances for each period presented.
(4)		Included in book value per share for each period presented.
(5)		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.
(6)		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.
(7)		Represents Radian Group's available liquidity after the repayment of our $450 million senior notes without considering available capacity under its undrawn $275 million unsecured revolving credit facility.
(8)		Included in total investments on our condensed consolidated balance sheets.
(9)		Represents the number of primary loans in default as a percentage of the total number of insured primary loans.

Book value per share at September 30, 2024, was $31.37, compared to $29.66 at June 30, 2024, and $26.69 at September 30, 2023. This represents an 18% growth in book value per share at September 30, 2024, as compared to September 30, 2023, and includes accumulated other comprehensive income (loss) of $(1.56) per share as of September 30, 2024, and $(3.35) per share as of September 30, 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 were pleased to deliver another quarter of excellent financial results for Radian, increasing book value per share by 18% year-over-year, generating net income of $152 million, and growing our primary mortgage insurance in force, which is the main driver of future earnings for our company, to $275 billion," said Radian's Chief Executive Officer Rick Thornberry. "These results 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, the depth of our customer relationships and the dedication of our team."

THIRD QUARTER HIGHLIGHTS

NIW was $13.5 billion in the third quarter of 2024, compared to $13.9 billion in the second quarter of 2024, and $13.9 billion in the third quarter of 2023.

Purchase NIW decreased 3% in the third quarter of 2024 compared to the second quarter of 2024 and decreased 3% compared to the third quarter of 2023.
Refinances accounted for 4% of total NIW in the third quarter of 2024, compared to 2% in the second quarter of 2024, and 1% in the third quarter of 2023.

Total primary mortgage insurance in force of $274.7 billion as of September 30, 2024, compared to $272.8 billion as of June 30, 2024, and $269.5 billion as of September 30, 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 September 30, 2024, compared to 84% for the twelve months ended June 30, 2024, and 84% for the twelve months ended September 30, 2023.
Annualized persistency for the three months ended September 30, 2024, was 84%, compared to 84% for the three months ended June 30, 2024, and 84% for the three months ended September 30, 2023.

Net mortgage insurance premiums earned were $235 million for the third quarter of 2024, compared to $235 million for the second quarter of 2024, and $237 million for the third quarter of 2023.

Mortgage insurance in force portfolio premium yield was 38.2 basis points in the third quarter of 2024. This compares to 38.2 basis points in the second quarter of 2024 and 38.0 basis points in the third quarter of 2023.
Total net mortgage insurance premium yield, which includes the impact of ceded premiums earned and accrued profit commission, was 34.4 basis points in the third quarter of 2024. This compares to 34.5 basis points in the second quarter of 2024, and 35.3 basis points in the third quarter of 2023.
Details regarding premiums earned may be found in Exhibit D.

The mortgage insurance provision for losses was a provision of $6 million in the third quarter of 2024, compared to a benefit of $2 million in the second quarter of 2024 and a benefit of $8 million in the third quarter of 2023.

Favorable reserve development on prior period defaults was $51 million in the third quarter of 2024, compared to $50 million in the second quarter of 2024 and $55 million in the third quarter of 2023.
The number of primary delinquent loans was 22,350 as of September 30, 2024, compared to 20,276 as of June 30, 2024, and 20,406 as of September 30, 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 third quarter of 2024 was 3%, compared to (1)% in the second quarter of 2024, and (4)% in the third quarter of 2023.
Total mortgage insurance claims paid were $3 million in the third quarter of 2024, compared to $6 million in the second quarter of 2024 and $5 million in the third quarter of 2023.
Additional details regarding mortgage insurance provision for losses may be found in Exhibit D.

During the third quarter of 2024, Radian Mortgage Capital closed its inaugural private-label prime jumbo mortgage securitization transaction of $349 million.

