| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 84 | 9.1x | 17.8x | Top tier | |
Growth | 86 | 41.9% | 7.1% | Top tier | |
Quality | 68 | — | — | Top tier | |
Safety | 59 | — | — | Around median | |
Capital Return | 79 | 2.86% | 2.12% | Top tier | |
Momentum | 67 | 3.8% | 2.9% | Top tier | |
Sentiment | 36 | 3 | 3 | Bottom tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Radian Group operates through two core insurance businesses: U.S. mortgage insurance and specialty insurance and reinsurance through Inigo. The mortgage business generates premiums from an insurance-in-force portfolio that reached a record $284 billion in Q2 FY2026, while Inigo broadens premium sources across 17 specialty insurance lines. In parallel, the company is streamlining its portfolio; it sold its real estate services business to PLACE and signed an agreement to sell its title business, after exiting the mortgage conduit business earlier in FY2026.
In Q2 FY2026, revenue reached $575.0 million, up 93% year over year, while net income was $115.9 million and earnings per share were $0.85, according to EDGAR data. Net premiums earned rose 116% to $504 million, while net investment income reached $75 million, up 21% year over year. The company recorded a GAAP return on equity of 10% and an adjusted operating return of 13%, with adjusted operating earnings per share of $1.14.
Inigo materially changed Radian's business mix in its first full quarter within the group; the specialty insurance segment accounted for approximately 50% of total revenue and 53% of net premiums earned in Q2 FY2026. The segment generated $267 million in net premiums earned, but recorded a loss provision of $169 million and a combined ratio of 98% after accounting for reserves related to developments in the Middle East. By contrast, the mortgage business continued to generate capital, with $16.3 billion of new insurance written, up 14% year over year.
The analyst consensus rates RDN a “Buy,” with an average price target of $41, a high of $47, and a low of $35. The average target is effectively at the upper end of the 52-week range of $31.50 to $41.05, while the wide spread between the $35 and $47 targets reveals uncertainty regarding the impact of Inigo and losses related to the Middle East. The positive consensus is balanced by the downgrade published on August 6, 2026, after Q2 FY2026 results fell short of expectations.
Figures in the text are as of 2026-08-30; the live price is shown at the top of the page.
Radian completed the acquisition of Inigo and integrated it, transforming from a company focused on U.S. mortgage insurance into a multiline insurer with a global specialty business. In Q2 FY2026, the specialty insurance segment accounted for approximately 50% of revenue and 53% of net premiums earned. The company also sold its real estate services business to PLACE and signed an agreement to sell its title business as part of its focus on the mortgage and specialty insurance businesses.
New insurance written reached $16.3 billion, up 14% year over year, and insurance in force reached a record $284 billion. New defaults declined 9% from the previous quarter to approximately 12,400, and cures exceeded defaults, reducing the portfolio default rate to 2.47%. Improved cure activity also resulted in $20 million of favorable development in reserves for prior defaults, while the segment's operating expenses declined 7% year over year.
The specialty insurance segment recorded a total loss provision of $169 million in Q2 FY2026. Management explained that approximately $30 million was related to expected and potential claims and an adjustment to inflation assumptions due to developments in the Middle East. These items raised the segment's combined ratio to 98%, compared with a level that generally would have been in the mid-to-high 80s without them.
Automated analysis for informational purposes only — not investment advice.
Management expects premiums earned in the second half of FY2026 to increase by approximately 20% over the first half due to the seasonality of revenue recognition. At the same time, it believes that a combined ratio in the low 90s better reflects the current market environment following pricing declines and intensifying competition. The company emphasizes that it will prioritize profitability and pricing adequacy across Inigo's 17 lines, rather than pursuing a specific premium growth target.
The company raised its expectation for distributions from Radian Guaranty to the holding company to at least $650 million during FY2026, of which $340 million was paid in the first half. Holding-company liquidity reached $412 million at the end of Q2 FY2026, after repaying $75 million of the credit facility, with the remaining $75 million balance expected to be repaid during the same year. Share repurchases also reached $176 million from the beginning of the year through the date of the call, and management expects to end the year near the upper end of the $200 to $250 million range.
