Mortgage insurer Radian Group started the year off with success in several key parts of its business, including increasing its net income from last year.
Radian reported net income for the quarter ended March 31, 2017, of $76.5 million, or $0.34 per diluted, up from net income for the quarter ended March 31, 2016, of $66.2 million, or $0.29 per diluted share.
Book value per share also grew in the first quarter, rising to $13.58, up 9% from $12.42 for the quarter 2016.
Similarly, new mortgage insurance written reached $10.1 billion for the quarter, up from to $13.9 billion in the fourth quarter of 2016 and $8.1 billion in the prior-year quarter.
“I am pleased to report strong first quarter results for Radian, including year over year growth in net income, book value and new MI business written,” said Radian’s CEO Rick Thornberry.
“As persistency rises, we expect our large, high quality MI in-force portfolio to grow and generate future premium revenue. This is the primary driver of future earnings for Radian.” Thornberry added.
“After nearly two months with Radian as CEO, my excitement about the prospects ahead continues to grow. I decided to join the company based on the excellent businesses, great team, diversified set of products and services, high quality portfolio, and the institutional commitment to serve customers,” he concluded. “Those qualities, along with a strong capital base, solid profitability and excellent market opportunity, are a winning combination.”
Other key measurements for the mortgage insurer include:
- The total number of primary delinquent loans fell by 16.4% from the first quarter of 2016. In addition, the primary mortgage insurance delinquency rate decreased to 2.8% in the first quarter of 2017, compared to 3.5% in the first quarter of 2016.
- The mortgage insurance provision for losses came in at $47.2 million in the first quarter of 2017, compared to $43.3 million in the prior-year period.