RDN - Earnings call transcript Q2 2021

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Operator

Good morning and welcome to the Radian Second Quarter 2021 Earnings Call. My name is Anara and I'll be the operator for today's call. At this time, all participants are in a listen-only mode. Later, we'll conduct a question-and-answer session. [Operator Instructions] Please note this conference is being recorded. the to turn now will call Mr. over I of and Corporate Damian, Senior Relations President Vice John Development. Investor you John may begin.

John Damian

Thank you call. conference quarter second and welcome to Radian's XXXX

operating Our release the during adjusted on Investors for per of adjusted our be financial income yesterday contains discussed www.radian.com. today's and non-GAAP section press pretax This measures net at adjusted was will press evening to including quarter diluted certain and operating issued results return posted is website release which includes call net the share, income, operating Radian's that equity.

non-GAAP Homegenius In profit addition pretax arise specifically the website. of hand Officer; Executive is other corporate from hear Thornberry, Rick found Chief section you portion operating that in for will also This release include exhibits complete Chief Investors allocated be profit, F Frank available Q&A before of may on our of the Officer. Derek Exhibit Also will Radian's Hall, for today Financial be release on These A found and press of adjusted morning be call our Mortgage. the the reconciliations Due may adjusted President ask Brummer, expenses, Radian loss call. of are gross press description segment, current our discussed environment, remote. you excuse during to to may technical and any that or Homegenius measures related or issues the all please speakers are and that would I income our measures Exhibit G. GAAP in operating non-GAAP the margins. sound quality

statements made projections, forward-looking during to differ to current like would include you results that are which actual this These subject cause and are risks assumptions based will call estimates, to and on may I comments materially. that expectations, statements. begin, we uncertainties, Before remind

subsequent in reports XXXX statements risk a discussion and regarding cautionary SEC. the These Form in factors filed available included our risks, release on included of please these the the earnings website. XX-K are our also forward-looking review statements For with and our

turn call to to Now, I over like Rick. would the

Rick Thornberry

Thank us for joining Thank John and and your good morning. in you, for you Radian. interest all today

that positive a by company the as favorable mortgage environment. in spectrum, more the housing operating across encouraged continued reflect well our to the we increasingly estate a credit offers and certain are momentum as insured and market As within products a trends portfolio that services return the real

accordingly. per a insights We continue monitor to pandemic position Frank even reported discuss the net dividends from and and $X.XX and for and closely past details our share operating of shortly, in share accounting the few grew was second diluted economic value we this business that highlights navigating the quarter. book income growth share income the after $X.XX. me per quarter let year. adjusted the million million We to environment financial We year-over-year. achieved We of our for share per will but the or returned $XXX $XXX the over XX% by our net stockholders

mortgage value on insurance remain For the our maximizing earnings mortgage our of the portfolio. we future economic focused segment, and

insurance by our that note, the important $XX.X a wrote billion in and high-value decline primary despite During high-quality, quarter composition modest driver we our monthly It's premium to June the portfolio at mortgage of year-over-year, premiums. in through primary in of billion XX. insurance was the which $XXX.X force our business our portfolio a insurance gone insurance mortgage X%, favorable with total earned growing transition of the is has force

June cures with of each performance Strong improvement since our year-over-year outpacing activity We in cure total XXXX. have credit in defaults seen month portfolio the our decline loans. XX% with number of a continued defaulted new continues

since months of “cured”. XX% and prior The XX% our was last number year defaults approximately forbearance defaulted of of this better-than-expected provision in observing peak in and of period declining In we quarter cure defaults of from activity driver our a a our addition, new defaults. are primary are in the default decrease more June than loss loans May and

new at in At cushion were or assets the notices due billion quarter Guaranty's or default to excess levels. default pre-COVID of fact, below Radian PMIERs grew $X.X second June In XX%. of available a XX,

Now focus I'd to economic provide some mortgage our building insurance and like perspective pricing on on value.

following quarters mentioned seen year downturn a in have the the few shown May, over some we last environment as As ago. increased improvement competition pricing the has economic I pandemic-related

second quarter, mortgage to remained how competitive continue insurance this Radian, It that important less focus value are to signs our a have that we highlight company on industry normal generating is that shareholders. transitioning the at and long-term in for navigating we environment and value the During environment. more we economic are is maximizing and seeing to disciplined

write continue believe portfolio. that our value to We to add new economic attractive at returns business we will

business we While rata a pro we the overall expect share share back across trending our some believe recent volume industry, is the market. market volatility mortgage quarter-to-quarter towards of insurance

terms and positive insurance the market strong purchase index, of own our of in remains the relatively across the price ago. illustrated our new XXXX demand Based which represented year volume business, prices supply the data a housing continued in in In versus of on XX% only country. led increase XX% market, saw market continuing strong quarter. the Radian housing the the quarter an latest by home over the in we Overall, limited home quarter the mortgage second second XX% home a to overall of second purchase from momentum composition annualized

likelihood lower this market mortgage interest insurance improving $X.X strong is insurance economic and year that strong for still to of believe demand, positive believe refinance projected purchase by to market in but given in appreciation originations terms represent we well these we dynamics due tailwinds purchase rates underwriting second relatively year and first-time approximately mortgage purchase We overall future conditions we while approximately than volume low fueled lower less of the housing economy, growth continue market estimate and supply, private to be for mortgage a for The mortgage home record values be continues expect to mortgage in growth of projections, than projections which homebuyers, the of earnings loans. income an home Overall, volume. for origination utilize Based price billion, now provided will the are compared expected grow, as volume value mortgage XXXX insurance continue industry, the improving market. industry XXXX, origination highest private the MI sustainable to refinance be expect to is Recent XXXX most market mortgage housing to trillion combination healthy billion the total the market and and to rate in to the and to macroeconomic moderate aligned strong will slightly insurance history. portfolio. recent $XXX long-term on our be should higher the loans which $XXX the home

