We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Radian Group Inc | NYSE:RDN | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.11 | 0.32% | 34.66 | 35.03 | 34.615 | 34.74 | 809,874 | 21:01:29 |
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
DC 20549
FORM 8-K
CURRENT REPORT
Pursuant
to Section 13 or 15(d) of
The
Securities Exchange Act of 1934
Date
of report (Date of earliest event reported) January
28, 2016
Radian Group Inc.
(Exact
Name of Registrant as Specified in Its Charter)
Delaware |
1-11356 |
23-2691170 |
(State or Other Jurisdiction |
(Commission |
(IRS Employer |
1601 Market Street, Philadelphia, Pennsylvania |
19103 |
(Address of Principal Executive Offices) |
(Zip Code) |
(215) 231 - 1000
(Registrant’s
Telephone Number, Including Area Code)
(Former
Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
⃞ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
⃞ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
⃞ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
⃞ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02. Results of Operations and Financial Condition.
On January 28, 2016, Radian Group Inc. issued a news release announcing its financial results for the quarter ended December 31, 2015 and the full year 2015. A copy of this news release is furnished as Exhibit 99.1 to this report.
The information included in, or furnished with, this report shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act"), nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
99.1* Radian Group Inc. News Release dated January 28, 2016.
_____________________
* Furnished herewith.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
RADIAN GROUP INC. |
|||
(Registrant) | |||
Date: | January 28, 2016 | By: |
/s/ J. Franklin Hall |
J. Franklin Hall |
|||
Chief Financial Officer |
EXHIBIT INDEX
Exhibit No. |
Description |
|
99.1* |
Radian Group Inc. News Release dated January 28, 2016. |
|
* Furnished herewith. |
Exhibit 99.1
Radian Announces Fourth Quarter and Full Year 2015 Financial Results
- Full year 2015 net income of $287 million or $1.22 per diluted share –
- Full year 2015 adjusted pretax operating income of $511 million or $1.40 per diluted share –
- Book value per share increases 10% year-over-year to $12.07 –
PHILADELPHIA--(BUSINESS WIRE)--January 28, 2016--Radian Group Inc. (NYSE: RDN) today reported net income for the quarter ended December 31, 2015, of $74.5 million, or $0.32 per diluted share. Net income for the full year 2015 was $286.9 million, or $1.22 per diluted share. GAAP net income for 2015 and 2014 are not directly comparable due to the significant impact in 2014 of the sale of Radian Asset Assurance Inc., Radian’s former financial guaranty subsidiary, and the reversal of the company’s deferred tax asset (DTA) valuation allowance.
Key Financial Highlights (dollars in millions, except per share data) |
|||||||||
Quarter Ended December 31, 2015 |
Quarter Ended December 31, 2014 |
Percent Change |
|||||||
Net income from continuing operations | $74.5 | $878.0 | (92%) | ||||||
Diluted net income per share from continuing operations | $0.32 | $3.63 | (91%) | ||||||
Adjusted pretax operating income | $124.1 | $58.4 | 113% | ||||||
Adjusted diluted net operating income per share * | $0.34 | $0.17 | 100% | ||||||
Revenues | $274.9 | $295.1 | (7%) | ||||||
Net premiums earned - insurance | $226.4 | $224.3 | 1% | ||||||
Income (loss) on discontinued operations, net of tax |
-- |
($449.7) |
-- |
||||||
Income tax benefit resulting from reversal of DTA valuation allowance |
-- |
$815.6 |
-- |
||||||
|
Year Ended December 31, 2015 |
Year Ended December 31, 2014 |
Percent Change |
||||||
Net income from continuing operations | $281.5 | $1,259.6 | (78%) | ||||||
Diluted net income per share from continuing operations | $1.20 | $5.44 | (78%) | ||||||
Adjusted pretax operating income | $510.9 | $342.4 | 49% | ||||||
Adjusted diluted net operating income per share * | $1.40 | $1.01 | 39% | ||||||
Revenues | $1,193.3 | $1,072.7 | 11% | ||||||
Net premiums earned - insurance | $915.9 | $844.5 | 8% | ||||||
Income (loss) on discontinued operations, net of tax |
$5.4 |
($300.1) |
-- |
||||||
Income tax benefit resulting from reversal of DTA valuation allowance |
-- |
$995.0 |
-- |
||||||
Book value per share | $12.07 | $10.98 | 10% |
* Adjusted diluted net operating income per share is calculated using the company’s statutory tax rate.
Adjusted pretax operating income for the quarter ended December 31, 2015, was $124.1 million, compared to $58.4 million for the same period of 2014. Adjusted diluted net operating income per share for the quarter ended December 31, 2015, was $0.34, compared to $0.17 for the same period of 2014. Adjusted pretax operating income for the year ended December 31, 2015, was $510.9 million, compared to $342.4 million for the same period of 2014. Adjusted diluted net operating income per share for the twelve months ended December 31, 2015, was $1.40, compared to $1.01 for the same period of 2014. See “Non-GAAP Financial Measures” below.
Book value per share at December 31, 2015, was $12.07, compared to $11.77 at September 30, 2015, and $10.98 at December 31, 2014.
“Radian’s fourth quarter was a strong finish to an equally strong full-year 2015,” said Radian’s Chief Executive Officer S.A. Ibrahim. “We successfully grew adjusted pretax operating income by 49% year-over-year, wrote an amount of high-quality and profitable flow MI business that was among the highest in our company history, and improved the credit profile of our MI portfolio. I am pleased to say that we strongly believe Radian is better positioned today than ever before to drive long-term stockholder value.”
FOURTH QUARTER AND FULL YEAR HIGHLIGHTS
Mortgage Insurance
Mortgage and Real Estate Services
Consolidated Expenses
Other operating expenses were $59.6 million in the fourth quarter, compared to $65.1 million in the third quarter of 2015, and $85.8 million in the fourth quarter of last year.
CAPITAL AND LIQUIDITY UPDATE
Radian Group has approximately $340 million of currently available liquidity.
CONFERENCE CALL
Radian will discuss fourth quarter and year-end 2015 results in a conference call today, Thursday, January 28, 2016, at 10:00 a.m. Eastern time.
The conference call will be broadcast live over the Internet at http://www.radian.biz/page?name=Webcasts or at www.radian.biz. The call may also be accessed by dialing 800.288.8961 inside the U.S., or 612.332.0226 for international callers, using passcode 383877 or by referencing Radian.
A replay of the webcast will be available on the Radian website approximately two hours after the live broadcast ends for a period of one year. A replay of the conference call will be available approximately two and a half hours after the call ends for a period of two weeks, using the following dial-in numbers and passcode: 800.475.6701 inside the U.S., or 320.365.3844 for international callers, passcode 383877.
In addition to the information provided in the company's earnings news release, other statistical and financial information, which is expected to be referred to during the conference call, will be available on Radian's website under Investors >Quarterly Results, or by clicking on http://www.radian.biz/page?name=QuarterlyResults.
NON-GAAP FINANCIAL MEASURES
Radian believes that adjusted pretax operating income and adjusted diluted net operating income per share (non-GAAP measures) facilitate evaluation of the company’s fundamental financial performance and provide relevant and meaningful information to investors about the ongoing operating results of the company. On a consolidated basis, these measures are not recognized in accordance with accounting principles generally accepted in the United States of America (GAAP) and should not be viewed as alternatives to GAAP measures of performance. The measures described below have been established in order to increase transparency for the purpose of evaluating the company’s core operating trends and enabling more meaningful comparisons with Radian’s competitors.
Adjusted pretax operating income is defined as earnings excluding the impact of certain items that are not viewed as part of the operating performance of the company’s primary activities, or not expected to result in an economic impact equal to the amount reflected in pretax income (loss) from continuing operations. Adjusted pretax operating income adjusts GAAP pretax income from continuing operations to remove the effects of: (i) net gains (losses) on investments and other financial instruments; (ii) loss on induced conversion and debt extinguishment; (iii) acquisition-related expenses; (iv) amortization and impairment of intangible assets; and (v) net impairment losses recognized in earnings. Adjusted diluted net operating income per share represents a diluted net income per share calculation using as its basis adjusted pretax operating income, net of taxes at the company’s statutory tax rate for the period.
In addition to the above non-GAAP measures for the consolidated company, the company also presents as supplemental information a non-GAAP measure for the Services segment, representing earnings before interest, income taxes, depreciation and amortization (EBITDA). Services EBITDA is calculated by using adjusted pretax operating income as described above, further adjusted to remove the impact of depreciation and corporate allocations for interest and operating expenses. Services EBITDA is presented to facilitate comparisons with other services companies, since it is a widely accepted measure of performance in the services industry.
See Exhibit F or Radian’s website for a description of these items, as well as Exhibit G for reconciliations to the most comparable consolidated GAAP measures.
ABOUT RADIAN
Radian Group Inc. (NYSE: RDN), headquartered in Philadelphia, provides private mortgage insurance, risk management products and real estate services to financial institutions. Radian offers products and services through two business segments:
Additional information may be found at www.radian.biz.
FINANCIAL RESULTS AND SUPPLEMENTAL INFORMATION CONTENTS |
(Unaudited) |
For trend information on all schedules, refer to Radian’s quarterly financial statistics at http://www.radian.biz/page?name=FinancialReportsCorporate.
