RADIAN GROUP INC Segments Disclosure
5. Segment Reporting
We currently have one reportable segment, Mortgage Insurance, which primarily derives its revenue by providing private mortgage insurance on residential first-lien mortgage loans to mortgage lending institutions and mortgage credit investors.
In addition to this reportable segment, we previously reported in an All Other category activities consisting of: (i) income (losses) from assets held by Radian Group, our holding company; (ii) general corporate operating expenses not attributable or allocated to our reportable segment; and (iii) the results from certain other immaterial activities and operating segments, including our Mortgage Conduit, Title and Real Estate Services businesses. As further described in Note 3, in the quarter ended September 30, 2025, Radian Group’s board of directors approved a plan to divest our Mortgage Conduit, Title and Real Estate Services businesses. As a result, we have reclassified the results related to these businesses to discontinued operations for all periods presented in our consolidated statements of operations.
Certain corporate expenses that were previously allocated to these businesses, as well as other general corporate expenses and income (losses) from assets held by Radian Group, were not reclassified to discontinued operations, and therefore have been reallocated to the Mortgage Insurance segment. While we historically have not managed assets by operating segments, the assets related to our non-reportable segments are now segregated as assets held for sale on our consolidated balance sheets, with all remaining assets related to our Mortgage Insurance segment.
See Note 1 for additional details about our Mortgage Insurance business.
Adjusted Pretax Operating Income (Loss)
Our senior management, including our , uses adjusted pretax operating income (loss) as our primary measure to evaluate the fundamental financial performance of our businesses.
The table below presents details on our Mortgage Insurance segment’s operating results, including a disaggregation of significant segment expenses as monitored by Radian’s chief operating decision maker.
Mortgage Insurance segment operating results |
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|||
|
|
Years Ended December 31, |
|
|||||||||
($ in thousands) |
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
|
|
|
|
|
|
|
|
|
|
|||
Total revenues |
|
$ |
1,197,108 |
|
|
$ |
1,210,645 |
|
|
$ |
1,167,897 |
|
Less: expenses |
|
|
|
|
|
|
|
|
|
|||
Provision for losses |
|
|
66,768 |
|
|
|
(2,248 |
) |
|
|
(42,136 |
) |
Policy acquisition costs |
|
|
25,039 |
|
|
|
27,316 |
|
|
|
24,578 |
|
Other operating expenses |
|
|
|
|
|
|
|
|
|
|||
Salaries and share-based employee expenses |
|
|
177,841 |
|
|
|
165,704 |
|
|
|
160,709 |
|
Other non-employee operating expenses |
|
|
76,987 |
|
|
|
78,791 |
|
|
|
87,374 |
|
Depreciation expense |
|
|
10,387 |
|
|
|
14,634 |
|
|
|
11,976 |
|
Ceding Commissions |
|
|
(29,378 |
) |
|
|
(24,497 |
) |
|
|
(19,933 |
) |
Total other operating expenses |
|
|
235,837 |
|
|
|
234,632 |
|
|
|
240,126 |
|
Interest expense |
|
|
67,777 |
|
|
|
83,731 |
|
|
|
86,188 |
|
Adjusted pretax operating income |
|
$ |
801,687 |
|
|
$ |
867,214 |
|
|
$ |
859,141 |
|
|
|
|
|
|
|
|
|
|
|
|||
Key segment ratios |
|
|
|
|
|
|
|
|
|
|||
Loss Ratio (1) |
|
|
7.1 |
% |
|
|
(0.2 |
)% |
|
|
(4.6 |
)% |
Expense Ratio (2) |
|
|
27.7 |
% |
|
|
27.9 |
% |
|
|
29.1 |
% |
The calculation of adjusted pretax operating income, as detailed below, is presented for continuing operations only and therefore excludes income (loss) from discontinued operations, net of tax, for all periods presented herein.
Although adjusted pretax operating income (loss) excludes certain items that have occurred in the past and are expected to occur in the future, the excluded items represent those that are: (i) not viewed as part of the operating performance of our primary activities or (ii) not expected to result in an economic impact equal to the amount reflected in pretax income (loss) from continuing operations. These adjustments to pretax income (loss) from continuing operations, along with the reasons for their treatment, are described below.
Trends in the profitability of our fundamental operating activities can be more clearly identified without the fluctuations of these realized and unrealized gains or losses and changes in fair value of other financial instruments. Except for certain investments and other financial instruments attributable to specific operating segments, we do not view them to be indicative of our fundamental operating activities.
The reconciliation of adjusted pretax operating income to pretax income from continuing operations is as follows.
Reconciliation of adjusted pretax operating income to pretax income from continuing operations |
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|||
|
|
Years Ended December 31, |
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|||
(In thousands) |
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
|
|
|
|
|
|
|
|
|
|
|||
Adjusted pretax operating income |
|
$ |
801,687 |
|
|
$ |
867,214 |
|
|
$ |
859,141 |
|
Reconciling items |
|
|
|
|
|
|
|
|
|
|||
Net gains (losses) on investments and other financial instruments |
|
|
(24 |
) |
|
|
(4,347 |
) |
|
|
9,405 |
|
Impairment of other long-lived assets and other non-operating items (1) |
|
|
(10,435 |
) |
|
|
(17,260 |
) |
|
|
(4,667 |
) |
Pretax income from continuing operations |
|
$ |
791,228 |
|
|
$ |
845,607 |
|
|
$ |
863,879 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 20, 2026 | Showing above |
| 2021 | Feb 25, 2022 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.