This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

Radian Reports Third Quarter 2012 Financial Results

For Trend Information, refer to our Quarterly Financial Statistics on Radian’s (RDN) website.

               
 

 

 

Radian Group Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

Exhibit B

 
 
September 30 December 31 September 30

(In thousands, except per-share data)

2012 2011 2011
 
Assets:
Cash and investments $ 5,291,795 $ 5,846,168 $ 5,936,586
Deferred policy acquisition costs 91,271 139,906 138,962
Deferred income taxes, net 15,975 15,975 19,244
Reinsurance recoverables 94,584 157,985 166,483
Derivative assets 14,857 17,212 20,315
Receivable for securities sold 52,438 18,702 504,584
Other assets 480,437   460,817   460,111  
Total assets $ 6,041,357   $ 6,656,765   $ 7,246,285  
 
Liabilities and stockholders’ equity:
Unearned premiums $ 614,455 $ 637,372 $ 628,400
Reserve for losses and loss adjustment expenses 3,119,597 3,310,902 3,260,556
Reserve for premium deficiency 5,149 3,644 4,309
Long-term debt 659,119 818,584 814,901
VIE debt 109,651 228,240 273,379
Derivative liabilities 267,323 126,006 188,921
Payable for securities purchased

45,583

46,368 532,451
Other liabilities

305,227

  303,358   254,932  
Total liabilities 5,126,104   5,474,474   5,957,849  
 
Common stock 151 151 151
Additional paid-in capital 1,075,151 1,074,513 1,074,201
Retained (deficit) earnings (177,939 ) 96,227 218,095
Accumulated other comprehensive income (loss) 17,890   11,400   (4,011 )
Total common stockholders’ equity 915,253   1,182,291   1,288,436  
Total liabilities and stockholders’ equity $ 6,041,357   $ 6,656,765   $ 7,246,285  
 
Book value per share $ 6.85 $ 8.88 $ 9.67
 
 

               
 

 

Radian Group Inc. and Subsidiaries

Segment Information

Quarter Ended September 30, 2012

Exhibit C

 
 
Mortgage Financial

(In thousands)

Insurance Guaranty Total
Revenues:
Net premiums written - insurance $ 209,890   $ (613 ) $ 209,277  
 
Net premiums earned - insurance $ 178,685 $ 12,278 $ 190,963
Net investment income 14,758 10,877 25,635
Net gains on investments 43,379 41,280 84,659
Net impairment losses recognized in earnings
Change in fair value of derivative instruments (1 ) (41,055 ) (41,056 )
Net (losses) gains on other financial instruments (1,960 ) 1,220 (740 )
Other income 1,280   48   1,328  
Total revenues 236,141   24,648   260,789  
 
Expenses:
Provision for losses 171,805 4,547 176,352
Change in reserve for premium deficiency 966 966
Policy acquisition costs 10,126 2,801 12,927
Other operating expenses 40,250 10,179 50,429
Interest expense 1,910   10,610   12,520  
Total expenses 225,057   28,137   253,194  
 
Equity in net loss of affiliates      
 
Pretax income (loss) 11,084 (3,489 ) 7,595
Income tax (benefit) provision (20,316 ) 13,586   (6,730 )
 
Net income (loss) $ 31,400   $ (17,075 ) $ 14,325  
 
Cash and investments $ 3,192,341 $ 2,099,454 $ 5,291,795
Deferred policy acquisition costs 39,148 52,123 91,271
Total assets 3,651,849 2,389,508 6,041,357
Unearned premiums 333,144 281,311 614,455
Reserve for losses and loss adjustment expenses 3,046,706 72,891 3,119,597
VIE debt 9,448 100,203 109,651
Derivative liabilities 267,323 267,323
 
 

               
 

 

 

Radian Group Inc. and Subsidiaries

Segment Information

Quarter Ended September 30, 2011

Exhibit D

 
 
Mortgage Financial

(In thousands)

