Q1 adjusted pretax income of $125.3M or $0.37 per share vs. $130.2M and $0.37 a year ago. Expectations had been for $0.43.
Net premiums earned of $221.8M flat from a year ago; new mortgage insurance written of $10B, up 25%.
MI in force of $185.9B up 6%; persistency of 77.1% down from 79.4% a year ago.
Provision for losses of $47.2M vs. $43.3M a year ago; loss ratio of 21.3% up from 19.6%. Total primary delinquent loans down 16.4% Y/Y.
At issue for the miss appears to be operating expenses - up to $68.4M from $57.2M a year ago. $3.6M of this has to do with the retirement of the CEO, and another $3.7M of this was an increase in variable and incentive-based compensation vs. a decrease a year ago.
Book value per share of $13.58 up 9% Y/Y.
Radian (RDN -10.2%)
Previously: Radian Group misses by $0.06, misses on net premiums earned (April 27)