Radian Group Inc (RDN) has reported a 15.43 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $76.47 million, or $0.34 a share in the quarter, compared with $66.25 million, or $0.29 a share for the same period last year. Revenue during the quarter dropped 7.73 percent to $288.75 million from $312.95 million in the previous year period.
Total expenses come down
Operating income for the quarter was $114.67 million, compared with $102.40 million in the previous year period. However, the adjusted operating income for the quarter stood at $125.28 million compared to $130.22 million in the prior year period. At the same time, adjusted operating margin improved 178 basis points in the quarter to 43.39 percent from 41.61 percent in the last year period.
Net investment income was at $31.03 million for the quarter, up 14.08 percent or $3.83 million from year-ago period. Meanwhile, income from fees and commission for the quarter increased by 15.76 percent or $5.18 million to $38.03 million. The company has booked a loss on investments of $2.85 million in the quarter compared with a gain of $31.29 million for the previous year period.
“I am pleased to report strong first quarter results for Radian, including year over year growth in net income, book value and new MI business written,” said Radian’s chief executive officer Rick Thornberry. “As persistency rises, we expect our large, high-quality MI in-force portfolio to grow and generate future premium revenue. This is the primary driver of future earnings for Radian.”
Assets, liabilities fall
Total assets decreased 2.37 percent or $141.63 million to $5,827.76 million on Mar. 31, 2017. On the other hand, total liabilities were at $2,906.45 million as on Mar. 31, 2017, down 12.17 percent or $402.54 million from year-ago. Return on assets stood at 1.59 percent in the quarter, up 0.12 from 1.47 percent in the last year period. At the same time, return on equity was at 2.62 percent in the quarter, up 0.13 from 2.49 percent in the last year period.
Investments come down marginally
Investments stood at $4,437.72 million as on Mar. 31, 2017, down 0.73 percent or $32.46 million from year-ago. Meanwhile, yield on investments went up 9 basis points to 0.70 percent in the quarter. Total debt was at $1,008.78 million as on Mar. 31, 2017, down 21.59 percent or $277.69 million from year-ago. Shareholders equity stood at $2,920.42 million as on Mar. 31, 2017, up 9.77 percent or $260.03 million from year-ago. As a result, debt to equity ratio went down 14 basis points to 0.35 percent in the quarter from 0.48 percent in the last year period.
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