Radian Group Q3 revenue beats expectations
Overview
US specialty insurer's Q3 revenue grew 106% yr/yr, beating analyst expectations
Adjusted diluted net operating income per share rose yr/yr
Company repurchased $135 mln in shares in Q3, $117 mln more in October
Outlook
Radian Guaranty expects to pay $145 mln in dividends to Radian Group in Q4 2026
Company has $484 mln remaining under current share repurchase authorization expiring December 2027
Company maintains $500 mln undrawn capacity under unsecured revolving credit facility as of Sept 2026
Result Drivers
INIGO ACQUISITION - Addition of Inigo drove significant revenue growth and contributed to overall results
BENIGN CATASTROPHE LOSSES - Specialty segment benefited from lower catastrophe losses, supporting underwriting results
MORTGAGE INSURANCE GROWTH - Primary mortgage insurance in force increased, reaching a record level
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $624 mln | $541.99 mln (3 Analysts) |
Q3 Net Income | $164 mln | ||
Q3 Adjusted Operating Income | Beat | $254 mln | $162.15 mln (2 Analysts) |
Q3 Adjusted ROE | 16.30% | ||
Q3 Pretax Profit | $228 mln | ||
Q3 ROE | 14.60% |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the property & casualty insurance peer group is "buy"
Wall Street's median 12-month price target for Radian Group Inc. is $44.00, about 22.8% above its November 3 closing price of $35.84
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 7 three months ago
Reuters Recommended Reads
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)