Exhibit A: | Condensed Consolidated Statements of Operations Trend Schedule | ||
Exhibit B: | Net Income Per Share Trend Schedule | ||
Exhibit C: | Condensed Consolidated Balance Sheets | ||
Exhibit D: | Discontinued Operations | ||
Exhibit E: | Segment Information | ||
Exhibit F: | Definition of Consolidated Non-GAAP Financial Measure | ||
Exhibit G: | Consolidated Non-GAAP Financial Measure Reconciliations | ||
Exhibit H: | Mortgage Insurance Supplemental Information | ||
New Insurance Written | |||
Exhibit I: | Mortgage Insurance Supplemental Information | ||
Primary Insurance in Force and Risk in Force by Product, Statutory Capital Ratios | |||
Exhibit J: | Mortgage Insurance Supplemental Information | ||
Percentage of Primary Risk in Force by FICO, LTV and Policy Year | |||
Exhibit K: | Mortgage Insurance Supplemental Information | ||
Claims and Reserves | |||
Exhibit L: | Mortgage Insurance Supplemental Information | ||
Default Statistics | |||
Exhibit M: | Mortgage Insurance Supplemental Information | ||
Captives, QSR and Persistency | |||
Radian Group Inc. and Subsidiaries Condensed Consolidated Statements of Operations Trend Schedule Exhibit A (page 1 of 2) |
|||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
(In thousands, except per share amounts) |
Qtr 4 | Qtr 3 | Qtr 2 | Qtr 1 | Qtr 4 | ||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||
Net premiums earned - insurance | $ | 226,443 | $ | 227,433 | $ | 237,437 | $ | 224,595 | $ | 224,293 | |||||||||||||||
Services revenue | 37,493 | 42,189 | 43,503 | 30,630 | 34,450 | ||||||||||||||||||||
Net investment income | 22,833 | 22,091 | 19,285 | 17,328 | 16,531 | ||||||||||||||||||||
Net (losses) gains on investments and other financial instruments | (13,402 | ) | 3,868 | 28,448 | 16,779 | 17,983 | |||||||||||||||||||
Other income | 1,515 | 1,711 | 1,743 | 1,331 | 1,793 | ||||||||||||||||||||
Total revenues | 274,882 | 297,292 | 330,416 | 290,663 | 295,050 | ||||||||||||||||||||
Expenses: | |||||||||||||||||||||||||
Provision for losses | 56,805 | 64,192 | 32,560 | 45,028 | 82,867 | ||||||||||||||||||||
Policy acquisition costs | 4,831 | 2,880 | 6,963 | 7,750 | 6,443 | ||||||||||||||||||||
Direct cost of services | 22,241 | 24,949 | 23,520 | 19,253 | 19,709 | ||||||||||||||||||||
Other operating expenses | 59,570 | 65,082 | 67,731 | 53,774 | 85,800 | ||||||||||||||||||||
Interest expense | 20,996 | 21,220 | 24,501 | 24,385 | 24,200 | ||||||||||||||||||||
Loss on induced conversion and debt extinguishment | 2,320 | 11 | 91,876 |
— |
— |
||||||||||||||||||||
Amortization and impairment of intangible assets | 3,409 | 3,273 | 3,281 | 3,023 | 5,354 | ||||||||||||||||||||
Total expenses | 170,172 | 181,607 | 250,432 | 153,213 | 224,373 | ||||||||||||||||||||
Pretax income from continuing operations | 104,710 | 115,685 | 79,984 | 137,450 | 70,677 | ||||||||||||||||||||
Income tax provision (benefit) | 30,182 | 45,594 | 34,791 | 45,723 | (807,349 | ) | |||||||||||||||||||
Net income from continuing operations | 74,528 | 70,091 | 45,193 | 91,727 | 878,026 | ||||||||||||||||||||
Income (loss) from discontinued operations, net of tax | — | — | 4,855 | 530 | (449,691 | ) | |||||||||||||||||||
Net income | $ | 74,528 | $ | 70,091 | $ | 50,048 | $ | 92,257 | $ | 428,335 | |||||||||||||||
Diluted net income per share: | |||||||||||||||||||||||||
Net income from continuing operations | $ | 0.32 | $ | 0.29 | $ | 0.20 | $ | 0.39 | $ | 3.63 | |||||||||||||||
Income (loss) from discontinued operations, net of tax | — | — | 0.02 | — | (1.85 | ) | |||||||||||||||||||
Net income | $ | 0.32 | $ | 0.29 | $ | 0.22 | $ | 0.39 | $ | 1.78 | |||||||||||||||
Selected Mortgage Insurance Key Ratios | |||||||||||||||||||||||||
Loss ratio (1) | 25.1 | % | 28.2 | % | 13.3 | % | 20.4 | % | 36.9 | % | |||||||||||||||
Expense ratio - NPE basis (1) | 22.7 | % | 23.9 | % | 25.8 | % | 23.0 | % | 36.9 | % | |||||||||||||||
Expense ratio - NPW basis (2) | 22.1 | % | 22.5 | % | 24.4 | % | 21.3 | % | 33.8 | % | |||||||||||||||
(1) |
Calculated on a GAAP basis using net premiums earned (“NPE”). |
|
(2) |
Calculated on a GAAP basis using net premiums written (“NPW”). |
|
On April 1, 2015, Radian Guaranty completed the previously disclosed sale of 100% of the issued and outstanding shares of Radian Asset Assurance to Assured, pursuant to the Radian Asset Assurance Stock Purchase Agreement dated as of December 22, 2014. As a result, the operating results of Radian Asset Assurance are classified as discontinued operations for all periods presented in our condensed consolidated statements of operations. See Exhibit D for additional information on discontinued operations.
Radian Group Inc. and Subsidiaries Condensed Consolidated Statements of Operations Exhibit A (page 2 of 2) |
||||||||||
Year Ended December 31, |
||||||||||
(In thousands, except per-share data) |
2015 | 2014 | ||||||||
Revenues: | ||||||||||
Net premiums earned - insurance | $ | 915,908 | $ | 844,528 | ||||||
Services revenue | 153,815 | 76,693 | ||||||||
Net investment income | 81,537 | 65,655 | ||||||||
Net gains on investments and other financial instruments | 35,693 | 79,989 | ||||||||
Other income | 6,300 | 5,820 | ||||||||
Total revenues | 1,193,253 | 1,072,685 | ||||||||
Expenses: | ||||||||||
Provision for losses | 198,585 | 246,083 | ||||||||
Policy acquisition costs | 22,424 | 24,446 | ||||||||
Direct cost of services | 89,963 | 43,605 | ||||||||
Other operating expenses | 246,157 | 252,283 | ||||||||
Interest expense | 91,102 | 90,464 | ||||||||
Loss on induced conversion and debt extinguishment | 94,207 | — | ||||||||
Amortization and impairment of intangible assets | 12,986 | 8,648 | ||||||||
Total expenses | 755,424 | 665,529 | ||||||||
Pretax income from continuing operations | 437,829 | 407,156 | ||||||||
Income tax provision (benefit) | 156,290 | (852,418 | ) | |||||||
Net income from continuing operations | 281,539 | 1,259,574 | ||||||||
Income (loss) from discontinued operations, net of tax (2) | 5,385 | (300,057 | ) | |||||||
Net income | $ | 286,924 | $ | 959,517 | ||||||
Diluted net income per share: | ||||||||||
Net income from continuing operations | $ | 1.20 | $ | 5.44 | ||||||
Income (loss) from discontinued operations, net of tax | 0.02 | (1.28 | ) | |||||||
Net income | $ | 1.22 | $ | 4.16 | ||||||
Selected Mortgage Insurance Key Ratios | ||||||||||
Loss ratio (1) | 21.7 | % | 29.1 | % | ||||||
Expense ratio - NPE basis (1) | 23.9 | % | 29.6 | % | ||||||
Expense ratio - NPW basis (2) | 22.6 | % | 27.0 | % | ||||||
(1) |
Calculated on a GAAP basis using net premiums earned (“NPE”). |
|
(2) |
Calculated on a GAAP basis using net premiums written (“NPW”). |
|
Radian Group Inc. and Subsidiaries | ||||||||||||||||||||||
Net Income Per Share Trend Schedule | ||||||||||||||||||||||
Exhibit B (page 1 of 2) | ||||||||||||||||||||||
The calculation of basic and diluted net income per share was as follows: | ||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||
(In thousands, except per share amounts) |
Qtr 4 | Qtr 3 | Qtr 2 | Qtr 1 | Qtr 4 | |||||||||||||||||
Net income from continuing operations: | ||||||||||||||||||||||
Net income from continuing operations—basic | $ | 74,528 | $ | 70,091 | $ | 45,193 | $ | 91,727 | $ | 878,026 | ||||||||||||
Adjustment for dilutive Convertible Senior Notes due 2019, net of tax (1) | 3,664 | 3,714 | 3,707 | 3,673 | 3,641 | |||||||||||||||||
Net income from continuing operations—diluted | $ | 78,192 | $ | 73,805 | $ | 48,900 | $ | 95,400 | $ | 881,667 | ||||||||||||
Net income: | ||||||||||||||||||||||
Net income from continuing operations—basic | $ | 74,528 | $ | 70,091 | $ | 45,193 | $ | 91,727 | $ | 878,026 | ||||||||||||
Income (loss) from discontinued operations, net of tax | — | — | 4,855 | 530 | (449,691 | ) | ||||||||||||||||
Net income—basic | 74,528 | 70,091 | 50,048 | 92,257 | 428,335 | |||||||||||||||||
Adjustment for dilutive Convertible Senior Notes due 2019, net of tax (1) | 3,664 | 3,714 | 3,707 | 3,673 | 3,641 | |||||||||||||||||
Net income—diluted | $ | 78,192 | $ | 73,805 | $ | 53,755 | $ | 95,930 | $ | 431,976 | ||||||||||||
Average common shares outstanding—basic | 206,872 | 207,938 | 193,112 | 191,224 | 191,053 | |||||||||||||||||
Dilutive effect of Convertible Senior Notes due 2017 | 1,057 | 1,798 | 12,438 | 10,886 | 10,590 | |||||||||||||||||
