Radian Group (RDN) investor relations material

Strategic direction and transformation

• Transitioned from a monoline mortgage insurer to a global multi-line specialty insurer with the acquisition of Inigo, expanding addressable markets and diversifying earnings streams.

• Both mortgage and specialty insurance businesses operate independently but share a disciplined, analytics-driven approach to risk, capital management, and customer service, leveraging complementary strengths and low correlation between cycles.

• Strategy centers on optimizing the mortgage insurance platform, scaling specialty insurance, dynamic capital deployment, talent investment, and delivering consistent long-term results.

• Emphasizes leveraging proprietary data, technology, and AI to enhance underwriting, efficiency, and customer experience.

• Leadership transition underway, with a seamless handover planned to the new CEO, ensuring continuity of strategy and culture.

Mortgage insurance business outlook

• Demographic trends and constrained housing supply provide durable tailwinds for new insurance generation, especially among first-time homebuyers, who make up 60% of MI customers.

• Advanced analytics and proprietary models enable granular risk selection and pricing, driving higher economic value and competitive advantage.

• Technology and AI adoption have increased underwriting automation to over 80% of applications, reducing cycle times by 34% since 2020 and improving operational efficiency.

• Maintains a strong capital position, with a $1.6 billion PMIERs buffer and a statutory risk-to-capital ratio at a 20-year low.

• Industry fundamentals are improved from the financial crisis, with high-quality borrowers, stringent standards, and robust risk transfer structures.

Specialty insurance (Inigo) integration and growth

• Inigo operates as a standalone business within the group, focusing on underwriting excellence, deep expertise, and customer-centricity.

• Achieved rapid growth since 2021, reaching $1.6B in gross written premium and maintaining an average net combined ratio of 85% (2023–2025).

• Portfolio is dynamically managed, adding one to two new lines per year, diversified across property, casualty, reinsurance, and specialty lines for profitable growth.

• Uses proprietary technology and advanced analytics to optimize risk selection, pricing, and client engagement, with strong focus on volatility management and catastrophe modeling.

• Culture is intentionally designed to attract and retain top talent, foster collaboration, and support innovation, outperforming Lloyd's market benchmarks.