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RDN Radian

Participants
John Damian Senior Vice President of Investor Relations
Rick Thornberry Chief Executive Officer
Frank Hall Senior Executive Vice President and Chief Financial Officer
Derek Brummer President of Radian Mortgage
Mark DeVries Barclays
Doug Harter Credit Suisse
Mihir Bhatia Bank of America
Randy Binner B. Riley
Bose George KBW
Ryan Gilbert BTIG
Phil Stefano Deutsche Bank
Call transcript
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Operator

Welcome to the Radian's First Quarter 2021 Earnings Call. My name is Jenny [ph]. I'll be your operator for today's call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. that is note recorded. Please Instructions] this being conference [Operator to the Senior I turn over John Relations. will now Investor call Damian, of Vice President Mr. begin. may you Damian,

John Damian

Thank conference quarter you, Radian's and XXXX to welcome call. first

adjusted operating during Radian's share, adjusted pretax our on A certain measures per net press financial press issued equity F G evening and will non-GAAP www.radian.com. GAAP of measures, is and complete these release This which return operating diluted net section operating in discussed and Our to and to Investor website income adjusted of results be reconciliation real which yesterday EBITDA. the and release, of today's on posted our the adjusted website. found quarter exhibits section for press income, may the call was including estate contains at the description release be includes Investors

technical is for that our I Due portion Q&A estate dividing hand Chief the GAAP Officer. margin Brummer, for you issues addition, and measure, EBITDA segment. during This that Radian's you from all of ask is call. Mortgage. our sound will by Chief would Hall, on Frank EBITDA Officer adjusted of or President may speakers Also any adjusted Radian to call quality morning, hear environment, the current remote. by the real Derek of are excuse Rick calculated total real estate the estate Thornberry, non-GAAP related please arise Executive the In Financial revenue real

this which actual call to that These projections forward-looking like risks to current and subject remind assumptions we results materially. that statements and expectations, would made on statements. you Before include differ cause uncertainties begin, during estimates, comments to may will are are based I

the SEC. are reports risk XX-K on regarding and also with review the our website. our statements For statements included our in release These factors filed please Form and cautionary forward-looking subsequent the earnings included these in risks, discussion of XXXX available

like Now I turn to would over the call to Rick.

Rick Thornberry

you Thank for Radian. and your Thank for you, interest us today all joining good John, morning. in and

unprecedented positive pandemic continued by and favorable the the portfolio. the of signs as as momentum XXXX, position our were credit encouraged While trends financial we markets of the in details will continues shortly. overall of well the Frank housing discuss within the environment economy improvement our in the

per $X.XX share few the a Let income net first $XXX this share year-over-year. income accounting past and growth net dividends operating diluted Adjusted $X.XX. for first from share reported over achieved the returned that per after to me We or grew X% quarter. by insights book per highlights of stockholders We year. $XXX.X value even the our We share. million million was of we

of the earnings our For value on maximizing our remained we segment, mortgage and the mortgage future insurance portfolio. economic focused

our we portfolio, insurance few in business mortgage pricing portfolio mortgage credit quarter changes of $XX.X March business a attractive quality, quarter, and housing the overall insurance first levels first the and at insurance factors high the I premium discuss important our specifically, our new billion performance wrote insurance force in billion to of at primary was the the $XXX.X high value, the force to landscape, market. in During mortgage want related XXst. insurance our in

economic we last the of coming continued quarter uncertainty. terms noted remained In portfolio we about credit the of performance cautious the as Year into our New

new number in April in quarter of recently performance the XXXX, by were of below credit defaults, levels. portfolio as declining improvement seen of evidenced most April pre-COVID in which During continuing first our we've the

driven new defaults on lowest cure also from a was was decade. highest pandemic we've the in April a XXX% seen And more default in of to activity In that defaults fact one the has homeowners and years. cure a more which we've portfolio continuing than and improving reported ratio the in foreclosure number of basis period moratoriums new great forbearance a in recovery monthly than continued. by program performance continued and support housing was of seen continued us The and April's credit gives our of the improvement XX economic healthy market, the strong the support the economic which environment, path from forward. confidence been government, strong us

and pricing pricing this recovery we insurance to past each of volatility. At of we is is to In believe market. see the likely months, volatility the we a environment volatility. industry adjustments environment. Radian, This insurance to make involving environment. three quarter-to-quarter the environment. emerged we that pricing perspectives driven economic competitive seen and mortgage the and more outlook terms economic We related of be note significant our to to the across from period transition expect economic the over continue the pricing regarding while we've and to returning improved to Overall, consistent believe stable to uncertainty our a It's competitive six landscape important market by and competitive the as more mortgage increased normalized share to companies reflect and expected is

XXXX force, of our new a of the It's earnings year-over-year. driver force, refinances volumes transition past overtime. year-over-year. although primary by of premiums in portfolio the the earned which contribute vintages, XX we our resulted provide by should growth in addition in high to future conditions improving XXst including these XX% represent business purchase total portfolio long-term. is strong expect our X% of as insurance which fueled to market, insurance portfolio and interest the growing and future gone favorable our has returns. a our note of overall Overall, our that has important low home monthly buyers pro and periods for projected macroeconomic value strong the our an With vintages over future value of regards believe of our which persistency, decline market our the significant the composition approximate generate The modest attractive economic tailwinds the portfolio premium home the future our March in-force XXXX earnings with expect rate portfolio to through of the time quality of force continues insurance over high of a in benefit also to rata we We as to historically share the in months with in volume first

over in prices market In from led in market, the across overall housing the price on first we in the Radian housing to quarter. home terms our supply relatively strong country. months an annualized latest positive demand of the of Based the momentum continuing XXXX index saw home continued three limited data increase first the own X% and

and market. rate aligned moderate, of home believe mortgage and housing year strong home an to appreciation for of terms the low and expect price in economy, relatively We underwriting we mortgage and are of sustainable rates healthy demand improving this dynamics values well and interest growth the supply, housing income combination