Radian Group's wholly owned subsidiary, Radian Investment Group Inc., retained certificates from the securitization with an initial fair value of $6 million and is considered to be the primary beneficiary of the securitization trust. As a result, Radian Group is consolidating the trust, which is a variable interest entity ("VIE"), in its financial statements. The consolidation of the VIE did not have a material impact on Radian Group's results of operations in the third quarter of 2024.
Additional details regarding the income statement and balance sheet impacts of the VIE can be found in Exhibit A and Exhibit C, respectively.

Other operating expenses were $86 million in the third quarter of 2024, compared to $92 million in the second quarter of 2024, and $79 million in the third quarter of 2023.

Other operating expenses decreased in the third quarter of 2024 as compared to the second quarter of 2024. The decrease in other operating expenses was partially offset by a $10 million impairment on internal-use software recognized in the third quarter of 2024.
Additional details regarding other operating expenses may be found in Exhibit D.

CAPITAL AND LIQUIDITY UPDATE

Radian Group

As previously announced, Radian Group completed the redemption of its 2024 senior notes in the amount of $450 million in the third quarter of 2024. This redemption resulted in a corresponding $450 million reduction in holding company debt and reduced the holding company debt-to-capital ratio to 18.5% as of September 30, 2024.
As of September 30, 2024, Radian Group maintained $844 million of available liquidity. Total holding company liquidity, including the company's undrawn $275 million unsecured revolving credit facility, was $1.1 billion as of September 30, 2024.
During the third quarter of 2024, the company repurchased 1.5 million shares of Radian Group common stock at a total cost of $49 million. As of September 30, 2024, purchase authority of up to $618 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 $37 million, on September 11, 2024.

Radian Guaranty

Radian Guaranty paid an ordinary dividend to Radian Group of $185 million in the third quarter of 2024, bringing total year-to-date ordinary dividends paid to $485 million.
At September 30, 2024, Radian Guaranty's Available Assets under PMIERs totaled $6.0 billion, resulting in PMIERs excess Available Assets of $2.1 billion.

CONFERENCE CALL

Radian will discuss third quarter 2024 financial results in a conference call tomorrow, Thursday, November 7, 2024, at 10:00 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 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, real estate, securitization, and title services. Powered by technology, informed by data and driven to deliver new and better ways to transact and manage risk, Radian is shaping the future of mortgage and real estate services. Learn more at www.radian.com.

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

	2024								2023
(In thousands, except per-share amounts)	Qtr 3		Qtr 2			Qtr 1			Qtr 4		Qtr 3
Revenues
Net premiums earned	$	239,133	$	237,731		$	235,857		$	232,649	$	240,262
Services revenue		12,167		13,265			12,588			12,419		10,892
Net investment income		78,396		73,766			69,221			68,824		67,805
Net gains (losses) on investments and other financial instruments		2,174		(4,487	)		490			13,447		(8,555	)
Income (loss) on consolidated VIEs		465		—			—			—		—
Other income		1,522		872			1,262			1,305		2,109
Total revenues		333,857		321,147			319,418			328,644		312,513
Expenses
Provision for losses		6,889		(1,745	)		(7,034	)		4,170		(8,135	)
Policy acquisition costs		6,724		6,522			6,794			6,147		6,920
Cost of services		9,542		9,535			9,327			8,950		8,886
Other operating expenses		85,919		91,648			82,636			95,218		79,206
Interest expense		29,391		27,064			29,046			23,169		23,282
Impairment of goodwill		—		—			—			9,802		—
Amortization of other acquired intangible assets		—		—			—			1,371		1,371
Total expenses		138,465		133,024			120,769			148,827		111,530
Pretax income		195,392		188,123			198,649			179,817		200,983
Income tax provision		43,500		36,220			46,295			37,124		44,401
Net income	$	151,892	$	151,903		$	152,354		$	142,693	$	156,582
Diluted net income per share	$	0.99	$	0.98		$	0.98		$	0.91	$	0.98

