Radian Third-Quarter Specialty Combined Ratio Improves After Inigo

The Tip Desk · November 7, 2026 · 3 min read

Third-quarter revenue rose 106% to $624 million. Net income from continuing operations was $172 million, or $1.28 a share, as Specialty’s combined ratio fell to 80.4% from 97.7% in the second quarter.

Radian Group Inc. (RDN), a global multi-line specialty insurer, reported revenue of $624 million, up 106% year over year, and net income from continuing operations of $172 million, or $1.28 a share, for the quarter ended September 30, 2026, compared with $153 million, or $1.11 a share, a year earlier.

Total revenues were $624 million, up 106% from a year earlier after 93% year-over-year growth in the second quarter, as the company added Inigo, which it acquired on February 2, 2026. Net premiums earned were $548 million. Specialty represented 57% of net premiums earned, up from 53% in the second quarter.

Adjusted pretax operating income was $254 million, versus $206 million a year earlier. Adjusted diluted net operating income per share was $1.44, versus $1.15 a year earlier. Results included $21 million of purchase-accounting adjustments, amortization of acquired intangible assets and acquisition-related expenses tied to Inigo. Return on equity from continuing operations was 15%, and adjusted net operating return on equity was 16%.

The Specialty segment’s combined ratio improved to 80.4% from 97.7% in the second quarter. Specialty reported adjusted pretax operating income of $86 million. Gross premiums written were $310 million, down from $504 million in the second quarter; net premiums earned were $311 million. The provision for losses was $148 million, which the company said reflected a benign catastrophe quarter and included $43 million of favorable reserve development on prior accident years.

The Mortgage segment reported adjusted pretax operating income of $206 million. Its combined ratio was 36.6%, up from 35.8% in the second quarter and 27.0% a year earlier. New insurance written was $14.69 billion, down 5% from a year earlier. Primary mortgage insurance in force reached a record $285.68 billion, up 2% from a year earlier. Mortgage net premiums earned were $237 million and the in-force premium yield remained at 38 basis points. Annualized persistency was 83%, compared with 84% a year earlier. The mortgage provision for losses was $32 million, including $26 million of favorable reserve development on prior-period defaults. The percentage of primary loans in default rose to 2.68% from 2.47% at June 30, 2026.

Chief executive Mike Weinbach said total revenue more than doubled year-over-year with the addition of Inigo and that the strategic rationale for the acquisition was already showing up in results.

Radian repurchased 3.7 million shares for $135 million in the third quarter and another 3.5 million shares for $117 million in October. Year-to-date repurchases totaled $379 million, or 8% of shares outstanding. Following the October purchases, $484 million remained under a $750 million authorization approved in May 2025 and scheduled to expire in December 2027. Available holding-company liquidity was $376 million at September 30, 2026, down from $412 million at June 30. The company fully repaid a $200 million revolving-credit draw made in January 2026 and maintained $500 million of undrawn capacity.

Radian Guaranty distributed $515 million to the holding company in the first nine months of 2026, including a $175 million ordinary dividend in the third quarter. Subject to Pennsylvania Insurance Department approval, the company said Radian Guaranty expects to pay $145 million in ordinary dividends in the fourth quarter, resulting in over $650 million in total ordinary dividends to Radian Group during 2026. PMIERs excess available assets were $1.5 billion.

The Mortgage Conduit wind-down was substantially complete as of September 30. In August the company completed the sale of its Real Estate Services business and entered a definitive agreement to sell its Title business to the same buyer. Remaining held-for-sale net carrying value was $17 million. In October, Inigo’s letter-of-credit facility was amended, with Radian Group as guarantor, increasing commitments from $620 million to $880 million.