Looking be ahead, continued in to originations expect projections purchase we in Recent activity support US and gradual to home for improvement mortgage refinances. $X.X and market in government vaccine and reductions sustain estimate progress anticipate now continued approximately and growth trillion. total the housing economy XXXX market

the market origination declining to growing this compared to the year, While of as is is as result purchase the a XXXX for overall around is be our which market consensus positive refinancing smaller volume. There industry. expected

highest loans. revised origination loans compared to the to estimates $XXX But upward second in purchased volume market higher expect would utilized now to insurance the on in slightly billion represent the XXXX. private insurance private be $XXX we're projections Based were as that refinance most be mortgage mortgage than Given these recent still will year and history. lower MI approximately billion which our the likelihood record volume

valuation estate was real in slowdowns million a for Consistent as strategic driven pandemic revenue For REO estate resulting our segment first primarily with for segment, a year-over-year well and from increase periods loss challenging our quarter environment title the despite revenues pandemic the as the environment continued our and real title business businesses. investment estate for were digital quarter recent real XX% operating across our by the $XX.X in our first including total in business.

April transaction access the and to Radian maintained while if billion with million in March billion and $XXX linked profile proforma the our for lowering force volatility XX% through being on risk aggregate capital resulting cycle grew manage mortgage transaction $X.X a the or to at capital strength, In business our and guarantees April of of $X.X fifth in strong total increases focused notes mortgage continue execute of XX%. In key to some of to risk distribution. XXst include reinsurance form liquidity. billion the available our we assets distribute terms $X.X holding insurance we company risk cushion of business. Group executed insurance position subject to ILN Radian We buyers

$X.XX, of dividend dividend. quarterly our over increased prior XX% we've announced, quarterly our we As a increase

addressing pandemic factor the time home The believe infrastructure see to to and softening regulatory and landscape, with accessibility to the government by housing a and pandemic and borrowers supply for regulatory current well. dynamics with partnership Turning $X.X the for actions the homeowners. transitions in onset FHAs are and extension on This recent an to is normalcy burden the the current we interest federal such on at a to focus every industry possible all-in the housing, in continue the CFPB's unprecedented American remain various Congress unified level of we the have encouraged and to economy into helping overall and home to on clear for start that to also delinquent borrower stimulus forbearance various to borrower out especially mortgage as and decision legislative their of for throughout and this support owners the in first premiums jump forbearance on good market the foreseeable is support Administration, from home recent issue their ensure the opportunity affordability ownership played able economic for demand With ease to of mortgages. through to the and relief time. the We're [indiscernible] mortgage support insurance economic impact obstacle COVID given to for and trillion to been respect industry by reduce the and been return major housing clearly also heightened focus This future. on of based period and in housing programs. primary not vaccinations, export our agencies mortgage Rescue administration's become the the alignment strong homes ownership has Plan, continue supply we as GSEs President's is coordination given and and proposal likely of of This in smoothening evident pandemic.

and evolved Finally, it's system learned of fundamentally just and housing another important downturns, improved. system, housing throughout are being business sharing role. fundamental from lessons home is worth noting pandemic now sustainable support we The that fiancé into the be the that past believe the the important component federal private an in model factor federal another unprecedented our a levels plays example housing response, how for finance translated where of for important ownership a are mortgage terms will have

like Now position. our to Frank I for of details call would over turn financial the to

Frank Hall

and $XXX.X in diluted share in quarter of income results of income and operating quarter operating $X.XX income Thank adjusted fourth share evening. the diluted key $X.XX in of compared to quarter you, $X.XX per adjusted net diluted net net was operating $X.XX issued To the share per last turn share and net now diluted XXXX revenue. Adjusted the first XXXX per diluted to Rick income financial of of share We per of quarter $X.XX the good net income as share fourth to compared our the quarter of income of recap per XXXX the in per of everyone. XXXX. million first quarter as diluted or of morning, first for in drivers $X.XX XXXX reported net I'll first XXXX. of our of the GAAP

XXXX written the the earlier, Rick of billion our As compared quarter and to in in quarter fourth insurance mentioned billion of XXXX. $XX.X billion quarter was first $XX.X new $XX.X during the

means relatively the business shift prior continued. quarter quarter XX% decline of quarter XX% were decreased year to XX% policies as to only quarter With total, the relative ago. increase new our monthly the was XX% were year. XXXX to has of and away ago the our an new significantly other for from this billion Direct, from New XX% increase first from premium represented XXXX our recurring written in quarter quarterly quarter same force insurance the for of which XX% policies also the first an was at of written and a first quarter quarter that of refinances intentional insurance from end approximately total a of of premium the the force for quarter written in business XXXX fourth when paid approximately In XX% first of the a insurance our new for single policies year-over-year XX% XX% fourth in for of written? of the new fourth the single lender and year Which insurance $XXX.X flat Primary quarter were X%. total premium new for down borrower paid policies policies insurance in compared insurance billion $XXX.X XXXX. XXXX as in

