XML 42 R30.htm IDEA: XBRL DOCUMENT

Schedule II - Financial Information of Registrant

12 Months Ended

Dec. 31, 2024

Condensed Financial Information Disclosure [Abstract]

Schedule II—Financial Information of Registrant

Condensed Balance Sheet
Parent Company Only


(In thousands, except per-share amounts)	December 31, 2024			December 31, 2023
Assets
Investments
Fixed-maturities available for sale—at fair value (amortized cost of $634,133 and $653,575)	$	612,209		$	623,957
Trading securities—at fair value (amortized cost of $3,987)		4,838			—
Equity securities—at fair value (cost of $126,830 and $79,170)		134,864			83,620
Other invested assets—at fair value		4,850			6,222
Short-term investments—at fair value (includes $6,276 and $63,450 of reinvested cash collateral held under securities lending agreements)		115,983			316,991
Total investments		872,744			1,030,790
Cash		5,782			2,200
Investment in subsidiaries, at equity in net assets (Note C)		5,012,554			4,990,822
Other assets		131,345			165,612
Total assets	$	6,022,425		$	6,189,424

Liabilities and stockholders’ equity
Liabilities
Senior notes	$	1,065,337		$	1,417,781
Net deferred tax liability (Note A)		245,692			226,141
Other liabilities		87,538			147,697
Total liabilities		1,398,567			1,791,619
Common stockholders’ equity
Common stock ($0.001 par value; 485,000 shares authorized; 2024: 168,350 and 147,569 shares issued and outstanding, respectively; 2023: 173,247 and 153,179 shares issued and outstanding, respectively)		168			173
Treasury stock, at cost (2024: 20,782 shares; 2023: 20,068 shares)		(968,246	)		(945,870	)
Additional paid-in capital		1,246,826			1,430,594
Retained earnings		4,695,348			4,243,759
Accumulated other comprehensive income (loss)		(350,238	)		(330,851	)
Total common stockholders’ equity		4,623,858			4,397,805
Total liabilities and stockholders’ equity	$	6,022,425		$	6,189,424

Schedule II—Financial Information of Registrant

Condensed Statements of Operations

Parent Company Only


	Years Ended December 31,
(In thousands)	2024			2023			2022
Revenues
Net investment income	$	63,021		$	55,370		$	20,584
Net gains (losses) on investments and other financial instruments		9,651			(5,844	)		(4,322	)
Other income		—			—			78
Total revenues		72,672			49,526			16,340

Expenses
Other operating expenses		8,825			5,025			2,043
Interest expense		4,275			—			—
Total expenses (Note B)		13,100			5,025			2,043

Pretax income		59,572			44,501			14,297
Income tax provision		17,602			12,479			8,148
Equity in net income of affiliates		562,470			571,097			736,785
Net income		604,440			603,119			742,934
Other comprehensive income (loss), net of tax		(19,320	)		125,949			(576,892	)
Comprehensive income	$	585,120		$	729,068		$	166,042

Schedule II—Financial Information of Registrant
Condensed Statements of Cash Flows
Parent Company Only


	Years Ended December 31,
(In thousands)	2024			2023			2022
Cash flows from operating activities
Net cash provided by (used in) operating activities (1)	$	246,885		$	194,607		$	(71	)

Cash flows from investing activities
Proceeds from sales of:
Available for sale securities		18,423			129,650			56,934
Trading securities		—			—			8,868
Equity securities		38,375			60,755			—
Proceeds from redemptions of:
Available for sale securities		320,026			168,639			194,859
Trading securities		23			—			—
Purchases of:
Available for sale securities		(63,733	)		(84,313	)		(29,039	)
Equity securities		(18,166	)		(3,690	)		(2,500	)
Sales, redemptions and (purchases) of:
Short-term investments, net		339,819			(135,657	)		188,149
Other assets, net		(158	)		(10,664	)		(3,851	)
Capital distributions from subsidiaries		500			7,000			32,512
Capital contributions to subsidiaries		(84,000	)		(49,750	)		(8,000	)
Net cash provided by (used in) investing activities		551,109			81,970			437,932

Cash flows from financing activities
Dividends and dividend equivalents paid		(151,961	)		(145,908	)		(135,437	)
Issuance of common stock		928			1,755			1,341
Repurchases of common stock		(225,059	)		(133,314	)		(400,195	)
Issuance of senior notes		616,745			—			—
Redemption of senior notes		(977,079	)		—			—
Credit facility commitment fees paid		(812	)		(904	)		(814	)
Proceeds (repayments) related to cash collateral for loaned securities, net		(57,174	)		2,122			60,270
Net cash provided by (used in) financing activities		(794,412	)		(276,249	)		(474,835	)

Increase (decrease) in cash and restricted cash		3,582			328			(36,974	)
Cash and restricted cash, beginning of period		2,200			1,872			38,846
Cash and restricted cash, end of period	$	5,782		$	2,200		$	1,872

(1)

Includes cash distributions received from subsidiaries of $243 million, $191 million and $50 million in 2024, 2023 and 2022, respectively. Excludes non-cash distributions received from subsidiaries of $432 million, $218 million and $888 million in 2024, 2023 and 2022, respectively.

