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Segment Reporting | 6 Months Ended
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Jun. 30, 2025
Segment Reporting [Abstract] |
Segment Reporting | 4. Segment Reporting We have one reportable segment, Mortgage Insurance, which derives its revenue primarily from mortgage insurance. In addition to this reportable segment, in All Other we report activities for our non-reportable operating segments and other business activities that consist of: (i) income (losses) from assets held by Radian Group, our holding company; (ii) general corporate operating expenses not attributable or allocated to our reportable segment; and (iii) the operating results from certain other immaterial activities and operating segments, including our Mortgage Conduit, Title, Real Estate Services and Real Estate Technology businesses. We allocate corporate operating expenses to our Mortgage Insurance business and our immaterial operating businesses included in All Other based primarily on their respective forecasted annual percentage of total revenue, which approximates the estimated percentage of management time spent on each business. In addition, we allocate all corporate interest expense to our Mortgage Insurance segment, due to the capital-intensive nature of our Mortgage Insurance business. We do not manage assets by operating segments. See Note 1 for additional details about our Mortgage Insurance business. Adjusted Pretax Operating Income (Loss) Our senior management, including our Chief Executive Officer (Radian’s chief operating decision maker), uses adjusted pretax operating income (loss) as our primary measure to evaluate the fundamental financial performance of each of Radian’s businesses and to allocate resources to them. Adjusted pretax operating income (loss) is defined as pretax income (loss) excluding the effects of: (i) net gains (losses) on investments and other financial instruments, except for those investments and other financial instruments attributable to our Mortgage Conduit business and (ii) impairment of other long-lived assets and other non-operating items, if any, such as gains (losses) from the sale of lines of business, acquisition-related income (expenses) and gains (losses) on extinguishment of debt, among others. See Note 4 of Notes to Consolidated Financial Statements in our 2024 Form 10-K for detailed information regarding items excluded from adjusted pretax operating income (loss), including the reasons for their treatment. 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: (i) not viewed as part of the operating performance of our primary activities or (ii) not expected to result in an economic impact equal to the amount reflected in pretax income (loss). The reconciliation of adjusted pretax operating income (loss) for our reportable segment to consolidated pretax income is as follows.
Reconciliation of adjusted pretax operating income (loss) to consolidated pretax income |
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
(In thousands) |  | 2025 |  |  | 2024 |  |  | 2025 |  |  | 2024 |
Mortgage Insurance adjusted pretax operating income |  | $ | 189,522 |  |  | $ | 198,763 |  |  | $ | 383,815 |  |  | $ | 408,613 |
Reconciling items |  |  |  |  |  |  |  |  |  |  |  |
All Other adjusted pretax operating income (loss) |  |  | (16,361 | ) |  |  | (6,080 | ) |  |  | (19,820 | ) |  |  | (13,113 | )
Net gains (losses) on investments and other financial instruments (1) |  |  | 1,852 |  |  |  | (4,438 | ) |  |  | (158 | ) |  |  | (4,331 | )
Impairment of other long-lived assets and other non-operating items (2) |  |  | — |  |  |  | (122 | ) |  |  | (384 | ) |  |  | (4,397 | )
Consolidated pretax income |  | $ | 175,013 |  |  | $ | 188,123 |  |  | $ | 363,453 |  |  | $ | 386,772 |
(1) Does not include net gains (losses) on investments and other financial instruments that are attributable to our Mortgage Conduit business, which are included in All Other adjusted pretax operating income (loss). (2) The non-operating item for the six months ended June 30, 2024, primarily relates to a loss on extinguishment of debt. Segment and Revenue Information The following table summarizes information for our Mortgage Insurance reportable segment as follows.
Reportable segment revenue, significant segment expenses and other segment information |
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
($ in thousands) |  | 2025 |  |  | 2024 |  |  | 2025 |  |  | 2024 |
Total Mortgage Insurance revenues |  | $ | 288,316 |  |  | $ | 285,983 |  |  | $ | 572,614 |  |  | $ | 571,006 |
Less: |  |  |  |  |  |  |  |  |  |  |  |
Provision for losses |  |  | 11,954 |  |  |  | (1,769 | ) |  |  | 27,294 |  |  |  | (8,655 | )
Policy acquisition costs |  |  | 7,205 |  |  |  | 6,522 |  |  |  | 13,593 |  |  |  | 13,316 |
Direct other operating expenses |  |  | 19,874 |  |  |  | 17,157 |  |  |  | 36,441 |  |  |  | 34,427 |
Allocated corporate operating expenses (1) |  |  | 42,328 |  |  |  | 43,197 |  |  |  | 77,451 |  |  |  | 77,706 |
Interest expense |  |  | 17,428 |  |  |  | 21,957 |  |  |  | 33,917 |  |  |  | 45,290 |
Other segment items |  |  | 5 |  |  |  | 156 |  |  |  | 103 |  |  |  | 309 |
Adjusted pretax operating income |  | $ | 189,522 |  |  | $ | 198,763 |  |  | $ | 383,815 |  |  | $ | 408,613 |
Other Mortgage Insurance segment information: |  |  |  |  |  |  |  |  |  |  |  |
Direct depreciation expense |  | $ | 1,916 |  |  | $ | 2,069 |  |  | $ | 3,856 |  |  | $ | 3,992 |
Loss Ratio (2) |  |  | 5.1 | % |  |  | (0.8 | )% |  |  | 5.8 | % |  |  | (1.8 | )%
Expense Ratio (3) |  |  | 29.7 | % |  |  | 28.5 | % |  |  | 27.3 | % |  |  | 26.8 | %
(1) Includes immaterial allocated depreciation expense. (2) Calculated as provision for losses expressed as a percentage of net premiums earned. (3) Calculated as operating expenses (which consist of policy acquisition costs, direct other operating expenses and allocated corporate operating expenses) expressed as a percentage of net premiums earned. The following table, which represents total services revenue in our condensed consolidated statements of operations for the periods indicated, provides the disaggregation of services revenue by revenue type.
Services revenue |
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
(In thousands) |  | 2025 |  |  | 2024 |  |  | 2025 |  |  | 2024 |
Mortgage Insurance |  |  |  |  |  |  |  |  |  |  |  |
Contract underwriting services |  | $ | 42 |  |  | $ | 309 |  |  | $ | 215 |  |  | $ | 519 |
All Other |  |  |  |  |  |  |  |  |  |  |  |
Real Estate Services |  |  |  |  |  |  |  |  |  |  |  |
Valuation |  |  | 2,447 |  |  |  | 4,086 |  |  |  | 6,226 |  |  |  | 8,561 |
Single family rental |  |  | 1,245 |  |  |  | 2,368 |  |  |  | 3,095 |  |  |  | 4,728 |
Asset management technology platform |  |  | 1,250 |  |  |  | 1,223 |  |  |  | 2,527 |  |  |  | 2,423 |
Real estate owned asset management |  |  | 1,213 |  |  |  | 1,100 |  |  |  | 2,356 |  |  |  | 2,249 |
Other real estate services |  |  | 32 |  |  |  | — |  |  |  | 37 |  |  |  | 9 |
Title |  |  | 4,013 |  |  |  | 3,540 |  |  |  | 7,274 |  |  |  | 6,113 |
Real Estate Technology |  |  | 682 |  |  |  | 639 |  |  |  | 1,310 |  |  |  | 1,251 |
Total services revenue |  | $ | 10,924 |  |  | $ | 13,265 |  |  | $ | 23,040 |  |  | $ | 25,853 |
See Note 2 of Notes to Consolidated Financial Statements in our 2024 Form 10-K for information regarding our accounting policies and the services we offer.

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