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Segment Reporting
 9 Months Ended
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.