RDN - Earnings call transcript Q4 2024

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Operator

Good day, and thank you for standing by. Welcome to the Fourth Quarter 2024 Radian Group Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Dan Kobell, Head of Investor Relations and Capital Management. Please go ahead.

Dan Kobell

Thank you, and welcome to Radian's Fourth Quarter and Year-End 2024 Conference Call.

our contains was results is return and measures equity. issued the diluted section income which and the posted operating that release, press net pretax Investors year, radian.com. This net operating during adjusted on full yesterday of including may press be Radian's certain share today's for financial operating quarter to release discussed Our includes at call, non-GAAP adjusted website per evening adjusted and income, of non-GAAP to release reconciliations may measures all comparable found of press release and in be Exhibit measures description F, in of complete A press our be found GAAP the may G. Exhibit measures these most Executive These Investors you of exhibits hear website. Today, on Pandit, our section the Chief Financial and Officer; Sumita Radian's Officer. from are Chief will Rick Thornberry, the for Insurance. Mortgage portion Q&A of call of President Brummer, is hand on Also Derek Radian the

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

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

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

Richard Thornberry

report pleased morning, excellent for Good I'm us and to another all year and thank Radian. you quarter today. for joining

and capital economic of positions our investment on Insurance the quality portfolio, reflect liquidity our strategic Our Mortgage expenses. focus results strong strength our continue value of ongoing the high-quality our managing to portfolio, and and

year-over-year share income We highlights per value generating and return $XXX on to XXXX. million XX.X%. for by few increased of a delivering Turning net equity book of a X%

of we share year, to $XXX the returned repurchases dividends. and stockholders through capital During

which our high company, $XXX billion. main future reached is insurance Our driver of force, the of all-time an primary mortgage in earnings for

efficiency operational managing focus expense our and We continued recurring structure. significantly our on reducing

Sumita For exceeding more in reduction achieve on paid of the expense positioned initial expenses. our Radian ordinary our provide our will million million XXXX, $XXX operating of $XXX million Guaranty to to rate meaningfully the at dividends are details during targeted Group $XXX total progress. Radian of year, we guidance to a the in start run management year.

liquidity Guaranty of Our and end of Radian strong available capital $XXX overall company of PMIERs for and liquidity positions cushion $X.X a billion remain at holding million with the XXXX.

and We to growing position strong on allow that are also results, customers stockholders. transform returning flexibility risk opportunity into capital focus our financial help and business our pleased to excellent our financial us deliver our value while

terms perspective. the the and of supply homes we remains market, continue an will HPA of constrained, to housing mortgage values which home from In provide existing for support expect

X market has we mortgage benefiting persistency investment from strong and housing in of for the insurance Insurance interest our and terms past forecasts, the the private slightly While the environment we are relatively insurance at force. positive. the flat income experiencing a remains XXXX. I expect in outlook increasing current Mortgage approximately based our it's portfolio our that noting business been also years $XXX in believe billion, worth impact Overall, positive continuing rate our supporting market over industry market on larger

Hill the highly and positioned Finally, industry permanent source insurance the the for by administration, underwriting believe cycles. taxpayers is risk capital promoting through is we FHFA, sustainable through only credit mortgage in The and regarded mortgage well private support of well U.S. homeownership continue affordable, of we GSEs industry market economic be cycles, to new bipartisan legislators. as with the by encouraged which understood the work consistently to continue private as we the front our Capitol on

by strengthened Mortgage role in our before, been important of system. Sumita to the significantly capital framework, dynamic an positions. PMIERs the distribution serve the of our now details the say me heard finance industry allowing pricing you've continuously risk, business financial and has our capital housing As and risk-based Insurance will model cover

Sumita Pandit

Thank $XXX results, and to morning about quarter details all. you, net per provide you or income performance, another I'm pleased reflect our fourth which to additional producing of good Rick, share. $X.XX strong quarter million of diluted

million book $X.XX fourth share income full full year. We earned and the earnings generated net was is of share, $X.XX This $X.XXX quarter dividends on return million X% income GAAP addition per per totaled value for net higher per our growth equity we which per at our book value share. to share diluted reflecting For than dividend year, to operating $XXX stockholder view share. for during year-over-year $XXX of in of the $XX.XX. or diluted quarterly per XXXX, Adjusted the the and a XX.X% $X.XX metric regular

fourth $XX total full repurchased repurchase also of million We of share a for quarter million for the during shares the in year. $XXX

drivers detailed the results. our Turning of now to

We X% in the continued quarter. $XXX to our revenues of during strong $X.X XXXX. compared quarter the generated for year increase total year, revenues to fourth full of full be a Our revenues the in billion and million total revenue

our XX Mortgage details key on our Slides in other as presentation Insurance impacting net factors as well our include premiums XX in-force through portfolio earned.

