Radian Group (RAG) Q3 2026 Earnings Report
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DE:RAG Q3 2026 EPS Results
- Actual EPS
- EUR 1.28
- Consensus EPS
- EUR 1.08
- Beat/Miss
- Beat by +EUR 0.20
- One Year Ago EPS
- EUR 1.03
DE:RAG Q3 2026 Revenue Results
- Actual Revenue
- EUR 556.74M
- Expected Revenue
- EUR 531.65M
- Beat/Miss
- Beat by +EUR 25.09M
- YoY Revenue Growth
- +105.85%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 11/04/2026
- Time
- After Close
- Conference Call
- Wednesday, November 4, 2026
DE:RAG Upcoming Earnings
Radian Group's next earnings date is estimated for February 24, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
DE:RAG Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive, supported by substantial revenue and earnings growth, improved returns, record Mortgage Insurance in-force volume, strong Specialty underwriting results, significant share repurchases, debt reduction, and emerging benefits from the Inigo acquisition. The main challenges were a 3% decline in Specialty net premiums earned, a seasonally higher 2.68% mortgage default rate, pressure on reported book value from higher interest rates, and increasing competition in Specialty markets. Management characterized the mortgage credit trends as expected and the overall portfolio fundamentals as strong.
Company Guidance
Management said Specialty’s third-quarter combined ratio, excluding the benefit of lower cat losses, would have been “in line with our prior guidance in the low 90s”; MI’s default rate, 2.68% this quarter, is expected to increase in the fourth quarter, while cumulative cures have been “trending towards 96% or 97%” versus a 92.5% cumulative cure assumption. Holding-company liquidity is expected to remain in the “$300 million to $400 million range,” with the $500 million revolving credit facility undrawn and a senior debt maturity in the first quarter of next year expected to be refinanced. Radian Guaranty expects a fourth-quarter dividend of $145 million, taking total 2026 dividends to $660 million versus initial guidance of $600 million; there is “no guidance at this point” for next year’s dividends. Share repurchases totaled $379 million, or 8% of beginning shares outstanding, exceeding the previously guided range of $200 million to $250 million.
- Strong Consolidated Quarterly ResultsRadian reported an excellent third quarter, with total revenue more than doubling year-over-year to $624 million following the addition of Inigo. Adjusted pretax operating income grew to $254 million, with solid contributions from both the Mortgage and Specialty businesses.
- Higher Earnings and Return on EquityGAAP net income from continuing operations was $1.28 per diluted share with a 15% return on equity. Adjusted net operating income was $1.44 per diluted share, up 25% from the third quarter of 2025, while adjusted net operating return on equity was 16%, approximately 250 basis points higher year-over-year.
- Year-to-Date Earnings Accretion from InigoYear-to-date operating earnings per share were $3.84, an increase of 17% compared with the prior year. Year-to-date operating return on equity increased to approximately 15%, compared with the 13% range before the Inigo transaction and divestiture process.
- Balanced Contribution from Specialty InsuranceSpecialty accounted for 57% of third-quarter net premiums earned and 34% of adjusted pretax operating income, demonstrating the contribution of the combined company and the more diversified earnings profile following the Inigo acquisition.
- Record Mortgage Insurance PortfolioPrimary mortgage insurance in force reached a record $286 billion. Radian wrote $15 billion of new insurance during the quarter, while quarterly persistency remained favorable at 83%, supported by limited refinancing activity.
- Strong Mortgage Segment EarningsThe Mortgage segment generated $206 million of adjusted pretax operating income with a 37% combined ratio. Management said earnings were supported by healthy portfolio fundamentals and that credit performance across all vintages remained in line with or favorable to initial expectations.
- High Mortgage Insurance Cure RatesMortgage defaults continued to cure at very high levels, with cumulative cures typically trending toward 96% or 97% of defaults that have emerged. Radian's reserving assumption embeds a 92.5% cumulative cure assumption, and actual performance continues to outperform that assumption.
- Excellent Specialty Underwriting ResultsThe Specialty segment generated $86 million of adjusted pretax operating income, up significantly from the prior quarter. Its net combined ratio was 80%, reflecting a benign natural catastrophe quarter, and total loss provision included $43 million of favorable net development for prior-period reserves.
- Disciplined Specialty UnderwritingManagement said Specialty continues to prioritize profitable underwriting over top-line growth in an increasingly competitive market, particularly in property insurance and reinsurance. The company remains focused on maintaining sound margins and targets an underwriting profit in each class rather than relying only on portfolio-level profitability.
- Favorable Specialty Reserve DevelopmentFavorable prior-period reserve development came from a broad variety of classes, including both short-tail and long-tail business. Catastrophe prior-period development represented a little less than half of the total, while several specific reserves in the $2 million to $4 million range developed favorably and incurred claims had been trending favorably for a couple of quarters.
