Radian Group Inc. reported that new written mortgage insurance dropped 4% to $15.8 billion in the third quarter, from $16.4 billion in the second quarter of 2018. That’s an increase year over year of 4 percent ($15.1 billion).
Of the $15.8 billion, borrower-paid originations accounted for 91 percent of total compared to 89 percent in the second quarter of 2018, and 78 percent a year ago. Purchase originations accounted for 96 percent in the third quarter, compared to 95 percent in the second quarter of 2018, and 91 percent a year ago.
Total primary mortgage insurance in force as of September 30, 2018, grew to $217.1 billion, an increase of 3 percent compared to $210.7 billion as of June 30, 2018, and an increase of 10 percent compared to $196.5 billion as of September 30, 2017.
The composition of Radian’s mortgage insurance portfolio is 94 percent consisting of new business written after 2008, including those loans that successfully completed the Home Affordable Refinance Program.
Persistency, which is the percentage of mortgage insurance that remains in force after a 12-month period, was 81.4 percent as of September 30, 2018, compared to 80.9 percent as of June 30, 2018, and 80.0 percent as of September 30, 2017.
Net mortgage insurance premiums earned were $255.5 million for the quarter ended September 30, 2018, compared to $249.0 million for the quarter ended June 30, 2018, and $236.7 million for the quarter ended September 30, 2017.
The mortgage insurance provision for losses was $20.7 million in the third quarter of 2018, compared to $19.4 million in the second quarter of 2018, and $36.0 million in the prior-year quarter.
Companywide, net income for the quarter ended September 30, 2018, of $142.8 million, or $0.66 per diluted share. This compares to net income for the quarter ended September 30, 2017, of $65.1 million, or $0.30 per diluted share. Results for the third quarter of 2017 include $45.8 million of pretax loss on induced conversion and debt extinguishment. Also, third quarter adjusted operating earnings per share of 0.71 cents, or a 13 percent increase, compared with 0.46 cents in the same period a year ago.