X% premiums cancellation drives force. loan approximately insurance our single that of single premium driven force our in in a decrease year-over-year in our force approximate was over to prepayments reconciliation business monthly the insurance which which the is force is as year-over-year single single decline in in of to as in is recognized almost persistency has force. which half in of realized the well XXXX, premium the Our premium earned premium activity life positive decline important by second XX% shortened. It primarily policies of majority compared insurance sustained an premium as servicer insurance single enhanced The primary premium returns in representing as insurance is on X% grown total in resulted in note

persistency Our the from of the in prior decreased XX.X% and quarter rate quarter XX.X% in XX-month XXXX. of first XX.X%

increase XX.X% year-over-year from the persistency quarterly The persistency in driven remain long-term mortgage persistency decrease of expected near expected low the continue, in activity first primarily is quarterly slight Our was low trends. is our XX.X% quarter, XXXX. this by quarter continued in and the a a Should fourth XX.X% rate XXXX of from annualized during quarter annualized refinance will environment. current this rate that of rate the level it high below environment term decline

our $XXX.X by million value that $XXX.X estimates both been impact quarter. related the initial trend million show and net our previously first yield. on XX% in $XXX.X of over the reinsurance the increase million business to has million cancellation until driven our notes not earlier impact present a insurance shows reclassification linked in past $XX.X XXXX. to impact and mortgage noted premiums premium changes changes quarter Net five related portfolio adjust primarily XXXX fourth to of fourth title was premiums. collected XXXX quarter monthly the excluding Further insurance Exhibit a $XX.X and were quarter Which by recorded quarter accounting our XXXX. quarter adjustment Slide XX insurance expanded quarters earned for to are policies including in on to the in yield quarter decrease on the line to are premiums Slide Moving presented fourth insurance of decreased the revenue and quarter E. of earned fourth of The estimates linked premiums the But details share million. mortgage compared earned in basis XX, now of net on services XXXX in in the periods million the in of deferred. item $X.X our first

Our of the XX.X force basis yield quarter points in last first points direct compared points to XXXX. in XX.X and XX.X basis premium quarter quarter basis this were

portfolio to premium mix in-force due credit insurance of yield our the vintages. expect decline rates difference written in to prior we to quarters, previous associated new in noted As to relative today's continue and

offset factors in a Over policies. towards monthly yield percentage past depend mix on volume, two of several portfolio the pricing our by yield premium changes the including timing volume was relative and will portfolio quarters, in-force shift of and higher future in business the new and of cancellations continue mix portfolio. magnitude The to and this prepayments largely our the decline mix to of in

quarter X the level associated with in our driver of ongoing and of the in ago. the single basis, and a basis year is cancellations by cancellation yield direct same to basis XXXX points yield points points premium the basis driven the decline X.X compared servicer linked a fourth Our decrease. quarter quarter of primary process X.X On premium reconciliation was of

in the linked the X% XXXX. increase With economic $XX.X at quarter target the focused decrease insurance compared XXXX. were to was new estate between to value material activity of pricing notes. we XXXX for this representing of $XX.X quarter on the which to from excluding attractive Real XXXX generating million on maximizing revenues segment business, a first As million for not and a remain $XX.X million quarter of returns quarter regards of first we XX% risk first fourth of XX% compared to and X% impact the adjusted

real partially was million the and the years of May estate of flow $XX from same we was due $X and estate securities. volume negative prepare quarter EBITDA cash boarding EBITDA purchased real title time finally, of the million years of quarter will yields investment XXXX prior adjusted growing by investment million because revenues from real both due was benefit a in a quarter quarter the COVID-XX down to fourth reported recently quarter of of investments in And estate our of first from businesses take portfolio the will the first impact quarter in environment compared on this XXXX X.X investment flat for XXXX to of underwriting title duration for investment to quarter Our and positive our first to in advantage from duration in to pandemic X% operating offset due At is and to refinance from adjusted in quarter additional new increase income loss The from debt offering. our proceeds year was prior prior continued our of XXXX. strategic shorter notable for for year-over-year business the of of certain decrease to We've in opportunity. adjusted the real and to on compared the our million first this loss $X.X EBITDA X.X reallocation balances demands the that related XXXX recent portfolio lower $X.X businesses. It senior the seen of XXXX investment on customer customer a which down approximately digital our end, and quarter increased quarter the acquisition. of primarily our estate

Moving and now to loss, provision our quality. credit

on noted mortgage for fourth provision losses the million, XXXX. an quarter $XX.X a in of increase to the first As Slide decrease compared was for and of quarter XX, XXXX first in $XX.X million million from $XX.X quarter XXXX of the the

on of approximately XX,XXX to XX,XXX XX,XXX the in quarter compared we in of first quarter first XXXX shown the the XXXX. Slide fourth had XXXX As XX, quarter and approximately of defaults approximately new in

to We In for quarter defaults loss claim the fourth the quarter. XXXX. to addition to to XXXX. new first to We default to reserve compared the in positive assumption million defaults related decreased rate recorded the development new prior provision in X.X% originating first to most on $X.X related the defaults of of XXXX X.X% quarter of

in this certain the X.X%. by the assumption assumption quarter driven economic of indicators. reported claim in default quarter rate in first primarily reduction the recent the new This for was first For continued defaults improvement months XXXX to in of XXXX, was

approximately XX, of XX% XX% COVID-related defaults As shown to program XX, approximately be quarter first as all new of March were XXXX. the in defaults Slide a reported and forbearance on of in

our defaulted loans is homeowners at as forbearance for webcast people we this a COVID for an that insights are the related the economic indicators forbearance the us equity information our economic homes programs to to lower expected have assumptions economic new available disruption. time, important of outcomes keep overall defaulted have what loans homeowners' and homeowners' and This valuation to with appreciation, they which some It these that decision least I'll is program, on shared of These claim our and to on proprietary is temporary cautiously remember note for XX% have at the intended factor our support, make index-based ongoing our our both We along as have contributed are XX. also quarter. programs at upon claim improving and using having equity mechanics rate be Slide positive unemployment, in default XX% reserve over price XX% and to home additional their about levels based of help estimate. least through of loans total this models. reduce environment, loans to includes XX% for forbearance to estimated over metrics such optimistic the governmental to defaults estimate best the external ultimate industry information own

at loss availability mortgage the is claim reserve several realized continuing under As circumstances not to forbearance XXXX, payments development. be will into The the normal of estimate of and may noted serve an our we future extend for broad beginning years. claim which of XXXX the pandemic, timeline for in options

