Radian Sets Record for New Insurance Written

Radian Group reported an 18% uptick in net income as it set a company record for the highest quarterly volume of flow mortgage insurance.

The Philadelphia-based mortgage insurer said net income in the third quarter totaled $82.8 million versus $70.1 million a year ago. Earnings per share were 37 cents.

Radian wrote $15.7 billion in new mortgage insurance business, setting a record. In the third quarter of 2015, new insurance written was $11.2 billion.

Refinances accounted for 22% of the total new insurance written during the quarter, up from 13% a year ago.

"We set a record for Radian in the third quarter, writing the highest volume of new flow mortgage insurance business ever in our 40-year history, adding to our existing high-quality insurance-in-force book," Radian Chief Executive S.A. Ibrahim said in a news release.

"Our company continued to benefit from positive credit trends, including another decline in our total number of delinquent loans, high quarterly cure rates and continued outstanding performance from our newest books of mortgage insurance business."

Additionally, net premiums earned rose 5% year over year to $238.1 million. That increase helped total revenue increase 8% to $320.9 million, also on higher net gains on investments.

Expenses expanded 7% to $193.9 million, reflecting higher costs associated with technology systems upgrades, severance charges and incentive compensation.

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Originations PMI Refinance
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