Schedule II—Financial Information of Registrant

Supplemental Notes

Parent Company Only

Note A

The Radian Group Inc. (the “Parent Company,” “we” or “our”) financial statements represent the stand-alone financial statements of the Parent Company. These financial statements have been prepared on the same basis and using the same accounting policies as described in the consolidated financial statements included herein, except that the Parent Company uses the equity-method of accounting for its majority-owned subsidiaries. These financial statements should be read in conjunction with our consolidated financial statements and the accompanying notes thereto.

See Notes 12 and 14 of Notes to Consolidated Financial Statements for additional information on the Parent Company’s debt obligations and capital stock.

The Parent Company has entered into the following guarantees on behalf of our subsidiaries:

▪

Beginning in 2022, Radian Group entered into certain Parent Guarantees to support its mortgage conduit business. See Note 12 of Notes to Consolidated Financial Statements for additional information.

▪

To allow our mortgage insurance customers to comply with applicable securities regulations for issuers of ABS (including mortgage-backed securities), Radian Group has guaranteed two structured transactions for Radian Guaranty with $40 million of aggregate remaining credit exposure as of December 31, 2024.

▪

Radian Group and Radian Mortgage Assurance are parties to a guaranty agreement, which provides that Radian Group will make sufficient funds available to Radian Mortgage Assurance to ensure that Radian Mortgage Assurance has a minimum of $5 million of statutory policyholders’ surplus every calendar quarter. Radian Mortgage Assurance had $9 million of statutory policyholders’ surplus and no RIF exposure as of December 31, 2024.

As of December 31, 2024, Radian Group recorded a net deferred tax liability of $246 million. This balance includes liabilities related to certain of our subsidiaries, which have incurred federal NOLs that could not be carried-back and utilized on a separate company tax return basis. As a result, we are not currently obligated under our tax-sharing agreement to reimburse these subsidiaries for their separate company federal NOL carryforward. However, if in a future period one of these subsidiaries utilizes its share of federal NOL carryforwards on a separate entity basis, prior to the NOL expiring, then Radian Group may be obligated to fund such subsidiary’s share of our consolidated tax liability to the Internal Revenue Service. A portion of these NOLs will begin to expire in 2027.

Note B

The Parent Company provides certain services to its subsidiaries. The Parent Company allocates to its subsidiaries expenses it incurs in the capacity of supporting those subsidiaries, including operating expenses, which are allocated based on the forecasted annual percentage of total revenue, which approximates the estimated percentage of time spent on certain subsidiaries, and interest expense, which is allocated based on relative capital. These expenses are presented net of allocations in the Condensed Statements of Operations. Substantially all operating expenses and interest expense have been allocated to the subsidiaries for 2024, 2023 and 2022.

Amounts allocated to the subsidiaries for expenses are based on actual cost, without any mark-up. The Parent Company considers these charges to be fair and reasonable. The subsidiaries generally reimburse the Parent Company for these costs in a timely manner, which has the impact of temporarily improving the cash flows of the Parent Company, if accrued expenses are reimbursed prior to actual payment.

The following table shows the components of our Parent Company expenses that have been allocated to our subsidiaries for the periods indicated.


Total allocated expenses

	Years Ended December 31,
(In thousands)	2024		2023		2022
Allocated operating expenses	$	169,255	$	163,858	$	163,000
Allocated interest expense		81,301		82,734		82,568
Total allocated expenses	$	250,556	$	246,592	$	245,568

Note C

During 2024 and 2023, certain non-insurance subsidiaries had not generated sufficient cash flow to reimburse the Parent Company for their share of direct and allocated operating expenses, and therefore the Parent Company effectively contributed a total of $76 million and $110 million, respectively, to these subsidiaries to reflect the impairment of the intercompany receivables representing unreimbursed direct and allocated costs.

See Note 16 of Notes to Consolidated Financial Statements for additional information related to capital transactions between the Parent Company and its consolidated insurance subsidiaries, including $675 million in ordinary dividends paid during 2024 from Radian Guaranty to Radian Group.