Turning XX% in to year-over-year. by the formerly estate. the year-over-year revenue, driven $XX.X for second as as increase first segment, were representing title This homegenius our an in XX% a quarter known a from Total was of quarter business. grew as growth million, XX% increase real which our valuation our primarily increase well and revenues XXXX

ensuring services segment and has for and in value mission products against going our projections insurance contribution during and months home affordable Frank our ownership. natural introduced As business two Investor that discuss We significant the potential will we believe creation homegenius progress financial the financial we forward, June, Real mortgage Estate our and the Day sustainable of support a our extension are discussed core of ago.

total of terms capital strength, billion of capital In XX, strong at Group Radian maintained June company holding a liquidity. with $X.X position

share in as remains additional for the under increase last million Radian Approximately that million quarterly of our In our X.X May, second million million dividend. this shares activity, shares $XX.X our of mentioned dividend in XX% terms stock, And repurchased July. an quarterly month. we authorization the buyback million X.X $X.XX, during expires Group and we a of $XX for increased current $XX over prior we quarter of end common quarter at

Sandra were to bring of view the to access promoting while legislative and team, been we continuing to long-serving safety believe Thompson, of the FHFA We FHFA. ensure the balanced Turning And the of has member Director, will Director administrations. solidness and Acting Acting the as a affordability appointment across landscape. happy Thompson see a of to she regulatory multiple GSEs.

performance or is Importantly, working evolution Acting she served the including look resilient reform during mortgage has most strength her model period. the We Director, our COVID team. the with insurance familiar to business recent Thompson our intimately the FHFA and therefore business model, of the and of during the with forward of and PMIERs pandemic with implementation

in GSEs particular that help every quarter changes the are the that phase unprecedented adverse instituted on refinance to recently their with homeownership proposals loans the of phased also wind-down we easy appear to also to intended burden COVID environment, for insurers and are basis relief their ongoing allow this support to instituted available entered regulatory down XX various that continues, on restrictions. borrowers of CFPB their and same The the of federal eviction the level ensure thresholds, relief which homebuyers. to meet the benefit market given moratoria focused program in significant of regulatory programs certain are remain pandemic new time, first-time foreclosure-related has balancing At of a The guidelines rules of the scheduled As come opportunity asset temporary dividends lifted to fee a remainder point throughout number homes. and and the year. new PMIERs in the coordination have for off economic legislative have mortgage to

ownership phased continue is foreseeable careful this and economy home balance support expect for We the insurance mortgage for future, federal and and to the given with to industry interest borrower for return good our the which further between normality alignment well. as for strong a

Now financial to the for like turn of Frank, details call over position. I would to our

Frank Hall

quarter quarter our quarter compared the in Thank drivers quarter income in morning of first to XXXX I'll per to net net and net of as everyone. we in the for XXXX. adjusted per net net the compared XXXX, of share turn good quarter and $X.XX share second second $X.XX diluted operating diluted the results Rick To evening, in in a of the our was XXXX. income of first last issued share recap million diluted of adjusted per share financial $X.XX share to as of key net of share XXXX, loss operating diluted GAAP and now quarter per of of $X.XX revenue. loss $X.XX or the XXXX, income second of second Adjusted diluted income per $XXX.X diluted of reported $X.XX you, per operating the

the second during As billion first compared insurance $XX.X written quarter $XX.X Rick of $XX.X to and in the quarter mentioned was new the XXXX earlier, in quarter, billion XXXX. billion of our

increase XXXX this written of XX% New of ago. new increase paid second X%. second $XX.X increase than compared quarter X% from force insurance XX% accounted insurance insurance an were for for the for quarter, written for the an decreased other a and total quarter in XX% XX% end Lender year quarter of of quarter the compared Primary the recurring a with new an billion decline from our quarter of transactions monthly policies first of year-over-year new XXXX written the of volume the XXXX. Purchase of policies of quarter, insurance to Direct for second at as the $XXX.X XX%, written. volume year-over-year first the of of and in force XXXX. less total XX% our for the approximately $XXX.X to in insurance in billion, XX% insurance prior billion to purchase in premium and was quarter, and XX% first accounted our quarter

life force majority Our the in which has insurance is by persistency. insurance over decline prepayments of business a outcome shortened. earned returns, single year-over-year, force on in premium monthly premium was realized as primary low positive The however, year-over-year premium that to an decline force in which in XX% our recognized is insurance as the important single force. is premium premiums us, our note single insurance enhance is for approximate driven sustained premium grown decrease X% the in in It in primarily single to compared drives