Dilutive effect of Convertible Senior Notes due 2019 | 37,736 | 37,736 | 37,736 | 37,736 | 37,736 | |||||||||||||||||
Dilutive effect of stock-based compensation arrangements (2) | 2,316 | 3,323 | 3,364 | 3,202 | 3,422 | |||||||||||||||||
Adjusted average common shares outstanding—diluted | 247,981 | 250,795 | 246,650 | 243,048 | 242,801 | |||||||||||||||||
Net income per share: |
||||||||||||||||||||||
Basic: | ||||||||||||||||||||||
Net income from continuing operations | $ | 0.36 | $ | 0.34 | $ | 0.23 | $ | 0.48 | $ | 4.60 | (3) | |||||||||||
Income (loss) from discontinued operations, net of tax | — | — | 0.03 | — | (2.36 | ) | ||||||||||||||||
Net income | $ | 0.36 | $ | 0.34 | $ | 0.26 | $ | 0.48 | $ | 2.24 | ||||||||||||
Diluted: | ||||||||||||||||||||||
Net income from continuing operations | $ | 0.32 | $ | 0.29 | $ | 0.20 | $ | 0.39 | $ | 3.63 | (3) | |||||||||||
Income (loss) from discontinued operations, net of tax | — | — | 0.02 | — | (1.85 | ) | ||||||||||||||||
Net income | $ | 0.32 | $ | 0.29 | $ | 0.22 | $ | 0.39 | $ | 1.78 | ||||||||||||
(1) |
As applicable, includes coupon interest, amortization of discount and fees, and other changes in income or loss that would result from the assumed conversion. |
|
(2) |
The following number of shares of our common stock equivalents issued under our stock-based compensation arrangements were not included in the calculation of diluted net income per share because they were anti-dilutive: |
|
2015 | 2014 | ||||||||||||||||||||||||||||||
(In thousands) |
Qtr 4 | Qtr 3 | Qtr 2 | Qtr 1 | Qtr 4 | ||||||||||||||||||||||||||
Shares of common stock equivalents | 728 | 469 | 264 | 540 | 542 | ||||||||||||||||||||||||||
(3) |
Includes the tax benefit of $3.36 per share realized relating to the reversal of our valuation allowance in the 4th quarter of 2014. |
|
Radian Group Inc. and Subsidiaries Net Income (Loss) Per Share Exhibit B (page 2 of 2) |
||||||||||
Year Ended December 31, |
||||||||||
(In thousands, except per share amounts) |
2015 | 2014 | ||||||||
Net income from continuing operations: | ||||||||||
Net income from continuing operations - basic | $ | 281,539 | $ | 1,259,574 | ||||||
Adjustment for dilutive Convertible Senior Notes due 2019, net of tax (1) | 14,758 | 14,372 | ||||||||
Net income from continuing operations - diluted | $ | 296,297 | $ | 1,273,946 | ||||||
Net income: | ||||||||||
Net income from continuing operations - basic | $ | 281,539 | $ | 1,259,574 | ||||||
Income (loss) from discontinued operations, net of tax | 5,385 | (300,057 | ) | |||||||
Net income - basic | 286,924 | 959,517 | ||||||||
Adjustment for dilutive Convertible Senior Notes due 2019, net of tax (1) |
14,758 | 14,372 | ||||||||
Net income - diluted | $ | 301,682 | $ | 973,889 | ||||||
Average common shares outstanding—basic | 199,910 | 184,551 | ||||||||
Dilutive effect of Convertible Senior Notes due 2017 | 6,293 | 8,465 | ||||||||
Dilutive effect of Convertible Senior Notes due 2019 | 37,736 | 37,736 | ||||||||
Dilutive effect of stock-based compensation arrangements (2) |
2,393 | 3,150 | ||||||||
Adjusted average common shares outstanding—diluted | 246,332 | 233,902 | ||||||||
Net income (loss) per share: |
||||||||||
Basic: | ||||||||||
Net income from continuing operations | $ | 1.41 | $ | 6.83 |
(3) |
|||||
Income (loss) from discontinued operations, net of tax | 0.03 | (1.63 | ) | |||||||
Net income | $ | 1.44 | $ | 5.20 | ||||||
Diluted: | ||||||||||
Net income from continuing operations | $ | 1.20 | $ | 5.44 |
(3) |
|||||
Income (loss) from discontinued operations, net of tax | 0.02 | (1.28 | ) | |||||||
Net income | $ | 1.22 | $ | 4.16 | ||||||
(1) |
As applicable, includes coupon interest, amortization of discount and fees, and other changes in income or loss that would result from the assumed conversion. |
|
(2) |
The following number of shares of our common stock equivalents issued under our stock-based compensation arrangements were not included in the calculation of diluted net income per share because they were anti-dilutive: |
|
|
Year Ended | |||||||||||||||||
December 31, | |||||||||||||||||
(In thousands) |
2015 | 2014 | |||||||||||||||
Shares of common stock equivalents | 728 | 542 |
(3) |
Includes the tax benefit of $4.25 per share realized relating to the reversal of our valuation allowance in 2014. |
Radian Group Inc. and Subsidiaries Condensed Consolidated Balance Sheets Exhibit C |
|||||||||||||||||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||||||
(In thousands, except per share data) |
2015 | 2015 | 2015 | 2015 | 2014 | ||||||||||||||||||
Assets: | |||||||||||||||||||||||
Investments | $ | 4,298,686 | $ | 4,376,771 | $ | 4,309,148 | $ | 3,621,646 | $ | 3,629,299 | |||||||||||||
Cash | 46,898 | 69,030 | 51,381 | 57,204 | 30,465 | ||||||||||||||||||
Restricted cash | 13,000 | 10,280 | 12,633 | 14,220 | 14,031 | ||||||||||||||||||
Accounts and notes receivable | 61,734 | 65,951 | 72,093 | 64,405 | 85,792 | ||||||||||||||||||
Deferred income taxes, net | 577,945 | 601,893 | 651,238 | 649,996 | 700,201 | ||||||||||||||||||
Goodwill and other intangible assets, net | 289,417 | 287,334 | 290,640 | 293,798 | 288,240 | ||||||||||||||||||
Other assets | 364,108 | 349,657 | 349,371 | 340,276 | 357,864 | ||||||||||||||||||
Assets held for sale | — | — | — | 1,755,873 | 1,736,444 | ||||||||||||||||||
Total assets | $ | 5,651,788 | $ | 5,760,916 | $ | 5,736,504 | $ | 6,797,418 | $ | 6,842,336 | |||||||||||||
Liabilities and stockholders’ equity: | |||||||||||||||||||||||
Unearned premiums | $ | 680,300 | $ | 676,938 | $ | 665,947 | $ | 657,555 | $ | 644,504 | |||||||||||||
Reserve for losses and loss adjustment expenses | 976,399 | 1,098,570 | 1,204,792 | 1,384,714 | 1,560,032 | ||||||||||||||||||
Long-term debt | 1,219,454 | 1,230,246 | 1,224,892 | 1,202,535 | 1,192,299 | ||||||||||||||||||
Other liabilities | 278,704 | 311,855 | 278,929 | 310,642 | 326,743 | ||||||||||||||||||
Liabilities held for sale | — | — | — | 966,078 | 947,008 | ||||||||||||||||||
Total liabilities | 3,154,857 | 3,317,609 | 3,374,560 | 4,521,524 | 4,670,586 | ||||||||||||||||||
Equity component of currently redeemable convertible senior notes | — | 7,737 | 8,546 | 68,982 | 74,690 | ||||||||||||||||||
Common stock | 224 | 224 | 226 | 209 | 209 | ||||||||||||||||||
Additional paid-in capital | 1,823,442 | 1,825,034 | 1,816,545 | 1,648,436 | 1,638,552 | ||||||||||||||||||
Retained earnings | 691,742 | 617,731 | 548,161 | 498,593 | 406,814 | ||||||||||||||||||
Accumulated other comprehensive (loss) income | (18,477 | ) | (7,419 | ) | (11,534 | ) | 59,674 | 51,485 | |||||||||||||||
Total common stockholders’ equity | 2,496,931 | 2,435,570 | 2,353,398 | 2,206,912 | 2,097,060 | ||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 5,651,788 | $ | 5,760,916 | $ | 5,736,504 | $ | 6,797,418 | $ | 6,842,336 | |||||||||||||
Shares outstanding | 206,872 | 206,870 | 208,587 | 191,416 | 191,054 | ||||||||||||||||||
Book value per share | $ | 12.07 | $ | 11.77 | $ | 11.28 | $ | 11.53 | $ | 10.98 | |||||||||||||
Radian Group Inc. and Subsidiaries |
Discontinued Operations |
Exhibit D |
The income from discontinued operations, net of tax consisted of the following components for the periods indicated: |
2015 | ||||||||||
(In thousands) |
Qtr 2 | Qtr 1 | ||||||||
Net premiums earned | $ | — | $ | 1,007 | ||||||
Net investment income | — | 9,153 | ||||||||
Net gains on investments and other financial instruments | 7,818 | 13,668 | ||||||||
Change in fair value of derivative instruments | — | 2,625 | ||||||||
Total revenues | 7,818 | 26,453 | ||||||||
Provision for losses | — | 502 | ||||||||
Policy acquisition costs | — | (191 | ) | |||||||
Other operating expense | — | 4,107 | ||||||||
Total expenses | — | 4,418 | ||||||||
Equity in net loss of affiliates | — | (13 | ) | |||||||
Income from operations of businesses held for sale | 7,818 | 22,022 | ||||||||
Loss on sale | (350 | ) | (13,930 | ) | ||||||
Income tax provision | 2,613 | 7,562 | ||||||||
Income from discontinued operations, net of tax | $ | 4,855 | $ | 530 | ||||||
Radian Group Inc. and Subsidiaries |
Segment Information |
Exhibit E (page 1 of 3) |
Summarized financial information concerning our operating segments as of and for the periods indicated, is as follows. For a definition of adjusted pretax operating income and reconciliations to consolidated GAAP measures, see Exhibits F and G. |
