Tag Archives: RDN

Radian Group (RDN), mcap=$3.9bn, price $22.31 vs $20.50

Mortgage insurer at 86% of TBV with pending large capital releases that will significantly increase TBV/share.
The company is scheduled to start releasing contingency reserves that it had to hold for 10 years.
Starting in 2024 $400m+ will be released annually and could be used for dividends buybacks without any further approval from regulators.
Scheduled releases over 10 years equate to 115% of $RDN’s market cap.
On top of that, the company is set to generate $600m/year from operations (17% yield).