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**Strategic Transformation**: $1.7 billion acquisition of Inigo to expand into global multiline specialty insurance, increasing addressable market by 12x.
**Financial Strength**: Q3 2025 ROE of 13.4%, book value growth to $34.34 per share, and 15% YoY NIW growth in MI business.
**Capital Efficiency**: 200bps ROE accretion from Inigo, with no impact on MI operations and $995 million holding company liquidity.
**Divestiture Progress**: Active sale process for non-core businesses, targeting Q3 2026 completion.
**Credit Resilience**: 7.5% default-to-claim rate sustained by 90% cure rates within 12 months.

**【CEO Opening Remarks】**
- Highlighted strong performance in Mortgage Insurance (MI) business, driven by a high-quality in-force portfolio and disciplined underwriting.
- Announced strategic transformation: $1.7 billion acquisition of Inigo to expand into global multiline specialty insurance, complementing MI operations.
- Discussed divestiture plan for non-core businesses (mortgage conduit, title, real estate services), with expected completion by Q3 2026.
- Emphasized capital discipline, with $3 billion returned to shareholders since 2017 and no equity raised for Inigo transaction.

**【CFO Financial Commentary】**
- Q3 2025 net income from continuing operations: $153 million ($1.11 per share), ROE of 13.4%, and book value growth to $34.34 per share.
- MI portfolio metrics: $281 billion in-force, 15% YoY NIW growth, 84% persistency, and stable 38bps in-force yield.
- Credit performance: 7.5% default-to-claim rate,90% cure rates within 12 months,2.42% portfolio default rate.
- Capital position: $995 million holding company liquidity,2025 dividend guidance of $795 million.
- Inigo deal funding: $1.7 billion via intercompany note and existing liquidity, with no impact on MI operations.

**【Q&A Highlights】**
- **ROE Accretion**: 200bps from Inigo acquisition, targeting mid-teen ROE accretion starting Q1 2026.
- **Capital Synergies**: Potential reinsurance opportunities between MI and Inigo to enhance accretion beyond base case.
- **Divestiture Progress**: Active sale process for 3 businesses, with $170 million carrying value and $7 million expected sale expenses.
- **Share Repurchases**: Resumed once Inigo transaction closes and excess liquidity rebuilds (~Q1 2026).
- **Claim Rate Stability**: 7.5% default-to-claim rate maintained due to high home equity and servicer support, though normalization may occur over time.

Radian Group Inc. (RDN) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

RDN

RDN fundamentals

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