Mortgage Insurance | |||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
(In thousands) |
Qtr 4 | Qtr 3 | Qtr 2 | Qtr 1 | Qtr 4 | ||||||||||||||||||||
Net premiums written - insurance | $ | 233,347 | $ | 242,168 | $ | 251,082 | $ | 241,908 | $ | 244,506 | |||||||||||||||
Increase in unearned premiums | (6,904 | ) | (14,735 | ) | (13,645 | ) | (17,313 | ) | (20,213 | ) | |||||||||||||||
Net premiums earned - insurance | 226,443 | 227,433 | 237,437 | 224,595 | 224,293 | ||||||||||||||||||||
Net investment income (1) | 22,833 | 22,091 | 19,285 | 17,328 | 16,531 | ||||||||||||||||||||
Other income (1) | 1,515 | 1,711 | 1,743 | 1,331 | 1,668 | ||||||||||||||||||||
Total | 250,791 | 251,235 | 258,465 | 243,254 | 242,492 | ||||||||||||||||||||
Provision for losses | 56,817 | 64,128 | 31,637 | 45,851 | 83,649 | ||||||||||||||||||||
Change in expected economic loss or recovery for consolidated VIEs | — | — | — | — | (16 | ) | |||||||||||||||||||
Policy acquisition costs | 4,831 | 2,880 | 6,963 | 7,750 | 6,443 | ||||||||||||||||||||
Other operating expenses before corporate allocations | 37,406 | 36,632 | 41,853 | 34,050 | 62,591 | ||||||||||||||||||||
Total | 99,054 | 103,640 | 80,453 | 87,651 | 152,667 | ||||||||||||||||||||
Adjusted pretax operating income before corporate allocations | 151,737 | 147,595 | 178,012 | 155,603 | 89,825 | ||||||||||||||||||||
Allocation of corporate operating expenses (1) | 9,251 | 14,893 | 12,516 | 9,758 | 13,729 | ||||||||||||||||||||
Allocation of interest expense (1) | 16,582 | 16,797 | 20,070 | 19,953 | 19,760 | ||||||||||||||||||||
Adjusted pretax operating income | $ | 125,904 | $ | 115,905 | $ | 145,426 | $ | 125,892 | $ | 56,336 | |||||||||||||||
Services | |||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
(In thousands) |
Qtr 4 | Qtr 3 | Qtr 2 | Qtr 1 | Qtr 4 | ||||||||||||||||||||
Services revenue | $ | 38,175 | $ | 43,114 | $ | 44,595 | $ | 31,532 | $ | 34,466 | |||||||||||||||
Other income | — | — | — | — | 891 | ||||||||||||||||||||
Total | 38,175 | 43,114 | 44,595 | 31,532 | 35,357 | ||||||||||||||||||||
Direct cost of services | 22,880 | 25,870 | 25,501 | 19,253 | 19,709 | ||||||||||||||||||||
Other operating expenses before corporate allocations | 11,710 | 11,533 | 11,522 | 8,857 | 8,360 | ||||||||||||||||||||
Total | 34,590 | 37,403 | 37,023 | 28,110 | 28,069 | ||||||||||||||||||||
Adjusted pretax operating income before corporate allocations |
3,585 | 5,711 | 7,572 | 3,422 | 7,288 | ||||||||||||||||||||
Allocation of corporate operating expenses | 968 | 1,567 | 1,307 | 981 | 740 | ||||||||||||||||||||
Allocation of interest expense | 4,414 | 4,423 | 4,431 | 4,432 | 4,440 | ||||||||||||||||||||
Adjusted pretax operating (loss) income |
$ | (1,797 | ) | $ | (279 | ) | $ | 1,834 | $ | (1,991 | ) | $ | 2,108 | ||||||||||||
(1) |
For periods prior to the quarter ended June 30, 2015, includes certain corporate income and expenses that have been reallocated from our prior financial guaranty segment to the Mortgage Insurance segment and that were not reclassified to discontinued operations. |
|
Radian Group Inc. and Subsidiaries Segment Information Exhibit E (page 2 of 3) |
||||||||||
Mortgage Insurance | ||||||||||
Year Ended December 31, |
||||||||||
(In thousands) |
2015 | 2014 | ||||||||
Net premiums written - insurance | $ | 968,505 | $ | 925,181 | ||||||
Increase in unearned premiums | (52,597 | ) | (80,653 |
) |
||||||
Net premiums earned - insurance | 915,908 | 844,528 | ||||||||
Net investment income (1) | 81,537 | 65,655 | ||||||||
Other income (1) | 6,300 | 5,321 | ||||||||
Total | 1,003,745 | 915,504 | ||||||||
Provision for losses | 198,433 | 246,865 | ||||||||
Change in expected economic loss or recovery for consolidated VIEs | — | 113 | ||||||||
Policy acquisition costs | 22,424 | 24,446 | ||||||||
Other operating expenses before corporate allocations | 149,941 | 170,390 | ||||||||
Total | 370,798 | 441,814 | ||||||||
Adjusted pretax operating income before corporate allocations | 632,947 | 473,690 | ||||||||
Allocation of corporate operating expenses (1) | 46,418 | 55,154 | ||||||||
Allocation of interest expense (1) | 73,402 | 81,600 | ||||||||
Adjusted pretax operating income | $ | 513,127 | $ | 336,936 | ||||||
Services | ||||||||||
Year Ended December 31, |
||||||||||
(In thousands) |
2015 |
2014(2) |
||||||||
Services revenue | $ | 157,416 | $ | 76,709 | ||||||
Other income | — | 1,265 | ||||||||
Total | 157,416 | 77,974 | ||||||||
Direct cost of services | 93,504 | 43,605 | ||||||||
Other operating expenses before corporate allocations | 43,622 | 18,915 | ||||||||
Total | 137,126 | 62,520 | ||||||||
Adjusted pretax operating income before corporate allocations |
20,290 | 15,454 | ||||||||
Allocation of corporate operating expenses | 4,823 | 1,144 | ||||||||
Allocation of interest expense | 17,700 | 8,864 | ||||||||
Adjusted pretax operating (loss) income |
$ | (2,233 | ) | $ | 5,446 | |||||
(1) |
For periods prior to the quarter ended June 30, 2015, includes certain corporate income and expenses that have been reallocated from our prior financial guaranty segment to the Mortgage Insurance segment and that were not reclassified to discontinued operations. |
|
(2) |
Primarily represents the activity of Clayton; Clayton was acquired on June 30, 2014. |
|
Radian Group Inc. and Subsidiaries Segment Information Exhibit E (page 3 of 3)
Inter-segment information: |
||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||
Qtr 4 | Qtr 3 | Qtr 2 | Qtr 1 | Qtr 4 | ||||||||||||||||
Inter-segment expense included in Mortgage Insurance segment | $ | 682 | $ | 925 | $ | 1,092 | $ | 902 | $ | 782 | ||||||||||
Inter-segment revenue included in Services segment | 682 | 925 | 1,092 | 902 | 782 | |||||||||||||||
Supplemental information for Services EBITDA (see definition in Exhibit F): |
||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||
Qtr 4 | Qtr 3 | Qtr 2 | Qtr 1 | Qtr 4 | ||||||||||||||||
Adjusted pretax operating income before corporate allocations | $ | 3,585 | $ | 5,711 | $ | 7,572 | $ | 3,422 | $ | 7,288 | ||||||||||
Depreciation and amortization | 612 | 555 | 482 | 449 | 442 | |||||||||||||||
Services EBITDA | $ | 4,197 | $ | 6,266 | $ | 8,054 | $ | 3,871 | $ | 7,730 | ||||||||||
Selected balance sheet information for our segments as of the periods indicated, is a follows: |
||||||||||||
At December 31, 2015 | ||||||||||||
(In thousands) |
Mortgage Insurance |
Services | Total | |||||||||
Total assets | $ | 5,291,284 | $ | 360,504 | $ | 5,651,788 | ||||||
At December 31, 2014 | ||||||||||||
(In thousands) |
Mortgage Insurance |
Services | Total | |||||||||
Assets held for sale (1) | $ | — | $ | — | $ | 1,736,444 | ||||||
Total assets | 4,769,014 | 336,878 | 6,842,336 | |||||||||
(1) Assets held for sale are not part of the Mortgage Insurance or Services segments. |
||||||||||||
Radian Group Inc. and Subsidiaries |
Definition of Consolidated Non-GAAP Financial Measure |
Exhibit F (page 1 of 2) |
Use of Non-GAAP Financial Measure |
In addition to the traditional GAAP financial measures, we have presented non-GAAP financial measures for the consolidated company, “adjusted pretax operating income (loss)” and “adjusted diluted net operating income (loss) per share,” among our key performance indicators to evaluate our fundamental financial performance. These non-GAAP financial measures align with the way the Company’s business performance is evaluated by both management and the board of directors. These measures have been established in order to increase transparency for the purposes of evaluating our core operating trends and enabling more meaningful comparisons with our peers. Although on a consolidated basis “adjusted pretax operating income (loss)” and “adjusted diluted net operating income (loss) per share” are non-GAAP financial measures, we believe these measures aid in understanding the underlying performance of our operations. Our senior management, including our Chief Executive Officer (the Company’s chief operating decision maker), uses adjusted pretax operating income (loss) as our primary measure to evaluate the fundamental financial performance of the Company’s business segments and to allocate resources to the segments.
