Radian Group projects 10% growth in mortgage insurance for 2025

In its third-quarter 2024 earnings call, Radian Group projected around 10% growth in the mortgage insurance (MI) market for 2025 compared to 2024, attributing this outlook to the favorable interest rate environment that boosts investment portfolio returns and supports a strong persistency rate, which strengthens its insurance in force.

Radian reported $13.5 billion in new insurance written in Q3, slightly down from $13.9 billion in Q2 2024. The trailing 12-month persistency rate rose to 84.4%, up from 83.6% a year ago, underscoring the retention of their policies. Approximately 70% of Radian’s insurance in force carries mortgage rates of 6% or less, reducing the likelihood of policy cancellations due to refinancing in the current high-rate climate.

Financially, Radian’s CFO, Sumita Pandit, discussed a $10 million software impairment tied to assets in the “All Other” segment, which the company views as a one-time charge. Radian anticipates revenues in this segment to range between $35 million and $40 million, slightly down due to a $450 million debt repayment that impacted liquidity. Pandit emphasized that this revenue outlook aligns with Radian’s strategy to streamline its operations and financial positioning.