Radian Group Inc (RDN) has reported 18.03 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $61.09 million, or $0.27 a share in the quarter, compared with $74.53 million, or $0.32 a share for the same period last year. Revenue during the quarter went down marginally by 0.16 percent to $274.45 million from $274.88 million in the previous year period.
Total expenses move up marginally
Operating income for the quarter was $97.80 million, compared with $104.71 million in the previous year period. However, the adjusted operating income for the quarter stood at $140.22 million compared to $124.11 million in the prior year period. At the same time, adjusted operating margin improved 594 basis points in the quarter to 51.09 percent from 45.15 percent in the last year period.
Net investment income was at $29 million for the quarter, up 26.99 percent or $6.16 million from year-ago period. Meanwhile, income from fees and commission for the quarter jumped 30.17 percent or $11.57 million to $49.90 million. The company has booked a loss on investments of $38.77 million in the quarter compared with a loss of $13.40 million for the previous year period.
“Our strong fourth quarter performance contributed to a solid 2016 for Radian,” said Radian’s Chief Executive Officer S.A. Ibrahim. “In 2016, we successfully grew book value by 11%, improved our capital structure and achieved our targeted expense goals, while setting new records for writing our highest volume of high-quality and profitable flow MI business in Radian’s history.”
Assets grow, liabilities fall
Total assets increased 3.92 percent or $221.07 million to $5,863.17 million on Dec. 31, 2016. On the other hand, total liabilities were at $2,990.89 million as on Dec. 31, 2016, down 4.91 percent or $154.28 million from year-ago. Return on assets stood at 1.34 percent in the quarter, down 0.36 from 1.69 percent in the last year period. At the same time, return on equity was at 2.13 percent in the quarter, down 0.86 from 2.98 percent in the last year period.
Investments move up marginally
Investments stood at $4,462.43 million as on Dec. 31, 2016, up 3.81 percent or $163.74 million from year-ago. Meanwhile, yield on investments went up 12 basis points to 0.65 percent in the quarter. Total debt was at $1,069.54 million as on Dec. 31, 2016, down 12.29 percent or $149.92 million from year-ago. Shareholders equity stood at $2,872.29 million as on Dec. 31, 2016, up 15.03 percent or $375.36 million from year-ago. As a result, debt to equity ratio went down 12 basis points to 0.37 percent in the quarter from 0.49 percent in the last year period.
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