Statutory Information

3 Months Ended

Mar. 31, 2024

SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Abstract]

Our insurance subsidiaries’ statutory net income (loss) for the periods indicated, and statutory policyholders’ surplus as of the dates indicated, were as follows.


Statutory net income (loss)

	Three Months Ended March 31,
(In thousands)	2024		2023
Radian Guaranty	$	200,483	$	199,171
Other mortgage insurance subsidiaries	(430)		(388)
Radian Title Insurance	584		253

Statutory policyholders’ surplus

(In thousands)	March 31, 2024		December 31, 2023
Radian Guaranty	$	703,315	$	619,584
Other mortgage insurance subsidiaries	17,105		17,444
Radian Title Insurance	41,676		41,108

Under state insurance regulations, Radian Guaranty is required to maintain minimum surplus levels and, in certain states, a maximum ratio of net RIF relative to statutory capital, or Risk-to-capital. The most common Statutory RBC Requirement is that a mortgage insurer’s Risk-to-capital may not exceed 25 to 1. In certain of the RBC States, a mortgage insurer must satisfy an MPP Requirement. Radian Guaranty was in compliance with all applicable Statutory RBC Requirements and MPP Requirements in each of the RBC States as of March 31, 2024. Radian Guaranty’s Risk-to-capital was 10.2:1 and 10.4:1 as of March 31, 2024, and December 31, 2023, respectively. For purposes of the Risk-to-capital requirements imposed by certain states, statutory capital is defined as the sum of statutory policyholders’ surplus plus statutory contingency reserves. Our other mortgage insurance and title insurance subsidiaries were also in compliance with all statutory and counterparty capital requirements as of March 31, 2024.

In addition, in order to be eligible to insure loans purchased by the GSEs, mortgage insurers such as Radian Guaranty must meet the GSEs’ eligibility requirements, or PMIERs. At March 31, 2024, Radian Guaranty, an approved mortgage insurer under the PMIERs, was in compliance with the current PMIERs financial requirements.

State insurance regulations include various capital requirements and dividend restrictions based on our insurance subsidiaries’ statutory financial position and results of operations. As of March 31, 2024, the amount of restricted net assets held by our consolidated insurance subsidiaries (which represents our equity investment in those insurance subsidiaries) totaled $4.7 billion of our consolidated net assets.

While all proposed dividends and distributions to stockholders must be filed with the Pennsylvania Insurance Department prior to payment, if a Pennsylvania domiciled insurer has positive unassigned surplus, such insurer can pay dividends or other distributions during any 12-month period in an aggregate amount less than or equal to the greater of: (i) 10% of the preceding year-end statutory policyholders’ surplus or (ii) the preceding year’s statutory net income, in each case without the prior approval of the Pennsylvania Insurance Department.

Radian Guaranty had positive unassigned surplus of $120 million as of December 31, 2023, providing it with the ability to pay ordinary dividends in the first quarter of 2024, subject to the above restrictions under Pennsylvania’s insurance laws. As a result, Radian Guaranty paid an ordinary dividend of $100 million to Radian Group in the first quarter of 2024 and maintains the ability to pay additional ordinary dividends during the remainder of 2024. Subsequent to the payment of these dividends, as of March 31, 2024, Radian Guaranty had positive unassigned surplus of $203 million.

For a full description of our compliance with statutory and other regulations for our mortgage insurance and title insurance businesses, including statutory capital requirements and dividend restrictions, see Note 16 of Notes to Consolidated Financial Statements in our 2023 Form 10-K.