of year. premiums year, X% in $XXX of million prior and in to generated We net grew force from as the end X% in earned Insurance Mortgage a XXXX. billion quarter the an the high increase year-over-year $XXX primary of for million $XXX Our all-time full

rate XX% the the was our $XX for insurance compared fourth in quarter, quarter billion months a of ago. based quarter high in Contributing fourth in billion written force including $XX.X new of to compared to XX% our remained the year increase fourth XXXX, of in insurance of on the the at NIW force also XX.X% XXXX. The to XX trailing growth existing insurance persistency of an of

our the quarter, of of a force fourth in of end the rate than more of had or mortgage As X/X less. X% insurance

to to the in we, term remain due continue refinancing interest current rates, to and rate less are to near mortgage therefore, likely Given strong. persistency our these policies cancel expect

XX, And in-force the on our for the in-force well. remained premium As XX year remain expected, yield portfolio Mortgage the to throughout expect for Slide stable as yield XXXX we upcoming premium basis generally as shown stable ending at Insurance points.

As income reduce $X.X net net highly redeem shown billion XX, prior the quarter investment $XX was high-quality to of fourth generated well-diversified other decrease income of senior million in investment leverage. our of end consists assets. of We securities $XXX rated Slide million investment on portfolio notes our The of and in financial quarter. from driven in at QX use the cash our and by the

includes of income sale related declined the expense investment million interest Mortgage both approximately quarter-over-quarter. Net $XX $X income in quarter $X mortgage of loans Radian within result, million a held by million to fourth and investment As income Capital. for

to X% grew Excluding for sale, mortgage loans $XXX investment XXXX. in net million held income year-over-year

to quarter. in have was We cash flows the continued benefiting investment in current the X.X% rate reinvest fourth environment, yield, which portfolio our

stockholders' net reflected XXXX. in was at end unrealized investments loss million on the Our the end compared million XXXX of equity of $XXX $XXX at to

expect trends, to would claim is levels. liquidity We hold book per with very share positive these now continued and be flow provide cure our accrete which credit strong with our value over and continue which continue the on $X.XX cash expected back recovery unrealized low related our to us will provision move to will activity position the for losses into time. I and losses, securities to that of remaining equate strong to that to ability to

continued Throughout greater of at have XXXX, previous prior reserves new rates our defaults resulting period expectations, that to established in our cure for than results releases offset defaults.

by to to prior defaults approximately in in year at services seasonal default in new number XX,XXX in-force trends X.XX% defaults Slide our third reflects the inventory continued the increased insurance As for of XX,XXX quarter rate new ending compared shown fourth This the in resulting to from XXXX our to XX, increase default increased quarter. X.XX% portfolio. approximately reported and on slightly expected XXXX. The reported compared a us of year-end portfolio of large seasoning XX,XXX to normal loans,

reported were third addition, of Hurricane In the new the XXX and there reported the areas. for in of fourth new defaults Milton Helene the in in defaults an X,XXX to quarter, associated quarter areas compared increase number approximately approximately same with

hurricane-impacted prior compared declined those Excluding quarter the to fourth in new defaults by areas, X% quarter.

X% the third at which associated higher other recognized Historically, grew requirement within in rates. of quarter. defaults a cured have is in loans past defaulted areas. This PMIERs, the disasters provides to capital In and natural quarter lower FEMA-designated cures total the addition, number storms also with fourth for compared performance for

related insured insurance mortgage other physical Although weather from by damage loss generally damage, the does events from protection against insurance natural claims, [indiscernible] disasters. of primary losses property protects severe it hurricanes or or not mortgage resulting portion provide a caused or the including parties

key equity, which continue defaults recent significant New embedded favorable trends. has driver a of to credit been contain

Mortgage million incurred for positive the remained and shown quarter benefit this fully X% as period losses same Insurance offset Slide provision We was for for development $XX defaults of a loss $X.X amount defaults throughout ratio reserve the was our net The of year. recorded on was by loss Our million, quarter which low this XXXX. prior in new full on XX.