(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 3		Qtr 2		Qtr 1		Qtr 4		Qtr 3
Net income—basic and diluted	$	151,892	$	151,903	$	152,354	$	142,693	$	156,582
Average common shares outstanding—basic		151,846		153,110		153,817		155,318		158,461
Dilutive effect of share-based compensation arrangements ⁽¹⁾		1,227		1,289		2,154		1,909		1,686
Adjusted average common shares outstanding—diluted		153,073		154,399		155,971		157,227		160,147
Basic net income per share	$	1.00	$	0.99	$	0.99	$	0.92	$	0.99
Diluted net income per share	$	0.99	$	0.98	$	0.98	$	0.91	$	0.98

(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 3

Qtr 2

Qtr 1

Qtr 4

Qtr 3

Shares of common stock equivalents

—


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

	Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,
(In thousands, except per-share amounts)	2024			2024			2024			2023			2023
Assets
Investments	$	6,497,180		$	6,588,149		$	6,327,114		$	6,085,654		$	5,885,652
Cash		28,061			13,791			26,993			18,999			55,489
Restricted cash		2,014			1,993			1,832			1,066			1,305
Accrued investment income		49,707			47,607			46,334			45,783			45,623
Accounts and notes receivable		138,439			137,777			130,095			123,857			144,614
Reinsurance recoverable		34,015			31,064			28,151			25,909			24,148
Deferred policy acquisition costs		18,430			18,566			18,561			18,718			18,817
Property and equipment, net		41,892			56,360			60,521			63,822			74,558
Goodwill and other acquired intangible assets, net		—		—			—			—				11,173
Prepaid federal income taxes		870,336			837,736			750,320			750,320			696,820
Other assets		384,666			396,600			369,944			459,805			420,483
Consolidated VIE assets ⁽¹⁾		355,031			—			—			—			—
Total assets	$	8,419,771		$	8,129,643		$	7,759,865		$	7,593,933		$	7,378,682
Liabilities and stockholders' equity
Unearned premiums	$	198,007		$	206,094		$	215,124		$	225,396		$	236,400
Reserve for losses and loss adjustment expense		363,225			357,470			361,833			370,148			367,568
Senior notes		1,064,718			1,513,782			1,512,860			1,417,781			1,416,687
Secured borrowings		551,916			484,665			207,601			119,476			241,753
Reinsurance funds withheld		138,810			135,849			133,460			130,564			156,114
Net deferred tax liability		737,605			656,113			626,353			589,564			497,560
Other liabilities		318,345			293,351			262,902			343,199			309,701
Consolidated VIE liabilities⁽¹⁾		348,292			—			—			—			—
Total liabilities		3,720,918			3,647,324			3,320,133			3,196,128			3,225,783
Common stock		171			172			171			173			175
Treasury stock		(967,717	)		(967,218	)		(946,202	)		(945,870	)		(945,504	)
Additional paid-in capital		1,315,046			1,356,341			1,390,436			1,430,594			1,482,712
Retained earnings		4,584,453			4,470,335			4,357,823			4,243,759			4,136,598
Accumulated other comprehensive income (loss)		(233,100	)		(377,311	)		(362,496	)		(330,851	)		(521,082	)
Total stockholders' equity		4,698,853			4,482,319			4,439,732			4,397,805			4,152,899
Total liabilities and stockholders' equity	$	8,419,771		$	8,129,643		$	7,759,865		$	7,593,933		$	7,378,682
Shares outstanding		149,776			151,148			151,509			153,179			155,582
Book value per share	$	31.37		$	29.66		$	29.30		$	28.71		$	26.69

Holding company debt-to-capital ratio ⁽²⁾		18.5	%		25.2	%		25.4	%		24.4	%		25.4	%

(1)		Reflects the consolidation of Radian Mortgage Capital's inaugural private label securitization, net of our retained interest in the transaction. We determined that we are the primary beneficiary of this securitization trust, which is 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 3)

