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Segment Reporting | 9 Months Ended
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Sep. 30, 2025
Segment Reporting [Abstract] |
Segment Reporting | 5. Segment Reporting We currently have one reportable segment, Mortgage Insurance, which primarily derives its revenue by providing private mortgage insurance on residential first-lien mortgage loans to mortgage lending institutions and mortgage credit investors. In addition to this reportable segment, we previously reported in an All Other category activities that consisted 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 results from certain other immaterial activities and operating segments, including our Mortgage Conduit, Title and Real Estate Services businesses. As further described in Note 3, in the quarter ended September 30, 2025, Radian Group’s board of directors approved a plan to divest our Mortgage Conduit, Title and Real Estate Services businesses. As a result, we have reclassified the results related to these businesses to discontinued operations for all periods presented in our condensed consolidated statements of operations. Certain corporate expenses that were previously allocated to these businesses, as well as other general corporate expenses and income (losses) from assets held by Radian Group, were not reclassified to discontinued operations, and therefore have been reallocated to the Mortgage Insurance segment. While we historically have not managed assets by operating segments, the assets related to our non-reportable segments are now segregated as assets held for sale on our condensed consolidated balance sheets, with all remaining assets related to our Mortgage Insurance segment. 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 our businesses. The table below presents details on our Mortgage Insurance segment’s operating results, including a disaggregation of significant segment expenses as monitored by Radian’s chief operating decision maker.
Mortgage Insurance segment operating results |
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
($ in thousands) |  | 2025 |  |  | 2024 |  |  | 2025 |  |  | 2024 |
Total revenues |  | $ | 301,901 |  |  | $ | 306,659 |  |  | $ | 895,437 |  |  | $ | 911,227 |
Less: expenses |  |  |  |  |  |  |  |  |  |  |  |
Provision for losses |  |  | 17,886 |  |  |  | 6,346 |  |  |  | 45,180 |  |  |  | (2,309 | )
Policy acquisition costs |  |  | 7,166 |  |  |  | 6,724 |  |  |  | 20,759 |  |  |  | 20,040 |
Other operating expenses |  |  |  |  |  |  |  |  |  |  |  |
Salaries and share-based employee expenses |  |  | 40,357 |  |  |  | 36,937 |  |  |  | 136,004 |  |  |  | 126,530 |
Other non-personnel operating expenses |  |  | 18,108 |  |  |  | 19,768 |  |  |  | 57,603 |  |  |  | 58,795 |
Depreciation expense |  |  | 2,664 |  |  |  | 3,872 |  |  |  | 8,021 |  |  |  | 11,960 |
Ceding Commissions |  |  | (7,556 | ) |  |  | (6,276 | ) |  |  | (21,353 | ) |  |  | (17,877 | )
Total other operating expenses |  |  | 53,573 |  |  |  | 54,301 |  |  |  | 180,275 |  |  |  | 179,408 |
Interest expense |  |  | 17,184 |  |  |  | 21,892 |  |  |  | 51,101 |  |  |  | 67,182 |
Adjusted pretax operating income |  | $ | 206,092 |  |  | $ | 217,396 |  |  | $ | 598,122 |  |  | $ | 646,906 |
Key segment ratios |  |  |  |  |  |  |  |  |  |  |  |
Loss Ratio (1) |  |  | 7.5 | % |  |  | 2.7 | % |  |  | 6.4 | % |  |  | (0.3 | )%
Expense Ratio (2) |  |  | 25.6 | % |  |  | 26.0 | % |  |  | 28.5 | % |  |  | 28.3 | %
(1) Calculated as provision for losses expressed as a percentage of net premiums earned. (2) Calculated as operating expenses (which consist of policy acquisition costs and other operating expenses) expressed as a percentage of net premiums earned. The calculation of adjusted pretax operating income, as detailed below, excludes income (loss) from discontinued operations, net of tax, for all periods presented herein. Adjusted pretax operating income (loss) is defined as pretax income (loss) from continuing operations excluding the effects of: (i) net gains (losses) on investments and other financial instruments 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 these 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) from continuing operations. The reconciliation of adjusted pretax operating income to pretax income from continuing operations is as follows.
Reconciliation of adjusted pretax operating income to pretax income from continuing operations |
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
(In thousands) |  | 2025 |  |  | 2024 |  |  | 2025 |  |  | 2024 |
Adjusted pretax operating income |  | $ | 206,092 |  |  | $ | 217,396 |  |  | $ | 598,122 |  |  | $ | 646,906 |
Reconciling items |  |  |  |  |  |  |  |  |  |  |  |
Net gains (losses) on investments and other financial instruments |  |  | 1,285 |  |  |  | 6,721 |  |  |  | 1,135 |  |  |  | 2,403 |
Impairment of other long-lived assets and other non-operating items (1) |  |  | (8,683 | ) |  |  | (9,811 | ) |  |  | (9,067 | ) |  |  | (14,086 | )
Pretax income from continuing operations |  | $ | 198,694 |  |  | $ | 214,306 |  |  | $ | 590,190 |  |  | $ | 635,223 |
(1) For the three and nine months ended September 30, 2025, primarily relates to acquisition-related expenses. For the three and nine months ended September 30, 2024, primarily relates to impairment of internal-use software.

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- Definition The entire disclosure for reporting segments including data and tables. 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