Research Desk Line-up: Sun Life Financial Post Earnings Coverage
LONDON, UK / ACCESSWIRE / August 17, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Radian Group Inc. (NYSE: RDN), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=RDN, following the Company's release of its second quarter fiscal 2017 operating results on August 01, 2017. The mortgage insurer outperformed expectations, while its Book Value increased 3% on a y-o-y basis. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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Get more of our free earnings reports coverage from other constituents of the Property & Casualty Insurance industry. Pro-TD has currently selected Sun Life Financial Inc. (NYSE: SLF) for due-diligence and potential coverage as the Company announced on August 09, 2017, its financial results for Q2 2017 which ended on June 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on Sun Life Financial when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on RDN; also brushing on SLF. With the links below you can directly download the report of your stock of interest free of charge at:
http://protraderdaily.com/optin/?symbol=RDN
http://protraderdaily.com/optin/?symbol=SLF
Earnings Reviewed
For the second quarter fiscal 2017, Radian reported totaled revenues of $302.91 million compared to revenue of $288.75 million in Q2 2016.
For Q2 2017, Radian's adjusted pretax operating income was $163.7 million compared to $131.4 million for the quarter ended June 30, 2016. Adjusted diluted net operating income per share for the quarter ended June 30, 2017, was $0.48, a 26% increase compared to $0.38 for Q2 2016. The Company's operating income exceeded Wall Street's estimates of $0.40 per share.
Radian reported net loss $27.3 million, or $0.13 per diluted share, for Q2 2017 compared to net income of $98.1 million, or $0.44 per diluted share, for Q2 2016. Net loss in the reported quarter was attributable to after-tax, non-cash impairment charges of $130.9 million associated with an impairment of goodwill and other intangible assets related to its Services segment.
The Company's book value per share increased 3% to $13.54 compared to $13.09 at June 30, 2016. Tangible book value per share at June 30, 2017, was $13.22 compared to $11.77 at June 30, 2016.
Mortgage Insurance
During Q2 2017, Radian's new mortgage insurance written (NIW) grew to $14.3 billion, reflecting an increase of 11% compared to $12.9 billion in Q2 2016. NIW for the month of June 2017 represented record monthly volume written on a flow basis for the Company. Of the $14.3 billion in new business written in the reported quarter, 23% was written with single premiums, while net single premiums were 15% of new business written in Q2 2017.
Radian's total primary mortgage insurance in force as of June 30, 2017, grew to $191.6 billion, an increase of 8% compared to $177.7 billion as of June 30, 2016. Persistency, which is the percentage of mortgage insurance that remains in force after a twelve-month period, was 78.5% as of June 30, 2017, compared to 79.9% as of June 30, 2016. Annualized persistency for the three-months ended June 30, 2017, was 82.8% compared to 78.0% for the three-months ended June 30, 2016.
For Q2 2017, Radian's total net premiums earned were $229.1 million compared to $229.1 million for the quarter ended June 30, 2016.
Radian's direct mortgage insurance premium yield was 52 basis points in Q2 2017 compared to 56 basis points in Q2 2016. Total net mortgage insurance premium yield, which included the impact of ceded premiums and accrued profit commission, was 49 basis points in the reported quarter compared to 52 basis points in the prior year's same quarter.
During Q2 2017, Radian's total number of primary delinquent loans decreased by 20% on a y-o-y basis. The total number of primary new notices of default had decreased by 10% from Q2 2016. The Company's primary mortgage insurance delinquency rate decreased to 2.6% in Q2 2017 compared to 3.4% in Q2 2016. Radian's loss ratio in the reported quarter was 7.7% compared to 21.9% in the year earlier corresponding quarter.
Mortgage and Real Estate Services
Radian's total revenues from the Mortgage and Real Estate Services segment were $40.0 million during Q2 2017 compared to $42.2 million for Q2 2016. The adjusted pretax operating income before corporate allocations for the reported quarter was $1.2 million compared the income of $1.5 million for the year ago same quarter.
Services adjusted earnings before interest, income taxes, depreciation and amortization (EBITDA) for the reported quarter was $2.0 million compared to income of $2.2 million for Q2 2016.
Capital and Liquidity Update
Radian maintained approximately $360 million of available liquidity as of June 30, 2017. During Q2 2017, the Company completed negotiated purchases of aggregate principal amounts of approximately $21.6 million of its outstanding 3.00% Convertible Senior Notes due 2017, for cash consideration of $31.6 million. As of June 30, 2017, Radian had only $0.6 million of convertible senior notes outstanding. The Company has no material debt maturities prior to June 2019.
Stock Performance
At the closing bell, on Wednesday, August 16, 2017, Radian's stock marginally climbed 0.47%, ending the trading session at $17.27. A total volume of 1.24 million shares have exchanged hands. The Company's stock price rallied 2.86% in the last three months and 28.78% in the previous twelve months. The stock is trading at a PE ratio of 20.18 and has a dividend yield of 0.06%. The stock currently has a market cap of $3.75 billion.
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SOURCE: Pro-Trader Daily