to our change absolute claim balance balance in current default reserve or decrease reserves of on the any older assumption moratorium. claim which substantially rates to quarterly depending As of improvements the cause paid reduce for the to vintages. prior in ultimate period however potential such the during dollar foreclosure Any the may balance reduced default reserve would ongoing the on the assumption potentially payments, been future continue new these grow have increase to future claims rate. may when despite sheet Claim our or changes current to level

defaults XX% are each thoughtful robust the previously, a the XX% approximately all Slide quarter. noted, quarter from the as from reserve new quarter defaults noted information. XXXX XX of as cured had of the process end of evaluated On As second XXXX new third current incorporating and of assumptions and first in quarter

earnings inventory as the release second defaults to to cumulative and relative new the a April an had continued rates increased XX% while primary further new March for cure XXXX April default quarter activity showed Last night's third new for April defaults update was that in number As of included exceed in operating cure our quarter defaults. end, XX% further to defaults, new statistics respectively. down and month of decline XX%

cure to April default Our ratio XXX%. was new

Now as fourth expenses, by The made compensation compared well to items in the to non-operating in including compared quarter XXXX as a million the expenses adjustments $XX.X offset prior first in expenses. operating expense travel of decrease first fourth primarily turning XXXX of of quarter decrease and increase a $X.X consistent to compared were first in in ceding annual $XX.X XXXX and million The partially and XXXX. during operating decrease a of other quarter review operating by the in million the employee decrease year the of partially million in our expenses entertainment share-based commission. XXXX other process quarter annual was current typical quarter expenses in growth to other in to decrease the offset a X% $XX.X compensation related in with is of was quarter

taxes, XXXX to rate was primarily XX.X%. rate effective to quarter tax increase to tax the rate first the effective adjustments for over to statutory in our related of now share-based The compensation. due Moving the first was quarter tax overall book permanent for our

items XX%. tax XXXX effective of before for consistent remains generally statutory the with annualized rate discrete rate Our

liquidity. to capital moving Now and available

which which PMIERs XXXX, a represents $X.X available assets Guaranty available required minimum available first fully As quarter billion March PMIERs of Radian a noted had assets excess billion. of $X.X on $X.X utilized cushion. assets if of XX, of as the our PMIERs XX% resources of consolidated basis Slide on The approximately also our the We've represents billion assets over was of of end XX, required minimum XXXX. excess XX%

transaction, by the L. reinsurance press its quarter, Guaranty's distributing impact risk is through recent credit mortgage Eagle reduced most from of Re company Guaranty both XXXX-X PMIERs of insurance-linked Guaranty's protection third-party $X.X offering. reinsurance XX, As collateralized entered required other XXXX of XX% release note the above this private of have required our assets. Guaranty's XXXX issuance reflected and an notes $X.X obtained risk to ILN through million minimum Radian we Guaranty PMIERs notes insurance-linked by been reinsurance Eagle the ILN have which XX, of minimum on Re the asset The first approximately subsequent in March noted not billion transaction XXXX in as requirements April or $XXX.X Radian into Radian March Radian consideration of arrangements Exhibit in cushion unregistered billion fully in the Radian After April would by fifth results. insurance-linked end to

includes benefit reduction Our reduces related required COVID-XX XXXX. basis, minimum assets reported was on to March minimum cushion the a XX%. this On attributable by $XXX in at assets X.X delinquencies the XX, net the which multiplier applicable the required of benefit approximately million

the COVID-XX materially this of multiplier for expected We Radian application minimum assets Guaranty's continue to defaulted required loans. will reduce

of the Radian However, multiplier future to for population the as to impact Guaranty diminishes. the is expected loans eligible continue to diminish overtime

quarter benefit approximate billion an this XXXX second peaked in minimum reduction in the thus we has reminder, of when As far $X assets. received a required

It cash are grew funded March as of $XXX.X Total most expense, So which company that important as available liquidity liquidity. tax to billion XXXX million we agreements of XXst, managing in remains not of parent light maintained is of Radian of of in a to of flows manner provides capital parent placed the excess This an subsidiaries the flows and XXXX. economic cash recent established, billion mortgage note, in XX, was credit impact the March sharing facility company's $X.X restrictions from long Radian of the us insurers level $X GSEs. reduces predictability subsidiaries. regulator responsible by the certainty on approved, company committed dividend with and enhanced through with the interest includes and dividends its and landscape.

in have to suspended $XX.XX our temporarily which thoughtful, our COVID-XX program XXXX price during average We have XXbX-X a and under new beginning or and capital. the shareholder year uses during of resumed an a been in sources March March of plan. pandemic. $X.X approximately response million We share shares purchased at in of quarter XXX,XXX this the share strong taking We managing history repurchase actions prudent friendly of

million this XXst As quarter we of August which year. remaining the repurchase have $XXX end expires of approximately on authorization XXXX, of first the of

today. Our program effect in current XXbX-X remains

We we have approximately throughout during XXXX also continued quarter. shareholders as of returned the to first pandemic quarter $XX pay dividend the common to to shareholders including during the million

Additionally, this to as prior announced was call.

quarter. $X.XX dividend of strength a our affirmed represent share the the operating our and of Poor's payments increasing Standard of & dividend the after-tax our and return further approximately sign our our combination of forward. stable. have in a quarterly are about Radian revised of to for credit And share have capital our The ratings We financial and repurchase income is path lastly, per to which confidence XX% Fitch of optimism and outlook XX% both

capital strength We deliver and the will our I now objectives financial believe our business our positioned and to call value that back turn shareholders. Rick. to to over well Given flexibility. support we're

Rick Thornberry

Thank Frank. you,

your call the open we Before to questions.

