Discontinued Operations

9 Months Ended

Sep. 30, 2025

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Discontinued Operations

3. Discontinued Operations

As further discussed in Note 1, in September 2025, Radian Group entered into a definitive agreement to acquire Inigo. As a result of the comprehensive strategic review that led to Radian’s decision to acquire Inigo, Radian Group’s board of directors also approved a plan to divest its Mortgage Conduit, Title and Real Estate Services businesses, which is expected to be completed no later than the third quarter of 2026.

In accordance with the accounting policies described in Note 2, we have reclassified the assets and liabilities associated with these businesses as held for sale and reflected their results as discontinued operations in the Company’s condensed consolidated financial statements, effective beginning with the quarter ended September 30, 2025. We have reflected these changes for all prior periods presented in our condensed consolidated financial statements to conform to the current presentation. No general corporate overhead or interest expense was allocated to discontinued operations. The Company expects to dispose of these businesses at their current carrying value and thus no gain or loss was recognized during the quarter ended September 30, 2025.

The assets and liabilities associated with the discontinued operations have been segregated in the condensed consolidated balance sheets. The following table summarizes the major components of the Mortgage Conduit, Title and Real Estate Services assets and liabilities held for sale on the condensed consolidated balance sheets for the periods presented.


Assets and liabilities held for sale

(In thousands)	September 30, 2025		December 31, 2024
Assets held for sale
Investments
Fixed maturities
Available for sale—at fair value	$	41,821	$	12,515
Residential mortgage loans held for sale—at fair value (1)		551,897		519,885
Short-term investments—at fair value		73,166		111,005
Total investments		666,884		643,405
Cash		777		19,603
Restricted cash		—		2,619
Accrued investment income		5,842		4,745
Accounts and notes receivable		10,638		7,103
Reinsurance recoverables		1,908		1,874
Property and equipment, net		2,780		4,268
Other assets		33,685		42,516
Consolidated VIE assets (2)
Securitized residential mortgage loans held for investment—at fair value		—		717,227
Other VIE assets		—		4,080
Total assets held for sale	$	722,514	$	1,447,440

Liabilities held for sale
Liabilities
Reserve for losses and LAE	$	5,910	$	5,895
Other borrowings (1)		510,342		492,429
Other liabilities		34,147		32,274
Consolidated VIE liabilities (2)
Securitized nonrecourse debt—at fair value		—		703,526
Other VIE liabilities		—		6,069
Total liabilities held for sale	$	550,399	$	1,240,193

(1)

Radian Mortgage Capital has entered into the Master Repurchase Agreements, which are collateralized borrowing facilities used to finance the acquisition of residential mortgage loans and related mortgage loan assets. As of September 30, 2025, Radian Group has entered into four separate Parent Guarantees to guaranty the obligations under the Master Repurchase Agreements. Currently the combined maximum borrowing amount under the Master Repurchase Agreements is $1.2 billion, of which $510 million was outstanding as of September 30, 2025. See Note 12 of Notes to Consolidated Financial Statements in our 2024 Form 10-K for additional information.

(2)

During the third quarter of 2025, the Company sold all its retained interests in the VIEs related to Radian Mortgage Capital’s previously issued mortgage loan securitizations. Following those sales, the Company no longer has an economic interest in the securitizations and is therefore no longer considered the primary beneficiary of those VIEs. As a result, the assets, liabilities, operations and cash flows of the VIEs were deconsolidated in the third quarter of 2025, at an immaterial loss.

The income (loss) from discontinued operations, net of tax, consisted of the following components for the periods indicated.


Income (loss) from discontinued operations, net of tax
	Three months ended September 30,						Nine months ended September 30,

(In thousands)	2025			2024			2025			2024
Revenues
Net premiums earned	$	4,624		$	3,989		$	11,253		$	8,760
Services revenue		12,352			11,922			35,177			37,257
Net investment income		10,744			9,047			29,405			18,780
Net gains (losses) on investments and other financial instruments		2,191			(4,547	)		(3,234	)		(4,226	)
Income (loss) on consolidated VIEs		(2,129	)		465			(1,516	)		465
Other income (loss)		(332	)		(399	)		(903	)		(243	)
Total revenues		27,450			20,477			70,182			60,793

Expenses
Provision for losses		129			543			99			419
Cost of services		8,729			9,416			25,814			27,969
Other operating expenses		23,732			21,933			62,996			71,419
Interest expense		8,105			7,499			22,561			14,045
Total expenses		40,695			39,391			111,470			113,852

Pretax income (loss) from discontinued operations		(13,245	)		(18,914	)		(41,288	)		(53,059	)
Income tax provision (benefit)		(1,886	)		(4,251	)		(9,708	)		(12,648	)
Income (loss) from discontinued operations, net of tax	$	(11,359	)	$	(14,663	)	$	(31,580	)	$	(40,411	)