Radian Group Inc. Factsheet

Transcription

1 Radian Group Inc. Factsheet Data as of Quarter End December 31, 20 NYSE: RDN Market Capitalization: $4.4 billion 52 Week Stock Price Range: $ Shares Outstanding: 2.8 million Average Three Month Trading Volume: 1.5 million Number of Employees: 1,971 Sources: Company filings, FactSet and Yahoo Finance Company Overview Radian Group Inc. headquartered in Philadelphia, provides private mortgage insurance, risk management products and real estate services to financial institutions. Radian offers products and services through two business segments: Mortgage Insurance, through its principal mortgage insurance subsidiary Radian Guaranty Inc. This private mortgage insurance protects lenders from defaultrelated losses, facilitates the sale of lowdownpayment mortgages in the secondary market and enables homebuyers to purchase homes more quickly with downpayments less than 20%. Mortgage and Real Estate Services, through its principal services subsidiary Clayton, as well as Green River Capital, Red Bell Real Estate and ValuAmerica. These solutions include information and services that financial institutions, investors and government entities use to evaluate, acquire, securitize, service and monitor loans and assetbacked securities. Timeline of Events in Radian s History 20 Rick Thornberry, an accomplished veteran with more than 30 years of experience in the financial services industry, joins Radian as CEO. 20 Radian wrote the highest volume of new flow mortgage insurance business at $50.5 billion in the company s history. 20 Radian completes sale of Radian Asset Assurance to Assured Guaranty Corp, a subsidiary of Assured Guaranty, Ltd. 20 Radian acquires Clayton Holdings LLC. 20 Radian is nation s largest private mortgage insurance company with $1 billion of insurance in force Radian doubles market share from historical levels to number one position in the fourth quarter Radian continues to expand sales team to serve growing customer base Radian further strengthens balance sheet and increases financial flexibility with equity and convertible senior notes offerings Radian increases focus and resources on its core mortgage insurance business Radian discontinues writing new financial guaranty business Radian and MGIC announce and ultimately terminate plans to merge and form MGIC Radian Financial Group Radian establishes presence in Australia Radian forms relationship with Standard Chartered Bank (Hong Kong) Limited Radian receives authorization by the U.K.'s Financial Services Authority to create subsidiary, Radian Financial Products Limited Financial Guaranty subsidiaries, Radian Reinsurance and Radian Asset Assurance, merge into Radian Asset Assurance Inc Radian receives authorization by U.K.'s Financial Services Authority to create subsidiary, Radian Asset Assurance Limited Principal operating entities unite under the Radian brand Radian acquires Enhance Financial Services Group, including ownership interests in CBASS and Sherman Financial CMAC and Amerin merge, forming Radian and its MI subsidiary CMAC goes public Commonwealth Mortgage Assurance Company (CMAC), Radian's predecessor company, is founded. 1

2 Financial Highlights as of December 31, 20 Assets: $5.9 billion Loss Reserves: $508 million Longterm Debt: $1.0 billion Stockholders Equity: $3.0 billion Book Value Per Share: $.90 RisktoCapital Ratio (Radian Guaranty) 12.8:1 Financial Summary for Fiscal Years Ended December 31, (In millions, except pershare amounts and ratios) Consolidated Statements of Operations Net premiums earnedinsurance $ $ 9.9 $ $ $ Net investment income Total revenues 1, , , Provision for losses Total losses & expenses ,5.2 Net income (loss) (197.0) (451.5) Diluted net income (loss) per share (1) $ 1.37 $ 1.22 $ 4. $ (1.18) $ (3.41) Cash dividends declared per share $ 0.01 $ 0.01 $ 0.01 $ 0.01 $ 0.01 Weighted average shares outstandingdiluted RisktocapitalRadian Guaranty only.5:1.3:1.9:1 19.5:1 20.8:1 RisktocapitalMortgage Insurance combined.6:1.6:1 20.3:1 24.0:1 29.9:1 Consolidated Balance Sheets Total assets $ 5,863.2 $ 5,642.1 $ 6,842.3 $ 5,606.0 $ 5,894.6 Cash and investments (2) 4, , , , ,471.4 Longterm debt 1, , , Stockholders equity 2, , , Book value per share $.39 $ $ $ 5.43 $ 5.51 (1) Diluted net income (loss) per share and average share information calculated in accordance with the accounting standard regarding earnings per share. (2) Includes restricted cash. 2

3 Key Financial Metrics Net Income (Loss) $500 $400 $300 $200 $100 $ $36 $203 $5 $4 $428 $92 $50 $70 $75 $66 $98 $83 $61 $76 $65 $7 $(100) $(27) MI Incurred Losses $4 $49 $64 $49 $84 $45 $34 $63 $57 $43 $50 $56 $55 $47 $18 $36 $35 Direct Primary RIF Billions $40.0 $40.4 $41.3 $42.5 $43.2 $43.4 $43.7 $44.4 $44.6 $44.7 $45.3 $46.2 $46.7 $47.4 $48.9 $50.2 $

4 Total New Primary Insurance Written Billions $9.3 $6.8 $9.3 $11.2 $10.0 $9.4 $11.8 $11.2 $9.1 $8.1 $12.9 $.7 $.9 $10.1 $.3 $.1 $.4 Consolidated Shareholders' Equity 3,500 3,000 2,500 2,000 1,500 1, $940 $2,660 $2,805 $2,889 $2,872 $2,920 $2,9 $2,988 $3,000 $2,353 $2,436 $2,497 $2,207 $2,097 $1,584 $1,734 $1,056 Q4 20 Market Share Q4 20 Revenue Arch MI 20.6% Radian 20.6% NMI 9.8% Essent.1% Genworth.6% MGIC 18.3% Source: Company public filings 1) Represents revenues on individual segment basis. 4

5 Financial Strength Ratings as of December 31, 20 Company Moody s Investor Service Standard & Poor s Radian Group Inc. Ba3 BB+ Radian Guaranty Inc. Baa3 BBB+ Radian Reinsurance Inc. Not Rated BBB+ Top Shareholders as of December 31, 20 Rank Firm % O/S Amount Held Position Change 1 Fidelity Management & Research Company ,225, ,290 2 The Vanguard Group, Inc ,4, ,671 3 BlackRock Fund Advisors 6.10,2, ,710 4 LSV Asset Management ,8, ,869 5 T. Rowe Price Associates, Inc ,857,101 3,467 6 Capital World Investors (U.S.) ,622,384 1,428,223 7 Putnam Investment Management, LLC ,8,535 42,000 8 State Street Global Advisors (SSgA) ,387,563 25,629 9 Northern Trust Investments, Inc ,6,309 89, Investec Asset Management, LTD (U.K.) ,426, ,730 Analyst Coverage Firm Analyst Phone Bank of American Merrill Lynch Mihi Bhatia mihir.bhatia@baml.com Barclays Capital Mark DeVries mark.devries@barcap.com BTIG Mark Palmer mpalmer@btig.com Compass Point Research & Trading Chris Gamaitoni cgamaitoni@compasspointllc.com Credit Suisse Douglas Harter douglas.harter@creditsuisse.com Deutsche Bank Phil Stefano phil.stefano@db.com Dowling & Partners Geoffrey Dunn x327 dunn@dowling.com Friedman Billings Ramsey Randy Binner rbinner@fbr.com Keefe, Bruyette & Woods Bose George bgeorge@kbw.com MKM Partners Harry Fong hfong@mkmpartners.com RBC Capital Markets Mark Dwelle mark.dwelle@rbccm.com Susquehanna Financial Group John Micenko jack.micenko@sig.com Wells Fargo Securities, LLC Sean Dargan sean.dargan@wellsfargo.com Zelman & Associates Mackenzie Aron mackenzie@zelmanassociates.com Company Headquarters Contact Information Investor Relations/Media Radian Group Inc. Emily Riley 00 Market Street Senior Vice President Philadelphia, PA Corporate Communications and Investor Relations emily.riley@radian.biz 5