our with last Let to me share per on access and in billion. the response holding highlight of value assets and X% in $X.X the year-over-year strong for share increased available this to performance announced continuing resumed improved of in improvement we PMIERs we We're year quarterly book we our and Guaranty's our you grew billion was Radian outlook seeing the of position credit program by of dividend. that increase economy $X.X maintained capital signs suspended that, the repurchase liquidity the total temporarily overall pandemic portfolio. March, and in company Based

We resiliency. the last demonstrate mortgage model the have business cycle since in our been crisis. financial the to overall market building Importantly, through continues

real across title businesses June to company and launches to who's And together to I about Real our our and commitment hosting and products where innovative this Estate upcoming at look team. of thank Additionally, our highly we including showing each navigate Day importantly, to on a estate challenging as services we proud digital the our we Segment platforms. want more virtual will for XX amazing most entire share very customers, plans our these team have to some forward details our I'm other successfully environment. worked Investor

take to happy be we'll operator, questions. Now

Operator

our question Barclays. DeVries Please Instructions] ahead. from first [Operator Mark from go comes

Mark DeVries

deposit guys shifted lost you about around have have chunkier from of the caused some what quarter amount of business looks out were fair might it some risk might or share [ph] market NIW. from you like to quarter-over-quarter? pieces Can have larger just NIW you talk you there originators talk that certain with about missed share might non-bank away looks there down Could a and in stepped you or on? just that like some It this

Derek Brummer

Thank Derek. This in is that's of relative these really the Mark. industry. pricing movements of drives, you, mystery in days not just Look market really share terms in terms

to peers. company just driven you when up by So pricing insurance they the fact it's mortgage see relative picking share, that lowered generally

optimize the Now pricing we're in the out constantly value. we've about best adjusting cost economic our talked to figuring past,

more typically You market see, I would say minor movements quarter-to-quarter. share

Traditionally, really see on when basis. company went. bid driven been market forward by movements you MI one volume, a bulk quarter-over-quarter Now that's shifting large share a in

this QX another QX one quarter volume to the don't large radar different now. us, bit rates. market a for driver we pricing forward lose [ph] for movements bid movement was our the that QX, and volume see engines called so share when actually we quarter, So What relatively quarter we so us, QX. industry, at loses our you saw to That's in black-box not as look within in bulk have

a generally adjustments have you I'd competitor within of, you within calibrating when a the engine. for you'd Generally driver so would the would typical where broad certain price that have their not is different function movements pricing the done say reductions say see segments. there more I that's have engines And companies price larger

of of are kind being returns see value see a now great very Now certainly, settling price We that still strong from out. said, rates we overall. and where seeing and we're stabilization those perspective what signs

our an of The other about We era volatility. been increased in certainly approach. you in keep strategic mind, price think to thing if

had risk to seek going of some market being will to step be we That raise it's prices we're occurred, be have would you typical you important of So though price. in companies had cycle. price, you're and lose like momentum going when while to that then them because kind quarter-to-quarter. share it's back we off lowering kind because not MI's the said, move the going their leader to But COVID they've some that been to year we're price share quicker of downwards distribution terms that strategically throughout raise

certain below rata industry, kind pro the we you'll long-term quarters. about out distribution generally and it, think you a to in If expect it that would again the above be settle of

to continues be focus value. economic really long-term Our

economic that long-term and being market. to very tailwinds to value. just pricing important keep So clearing calibrate just the too large the optimize mind we're constantly levels a market That economic the trying industry housing in of where our now and defined we extremely think overall said, kind it's strong is right

their rata long-term, generally share down going quarters. So But certain market up be market everyone the long-term. probably is get to pro in will share in and big

Mark DeVries

that Okay, the related On that's share NIW. a down force of and topic, in obviously very part loss quarter-over-quarter helpful was, the was color. in insurance

is At fade. the just you have book relative fact to think kind force part start that the to what guys a the what point run you off of that would to I you've in of expect pulled insurance growth from done ago. back from headwind singles years singles to of another couple your

Rick Thornberry

think appreciate first question Mark, force. this I Rick. off, And in insurance is I on the

I think really over occur favorable last There's seen the what quarters. few recently transition. we've

Sometimes, of actually think accelerated were in we've insurance through past what's changes But this year. the portfolio scene. We've really considered behind process volume. gone highly dramatically might negative. pretty decline as seen terms in force There our be change construct this the refinance of we in happening

year-over-year book decline by and X% as So I we've seen we've highlighted, monthly we've those XX%. business grow by seen of think

year-over-year it's paid to importantly tremendous your transition. a is down book and singles the lender More point, XX%

Now XXXX interest at and those low monthly good during of are high trends, rates, vintages both XXXX quality. growing book Because right? our business

bit earned few expansion in remarks, But of greatest extension It materially. said kind premium back little the singles reduces as of accelerated of revenue singles the a last paid accelerated, which level. years. in portfolio we probably trend. away than of We because We that for and anticipated to acceleration of back my capital. lender an are single the we've acts hedge improves we've said opening actually return. I pull so where kind higher policies as a risk kind returns, and the the earned risk that's obviously As business at as saw our those acceleration is a The refinance and pulled cost on positive which greatest

levels kind that home to high and I expect obviously return strong as strong and us quarter it. forward? upon transition refinances the of be use of there originations we are to think positive housing positions refinances expect market play somewhat settle over term I market, insurance to to of out the I it's refinance We of I in strong that kind I decline. would how as purchase think the longer you value volatile? that going it's medium that think and long-term really well tailwinds volume in still highlighted a that of strong terms in think now somewhat quality, in likely next depending increase. not portfolio, Derek plays of think and the kind So to the And the What as market refinances our slow through to in grow happens term purchase build But to We'll down persistency too see use marketplace. force. persistency

we made on very the value transition feel growing about good of the the we're think for been So the and that's very prospects bullish to portfolio. related I

Mark DeVries

Okay, great. Thank you.

