Radian Expects $145 Million Distribution and Buys Back $379 Million of Shares in 2026
Key Facts
Radian Group expects its subsidiary Radian Guaranty to pay an ordinary dividend of $145 million in the fourth quarter of 2026, subject to approval by the Pennsylvania Insurance Department, according to its third-quarter earnings statement. The company said the distribution would bring total ordinary dividends from the subsidiary to the parent to more than $650 million during 2026. The move is part of capital flows from the insurance company to the group as Radian continues to repurchase shares. Year-to-date share purchases totaled $379 million, equivalent to 8% of shares outstanding. The statement did not announce an increase in the buyback authorization; the purchases were made under an existing authorization.
Share purchases included $135 million in the third quarter, followed by an additional $117 million in October, according to Radian's statement. The board approved the $750 million authorization used for these transactions in May 2025. After the October purchases, the company had authorization to repurchase up to $484 million in shares. The authorization is due to expire in December 2027. These figures show the amount executed and remaining under the authorization, while $379 million remains the total purchases completed since the start of the year.
The expected distributions from Radian Guaranty differ from the dividends Radian Group paid directly to its shareholders. The parent paid an ordinary cash dividend of $0.255 per share in the third quarter, totaling $34 million. Net income from continuing operations was $172 million, or $1.28 per diluted share, in the third quarter of 2026. The statement compared that with net income of $153 million, or $1.11 per diluted share, in the third quarter of 2025. Adjusted operating net income was also $1.44 per diluted share, with a return on equity from continuing operations of 15% and an adjusted operating return on equity of 16%.
In its insurance operations, Radian said primary mortgage insurance in force reached a record $286 billion in the third quarter. The Specialty segment accounted for about 57% of net premiums earned during the period, while the company's segments combined recorded a loss and expense ratio of 61%. The company said Specialty's performance benefited from a relatively quiet quarter for catastrophe losses. The loss provision was $148 million and included favorable reserve development of $43 million for prior accident years. These indicators put the insurance results and business mix in context as the company continues to return capital.
Radian Guaranty reported that its available assets under PMIERs requirements totaled $5.3 billion on September 30, 2026, including $1.5 billion in excess available assets. On the same date, the parent company's available liquidity was $376 million. Radian Group also retained $500 million of undrawn capacity under an unsecured revolving credit facility. In its Inigo business, the company said the letter of credit facility supporting Funds at Lloyd's requirements was amended and extended in October. Commitments under the facility rose from $620 million to $880 million, with improved pricing, according to the statement.
In the market, Radian shares, listed under the ticker RDN, closed at $36.56 on November 4, 2026. The company said it would discuss its third-quarter results on a webcast call on Thursday, November 5, 2026, at 9:00 a.m. U.S. Eastern time. The call follows the earnings announcement, which included the expected subsidiary distribution and the year's completed buyback figures. The $145 million payment remains subject to approval by the Pennsylvania Insurance Department. Share purchases, meanwhile, are based on the existing authorization approved by the board in May 2025.