Insurance Guaranty Total
Revenues:
Net premiums written - insurance $ 178,215   $ 72   $ 178,287  
 
Net premiums earned - insurance $ 163,436 $ 16,219 $ 179,655
Net investment income 21,642 17,121 38,763
Net gains on investments 53,263 28,377 81,640
Net impairment losses recognized in earnings (20 ) (20 )
Change in fair value of derivative instruments 200 125,808 126,008
Net gains on other financial instruments 2,486 78,116 80,602
Other income 1,357   47   1,404  
Total revenues 242,364   265,688   508,052  
 
Expenses:
Provision for losses 276,599 (27,001 ) 249,598
Change in reserve for premium deficiency (1,942 ) (1,942 )
Policy acquisition costs 7,834 3,615 11,449
Other operating expenses 36,082 9,158 45,240
Interest expense 2,015   12,079   14,094  
Total expenses 320,588   (2,149 ) 318,439  
 
Equity in net income of affiliates      
 
Pretax (loss) income (78,224 ) 267,837 189,613
Income tax (benefit) provision (36,033 ) 42,078   6,045  
 
Net (loss) income $ (42,191 ) $ 225,759   $ 183,568  
 
Cash and investments $ 3,176,860 $ 2,759,726 $ 5,936,586
Deferred policy acquisition costs 47,863 91,099 138,962
Total assets 3,731,978 3,514,307 7,246,285
Unearned premiums 206,477 421,923 628,400
Reserve for losses and loss adjustment expenses 3,214,854 45,702 3,260,556
VIE debt 31,164 242,215 273,379
Derivative liabilities 188,921 188,921
 
 

               
 

 

 

Radian Group Inc. and Subsidiaries

Segment Information

Nine Months Ended September 30, 2012

Exhibit E

 
 
 
Mortgage Financial

(In thousands)

Insurance Guaranty Total
Revenues:
Net premiums written - insurance $ 589,261   $ (120,374 ) $ 468,887  
 
Net premiums earned - insurance $ 522,899 $ 22,208 $ 545,107
Net investment income 50,377 40,848 91,225
Net gains on investments 102,219 76,318 178,537
Net impairment losses recognized in earnings
Change in fair value of derivative instruments (32 ) (146,905 ) (146,937 )
Net losses on other financial instruments (2,627 ) (77,827 ) (80,454 )
Gain on sale of affiliate 7,708 7,708
Other income 3,928   235   4,163  
Total revenues 676,764   (77,415 ) 599,349  
 
Expenses:
Provision for losses 614,612 38,762 653,374
Change in reserve for premium deficiency 1,505 1,505
Policy acquisition costs 26,662 25,116 51,778
Other operating expenses 107,787 32,989 140,776
Interest expense 5,355   33,894   39,249  
Total expenses 755,921   130,761   886,682  
 
Equity in net loss of affiliates   (13 ) (13 )
 
Pretax loss (79,157 ) (208,189 ) (287,346 )
Income tax (benefit) provision (42,324 ) 29,144   (13,180 )
 
Net loss $ (36,833 ) $ (237,333 ) $ (274,166 )
 
 

               
 

 

Radian Group Inc. and Subsidiaries

Segment Information

Nine Months Ended September 30, 2011

Exhibit F

 
 
Mortgage Financial

(In thousands)

Insurance Guaranty Total
Revenues:
Net premiums written - insurance $ 523,255   $ (9,441 ) $ 513,814  
 
Net premiums earned - insurance $ 513,895 $ 57,717 $ 571,612
Net investment income 73,328 51,498 124,826
Net gains on investments 98,450 64,861 163,311
Net impairment losses recognized in earnings (31 ) (31 )
Change in fair value of derivative instruments 64 558,562 558,626
Net gains on other financial instruments 4,321 156,579 160,900
Other income 3,881   167   4,048  
Total revenues 693,908   889,384   1,583,292  
 