Adjusted pretax operating income (loss) is defined as GAAP pretax income (loss) from continuing operations excluding the effects of net gains (losses) on investments and other financial instruments, loss on induced conversion and debt extinguishment, acquisition-related expenses, amortization and impairment of intangible assets and net impairment losses recognized in earnings. Adjusted diluted net operating income (loss) per share is calculated by dividing (i) adjusted pretax operating income (loss) attributable to common shareholders, net of taxes computed using the company’s statutory tax rate, by (ii) the sum of the weighted average number of common shares outstanding and all dilutive potential common shares outstanding. Interest expense on convertible debt, share dilution from convertible debt and the impact of stock-based compensation arrangements have been reflected in the per share calculations consistent with the accounting standard regarding earnings per share, whenever the impact is dilutive.
Although adjusted pretax operating income (loss) excludes certain items that have occurred in the past and are expected to occur in the future, the excluded items represent those that are: (1) not viewed as part of the operating performance of our primary activities; or (2) not expected to result in an economic impact equal to the amount reflected in pretax income (loss) from continuing operations. These adjustments, along with the reasons for their treatment, are described below.
(1) |
Net gains (losses) on investments and other financial instruments. 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. Unrealized investment gains and losses arise primarily from changes in the market value of our investments that are classified as trading. These valuation adjustments may not necessarily result in economic gains or losses. |
|
Trends in the profitability of our fundamental operating activities can be more clearly identified without the fluctuations of these realized and unrealized gains or losses. We do not view them to be indicative of our fundamental operating activities. Therefore, these items are excluded from our calculation of adjusted pretax operating income (loss). However, we include the change in expected economic loss or recovery associated with our consolidated VIEs, if any, in the calculation of adjusted pretax operating income (loss). | ||
(2) |
Loss on induced conversion and debt extinguishment. Gains or losses on early extinguishment of debt or losses incurred to induce conversion of convertible debt prior to maturity are discretionary activities that are undertaken in order to take advantage of market opportunities to strengthen our financial position; therefore, these activities are not viewed as part of our operating performance. Such transactions do not reflect expected future operations and do not provide meaningful insight regarding our current or past operating trends. Therefore, these items are excluded from our calculation of adjusted pretax operating income (loss). |
|
(3) |
Acquisition-related expenses. Acquisition-related expenses represent the costs incurred to effect an acquisition of a business (i.e., a business combination). Because we pursue acquisitions on a strategic and selective basis and not in the ordinary course of our business, we do not view acquisition-related expenses as a consequence of a primary business activity. Therefore, we do not consider these expenses to be part of our operating performance and they are excluded from our calculation of adjusted pretax operating income (loss). |
|
(4) |
Amortization and impairment of intangible assets. Amortization of intangible assets represents the periodic expense required to amortize the cost of intangible assets over their estimated useful lives. Intangible assets with an indefinite useful life are also periodically reviewed for potential impairment, and impairment adjustments are made whenever appropriate. These charges are not viewed as part of the operating performance of our primary activities and therefore are excluded from our calculation of adjusted pretax operating income (loss). |
|
Radian Group Inc. and Subsidiaries |
||
Definition of Consolidated Non-GAAP Financial Measure |
||
Exhibit F (page 2 of 2) |
||
(5) |
Net impairment losses recognized in earnings. The recognition of net impairment losses on investments can vary significantly in both size and timing, depending on market credit cycles. We do not view these impairment losses to be indicative of our fundamental operating activities. Therefore, whenever these losses occur, we exclude them from our calculation of adjusted pretax operating income (loss). |
|
In addition to the above non-GAAP measures for the consolidated company, we also have presented as supplemental information a non-GAAP measure for our Services segment, representing earnings before interest, income taxes, depreciation and amortization (“EBITDA”). We calculate Services EBITDA by using adjusted pretax operating income as described above, further adjusted to remove the impact of depreciation and corporate allocations for interest and operating expenses. We have presented Services EBITDA to facilitate comparisons with other services companies, since it is a widely accepted measure of performance in the services industry.
See Exhibit G for the reconciliation of our non-GAAP financial measures for the consolidated company, adjusted pretax operating income and adjusted diluted net operating income per share, to the most comparable GAAP measures, pretax income from continuing operations and net income per share from continuing operations, respectively. Exhibit G also contains the reconciliation of Services EBITDA to the most comparable GAAP measure, pretax income from continuing operations.
Total adjusted pretax operating income (loss), adjusted diluted net operating income (loss) per share and Services EBITDA are not measures of total profitability, and therefore should not be viewed as substitutes for GAAP pretax income (loss) from continuing operations or net income (loss) per share from continuing operations. Our definitions of adjusted pretax operating income (loss), adjusted diluted net operating income (loss) per share or EBITDA may not be comparable to similarly-named measures reported by other companies.
Radian Group Inc. and Subsidiaries | ||||||||||||||||||||
Consolidated Non-GAAP Financial Measure Reconciliations | ||||||||||||||||||||
Exhibit G (page 1 of 3) | ||||||||||||||||||||
Reconciliation of Adjusted Pretax Operating Income (Loss) to Consolidated Pretax Income | ||||||||||||||||||||
from Continuing Operations |
||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||
(In thousands) |
Qtr 4 | Qtr 3 | Qtr 2 | Qtr 1 | Qtr 4 | |||||||||||||||
Adjusted pretax operating income (loss): | ||||||||||||||||||||
Mortgage Insurance (1) | $ | 125,904 | $ | 115,905 | $ | 145,426 | $ | 125,892 | $ | 56,336 | ||||||||||
Services (2) | (1,797 | ) | (279 | ) | 1,834 | (1,991 | ) | 2,108 | ||||||||||||
Total adjusted pretax operating income | 124,107 | 115,626 | 147,260 | 123,901 | 58,444 | |||||||||||||||
Net (losses) gains on investments and other financial instruments (3) |
(13,402 | ) | 3,868 | 28,448 | 16,779 | 17,967 | ||||||||||||||
Loss on induced conversion and debt extinguishment | (2,320 | ) | (11 | ) | (91,876 | ) | — | — | ||||||||||||
Acquisition-related expenses (4) | (266 | ) | (525 | ) | (567 | ) | (207 | ) | (380 | ) | ||||||||||
Amortization and impairment of intangible assets (4) | (3,409 | ) | (3,273 | ) | (3,281 | ) | (3,023 | ) | (5,354 | ) | ||||||||||
Consolidated pretax income from continuing operations | $ | 104,710 | $ | 115,685 | $ | 79,984 | $ | 137,450 | $ | 70,677 | ||||||||||
(1) |
For periods prior to the quarter ended June 30, 2015, includes certain corporate income and expenses that have been reallocated from our prior financial guaranty segment to the Mortgage Insurance segment and that were not reclassified to discontinued operations. |
|
(2) |
Effective with the fourth quarter of 2014, the Services segment undertook the management responsibilities of certain additional loan servicer surveillance functions previously considered part of the Mortgage Insurance segment. As a result, these activities are now reported in the Services segment for all periods presented. |