Net Premiums Earned

	2024									2023
(In thousands)	Qtr 3			Qtr 2			Qtr 1			Qtr 4			Qtr 3
Direct - Mortgage insurance
Premiums earned, excluding revenue from cancellations	$	261,726		$	259,342		$	258,593		$	256,632		$	254,903
Single Premium Policy cancellations		1,783			2,076			2,114			2,058			3,304
Total direct - Mortgage insurance		263,509			261,418			260,707			258,690			258,207
Ceded - Mortgage insurance
Premiums earned, excluding revenue from cancellations		(41,894	)		(39,925	)		(38,997	)		(40,065	)		(32,363	)
Single Premium Policy cancellations ⁽¹⁾		818			732			(112	)		(444	)		(873	)
Profit commission - other ⁽²⁾		12,711			12,593			12,401			12,199			11,830
Total ceded premiums - Mortgage insurance		(28,365	)		(26,600	)		(26,708	)		(28,310	)		(21,406	)
Net premiums earned - Mortgage insurance		235,144			234,818			233,999			230,380			236,801
Net premiums earned - Title insurance		3,989			2,913			1,858			2,269			3,461
Net premiums earned	$	239,133		$	237,731		$	235,857		$	232,649		$	240,262

(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 3		Qtr 2		Qtr 1		Qtr 4		Qtr 3
Mortgage Insurance
Contract underwriting services	$	244	$	309	$	210	$	202	$	266
All Other
Real estate services		7,876		8,777		9,193		8,888		7,046
Title		3,427		3,540		2,573		2,713		2,964
Real estate technology		620		639		612		616		616
Total services revenue	$	12,167	$	13,265	$	12,588	$	12,419	$	10,892


Radian Group Inc. and Subsidiaries
Condensed Consolidated Statements of Operations Detail
Exhibit D (page 2 of 3)

Net Investment Income

	2024									2023
(In thousands)	Qtr 3			Qtr 2			Qtr 1			Qtr 4			Qtr 3
Fixed-maturities	$	59,348		$	57,924		$	57,259		$	58,669		$	58,599
Equity securities		3,047			3,067			2,539			3,753			3,222
Mortgage loans held for sale		7,828			5,411			1,793			1,725			1,719
Short-term investments		9,686			8,614			8,958			5,871			5,405
Other ⁽¹⁾		(1,513	)		(1,250	)		(1,328	)		(1,194	)		(1,140	)
Net investment income	$	78,396		$	73,766		$	69,221		$	68,824		$	67,805

(1)

Includes investment management expenses, as well as the net impact from our securities lending activities.

Provision for Losses

	2024									2023
(In thousands)	Qtr 3			Qtr 2			Qtr 1			Qtr 4			Qtr 3
Mortgage insurance
Current period defaults⁽¹⁾	$	57,032		$	47,918		$	53,688		$	53,981		$	46,630
Prior period defaults ⁽²⁾		(50,686	)		(49,687	)		(60,574	)		(49,373	)		(54,887	)
Total Mortgage insurance		6,346			(1,769	)		(6,886	)		4,608			(8,257	)
Title insurance		543			24			(148	)		(438	)		122
Total provision for losses	$	6,889		$	(1,745	)	$	(7,034	)	$	4,170		$	(8,135	)

(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 3			Qtr 2			Qtr 1			Qtr 4			Qtr 3
Salaries and other base employee expenses	$	32,851		$	41,431		$	39,723		$	34,182		$	33,272
Variable and share-based incentive compensation		17,581			23,223			17,515			20,262			19,546
Other general operating expenses⁽¹⁾		39,984			31,623			30,262			45,186			29,812
Ceding commissions		(6,276	)		(5,957	)		(5,644	)		(5,327	)		(5,153	)
Title agent commissions		1,779			1,328			780			915			1,729
Total	$	85,919		$	91,648		$	82,636		$	95,218		$	79,206

(1)

Includes $10 million and $14 million in the third quarter of 2024 and the fourth quarter of 2023, respectively, of impairment of long-lived assets, consisting of impairments to our lease-related assets and internal-use software.