slightly from from Our prior XX-month quarter XXXX. and quarter, second XX.X% of the in decreased of XX.X% increased the persistency in XX.X% the rate

last increase rate was quarter, this of the quarter an in annualized XX.X% from persistency second in by of XXXX. refinance second in first quarter the driven primarily quarterly annualized of and quarter persistency lower the year-over-year XXXX The quarterly XX.X% same XXXX, increase activity year. the as in to Our compared XX.X% quarter is

half current second XXXX, our of While expected refinance during improve the to remain we of is pace expected also to the persistency activity. levels persistency below long-term expect given

second were increase primarily due to quarter the the in premium yield the in Slide on the XXXX same million our due to primarily over XXXX compared of net million due XXXX, in of and trend to quarter in Net our profit quarter a XX, a of prior quarters. to increase the second the in mortgage year linked-quarter now past commission our increased provision second earned first the in to to of Moving decrease and premium $XXX.X loss yield. The in quarter that business. premiums insurance to shows title is quarter premiums XXXX. five The million earned accrued the adjustment is of X% in-force $XXX.X quarter compared premiums. the $XXX.X to earned in decline X% continued basis

points in-force basis the direct points points XXXX. quarter and XX.X to quarter of basis yield this basis second Our in compared XX.X XX.X was last quarter premium

we our today's volume The due yield volume, the our mix of As portfolio. noted to including in several to changes in-force and pricing insurance difference prior written of and rates portfolio to to to new and cancellations to prepayments magnitude portfolio premium in relative future business previous and quarters, expect depend and associated of continue continue credit yield on timing new of vintages. the mix profile decline will factors relative in

yield maximizing million XXXX. were quarter $XX.X the most regard for Homegenius the XX% and yields Our same compared XXXX basis to basis X.X X.X a in premium driven points yield the the attractive value returns. representing a increase our increase basis our in insurance-linked second points direct and net quarter, the quarter of was compared million premium basis of this pricing to insurance-linked year The to single a a points first segment $XX.X due With of premium reduction quarter ago. X.X quarter new remain on was our economic points million was transaction, cancellations by first X.X for basis two of impact points from ago. second $XX.X to XXXX. increase a on quarter basis April business, from and note to we revenues points generating of quarter of executed was notes the on increase which X.X this quarter XXXX, year an recent in focused in of XXXX, The XX% prior compared risk-adjusted

of operating homegenius pre-tax $X.X the expenses to loss of operating first million of XXXX. for second a $X.X million loss reported allocated XXXX, was $X.X the quarter for quarter corporate Our before and compared million quarter second of of a XXXX loss the for

our The adjusted second quarter XXXX G. to profit of million million homegenius year-over-year. be compared was and primarily orders year-over-year of of revenue, $XX.X quarter second in for quarter XXXX, of the increase second XXXX. on Closed are to reported a first of second driver second saw the of XX,XXX revenue driven $X.X key to homegenius can for Our for Exhibit business, the the a million the title our quarter in revenue XXXX items was XX% quarter by which which title for of approximately increase the quarter compared increased total XX% A XXXX $X.X business, these approximately reconciliation of XXXX. in found growth in within gross

estate real expect orders, Investor Homegenius title see total XX as slide our growth well to in continued closed segment and Day, on as in revenue. recent noted our discussed As we as

our are our far, will guidance we towards We pleased and with offer to progress. these targets progress continue and thus

same prior were the offset of partially from Our investment years flow. and duration from $XX balances quarter by At investment end, unchanged the X.X quarter to cash was investment prior year, underwriting from which lower down the prior the quarter investment yields, approximately due additional X% quarter million income this quarter. was X% portfolio from

Moving and now provision to credit loss our quality.

$XX.X first noted $XXX on compared decrease of for the second million, quarter for provision the slide in was quarter in of and of a XX, million quarter mortgage $X.X XXXX to As the XXXX second XXXX. losses the million

to XXXX, of driven slide result prior slide approximately XXXX, development quarter was of reduction includes to development second first second in quarter XX,XXX favorable defaults from claim of trends As primarily of positive This XXXX. XXXX by the we December X,XXX quarter of rate on estimated. second the in million. XX,XXX more noted XXXX, a a XX in defaults positive assumptions basis our for point the losses default XX, on provision cures the to $XX than originally XXXX a compared new in XX, April shown quarter as in on as approximately defaults for on and approximately had Also, the

the rate at second defaults new X.X% XXXX. of for on maintained also assumption claim We quarter default to the