|
(3) |
This line item includes a de minimis amount of expected economic loss or recovery associated with our previously consolidated VIEs that is included in adjusted pretax operating income above. |
|
(4) |
Please see Exhibit F for the definition of this line item. |
|
Reconciliation of Adjusted Diluted Net Operating Income Per Share (1) to Net Income Per Share |
|||||||||||||||||||||
from Continuing Operations | |||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
Qtr 4 | Qtr 3 | Qtr 2 | Qtr 1 | Qtr 4 | |||||||||||||||||
Adjusted diluted net operating income per share | $ | 0.34 | $ | 0.31 | $ | 0.40 | $ | 0.35 | $ | 0.17 | |||||||||||
After tax per share impact: | |||||||||||||||||||||
Net gains (losses) on investments and other financial instruments | (0.03 | ) | 0.01 | 0.07 | 0.04 | 0.05 | |||||||||||||||
Loss on induced conversion and debt extinguishment | (0.01 | ) | — | (0.28 | ) | — | — | ||||||||||||||
Acquisition-related expenses | — | — | — | — | — | ||||||||||||||||
Amortization and impairment of intangible assets | (0.01 | ) | (0.01 | ) | (0.01 | ) | (0.01 | ) | (0.01 | ) | |||||||||||
Difference between statutory and effective tax rate | 0.03 | (0.02 | ) | 0.02 | 0.01 | 3.42 | (2) | ||||||||||||||
Net income per share from continuing operations | $ | 0.32 | $ | 0.29 | $ | 0.20 | $ | 0.39 | $ | 3.63 | |||||||||||
(1) |
Calculated using the company’s statutory tax rate. |
|
(2) |
Includes the tax benefit of $3.36 per share realized relating to the reversal of our valuation allowance in the 4th quarter of 2014. |
|
Radian Group Inc. and Subsidiaries | ||||||||
Consolidated Non-GAAP Financial Measure Reconciliations | ||||||||
Exhibit G (page 2 of 3) | ||||||||
Reconciliation of Adjusted Pretax Operating Income (Loss) to Consolidated Pretax Income | ||||||||
from Continuing Operations |
||||||||
Year Ended December 31, |
||||||||
(In thousands) |
2015 | 2014 | ||||||
Adjusted pretax operating income (loss): | ||||||||
Mortgage Insurance (1) | $ | 513,127 | $ | 336,936 | ||||
Services (2) | (2,233 | ) | 5,446 | |||||
Total adjusted pretax operating income | 510,894 | 342,382 | ||||||
Net gains (losses) on investments and other financial instruments (3) | 35,693 | 80,102 | ||||||
Loss on induced conversion and debt extinguishment | (94,207 | ) | — | |||||
Acquisition-related expenses (4) | (1,565 | ) | (6,680 | ) | ||||
Amortization and impairment of intangible assets (4) | (12,986 | ) | (8,648 | ) | ||||
Consolidated pretax income from continuing operations | $ | 437,829 | $ | 407,156 | ||||
(1) |
For periods prior to the quarter ended June 30, 2015, includes certain corporate income and expenses that have been reallocated from our prior financial guaranty segment to the Mortgage Insurance segment and that were not reclassified to discontinued operations. |
|
(2) |
Effective with the fourth quarter of 2014, the Services segment undertook the management responsibilities of certain additional loan servicer surveillance functions previously considered part of the Mortgage Insurance segment. As a result, these activities are now reported in the Services segment for all periods presented. |
|
(3) |
This line item includes a de minimis amount of expected economic loss or recovery associated with our previously consolidated VIEs that is included in adjusted pretax operating income above. |
|
(4) |
Please see Exhibit F for the definition of this line item. |
|
Reconciliation of Adjusted Diluted Net Operating Income Per Share (1) to Net Income Per Share |
|||||||||
from Continuing Operations |
|||||||||
Year Ended December 31, |
|||||||||
2015 | 2014 | ||||||||
Adjusted diluted net operating income per share | $ | 1.40 | $ | 1.01 | |||||
After tax per share impact: | |||||||||
Net gains (losses) on investments and other financial instruments | 0.09 | 0.22 | |||||||
Loss on induced conversion and debt extinguishment | (0.29 | ) | — | ||||||
Acquisition-related expenses | — | (0.02 | ) | ||||||
Amortization and impairment of intangible assets | (0.04 | ) | (0.02 | ) | |||||
Difference between statutory and effective tax rate | 0.04 | 4.25 | (2) | ||||||
Net income per share from continuing operations | $ | 1.20 | $ | 5.44 | |||||
(1) |
Calculated using the company’s statutory tax rate. |
|
(2) |
Includes the tax benefit of $4.25 per share realized relating to the reversal of our valuation allowance in 2014. |
|
Radian Group Inc. and Subsidiaries | ||||||||||||||||||||
Consolidated Non-GAAP Financial Measure Reconciliations | ||||||||||||||||||||
Exhibit G (page 3 of 3) | ||||||||||||||||||||
Reconciliation of Services Segment EBITDA to Consolidated Pretax Income | ||||||||||||||||||||
from Continuing Operations | ||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||
(In thousands) |
Qtr 4 | Qtr 3 | Qtr 2 | Qtr 1 | Qtr 4 | |||||||||||||||
Services EBITDA | $ | 4,197 | $ | 6,266 | $ | 8,054 | $ | 3,871 | $ | 7,730 | ||||||||||
Allocation of corporate operating expenses to Services | (968 | ) | (1,567 | ) | (1,307 | ) | (981 | ) | (740 | ) | ||||||||||
Allocation of corporate interest expenses to Services | (4,414 | ) | (4,423 | ) | (4,431 | ) | (4,432 | ) | (4,440 | ) | ||||||||||
Services depreciation and amortization | (612 | ) | (555 | ) | (482 | ) | (449 | ) | (442 | ) | ||||||||||
Services adjusted pretax operating (loss) income | (1,797 | ) | (279 | ) | 1,834 | (1,991 | ) | 2,108 | ||||||||||||
Mortgage Insurance adjusted pretax operating income | 125,904 | 115,905 | 145,426 | 125,892 | 56,336 | |||||||||||||||
Total adjusted pretax operating income | 124,107 | 115,626 | 147,260 | 123,901 | 58,444 | |||||||||||||||
Net (losses) gains on investments and other financial instruments |
(13,402 | ) | 3,868 | 28,448 | 16,779 | 17,967 | ||||||||||||||
Loss on induced conversion and debt extinguishment | (2,320 | ) | (11 | ) | (91,876 | ) | — | — | ||||||||||||
Acquisition-related expenses | (266 | ) | (525 | ) | (567 | ) | (207 | ) | (380 | ) | ||||||||||
Amortization and impairment of intangible assets | (3,409 | ) | (3,273 | ) | (3,281 | ) | (3,023 | ) | (5,354 | ) | ||||||||||
Consolidated pretax income from continuing operations | $ | 104,710 | $ | 115,685 | $ | 79,984 | $ | 137,450 | $ | 70,677 | ||||||||||
On a consolidated basis, “adjusted pretax operating income” and “adjusted diluted net operating income per share” are measures not determined in accordance with GAAP. These measures are not representative of total profitability, and therefore should not be viewed as substitutes for GAAP pretax income from continuing operations or net income per share from continuing operations. Our definitions of adjusted pretax operating income and adjusted diluted net operating income per share may not be comparable to similarly-named measures reported by other companies. See Exhibit F for additional information on our consolidated non-GAAP financial measures.
Radian Group Inc. and Subsidiaries | ||||||||||||||||||||
Mortgage Insurance Supplemental Information - New Insurance Written | ||||||||||||||||||||
Exhibit H | ||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||
($ in millions) |
Qtr 4 | Qtr 3 | Qtr 2 | Qtr 1 | Qtr 4 | |||||||||||||||
Total primary new insurance written | $ | 9,099 | $ | 11,176 | $ | 11,751 | $ | 9,385 | $ | 10,009 | ||||||||||
Percentage of primary new insurance written by FICO score |
||||||||||||||||||||
>=740 |
60.3 | % | 61.0 | % | 63.0 | % | 63.6 | % | 60.2 | % | ||||||||||
680-739 |
32.2 | 31.9 | 30.8 | 30.3 | 32.6 | |||||||||||||||
620-679 |
7.5 | 7.1 | 6.2 | 6.1 | 7.2 | |||||||||||||||
Total Primary | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
Percentage of primary new insurance written |
||||||||||||||||||||
Monthly and other premiums | 71 | % | 73 | % | 68 | % | 63 | % | 69 | % | ||||||||||
Single premiums | 29 | % | 27 | % | 32 | % | 37 | % | 31 | % | ||||||||||
Refinances | 17 | % | 13 | % | 23 | % | 33 | % | 22 | % | ||||||||||
LTV | ||||||||||||||||||||
95.01% and above | 3.6 | % | 3.5 | % | 3.2 | % | 1.8 | % | 0.5 | % | ||||||||||
90.01% to 95.00% | 49.5 | % | 51.5 | % | 49.4 | % | 48.4 | % | 51.7 | % | ||||||||||