new curing claim portion the new historically prior compared initial defaults higher reduction quarters. the and reduced our roll experience for XX, hurricanes X and rates. trends as assumptions quarter the and exhibited X.X% years. have a the been curing default-to-claim-rate to at to maintained approximately quarters, fourth defaults from within Slide The related defaults and fourth consistent the our to in our in continued similar prior trends natural We with typical expectations. Cure to trends in strong periods the quarter positive quarter default on disasters, exceeding assumption rates accounted reported within favorably reflects and seasonal initial compared defaults we XX% of recent with cured cure shown X% which as As for in to other quarters of XX% well in very periods, historical X that have cure fourth meaningfully rate

roll in as We assumption for quarters our future to circumstances evaluate will initial defaults-to-claim evolve. rates continue

lines. year. operating full adjusted quarter, the revenues for for All $X fourth period year, a business XX% in pretax line XXXX. Moving fourth other the to our million $XXX in in in the prior compared were the Other was and $XX our categories same loss to Other in million the Total quarter increase million The with All

other our expenses. to Turning

business million totaled with the for our related work rightsizing footprint the prior that office these the lease-related post-COVID included restructure to for continued the overall remaining to quarter $X million to operating million, to Homegenius other we $XX increase expenses expenses our totaled $XX our of which in quarter. related fourth related recognized impairments third million the million software, Fourth was $X internal operating to as quarter, business operating $XX our year-over-year. primarily an expenses assets environment. guidance of have For line X% reduction use million compared $XX and in impairments, our and of to than quarter, Other the an

full year, the $XXX expenses For totaled with in XXXX. line million, other operating

Not and including year have XXXX reduced our from $XX of million services cost approximately other impairments, operating XX% levels. we by full our XXXX combined or expenses

communicated, we that For XXXX, run are positioned as we last the to expenses previously implement began to operating reduction achieve year. rate in

in to to to expected our are expenses, reduce million. reductions XXXX operating compared As $XX $XX by these million expenses XXXX

to remains related liquidity strong. our provided expected our capital beginning At the $XXX Radian guidance pay position available and financial to Guaranty's to company. actions. from Radian to we Moving $XXX strategic million Guaranty that XXXX, million we holding of

for $X.X maintaining dividends Group, million quarter that PMIERs guidance of are million we $XXX billion. and We in exceeded ordinary fourth a pleased cushion including $XXX while stable paid the that in Radian to XXXX,

paid dividends Radian As Radian the will be Radian unassigned to within XX, continue funds highlighted and Guaranty. statutory on by Guaranty earnings ongoing Slide from driven Group to

Moving to our holding company, Radian Group.

we of the paid average of X an repurchased a million quarter, stock our total at for we common $XX.XX. $XX For of shares cost the million dividend million In a of common capital fourth stock of and in returned $XXX the for price dividend have we of $XXX repurchases our year, share of and million the of in a quarter. to In million shareholders. paid form total $XXX XXXX, million quarterly $XX returned repurchased

million $XXX current authorization, our year-end share of had remaining June repurchase expires XX, XXXX. XXXX, which we As on

repurchase quarter's attractive repurchase to in past and provides As recent years, track we an record demonstrated this share believe excess our that our activity by capital. deploy option

holding liquidity available $XXX million Our was at end company the of XXXX.

facility with $XXX credit have us providing also significant undrawn an financial flexibility. of million with capacity borrowing We

rating we performance ratings and January capital an received to And our Group, strong position, both credit for outlook. I financial back now for outstanding a stable a strength finally, rating Radian financial Rick. Fitch will A from reflecting to on in Radian upgrade BBB turn call the Guaranty over and with

Richard Thornberry

Thank you, Sumita.