Radian Group Inc. and Subsidiaries
Condensed Consolidated Statements of Operations Detail
Exhibit D (page 3 of 3)

Interest Expense

	2024						2023
(In thousands)	Qtr 3		Qtr 2		Qtr 1		Qtr 4		Qtr 3
Senior notes	$	20,945	$	21,156	$	22,128	$	20,335	$	20,320
Mortgage loan financing facilities		7,500		5,107		1,438		1,421		1,609
Loss on extinguishment of debt		—		—		4,275		—		—
FHLB advances		538		544		945		1,059		1,039
Revolving credit facility		408		257		260		354		310
Other		—		—		—		—		4
Total interest expense	$	29,391	$	27,064	$	29,046	$	23,169	$	23,282


Radian Group Inc. and Subsidiaries
Segment Information
Exhibit E (page 1 of 4)

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 September 30, 2024
(In thousands)	Mortgage Insurance		All Other ⁽¹⁾			Inter- segment			Total
Net premiums written	$	233,648	$	3,989		$	—		$	237,637
(Increase) decrease in unearned premiums		1,496		—			—			1,496
Net premiums earned		235,144		3,989			—			239,133
Services revenue		244		12,001			(78	)		12,167
Net investment income		50,236		28,160			—			78,396
Net gains (losses) on investments and other financial instruments		—		(4,611	)		—			(4,611	)
Income (loss) on consolidated VIEs		—		465			—			465
Other income		1,948		(399	)		(27	)		1,522
Total		287,572		39,605			(105	)		327,072
Provision for losses		6,346		543			—			6,889
Policy acquisition costs		6,724		—			—			6,724
Cost of services		126		9,416			—			9,542
Other operating expenses before allocated corporate operating expenses		16,408		23,583			(105	)		39,886
Interest expense		21,891		7,500			—			29,391
Total		51,495		41,042			(105	)		92,432
Adjusted pretax operating income (loss) before allocated corporate operating expenses		236,077		(1,437	)		—			234,640
Allocation of corporate operating expenses		32,534		3,438			—			35,972
Adjusted pretax operating income (loss) ⁽²⁾	$	203,543	$	(4,875	)	$	—		$	198,668


Radian Group Inc. and Subsidiaries
Segment Information
Exhibit E (page 2 of 4)

	Three Months Ended September 30, 2023
(In thousands)	Mortgage Insurance			All Other ⁽¹⁾			Inter- segment			Total
Net premiums written	$	235,169		$	3,461		$	—		$	238,630
(Increase) decrease in unearned premiums		1,632			—			—			1,632
Net premiums earned		236,801			3,461			—			240,262
Services revenue		266			10,723			(97	)		10,892
Net investment income		49,953			17,852			—			67,805
Net gains (losses) on investments and other financial instruments		—			283			—			283
Other income		1,237			9			(5	)		1,241
Total		288,257			32,328			(102	)		320,483
Provision for losses		(8,257	)		122			—			(8,135	)
Policy acquisition costs		6,920			—			—			6,920
Cost of services		172			8,714			—			8,886
Other operating expenses before allocated corporate operating expenses		16,776			26,062			(102	)		42,736
Interest expense		21,673			1,609			—			23,282
Total		37,284			36,507			(102	)		73,689
Adjusted pretax operating income (loss) before allocated corporate operating expenses		250,973			(4,179	)		—			246,794
Allocation of corporate operating expenses		31,744			4,595			—			36,339
Adjusted pretax operating income (loss) ⁽²⁾	$	219,229		$	(8,774	)	$	—		$	210,455

(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.


