RDN Q2 Revenues Top Estimates on Higher Premiums, Investment Income

Radian Group Inc. RDN reported second-quarter 2026 adjusted operating income of $1.14 per share, which missed the Zacks Consensus Estimate by 17.4%. The bottom line improved 2.7% year over year.

Operating revenues increased 86.2% year over year to $581 million, driven by higher premiums earned following the Inigo acquisition and net investment income. The top line surpassed the Zacks Consensus Estimate by 2.3%.

The better-than-expected quarterly results benefited from strong growth in net premiums earned, higher new insurance written, a record level of primary mortgage insurance in force and solid investment income. However, elevated expenses and higher primary loan defaults remained headwinds.

Q2 in Detail

Net premiums earned were $504 million, up 115.7% year over year. Net investment income rose 21.1% year over year to $70 million, supported by higher income from fixed maturities and short-term investment balances.

MI's new insurance written increased 14% year over year to $16.3 billion.

Primary mortgage insurance in force rose 3% year over year to $284 billion, beating the Zacks Consensus Estimate by 1.1%.

Persistency — the percentage of mortgage insurance remaining in force after 12 months — was 82% as of June 30, 2026, up 70 basis points year over year.

As of June 30, 2026, primary delinquent loans represented 2.47% of primary loans in default compared with 2.27% in the prior-year quarter.

Total expenses soared 301.1% year over year to $424.2 million. The expense ratio improved 190 basis points year over year to 23.4%.

RDN’s Financial Update

As of June 30, 2026, Radian reported cash of $119 million, up 114.7% from the 2025-end level.

Total assets increased 31.2% from the 2025-end level to $10.7 billion.

Book value per share increased 8.5% year over year to $36.00. Shareholders' equity rose 0.6% from the 2025-end level to $4.8 billion.

Adjusted net operating return on equity was 12.9%, down 60 basis points year over year.

As of June 30, 2026, Radian Guaranty's available assets under PMIERs totaled $5.3 billion, resulting in excess available assets of $1.5 billion.

RDN’s Capital Deployment & Dividend Update

During the second quarter of 2026, the company repurchased 2.2 million shares of common stock for $76 million.

In the second quarter, Radian paid a quarterly dividend of 25.5 cents per share, totaling approximately $37 million.

RDN’s Zacks Rank

RDN currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Multi-Line Insurers

Prudential Financial, Inc. PRU reported second-quarter 2026 adjusted operating income of $4.08 per share, beating the Zacks Consensus Estimate of $3.47 by 17.6%. The bottom line increased 14% year over year.

Total revenues rose 4.8% to $14.15 billion and matched the consensus estimate. Premiums decreased 1.6% year over year to $6.33 billion. However, policy charges and fee income increased 6.4% to $1.14 billion. Net investment income rose 12% year over year to $5.15 billion, while asset management fees, commissions and other income increased 9.2% year over year to $1.54 billion.

Assurant, Inc. AIZ reported second-quarter 2026 adjusted earnings of $6.41 per share, beating the Zacks Consensus Estimate of $5.16 by 24.2%. The bottom line increased 25.7% year over year. Revenues rose 9.4% to $3.46 billion and surpassed the consensus estimate of $3.40 billion by 1.8%.

Net earned premiums increased 6.9% year over year to $2.77 billion. The figure was higher than our estimate of $2.71 billion. Fees and other income climbed 19.6% year over year to $554.6 million, reflecting continued expansion across the company’s protection and service programs. The figure was higher than our estimate of $500.3 million. Net investment income advanced 10.6% year over year to $142.4 million. The figure was lower than our estimate of $153.1 million. Total segment net earned premiums, fees and other income grew 8.9% to $3.32 billion, supported by gains in both operating segments.

Principal Financial Group, Inc.’s PFG second-quarter 2026 operating earnings of $2.50 per share beat the Zacks Consensus Estimate by 7.3%. The bottom line increased 16% year over year. Revenues rose 6.4% year over year to $3.99 billion, which missed the consensus mark of $4.09 billion by 2.4%.

Total expenses increased 7.6% year over year to $3.41 billion. Benefits, claims and settlement expenses rose 8.3% to $1.99 billion, while operating expenses increased 8.1% to $1.40 billion. Non-GAAP operating earnings climbed 12% to $547 million. Excluding significant variances, operating earnings advanced 13% to $528.7 million. Net income attributable to PFG declined 1% to $403.4 million.

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