85.01% to 90.00% | 34.4 | % | 34.1 | % | 34.0 | % | 33.3 | % | 33.2 | % | ||||||||||
85.00% and below | 12.5 | % | 10.9 | % | 13.4 | % | 16.5 | % | 14.6 | % | ||||||||||
Radian Group Inc. and Subsidiaries | ||||||||||||||||||||
Mortgage Insurance Supplemental Information - Primary Insurance in Force and Risk in Force by Product, Statutory Capital Ratios | ||||||||||||||||||||
Exhibit I | ||||||||||||||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||||
($ in millions) |
2015 | 2015 | 2015 | 2015 | 2014 | |||||||||||||||
Primary insurance in force (1) |
||||||||||||||||||||
Flow | $ | 167,469 | $ | 166,527 | $ | 164,137 | $ | 162,832 | $ | 162,302 | ||||||||||
Structured | 8,115 | 8,339 | 8,555 | 9,309 | 9,508 | |||||||||||||||
Total Primary | $ | 175,584 | $ | 174,866 | $ | 172,692 | $ | 172,141 | $ | 171,810 | ||||||||||
Prime | $ | 165,291 | $ | 164,060 | $ | 161,397 | $ | 160,452 | $ | 159,647 | ||||||||||
Alt-A | 6,176 | 6,531 | 6,857 | 7,122 | 7,412 | |||||||||||||||
A minus and below | 4,117 | 4,275 | 4,438 | 4,567 | 4,751 | |||||||||||||||
Total Primary | $ | 175,584 | $ | 174,866 | $ | 172,692 | $ | 172,141 | $ | 171,810 | ||||||||||
Primary risk in force (1) (2) |
||||||||||||||||||||
Flow | $ | 42,771 | $ | 42,454 | $ | 41,706 | $ | 41,256 | $ | 41,071 | ||||||||||
Structured | 1,856 | 1,910 | 1,957 | 2,133 | 2,168 | |||||||||||||||
Total Primary | $ | 44,627 | $ | 44,364 | $ | 43,663 | $ | 43,389 | $ | 43,239 | ||||||||||
Flow | ||||||||||||||||||||
Prime | $ | 41,036 | $ | 40,629 | $ | 39,781 | $ | 39,251 | $ | 38,977 | ||||||||||
Alt-A | 1,061 | 1,124 | 1,191 | 1,243 | 1,295 | |||||||||||||||
A minus and below | 674 | 701 | 734 | 762 | 799 | |||||||||||||||
Total Flow | $ | 42,771 | $ | 42,454 | $ | 41,706 | $ | 41,256 | $ | 41,071 | ||||||||||
Structured | ||||||||||||||||||||
Prime | $ | 1,134 | $ | 1,155 | $ | 1,182 | $ | 1,341 | $ | 1,349 | ||||||||||
Alt-A | 366 | 386 | 397 | 410 | 425 | |||||||||||||||
A minus and below | 356 | 369 | 378 | 382 | 394 | |||||||||||||||
Total Structured | $ | 1,856 | $ | 1,910 | $ | 1,957 | $ | 2,133 | $ | 2,168 | ||||||||||
Total | ||||||||||||||||||||
Prime | $ | 42,170 | $ | 41,784 | $ | 40,963 | $ | 40,592 | $ | 40,326 | ||||||||||
Alt-A | 1,427 | 1,510 | 1,588 | 1,653 | 1,720 | |||||||||||||||
A minus and below | 1,030 | 1,070 | 1,112 | 1,144 | 1,193 | |||||||||||||||
Total Primary | $ | 44,627 | $ | 44,364 | $ | 43,663 | $ | 43,389 | $ | 43,239 | ||||||||||
Statutory Capital Ratios |
||||||||||||||||||||
Risk to capital ratio-Radian Guaranty only |
14.3 |
:1 |
(3) |
16.5 | :1 | 16.5 | :1 | 17.1 | :1 | 17.9 | :1 | |||||||||
Risk to capital ratio-Mortgage Insurance combined |
14.6 |
:1 |
(3) |
17.9 | :1 | 18.0 | :1 | 19.1 | :1 | 20.3 | :1 | |||||||||
(1) |
Includes amounts ceded under our reinsurance agreements, as well as amounts related to the Freddie Mac Agreement. |
|
(2) |
Does not include pool risk in force or other risk in force, which combined represent less than 3.0% of our total risk in force for all periods presented. |
|
(3) |
Preliminary. |
|
Radian Group Inc. and Subsidiaries | ||||||||||||||||||||
Mortgage Insurance Supplemental Information - Percentage of Primary Risk in Force by FICO, LTV and Policy Year | ||||||||||||||||||||
Exhibit J | ||||||||||||||||||||
December 31, |
September 30, | June 30, | March 31, | December 31, | ||||||||||||||||
($ in millions) |
2015 | 2015 | 2015 | 2015 | 2014 | |||||||||||||||
Percentage of primary risk in force by FICO score |
||||||||||||||||||||
Flow | ||||||||||||||||||||
>=740 | 58.3 | % | 58.2 | % | 58.1 | % | 58.1 | % | 58.1 | % | ||||||||||
680-739 | 30.5 | 30.3 | 30.2 | 30.0 | 29.7 | |||||||||||||||
620-679 | 10.1 | 10.3 | 10.5 | 10.6 | 10.8 | |||||||||||||||
<=619 | 1.1 | 1.2 | 1.2 | 1.3 | 1.4 | |||||||||||||||
Total Flow | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
Structured | ||||||||||||||||||||
>=740 | 29.4 |
% |
28.9 |
% |
28.7 | % | 31.1 | % | 30.3 | % | ||||||||||
680-739 | 27.7 | 27.9 | 27.9 | 28.1 | 28.5 | |||||||||||||||
620-679 | 25.0 | 25.2 | 25.4 | 24.1 | 24.3 | |||||||||||||||
<=619 | 17.9 | 18.0 | 18.0 | 16.7 | 16.9 | |||||||||||||||
Total Structured | 100.0 | % | 100.0 |
% |
100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
Total | ||||||||||||||||||||
>=740 | 57.1 | % | 57.0 | % | 56.7 | % | 56.8 | % | 56.7 | % | ||||||||||
680-739 | 30.3 | 30.2 | 30.1 | 29.8 | 29.6 | |||||||||||||||
620-679 | 10.8 | 10.9 | 11.2 | 11.3 | 11.6 | |||||||||||||||
<=619 | 1.8 | 1.9 | 2.0 | 2.1 | 2.1 | |||||||||||||||
Total Primary | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
Percentage of primary risk in force by LTV |
||||||||||||||||||||
95.01% and above | 7.3 | % | 7.4 | % | 7.6 | % | 7.9 | % | 8.2 | % | ||||||||||
90.01% to 95.00% | 50.4 | 49.8 | 49.0 | 48.2 | 47.5 | |||||||||||||||
85.01% to 90.00% | 34.0 | 34.3 | 34.6 | 35.0 | 35.4 | |||||||||||||||
85.00% and below | 8.3 | 8.5 | 8.8 | 8.9 | 8.9 | |||||||||||||||
Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
Percentage of primary risk in force by policy year |
||||||||||||||||||||
2005 and prior | 6.3 | % | 6.8 | % | 7.3 | % | 7.8 | % | 8.2 | % | ||||||||||
2006 |
3.7 | 3.9 | 4.2 | 4.4 | 4.6 | |||||||||||||||
2007 |
8.7 | 9.1 | 9.6 | 10.2 | 10.6 | |||||||||||||||
2008 |
6.3 | 6.6 | 7.0 | 7.5 | 7.9 | |||||||||||||||
2009 |
1.7 | 1.8 | 2.0 | 2.3 | 2.5 | |||||||||||||||
2010 |
1.4 | 1.5 | 1.7 | 2.0 | 2.1 | |||||||||||||||
2011 |
2.9 | 3.1 | 3.5 | 3.9 | 4.2 | |||||||||||||||
2012 |
11.2 | 12.0 | 13.0 | 14.2 | 15.1 | |||||||||||||||
2013 |
18.1 | 19.2 | 20.8 | 22.4 | 23.8 | |||||||||||||||
2014 |
17.1 | 18.0 | 19.0 | 20.0 | 21.0 | |||||||||||||||
2015 |
22.6 | 18.0 | 11.9 | 5.3 | — | |||||||||||||||
Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
Primary risk in force on defaulted loans (1) | $ | 1,625 | $ | 1,666 | $ | 1,753 | $ | 1,883 | $ | 2,089 | ||||||||||
(1) |
Excludes risk related to loans subject to the Freddie Mac Agreement. |
|
Radian Group Inc. and Subsidiaries | |||||||||||||||||||
Mortgage Insurance Supplemental Information - Claims and Reserves | |||||||||||||||||||
Exhibit K | |||||||||||||||||||
2015 | 2014 | ||||||||||||||||||
($ in thousands) |
Qtr 4 | Qtr 3 | Qtr 2 | Qtr 1 | Qtr 4 | ||||||||||||||
Net claims paid | |||||||||||||||||||
Prime | $ | 56,900 | $ | 65,396 | $ | 83,489 | $ | 76,186 | $ | 74,342 | |||||||||
Alt-A | 21,343 | 18,966 | 23,260 | 19,999 | 21,909 | ||||||||||||||
A minus and below | 11,530 | 14,028 | 14,965 | 15,141 | 12,600 | ||||||||||||||
Total primary claims paid | 89,773 | 98,390 | 121,714 | 111,326 | 108,851 | ||||||||||||||
Pool | 6,477 | 8,721 | 10,798 | 8,874 | 8,086 | ||||||||||||||
Second-lien and other | (143 | ) | (16 | ) | (53 | ) | (111 | ) | 283 | ||||||||||
Subtotal | 96,107 | 107,095 | 132,459 | 120,089 | 117,220 | ||||||||||||||
Impact of captive terminations | (65 | ) | — | — | (12,000 | ) | — | ||||||||||||
Impact of settlements | 80,426 | 61,994 | 79,557 | 99,006 | — | ||||||||||||||
Total | $ | 176,468 | $ | 169,089 | $ | 212,016 | $ | 207,095 | $ | 117,220 | |||||||||
Average claim paid (1) | |||||||||||||||||||
Prime | $ | 46.9 | $ | 46.2 | $ | 48.1 | $ | 44.0 | $ | 48.7 | |||||||||
Alt-A | 61.7 | 60.2 | 59.5 | 54.6 | 58.7 | ||||||||||||||
A minus and below | 40.6 | 42.5 | 40.1 | 35.9 | 39.3 | ||||||||||||||
Total primary average claims paid | 48.7 | 47.8 | 48.7 | 44.2 | 49.0 | ||||||||||||||
Pool | 56.3 | 51.3 | 69.7 | 51.5 | 46.5 | ||||||||||||||
Total | $ | 48.9 | $ | 47.8 | $ | 49.6 | $ | 44.5 | $ | 48.2 | |||||||||
Average primary claim paid (2) | $ | 50.5 | $ | 48.5 | $ | 49.6 | $ | 45.3 | $ | 50.4 | |||||||||
Average total claim paid (2) | $ | 50.6 | $ | 48.5 | $ | 50.4 | $ | 45.5 | $ | 49.4 | |||||||||
($ in thousands, except primary reserve per |
December 31, |
September 30, |
June 30, |
March 31, | December 31, | ||||||||||||||
primary default amounts) |
2015 |
2015 |
2015 |
2015 | 2014 | ||||||||||||||
Reserve for losses by category | |||||||||||||||||||
Prime | $ | 480,481 | $ | 519,572 | $ | 562,918 | $ | 640,919 | $ | 700,174 | |||||||||
Alt-A | 203,706 |
234,772 |
256,854 | 278,350 | 292,293 | ||||||||||||||
A minus and below | 129,352 | 137,441 | 148,043 | 163,390 | 179,103 | ||||||||||||||
IBNR and other | 83,066 | 107,179 | 125,038 | 167,204 | 223,114 | ||||||||||||||