As of XX, reported to the be defaults new as shown forbearance on XX% defaults second XXXX. slide XX, in all quarter approximately a and COVID-related in of were XX% program June approximately of

remember on economic as We note period prior governmental equity the to contributed have on and default information least have to XXXX, program levels defaulted help at expected as decision disruption. unemployment, on intended such reserve defaults. through to the appreciation, and webcast rate metrics, people forbearance is These in I XX% estimate a they ongoing our available programs, time, factor, valuation estimate. an least proprietary assumptions cure first our claim positive over are own indexed-based XX. upon about This our to the will that, additional forbearance reported ultimate to loans as have and X% be external continued temporary best favorable economic trends, information mechanics for outcomes our to indicators estimated also economic for programs to of optimistic homes we industry share at as is related claim defaults, rate models. and maintain are XX% the homeowners' certain home well new keep includes of at the reduce It is have to at to based improving are XX% homeowners, to forbearance their important using for slide what our cautiously in which XX% both support claim along to default price lower equity, homeowners' with these make our loans and us over the that overall

which the claim availability at extend into noted in under not will we several may options estimate of years. development. circumstances broad reserve for pandemic, is claim beginning The the of and payments, for to normal line of mortgage forbearance our As XXXX, an loss be realized serve XXXX future the time continuing

XX% during such current noted the third payments, any paid, As of current sheet reduced XXXX quarter Claim quarterly absolute from new defaults new XX. in to the the reduce level quarter reserve on slide continue of Approximately reserves quarter this as which XX% of new dollar the or foreclosure on cured improvements when balance and XXXX moratorium. substantially as of the from been second have of may had to defaults of balance potentially claim ongoing would despite grow, rate. our our end second year the the default

XXX% included showed decline new in of approximately a cumulative and of default further update and respectively. XX% As had a ratio rates for night's defaults, the continued release resulted an increased quarter which statistics cure-to-new July in in July. exceed Last default our primary operating XX% to Cure inventory. activity further to XXXX that for quarter new end, cure July second month earnings third defaults

to in expenses. first increase as share-based compensation second due of to of an the XXXX items, expense primarily primarily expense, $X.X as expense in were is impairments. increase primarily Other incentive was decrease other increase The operating million second increase to XXXX, in and turning compared to including first quarter quarter the expenses incentive non-operating well lease-related the compensation expenses the to million related in second ceding $XX.X $XX.X compensation XXXX to related expenses quarter million The other other of and and a the in in quarter XXXX. prior operating as of to operating compared the increase incentive the in commissions. – in compared year $XX.X a items, non-operating million Now in of in quarter

taxes. to now Moving

second Our overall effective tax quarter rate the for XXXX of was XX.X%.

effective remains XXXX with XX%. statutory annualized rate consistent the for discrete items tax generally before rate Our of

and over Now available XX% the moving PMIERs billion excess which to was assets of minimum of Radian cushion. Guaranty's available required $X.X liquidity. a quarter, second the represents capital as assets, end

Guaranty's insurance-linked June XXXX, L. of have other press XX, we and distributing $X.X minimum Radian arrangements notes PMIERs requirements by reduced required reinsurance, by third-party on Exhibit reinsurance billion as both As noted asset through release risk

required XX, PMIERs multiplier, cushion was million this the XX%. benefit attributable XXXX. applicable by required a approximately the COVID-XX-related basis, to on the delinquencies reduces minimum X.X reported assets net which On in of includes the reduction minimum $XXX at Our assets June benefit

continue We expect minimum of Guaranty's for COVID-XX multiplier application loans. that the required defaulted reduce assets this to Radian will

impact However, to loans multiplier to the Radian is over eligible for the continue of as time, diminish Guaranty future to diminishes. expected the population

$X this in has in billion assets. required minimum approximate thus reminder, far it benefit in a peaked when XXXX, the reduction quarter As an second resulted of

dividends cash June not parent by of with Radian of liquidity, company subsidiaries sharing impact on of maintained agreements any long-established, we level XXXX. the an from as subsidiaries. insurers with of and credit reduces its flows is million the billion placed company Group million tax are certainty XX, the available dividend funded as includes that to cash provides XXXX, Total predictability the This note $X.X interest and enhanced us company's It of of regulator-approved by flows of through restrictions $XXX.X was expense, most and facility which and parent the mortgage For in June important liquidity. $XXX GSEs. XX,

of during pandemic. in the program suspended to in response noted, March had this XXXX which As million previously March been beginning temporarily share our resumed year, we repurchase $XXX COVID-XX

shares. we an purchased through XXXX average of second which million end During this price or X.X repurchased July authorization, XXXX, year-to-date a million repurchase $XX.XX, purchased XX.X quarter XXXX the shares, at and million total $XXX of X.X under have of we share of of we the shares, million As in approximately of began July, August

expires As repurchase we of XX this $XX million which approximately July of XX, of have August authorization, on remaining year.

Our remains in current effect XXbX-X today. program

to dividend We returned to of pay shareholders approximately during second the as to during the the through a pandemic, XXXX, dividends have continued common quarter. $XX throughout including million also quarter we shareholders

announced, to by and As share we $X.XX our of during year. of repurchase XX% increased after-tax this dividend previously operating of per dividend the quarterly quarter represent for approximately a capital return of share reminder XX% income and second combination of our as payments a The the quarter.

Given the capital support the flexibility I believe strength our by to businesses we at Group, we and well-positioned call to and Rick. at the Radian now provided back turn Radian value that over Guaranty are liquidity our financial shareholders. available will our to deliver

Rick Thornberry

And and Radian PMIERs to increased $X.X available Frank. the that maintained strong we liquidity capital by assets book me grew we highlight question, company you to let excess share billion value position your billion. you Thank Guaranty's with and of a call open for year-over-year holding XX% total per before $X.X

of of We July. seen insurance X.X in shares performance also by second our of shares economy. overall an seeing high-value year-over-year. We wrote and and increased portfolio are in new the repurchased X.X during billion XX% have Homegenius $XX.X the in continued improvement and mortgage We the business credit million high-quality revenue quarter million improvement signs additional

resilience and outstanding to continues success. customers help team demonstrate together continued as work we and ensure to our dedication support our Our

Questions questions. TOP take Now RETURN Answers TO operator, happy and to would be we

Operator

you. Thank Absolutely.

our from from will Instructions] go Credit question-and-answer Harter question now session. Doug [Operator Suisse. And comes the first ahead. We begin Please

Your line is open.

Doug Harter

the into give liquidity and how to could you us quarter hoping a both was position? in given sizing capital more I the third your insight the little second buyback about you're thinking Thanks. quarter and as

Frank Hall

think and returning about to way -- you'll good think we've Sure, manage Doug. very have and very been When I buybacks capital shareholders. the capital about we been prudent This very, recall about Frank. we is our that our

we've of those. with actually sizes repurchase had XXXX of repurchase levels them different different programs So since and had have six all during

occurs end of return million recently good fact. capital million -- it way authorization. anywhere that shareholders. -- think again But excuse after to continue our $XX the we repurchase are our me, million, as to So size repurchase $XXX report to we to in our that roughly have have that at to have fair are of or but programs since I we'll we on believe and July related the ranged $XXX generally repurchase programs. -- say it's It's remaining to current XXXX the a raised provide from authorizations information largest And we'll most as something

Doug Harter

and just guess, you continued could activity, pace that just the to stepped kind of follow-up quarter in clearly you've second the July. the on about -- I the up if talk that into of,

Just, kind how of, pacing and thoughts around that might that continue? kind of

Frank Hall

Sure.

where our and believe we're So repurchased any actually is as -- reflects that before repurchased value. and described not I comfortable the pace think program program value-based range we've a it's repurchase at price price it's within a

typically is guides what that And us. so

the we it's where set combination targets of market to a is. so relative those And pricing where

repurchase average $XX.XX price, in program the instance, repurchased we at so average life, is at we're for share And the price. quarter $XX.XX. And second over the the

Doug Harter

Great. Thank you.

Operator

you. Thank

Our Cullen B. Johnson from go next Please Riley. ahead. question comes from

is open. Your line

Cullen Johnson

questions. for Good my morning. taking Thanks

as maybe that them on catch payments? is to noted they're age more you be some defaulted if forbearance they up borrower can reserve in higher higher a Would think that the carry of cure with sort also time while of has there I the loans offsetting assumptions. likelihood dynamic

Frank Hall

Cullen. The is pardon -- This think, Frank. Sure me. I

it's to we've how good plays that we do of in Your see certainly how because can we try And set wait thus our right? to all to is estimates the reserve that far. is out COVID those something the when the assumptions our but behavior question speculate the difficult levels I think we'll of forbearance incorporate into all factors And and incorporated far landscape thus one. borrower develops. on, what those reserve landscape to programs a current we is are unique But

Cullen Johnson

Thank paid And Great. looking of in little bit looked data claims Okay. there's then at you. release kind higher. the the a July --

the impact not that data? expire, up beginning plans So the or of in the of is dynamic yet forbearance to just some showing

Frank Hall

is, that a cure activity I'm you it's particular we related asked to the question glad event Yes, July and one in had. commutation the and really

about So, commutation. it elevated by particular was XXX of that because

Rick Thornberry

you And Frank I claims think versus mean cures.

Frank Hall

Thank Excuse Claims. you. me.

Rick Thornberry

commutation. elevated claims one of were The because

Cullen Johnson

Okay. there a revenue just Homegenius good last it just the segment, of Great. And looks this then looking one kind on growth like quarter. at

then mentioned potential driven I you in place by kind of message, that title. do front user just platform of And users? what of Is higher of broadly adoption new think much to kind that get being you have mainly there? in the maybe

Rick Thornberry

expanding franchise two that other are And we and our our But about Yes to great related of we give question. which are team think business clients products. our our progress that's in we're quarter-over-quarter strength think to -- to really those seeing Frank the growing we kind numbers, deepening in of MI off strength numbers, on we're smaller factors. I'd June, but is One happy part Day, customers Investor business and adding because is title business lender Homegenius. the service. like the also relationships. the but the our across seeing some with our title are specifically is back talk we to I of winning of we're new the I but growth provided when And yes, across did our of And happy growth relationships credit early we're

enter across business we're of share So that the we as blue-chip we greater relationship once as get add relationship. board, and winning clients a we their clients

combination the pipeline been -- both very customers evolving I've of So so new our has Cullen, a and been new customers very quickly. of and growing too, it's progress pleased with

the consumer existing on that. customers levels to about ultimate got But happy provide through borrower to it's superior and the transaction. we're the service also greater board of really So penetration we once

the we in and see, point yes, very we're and that where orders, feel where a of we it good So orders. title at I'm growth about June view, July to over from happy grew report

we're see of acceleration to of business. continuing the So kind that

Cullen Johnson

Thank That’s you. are Great. Those my helpful. questions.

Rick Thornberry

Thank you.

Operator

you. Thank

ahead. next DeVries from comes Our Please from question Barclays. Mark go

open. is Your line

Mark DeVries

like to in market. any coming so, And in? kind the kind under-indexing on have the that been -- quarter declining growth that's maybe thoughts the what to Yes. I rata more hoping Thanks. of getting actions, I you you that you taking this to kind close a believe inflection have get an I Rick's of comment pro insurance if see a been consecutive addressing of where And second you rata is get was look feel risk if to to you think to force. share on if your in elaborating you're returning share? of the when you're been And pro expect at there? back return to of of in

Rick Thornberry

take is which by I'll by of to a you, is purchase tag this But few in business of driven also share as and is I the force back the Thank higher we've has one remember -- together. contributor that has course year-over-year, been the think noted question Yes. Derek over to of Okay. kind monthly X% I comments, come being strategy persistency in quarters. earnings. book But the through very gone past to Mark. important insurance transition, insurance through really future I'll positive grown our which largely and primary my market that. Derek clearly, will team to driven or

So we though like feel transition that positive relatively portfolio even very it's our a thing. in is flat

-- product, book think extension that lender declined -- about And when greatest XX% about about The is which by that, other risk. declined XX%. our the it's also by year-over-year, has sales positive specifically we has that paid,

at level think singles, book. recognition greater probably kind And singles to on our a singles as off, our higher premium -- actually came of into a we've seen we've so, we've pay of portfolio our as we and accelerated growth transitioned the the monthly worked monthly book benefit which this cycle seen shared to I has as we and whole

good XX% in how can purchased, going It's by a obviously good all, you continue, insurance written driven all as it new was be seen But we've by to little forward. going of refinances our spark is trend tell in refinances recently. So and which trend. a a over

would or we to certainly refinances expected continued of as that, that materially expect likely being through to not historic over growth in And in increase part you normal see participate albeit the and strength fueled remainder this persistency go we as as we so, as market But of I we to is more forward expect forecast. and offering. where think the persistency think refinances the our And I look going kind levels. of would levels norms the to year, are decline that industry increasing our declining year, purchase part next portfolio by MI at of

So, of is in I'd talked, our all all And that we remind not just of equal. -- dynamics about this portfolio. long-term world Derek I growth like our today, all creating value insurance is everyone created the kind in as in value. And focus force in think

high grow about So of low this interest from of construct value how book and recent and and being quality right? the very monthly book construct rate mortgage growth of we So the deliberate is and and transition think the business for a we portfolio how that through I we very well XXXX, we're business in we're with going it like disciplined in our future. being very our positioned

over market it to Derek, turn about just me share. Let to talk

Derek Brummer

Sure.

be terms share, increase would rata throughout probably estimate share. in QX month market terms of an what our of is would say in overall NIW QX found in market our terms each we So of share under pro I but

that you when roughly we're So kind June think and back of rata to of kind portion. to July, pro we get

Right. the We're be relative to in highest Now, of is going see short us. in, where answer where terms for same in we we're the value. the leaning always leaning

in out terms Looking at there the in of, what's economic long-term market. value

found in that quarter we Now it's think more value leaned offered this more certainly opportunities we've capital. been of to segments in I terms where deploy where

in -- about And the X%. risk deployed increase you quarter-over-quarter business at XX%. were we from And think value it's the look about if MI more about a it at I look deployment. up much look value and you if in about XX% capital written XX%. think But capital you up if by So driven as you and NIW we're it's perspective, at future

think of see increase would to were an relative writing QX, we we as that in about QX premium So future we expected about XX%.

value going similar, transparency So think of pricing Historically, to probably and a a the was And value. same kind had want mixes the could you that's our a important market capital to of environment look share. is there kind think you NIW pricing, if about it's very of of when telling current when in you as sense companies. approximation you of That I where were where better everyone value. at be kind saw also the and deployment, get bit was risk proxy future we earnings

Mark DeVries

you Got Thank it.

Derek Brummer

Thank you.

Operator

from your ahead, is comes go Please question George from open. line KBW. next Bose Our

Bose George

just expense the items number the kind mid-XXs back should unusual year? After the first that operating expectation. Actually morning. good of in Hi, for on those the to be expect we half of back

Frank Hall

operating million see. -- When call Frank. comp-related is at the look you'll $XX it previously this Bose, guidance of that quarter and a sort basis, on normalized call the what we is we Yes. given we've a actually adjustments roughly which seasonal that expenses excludes

I is the think for but of is between million expectation for on is million excluding a reasonable on and $XX to accruals those have. elevated $XX quarter general basis. normalized the be still compensation balance us million where items a depending year range a $XX again It our just up $XX a to good million end could

Bose George

Okay.

the That’s for so on million $XX correct. to -- million the combined? the $XX And

Frank Hall

correct. that's Yes

Bose George

the capital think on to that Thanks mind just the and sort well return? back a Great. the keep there when return cadence you is of of just debt-to-capital range then as about buyback -- capital potential going Okay. in discussion the we

Frank Hall

seen There a restricted defensive I that point year high but the years. would did in that most that purposes would is we tell ratio. the And you in at look that us Sure. issuance you few debt-to-capital say, way last That's debt elevated a recent been as really great -- any I question, we by haven't for Bose. our to we hadn't

I we result carry a time. that defensive that business also you extra bit delevers issuance And tell so, of just naturally as that probably But the had. we leverage would a over

time. We of down by expect number whatsoever, our current would we're don't So, levels, mindful but that it. over to restricted see come feel we

Bose George

Okay. Great. Thanks a lot.

Frank Hall

Thank you.

Operator

Thank you.

Mihir go question from from is next BOA. ahead. Our Bhatia Please

is Your line open.

Mihir Bhatia

morning was that impact yesterday, extended I had Good taking and wanted to for I guess, was, you does my question, just questions. the thank have first the you? I which any check moratorium, Hi. eviction on just

Derek Brummer

forbearance have that on moratorium, generally kind if impact have that instance it's of REO, that's September properties material eviction GSEs Yes, out would they're I not extended they've the But in any the in XX. right? for to going If running to an those to us. any terms think and impact of have hold moratorium their going be

Mihir Bhatia

– I percentage in Right. of And because a in there's I low that in the guess homes portfolio? guess such

Derek Brummer

Correct. right. That's exactly

Mihir Bhatia

want across managing I are specific I segments seeing Like to volatility share just in that? we LTV whether should the it in guess maybe you go share just like where I back then the question the to bit. little invest where us help not And coming don't it. How be Got the Okay. trying in is board? the a the understand from? it value. buckets. certain market? about But thinking you you're market you volatility see Is Is specific the market customer FICO market you're where maybe to understand

Derek Brummer

particular what I of pricing. in Yes, think in would terms don't terms volatility that's in I seeing a we're the identify good market question. of

talked away market of we the of not we leader. price market. share transitioning competitive normalized segment since about But lot black the what more box And Rick seeing that our last call we're as that terms right? saw right, be pricing following we why indicated, the is reductions strategy market is from to industry so-called signs a had So move meaningful that a a us in MI movements, quarter is share had that in we'd to environment, the

a I of an we And that's Now could normalized in of adjust a pricing normalized that. a up fair finding and think terms pre-COVID and really when think to kind environment were about have very would value we environment, as like. our in environment and pricing stability in analytical position relative where as about continually think market. you we you more strengths saw market of our much in we terms the capturing overall the in the We say plays we that down

the across some the pricing has the curve. we note market wouldn't would now the return the there of volatility as dimension call variability while And see see it seen a kind adjustments been adjustments. across risk so in and that least that terms you've The I in at normalized of credit aggregate one a we so thing it environment I of in to levels lot wouldn't of, we, segment, pricing market-clearing our call signs stream upon the the what box levels in below say market get entire to the the as and levels currently MI we industry's being the estimate mean of lowest that's MI and I market. we when them particular across based market one see companies industry all the black company observed market so estimate in not in as is levels And across that price production, we pre-COVID. we clearing there

important prices. an market that's types. do we identifying unique that where So part We value million those over loan of clearing find on XX is

most combinations loan, out that all where characteristics at to -- where can is of the looking value. we're level geographies find clearing So and that capture borrower we market

strong that all normalized there's overall business value across written in an of the continue see to see we the where and of really economic very It's kind much you've of see from value an perspective, kind it So that pricing we market opportunity. environment plenty you play. gone being out through and and it's important a point of settling very kind relative

we're but that's see at So deploying we're our the relative everywhere, you and highest where value capital. value kind of

have kind mind market in keep to positive we very strong kind thing and of demographic market that's as housing is a of other The the momentum still pushing well.

say I'd well-positioned. we're overall, So

we're pro-rata share spectrum. returns attractive across credit back I think finding to or the

Mihir Bhatia

internal sizing on there place next will you just Would this how we capital. it buyback, understand. make Thank Maybe of last the one to keep I have? seems because capital we even about, that. in accounting your willing you guess, for you for stuff you want much think view like Got about a want excess PMIERs relatively maybe current to number just and share is on to soon. sure buffers expire just just on it. as you I think one all be one

Frank Hall

you have, the company. forward and is We of at of if in definitely is the for you are at a intended only or sits repurchase some Company that current establish have at included potential of very MI healthy Frank. either sort support our see authorization, in I we the which don't think excess can share or resources sort of we This clear definition Mihir. what holding for that But with quantify actually now. look because, it, for debt quantification use not our holding We Sure, -- cushion the the do businesses, what company look you excess. the PMIER remains maturities right if

businesses But quantify to do But excess of expectation in it not that's not But there. so near-term all into or things holding company. those homegenius cash the a how much we to we just again be material. segment number other So which speak. don't an expect that hold calibrate, how factor we at

Mihir Bhatia

you. Thank Okay.

Frank Hall

Thanks Mihir.

