As discussed in Note 1, in September 2025 Radian Group’s board of directors approved a plan to divest our Mortgage Conduit, Title and Real Estate Services businesses. We expect that we will complete our plan to divest or otherwise exit our Mortgage Conduit, Title and Real Estate businesses by the end of the third quarter of 2026.

We have reclassified the assets and liabilities associated with these businesses as held for sale and reflected their results as discontinued operations in the Company’s condensed consolidated financial statements, effective beginning with the quarter ended September 30, 2025. To conform to the current presentation, we have reflected the results of these businesses as discontinued operations for all prior periods presented in our condensed consolidated financial statements. No general corporate overhead or interest expense was allocated to discontinued operations. The Company expects to dispose of these businesses at or above their current carrying value and thus no impairment has been recognized.

The assets and liabilities associated with the discontinued operations have been segregated in the condensed consolidated balance sheets. The following table summarizes the major components of the Mortgage Conduit, Title and Real Estate Services assets and liabilities held for sale on the condensed consolidated balance sheets for the periods presented.


Assets and liabilities held for sale

(In thousands)	March 31, 2026		December 31, 2025
Assets held for sale
Investments
Fixed maturities available for sale—at fair value	$	6,514	$	6,489
Residential mortgage loans held for sale—at fair value (1)		193,887		340,734
Short-term investments—at fair value		28,538		57,791
Total investments		228,939		405,014
Cash		7,364		20,597
Restricted cash		—		86
Accrued investment income		1,870		3,068
Premiums and other receivables		2,245		5,412
Reinsurance recoverables		1,253		2,743
Other assets		38,389		37,348
Total assets held for sale	$	280,060	$	474,268

Liabilities held for sale
Liabilities
Reserve for losses and LAE	$	4,816	$	6,874
Short-term borrowings (1)		183,858		324,226
Other liabilities		30,559		32,718
Total liabilities held for sale	$	219,233	$	363,818

(1)

Radian Mortgage Capital has entered into the Master Repurchase Agreements, which are collateralized borrowing facilities used to finance the acquisition of residential mortgage loans and related mortgage loan assets. As of March 31, 2026, Radian Group had separate Parent Guarantees outstanding to guaranty the obligations under each of Radian Mortgage Capital’s two remaining Master Repurchase Agreements. The combined maximum borrowing amount under the remaining Master Repurchase Agreements is $900 million, of which $184 million was outstanding as of March 31, 2026.

The income (loss) from discontinued operations, net of tax, consisted of the following components for the periods indicated.


Income (loss) from discontinued operations, net of tax
	Three Months Ended March 31,

(In thousands)	2026			2025
Revenues
Net premiums earned	$	5,037		$	2,634
Services revenue		13,656			11,943
Net investment income		5,091			7,564
Net gains (losses) on financial instruments and foreign exchange		1,409			1,278
Income (loss) on consolidated VIEs		—			428
Other income (loss)		1,685			(568	)
Total revenues		26,878			23,279

Expenses
Provision for losses		209			(173	)
Cost of services		10,152			8,673
Other operating expenses		20,155			19,039
Interest expense		3,613			6,010
Total expenses		34,129			33,549

Pretax income (loss) from discontinued operations		(7,251	)		(10,270	)
Income tax provision (benefit)		(1,878	)		(2,738	)
Income (loss) from discontinued operations, net of tax	$	(5,373	)	$	(7,532	)