Expenses:
Provision for losses 960,564 (20,027 ) 940,537
Change in reserve for premium deficiency (6,427 ) (6,427 )
Policy acquisition costs 26,651 13,316 39,967
Other operating expenses 104,132 33,281 137,413
Interest expense 11,950   35,247   47,197  
Total expenses 1,096,870   61,817   1,158,687  
 
Equity in net income of affiliates   65   65  
 
Pretax (loss) income (402,962 ) 827,632 424,670
Income tax (benefit) provision (27,158 ) 28,139   981  
 
Net (loss) income $ (375,804 ) $ 799,493   $ 423,689  
 
 

           
 

 

Radian Group Inc. and Subsidiaries

Financial Guaranty Supplemental Information

Exhibit G

 
Quarter Ended September 30 Nine Months Ended September 30

(In thousands)

2012 2011 2012   2011
 
Net Premiums Earned:
Public finance direct $ 8,644 $ 9,708 $ 33,004 $ 29,124
Public finance reinsurance 5,350 5,238 10,942 21,304
Structured direct 242 399 870 1,781
Structured reinsurance (1,958 ) 875 (342 ) 2,639
Trade credit reinsurance   (1 ) (2 ) 40
Net Premiums Earned - insurance 12,278 16,219 44,472 54,888
Impact of commutations and reinsurance     (22,264 ) 2,829
Total Net Premiums Earned - insurance $ 12,278   $ 16,219   $ 22,208   $ 57,717
 
Refundings included in earned premium $ 7,322   $ 4,597   $ 26,029   $ 18,728
 
Net premiums earned - derivatives (1) $ 7,169   $ 10,343   $ 23,041   $ 31,699
 
Claims paid $ 26,593   (2) $ 2,339   $ 28,873   $ 6,035
 
 

(1) Included in change in fair value of derivative instruments.

(2) Primarily represents the settlement of obligations related to our insured sovereign indebtedness to Greece.

 

The impact of the Assured Transaction for the Nine Months Ended September 30, 2012, was as follows:

(In millions)        

Statement of Operations

Decrease in premiums written $ (119.8 )
Decrease in premiums earned $ (22.2 )
Increase in change in fair value of derivative instruments—gain 1.4
Gain on sale of affiliate 7.7
Increase in amortization of policy acquisition costs (15.7 )
Decrease in pre-tax income $ (28.8 )
 

Balance Sheet

Decrease in:
Cash $ 93.6
Deferred policy acquisition costs 26.2
Accounts and notes receivable 1.1
Derivative assets 0.6
Unearned premiums 71.6
Derivative liabilities 2.1
Increase in other assets 19.1
 
 

             
 

 

Radian Group Inc. and Subsidiaries

Financial Guaranty Supplemental Information

Exhibit H

 
September 30 December 31 September 30

($ in thousands, except ratios)

2012 2011 2011
 

Statutory Information:

 
Capital and surplus $ 1,139,842 $ 974,874 $ 1,038,290
Contingency reserve 290,877   421,406   431,715
Qualified statutory capital 1,430,719 1,396,280 1,470,005
 
Unearned premium reserve 275,172 448,669 469,956
Loss and loss expense reserve (50,089 ) 161,287   13,026
Total statutory policyholders’ reserves 1,655,802 2,006,236 1,952,987
 
Present value of installment premiums 107,046   148,641   162,766
Total statutory claims paying resources $ 1,762,848   $ 2,154,877   $ 2,115,753
 
Net debt service outstanding $ 48,302,271   $ 88,202,630   $ 91,717,192
 
Capital leverage ratio (1) 34 63 62
Claims paying leverage ratio (2) 27 41 43
 
Net par outstanding by product:
Public finance direct $ 10,288,776 $ 13,838,427 $ 14,530,364
Public finance reinsurance 5,590,189 19,097,057 19,789,862
Structured direct 22,360,606 34,760,869 35,939,194
Structured reinsurance 800,936   1,492,859   1,630,317
Total (3) $ 39,040,507   (4) $ 69,189,212   $ 71,889,737
 
 
 

(1)

 

The capital leverage ratio is derived by dividing net debt service outstanding by qualified statutory capital.