LAE | 26,108 | 41,464 | 48,141 | 53,210 | 56,164 | ||||||||||||||
Reinsurance recoverable (3) | 8,286 | 11,071 | 11,677 | 13,365 | 26,665 | ||||||||||||||
Total primary reserves | 930,999 | 1,051,499 | 1,152,671 | 1,316,438 | 1,477,513 | ||||||||||||||
Pool insurance | 42,084 | 43,234 | 47,902 | 62,943 | 75,785 | ||||||||||||||
IBNR and other | 1,118 | 949 | 891 | 1,227 | 1,775 | ||||||||||||||
LAE | 1,335 | 1,983 | 2,353 | 3,051 | 3,542 | ||||||||||||||
Total pool reserves | 44,537 | 46,166 | 51,146 | 67,221 | 81,102 | ||||||||||||||
Total 1st lien reserves | 975,536 | 1,097,665 | 1,203,817 | 1,383,659 | 1,558,615 | ||||||||||||||
Second-lien and other | 863 | 905 | 975 | 1,055 | 1,417 | ||||||||||||||
Total reserves | $ | 976,399 | $ | 1,098,570 | $ | 1,204,792 | $ | 1,384,714 | $ | 1,560,032 | |||||||||
1st lien reserve per default | |||||||||||||||||||
Primary reserve per primary default excluding IBNR and other | $ | 24,019 | $ | 26,237 | $ | 27,279 | $ | 28,423 | $ | 27,683 |
(1) |
Net of reinsurance recoveries and without giving effect to the impact of captive terminations and settlements. |
|
(2) |
Before reinsurance recoveries and without giving effect to the impact of captive terminations and settlements. |
|
(3) |
Primarily represents ceded losses on captive transactions and quota share reinsurance transactions. |
|
Radian Group Inc. and Subsidiaries | |||||||||||||||
Mortgage Insurance Supplemental Information - Default Statistics | |||||||||||||||
Exhibit L | |||||||||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||
2015 | 2015 | 2015 | 2015 | 2014 | |||||||||||
Default Statistics |
|||||||||||||||
Primary Insurance: | |||||||||||||||
Prime |
|||||||||||||||
Number of insured loans | 816,797 | 812,657 | 802,719 | 801,332 | 797,436 | ||||||||||
Number of loans in default | 22,223 | 22,328 | 23,237 | 25,114 | 28,246 | ||||||||||
Percentage of loans in default | 2.72 | % | 2.75 | % | 2.89 | % | 3.13 | % | 3.54 | % | |||||
Alt-A |
|||||||||||||||
Number of insured loans | 32,411 | 34,166 | 35,927 | 37,468 | 38,953 | ||||||||||
Number of loans in default | 5,813 | 6,318 | 6,949 | 7,480 | 8,136 | ||||||||||
Percentage of loans in default | 17.94 | % | 18.49 | % | 19.34 | % | 19.96 | % | 20.89 | % | |||||
A minus and below |
|||||||||||||||
Number of insured loans | 31,902 | 33,018 | 34,224 | 35,425 | 36,688 | ||||||||||
Number of loans in default | 7,267 | 7,229 | 7,490 | 7,846 | 8,937 | ||||||||||
Percentage of loans in default | 22.78 | % | 21.89 | % | 21.89 | % | 22.15 | % | 24.36 | % | |||||
Total Primary | |||||||||||||||
Number of insured loans | 881,110 | 879,841 | 872,870 | 874,225 | 873,077 | ||||||||||
Number of loans in default (1) | 35,303 | 35,875 | 37,676 | 40,440 | 45,319 | ||||||||||
Percentage of loans in default | 4.01 | % | 4.08 | % | 4.32 | % | 4.63 | % | 5.19 | % | |||||
(1) |
Excludes the following number of loans subject to the Freddie Mac Agreement that are in default as we no longer have claims exposure on these loans: |
December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||
2015 | 2015 | 2015 | 2015 | 2014 | ||||||||||
Number of loans in default | 2,821 | 2,993 | 3,246 | 3,715 | 4,467 | |||||||||
Radian Group Inc. and Subsidiaries | ||||||||||||||||||||
Mortgage Insurance Supplemental Information - Captives, QSR and Persistency | ||||||||||||||||||||
Exhibit M | ||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||
($ in thousands) |
Qtr 4 | Qtr 3 | Qtr 2 | Qtr 1 | Qtr 4 | |||||||||||||||
1st Lien Captives |
||||||||||||||||||||
Premiums ceded to captives | $ | 2,268 | $ | 2,434 | $ | 2,700 | $ | 2,585 | $ | 3,078 | ||||||||||
% of total premiums | 1.0 | % | 1.0 | % | 1.1 | % | 1.1 | % | 1.3 | % | ||||||||||
Insurance in force included in captives (1) | 2.1 | % | 2.2 | % | 2.4 | % | 2.5 | % | 2.8 | % | ||||||||||
Risk in force included in captives (1) | 1.9 | % | 2.1 | % | 2.2 | % | 2.4 | % | 2.7 | % | ||||||||||
Initial Quota Share Reinsurance (“QSR”) Transaction |
||||||||||||||||||||
QSR ceded premiums written | $ | 3,145 | $ | 3,437 | $ | 3,822 | $ | 4,067 | $ | (4,801 | ) | |||||||||
% of premiums written | 1.3 | % | 1.4 | % | 1.5 | % | 1.6 | % | (1.9 | )% | ||||||||||
QSR ceded premiums earned | $ | 4,647 | $ | 5,067 | $ | 6,425 | $ | 6,018 | $ | (2,869 | ) | |||||||||
% of premiums earned | 1.9 | % | 2.1 | % | 2.6 | % | 2.5 | % | (1.2 | )% | ||||||||||
Ceding commissions | $ | 681 | $ | 745 | $ | 828 | $ | 880 | $ | 1,108 | ||||||||||
Risk in force included in QSR (2) | $ | 836,192 | $ | 889,298 | $ | 954,673 | $ | 1,041,383 | $ | 1,105,545 | ||||||||||
Second QSR Transaction |
||||||||||||||||||||
QSR ceded premiums written | $ | 3,789 | $ | 5,030 | $ | 394 | $ | 6,529 | $ | 9,303 | ||||||||||
% of premiums written | 1.6 | % | 2.0 | % | 0.2 | % | 2.6 | % | 3.7 | % | ||||||||||
QSR ceded premiums earned | $ | 5,876 | $ | 7,134 | $ | 3,040 | $ | 8,768 | $ | 8,339 | ||||||||||
% of premiums earned | 2.5 | % | 3.0 | % | 1.2 | % | 3.6 | % | 3.6 | % | ||||||||||
Ceding commissions | $ | 1,872 | $ | 1,998 | $ | 2,154 | $ | 2,285 | $ | 3,256 | ||||||||||
Risk in force included in QSR (2) | $ | 1,294,838 | $ | 1,364,615 | $ | 1,440,312 | $ | 1,533,677 | $ | 1,615,554 | ||||||||||
Persistency (twelve months ended) (3) | 78.8 | % | 79.2 | % | 80.1 | % | 82.6 | % | 84.2 | % | ||||||||||
Persistency (quarterly, annualized) | 81.8 | % | 80.5 | % | 76.2 | % | 80.3 | % |
83.3 |
% |
(1) |
Radian reinsures the middle layer risk positions, while retaining a significant portion of the total risk comprising the first loss and most remote risk positions. |
|
(2) |
Included in primary risk in force. |
|
(3) |
Effective March 31, 2015, we refined our persistency calculation to incorporate loan level detail rather than aggregated portfolio data. Prior periods have been recalculated and reflect the current calculation methodology. |
|
FORWARD-LOOKING STATEMENTS
All statements in this report that address events, developments or results that we expect or anticipate may occur in the future are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Exchange Act and the U.S. Private Securities Litigation Reform Act of 1995. In most cases, forward-looking statements may be identified by words such as "anticipate," "may," "will," "could," "should," "would," "expect," "intend," "plan," "goal," "contemplate," "believe," "estimate," "predict," "project," "potential," "continue," "seek," "strategy," "future," "likely" or the negative or other variations on these words and other similar expressions. These statements, which may include, without limitation, projections regarding our future performance and financial condition, are made on the basis of management's current views and assumptions with respect to future events. Any forward-looking statement is not a guarantee of future performance and actual results could differ materially from those contained in the forward-looking statement. These statements speak only as of the date they were made, and we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. We operate in a changing environment. New risks emerge from time to time and it is not possible for us to predict all risks that may affect us. The forward-looking statements, as well as our prospects as a whole, are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements including:
For more information regarding these risks and uncertainties as well as certain additional risks that we face, you should refer to the Risk Factors detailed in Item 1A of Part I of our Annual Report on Form 10-K for the year ended December 31, 2014 and in our subsequent reports and registration statements filed from time to time with the U.S. Securities and Exchange Commission. We caution you not to place undue reliance on these forward-looking statements, which are current only as of the date on which we issued this press release. We do not intend to, and we disclaim any duty or obligation to, update or revise any forward-looking statements to reflect new information or future events or for any other reason.
CONTACT:
Radian Group Inc.
Emily Riley, 215-231-1035
emily.riley@radian.biz
1 Year Radian Chart |
1 Month Radian Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions