What the changes say
- Newly acquired Inigo and Lloyd’s operations bring expanded U.K., Society of Lloyd’s and international regulatory oversight.
- Specialty Insurance faces more explicit exposure to inflation, tariffs, competition, reinsurance constraints, catastrophes, cyberattacks and geopolitical events.
- Mortgage Conduit now highlights borrower defaults, interest-rate movements and secondary-market disruption before loans are sold or securitized.
- Radian removed several mortgage-insurance, title, servicing, modeling, climate and PMIERs-specific risks while retaining related themes elsewhere.
What changed since the prior 10-K
New
- NewRisks Related to Regulatory Matters
See “Item 1. Business—Regulation—State Regulation” for more information on regulatory requirements applicable to our mortgage insurance subsidiaries and potential further changes to existing requirements
Inigo, Syndicate 1301 and other international subsidiaries face PRA, FCA, Society of Lloyd’s and foreign regulatory requirements.
- NewRisks Related to our Business Operations
insurance. The premium structure we apply is subject to approval by state regulatory agencies, which can delay or limit our ability to increase our premiums if further filings or approvals are necessary to institute pricing adjustments
Radian may be unable to reprice in-force mortgage insurance when losses or required capital increase, reducing returns and financial performance.
- NewRisks Related to our Business Operations
We establish our reserves for losses in our insurance businesses based on models, assumptions and estimates, which are subject to inherent uncertainties, and if incorrect, may result in us being required to take unexpected charges to income, which could adversely affect our results of operations
Incorrect actuarial models, assumptions or estimates could cause unexpected insurance loss-reserve charges, especially during economic downturns and market volatility.
- NewRisks Related to our Business Operations
If our loss limitation strategy in our Specialty Insurance business is unsuccessful it could have a material adverse effect on our results of operations, financial condition or liquidity
Specialty Insurance loss controls, including line limits, reinsurance, catastrophe bonds and geographic diversification, may fail to contain losses.
- NewRisks Related to our Business Operations
Reinsurance may not be available, affordable or adequate to protect us against losses
Reinsurance may become unavailable, expensive or insufficient, leaving Radian with more retained risk and exposure to reinsurer nonpayment or disputes.
- NewRisks Related to our Business Operations
Our Specialty Insurance business faces competition and that competition could increase due to merger and acquisition activity in the industry
Specialty Insurance competition, including industry consolidation, new entrants and capital-markets products, could reduce volume, pricing and customer retention.
- NewRisks Related to our Business Operations
The effects of inflation, trade and tariff disputes and global economic conditions impact the specialty insurance and reinsurance industry in ways which may negatively impact our business, financial condition and results of operations
Inflation and broader economic conditions could make Specialty Insurance pricing and long-tail loss reserves inadequate.
- NewRisks Related to our Business Operations
The impact of inflationary pressures on our Specialty Insurance business may be exacerbated during certain property and casualty insurance underwriting pricing cycles driven by loss activity and supply and demand across the market
Tariffs, trade disputes and policy actions could weaken insured industries and create unpredictable effects during property-and-casualty pricing cycles.
- NewRisks Related to our Business Operations
We are exposed to credit risk through our direct investment in residential real estate mortgage loans. During the aggregation period and before sale or securitization, we assume the risk that the related borrowers may default on their obligations to make full and timely payments of principal and interest
Before sale or securitization, Radian bears borrower default, interest-rate, mortgage-market liquidity and inventory-financing risks on residential loans.
- NewRisks Related to the Economic Environment
Global economic conditions could adversely affect our business, results of operations or financial condition
Inflation, interest rates, recession, tariffs and geopolitical conditions could reduce insurance demand, disrupt counterparties, limit capital access and hurt investments.
- NewRisks Related to the Economic Environment
In our Specialty Insurance business, we could face losses from geopolitical tensions, hostilities, war, terrorism, pandemics, cyberattacks and general political instability, and these or other unanticipated losses could have a material adverse effect on our financial condition and results of operations
Specialty Insurance could suffer unpredictable losses from war, terrorism, political instability, pandemics, cyberattacks and conflicts including Ukraine and the Middle East.
- NewRisks Related to the Economic Environment
Our business is subject to laws and regulations relating to economic trade sanctions and foreign bribery laws, the violation of which could adversely affect our operations
Global insurance operations must comply with evolving U.S., U.K., EU and U.N. sanctions, anti-bribery and financial-crime rules.
- NewRisks Related to the Economic Environment
strategies that are not correlated with our insurance exposures, losses in our investment portfolio may occur at the same time as underwriting losses and, therefore, exacerbate the adverse effect of the losses on us
- NewRisks Related to the Economic Environment
Climate change and natural catastrophes could adversely affect our businesses, results of operations and financial condition
- NewRisks Related to the Economic Environment
Our Specialty Insurance business also may be impacted indirectly in instances where businesses it insures are impacted by catastrophes that are not insured events but, as a consequence of the catastrophe on their business, they are unable or unwilling to continue paying premiums on our other product offerings
- NewRisks Related to Liquidity and Financing
We conduct the vast majority of our business through our insurance subsidiaries, which are domiciled in the U.S. and the U.K
- NewRisks Related to Liquidity and Financing
respect of business that has been underwritten. Inigo Managing Agent Limited uses an internal model, developed to meet the requirements of the Solvency UK regime, to calculate its regulatory capital requirements
- NewRisks Related to Liquidity and Financing
subsidiaries, as amended, have been approved by the Pennsylvania Insurance Department, but such approval may be modified or revoked at any time
- NewRisks Related to the Inigo Acquisition
As previously disclosed, we recently closed on our acquisition of Inigo on February 2, 2026
- NewRisks Related to the Inigo Acquisition
The use of the Intercompany Note to fund a portion of the Inigo acquisition reduced our liquidity and Radian Guaranty’s PMIERs Cushion, and subjects us to certain conditions and compliance obligations associated with the Intercompany Note which could adversely affect us and our financial condition
- NewRisks Related to the Inigo Acquisition
We may face difficulties, unforeseen liabilities, or rating actions from our acquisition or the integration of Inigo and may not realize all of the anticipated benefits of such acquisition
- NewRisks Related to the Divestiture of our Mortgage Conduit, Title and Real Estate Services Businesses
We face risks associated with our decision to divest our Mortgage Conduit, Title and Real Estate Services businesses and we may fail to realize the anticipated benefits of these strategic divestitures
- NewRisks Related to the Divestiture of our Mortgage Conduit, Title and Real Estate Services Businesses
technology; (vi) the potential need to provide transitional services and/or to agree to retain or assume certain liabilities; and (vii) the terms, timing, structure, benefits and costs of any divestiture transaction for each of the businesses
Dropped
- DroppedRisks Related to Regulatory Matters
PMIERs financial requirements impose limitations on the credit that is granted for certain Available Assets based on several factors, including, among others, asset class and credit rating
- DroppedRisks Related to Regulatory Matters
Our insurance subsidiaries are subject to comprehensive state insurance regulations and other requirements, which we may fail to satisfy
PMIERs limits on credit for available assets and their effect on Radian Guaranty’s cushion.
- DroppedRisks Related to Regulatory Matters
affecting almost every significant aspect of the insurance business, including the power to revoke or restrict an insurance company’s ability to write new business
Comprehensive state insurance regulation and the risk of failing to satisfy requirements.
- DroppedRisks Related to our Business Operations
If the estimates we use in establishing mortgage insurance loss reserves are incorrect, we may be required to take unexpected charges to income, which could adversely affect our results of operations
State capital, risk-to-capital and surplus requirements limiting insurance writing or distributions.
- DroppedRisks Related to our Business Operations
We use reinsurance as a capital and risk management tool. We have distributed risk through traditional quota share and excess-of-loss reinsurance arrangements, as well as to investors through the capital markets using mortgage insurance-linked notes transactions
- DroppedRisks Related to our Business Operations
level of servicing performance, they also impose a high cost of compliance on servicers that may impact their financial condition and their operating effectiveness
- DroppedRisks Related to our Business Operations
We face risks associated with our contract underwriting business
- DroppedRisks Related to our Business Operations
Our Title, Real Estate Services and Real Estate Technology businesses expose us to certain risks that may negatively affect our results of operations and financial condition
Incorrect mortgage-insurance reserve estimates causing unexpected charges.
- DroppedRisks Related to our Business Operations
omissions. Failure to take steps to ensure that third-party servicers are servicing the loans we acquire appropriately could expose us to penalties or other claims or enforcement actions that could negatively impact our business prospects, results of operations and financial condition
- DroppedRisks Related to our Business Operations
If the models used in our businesses are inaccurate, it could have a material adverse impact on our business, results of operations and financial condition
Availability and cost of mortgage reinsurance and mortgage insurance-linked notes.
