WASHINGTON (dpa-AFX) - Radian Group Inc (RDN) Wednesday said its Board of Directors has approved a new share repurchase program of $300 million over two years. The authorization is effective immediately and expires on January 31, 2025.
The company announced a series of capital actions to enhance financial flexibility that were completed as of year-end 2022.
With the favorable impact of these actions, the company expects its flagship mortgage insurance subsidiary Radian Guaranty Inc. to begin paying recurring ordinary dividends to Radian Group beginning in the first quarter of 2023 for the first time since the start of the financial crisis in 2007. The company projects 2023 ordinary dividends to be between $300 to $400 million and ordinary dividends in future years to approximate Radian Guaranty's ongoing statutory earnings.
Chief Executive Officer Rick Thornberry said, 'We are delighted to start the new year in an even stronger position, as these capital actions underscore Radian's financial strength and flexibility. This is a significant milestone for our company...'
Under the capital actions, Radian Group's insurance unit Radian Reinsurance Inc. completed the novation of $276 million of its entire insured portfolio to an unrelated third-party reinsurer, effective December 1, 2022.
Following the novation of Radian Reinsurance's entire insured portfolio, effective December 28, 2022, Radian Group completed the merger of Radian Reinsurance into Radian Guaranty. As of September 30, 2022, Radian Reinsurance had statutory admitted assets of $325 million that were merged into Radian Guaranty effective for the fourth quarter of 2022.
Radian is scheduled to announce its fourth-quarter results after the market closes on February 8.
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