Radian Group’s shares increased by 57.26% in the last year, besting the wider multiline industry’s growth of 24.07%. Its mortgage insurance portfolio – a huge bulk of profitable business written in 2008 – is expected to serve as its “strong foundation for future earnings.”
The group also expects its “net insurance written to exceed $48 billion in 2016 due to market growth, the record level of new business written, and a number of new businesses in the pipeline,” Zacks reported.
Claims paid for the whole of 2016 are anticipated to total around $375 million, in part due to a decrease in claim payments over the years.
It also remains true to its commitment to cost control – its core operating expenses in the last quarter of 2016 is expected to decline by 3-5% from the previous year’s level.
According to Zacks, the group’s “inorganic growth continues to impress.”
“We expect the company’s inorganic growth initiatives to continue diversifying the company’s revenue stream and expanding its business beyond the boundaries of traditional mortgage insurance,” Zacks said.
Radian Guaranty and LendingQB strengthens MI and lending partnership
WalletHub: FHA premiums costs borrowers as much as $12,000 in 2014
Radian Group is expecting more growth after continuous gains last year, according to Zacks Equity Research.