Operator

question Doug from go our Harter Please ahead. Credit from And comes next Suisse.

Doug Harter

was hoping today. might movement you program bit thinking turned March little the back repurchase the in guess you about a around be of and help given more stock sizing detail you opportunistic just how I on could share purchases? I potential us share on of repurchase when the

Frank Hall

Sure, this is Frank.

this So quarter. late did in XXbX-X reinstitute as so in we new you the March a of noted, year, plan

In to approach number only is remained something based for past. previously value activity. are ones the saw that successful that to repurchase in it's and you we've of month similar been that very and use in our the shares So so represents committed of us repurchase the one buyback program

million We August expires authorization that year. XX on remaining have $XXX of in current our this

keep that the future in you and quarter each plans repurchase we'll see also returned. posted authorization with and around what remains what we in activity capital quarter maybe the So the

Doug Harter

purchase in mentioned you remarks, was shares know during prepared your price I average March? what And of the

Frank Hall

$XX.XX.

Doug Harter

Great, thank you.

Operator

of America. Mihir comes ahead. from Bank And from Bhatia Please go question our next

Mihir Bhatia

your with I just salesforce And at to have NIW. below do was wanted question your changes How a I I happy that view First little I to think Mark's in perspective talk about talking report expecting. was can expectations. in want Are lot of bit you and NIW the least guess to wanted at your or would ask, see, $XX a it? peers is or relative what to billion I question own just [ph], you to to about Maybe from you fairly that what your Or back just XQ go that? as pricing something what you look was either it you? to cost

Derek Brummer

this Sure, is Derek.

that, we're So in the that overall goes strong volume market back happy large and of tailwind. a terms certainly with very it's to,

terms at just what others for looking of doing and are value. kind we it is way the of look relative again in So

of shake is, coming accordingly. Which pricing to in you that market is what would of recalibrating where again of is downward. question a to at say increase again of to kind indicated. stabilize of out pricing going kind kind looking to is I What We'll not that expect again and starting I pricing that's The adjusting with and cycle. just it's that that some reaching respect hard perspective. signs kind see and at to level market out always the improved leading probably following stabilization So for We're a point that. going and be the we're and see terms to condition. earlier, downward rata I pricing to everyone's is think price stabilization back economic of point see, had down. from typically time kind you We're It's what you then to the be pro

to terms get and of highest fold in value distribution, in within rata that's As back equilibrium the that cycle. really think into you comes terms our the point finding that of where reach where pricing pro more of with the and that's I we've shifted equilibrium so kind of strategy spots,

rata pro of would a again stabilize I share out market more towards probably long-term. So to to again, that overtime share expect

Mihir Bhatia

it. can about If returns Well helpful. ask that's you. maybe Got I Thank then.

of pricing you still if return sizable relative Is lowering. compared Just a longer ones price is of will? to changed first your So through that, a are the expectation these changes couple one the from that term algorithm quick the mid-teens on business here? health case just

Derek Brummer

is Derek. this Sure,

good so levels. those Now what's target about return

really with of matter we and play. to market the seen indicated, So in that a just is value a relative any respect we strong shift I really as haven't and see overall again value

said looking always we're the as capital putting value market. we've highest to work, of we're So our segment

to find some So as you're see to that going some with we're to trying up, and pricing then doing share market respect some moves spots that. we're constantly down those and calibrating

this are I pricing - have when cycle you're might in I kind been coming downward which if significant pricing, that saw think you're more out that's just volatile at ever quarter. more as can broader competitors again, think doing lead we we're of shifts market what doing of, to calibrating share shifts and

Mihir Bhatia

one me. just last Got I you. Thank it. And from then guess question

rates? book we that way year for expect like reasonable on returns, So mentioned higher is Just economy for to thinking are XXXX average lower done prices improve was if that us of had continues that returns to of or In over think you pricing and half book? am above almost generally pricing was given I XX% the that you terms Rick book in expect, written as this? it When I all XXXX. the your interest was

Rick Thornberry

Derek's that Mihir, we comments should Obviously, volume premium to the and the lead out as to transition. our recovery the business. is levels we're book add economic as I we of down as on well result speak returns look question. attracting to thanks come forward, that, for would pricing earlier higher it this is to that of of see say, slower

gone has transition the look, we as force. through insurance and our in So

almost the certainly has book at almost monthly these of over entire rates business. I our these originated last and levels. of in of pricing business XX months, half, half think really been our book But at So half of the

we Again, we does I reasonable of assumption. the see future outlook. not assumption as to is especially But kind think than this that anticipated, provide a economy. for will we're books better see well those economic probably think as the perform I originally forward speak the here recovery

Mihir Bhatia

you questions. Thank my taking for

Operator

from Randy B. next Binner our comes And go Please ahead. from Riley. question

Randy Binner

away on I persistency so and this that shift bouncing annualized the bit you It pricing all along a and about like is communicate. figure unless I the commentary persistency wanted [ph] ask, maybe bottom. little to one looks from

So expected. that looks better than have I would

you it will, is of it be in be So this going with possible to the down? shift different persistency there stabilizing or so if kind still question in and market than is that is, I that Is right it refi this could And kind model. in volatile offsetting factors is, your you seen the the by what are incredibly housing mean market we've activity strong housing what past? just But now. have of and persistency

continue be acting should in to plan and is we wondering time and there different volatile. kind persistency And way the of be if, just around if might I'm low so to this anything

Frank Hall

Frank. Randy. impacted rate by driven to by course largely environment. persistency that that's On of This be is activity. the is refinance going I And mean Sure,

mortgage from of seen to So bottom the we extent have rates the a perspective.

high levels I XXs XXs, than longer-term you number type up persistency expect come of level. think see to to should more natural low that

persistency. Now normalized maybe is positive increasing that's a net agree our rates and and level would out But little slightly environment. stable call it rate that yes, that with increase you as a I for those bit

Randy Binner

around more understand this there's pushing think I generally kind other from But time the and the market function out lot I in more housing a refi think cycles guess is I the of and difference be, like I I just rates. mean would interest there refi, there's of between a product. entities this before consumers.

that seen push if historical continue refi because of could answer more cycles? you think that as you it is possible we've So is go more guess this generally a the But traditional will perhaps there, understood. I refi in order persistency to be for housing out short that's and see market, that in volatile, in the trend to there all

Rick Thornberry

for mortgage opportunity, question, to industry tell this whether whether I've you XX I it's Randy. it's industry in over I brokers, honestly, a it's quite large think mortgages refinance I've think great been a originators, seen never I whether have missing banks. years it's and

give that the from We're today the option. to And push to be how through out the there's aggressive any based ability we've the rates know But are refinances in all don't will that But it in always think upon to US. going better this down I over that come and think plays I leverage comes for We and past. still think how they're outstanding a have relative But the So that I consumers And been mortgage money. may different impact. it's have interest some future. the the I historically seeing exercise book willingness technology. obviously again cycle up. current seen rates to when

forever But have for determine business versus this periods focus point closing. in seen we'll refinances less and view. industry one There are a from ultimately, of players. or it's think issue pipeline I new different in we've more capacity well to many normal of and refinance out having there's mortgage expand greatest been the cycles refinance I think a the expensive and and

by through. money the think level So think But [ph] are the will driven and in rates. by seeing be from we're borrowers come of mortgage going it's interest option where driven still obviously that of refinance to ultimately I [ph] rates and some be I

predict to it how out. hard So plays

over the where settle term it to upon the and going I in long-term, think it's depend out. near rates be will volatile

Randy Binner

All right, Thanks. that. I appreciate

Operator

go ahead. from And KBW. our next from George question Bose comes Please

Bose George

see beat of couple But that just impacting go post-COVID overall to industry the remained fairly market, increases. that. the giving is the the pricing fair don't has versus mean that's is pricing, And of back to shares the on I bid that, on to here dead wanted Just bulk terms questions. A wanted a at mean going of the One, back stuff. summarize what's I to the it to say to that in all? just market? a So horse lot stable the size shifts then is

you. rata come there to has you haven't kind pro credit Given should as and normalized, back you yet quite do, of gotten share the

Derek Brummer

first think I in question. so Yes, the

stable forward bid size terms business. it's of pretty of think bulk in I the the

terms significant don't think in of we've seen that. shifts I So

So as you it's companies not between see movements on MI volumes. maybe different much

best and that Sometimes of picking the the might those volume volume pricing. in other [ph] probably originators. because that do be up can shift then terms to way relative It's winters just

I of kind again, as think giving of fair why previous to kind you in that's equilibrium what it's just referred that summation of terms point. said generally and of increases I a back

stability. where little kind You a point reached there's more bit certain of

black-box I pricing market think engines. going in in we were tend that I see say, into phase share pretty probably COVID and would numbers you to stable the

right, still the more in You more hope forward of see to more a a that that and return at stabilized you're see and moving more would rata distribution. would then, environment to would bid what the expect pricing a volume. we around you return see shift That's bulk of see of pro to point, everyone

Bose George

you return. Okay, capital great. just, Thanks. over And the switching if

sort a which up puts you in company, the to noted, relative guys I was FHA like the position you good of is of there's there lot holding buy sort insurance you balancing from just ongoing company? a As you've capital got restrictions restriction while the Co. - the still curious, aggressively whole [ph]. just or at any to could back shares there dividend of on given act

Frank Hall

is this Frank. Bose,

in and management point plan our we is I that all the we need, strategic that think liquidity a consistent way such that and our managed emphasized capital with capital have that optionality we that intention. we here our the have is

we're position us the think certainly company the plants from factor in business of capital doesn't So puts operating accordingly. parent the restriction really and a us enables the I our how to dividend that aspects company into with fortunate and running continue to very any so

Bose George

Okay, great. Thanks.

Operator

Gilbert comes ahead. BTIG. Ryan And Please from from go our next question

Ryan Gilbert

traditional premium if target and done your as of My does programs, percentage first of single your single I past? premium QSR sense insurance When in QSR, a force would you've a the versus move force insurance you premium question that to thinking But single around you're a future know is total policies like premium make earlier. percentage it I'm you policies. in single it QSR shrinks. wondering to you more the have be to about in discussed which for the

Derek Brummer

this Yes, Derek. is

upon shift So our since projection. and don't looking relative our we're returns looking a Generally approach those have We're at at value. economic depending are to we target. relative going

are monthly's to like going and interest rates. have things sensitivities singles to So different

you so component. that competitor important there pricing relative is, relative But in even arguably vice monthly's, shift and just versa. more moving component extent So to that's singles value would see see versus the an important where to the we expect

percentage we're volume. of not So a particular pegging to

In distribution structures, in our yes, terms terms position. return, open we're different our structures to our of risk of capital risk optimizing and

recent And there transaction our running singles through so ILN most even also well. production as

distribution the risk kind monthly, future, what in of of or our the vary those so depends. kind and not to could of sort whether distributing in the easy for pricing would change depending also and you're an that of going upon we're can we all efficiency answer. that So again, singles It structure those structures are But well. relative reinsurance be as look

Ryan Gilbert

versus any over profile as been singles Has just the few change the meaningful and there Okay follow-up. a last months? return monthly in of

Derek Brummer

terms of think return there's in No overall, change I profile. been don't

with and earlier. of I think economy kind the this we generally improving talked about

the the The look board. the think would be the economic that's As will we equal, business expectation improve and I from marginally things of kind at being and returns all outlook. across

Ryan Gilbert

it. got Okay,

services you're M&A plan your your how versus estate in me, growing I'm strategic about real from accelerate there? wondering using question to business Second thinking that business. organically

Rick Thornberry

Rick. is this Ryan,

look up been and question. They're a at don't at. on opportunities. recently. the It's active overvalued I things watchful in We acquisitions. appreciated. eye We through the We either or and we appreciate and pipeline acquisition do see We're So maybe value of look Frank that an truthfully John over a focused towards growth. organic quite obviously building many keep lot team.

and I focused strategy opportunity of everybody to we some from my are that in we and Segment comments, So the going and Estate and services we June then Real business, provide and going of of through business think On the organic how see that Day announced launched walk opening product growth. XX technologies kind view. I on point forward. see Investor launching interesting a We're the as a have we're

more because growth that? say So grow on we the we're actually title Frank our back curtain is kind of little the them enable But the pull customers accelerating value revenues over, starting a this As think of several chip on a business Which driven organic addition we've to business. the said, bit do the making the of client. been I'd today on business their I'd of large. are customers. blue new to type is and these investment call boarding with

that So is the business organic growth of accelerating.

an there element have Our relationships of mortgage insurance relationship. matter important us been and our expanding

these to attractive on accretive opportunities strategically this through if it and think and we'll on investments real business. come the But the think software certainly thought highly we can focus from and build XX. also were organically. to forward of here going excited an we kind estate But and talk more that starting I we're We acquisition already. we to our growth saw look today, growing very service business walking picture. overall these digital on as see would acquisitions excited title And sit business business to we're - is on a view, organic June point accumulation It to which really is of today, development value together - which of business business focus I the digital as the very our we're across again our more about we're about and of consider we about because making XXth. again

Ryan Gilbert

Thanks great. much. Okay, very

Operator

Please from And Stefano Deutsche our from ahead. go comes next Phil Bank. question

Phil Stefano

March. early, in put start. you had that place Just on a you to point put that? Frank, Is the XXbX-X that late? few mid, a ones fine in was mentioned quick Can

Frank Hall

early. was it Sure,

Phil Stefano

fantastic. Okay,

the comments remarks was one any had favorable from some development mentioned that think prepared of COVID you the defaults I defaults Was there with of that prior XXXX? XXXX. of to

Frank Hall

No.

Phil Stefano

how benefit the come a reopens? Okay, benefit that any expenses of us it back T&E. frame and thinking about other way had operating is extent quickly the for slight from can world might as there you

Frank Hall

about in put you. over But for the it's the permanent Phil efficiency we've how and we go I a say of bit expect as course see perhaps a COVID in entertainment normal it would quite on few environment year, business evaluate to we back and is that, fine what what gains I it a that our some so a takes to million operate see point and on learned travel online. would the won't dollars expenses we'll forward also basis. comes

pre-COVID to back put I for want level. to to So I also wouldn't point calibrate wouldn't on a finer you. want it But

Phil Stefano

sense. Okay, no that makes

enough that's think think I to about.

the think investments that right should wave revenue thinking It So the be we that's past the the getting this I it's kind have last to the that estate the expenses the of as is is, Is real here? segment. relatively quarters couple we're real fluctuated. been you this about the of next ready have and flat How on for and estate expenses building one about way like for of feels segment lifecycle?

Rick Thornberry

say, the you. I'll you revenue revenue both the would Yes, I thank side. expense the and give And look Phil

REO things. past One title because volatility revenue revenue of been has foreclosure over our business of two by by or the driven moratoriums. the So in the offset year decline kind more less is the is growing really

to that's obviously business of the valuation in these moratoriums been the chunky times. But Now of of some slowdown seen little kind little would aspects We've revenue at more especially as back come the a future some the REO SFR bit the bit also related side. in of on as business overall, make will say that lifted. trade I

very to impacted on side, expenses be We're point some prepared On continue do business revenue also title the carry business the have our been to so a board, related view. of from expense we [indiscernible] clients. those some that growing to of

give So I'll just you.

the ever. yesterday's think I largest in volume our was title business

orders point think from view of continued seen record-breaking I a new and we've levels.

assumed we new expand clients these As and onboard relationships.

been and to and the position training ahead we've staffing forth. onboard cycle So to go in a through we so be

their expense significant related build making we're different we'll part these the a But new that that both our and we're ahead summer. is think on I June talk So and really - really more type about of very lead platforms and business. title estate is up traditional We're one launch to client real staffing this in across investment anticipated title category boarding. platform building we'll of

the be building real path to from across from will [indiscernible] future business. very title business estate to the think it I it our market and we building as the innovative the

day-to-day service and so estate We continue a around as you the [indiscernible] a a valuation in, to the platform software invest information and transaction. as real have

So we'll an investment. be making

make what of ahead the a say, and quarter, could as these making it You businesses. in we we do term. can a value near earnings think we said investments future start of I and occurring see up But don't these we'll we last see in towards investment see we're like the as -

see the we've that of over kind seen title ahead do some the comps of market earnings. fintech, quite around popular EPS, today. Moving And quarters but value few I the of businesses we think [indiscernible] last are

to very digital making you valued. to is are more XXth. who in investors it think that is future business I talk about on We June towards something look forward

Phil Stefano

forward to too. it looking I'm Thanks

Operator

have no further for any to this questions over at remarks. will We closing Rick it time. turn I Thornberry

Rick Thornberry

care. at they're business for to and safe. team doing serve all next Radian us thank an want transition. the and you stays all. with today Thank for and to joining in soon. things your across that meeting forward look to or great to we Take our about questions. - our Radian have again, and either well. customers upon Depending that how I time interest you a and our I work you organization virtually thank I I everybody for talk for hope as seeing all our want to everybody you Be look and opportunity And really forward your well team thank

Operator

ladies you, Thank Thank concludes conference. participating. and gentlemen. today's for This you

disconnect. now may You