- DroppedRisks Related to the Economic Environment
Climate change and extreme weather events could adversely affect our businesses, results of operations and financial condition
- DroppedRisks Related to Liquidity and Financing
Capital Resources—Liquidity Analysis—Holding Company” for more information on our available liquidity and short-term and long-term liquidity demands
- DroppedRisks Related to Information Technology and Cybersecurity
We use statistical models, including artificial intelligence and machine learning models, to assist our decision making in key areas, such as underwriting, claims and pricing, but actual results could differ materially from the model outputs and related analyses
- DroppedRisks Related to Us and Our Subsidiaries Generally
employees. In light of these trends in the current labor and employment environment, it may be more difficult to retain key personnel or to attract new resources
Reworded
- 94% rewrittenRisks Related to Liquidity and Financing
Our sources of liquidity may be insufficient to fund our obligations
Adds that supporting Radian Guaranty’s PMIERs compliance with capital could reduce holding-company liquidity.
- 90% rewrittenRisks Related to Us and Our Subsidiaries Generally
We rely on our management team and our business could be harmed if we are unable to retain qualified employees or successfully develop and/or recruit their replacements
Shifts from COVID-era remote-work and noncompete concerns to talent depth and turnover during the Inigo acquisition, divestitures and leadership changes.
Was: We rely on our management team and our business could be harmed if we are unable to retain qualified personnel or successfully develop and/or recruit their replacements
- 89% rewrittenRisks Related to our Business Operations
Our Mortgage Insurance business depends, in part, on effective and reliable loan servicing
Adds that servicers’ costly compliance burden may weaken their finances and operating effectiveness.
- 87% rewrittenRisks Related to Regulatory Matters
Radian Guaranty may fail to maintain its eligibility status with the GSEs, and the additional capital required to support Radian Guaranty’s eligibility could reduce our available liquidity
No substantive change shown; PMIERs eligibility requirements and potential GSE restrictions or termination remain the focus.
- 79% rewrittenRisks Related to our Business Operations
We face risks associated with our Mortgage Conduit business
Removes the option to retain and manage structured credit risk, and changes the referenced sales from Freddie Mac to the GSEs.
- 72% rewrittenRisks Related to our Business Operations
As part of our claims management process, we pursue opportunities to mitigate losses both before and after we receive claims, including processes to ensure claims are valid
Adds potential effects on the GSEs and says process changes to protect relationships could reduce loss-mitigation benefits.
- 66% rewrittenRisks Related to Regulatory Matters
the degree of influence that the GSEs have over a mortgage lender’s selection of the mortgage insurer providing coverage
Adds current-administration efforts to recapitalize the GSEs, including a potential limited public equity offering.
- 61% rewrittenRisks Related to the Economic Environment
Our success depends, in part, on our ability to manage risks in our investment portfolio
Clarifies insurance subsidiaries’ reliance on the portfolio for claims payments and adds diversification, capital-preservation and liquidity objectives.
- 58% rewrittenRisks Related to the Economic Environment
The credit performance of our mortgage insurance portfolio is impacted by macroeconomic conditions and specific events that affect the ability of borrowers to pay their mortgages
- 47% rewrittenRisks Related to our Business Operations
Delegated underwriting may subject us to unanticipated claims
Was: Our delegated underwriting program may subject our Mortgage Insurance business to unanticipated claims
- 41% rewrittenRisks Related to our Business Operations
the practices of the GSEs, including the extent to which the guaranty fees, loan level price adjustments, credit underwriting guidelines and other business terms provided by the GSEs affect the cost of mortgages and lenders’ willingness to extend credit for low down payment mortgages
- 41% rewrittenRisks Related to Liquidity and Financing
Radian Group is a party to a $500 million unsecured revolving credit facility with a syndicate of bank lenders. As of December 31, 2025, no borrowings were outstanding under the credit facility
Was: Radian Group is a party to a $275 million unsecured revolving credit facility with a syndicate of bank lenders. As of December 31, 2024, no borrowings were outstanding under the credit facility
- 40% rewrittenRisks Related to Regulatory Matters
Legislation and administrative and regulatory changes and interpretations could impact our businesses
- 29% rewrittenRisks Related to Information Technology and Cybersecurity
As our work environment includes a hybrid, off-site working environment for many employees, our reliance on information technology and our exposure to the risk of cybersecurity threats and data security incidents have further increased
Was: As our work environment has transformed into a hybrid environment, it has further increased our reliance on information technology and our exposure to the risk of cybersecurity threats and data security incidents
- 29% rewrittenRisks Related to our Business Operations
Our Mortgage Insurance NIW and franchise value could decline if we lose business from significant customers
Was: Our NIW and franchise value could decline if we lose business from significant customers
- 29% rewrittenRisks Related to our Business Operations
Potential downgrades by rating agencies to the current financial strength ratings assigned to Radian Guaranty and/or the credit ratings assigned to Radian Group could adversely affect the Company
- 25% rewrittenRisks Related to the Economic Environment
Our reported earnings, stockholders’ equity and book value per share are subject to fluctuations based on changes in our investments that require us to adjust their fair market value
All 51 risk factors
Headings as the filing states them, in filing order.
Risks Related to Regulatory Matters
- 01Legislation and administrative and regulatory changes and interpretations could impact our businesses40% rewritten
- 02Radian Guaranty may fail to maintain its eligibility status with the GSEs, and the additional capital required to support Radian Guaranty’s eligibility could reduce our available liquidity87% rewritten
- 03See “Item 1. Business—Regulation—State Regulation” for more information on regulatory requirements applicable to our mortgage insurance subsidiaries and potential further changes to existing requirementsnew
- 04Changes in the charters, business practices or role of the GSEs in the U.S. housing finance market generally, could significantly impact our Mortgage Insurance business
- 05the degree of influence that the GSEs have over a mortgage lender’s selection of the mortgage insurer providing coverage66% rewritten
Risks Related to our Business Operations
- 06insurance. The premium structure we apply is subject to approval by state regulatory agencies, which can delay or limit our ability to increase our premiums if further filings or approvals are necessary to institute pricing adjustmentsnew
- 07We establish our reserves for losses in our insurance businesses based on models, assumptions and estimates, which are subject to inherent uncertainties, and if incorrect, may result in us being required to take unexpected charges to income, which could adversely affect our results of operationsnew
- 08As part of our claims management process, we pursue opportunities to mitigate losses both before and after we receive claims, including processes to ensure claims are valid72% rewritten
- 09If our loss limitation strategy in our Specialty Insurance business is unsuccessful it could have a material adverse effect on our results of operations, financial condition or liquiditynew
- 10Reinsurance may not be available, affordable or adequate to protect us against lossesnew
- 11If the length of time that our mortgage insurance policies remain in force declines it could result in a decrease in our future revenues
- 12the credit policies of certain lenders, which impact the ability of homeowners to refinance loans; and
- 13Delegated underwriting may subject us to unanticipated claims47% rewritten
- 14A decrease in the volume of mortgage originations could result in fewer opportunities for us to write new mortgage insurance business
- 15the practices of the GSEs, including the extent to which the guaranty fees, loan level price adjustments, credit underwriting guidelines and other business terms provided by the GSEs affect the cost of mortgages and lenders’ willingness to extend credit for low down payment mortgages41% rewritten
- 16Our Specialty Insurance business faces competition and that competition could increase due to merger and acquisition activity in the industrynew
- 17Our Mortgage Insurance NIW and franchise value could decline if we lose business from significant customers29% rewritten
- 18Potential downgrades by rating agencies to the current financial strength ratings assigned to Radian Guaranty and/or the credit ratings assigned to Radian Group could adversely affect the Company29% rewritten
- 19Our Mortgage Insurance business depends, in part, on effective and reliable loan servicing89% rewritten
- 20The effects of inflation, trade and tariff disputes and global economic conditions impact the specialty insurance and reinsurance industry in ways which may negatively impact our business, financial condition and results of operationsnew
- 21The impact of inflationary pressures on our Specialty Insurance business may be exacerbated during certain property and casualty insurance underwriting pricing cycles driven by loss activity and supply and demand across the marketnew
- 22We rely upon proprietary technology and information, and if we are unable to protect our intellectual property rights, it could have a material adverse effect on us
- 23We face risks associated with our Mortgage Conduit business79% rewritten
- 24We are exposed to credit risk through our direct investment in residential real estate mortgage loans. During the aggregation period and before sale or securitization, we assume the risk that the related borrowers may default on their obligations to make full and timely payments of principal and interestnew
- 25Actual or perceived instability in the financial services industry or non-performance by financial institutions or transactional counterparties could materially impact our business
Risks Related to the Economic Environment
- 26Global economic conditions could adversely affect our business, results of operations or financial conditionnew
- 27The credit performance of our mortgage insurance portfolio is impacted by macroeconomic conditions and specific events that affect the ability of borrowers to pay their mortgages58% rewritten
- 28In our Specialty Insurance business, we could face losses from geopolitical tensions, hostilities, war, terrorism, pandemics, cyberattacks and general political instability, and these or other unanticipated losses could have a material adverse effect on our financial condition and results of operationsnew