(2)

The claims paying leverage ratio is derived by dividing net debt service outstanding by total statutory claims paying

resources.

(3)

Included in public finance net par outstanding is $0.9 billion, $1.4 billion and $1.6 billion at September 30, 2012,

December 31, 2011, and September 30, 2011, respectively, for legally defeased bond issues where our financial guaranty policy has

not been extinguished but cash or securities have been deposited in an escrow account for the benefit of bondholders.

(4)

Reductions in par caused by the following: $15.6 billion in connection with the Assured Transaction, $10.2 billion in connection

with the CDO terminations, and $1.2 billion in connection with the Commutation Transactions.

 
 

           
 

 

 

Radian Group Inc. and Subsidiaries

Mortgage Insurance Supplemental Information

Exhibit I

 
Quarter Ended Nine Months Ended
September 30   September 30  
2012       2011   2012       2011  

($ in millions)

$     % $     % $     % $     %

Primary new insurance written

               
Prime $ 10,594 100.0 % $ 4,104 99.9 % $ 25,384 99.9 % $ 8,967 99.9 %
Alt-A 1 2
A minus and below 3         3       0.1   12       0.1   6       0.1  
Total Flow $ 10,598       100.0 % $ 4,107       100.0 % $ 25,398       100.0 % $ 8,973       100.0 %
 

Total primary new insurance written by FICO score

>=740 $ 8,067 76.1 % $ 3,164 77.0 % $ 19,313 76.0 % $ 7,091 79.0 %
680-739 2,259 21.3 892 21.7 5,475 21.6 1,828 20.4
620-679 272       2.6   51       1.3   610       2.4   54       0.6  
Total Flow $ 10,598       100.0 % $ 4,107       100.0 % $ 25,398       100.0 % $ 8,973       100.0 %
 

Percentage of primary new insurance written

Monthly premiums 66 % 56 % 66 % 61 %
Single premiums 34 % 44 % 34 % 39 %
Refinances 35 % 28 % 38 % 34 %
LTV
95.01% and above 1.3 % 2.2 % 1.4 % 1.7 %
90.01% to 95.00% 42.5 % 38.0 % 41.5 % 35.3 %
ARMS
Less than 5 years

<1%

<1

%

<1

%

<1

%
5 years and longer 1.7 % 6.0 % 2.2 % 5.9 %
 
 

             
 

 

 

Radian Group Inc. and Subsidiaries

Mortgage Insurance Supplemental Information

Exhibit J

 
September 30 September 30
2012   2011  

($ in millions)

$     % $     %

Primary insurance in force

Flow $ 123,438 91.4 % $ 111,493 89.5 %
Structured 11,622       8.6   13,143       10.5  
Total Primary $ 135,060       100.0 % $ 124,636       100.0 %
 
Prime $ 117,509 87.0 % $ 104,185 83.6 %
Alt-A 10,883 8.1 12,775 10.2
A minus and below 6,668       4.9   7,676       6.2  
Total Primary $ 135,060       100.0 % $ 124,636       100.0 %
 

Primary risk in force

Flow $ 30,480 92.3 % $ 27,473 90.7 %
Structured 2,540       7.7   2,825       9.3  
Total Primary $ 33,020       100.0 % $ 30,298       100.0 %
 
Flow
Prime $ 27,372 89.8 % $ 23,813 86.7 %
Alt-A 1,928 6.3 2,275 8.3
A minus and below 1,180       3.9   1,385       5.0  
Total Flow $ 30,480       100.0 % $ 27,473       100.0 %
 