Radian. to moment take the announcement open I to recent we questions, at Before leadership a call address want your a to

Chief President experienced of countless in XX Pandit, Derek After extremely of will know to and of our Derek retires. In member and Together years our Sumita and role of and distinguished months. this understanding our Mortgage of has you President Financial business. key leader retiring has been team, his Officer executive for the our years team, over Financial at a Insurance Officer, coming Radian, at expanded strong will seamless over a the with July contributions Brummer, for Insurance Derek her Radian, the of leadership a year. passionate as be and our business, a are all Radian, will talented Derek grateful Mortgage with who we Chief proven years. Sumita assume transition highly experienced X on be Sumita work when

company the and positions. as continue to for capital as our of results Our flexibility well and our of balance liquidity and strength resiliency the XXXX reflect

flows We Insurance position and investment operating policyholders large continue allow of our and and strength to Mortgage in-force from portfolios value expect us the stockholders. from cash our to generated customers, and to delivering earnings a

And happy to recognize work outstanding the they thank our do your we questions. to Radian be experienced team finally, now, at day. And take want dedicated operator, for would and and every I

Operator

Terry [Operator comes our Instructions] from And first question of Ma Barclays.

Terry Ma

you Maybe modestly curious The with larger is for estimated quarter rate season, as year-over-year. just flat quite was starting expect Pretty fourth bias kind meaningfully credit that of and I'm the default kind in the vintages up actually impact still that your hurricane default would the Do of higher in of just ex more the good. rate some kind rate of going XXXX. what of Q-over-Q much default credit. forward? outlook and kind just

Derek Brummer

This is Derek.

default seasonal of terms moving think, I of expect in in is vintages kind terms to think you'd of through, I see rate, those typical, impact. what

vintages and in in I terms we kind QX impact of to perhaps would moving We're see QX. of expect getting So positive probably, think, seasonal those peak the near through.

expect I in default that would so X%. And something changes unless environment, see macroeconomic to rate, the the sub

that see economy. up, wouldn't could move dislocation significant I up, you move the some So but see barring in a

Sumita Pandit

And in would areas, quarter-over-quarter. And remarks. by about that also defaults X% the I highlight declined that new we prepared I excluding hurricane our think just mentioned

Terry Ma

Yes. That's what on from? vintages activity Got it. any kind you kind of I more the it, cure can give may the have color but within And came missed helpful. quarter, of or detail that

Derek Brummer

In most whether it's vintages you're claims, activity, different kind of missed the strong rates I the terms at of seen where accident we've in cure origination that of board. But I look pretty at terms terms mean cure buckets, been of vintages, all looking in payment the really, whether probably think across cures. have pending you accident the of recent it probably

Operator

comes from And Harter our of question UBS. next Doug

Douglas Harter

still that little you that quarter. -- little the a assumed impact correctly hear claim -- the get a detail in Is rate to that bit? hoping down the you of rate of did hurricanes assumed I the took ex Just more on the claim kind it you

Sumita Pandit

the for Thanks Doug. question, Yes.

X.X% quarter, new did split was reserving defaults a see impact not areas roll our I really the we all process given reserves. in that have to hurricane material the our actually defaults. the just we the the not fact applied did We to this think on new rate that

go we to blended to And a rate separated. roll is applied So see and you the but as that's forward, our defaults. all that, monitor continue will not is X.X% that we amount

Douglas Harter

can the the kind clarification enter default? or characteristics if Anything change seeing the loans that of that And the into appreciate that. wondering there. I you're we read in then vintage of any

Derek Brummer

not any seeing Derek. No, material is we're changes. This

of in closely. we equity which thing has just track new is other well terms up held something defaults. That's the The embedded

you So terms And we the portfolio, default look changes. portfolio. embedded no equity coming the new characteristics, the in to in embedded similar equity when in of at then default at credit look default pretty significant when the

Richard Thornberry

I on XX, Slide And at the we get provide look when right? rate analysis that did that you cure

Sumita Pandit

Slide XX.

Richard Thornberry

sorry. XX, Slide

that through point in very each kind view. cure consistency very, vintage strong see from migrating be terms continues of of actually a to of You in and

fairly but very are things So remaining consistent looking to positive. Derek's point,

Operator

question next Bose Our KBW. from of George comes

Bose George

Sumita your first question new Derek, leverage. your congratulations good on Actually, is in retirement. just and, luck role on have the I

came do leverage you think about When uses you redemption. Or do further? of Or Your needs stays it further? you quite bit to take feel debt obviously down capital, down want down think the here? a you do with leverage like it to trend

Sumita Pandit

your you for Thanks, Bose, thank and remarks. kind

and bring our that really stated have past use a we leverage, towards it miss that to of that in decision ratings We excess course, we holding the what do transition. of some We our was working Derek our down I is the with lot, in On not are trigger. question to your company. did think liquidity will, leverage on

a was are it where are know, leverage not stage, delever. we improved business And ratings. At we precedent we our So does you this to condition maintain perspective. from organically think our as good a at

if look a come and fact a So goes set million. And it this back down projections, that we as next down again, again, does that paid our target. $XXX to spot years. that the about not net comfortable over few at number quarters you debt we've by us for the That's year, But today.

