Radian Guaranty’s (RDN) principal mortgage insurance subsidiary wrote $3.63 billion in new insurance for the monthly period ending March 31, as the insurer maintained a risk-to-capital ratio of 20:1.
Comparatively, that risk ratio is down from the 25-to-1 risk-to-capital ratio Radian recorded a year earlier.
To protect itself from a higher-risk ratio, Radian in 2012 enacted a quota-share reinsurance agreement with an outside company to protect its risk-to-capital position.
Furthermore, in March, Radian's parent company contributed $115 million to the Radian Guaranty platform. The Radian Group now has more than $800 million in liquidity and expects to maintain a 20:1 or below risk-to-capital ratio heading into the future.
The firm started the month of March with 89,714 loans in its delinquent inventory and ended up with 4,168 new delinquent loans. However, during the month of March, 6,338 loans were cured, 2,028 were paid off and 407 rescissions and denials came in.
By month’s end, Radian had only 85,109 delinquent loans in its portfolio.