- 29Our business is subject to laws and regulations relating to economic trade sanctions and foreign bribery laws, the violation of which could adversely affect our operationsnew
- 30Our success depends, in part, on our ability to manage risks in our investment portfolio61% rewritten
- 31strategies that are not correlated with our insurance exposures, losses in our investment portfolio may occur at the same time as underwriting losses and, therefore, exacerbate the adverse effect of the losses on usnew
- 32Climate change and natural catastrophes could adversely affect our businesses, results of operations and financial conditionnew
- 33Our Specialty Insurance business also may be impacted indirectly in instances where businesses it insures are impacted by catastrophes that are not insured events but, as a consequence of the catastrophe on their business, they are unable or unwilling to continue paying premiums on our other product offeringsnew
- 34Our reported earnings, stockholders’ equity and book value per share are subject to fluctuations based on changes in our investments that require us to adjust their fair market value25% rewritten
Risks Related to Liquidity and Financing
- 35We conduct the vast majority of our business through our insurance subsidiaries, which are domiciled in the U.S. and the U.Knew
- 36respect of business that has been underwritten. Inigo Managing Agent Limited uses an internal model, developed to meet the requirements of the Solvency UK regime, to calculate its regulatory capital requirementsnew
- 37Our sources of liquidity may be insufficient to fund our obligations94% rewritten
- 38subsidiaries, as amended, have been approved by the Pennsylvania Insurance Department, but such approval may be modified or revoked at any timenew
- 39Radian Group is a party to a $500 million unsecured revolving credit facility with a syndicate of bank lenders. As of December 31, 2025, no borrowings were outstanding under the credit facility41% rewritten
Risks Related to Information Technology and Cybersecurity
- 40Our information technology systems may fail or become outmoded, be temporarily interrupted or otherwise cause us to be unable to meet our customers’ demands or to operate our business
- 41As our work environment includes a hybrid, off-site working environment for many employees, our reliance on information technology and our exposure to the risk of cybersecurity threats and data security incidents have further increased29% rewritten
Risks Related to Us and Our Subsidiaries Generally
- 42We may not continue to pay dividends at the same rate we are currently paying them, or at all, and any decrease in or suspension of payment of a dividend could cause our stock price to decline
- 43We are subject to litigation and regulatory proceedings
- 44We rely on our management team and our business could be harmed if we are unable to retain qualified employees or successfully develop and/or recruit their replacements90% rewritten
- 45Investments to grow our existing businesses, pursue new lines of business or develop new products and services within existing lines of business subject us to additional risks and uncertainties
- 46the risk of reputational harm if the strategic transaction or initiative fails to increase our market value; and
Risks Related to the Inigo Acquisition
- 47As previously disclosed, we recently closed on our acquisition of Inigo on February 2, 2026new
- 48The use of the Intercompany Note to fund a portion of the Inigo acquisition reduced our liquidity and Radian Guaranty’s PMIERs Cushion, and subjects us to certain conditions and compliance obligations associated with the Intercompany Note which could adversely affect us and our financial conditionnew
- 49We may face difficulties, unforeseen liabilities, or rating actions from our acquisition or the integration of Inigo and may not realize all of the anticipated benefits of such acquisitionnew
Risks Related to the Divestiture of our Mortgage Conduit, Title and Real Estate Services Businesses
- 50We face risks associated with our decision to divest our Mortgage Conduit, Title and Real Estate Services businesses and we may fail to realize the anticipated benefits of these strategic divestituresnew
- 51technology; (vi) the potential need to provide transitional services and/or to agree to retain or assume certain liabilities; and (vii) the terms, timing, structure, benefits and costs of any divestiture transaction for each of the businessesnew
Other Radian Group 10-Ks
- 2025 10-K risk factors
42 risks. PMIERs compliance, GSE eligibility and capital requirements are central because losing eligibility could restrict mortgage insurance and drain liquidity.
Filed Feb 14, 2025
About this page
Item 1A of the 10-K on EDGAR was split into its risk factors and, where the company's previous 10-K is on file, each heading was matched to last year's and the text compared word for word. The headings are the filing's own. The one-line readings and the overview were written by a language model from the text of the new, dropped, and rewritten risks; they refer to risks by position and cannot misquote a heading.