$XXX shareholders. in to about repurchases share dividends and returned also million We our

that we it really were So capital was a working broader plan towards.

Bose George

Okay. that. follow then actually, Great. just And to on up

I roughly good capital reserve released at return Should total that post the you think of it? divvy, capital a guess being $XXX kind way Rick to have year. this that return, contingency release. to terms guys looking commented buybacks? tie Is about the In about of million

Sumita Pandit

as of out a how what's indication direct much coming of our to we I GI. Again, think really an we return as percentage of don't shareholders given capital have would

capital, very we in been have we have terms Last our how managed at look $XXX million. disciplined. trajectory of we back paid you If year,

really, you healthy $XXX amount If our at million. it GI was, group, number to look the a from again, of came that really

forward, that dividends going dividend QX was expect capacity. Slide of we we from as of that give about XX, unassigned It think I think million. how the funds workings number, driven take you $XXX continue out which we our is the balance GI. to will On really by we

I dividends strong be think can much of very, it amount as without slide that to that a position. high you we $XXX at could also we look how highlight pay Again, Pennsylvania million. very maximum as RGI like if as from approval, group on

effectively of that to that We to group returning will from our continue to capital back GI manage capital and shareholders. then, course, our

We've typically or to a we percentage how from quarter. our have and will we see of But with amount consistency are give stayed continued can away target from record that a we of dividending clear that that up shareholders. RGI track back to which much do the it you capital every

Operator

Our of Markets. RBC next question from comes Heleniak Scott Capital

Scott Heleniak

bit, little Rick, goes the And updated touched seemed MI last which this reform, going time. thing a private for you But thoughts might I private the those GSE you just just we push -- then any a administration, how think that to just saw new it on there? same like the how any industry, of they're MI market? impact think

Richard Thornberry

topic. for Yes, active Scott, dialogue Certainly, all an the around this question. thanks particular

I appreciate So the question.

look a we cycles. number as crisis through at multiple this think existed forward, in we've of actually, administrations, of even different the the before through financial after kind and market path I

housing that really about we play think as finance of solutions. hasn't the from creating play we importance the in housing system, importance responsible, kind today I changed look we affordable towards think role and our we of the kind and sustainable, that and relationship

going think As to continue I to GSE reform, do dialogue. it relates it's get to

tax specifically be the issues to law to view. it's this Congress housing tax to legislation. year, change with, advance going our unlikely expiration is all given think or law has finance that the would Congress related that I comprehensive other deal That

not more amount have through. It think possible, And a not financial impacts to of I in thought and that FHFA, kind of form and MI. of of conservatorship Trump There's tremendous the and there's is like the charter some administration, involved. likely path, administrative for that'll be certainly without change previous recap near a may legislation term. potential release requirements housing the towards it be which from would kind works complexity

that's to think thing an remember. important I

impediments, and hurdles right, significant both complexity. But have overcome to and paths

of look So administration, I forward to a the housing responsible be dialogue going to in certainly, think sustainable working finance new out And we there. and the to the with way. is secure future

our positioned central we're the of [indiscernible] continue safety support mission a core of low and ensuring GSE. soundness partner think aligns I which well the be financing, with to downpayment to GSEs. We for overall well

private in I the about side, private great think industry housing front by one in of taken we think of prepared affordability source really sits think low on important happen is front and only by both remarks, I to the capital of When U.S. my that that the think We're the taxpayers, a issue. aisle. of is as Republicans, mortgage it's I So access in a loans. is of of providing credit economy MI the well the to sides you a capital the Democrat's permanent supported private lot downpayment From said of key really our issue. the people address. on catalysts a for need And opportunities I taxpayers

challenge income homeownership borrowers think we're downpayments. and the I address of first-time focused helping think to through to low-to-moderate a them dream helping and But at for how key lower homebuyers on attain

we're think So I well positioned.

of great relationships to have pursue better decision kind we whole the of kind housing forward to new look think continuing with and framework help of kind find this administration of to throughout kind ways market. we I make working the to a

Scott Heleniak

really That's Homegenius. then gears, just detail. on Great. just helpful switching And

and done was it You where like that. kind restructuring most with the There talked you're the like feel impairment you happy restructuring now? is an of feel there you of quarter. about in is Do

but help one related see segment. some would anything you and Homegenius XXXX? probably assuming in that either I'm reductions And any is it's margins just on the for -- do of improvement the to other other, But of those? to expect the expense

Richard Thornberry

question. for thanks Scott, that Yes,

answer we've kind this working question been to to described, in with your think, back the of in which I we get the think team kind discussed, you really this is I probably year as positioned exactly May. year, of it think as is I earlier

I grow And which business, the to and Other One X really businesses our continue comprise we things. continued have expand. conduit think is are that All different to

year issuer a As expect be this regular to last you know, year. we and did X securitizations

estate real remain contributor maintain a terms kind its cycle, that our last services Our a kind of business point -- kind for we back including to profitable significant really the got where but of of business significantly of in title reset impact. look any business to And throughout year. path towards financial profitability, reduction

And which that estate, we've for real sorry, then platform, should our business, and towards earlier kind evaluating year, -- this earlier as tech I Homegenius our the platform, discussions continue I reduced work options that say, been is last strategic really partnerships goal we after expenses. having and of brokerage and to year having mentioned significantly

into -- improve that think to progress year. make see those roll to do we continue XXXX, we go Other I All we So expect and into the as as

Sumita Pandit

maybe if other can I And Yes. a of thoughts on quick couple just that. add

few X,XXX quarters. We've make made, So I that used Today, difficult X,XXX or would say, closer XX% amount and if in about last to the head context, give of, hard FTEs. to about had count I to decisions over to changes are the XXXX, just reduction. pretty, some you say, would we've we some our think you just a FTEs be

to you that of from of I about an down XX% prepared sure OpEx sales. out look mention needed. enterprise-wide we And continue taken are on take did that expenses our expenses an I on And we will we've in at on I basis, to as the enterprise-wide that XXXX my be cost that plus very basis, think on out think I focused continue think levels think I making remarks path. that if we

from FTE we point. this at perspective, I we think are feel rightsized an

are and expense vendors, continue for our that very savings our on to towards in outside targets. expense in we focused think I we services looking making work sure our

our was QX, OpEx in number for -- think about I next million. year $XX think I

we've what think I guided...

Richard Thornberry

Excluding the...

Sumita Pandit

Excluding right. that's the impairment,

impairment we the Excluding you through. that walked

$XX I few think think million that know, the between you next I quarters. the there's number rate an because as variation for some quarters, run

a of OpEx think But very taking are we I number making run are our out on we for rate an estimate. focused good overall sure is that $XX enterprise. again, expenses million like

Operator

Our Bhatia of of from Mihir next Bank question comes America.

Mihir Bhatia

to all And you well on for wanted Firstly, role the new you, wishing the the the Derek. in help Thanks over congratulations for just retirement, years. echo Sumita.

my yield my But question, total did the new to Is yield was of just portfolio in money questions, just terms yield? first you want the clarify. X.X%? the portfolio or Sumita, say that

Sumita Pandit

Yes.

for your was all, portfolio thanks of a kind Mihir for remarks. lot, that First Yes, overall X.X% our yield.

quarters. I our And think level. few the that's new the for X.XX% X.XX% at is level to money last in somewhere relatively rate been that

Mihir Bhatia

that outlook, So mentioned I And in XXXX. sense. makes then you think for the NIW a little higher

high enjoying are also persistency. You

insurance an it perspective? digits together, So mid-single? to we you in XXXX? in-force growth planning looking are Are from at maybe get what Could putting for high-single those

Richard Thornberry

a I year, historically I'd depending increases wouldn't think moderate that market, think like increases think, in expect fairly mortgage not fairly I little next the purchase provided predictable. historically, large great I market I year-over-year; say the thing upon as give forward this we the and into modest -- we solid we've bit. of purchase to going think But I and guidance, rates market is combination But they're as you and that about much a answer, one business, the Mihir.

to earnings going originate overall economic that market team value economic selective about I value And value purchase of good embeds continuing is strong the have we done us forward the we Derek think a in really build through of high for portfolio, of good being and a kind view. really with relatively of the along point think for highly which from portfolio. combination persistency our job an us, MI

market we and kind that's where today, feel the evolving. positioned. we're So of is balanced well it's the good way very Persistency,

Mihir Bhatia

it. point on quality about of Maybe that Got the just originations.

you more like One I 'XX. performance? of standards XXXX like, and seeing there's like-for-like originations is like-for-like question credit versus investors had compare if and you you what in purchase is, in between But your -- had the were in understand a the standards you for in are mortgage XXXX data hear things just origination questions early or call 'XX or guess any And well, you mix it, lot in mean, some that. from weakened XXXX, versus, in to originations portfolio I shift we policies my deterioration

Derek Brummer

Yes, you score, just Derek. dimensions, was it's No, I relative whether when at the credit this higher look XXXX LTV. book credit you And we haven't. look quality credit XXXX think if at is to quality, different

other thing performance is seen early outperformed XXXX The we've I a origination vintage perspective, think just XXXX. from on, the

look where played some at and I you the expect exceeding from a risk and think very pricing of a at think, characteristic I that also negative were you kind XXXX had, little appreciation characteristics, pretty was a all positive and they've from a when or we look then really vintages, just risky price expectations perspective. But of of of when home I bit think in of You'd X/X that credit those out terms similarly them. kind

Mihir Bhatia

not even Or that else driving even you're that? Like because And there delinquencies. something is home also seeing appreciation? is of just -- price because you think

Derek Brummer

appreciation's part think I price it. home of a

their manufacturing employment solid So credit quality good, generally high-quality borrowers. right? just think very underwriting, then of picture, nature and just I the is characteristics, quality

So things. I think combination of a it's

of So I a those those and number been pretty steady for think of now. together, you put years have all

any to any seen with Really So of respect that. those characteristics. seen we've deterioration haven't

Mihir Bhatia

a lot Radian business what are there just Any that on And scale in you Capital you're switching XXXX? about of cadence, looking that issuance to do it. the for to for How to there color like 'XX? Is second. opportunity thinking Got just then up? Mortgage

Richard Thornberry

worked -- We for issuance say thanks the But kind forward provided customer I growing from conduit Mortgage one will We've in that so had of actually want to we Yes, guidance on our on we've any to question. of receptivity customers. pace. great not well. the of our It's that our Mihir, great finds of continue had business. receptivity terms focus It's of base. Insurance part that who be actually the very customers we've our

from issuance business regularity focus of private we And on the securitization GSEs. loans so and is investors, view, a to point increasing the that but our year our also this sell of growing

expect securitization But that to a on of So kind that of view, continue we we increase of as kind of come to get and from the pace. business. our kind -- into but would point to grow year more

would demand and safe a I sound really But perspective, needs we're just and and addressing say, risk business overall, perspective hearing on scaling positive, feedback customers. the been a kind from a of and from receptivity in perspective that very a from and way we're focused

Mihir Bhatia

material, more last overall? Radian right, And we on just seeing that actually. disclosures become does When follow-up Like me business? around for start to little business that a bit do topic, when one that

Richard Thornberry

Really an question, that's excellent and a for -- hard answer. can't me to question I

Mihir Bhatia

term? like X years, X talking short years? term, medium we Are

Richard Thornberry

opportunity a measurable Yes. do it's choices way the I have would timing answer medium-term medium-term want to of you I say it, for impact. this provide of to me. of is would would is given on we guidance kind a kind I think But I the do it kind specific gave say but don't

Operator

further showing Thank questions I'd at Rick back remarks. turn to you. this Thornberry it like for closing to I'm time. no

Richard Thornberry

excellent capital lower joining million in $XXX book leverage. debt, the today. stockholders and another to for was us reduced as our grew returned by where Radian and all, said, you, our XXXX for has value, million Sumita year insurance $XXX in we thank and Well, force resulting

business positive opportunities value achieve market dream and ownership. continue opportunities as help market we the as the in in of our of the of housing to terms forward our look the on home people of and continue XXXX outlook we to have and portfolio, kind the responsibly well for We to a

for forward to person. That's got. to look either Take or all care. we meet And virtually soon opportunities we find everybody Thank as we questions. in seeing your you

Operator

today's and call. concludes Thank This participating, you may for you conference now disconnect.

Radian (RDN) 6 Feb 252024 Q4 Earnings call transcript