Overview
U.S. mortgage insurer's Q4 revenue rose, beating analyst expectations
Adjusted operating income for Q4 beat estimates
Company completed acquisition of Inigo, expanding into global specialty insurance
Outlook
Radian expects Inigo acquisition to deliver mid-teens EPS accretion in 2026
Company plans to pay over $600 mln in dividends to Radian Group in 2026
Radian aims to expand as a global multi-line specialty insurer
Result Drivers
MORTGAGE INSURANCE GROWTH - New insurance written reached $15.9 bln in Q4 2025, up from $13.2 bln in Q4 2024, contributing to record insurance in force
INIGO ACQUISITION - Completed acquisition of Inigo in February 2026, expanding into global specialty insurance
LOSS PROVISION INCREASE - Provision for losses rose to $22 mln in Q4 2025 from a de minimis amount in Q4 2024, amid increased defaults
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Beat | $301 mln | $237.50 mln (3 Analysts) |
Q4 EPS | $1.12 | ||
Q4 Net Income | $155 mln | ||
Q4 Adjusted Operating Income | Beat | $204 mln | $151.90 mln (1 Analyst) |
Q4 Adjusted ROE | 13.60% | ||
Q4 Pretax Profit | $201 mln | ||
Q4 ROE | 13.50% |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the property & casualty insurance peer group is "buy."
Wall Street's median 12-month price target for Radian Group Inc is $39.00, about 19.2% above its February 17 closing price of $32.73
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 8 three months ago
Press Release: ID:nBw9JDR9Ga
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)