Structured
Prime $ 1,482 58.3 % $ 1,651 58.4 %
Alt-A 571 22.5 641 22.7
A minus and below 487       19.2   533       18.9  
Total Structured $ 2,540       100.0 % $ 2,825       100.0 %
 
Total
Prime $ 28,854 87.4 % $ 25,464 84.1 %
Alt-A 2,499 7.6 2,916 9.6
A minus and below 1,667       5.0   1,918       6.3  
Total Primary $ 33,020       100.0 % $ 30,298       100.0 %
 
 

           
 

 

Radian Group Inc. and Subsidiaries

Mortgage Insurance Supplemental Information

Exhibit K

 
September 30 September 30
2012 2011

($ in millions)

$     % $     %

Total primary risk in force by FICO score

       
Flow
>=740 $ 15,141 49.7 % $ 11,566 42.1 %
680-739 9,449 31.0 9,213 33.5
620-679 5,022 16.5 5,671 20.7
<=619 868       2.8   1,023       3.7  
Total Flow $ 30,480       100.0 % $ 27,473       100.0 %
 
Structured
>=740 $ 674 26.5 % $ 752 26.6 %
680-739 736 29.0 822 29.1
620-679 678 26.7 756 26.8
<=619 452       17.8   495       17.5  
Total Structured $ 2,540       100.0 % $ 2,825       100.0 %
 
Total
>=740 $ 15,815 47.9 % $ 12,318 40.7 %
680-739 10,185 30.8 10,035 33.1
620-679 5,700 17.3 6,427 21.2
<=619 1,320       4.0   1,518       5.0  
Total Primary $ 33,020       100.0 % $ 30,298       100.0 %
 

Total primary risk in force by LTV

85.00% and below $ 3,092 9.3 % $ 2,731 9.0 %
85.01% to 90.00% 12,679 38.4 11,717 38.7
90.01% to 95.00% 12,473 37.8 10,390 34.3
95.01% and above 4,776       14.5   5,460       18.0  
Total $ 33,020       100.0 % $ 30,298       100.0 %
 

Total primary risk in force by policy year

2005 and prior $ 5,947 18.0 % $ 7,207 23.8 %
2006 2,827 8.6 3,276 10.8
2007 6,239 18.9 7,175 23.7
2008 4,715 14.3 5,376 17.7
2009 2,200 6.7 2,812 9.3
2010 1,887 5.7 2,354 7.8
2011 3,181 9.6 2,098 6.9
2012 6,024       18.2          
Total $ 33,020       100.0 % $ 30,298       100.0 %
 
Primary risk in force on defaulted loans $ 4,417   $ 5,210  
 
 

           
 

 

 

Radian Group Inc. and Subsidiaries

Mortgage Insurance Supplemental Information

Exhibit L

 
September 30 September 30
2012 2011

($ in millions)

$     % $     %
     

Percentage of primary risk in force

Refinances 31 % 31 %
ARMS
Less than 5 years 4 % 5 %
5 years and longer 5 % 7 %
 

Pool risk in force

Prime $ 1,432 76.8 % $ 1,652 76.6 %
Alt-A 108 5.8 126 5.9
A minus and below 324       17.4   378       17.5  
Total $ 1,864       100.0 % $ 2,156       100.0 %
 

Total pool risk in force by policy year

2005 and prior $ 1,684 90.3 % $ 1,877 87.1 %

 2006

79 4.2 113 5.2

 2007

89 4.8 134 6.2

 2008

12       0.7   32       1.5  
Total pool risk in force $ 1,864       100.0 % $ 2,156       100.0 %
 

Other risk in force

Second-lien
1st loss $ 85 $ 107
2nd loss 23 31
NIMS 14 38
1st loss-Hong Kong primary mortgage insurance 45   72  
Total other risk in force $ 167   $ 248  
 
Risk to capital ratio-Radian Guaranty only 20.1:1

(1)

 

21.4:1
 
(1) Preliminary

           
 

 

 

