Radian Q2 2026 Earnings: Inigo Lifts Revenue as GAAP Profit Declines

Radian Group (NYSE: RDN) reported Q2 2026 revenue of $575 million, up 93% from $299 million a year earlier, while diluted EPS from continuing operations fell to $0.87 from $1.11. The first full quarter of Inigo made Specialty 53% of net premiums earned, but $39 million of purchase-accounting adjustments, intangible amortization and acquisition-related expenses—together with elevated Specialty losses—weighed on GAAP earnings; adjusted diluted net operating EPS increased to $1.14.

Core financial results

The addition of Inigo’s Specialty business drove most of the top-line expansion. Total net premiums earned more than doubled to $504 million, while Mortgage net premiums earned increased by only about 1% to $236 million.

Profit trends were more mixed. GAAP income from continuing operations declined, whereas adjusted pretax operating income was modestly higher, with acquisition-related accounting and expenses accounting for most of the difference between the two pretax measures.

Adjusted measures are non-GAAP and presented on a continuing-operations basis.

Business and segment performance

Mortgage remained Radian’s main earnings contributor, while Specialty became the larger source of net premiums earned. Specialty’s combined ratio was close to 100%, leaving considerably less underwriting margin than Mortgage.

Mortgage

Primary mortgage insurance in force reached a record $284 billion, up 3% year over year. New insurance written increased 14% to $16.3 billion, annualized persistency was 82%, and the in-force portfolio premium yield remained stable at 38 basis points.

The segment recorded a $29 million provision for losses, including $20 million of favorable reserve development related to prior-period defaults. Its combined ratio increased to 35.8% from 30.4% a year earlier. The primary-loan default rate declined sequentially to 2.47% from 2.51%, although it remained above the 2.27% reported at June 30, 2025.

Specialty

Specialty generated $504 million of gross premiums written, comprising $229 million from insurance and $275 million from reinsurance. Because Radian acquired Inigo on February 2, 2026, there is no comparable Specialty segment result for Q2 2025.

The segment’s $169 million loss provision included reserves for expected and potential claims associated with the Middle East conflict, partly offset by $24 million of favorable development on prior accident-year reserves. Its combined ratio rose to 97.7% from 85.3% in the first quarter, making claims development a central factor in future segment profitability.

Inigo expanded premium scale, but losses and acquisition costs reduced GAAP profit

Radian’s revenue and earnings moved in opposite directions because the Inigo acquisition added substantial premium volume while also introducing acquisition accounting, expenses and a much larger loss base. Consolidated loss provisions increased to $195 million from $12 million a year earlier, mainly reflecting the addition of Specialty and its Middle East-related reserves.

The resulting contrast is important: revenue increased 93%, but GAAP pretax income from continuing operations declined approximately 22%. Adjusted pretax operating income still rose about 3%, indicating that the underlying operating contribution was more stable than GAAP earnings, though Specialty’s 97.7% combined ratio limited the profit generated by its expanded premium base.

Profitability, capital and portfolio changes

Book value per share reached $36.00, up 8.5% from $33.18 a year earlier. Available holding-company liquidity was $412 million, up from $391 million at the end of the first quarter but below $784 million a year earlier; Radian also had $425 million of undrawn revolving-credit capacity.

Radian repurchased 2.2 million shares for $76 million and paid $37 million of common dividends during the quarter. It subsequently repurchased another 1.3 million shares for $50 million in July, leaving $686 million under its current repurchase authorization. The company drew $200 million from its revolving credit facility in January, repaid $125 million during the first half and said it expects to repay the borrowing fully during 2026.

Radian Guaranty paid a $200 million ordinary dividend to the holding company during Q2. It had $5.35 billion of available assets under PMIERs and $1.45 billion of excess available assets at quarter-end. Radian Guaranty expects approximately $650 million of total ordinary dividends to the holding company during 2026, subject to regulatory approval.

The portfolio simplification also advanced. Assets held for sale declined to $64 million from $280 million sequentially, while liabilities held for sale fell to $30 million from $219 million. The Mortgage Conduit wind-down was substantially completed, the Real Estate Services sale closed in August, and the Title sale remained subject to closing conditions and regulatory approvals.

Recent insider transactions

The supplied six-month insider data shows 852,454 shares purchased across 22 transactions and 96,716 shares sold across 11 transactions, resulting in net purchases of 755,738 shares. Among the latest records with a disclosed direction and value, one purchase and six sales were reported; these transactions do not by themselves establish insiders’ views on Radian’s outlook.

Risks investors need to watch

• Specialty claims volatility: The segment’s combined ratio reached 97.7%, and its loss provision included reserves tied to the Middle East conflict. Additional claims or reserve changes could materially affect underwriting margins.
• Acquisition costs and comparability: Inigo’s inclusion produced rapid reported growth but also $39 million of acquisition-related accounting and expenses. The absence of a prior-year Specialty comparison makes it harder to separate acquired growth from ongoing business trends.
• Mortgage credit development: The default rate improved sequentially but remained above the prior-year level. Mortgage earnings also benefited from $20 million of favorable prior-period reserve development, which may vary between quarters.
• Capital and liquidity demands: Radian is combining debt repayment, dividends and share repurchases while holding-company liquidity remains below the prior-year level. Planned dividends from Radian Guaranty also require regulatory approval.
• Divestiture execution: The Title transaction still requires customary closing conditions and regulatory approvals, leaving some timing and cost uncertainty around completing the portfolio simplification.

Summary

Radian’s Q2 2026 results show a company operating at a much larger premium scale following the Inigo acquisition, but that growth did not translate into higher GAAP profit. Mortgage continued to provide most of the operating income, while Specialty’s loss provisions and near-100% combined ratio constrained profitability. Future results will depend on Specialty claims development, continued Mortgage credit performance, acquisition-related costs and completion of the remaining divestitures.