Radian Group Inc. and Subsidiaries
Segment Information
Exhibit E (page 3 of 4)

Mortgage Insurance
	2024								2023
(In thousands)	Qtr 3		Qtr 2			Qtr 1			Qtr 4		Qtr 3
Net premiums written	$	233,648	$	232,645		$	231,877		$	225,112	$	235,169
(Increase) decrease in unearned premiums		1,496		2,173			2,122			5,268		1,632
Net premiums earned		235,144		234,818			233,999			230,380		236,801
Services revenue		244		309			210			202		266
Net investment income		50,236		50,102			49,574			51,061		49,953
Other income		1,948		754			1,240			1,302		1,237
Total		287,572		285,983			285,023			282,945		288,257
Provision for losses		6,346		(1,769	)		(6,886	)		4,608		(8,257	)
Policy acquisition costs		6,724		6,522			6,794			6,147		6,920
Cost of services		126		156			153			157		172
Other operating expenses before allocated corporate operating expenses		16,408		17,157			17,270			15,559		16,776
Interest expense		21,891		21,957			23,333			21,748		21,673
Total		51,495		44,023			40,664			48,219		37,284
Adjusted pretax operating income before allocated corporate operating expenses		236,077		241,960			244,359			234,726		250,973
Allocation of corporate operating expenses		32,534		43,197			34,509			36,929		31,744
Adjusted pretax operating income ⁽¹⁾	$	203,543	$	198,763		$	209,850		$	197,797	$	219,229


Radian Group Inc. and Subsidiaries
Segment Information
Exhibit E (page 4 of 4)

All Other ⁽²⁾
	2024									2023
(In thousands)	Qtr 3			Qtr 2			Qtr 1			Qtr 4			Qtr 3
Net premiums earned	$	3,989		$	2,913		$	1,858		$	2,269		$	3,461
Services revenue		12,001			13,064			12,493			12,311			10,723
Net investment income		28,160			23,664			19,647			17,763			17,852
Net gains (losses) on investments and other financial instruments		(4,611	)		(49	)		383			356			283
Income (loss) on consolidated VIEs		465			—			—			—			—
Other income		(399	)		130			25			14			9
Total⁽³⁾		39,605			39,722			34,406			32,713			32,328
Provision for losses		543			24			(148	)		(438	)		122
Cost of services		9,416			9,379			9,174			8,793			8,714
Other operating expenses before allocated corporate operating expenses		23,583			26,615			27,264			23,660			26,062
Interest expense		7,500			5,107			1,438			1,421			1,609
Total		41,042			41,125			37,728			33,436			36,507
Adjusted pretax operating income (loss) before allocated corporate operating expenses		(1,437	)		(1,403	)		(3,322	)		(723	)		(4,179	)
Allocation of corporate operating expenses		3,438			4,677			3,711			5,340			4,595
Adjusted pretax operating income (loss) ⁽¹⁾	$	(4,875	)	$	(6,080	)	$	(7,033	)	$	(6,063	)	$	(8,774	)

(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)	Qtr 3		Qtr 2		Qtr 1		Qtr 4		Qtr 3
Holding company (a)	$	19,113	$	17,042	$	16,536	$	15,374	$	15,601
Real estate services		8,185		9,110		9,517		9,014		7,126
Title		7,973		7,047		4,997		5,516		6,948
Mortgage conduit		3,658		5,815		2,690		2,171		2,020
Real estate technology		676		708		666		638		633
Total	$	39,605	$	39,722	$	34,406	$	32,713	$	32,328

(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 3			Qtr 2			Qtr 1			Qtr 4			Qtr 3
Loss ratio ⁽¹⁾		2.7	%		(0.8	)%		(2.9	)%		2.0	%		(3.5	)%
Expense ratio ⁽²⁾		23.7	%		28.5	%		25.0	%		25.5	%		23.4	%

(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.

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 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) and adjusted diluted net operating income (loss) per share 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 2)

Reconciliation of Consolidated Pretax Income to Adjusted Pretax Operating Income

2024

2023

Radian Announces Third Quarter 2024 Financial Results