Radian Group Inc. and Subsidiaries

Mortgage Insurance Supplemental Information

Exhibit M

 
Quarter Ended Nine Months Ended
September 30 September 30

($ in thousands)

2012     2011 2012     2011
 
Net claims paid
Prime $ 169,641 $ 180,523 $ 467,093 $ 644,738
Alt-A 45,058 57,244 121,970 220,514
A minus and below 28,042   37,015   85,234   134,394  
Total primary claims paid 242,741 274,782 674,297 999,646
Pool 26,546 52,771 71,846 145,470
Second-lien and other 3,111   2,342   8,043   8,961  
Subtotal 272,398 329,895 754,186 1,154,077
Impact of first-lien terminations 38,198
Impact of captive terminations (148 ) (1,166 )
Impact of second-lien terminations       16,550  
Total $ 272,398   $ 329,895   $ 754,038   $ 1,207,659  
 
Average claim paid (1)
Prime $ 48.0 $ 51.3 $ 48.6 $ 49.6
Alt-A 59.9 61.8 58.6 61.1
A minus and below 38.1 43.1 38.0 40.1
Total primary average claims paid 48.4 51.8 47.9 50.1
Pool 66.2 79.8 66.6 77.1
Second-lien and other 29.6 25.7 27.5 28.0
Total $ 49.3 $ 54.4 $ 48.8 $ 52.1
 
Average primary claim paid (2) (3) $ 50.8 $ 55.8 $ 50.5 $ 55.1
Average total claim paid (2) (3) $ 51.5 $ 57.9 $ 51.2 $ 56.5
 
Loss ratio - GAAP basis 96.1 % 169.2 % 117.5 % 186.9 %
Expense ratio - GAAP basis 28.2 % 26.9 % 25.7 % 25.4 %
124.3 % 196.1 % 143.2 % 212.3 %
 
Reserve for losses by category
Prime $ 1,693,579 $ 1,655,992
Alt-A 570,055 622,568
A minus and below 355,018 368,034
Reinsurance recoverable (4) 89,801   160,233  
Total primary reserves 2,708,453 2,806,827
Pool insurance 327,020   397,919  
Total 1st lien reserves 3,035,473 3,204,746
Second lien 8,203 10,074
Other 3,030   34  
Total reserves $ 3,046,706   $ 3,214,854  
 
1st lien reserve per default (5)
Primary reserve per primary default $ 28,561 $ 25,346
Primary reserve per default excluding IBNR 26,100 24,436
Pool reserve per pool default (6) 17,538 15,325
Total 1st lien reserve per default 26,750 23,443
 
 
 

(1)

Calculated net of reinsurance recoveries and without giving effect to the impact of first-lien, second-lien and captive terminations.

(2)

Calculated without giving effect to the impact of terminations of captive reinsurance and first- and second-lien transactions.

(3)

Before reinsurance recoveries.

(4)

Represents ceded losses on captive transactions and Smart Home.

(5)

Calculated as total reserves divided by total defaults.

(6)

If calculated before giving effect to deductibles and stop losses in pool transactions, the pool reserve per default at September 30,

2012 and 2011, would be $27,842 and $26,513, respectively.

 
 

     
 

 

Radian Group Inc. and Subsidiaries

Mortgage Insurance Supplemental Information

Exhibit N

 
September 30 December 31 September 30
2012 2011 2011

Default Statistics

Primary Insurance:

 
Flow

Prime

Number of insured loans 608,765 569,190 563,226
Number of loans in default 55,859 65,238 64,426
Percentage of loans in default 9.18 % 11.46 % 11.44 %
 

Alt-A

Number of insured loans 39,274 44,355 45,818
Number of loans in default 12,254 14,481 14,832
Percentage of loans in default 31.20 % 32.65 % 32.37 %
 

A minus and below

Number of insured loans 36,347 40,884 42,246
Number of loans in default 11,273 13,560 13,749
Percentage of loans in default 31.01 % 33.17 % 32.55 %
 