Operator

you. Thank

go Our from Please BTIG. Ryan ahead. comes Gilbert next from question

open. is line Your

Ryan Gilbert

Thanks Hi. everyone.

thinking of your drop single supplement Just for couple the still of around looking in like, cancellations. XX% single force. by just seems premiums force, a premium and through about sequential the are driven follow-ups on insurance It the in I risk me, guess, first

can towards And So further the or that higher, to start in we see still run book we're monthly business? do to bulk think think the premium room cancellations? do of insurance to force inflect through single you you that shift there's

Rick Thornberry

thank is Well, This Yeah. you Rick. Ryan the questions. for

of volatility in wave, of this persistency kind two see of how those around or think going think kind I refinance refinances. relative I in next quarter runs to the while kind to we're we're

kind of of And our it quality very for books acceleration. book so, we or I say what cancellation we that, the that, well seen premium high kind that, think see are the of future. bode is single I interest I of would monthly fundamentally But low wouldn't we've any do end growing with say And rate growing mortgage very of business business. we're that

in had really has through on a rising have right, rate acceleration of from earned single very an would gone positive we've transition otherwise premiums, a risk the that so business environment. been extension And

good. much kind I we've that, of is through think of So which cleared

from capital that we've thing done second and The have capital-intensive return. are is, lower more we've freed and more up products

to transitioned of of and based we a and book business significant XXXX book. advantages, XXXX -- So on representing really share that this monthly

mortgage market. come continuing So adding start by strong it's business, and and like, in a high-quality we because are policies for purchase have fueled refinances increase, of underwriting terms as are insurance. feel see to We've of grow business environment, bit got which monthly the out the insurance the mortgage we strong more homebuyers, strong, this, are we we the starts start of to as down and books value persistency of persistency likely other to by settle to really that tailwinds first-time fundamentals a use portfolio value, a

actually through long-term dynamics has we the terms of where I I growing which we we value So the completely like and can't the earnings. refinance transition until like -- market out But of are very will. is wave value if think the the of do portfolio, good we well positioned kind volatility today. for feel in get us this for you the say future of for sit the future

Ryan Gilbert

liquidity trends company. especially $X and frequently, there's another disconnect seems doesn't of your housing in the really Okay. below over credits with it And second the trading where -- one like disconnect value I seems improving fundamental Great. is because it ask, book business the those occur I the appreciate strong that holding market. like that. then very question a at billion real buyback. between And stock And is on

broadly in hoping -- could of share your about a just capital So, I relative how you're the trading as in seeing thinking just to maybe the was the strategy capital repurchases allocation to relative business? fundamentals return is you're you context where to relative about deployment or discuss shareholders stock

Frank Hall

great is actively a deployment or we capital this decision to capital discuss you Ryan, Yes. around repurchase here. dividend through background apologize, your That's in siren exercise. returning something me. agree observation question. the planning the either there's And the capital But that but decision can I shareholders, Hopefully in right. hear around our Frank. a I is and is would

recent the of stock the relative quarters seen activity where in has the that activity in most in amount here reflected been our it's we've in repurchase that we've trading think program. to I the had repurchase

our yes, would go So through observation, that certainly something we when agree planning. with I and your we contemplate is capital that

Rick Thornberry

I look And that I the the business, would fundamental value in this on monthly the building the in business of the you in of we and MI very just at value business mortgage feel strong Again, forward. our Look, business portfolio how a our think the again, Frank's capital is the performing. insurance of the our the business, the Yes. level. good way terms is going of to at across very do high and of value our back of of today, going business whole structure of business, when this it's about to add mortgage kind intrinsic insurance And and value shift, we positioned there is kind strength Homegenius performance comments. have performing

on of terms the environment right We've our extracting capital. and market extremely focused and been really focused not been grabbing economic share. of this has in managing think in team value, of I value We're disciplined. competitive just not being decreasing for very sake very disciplined kind price been just on

dividends, Homegenius that capital good of on track about out the being plan think we whether the progress couple I'm business I good ago. is making a have excited stories of been we laid capital. months of record a of very management, buybacks, it's deployment And our

this that all -- feel a like sit comment, together, put is great you value I when this we Ryan, there to going back business your I as is So in think today.

going about we forward. capital to of be very as go and we're So, we're to it continue excited good stewards

Ryan Gilbert

Thank appreciate it. Okay. you. I

Rick Thornberry

Thank you.

Operator

this turn would call Rick Thornberry Mr. We final to have to questions I remarks. for at no further over like time. the

Rick Thornberry

team We talking and all as you of interest Thank your to at go in to commitment across pandemic team all forward our through continuing also here the demonstrating continually questions to on questions. a they're the whether and of enjoy and environment, performed see COVID your Radian. Look a for dedication hearing address always we bring want to that you. challenging and And I our level. you your remote has you you environment, continued continued entire Radian speed thank up kind in Radian. very it's thank from for work we environment, forward team, high that our to progress

soon. well to I them, all for and thank look talking to of our forward you care, soon. I be thank Bye. we'll So Board talk and their support Take

Operator

Thank gentlemen. you. for you, And and today's you conference. participating. Thank thank ladies This concludes

You may now disconnect.

Radian (RDN) 4 Aug 212021 Q2 Earnings call transcript