RDN 10-K & 10-Q changes, risk factors and insider trading

The PMIERs include financial requirements incorporating a risk-based framework that requires a mortgage insurer’s Available Assets to meet or exceed its Minimum Required Assets. Although not required under the PMIERs, to ensure ongoing compliance, mortgage insurers typically have maintained an amount of Available Assets significantly in excess of their Minimum Required Assets, and we refer to such excess as a PMIERs “cushion.” The PMIERs financial requirements include increased financial requirements for defaulted loans, with increasing Minimum Required Assets as defaults age, as well as for performing loans that present a higher likelihood of default and/or certain credit characteristics, such as higher LTVs and lower FICO credit scores. In addition, while the PMIERs do not prohibit a mortgage insurer from holding any type of assets, the PMIERs financial requirements impose limitations on the credit that is granted for certain Available Assets based on several factors, including, among others, asset class and credit rating.

Radian Guaranty’s PMIERs Cushion, and ultimately, its ability to continue to comply with the PMIERs financial requirements could be impacted by, among other factors: (i) the volume and product mix of our NIW; (ii) factors affecting the performance of our mortgage insurance portfolio, including the level of new defaults and prepayments; (iii) for existing defaults, the aging of these existing defaults and whether they are subject to, and remain in, mortgage forbearance programs, and the ultimate losses we incur on new or existing defaults; (iv) the amount of credit that we receive for investments in Radian Guaranty’s investment portfolio based on, among other things, asset class and credit rating; (v) the amount of credit that we receive for our third-party reinsurance transactions; and (vi) potential amendments or updates to the PMIERs.

The GSEs frequently evaluate the PMIERs for interim changes to address various specific matters. The GSEs may amend the PMIERs at any time and also have broad discretion to interpret the PMIERs, which could impact the calculation of Radian Guaranty’s Available Assets and/or Minimum Required Assets. The most recent large-scale revisions to PMIERs became effective in 2019, and the PMIERs have been further updated since then to address specific matters, including the COVID-19 pandemic and, mostmore recently, for the credit that is granted for certain Available Assets. We expect the GSEs to continue to update the PMIERs in the future as they may deem necessary. For further information, see “Item 1. Business—Regulation—Federal Regulation—GSE Requirements for Mortgage Insurance Eligibility.”

If Radian Guaranty’s PMIERs Cushion is materially decreased, we may be required or otherwise choose to: (i) retain capital in Radian Guaranty and/or contribute additional capital to Radian Guaranty; (ii) alter our strategy with respect to our NIW by limiting the type and volume of business we are willing to write for certain products; (iii) alter our investment policies or strategies; or (iv) seek additional capital relief through reinsurance or otherwise, which may not be available on acceptable terms.terms or at all.

The PMIERs prohibit Radian Guaranty from engaging in certain activities such as insuring loans originated or serviced by an affiliate (except under certain circumstances) and require Radian Guaranty to obtain the prior consent of the GSEs before taking many actions, which may include, among other things, approval for certain transactions such as a change in control/beneficial ownership, changes to corporate or legal structure, transferring assets to any affiliate or subsidiary, providing capital or capital support to any affiliate or subsidiary that is either an approved insurer or an exclusive affiliated reinsurer, entering into certain intercompany agreements, settling loss mitigation disputes with customers and commuting risk. These restrictions could prohibit or delay Radian Guaranty from taking certain actions that would be advantageous to it or to Radian Group.

Our insurance subsidiaries are subject to comprehensive state insurance regulations and other requirements, which we may fail to satisfy. Changes to existing regulation and supervisory standards, or failure to comply with them, could have a material adverse effect on our business, results of operations and financial condition.

With respect to our U.S. mortgage insurance subsidiaries specifically, such subsidiaries are subject to comprehensive, detailed regulation by the insurance regulators in the states where they are domiciled or licensed to transact business. Among other matters, the state insurance regulators impose various financial requirements on our insurance subsidiaries. State insurance capital requirements for our mortgage insurance subsidiariessubsidiaries, includeincluding Risk-to-capital ratios, other risk-based capital measures and surplus requirements that may limit the amount of insurance that our mortgage insurance subsidiaries write or the ability of our mortgage insurance subsidiaries to distribute capital to Radian Group. State insurance financial requirements also limit the credit that our mortgage insurance subsidiaries may receive for holding various assets, which could restrict Radian Guaranty’s ability to pursue various strategic opportunities or to generate greater returns to avoid the risk of jeopardizing Radian Guaranty’s ability to continue to pay dividends to our holding company. Similarly, our title insurance subsidiary is required to maintain statutory premium reserves that vary by state and are subject to periodic reviews of certain financial performance ratios, the results of which could result in additional capital requirements in states where it is licensed.returns.

Among other things, our failure to maintain adequate levels of capital in our mortgage insurance or title insurance subsidiaries could lead to intervention by the various insurance regulatory authorities, which could materially and adversely affect our business, business prospects and financial condition. In addition, the GSEs and our mortgage insurance customers may decide not to conduct new business with Radian Guaranty (or may reduce current business levels) or impose restrictions on Radian Guaranty if it is not in compliance with applicable state insurance requirements. The franchise value of our Mortgage Insurance business likely would be significantly diminished if we were prohibited from writing new business or restricted in the amount of new business we could write in one or more states. For additional information about statutory surplus and other state insurance requirements, see “Item 1. Business—Regulation—State Regulation” and Note 16 of Notes to Consolidated Financial Statements.

The mortgage insurance industry has always been highly competitive with respect to pricing. Our mortgage insurance subsidiaries’ premium rates and policy forms are generally subject to regulation in every state in which they are licensed to transact business. These regulations are intended to protect policyholders against the adverse effects of excessive, inadequate or unfairly discriminatory rates and to encourage fair competition in the insurance marketplace. For example, state regulators assess rates to ensure that “similarly situated” customers are receiving similar rates without unjustifiable differentiation, and state regulators also may evaluate general default experience in the mortgage insurance industry in assessing the premium rates charged by mortgage insurers. In addition, the increased use by the insurance industry generally of risk-based pricing systems that establish premium rates based on more attributes than previously considered, and of algorithms, artificial intelligence and data and analytics, has led to additional regulatory scrutiny of premium rates and of other matters such as discrimination in pricing and underwriting, data privacy and access to insurance. We may be subject to regulatory inquiries or examinations with respect to our mortgage insurance premium rates and policy forms.

See “Item 1. Business—Regulation—State Regulation” for more information on existing regulatory requirements applicable to our mortgage insurance subsidiaries and potential further changes to existing requirements.

Changes in the charters, business practices or role of the GSEs in the U.S. housing finance market generally, could significantly impact our businesses.Mortgage Insurance business.

Changes in the GSEs’ business practices and other actions of the FHFA and GSEs can significantly impact the functioning of the housing finance system. Because traditional mortgage insurance is an important component of this system and because our businessesMortgage dependInsurance business depends on the health of the housing finance system and housing markets in particular, these actions have impacted, and future actions could further impact, our business operations and performance. The FHFA has been the conservator of the GSEs since 2008 and has the authority to control and direct their operations. Given that the Director of the FHFA is removable by the President at will, the agency’s agenda and its policies and actions are influenced by the Administration in office at any given time. The increased role that the federal government has assumed in the residential housing finance system through the GSE conservatorships may increase the likelihood that the business practices of the GSEs change, including through Administration changes and actions. With the resignation of the current Director of the FHFA in January 2025, and President Trump’s recent nomination of a new FHFA director, subject to Congressional review and approval, there is an increased risk that the FHFA and GSEs could pursue changes to the GSEs’ business practices.

Our current Mortgage Insurance business structure is highly dependent on the GSEs, which are the primary beneficiaries of most of our mortgage insurance policies. Changes in the business practices of the GSEs, which can be implemented by the GSEs acting independently or through the FHFA, could negatively impact our business and financial performance. Examples of potential changes that could impact our business may include, without limitation:

Under the firstboth Trump Administration,Administrations, the FHFA has explored, and tooktaken certain actions directed towards, the potential future release of the GSEs from conservatorship. AmongDuring others,the first Trump Administration, these actions includedincluded, among others, adopting the ERCF,Enterprise Regulatory Capital Framework (“ERCF”), allowing the GSEs to retain capital up to the ERCF capital requirements and limiting the credit risk that the GSEs could acquire. TheDuring secondthe current Trump AdministrationAdministration, maythere seekhave been further efforts to advanceexplore recapitalizing the GSEsGSEs, towardsincluding exploring a releasepotential fromlimited conservatorship.public Numerous and complex financial, political and operational hurdles would need to be addressed to achieve this, including notably, the significant amounts owed by the GSEs to the U.S. Treasury as a resultoffering of theequity U.S. Treasury’s preferred stock ownership rightsinterests in the GSEs. While it remains uncertain if, when and how the GSEs might be released from conservatorship, actions taken in pursuit of this objectiveobjective, including a potential public offering of GSE stock, could impact the business and operations of the GSEs, and as a result, could impact our Mortgage Insurance business.

The GSEs may pursue new products and activities, or alter existing policies and practices, including in ways that could negatively impact Radian Guaranty’s IIF, results of operations or financial condition. The GSEs have in the past and may in the future offer new products and activities in pursuit of their business strategies, including credit risk transfer transactions and structures that compete with traditional private mortgage insurance and title insurance. It is difficult to predict what types of new products and activities may be proposed by the GSEs in the future and, if applicable, whether they may be approved by the FHFA, including programs that may provide an alternative to traditional private mortgage insurance or title insurance. If any existing or future credit risk transfer transactions and structures were to displace primary loan level or standard levels of mortgage insurance, the amount of mortgage insurance we write may be reduced, which could negatively impact our franchise value, results of operations and financial condition. See “Item 1. Business—Regulation—Federal Regulation—Housing Finance Reform and the GSEs’ Business Practices—Administrative Reform—Access and Affordability” for further discussion regarding these and other changes to the GSEs’ business practices.

The structure of the residential housing finance system could be altered in the future, including as a result of comprehensive housing reform legislation.legislation or action by the current or future Administrations. Since the FHFA was appointed as conservator of the GSEs, there has been a wide range of legislative proposals to reform the U.S. housing finance market. In conjunction with these proposals, there has been ongoing debate about the roles that the federal government and private capital should play in the housing finance system. To the extent new legislative action alters the existing GSE charters without explicit preservation of the role of private mortgage insurance for high-LTV loans, our business could be adversely affected. See “Item 1. Business—Regulation—Federal Regulation—Housing Finance Reform and the GSEs’ Business Practices” for a discussion of the future of housing finance in the U.S., including potential objectives for future reform.

Although we believe that traditional private mortgage insurance will continue to play an important role in any future housing finance structure, developmentsDevelopments in the practices of the GSEs, including potentially new federal legislation, changes to existing statutes, rules or regulations, or changes in the GSEs’ business practices that reduce the level of private mortgage insurance coverage used by the GSEs as credit enhancement, or even eliminate the requirement, may diminish the franchise value of our Mortgage Insurance business and materially and adversely affect our business prospects, results of operations and financial condition.

OurThe success of our Mortgage Insurance business depends on our ability to assess and manage our mortgage insurance underwriting risks; and the mortgage insurance premiums we charge may not be adequate to compensate us for our liability for losses and the amount of capital we are required to hold against our insured mortgage risks. We expect to incur losses for future mortgage defaults beyond what we have reserved for in our financial statements.

From time to time, we change the processes we use to underwrite loans, including by automating certain underwriting processes and relying on information and processes of the GSEs. For example: we rely on information provided to us by lenders that was obtained from automated income verification tools in lieu of requiring traditional income documentation; we also accept GSE appraisal waivers for certain home purchase and refinance loans that may or may not require an onsite inspection of the property; and, when permitted by the GSEs, for certain purchase transactions we accept desktop appraisals for which the appraiser relies on data obtained from alternative methods or sources to identify property characteristics and condition and does not complete a current inspection of the subject property. Our acceptance of automated processes, valuation alternatives, and verification tools, could affect our pricing and risk assessment. We also continue to further automate our underwriting processes to incorporate risk-informed decision making, and it is possible that our use of automated processes resultcould inlead ourus insuringto insure loans that we would not otherwise have insured under our prior processes or would have insured at a different premium rate.

Additionally, in accordance with industry practice, we generally do not establish reserves in our Mortgage Insurance business until we are notified that a borrower has failed to make at least two monthly payments when due. Because our mortgage insurance reserving does not account for the impact of future losses that we expect to incur with respect to performing (non-defaulted) loans, our obligation for ultimate losses that we expect to incur at any period end is not reflected in our financial statements, except if a premium deficiency exists. A premium deficiency reserve would be recorded if the present value of expected future losses and expenses exceeds the present value of expected future premiums and already established loss reserves on the applicable loans. As future defaults are not reflected in our Mortgage Insurance loss reserves, our loss reserves can be volatile and could increase significantly in future periods if we experience a high volume of new defaults in future periods, which would negatively impact our results of operations and financial condition.

IfWe theestablish estimatesour wereserves usefor losses in establishing mortgageour insurance lossbusinesses reservesbased on models, assumptions and estimates, which are subject to inherent uncertainties, and if incorrect, we may beresult in us being required to take unexpected charges to income, which could adversely affect our results of operations.

We establish loss reserves in our Mortgage Insurance business to provide for the estimated cost of future claims on defaulted loans. High levels of defaults and delays in foreclosures could delay our receipt of claims, resulting in an increase in the period of time that a loan remains in our inventory of defaulted mortgage loans, and as a result, the Claim Severity. Generally, foreclosure delays do not stop the accrual of interest or affect other expenses on a loan, and unless a loan is cured during such delay, once title to the property ultimately is obtained and a claim is filed, our paid claim amount may include additional interest and expenses, increasing the Claim Severity. In addition, the heightened scrutiny over foreclosure proceedings and the increased focus on preserving homeownership for struggling borrowers that was initiated during the COVID-19 pandemic may have fundamentally altered how mortgage relief and foreclosure procedures are handled going forward, including by preventing or extending the procedural steps necessary for a claim under our insurance policies to be filed.

Because claims paid may be substantially different than our loss reserves, our loss reserves may be insufficient to satisfy the full amount of claims that we ultimately have to pay. In the past, changes to our loss reserve estimates have impacted our businesses and could in the future impact our results of operations and financial condition. If our loss reserve estimates are inadequate, we may be required to increase our reserves, which could have a material adverse effect on our results of operations and financial condition.

OurRadian Guaranty’s Loss Mitigation Activities and claims paying practices have in the past resulted in disputes with certain of our customers and in some cases, damaged our relationships with customers, resulting in a loss of business. WhileRadian these past disputes have been resolved, a risk remains that ourGuaranty’s Loss Mitigation Activities or claims paying practices could in the future have a negative impact on our relationships with our mortgage insurance customers or potential customers.customers Further,and disputesthe GSEs which are the primary beneficiaries of our insurance. In response to the potential for negative impact on customer relationships or the GSEs, Radian Guaranty may consider adjustments to its processes and Loss Mitigation Activities, which may reduce the benefit of its Loss Mitigation Activities. Disputes with our customers that are not resolved could result in arbitration or judicial proceedings, requiring significant legal expenses. To the extent that Radian Guaranty’s past or future Loss Mitigation Activities or our claims paying practices impact our customer relationships, it could result in reduced use of Loss Mitigation Activities, changes in business processes, the potential loss of business and adverse effects on our competitive position could be adversely affected,position, which could negatively impact our results of operations.

TheWe availabilityuse reinsurance as a capital and costrisk ofmanagement reinsurance are subject to market conditions beyond our control, including reinsurer and investor demand for mortgage credit.tool. No assurance can be given that reinsurance will remain available to us in amounts that we consider sufficient and at rates and upon terms that we consider acceptable. Accordingly, we may be forced to incur additional expenses for reinsurance or may not be able to obtain sufficient reinsurance on acceptable terms, which could cause us to increase the amount of risk we retain, and could negatively affect our ability to mitigate losses in our portfolio, the returns we are able to achieve on the business we write and our ability to write future business. Further, reinsurance does not relieve us of our direct liability to policyholders; therefore, if the reinsurer is unable or unwilling to meet its obligations to us, we remain liable to make claims payments to our policyholders. As a result, our reinsurance arrangements do not fully eliminate our obligation to pay claims, and we have assumed counterparty credit risk with respect to our inability to recover amounts due from reinsurers.reinsurers due to their inability or unwillingness to pay the associated insurance recoveries, including due to dispute risk.

WeIn our Mortgage Insurance business, we use reinsurance to manage Radian Guaranty’s capital position under the PMIERs financial requirements.requirements, including to maintain an appropriate PMIERs Cushion. Among other benefits, our risk distribution transactions have collectively reduced our required capital, including by significantly reducing our Required Minimum Assets under the PMIERs. The initial and ongoing credit that we receive under the PMIERs financial requirements for these risk distribution transactions is subject to the periodic review of the GSEs and could be influenced by the ERCF, which, in its current form, significantly increases the capital requirements for the GSEs and provides the GSEs with a reduced amount of credit for their own credit risk transfer activities.GSEs. See “Changes in the charters, business practices or role of the GSEs in the U.S. housing finance market generally, could significantly impact our businesses.Mortgage Insurance business.” If the GSEs revise the PMIERs in the future to align with the final form of the ERCF, such alignment could reduce the credit that Radian Guaranty receives for reinsurance under the PMIERs, which could negatively impact our strategic approach to risk management and risk distribution.

If we are unable to obtain sufficient reinsurance on acceptable terms or to collect amounts due from our reinsurers, oror, in the case of Radian Guaranty, if we receive less PMIERs capital relief for our reinsurance transactions, it could have a material adverse effect on our business, financial condition and results of operations.

If the length of time that our mortgage insurance policies remain in force declines,declines it could result in a decrease in our future revenues.

Most of our primary IIF consists of policies for which we expect to receive premiums in the future, typically through Monthly Premium Policies, and as a result, a significant portion of our earned premiums are derived from insurance that was written in prior years. The percentage of our insurance certificates that remain in force for a specified period of time, which we refer to as the Persistency Rate, is a significant driver of future revenues from our futureMortgage revenues,Insurance business, with a lower overall Persistency Rate generally reducing our future revenues. As a result, the ultimate profitability of our Mortgage Insurance business is affected by mortgage prepayment speeds for the loans that we insure.

the HPA requires servicers to cancel mortgage insurance when a borrower’s LTV ratio meets or is scheduled to meet certain levels, generally based on the original value of the home and subject to various conditions; and the GSEs’ mortgage insurance cancellation guidelines, which apply more broadly than the HPA, allow for cancellation of mortgage insurance, at the borrowers’ request, based on the home’s current value if certain LTV and seasoning requirements are met and the borrowers have an acceptable payment history. Higher home price appreciation increases the likelihood of borrowers reaching the cancellation thresholds, which could negatively impact persistency.Persistency. For more information about the GSEs’ guidelines and business practices and how they may change, see “Changes in the charters, business practices or role of the GSEs in the U.S. housing finance market generally, could significantly impact our businesses.Mortgage Insurance business.”

Our delegatedDelegated underwriting program may subject our Mortgage Insurance businessus to unanticipated claims.

Our Mortgage Insurance business faces intensecompetition competition.and changes in the competitive environment that could negatively impact our franchise value.

WeOur currentlyMortgage competeInsurance business competes with other private mortgage insurers that are eligible to insure loans that are purchased by the GSEs primarily on the basis of price, underwriting guidelines, overall service, customer relationships, perceived financial strength (including comparative credit ratings) and reputation. For more information about our competitive environment, including pricing competition, see “Item 1. Business—Mortgage Insurance—Competition.”

Our Mortgage Insurance segment aggregates, manages and distributes U.S. mortgage credit risk for the benefit of mortgage lending institutions and mortgage credit investors, principally through private mortgage insurance on residential first-lien mortgage loans, and also offers other credit risk management solutions, including contract underwriting, to our customers.loans.

Although it is difficult to project future volumes, recent industry projections forindicate 2025 estimatethat total mortgage originations ofare expected to reach approximately $2.0$2.3 trillion,trillion whichin would2026, representrepresenting an increase in the total annual mortgage origination market of approximately 14% as15% compared to 2024.2025.

FactoringBased inon our projectionsestimates of private mortgage insurance penetration in the overall insurable mortgage market, we estimate thatpenetration, the private mortgage insurance market willis projected to be slightlymoderately larger in 20252026 as comparedrelative to athe reported market of approximatelyestimated $300 billion inmarket 2024. There is an industry-wide consensus that we should expect a healthy purchase marketsize in 20252025. driven by ongoing homebuyerHomebuyer demand and a potential modest decline in interest rates thatwould wesupport expecta growing purchase market in 2026, which is expected to benefit affordability for potential homebuyers. A healthy purchase market is a positive for mortgage insurers givendue to the higher likelihoodpropensity thatfor purchasepurchased loans willto utilizerequire private mortgage insurance as compared to refinancerefinanced loans. ThisAdditionally, outlookan also anticipates that aanticipated decrease in interest rates would be expected to result in an increase inincreased refinance originations in 2025.2026.

See Note 45 of Notes to Consolidated Financial Statements for additional information about our businesses.business. See “Key Factors Affecting Our Results” and “Mortgage Insurance Portfolio Metrics” below for additional discussion on specific key drivers that affect our performance.

Our current business strategy for our Mortgage Insurance business is to write NIW that we believe will generate future earnings and economic value while effectively maintaining the portfolio’s health, balance and profitability. NIW increases our IIF and our premiums written and earned. NIW is affected by the overall size of the mortgage origination market, the penetration percentage of private mortgage insurance into the overall mortgage origination market and our market share of the private mortgage insurance market. SeePrivate “Overviewmortgage insurance penetration has generally been higher on new mortgages for purchased homes than on the refinance of Businessexisting Operatingmortgages Environment”because aboveaverage LTVs are typically higher on home purchases, and therefore, these lower down payment loans are more likely to require mortgage insurance. The penetration percentage of private mortgage insurance is mainly influenced by: (i) the competitiveness of private mortgage insurance for additionalGSE information.conforming loans compared to FHA and VA insured loans and (ii) the relative percentage of mortgage originations that are for purchased homes versus refinancings.

Incurred losses reduce our pretax income from continuing operations and represent the estimated future claim payments on newly defaulted insured loans as well as any change in our claim estimates for existing defaults, including changes in our estimates with respect to the frequency, magnitude and timing of anticipated losses on defaulted loans. Factors influencing incurred losses include:

Investment income is determined primarily by the investment balances held and the average yield on our overall investment portfolio. Increases in our investment balances and average yields result in higher pretax income from continuing operations and operating cash flows, while declining balances and yields can negatively affect our financial results.

Net gains (losses) on investments and other financial instruments also may impact our consolidated results in the ordinary course. 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. Realized gains or losses can also be driven by the timing of residential mortgage loan securitizations and other transactions executed by Radian Mortgage Capital.

Unrealized gains and losses arise primarily from changes in the market value of our investments that are classified as trading or equity securities, as well as changes from residential mortgage loans and hedging activities related to our Mortgage Conduit business.securities. These valuation adjustments may not necessarily result in realized economic gains or losses.

LTV atAt origination.

Historically, there is a close correlation between interest rates and Persistency Rates. Higher interest rate environments generally decrease refinancings, which decrease the cancellation rate of our insurance and positively affect our Persistency Rates. As shown in the table below,below: (i) our 12-month Persistency Rate at December 31, 2024,2025, decreasedwas slightlyflat as compared to the same period in 2023,2024 whichand we(ii) our quarterly, annualized Persistency Rate decreased at December 31, 2025, as compared to the same period in 2024. We believe the decrease in the quarterly, annualized Persistency Rate is primarily attributable to a slightan increase in refinance activity in 2024the comparedfourth toquarter 2023.of 2025, a result of the decline in interest rates in that quarter, as further described below.

Following athree three-yearconsecutive periodyears of benchmark interest rate increases, the U.S. Federal Reserve reducedinitiated its first benchmark interest rate reductions in late 2024, followed by additional reductions occurring between September 2025 and December 2025. Typically, lower benchmark interest rates forlead theto firsta timereduction in September 2024 and then again in both November and December 2024. While decreases in benchmark interest rates generally reduce longer-term U.S. treasury rates and result in lower mortgage interest rates and a corresponding increase in mortgage refinance transactions,transactions. However, we do not expect these recent interest rate changes towill have a significant impact on our Persistency Rate in the near term. As of December 31, 2024,2025, 68%approximately half of our IIF had a mortgage note interest rate of 6.0%5.5% or less, which remains below the current prevailing mortgage interest rates based on reported industry averages. If mortgage rates were to decrease further, however, refinance volumes could increase, similar to the effect observed in the fourth quarter of 2025, which could have a negative impact on our Persistency Rate and the size of our IIF portfolio. See “If the length of time that our mortgage insurance policies remain in force declines,declines it could result in a decrease in our future revenues” under “Item 1A. Risk Factors” for more information.

LTV atAt origination.

At December 31, 2024,2025, 90%91% of our total Primary Mortgage RIF are Monthly and Other Recurring Premium Policies. Based on the current composition of our mortgage insurance portfolio, with Monthly Premium Policies comprising a much larger proportion of our total portfolio than Single Premium Policies, an increase in IIF generally has a corresponding positive impact on premiums earned, while a decrease in IIF generally has a corresponding negative impact on premiums earned. Reductions in IIF through cancellations of our insurance policies as a result of prepayments, as well as other insurance policy terminations such as Rescissions of coverage and claims paid, generally have a negative effect on premiums earned over time.

The following table showsprovides our direct Primary Mortgage Insurance RIF by year of origination and selected information related to that risk as of the dates indicated.

The following table shows,provides, as of the dates indicated, the percentage of our direct Primary Mortgage Insurance RIF and the associated percentage of our mortgage insurance reserve for losses (by location of property) for the top 10 states in the U.S. (as measured by our direct Primary Mortgage Insurance RIF as of December 31, 20242025).

The following table shows,provides, as of the dates indicated, the percentage of our direct Primary Mortgage Insurance RIF and the associated percentage of our mortgage insurance reserve for losses (by location of property) for the top 10 Core Based Statistical Areas, referred to as “CBSAs,” in the U.S. (as measured by our direct Primary Mortgage Insurance RIF as of December 31, 20242025).

The following table below provides information about the amounts by which Radian Guaranty’s reinsurance programs reduced its Minimum Required Assets as of the dates indicated.

See “Results of Operations—Mortgage InsuranceConsolidated—Revenues—Net Premiums Earned” for information about the impact on premiums earned from each of Radian Guaranty’s reinsurance programs.

Radian Group serves as the holding company for our operating subsidiaries and does not have any operations of its own. Our consolidated operating results for 2025, 2024 and 2023 primarily reflect the financial results and performance of our one reportable segment—Mortgage Insurance. See “Results of Operations—Mortgage Insurance” for the operating results of this business segment.business.

In addition to the results of our operatingMortgage segments,Insurance reportable segment, pretax income (loss) from continuing operations is also affected by other factors. See “Use of Non-GAAP Financial Measures” below and “Key Factors Affecting Our Results” for more information regarding items that are not included in the operating results of our operating segments.information.

The following analysis of our financial condition and results of operations for the three and six months ended MarchJune 31,30, 2026, provides information that evaluates our financial condition as of MarchJune 31,30, 2026, compared with December 31, 2025, and our results of operations for the three and six months ended MarchJune 31,30, 2026, compared to the same periodperiods in 2025.

For nearly 50 years, we have served asbeen a leading private mortgage insurer, expanding access to affordable, responsible and sustainable homeownership. WeOn believeFebruary 2, 2026, we areacquired differentiatedInigo, froma Lloyd’s specialty insurer. The acquisition of Inigo expanded our peersbusiness by our proprietary risk analysisprofile and riskestablished managementRadian capabilities,as informeda byglobal decadesmulti-line ofspecialty mortgageinsurer, datacombining the embedded value and intelligence.capital Ingeneration recentcapabilities years,of our mortgage insurance business haswith generatedthe positivegrowth results,potential includingof stronga earningsdisciplined specialty insurance and cashreinsurance flow.business.

Looking ahead to the remainder of 2026, our priorities include continuing to deliver strong, consistent performance in our Mortgage segment, executing on the strategic development and selective growth of our Specialty segment and maintaining a disciplined approach to capital management. We believe our ability to consistently generate excess capital through cycles and redeploy it with discipline is a core competitive advantage. Our capital management philosophy prioritizes maintaining financial strength, investing in growth and responsibly returning excess capital to stockholders. Despite risks and uncertainties related to the current economic and market conditions, including premium rate softening in our Specialty segment, we continue to have a favorable outlook for our businesses based on the fundamentals in both our Mortgage and Specialty segments.

Basel III. Over the past several decades, the Basel Committee on Banking Supervision has established international benchmarks for assessing banks’ capital adequacy requirements (“Basel III”). IncludedWhile Basel III does not directly impact our mortgage insurance capital requirements, included within those benchmarks are capital standards related to residential lending and securitization activity and, importantly for private mortgage insurers, the capital treatment ofthat banks will receive for mortgage insurance on those loans. In July 2023, the U.S. federal banking agencies published a notice of proposed rulemaking to implement the final components of Basel III that was heavily criticized and debated. In March 2026, the U.S. federal bank regulators released new proposals to update the regulatory capital framework for banks that include more granular risk weights for the capital treatment of residential real estate and maintain the existing treatment of mortgage insurance as a prudent underwriting standard. The proposals also include several questions on the treatment of mortgage insurance as part of the proposed risk weight calculations. The Company will continue to monitor developments with respect to this rulemaking and its potential impact on our mortgage insurance business.

Our condensed consolidated financial results for the firstsix quartermonths ofended 2026June 30, 2026, reflect the continued performance of our Mortgage segment and, beginning February 2, 2026,and the inclusioncontribution of Inigo’sour Specialty segment, which includes the specialty insurance and reinsurance operations withinof ourInigo, Specialtyacquired segment.on February 2, 2026. Except as set forth below, there have been no material changes to the key factors affecting our results discussed in our 2025 Form 10-K. In addition to those key factors, the following key factors have affectedaffected, and are expected to affect, our financial results:results.

Acquisition of Inigo and Specialty Insurance Operations. On February 2, 2026, we completed the acquisition of Inigo, a Lloyd’s specialty insurer, and its results are included in our condensed consolidated financial statements from the acquisition date forward. The acquisition of Inigo has expanded our business mix andthrough futureparticipation growth opportunities while also increasing our exposure toin global specialty insurance and reinsurance markets.markets and provides diversification. Our financial results may continue to be affected by the execution of integration activities, the alignment of systems and controls and our ability to effectively manage underwriting, operationaloperational, regulatory and financial risks associated with these operations.

Specialty Insurance and Reinsurance Market Conditions. Our Specialty segment operating results are influenced by market conditions across the specialty insurance and reinsurance classes and geographies in which we participate. These conditions include pricing levels, underwriting terms, available capacity among insurers within the specialty market and competitive dynamics, all of which are subject to cyclical trends and may vary by line of business. Changes in market conditions can affect premium volumes, expected loss ratios and underwriting profitability.

Premium Volume and Business Mix. Our Specialty segment results are affected by the volume, timing and mix of gross and net premiums written. Premium volumes may vary by period based on renewal activity, new business opportunities, pricing conditions, underwriting appetite, exposure levels and the availability and cost of reinsurance.reinsurance generally. Changes in business mix across insurance and reinsurance, or across lines of business with different risk, acquisition cost and earning patterns, may affect earned premiums, underwriting margins and comparability between periods.

Reinsurance and Risk Distribution. We purchase reinsurance inIn our Specialty segmentsegment, we cede risk by purchasing reinsurance as a core risk management tool to limit our exposure to large individual losses, catastrophe events and aggregation risk, and to support capital efficiency. Our ceded reinsurance programs include excess of loss, quota share and catastrophe bond arrangements. The availability, cost and terms of ceded reinsurance are influenced by market conditions and loss experience, and changes to ceded reinsurance structures, retentions or counterparty performance may affect net results and earnings volatility.

We wrote $13.5$16.3 billion and $29.8 billion of primary NIW in the three and six months ended MarchJune 31,30, 2026, respectively, compared to $9.5$14.3 billion and $23.8 billion of NIW in the three and six months ended MarchJune 31,30, 2025, respectively, representing an increase of 42%14% for the three months ended MarchJune 31,30, 2026, and an increase of 25% for the six months ended June 30, 2026, each as compared to the same period in 2025.

According to industry estimates, mortgage origination volume for home purchases increased moderately infor the firstthree quartermonths ofended June 30, 2026, whiledriven a decrease in interest rates led toby an increase in refinance volume fordue theto threedecreased monthsinterest endedrates Marchand 31,a 2026,slight increase in home purchase volume, as compared to the same period in 2025,2025. contributingIncreased origination volume as well as higher estimated penetration rates contributed to the increase in our NIW in the firstthree quartermonths ofended June 30, 2026.

Historically, there is a close correlation between interest rates and Persistency Rates. Higher interest rate environments generally decrease refinancings, which in turn decrease the cancellation rate of our insurance and positively affect our Persistency Rates.Rates; the opposite effects occur in lower interest rate environments. As shown in the table below: (i) our 12-month Persistency Rate at MarchJune 31,30, 2026, decreased as compared to the same period in 2025 and (ii) our quarterly, annualized Persistency Rate decreased at MarchJune 31,30, 2026, as compared to the same period in 2025. We believe thethese decreasedecreases in both the 12-month Persistency Rate and the quarterly, annualized Persistency Rate waswere primarily attributable to an increase in refinance activity in 2026, particularly in the first quarterquarter, ofwhich 2026, as further described below, resultingresulted from the decline in mortgage interest rates inthat recentoccurred periods.entering 2026 and generated increased refinance transactions and related policy cancellations.

As of MarchJune 31,30, 2026, approximately half of our IIF had a mortgage note interest rate of 5.5% or less, which remains below the current prevailing mortgage interest rates based on reported industry averages. If mortgage rates were to decrease further, however, refinance volumes could increase, similar to the effect observed inthis the first quarter of 2026,year, which could negatively impact our Persistency Rate and the size of our IIF portfolio. See “If the length of time that our mortgage insurance policies remain in force declines, it could result in a decrease in our future revenues” under “Item 1A. Risk Factors” in our 2025 Form 10-K for more information.

The following table provides information about netgross premiums earned by linegeographic of business.area.

Partnerships – Includes insurance business written with selected counterpartiespartners within Inigo’s insurance platform.

Property – Includes assumed catastrophe-oriented reinsurance, primarily excess of loss (including per risk, catastrophe,catastrophe and aggregate), pro rata and retrocession arrangements,arrangements. The catastrophe excess of loss portfolio, which represents the largest component of the property reinsurance account, is global, with exposuresa primarilyparticular inemphasis catastrophe-exposedon regions.North America, Japan, Europe, Australia and New Zealand.

The following table provides information about grossnet premiums earned by geographicline area.of business.

Radian Group serves as the holding company for our operating subsidiaries and does not have any operations of its own. Our consolidated operating results for the three and six months ended MarchJune 31,30, 2026, primarily reflect the financial results and performance of our Mortgage and Specialty segments, while our consolidated operating results for the three and six months ended MarchJune 31,30, 2025, primarily reflect the financial results and performance of our Mortgage segment.

Net Premiums Earned. The increase in net premiums earned for the three and six months ended MarchJune 31,30, 2026, as compared to the same periodperiods in 2025, is primarily due to the acquisition of Inigo. See “Results of Operations—Mortgage Segment—Revenues—Net Premiums Earned” and “Results of Operations—Specialty Segment—Revenues—Net Premiums Earned” for more information.

Net Investment Income. The increase in net investment income for the three and six months ended MarchJune 31,30, 2026, as compared to the same periodperiods in 2025, is primarily due to the acquisition of Inigo. See Note 7 of Notes to Unaudited Condensed Consolidated Financial Statements for comparative detail about net investment income. See “Results of Operations—Mortgage Segment—Revenues—Net Investment Income” and “Results of Operations—Specialty Segment—Revenues—Net Investment Income” for more information.

Provision for Losses. The increase in the provision for losses for the three and six months ended MarchJune 31,30, 2026, as compared to the same periodperiods in 2025, is primarily due to the acquisition of Inigo. See “Results of Operations—Mortgage Segment—Expenses—Provision for Losses” and “Results of Operations—Specialty Segment—Expenses—Provision for Losses” for more information.

Amortization of Deferred Policy Acquisition Costs and VOBA. The increase in the amortization of deferred policy acquisition costs and VOBA for the three and six months ended MarchJune 31,30, 2026, as compared to the same periodperiods in 2025, is primarily related to amortization of the VOBA intangible asset recognized in connection with the acquisition of Inigo. See Note 3 of Notes to Unaudited Condensed Consolidated Financial Statements for additional detail on the impact of other acquired intangible assets from the Inigo acquisition and see “Results of Operations—Specialty Segment—Expenses—Amortization of Deferred Policy Acquisition Costs” for more information on Specialty segment results, which exclude the impact of purchase accounting adjustments.

Other Operating Expenses. Other operating expenses increased for the three and six months ended MarchJune 31,30, 2026, as compared to the same periodperiods in 2025, primarily due to the acquisition of Inigo. For additional information, see “Results of Operations—Mortgage Segment—Expenses—Other Operating Expenses” and “Results of Operations—Specialty Segment—Expenses—Other Operating Expenses.”

Interest Expense. The increase in interest expense for the three and six months ended MarchJune 31,30, 2026, as compared to the same periodperiods in 2025, is primarily due to interest expense on credit facilities for Inigo and Radian Group. See Note 12 of Notes to Unaudited Condensed Consolidated Financial Statements for additional detail about our interest expense.

Our effective tax rate for continuing operations for the three and six months ended MarchJune 31,30, 2026, was 25.4%,21.6% and 23.6%, respectively, as compared to 23.5%19.9% and 21.7% for the three and six months ended MarchJune 31,30, 2025.2025, respectively. In addition to the effects of non‑deductible executive compensation expense, the increase in the effective tax rate was primarily attributable to a higher statutory tax rate on foreign earnings from Inigo and higher state income taxes associated with a temporary period of elevated investment income generated from increased investments held at Radian Group in anticipation of funding the Inigo acquisition.

Income (loss) from discontinued operations, net of tax, includes the results of our Mortgage Conduit, Title and Real Estate Services businesses, which have been reclassified to discontinued operations for all periods presented. See Note 18 of Notes to Unaudited Condensed Consolidated Financial Statements for additional details.

PrimarilyFor the three and six months ended June 30, 2026, primarily includes $53 million of net VOBA asset and liability amortization,amortization of $64 million and $118 million, respectively, partially offset by a $30 million reversalreversals of policy acquisition costs thatof is$37 million and $68 million, respectively. The policy acquisition costs are reflected in the Specialty segment results but eliminated under purchase accounting on a consolidated basis.

For the three and six months ended MarchJune 31,30, 2026, primarily relates to acquisition-related expenses forassociated with the Inigo acquisition, including employee retention bonus expense, investment banking fees, transfer taxes, legal costs, audit costs and other transaction expenses.

Calculated by dividing annualized direct premiums earned, excluding revenue from cancellations, by average primary IIF. Revenue from cancellations was $1.5$1.9 million and $1.2$3.4 million for the three and six months ended MarchJune 31,30, 20262026, respectively, and $1.7 million and $2.9 million for the three and six months ended June 30, 2025, respectively.

For each period presented, reflects the average of the beginning and ending amortized cost of our total investments for each month of the quarter. EffectiveBeginning December 31, 2025, average investments includesinclude the $600 million Intercompany Note with Radian Group, which is eliminated in consolidation.

Net investment income increased for the three and six months ended MarchJune 31,30, 2026, as compared to the same periodperiods in 2025, primarily driven by $10 million of interest earned in each of the first and second quarters of 2026 on the Intercompany Note issued by Radian Guaranty to Radian Group in connection with the Inigo acquisition. A corresponding amount is reported as interest expense for the Corporate category and both amounts are eliminated in consolidation. This benefit was partially offset by a decline in the average balance for the remainder of the investment portfolio.

The increase in the provision for losses for the three and six months ended MarchJune 31,30, 2026, as compared to the same periodperiods in 2025, is primarily driven by an increase in current quarterperiod new defaults and a reduction in favorable development on prior period defaults, which impacted our mortgage insurance loss reserves.

As shown in the table below, current period new primary defaults increased for the three and six months ended MarchJune 31,30, 2026, compared to the same periodperiods in 2025. Our gross Default to Claim Rate assumption for new primary defaults was 7.5% at both MarchJune 31,30, 2026 and 2025. When establishing this assumed rate, we continue to closely monitor the trends in Cures and claims paid for our default inventory, while also weighing the risks and uncertainties associated with the current economic environment.

Our provision for losses during the three and six months ended MarchJune 31,30, 2026, and the same periodperiods in 2025, was positively impacted by favorable reserve development on prior period defaults, primarily as a result of Cure trends that were more favorable trends in Cures than originally estimated. These Cures have been due primarily to favorable outcomes resulting from positive trends in home price appreciation, which has also contributed to a higher rate of claims that result in no ultimate lossestimated, and that are withdrawn by servicers as a result. These favorable observed trends havewhich resulted in reductions in certain of our prior year Default to Claim Rate and other reserve adjustments for prior year default notices.assumptions.

Our primary default rate as a percentage of total insured loans was 2.5% and 2.6% at MarchJune 31,30, 2026, and December 31, 2025, respectively. The following table shows a rollforward of our primary loans in default.

We develop our Default to Claim Rate estimates based primarily on modelsobserved thattrends useand a variety of loan characteristics to determine the likelihood that a default will reach claim status. Our aggregate weighted average net Default to Claim Rate assumption for our primary loans used in estimating our reserve for losses, which is net of estimated Claim Denials and Rescissions, was 24%25% and 23% as of MarchJune 31,30, 2026, and December 31, 2025, respectively. See Note 11 of Notes to Consolidated Financial Statements in our 2025 Form 10-K for additional details about our Default to Claim Rate assumptions.