Total Flow
Number of insured loans 684,386 654,429 651,290
Number of loans in default 79,386 93,279 93,007
Percentage of loans in default 11.60 % 14.25 % 14.28 %
 
Structured

Prime

Number of insured loans 38,427 41,248 42,249
Number of loans in default 5,510 6,308 6,229
Percentage of loans in default 14.34 % 15.29 % 14.74 %
 

Alt-A

Number of insured loans 16,893 18,484 18,990
Number of loans in default 4,809 5,563 5,745
Percentage of loans in default 28.47 % 30.10 % 30.25 %
 

A minus and below

Number of insured loans 14,505 15,477 15,807
Number of loans in default 5,126 5,711 5,759
Percentage of loans in default 35.34 % 36.90 % 36.43 %
 
Total Structured
Number of insured loans 69,825 75,209 77,046
Number of loans in default 15,445 17,582 17,733
Percentage of loans in default 22.12 % 23.38 % 23.02 %
 
Total Primary Insurance

Prime

Number of insured loans 647,192 610,438 605,475
Number of loans in default 61,369 71,546 70,655
Percentage of loans in default 9.48 % 11.72 % 11.67 %
 

Alt-A

Number of insured loans 56,167 62,839 64,808
Number of loans in default 17,063 20,044 20,577
Percentage of loans in default 30.38 % 31.90 % 31.75 %
 

A minus and below

Number of insured loans 50,852 56,361 58,053
Number of loans in default 16,399 19,271 19,508
Percentage of loans in default 32.25 % 34.19 % 33.60 %
 
Total Primary
Number of insured loans 754,211 729,638 728,336
Number of loans in default 94,831 110,861 110,740
Percentage of loans in default 12.57 % 15.19 % 15.20 %
 
Pool insurance
Number of loans in default 18,646 21,685 25,966
 
 

           
 

 

 

Radian Group Inc. and Subsidiaries

Mortgage Insurance Supplemental Information

Exhibit O

 

 

Quarter Ended Nine Months Ended
September 30 September 30

($ in thousands)

2012     2011 2012     2011
 

Net Premiums Written

Primary and Pool Insurance $ 209,445 $ 177,642 $ 587,762 $ 521,455
Second-lien 452 565 1,445 1,777
International (7 ) 8   54   23  
Total Net Premiums Written - Insurance $ 209,890   $ 178,215   $ 589,261   $ 523,255  
 

Net Premiums Earned

Primary and Pool Insurance $ 177,929 $ 161,779 $ 520,308 $ 507,636
Second-lien 452 565 1,445 1,777
International 304   1,092   1,146   4,482  
Total Net Premiums Earned - Insurance $ 178,685   $ 163,436   $ 522,899   $ 513,895  
 

1st Lien Captives

Premiums ceded to captives $ 5,327 $ 7,068 $ 18,045 $ 21,921
% of total premiums 2.8 % 4.1 % 3.3 % 4.1 %
IIF included in captives (1) 7.1 % 9.5 %
RIF included in captives (1) 6.9 % 9.3 %
 

Quota Share Reinsurance ("QSR")

QSR ceded premiums written $ 16,378 $ 41,855
% of premiums written 7.1 % 6.5 %
QSR ceded premiums earned $ 5,291 $ 8,389
% of premiums earned 2.8 % 1.5 %
Ceding commissions $ 4,095 $ 10,464
RIF included in QSR (2) $ 1,408,078
 
Persistency (twelve months ended September 30) 82.7 % 85.0 %

(1)

 

Radian reinsures the middle layer risk positions, while retaining a significant portion of the total risk comprising the first loss and most remote risk positions.

(2)

Included in primary risk in force.

 
 




Stock quotes in this article: RDN 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 +2.54 0.14%
NASDAQ 4,095.5160 +9.2910 0.23%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs