Radian posts record mortgage insurance written for 2016


Private mortgage insurer Radian Group recorded net income for the quarter ended Dec. 31, 2016 of $61.1 million, or $0.27 per diluted share, down from $74.5 million, or $0.32 per diluted share, for the quarter ended Dec. 31, 2015.

This quarter’s results included a net loss on investments and other financial instruments of $38.8 million, compared to $13.4 million for the same quarter last year.

However, the company’s adjusted diluted net operating income per share of $0.41 still beat capital consensus by $0.01.

Despite the drop in net income, Radian’s CEO S.A. Ibrahim is still positive on the company’s results, “Our strong fourth quarter performance contributed to a solid 2016 for Radian,” said Ibrahim. “In 2016, we successfully grew book value by 11%, improved our capital structure and achieved our targeted expense goals, while setting new records for writing our highest volume of high-quality and profitable flow MI business in Radian’s history.”

Radian’s new mortgage insurance written grew to $50.5 billion for the full year 2016, compared to $41.4 billion for the prior year. Broken up, new mortgage insurance written hit $13.9 billion for the quarter, $15.7 billion in the third quarter of 2016 and $9.1 billion in the prior year quarter.

In addition, new mortgage insurance written for the full year 2016 represented record volume written on a flow basis for the company, and an increase of 22% compared to the NIW written for the full year 2015.

Radian’s earnings report comes shortly after news that the Department of Housing and Urban Development announced it suspended the reduction of Mortgage Insurance Premiums on FHA loans. 

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