Radian (RDN) Q1 Earnings Beat Estimates, Revenues Rise Y/Y
Zacks Investment Research | May 01, 2019 09:40PM ET
Radian Group Inc.’s (NYSE:RDN) first-quarter 2019 operating income of 73 cents per share beat the Zacks Consensus Estimate by 7.4%. The bottom line also improved 23.7% year over year. The company benefited from solid performance of the Mortgage Insurance segment. It continued to grow the insurance in force portfolio, a major catalyst for future earnings.
The quarter proved to be excellent for the company as it witnessed growth in net income, mortgage insurance in force and net operating return on equity as well as book value per share.
Behind the Headlines
Operating revenues grew 11.6% year over year to $309 million, courtesy of higher net premiums, investment income and other income. Total revenues (including services revenues, and net loss on investments and other financial instruments) were $363.6 million, up nearly 24.7% year over year.
New mortgage insurance written declined 7% year over year to $10.9 billion (on a flow basis) in the quarter under review. As of Mar 31, 2019, total primary mortgage insurance in force was $224 billion, up 10% year over year.
The company expects to write new MI business of about $50 billion in 2019.
Persistency — percentage of mortgage insurance in force that remains in the company’s books after a 12-month period — was 83.4% as of Mar 31, 2019, up 240 basis points year over year.
Primary delinquent loans were 20,122 as of Mar 31, 2019, down 18% year over year.
Total expenses decreased 1.1% year over year to $147.5 million, primarily on the back of lower policy acquisition costs and cost of services.
Radian Group Inc. Price, Consensus and EPS Surprise
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