Segment Reporting (Tables)

6 Months Ended

Jun. 30, 2026

Schedule of Reconciliation of Revenue from Segment to Consolidated

The tables below present details on the operating results for our Mortgage segment and our Specialty segment, including a disaggregation of significant segment expenses as monitored by Radian’s chief operating decision maker.


Segment operating results and other information

	Three Months Ended June 30, 2026									Six Months Ended June 30, 2026
($ in thousands)	Mortgage			Specialty			Total			Mortgage			Specialty (1)			Total
Net premiums earned	$	236,349		$	267,363		$	503,712		$	474,526		$	431,714		$	906,240
Net investment income (2)		55,614			24,902			80,516			108,941			41,801			150,742
Other income		1,258			1,082			2,340			2,921			2,409			5,330
Total revenues		293,221			293,347			586,568			586,388			475,924			1,062,312
Less: expenses
Provision for losses		29,418			169,239			198,657			53,694			255,507			309,201
Amortization of deferred policy acquisition costs (3)		6,881			52,937			59,818			13,780			82,002			95,782
Other operating expenses (4)
Salaries and share-based employee expenses		37,221			15,927			53,148			67,232			25,964			93,196
Other non-employee operating expenses		17,931			22,510			40,441			35,060			36,954			72,014
Depreciation expense		1,803			605			2,408			3,605			1,009			4,614
Ceding commissions (3)		(8,608	)		—			(8,608	)		(16,827	)		—			(16,827	)
Total other operating expenses		48,347			39,042			87,389			89,070			63,927			152,997
Interest expense		754			3,533			4,287			1,224			5,823			7,047
Adjusted pretax operating income	$	207,821		$	28,596			236,417		$	428,620		$	68,665			497,285

Reconciling items
Corporate adjusted pretax operating income (loss)
Corporate net investment income								3,930									13,152
Corporate other operating expenses								(16,723	)								(27,422	)
Corporate interest expense (5)								(27,775	)								(55,359	)
Net gains (losses) on financial instruments and foreign exchange								(5,789	)								(14,668	)
Amortization and impairment of other acquired intangible assets								(5,896	)								(9,805	)
Other purchase accounting adjustments, net (6)								(26,726	)								(50,056	)
Acquisition-related expenses and other non-operating items (7)								(6,721	)								(28,747	)
Pretax income from continuing operations							$	150,717								$	324,380

Key segment ratios
Loss Ratio		12.4	%		63.3	%					11.3	%		59.2	%
Expense Ratio		23.4	%		34.4	%					21.7	%		33.8	%
Combined Ratio		35.8	%		97.7	%					33.0	%		93.0	%

Segment assets as of period end										$	6,504,057		$	4,021,418

(1)

Results are for the five-month period subsequent to the Closing Date.

(2)

For the three and six months ended June 30, 2026, the Mortgage segment includes $10 million and $20 million, respectively, related to the Intercompany Note that is reported as interest expense in Corporate category and eliminated in consolidation.

(3)

Ceding commissions represent fees paid by reinsurers to offset certain costs incurred by the primary insurer. We report such commissions based on the nature of the underlying costs. For the Specialty segment, ceding commissions primarily relate to reimbursement of acquisition costs and are reported in amortization of deferred policy acquisition costs. For the Mortgage segment, ceding commissions primarily relate to reimbursement of operating expenses and are reported primarily in other operating expenses.

(4)

For the three and six months ended June 30, 2026, the Mortgage segment includes $31 million and $51 million, respectively, of allocated holding company operating expenses, representing estimated time spent directly supporting the Mortgage business.

(5)

For the three and six months ended June 30, 2026, includes $10 million and $20 million, respectively, related to the Intercompany Note that is reported as net investment income in the Mortgage segment and eliminated in consolidation.

(6)

For the three and six months ended June 30, 2026, primarily includes $64 million and $118 million, respectively, of net VOBA asset and liability amortization, partially offset by $37 million and $68 million, respectively, of reversal of policy acquisition costs that are reflected in segment results but eliminated under purchase accounting on a consolidated basis.

(7)

Relates to acquisition-related expenses, which are included in other operating expenses on the condensed consolidated statement of operations.


Segment operating results and other information

	Three Months Ended June 30, 2025			Six Months Ended June 30, 2025
($ in thousands)	Mortgage			Mortgage
Net premiums earned	$	233,526		$	467,570
Net investment income		53,289			101,740
Other income		1,502			3,284
Total revenues		288,317			572,594
Less: expenses
Provision for losses		11,954			27,294
Amortization of deferred policy acquisition costs		7,205			13,593
Other operating expenses (1)
Salaries and share-based employee expenses		42,012			74,648
Other non-employee operating expenses		15,071			30,486
Depreciation expense		1,873			3,747
Ceding commissions		(7,075	)		(13,797	)
Total other operating expenses		51,881			95,084
Interest expense		877			1,302
Adjusted pretax operating income	$	216,400		$	435,321

Reconciling items
Corporate adjusted pretax operating income (loss)
Corporate net investment income		8,383			20,942
Corporate other operating expenses		(17,297	)		(31,618	)
Corporate interest expense		(16,551	)		(32,615	)
Net gains (losses) on financial instruments and foreign exchange		1,851			(150	)
Acquisition-related expenses and other non-operating items		—			(384	)
Pretax income from continuing operations	$	192,786		$	391,496

Key segment ratios
Loss Ratio		5.1	%		5.8	%
Expense Ratio		25.3	%		23.2	%
Combined Ratio		30.4	%		29.0	%

Segment assets as of period end				$	6,612,438

(1)

For the three and six months ended June 30, 2025, includes $32 million and $59 million, respectively, of allocated holding company operating expenses, representing estimated time spent directly supporting the Mortgage business.