Radian’s Strategic Pivot Gains Momentum with Key Acquisition and Strong Fundamentals

Radian Group is executing a significant strategic evolution, moving beyond its core identity as a U.S. mortgage insurer to establish itself as a diversified global specialty insurance provider. This transformation is being propelled by a landmark regulatory approval and robust quarterly financial performance.

Demonstrating confidence in its financial health and strategic direction, Radian continues to prioritize capital return to its investors. The company distributed a quarterly dividend of $0.255 per share on December 9. Furthermore, an active share repurchase program saw Radian buy back approximately 13.5 million of its own shares in the first half of 2025. These actions underscore management's belief in the intrinsic value of the company.

A Transformative Acquisition Clears Final Hurdle

A pivotal development in Radian's strategic shift occurred on December 10, 2025, when the company secured all necessary regulatory clearances for its acquisition of the specialty insurer Inigo Limited. The transaction is now anticipated to close in February 2026. This move is central to Radian's ambition of combining its financial strength with specialized underwriting expertise on a global scale, marking a definitive step away from a purely domestic mortgage insurance focus.

Should investors sell immediately? Or is it worth buying Radian?

Third-Quarter 2025 Financial Highlights

Radian's operational strength was evident in its third-quarter 2025 results, which surpassed analyst expectations for profitability. Key financial metrics from the period include:

• Adjusted operating income reached $1.15 per share.
• Revenue for the quarter was reported at $303.19 million, coming in slightly below forecasts.
• Earned net premiums totaled $237 million.
• The managed primary mortgage insurance portfolio grew to $281 billion.
• Book value per share increased to $34.34.
• The adjusted return on equity stood at a solid 13.9%.

Forward-Looking Strategy and Financial Projections

Looking ahead, Radian has provided guidance for the fourth quarter of 2025, forecasting earnings per share of $1.05 on expected revenue of $310.36 million. The strategic focus on diversification is set to continue, with further capital reinforcement planned for 2026. The company's subsidiary, Radian Guaranty, is expected to distribute a minimum of $600 million in dividends, which will bolster the parent company's capital position following the integration of Inigo. This planned capital infusion highlights the long-term growth strategy underpinning Radian's transformation.