- Growing Investment IncomeNet investment income was $77 million, up 22% year-over-year due to a growing portfolio, including the impact of the Inigo acquisition, as well as higher yields. The $7.1 billion investment portfolio remains well diversified across highly rated securities.
- Book Value Growth and Long-Term Capital Track RecordBook value per share grew year-over-year to $35.78. Excluding accumulated other comprehensive income, book value per share grew 9% year-over-year, or 12% when including dividends paid. Adjusted book value per share has more than tripled since 2017, representing approximately 15% compound annual growth.
- Significant Share RepurchasesRadian repurchased $135 million of shares during the quarter and an additional $117 million in October. Total 2026 repurchase activity reached $379 million, or 8% of beginning shares outstanding, significantly exceeding the previously guided range of $200 million to $250 million. More than $200 million was purchased over the last three months at an average price below current book value.
- Debt Reduction and LiquidityRadian fully repaid the remaining balance on its revolving credit facility, reducing holding company leverage below 19%. Available liquidity at Radian Group was $376 million at quarter end, and the $500 million revolving credit facility is now undrawn.
- Higher Mortgage Insurance Dividend CapacityRadian Guaranty is expected to pay a $145 million dividend in the fourth quarter, bringing total 2026 dividends to $660 million, approximately 10% above the initial $600 million guidance. The increase was driven by favorable earnings in the Mortgage Insurance business.
- Successful Divestiture ProcessThe announced sale of the real estate services and title businesses is expected to complete within the company's expected timeline and has returned significant liquidity to the holding company. Management described Radian as a simpler company with a more balanced earnings profile and broader access to insurance markets.
- Emerging Inigo Capital SynergiesRadian has begun to realize capital benefits from the Inigo transaction, including an expanded letter of credit facility secured at favorable pricing for the 2027 underwriting year. Management said these benefits are developing before the full potential capital synergies have taken effect.
- Inigo's Differentiated Underwriting ModelInigo focuses narrowly and deeply on selected lines of business, combining underwriting expertise, capacity, market-leading data recording and analysis, customer connectivity, and growing use of AI to analyze risk. Management said this strategy remains a sustainable and competitive advantage.
- Leadership and Strategic ExecutionDan Kobell was appointed Chief Financial Officer, while Russell Merrett will lead group P&C strategy, Craig Knightley will become Inigo's Chief Underwriting Officer, and Stuart Bridges will take on a broader Radian Group Advisor role. Management said the leadership changes better align responsibilities with strategic priorities.
- Support for Housing AffordabilityManagement said private mortgage insurance helps homebuyers save nearly $50,000 on average in down payments, more than 60% of buyers with PMI are first-time homebuyers, and private mortgage insurance rates have declined by more than 25% over the last 10 years. Radian said it supports efforts to simplify mortgage insurance cancellation where home price appreciation reasonably supports it.
- Capital Flexibility and Cash GenerationManagement described both businesses as profitable and cash-generative, generating mid-teen returns through the cycle. Radian intends to invest in its businesses where it sees adequate returns and will also consider buybacks, dividends, leverage levels, or retaining capital for future opportunities.
- No Significant Expected Housing Policy ImpactRadian said it remains committed to responsibly supporting housing affordability, which it views as a bipartisan concern, and is not anticipating any significant impacts from potential housing policy changes over the next two years.
DE:RAG Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 24, 2027 | 2026 (Q4) | 1.10- | 1.03 | ― | ― |
| Nov 04, 2026 | 2026 (Q3) | 1.081.28 | 1.03 | 25.22% (+0.26) | |
| Aug 05, 2026 | 2026 (Q2) | 1.191.02 | 0.9 | 12.87% (+0.12) | |
| May 06, 2026 | 2026 (Q1) | 1.071.13 | 0.88 | 28.28% (+0.25) | |
| Feb 18, 2026 | 2025 (Q4) | 0.961.03 | 0.97 | 6.42% (+0.06) | |
| Nov 04, 2025 | 2025 (Q3) | 0.901.03 | 0.92 | 11.65% (+0.11) | |
| Jul 30, 2025 | 2025 (Q2) | 0.870.90 | 0.88 | 2.02% (+0.02) | |
| Apr 30, 2025 | 2025 (Q1) | 0.860.88 | 0.92 | -3.88% (-0.04) | |
| Feb 05, 2025 | 2024 (Q4) | 0.820.97 | 0.86 | 13.54% (+0.12) | |
| Nov 06, 2024 | 2024 (Q3) | 0.810.92 | 0.93 | -0.96% (-0.01) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed
