As discussed in “Overview—Current Operating Environment,” the macroeconomic stresses beginning in the second quarter of 2022 impacted our homegenius businesses, including in particular a decrease in our title revenues due to the rapid decline in industrywide refinance volumes.

As further discussed below, we expect that the current economic environment will continue to negatively impact certain aspects of our results, including lower NIW, lower homegenius revenues, higher mortgage insurance defaults and lower investment fair values.

Services revenue for 2022 decreased as compared to 2021, primarily driven by the termination of a large mortgage fulfillment services contract with a customer as well as a decrease in demand for our contract underwriting services as a result of the general market decline in mortgage origination volume.

Services revenue for 2022 decreased compared to 2021, primarily driven by the general market decline in mortgage origination volume as well as other market and macroeconomic conditions, as further described above in “Overview—Current Operating Environment.”

See “Mortgage Insurance Portfolio” below for additional details on our NIW and IIF.The same inflationary pressures and higher interest rate environment that are impacting mortgage refinance demand and our NIW are also impacting our homegenius businesses, including a significant decrease in our title revenues beginning in the second quarter of 2022, due to the rapid decline in industry-wide refinance volumes.

The onset of the COVID-19 pandemic resulted in a significant increase in unemployment, which had a negative impact on the economy.

According to industry estimates, total mortgage origination volume was significantly lower in 2022 as compared to 2021 due to a significant decline in refinance activity and a smaller decline in home purchases.

The competitive environment is extremely challenging given the multitude of factors discussed above.

We expect these conditions to continue to negatively impact our NIW volumes in future periods.

The unfavorable macroeconomic developments and other factors cited above may again have a material negative impact on our results of operations and financial condition.

Beginning in the second quarter of 2020, the increase in the number of new mortgage defaults resulting from the COVID-19 pandemic had a negative effect on our results of operations and our reserve for losses for that year.

Natural disasters could also lead to increased reinsurance rates or reduced availability of reinsurance.

Our Loss Mitigation Activities and claims paying practices have in the past resulted in disputes with certain of our customers and in some cases, damaged our relationships with customers, resulting in a loss of business.

These economic conditions have negatively impacted the U.S. housing market, broadly reducing refinance activity and new purchase transactions and resulting in decreasing home prices in recent months in many markets.

As a result, a decline in the fair value of our available for sale portfolio may result in a decline in reported stockholders’ equity, as well as book value per common share.

Although it is difficult to project future volumes, recent industry projections for 2023 estimate total mortgage originations of approximately $1.8 trillion, which would represent a decline in the total annual mortgage origination market of approximately 23% as compared to 2022.

The decrease in the fair value of our investments due to higher market interest rates negatively affected our net income and stockholders’ equity during 2022.

While we have resolved all material disputes, a risk remains that our Loss Mitigation Activities or claims paying practices could in the future have a negative impact on our relationships with customers or potential customers.

In addition, the inability of a borrower to obtain hazard and/or flood insurance, or the increased cost of such insurance, could lead to an increase in delinquencies or a decrease in home prices in the affected areas.

The cooling effect of current economic conditions on U.S. housing markets throughout 2022 has resulted in a smaller insurable market compared to 2021, reducing our NIW.

It is possible that pricing competition could further intensify, which could result in a decrease in our projected returns.

Over the past several years, we have experienced a decline in our in force portfolio premium yield due to a number of factors, including the pricing and credit mix of recent NIW compared to the policies that have been cancelled.

Given that many of our customers currently give us a significant portion of their total mortgage insurance business, it is possible that further diversification could have a negative impact on our NIW if we are unable to mitigate the market share loss through new customers or increases in business with other customers.

As discussed above under “–We face risks associated with our new mortgage conduit business,” a decline in the value of collateral pledged under these agreements and our hedging agreements could trigger a margin call and 59Table of ContentsGlossaryPart I. Item 1A. Risk Factorsrequire Radian Mortgage Capital to pledge additional collateral under these arrangements, which Radian Mortgage Capital may be unable to satisfy without a capital contribution from Radian Group.

The current financial strength ratings assigned to our mortgage insurance subsidiaries could weaken our competitive position and potential downgrades by rating agencies to these ratings and the ratings assigned to Radian Group could adversely affect the Company.

Given the significant period of time that these loans have been in default, it is possible that the ultimate cure rate for these defaulted loans will be less than our current estimates of Cures for this inventory of defaults.

In addition, a deteriorating economy also can adversely affect housing values, which in turn can influence the willingness of borrowers to continue to make mortgage payments despite having the financial resources to do so.

Further, if Radian Guaranty becomes capital constrained, as was the case in the past, it may be more difficult for Radian Guaranty to return capital to Radian Group, which would compound the negative liquidity impact to Radian Group of the contributions it may be required to make to Radian Guaranty and leave less liquidity to satisfy Radian Group’s other obligations.

The current macroeconomic trends, and the corresponding softening in demand for home sales and mortgage refinancings, have also impacted the market demand for our new proprietary real estate technology products and services, which in some cases have been delayed by longer than anticipated launch timelines.

In general, challenging economic conditions increase the likelihood that borrowers will not have sufficient income to satisfy their mortgage obligations.

Despite our pricing actions, we may experience returns below our targeted returns.

To the extent that past or future Loss Mitigation Activities or claims paying practices impact our customer relationships, our competitive position could be adversely affected, resulting in the potential loss of business and impacting our results of operations.

In “Item 1A. Risk Factors,” see “—The current financial strength ratings assigned to our mortgage insurance subsidiaries could weaken our competitive position and potential downgrades by rating agencies to these ratings and the ratings assigned to Radian Group could adversely affect the Company.

and “—Radian Guaranty may fail to maintain its eligibility status with the GSEs, and the additional capital required to support Radian Guaranty’s eligibility could reduce our available liquidity.”

Challenging economic and market conditions or periods of economic stress and high mortgage defaults make it more difficult for servicers to effectively service the mortgage loans that we insure and could influence their approach to the loans they are servicing, including by reducing their abilities or willingness to undertake mitigation efforts that could help limit our losses.

As a result of uncertain domestic political conditions, including potential future federal government shutdowns, the possibility of the federal government defaulting on its obligations for a short period of time due to debt ceiling limitations or other unresolved political issues, investments in financial instruments issued or guaranteed by the federal government pose liquidity risks.

If the length of time that our mortgage insurance policies remain in force declines, it could result in a decrease in our future revenues.

As a result, our reinsurance arrangements do not fully eliminate our obligation to pay claims, and we have assumed counterparty credit risk with respect to our inability to recover amounts due from reinsurers.

Loss of Radian Guaranty’s eligibility status with the GSEs would have an immediate and material adverse impact on the franchise value of our Mortgage business and our future prospects, as well as a material negative impact on our future results of operations and financial condition.

Without a properly skilled and experienced workforce, our costs, including costs associated with a loss of productivity and costs to replace employees, may increase, and this could negatively impact our earnings.

Our NIW and franchise value could decline if we lose business from significant customers.

As the overall volume of new mortgage originations declines, we are subject to increased competition and we could experience a reduced opportunity to write new insurance business and provide our homegenius products and services, which could negatively affect our business prospects, results of operations and financial condition.

This environment, as well as potential further changes to this evolving environment, could negatively impact our franchise value, business prospects, results of operations and financial condition.

A decrease in the volume of mortgage originations could result in fewer opportunities for us to write new mortgage insurance business and conduct our homegenius businesses.

Any of these events may have a material adverse effect on our business, results of operations and financial condition.57Table of ContentsGlossaryPart I. Item 1A. Risk FactorsCurrently, the U.S. economy is experiencing a high rate of inflation, slower economic growth and the risk of a recession.

”Currently, federal budget deficit concerns and the potential for political conflict over legislation to raise the U.S. government’s debt limit may increase the possibility of a default by the U.S. government on its debt obligations, related credit-rating downgrades, or an economic recession in the United States.

The U.S. economy is currently experiencing a high rate of inflation, with annual inflation reaching a 40-year high in 2022, as well as slower economic growth, declining home prices and the risks of a recession and of higher unemployment rates.

In “Item 1A. Risk Factors,” see “—Radian Guaranty may fail to maintain its eligibility status with the GSEs, and the additional capital required to support Radian Guaranty’s eligibility could reduce our available liquidity.

Cancellations of our insurance policies as a result of prepayments and other reductions of IIF, such as Rescissions of coverage and claims paid, generally have a negative effect on premiums earned over time.

Related to Information Technology and Cybersecurity61Risks Related to Us and Our Subsidiaries Generally62Risks Related to the COVID-19 Pandemic6345Table of ContentsGlossaryPart I. Item 1A. Risk FactorsRisks Related to Regulatory MattersRadian Guaranty may fail to maintain its eligibility status with the GSEs, and the additional capital required to support Radian Guaranty’s eligibility could reduce our available liquidity.

Our NIW decreased by 26% in 2022 as compared to 2021, due primarily to lower refinance originations and a reduction in the size of the overall insurable market, partially offset by an increase in our market share in 2022.

In “Item 1A. Risk Factors,” see “—Our NIW and franchise value could decline if we lose business from significant customers.”homegeniusWe

Management’s Discussion and Analysis of Financial Condition and Results of Operationshomebuyers and a relatively constrained supply of homes available for sale.

Our Loss Mitigation Activity could negatively impact our customer relationships.

As a consequence, our results of operations could be negatively impacted if we are required to indemnify our customers for material underwriting errors in our contract underwriting services.

If we fail to receive mortgage insurance premiums following mortgage defaults, Radian Guaranty’s cash flow could be materially reduced, potentially requiring Radian Guaranty to liquidate investments at a loss to pay future claims or otherwise requiring us to alter our investment strategy.

The decrease in net premiums earned for 2022 compared to 2021 is primarily driven by a decrease in net premiums earned in both our mortgage insurance and title insurance businesses in 2022.

Because we depend on our investments as a source of revenue, a prolonged period of lower than expected investment yields would have an adverse impact on our revenues and could adversely affect our results of operations.

Given that the premium rates for our insurance subsidiaries are highly regulated, we could lose business opportunities and fail to successfully implement our business strategies if our rates are deemed non-compliant or are subject to investigation, if new rates and policy forms are not approved as may be required, or if we are otherwise unable to respond to competitor pricing actions and our customers’ demands in a timely and compliant manner.

For example, payment and foreclosure forbearance programs instituted at the federal and state levels in response to the COVID-19 pandemic have caused defaulted loans to remain in our defaulted loan inventory for a protracted period of time.

We expect to incur losses for future mortgage defaults beyond what we have reserved for in our financial statements.

Net premiums earned for 2022 decreased compared to 2021, primarily due to a decrease in new title policies written in our title insurance business.

As a result, our results of operations and financial condition could be negatively impacted.

In addition, a portion of the defaulted loans in our insured portfolio were originated in the years prior to the financial crisis and have been in default for an extended period of time.

Among other things, our failure to maintain adequate levels of capital in our mortgage insurance and title insurance subsidiaries could lead to intervention by the various insurance regulatory authorities, which could materially and adversely affect our business, business prospects and financial condition.

In “Item 1A. Risk Factors,” also see “—The credit performance of our mortgage insurance portfolio is impacted by macroeconomic conditions and specific events that affect the ability of borrowers to pay their mortgages” and “—Climate change and extreme weather events could adversely affect our businesses, results of operations and financial condition.”Mortgage

The loss of business from significant customers could have an adverse effect on the amount of new business we are able to write, and consequently, our franchise value.

Our businesses, results of operations and financial performance could be adversely impacted by climate change and extreme weather events, especially if these occurrences negatively impact the overall real estate market and the broader economy.

The models, assumptions and estimates we use to establish loss reserves may not prove to be accurate, especially in the event of an extended economic downturn or a period of market volatility and economic uncertainty, such as we are currently experiencing.

Any significant loss in our market share could negatively impact our mortgage insurance franchise, results of operations and financial condition.

This outlook anticipates a further decrease in refinance originations in 2023 resulting from increased interest rates.

These loss events are unpredictable and may require us to increase our title loss reserves and could adversely affect the financial performance of our homegenius segment; and■Our homegenius businesses operate in a highly competitive environment.

Losses could result if representations or warranties we make to purchasers are inaccurate, including representations or warranties made in reliance on inaccurate representations or warranties that are made to us.■The business of Radian Mortgage Capital subjects us to additional legal and regulatory requirements that we may fail to satisfy.

However, as discussed above, the ultimate profitability of Single Premium Policies may be higher or lower than expected due to the impact of prepayment speeds.

As future defaults are not currently reflected in our mortgage insurance loss reserves, our loss reserves could increase significantly in future periods if we experience a high volume of new defaults in future periods, which would negatively impact our results of operations and financial condition.

Higher levels of Claim Severity would increase our incurred losses and could negatively impact our results of operations and financial condition.

Further, new business initiatives may increase our exposure to interest rate risk and may involve changes in our investment, financing and hedging strategies; ■we may fail to achieve forecasted results for a strategic transaction or initiative that could result in lower or negative earnings contribution and/or impairment charges associated with intangible assets acquired; and■the risk of reputational harm if the strategic transaction or initiative fails to increase our market value.

Cybersecurity Risk ManagementInformation security is a significant operational risk for financial institutions such as Radian and includes the risk of loss resulting from cyberattacks.

Downgrades to the ratings of our mortgage insurance subsidiaries and Radian Group could adversely affect our cost of funds, liquidity, access to capital markets and competitive position.

We expect this trend to continue to impact the results of our homegenius segment in at least the near-term based on current market conditions and our expectation that overall refinance volumes will remain low.

The increase in our Persistency Rate in 2022 was primarily attributable to the decline in refinance activity due to increases in mortgage interest rates, as compared to the prior year.

■We have an interest rate risk hedging program and seek to hedge interest rate risks associated with our acquisition of mortgage assets; however, changes in interest rates, securities spreads and other factors could cause net losses on the mortgage assets and our hedge position.

As discussed above under “—Radian Guaranty may fail to maintain its eligibility status with the GSEs, and the additional capital required to support Radian Guaranty’s eligibility could reduce our available liquidity,” compliance with the PMIERs financial requirements could impact our holding company liquidity if additional capital support for Radian Guaranty is required for it to maintain this compliance.

If we are unable to compete effectively in the current or any future markets as a result of the financial strength ratings assigned to our mortgage insurance subsidiaries, the franchise value and future prospects for our mortgage insurance business could be negatively affected.

Among other factors, interest rate changes, market volatility and declines in the value of underlying collateral will impact the value of our investments, potentially resulting in unrealized losses that could negatively impact our results of operations and stockholders’ equity.

As a result, if we are unable to compensate for or offset the increased capital requirements in other ways, the returns on our business may be lower than we assumed or expected.

For more information regarding the CFPB’s proposed New General QM Definition and the risks it may present for us, in “Item 1A. Risk Factors,” see “—A decrease in the volume of mortgage originations could result in fewer opportunities for us to write new mortgage insurance business and conduct our homegenius businesses.

If we underestimate our future claim payments or other liabilities or improperly structure our investments to meet these liabilities, we could have unexpected losses resulting from the forced liquidation of investments before their maturity, which could adversely affect our results of operations.

Future volatility may occur due to, among other things, declining home prices, the risk of higher unemployment rates and political conditions, including debate over raising the U.S. debt limit, among other factors.

In the past, changes to our loss reserve estimates have, and could again in the future, adversely impact our results of operations and financial condition.

Declining housing values also may impact the effectiveness of our loss mitigation actions.

When the credit environment deteriorates, the risk of impairments of our investments increases.

In light of Radian Group’s short- and long-term needs, it is possible that our sources of liquidity could be insufficient to fund its obligations.

Management’s Discussion and Analysis of Financial Condition and Results of Operationsprofit, respectively, or could incur a loss.

Further, future updates to the Model Act or PMIERs, including potentially to better align with the ERCF and the proposed liquidity requirements for the GSEs, could restrict our investment choices, which could negatively impact our investment strategy.

Accordingly, we may be forced to incur additional expenses for reinsurance or may not be able to obtain sufficient reinsurance on acceptable terms, which could cause us to increase the amount of risk we retain, negatively affect the returns we are able to achieve on the business we write and adversely affect our ability to write future business.

If these or other factors cause a decrease in the length of time that our Recurring Premium Policies, for which we expect to receive premiums in the future, remain in force, our future revenues could be negatively impacted, which could negatively impact our results of operations and financial condition.

Higher interest rate environments generally decrease refinancings, which decrease the cancellation rate of our insurance and positively affect our Persistency Rates.

We believe that better execution for borrowers with higher FICO scores and the inability to cancel FHA insurance for certain loans, in conjunction with the preference of certain lenders to execute through the GSEs, have served as competitive advantages for private mortgage insurance as compared to FHA insurance.

We believe that the VA remains a strong participant in the overall market because the VA insures 100% LTV loans, which is unavailable through private mortgage insurance and the FHA, charges a one-time funding fee that can be included in the loan amount with no separate monthly payment, and because of an increase in the number of borrowers that are eligible for the VA’s program.

We expect that our approach to selling our products across our mortgage and real estate services businesses will strengthen our relationships with customers, attract new customers and enhance our ability to compete.

At the same time, we also expect to benefit from the higher interest rate environment through higher Persistency Rates that will favorably impact our IIF, as well as through the recognition of higher net investment income, as further discussed below.

While expectations for refinance volume vary, there is an industry-wide consensus that we should expect a healthy purchase market in 2023 driven by ongoing homebuyer demand, which is a positive for mortgage insurers given the higher likelihood that purchase loans will utilize private mortgage insurance as compared to refinance loans.

Given the recent increase in market mortgage interest rates, which, based on reported industry averages, now exceed that level, we would expect a continued positive impact on our Persistency Rates.

these risks and uncertainties are elevated in the near-term, we continue to believe that the long-term housing market fundamentals and outlook remain positive, including demographics supporting growth in the population of first-time 74Table of ContentsGlossaryPart II.

In addition, historical loan performance data indicates that credit scores and underwriting quality are key drivers of credit performance, and loan originations after 2008 have consisted primarily of high credit quality loans with significantly better credit performance than loans originated during 2008 and prior periods.

We also regularly consider various measures to improve our capital and liquidity positions, as well as to strengthen our balance sheet, improve Radian Group’s debt maturity profile and maintain adequate liquidity for our operations.

We believe that the combination of this broad set of diversified homegenius products and services, together with our mortgage credit products and solutions is unique, and positions us to satisfy the multiple needs of our customers, and as a result, to become a more valuable partner to our customers.

believe that through our homegenius segment we are positioned as a unique provider of an array of products and services to participants across the real estate value chain.

Management’s Discussion and Analysis of Financial Condition and Results of Operations In particular, we believe that the range of risk distribution transactions and strategies that we utilize have increased our financial strength and flexibility by mitigating credit risk and financial volatility through varying economic cycles.

We believe, for example, that given current pricing levels, which are subject to change, the generally better execution available through the GSEs for borrowers with higher FICO scores, lender preferences and the inability to cancel FHA insurance for certain loans are factors that currently provide a competitive advantage for private mortgage insurers.

IIF at December 31, 2022, increased as compared to the same period last year, due to the positive impact from our NIW in 2022 and higher Persistency Rates, as further discussed below.

There are no similar restrictions on the points and fees associated with FHA premiums, and thus FHA has a market advantage for smaller balance loans where the 3% cap is more easily reached.

Aided by the positive impacts of its merger with Radian Reinsurance in December 2022, Radian Guaranty had positive unassigned surplus of $258 million as of December 31, 2022.

Utilization of our delegated underwriting program enables us to meet lenders’ demands for immediate decisions on mortgage insurance coverage and increases the efficiency of their underwriting process.

Although not reflected in the current period financial statements, nor in our reported book value, we expect our IIF to generate substantial earnings in future periods due to the high credit quality of our current mortgage insurance portfolio and our expectations for future Persistency Rates.

Because premiums on our Recurring Premium Policies are earned over time, higher Persistency Rates on these policies increase the premiums we receive and generally result in increased profitability and returns.

Longer-term, however, we continue to believe that the housing market fundamentals and outlook remain favorable, including demographics supporting growth in the population of first-time homebuyers and a constrained supply of homes available for sale.

Our provision for losses during 2022 and 2021 was positively impacted by favorable reserve development on prior year defaults, primarily as a result of more favorable trends in Cures than originally estimated due to favorable outcomes resulting from mortgage forbearance programs implemented in response to the COVID-19 pandemic as well as positive trends in home price appreciation.

If refinance volume declines, we would expect the Persistency Rate for our portfolio to increase, benefiting the size of our IIF portfolio.

However, subsequent trends in Cures have been more favorable than original expectations, resulting in favorable loss reserve development on prior period defaults in 2021 and in 2022.

Our mortgage insurance provision for losses improved by $358.8 million during 2022 compared to 2021, resulting in a benefit of $339.4 million for the year ended December 31, 2022.

Our community-based program, Radian Connected, provides opportunities for employee engagement and community involvement, including volunteerism and opportunities for learning and skill development, as well as social opportunities to network and build stronger working relationships.

Slower loan prepayment speeds, demonstrated by a higher Persistency Rate, result in more IIF remaining in place, providing increased revenue from Monthly Premium Policies over time as premium payments continue.

Given the range of solutions we offer across our businesses, we believe we have opportunity to expand our sales to our existing customer base as well as to new customers.

We are committed to providing equal employment opportunities and promoting inclusive hiring practices, developing targeted recruitment strategies and improving internal reporting capabilities.

Home price appreciation as well as pre-foreclosure sales, acquisitions and other early workout efforts help to reduce overall Claim Severity, as do actions we may take to reduce a claim payment due to servicer negligence, as discussed below in “—Claims Management.”

See “Regulation—Federal Regulation—Housing Finance Reform and the GSEs’ Business Practices” for a discussion of factors that could enhance the FHA’s competitive position relative to private mortgage insurance.

We believe that this commitment to our communities helps in our efforts to attract and retain employees.

Our use of risk distribution structures has reduced our required capital and enhanced our projected return on capital, and we expect these structures to provide a level of credit protection in periods of economic stress.

We invest in our people to provide opportunities for career growth.

We value our employees by supporting a healthy work-life balance and a team-oriented, One Radian environment.

This company-wide commitment to affordable, sustainable and equitable homeownership, along with our support of our customers, our employees and the communities where we live and work, defines who we are as an enterprise and aligns with our core organizational values: Deliver the Brand Promise, Innovate for the Future, Create Shareholder Value, Our People are the Difference, Do What’s Right and Partner to Win.

Our results included an 83% employee participation rate and an engagement score of 84, both higher than the benchmark 75% participation rate and 79 engagement score provided by our third-party employee engagement provider.

Increasing yields from higher interest rates were the primary driver of the increases in net investment income for 2022 compared to 2021.

These arrangements reduce our earned premiums but also reduce our net RIF, which provides capital relief, including under the PMIERs financial requirements.

BusinessHuman Capital ManagementFor 45 years at Radian, our products and services have responsibly helped millions of families achieve their dream of homeownership.

The PMIERs aim to ensure that approved insurers will possess the financial and operational capacity to serve as strong counterparties to the GSEs throughout various market conditions.

Our Excess-of-Loss Program reduces our earned premiums, but also reduces our net RIF and PMIERs financial requirements, and potentially our incurred losses, which are allocated in accordance with the structure of the transaction.

These processes help management identify and nurture top talent for leadership opportunities and support the growth and development of knowledge and skills of our employees, managers and leaders.

The objectives of our risk distribution strategy include: (i) supporting our overall capital plan by reducing our cost of capital, increasing capital efficiency and enhancing our projected returns on capital and (ii) reducing portfolio risk and financial volatility through economic cycles.

While these arrangements have the impact of reducing our earned premiums, they also reduce our required capital, potentially mitigate losses, and are expected to increase our return on required capital for the related policies.

Our increased use of reinsurance over the past several years has helped to mitigate the negative effect of declining premium rates on our expected returns.

We strive to offer competitive compensation and benefits programs as well as career development opportunities, while fostering a community where everyone feels included and empowered to do their best work and is encouraged to give back to their communities to make a social impact.

NIW and Related DriversNIW increases our IIF and our premiums written and earned.

Based on publicly available information, we estimate that our share of NIW within the private mortgage insurance market was approximately 17% for 2022.Certain of our private mortgage insurance competitors currently have better financial strength ratings than we have and/or are subsidiaries of larger corporations, which may give them a competitive advantage.

Dependable servicing is necessary for timely billing and premium payments to us and effective loss mitigation opportunities for delinquent or near-delinquent mortgage loans.

Those amounts compare to Available Assets and a PMIERs cushion of $5.4 billion and $2.1 billion, respectively, at December 31, 2021.The primary driver of the decrease in Radian Guaranty’s PMIERs Cushion during 2022 is the increase in Minimum Required Assets, partially offset by the increase in Available Assets, reflecting positive cash flows from operating activities.

As a result, our pricing is expected to generate relatively consistent returns across the credit spectrum.

While the recent increases in mortgage interest rates have significantly reduced refinance demand, they have also resulted in a decrease in policy cancellations, which has increased our Persistency Rate, and in turn contributed to growth in our IIF.

Consistent with our stated strategy, Radian Mortgage Capital expands our capabilities to participate in the mortgage market to aggregate, manage and distribute residential mortgage credit risk.

By focusing all employees on the importance of our DEI efforts, we can continue to advance a culture of inclusion and respect.

Our PMIERs Cushion at December 31, 2022, also includes a benefit from the current broad-based application of the Disaster Related Capital Charge that has reduced the total amount of Minimum Required Assets that Radian Guaranty otherwise would have been required to hold against pandemic-related defaults by approximately $200 million and $300 million as of December 31, 2022 and 2021, respectively, taking into consideration our risk distribution structures in effect as of those dates.

Dependable loan servicing is necessary for, among other things, timely billing and premium payments to us and effective loss mitigation opportunities for delinquent or near-delinquent loans.

These favorable observed trends resulted in reductions in our Default to Claim Rate assumptions for prior year default notices, particularly for those defaults first reported in 2020 following the start of the COVID-19 pandemic.

Diversity, Equity and InclusionAt Radian, we are committed to an inclusive and diverse workplace, as represented by our Employee Value Promise—We See You at Radian.

We leverage loan application data and analytics to categorize mortgage insurance applications based on credit risk and underwriting complexity to improve efficiency in our process and to ensure a heightened focus on the higher-risk, complex applications.

We have an Information Security Committee comprised of Company executives, cross-functional Incident Response teams and strong governance mechanisms designed to ensure compliance with our security policies and protocols.

In 2020, we created a framework for and launched Radian’s Employee Resource Group (“ERG”) program, which is an important aspect of Radian’s DEI efforts because it not only creates inclusive communities where employees feel support, but it enriches our overall company culture.

Our asset management solutions help real estate investors and lenders improve execution on their real estate properties.

We believe the diversity of services we offer has the potential to produce fee income from the homegenius segment throughout various mortgage finance environments and economic cycles, although market conditions can significantly impact the mix and amount of fee income we generate in any particular period.

Conversely, this higher interest rate environment resulted in the recognition of higher net investment income in 2022, which is expected to continue in future periods.

Accordingly, we have a counterparty risk management team that leverages our customer and servicer segmentation framework so that we can more effectively perform ongoing monitoring of loan performance, underwriting quality and the risk profile and mix of business of a customer’s mortgage insurance applications.

Although these cancellations reduce IIF, assuming all other factors remain constant, the profitability of our Single Premium business increases when Persistency Rates are lower.

Management’s Discussion and Analysis of Financial Condition and Results of OperationsNew Insurance WrittenA key component of our current business strategy is to write NIW that we believe will generate future earnings and economic value while effectively maintaining the portfolio’s health, balance and profitability.

Among other benefits, our risk distribution transactions reduce our required capital, including by significantly reducing our Required Minimum Assets under the PMIERs.

Our business strategy includes leveraging our core expertise in credit risk management to expand our presence in the mortgage finance industry, including by pursuing alternatives to traditional mortgage insurance execution to expand our insured portfolio of mortgage credit.

Our compensation programs are designed to attract, retain and reward talented individuals from diverse backgrounds who possess the skills and qualities necessary to support our business objectives, demonstrate our values, assist in the achievement of our strategic goals and create long-term value for our stockholders.

As part of our claims management process, we pursue opportunities to mitigate losses both before and after we receive claims, including processes to ensure claims are valid.

We monitor various competitive and economic factors while seeking to enhance the long-term value of our mortgage insurance portfolio by balancing credit risk, profitability, and volume and capital considerations in developing our pricing strategies.

MortgageOverviewPrivate mortgage insurance plays an important role in the U.S. housing finance system because it promotes affordable homeownership, while helping to protect mortgage lenders, investors and the GSEs, who are the primary beneficiaries of our mortgage insurance, by mitigating default-related losses on residential mortgage loans.

For Radian, customer service also includes our ability to offer products and services through our homegenius businesses that are relevant to our mortgage insurance customers and complement our mortgage insurance products.

These regulations are intended to protect policyholders against the adverse effects of excessive, inadequate or unfairly discriminatory rates and to encourage fair competition in the insurance marketplace.

have developed our pricing strategy to manage the risk/return profile and maximize the long-term economic value of our insured portfolio by balancing credit risk, profitability and volume considerations in light of the current and projected competitive environment.

In contrast, under Director Thompson, the FHFA has been focused on increasing the equitable accessibility and affordability of mortgage credit, in particular to low- and moderate-income borrowers and underserved communities, while also continuing to ensure the safety and soundness of the GSEs.

In addition, our reinsurance programs are designed to provide additional claims-paying resources during times of economic stress and elevated losses.

The shift away from a predominantly standard rate-card based pricing model and the increase in “black box” pricing frameworks throughout the mortgage insurance industry provides a more dynamic pricing capability that allows for more frequent pricing changes that can be implemented quickly and has contributed to a reduction in overall pricing transparency.

Radian Group Inc.  is a mortgage insurance company with a suite of mortgage, risk, real estate, and title services. The company is headquartered at Centre Square in Philadelphia.

Radian Group Inc., together with its subsidiaries, engages in the mortgage and real estate services business in the United States. The company operates in two segments, Mortgage Insurance and Services. The Mortgage Insurance segment offers credit-related insurance coverage, primarily through private mortgage insurance on residential first-lien mortgage loans, as well as other credit risk management solutions to mortgage lending institutions and mortgage credit investors. This segment primarily serves mortgage bankers, commercial banks, savings institutions, credit unions, and community banks. The Services segment offers mortgage services, including transaction management services, such as loan review, residential mortgage-backed securities securitization and distressed asset reviews, review and valuation services related to single family rental properties, servicer and loan surveillance, and underwriting; real estate services comprising real estate owned asset management, and real estate valuation and brokerage services, as well as software as a service solutions and platforms; and title services that include title insurance products, and closing services. This segment provides its mortgage and real estate services to mortgage lenders, financial institutions, investors, government entities, and others. The company was founded in 1977 and is headquartered in Philadelphia, Pennsylvania.

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Prudential Financial (PRU) stands to gain from higher emerging markets earnings, improved spread income, strategic acquisitions, effective capital deployment and a solid financial position.

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Should SPDR S&P 600 Small Cap Value ETF (SLYV) Be on Your Investing Radar?

Radian (RDN) is poised to gain from improving mortgage insurance portfolio, declining claims, the well-performing homegenius segment, a solid capital position and effective capital deployment.

Radian (RDN) Up 35% YTD: Should You Buy It for Better Return?

Assurant (AIZ) stands to gain from increasing Global Automotive business, higher average insured values, improved invested assets, favorable growth estimates and effective capital deployment.

Here's Why Hold Strategy Is Apt for Assurant (AIZ) Stock Now

MGIC Investment (MTG) stock rallies on the back of higher insurance in force, a decline in loss and claims payments, better housing market fundamentals and a solid capital position.

MGIC Investment (MTG) Rises 31.6% YTD: More Room to Run?

Riding on product diversification, better pricing, favorable reserve development and solid capital position, undervalued insurers like AXS, RDN and EG are poised to fetch better returns.

3 Value Stocks to Bet on From Undervalued Insurance Space

Prudential (PRU), Warburg Pincus and a group of investors form Prismic, which will have $10 billion initial reinsurance transaction and $1 billion equity capital investment.

Prudential (PRU), Warburg Pincus Form Prismic Life Reinsurance

Lemonade (LMND) stands to gain from an improvement in continued shift in the mix of underlying products toward higher value policies and installment fees and a robust capital position.

Reasons Why Lemonade (LMND) Stock is an Attractive Pick Now

J. Scott Penny, Chief Acquisitions Officer of Brown &amp; Brown, Inc. (BRO), and Dennis and Dawn Swit, the owners of LP Insurance Services LLC (“Loan Protector”), today announced that Brown &amp; Brown, Inc.

Brown &amp; Brown, Inc. Enters Into Agreement to Acquire Loan Protector <b>Insurance</b> Services

Private U.S. health insurers agreed to extend coronavirus treatment coverage in all of their plans and waive co-payment fees for testing, Vice President Mike Pence said on Tuesday, as the White House came under growing pressure to help those hurt by the outbreak.

(USD)	Jun 2023	Q/Q
Revenue	290.4MM	-7%
Operating Income	182.7MM	-10%
Operating Expenses	107.7MM	-
Net Income	146.1MM	-7%
Amortization	1.4MM	-0%
Interest Expense	22.6MM	+2%