Radian Stockholders at Annual Meeting Re-elect Directors, Approve Executive Compensation and All Other Proposals; Company Declares Regular Quarterly Dividend on Common Stock

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PHILADELPHIA--(BUSINESS WIRE)--

Radian Group Inc. announced today that its stockholders re-elected each of the company's eleven directors, who serve one-year terms and are re-elected annually. The company's stockholders also approved all of the Board of Directors' recommendations presented for vote at Radian's 2014 Annual Meeting, including an annual advisory vote on Radian's executive compensation.

Radian also announced that the company's Board of Directors approved a regular quarterly dividend on its common stock in the amount of $0.0025 per share, payable on June 9, 2014, to stockholders of record as of May 27, 2014.

Chief Executive Officer S.A. Ibrahim addressed the attendees of Radian's Annual Meeting by stating, “Over the past several years, despite the worst housing and economic downturn of our time, we maintained a sharp focus on affordable, sustainable homeownership. In 2013, our most important accomplishments were writing strong new business volume and achieving mortgage insurance operating profitability.”

Ibrahim added, “Looking ahead, our top priorities are to expand our franchise and build on our 2013 accomplishments, as well as leverage our core competencies in mortgage credit risk to explore new opportunities in the mortgage landscape – including our planned acquisition of Clayton Holdings announced last week.”

About Radian

Radian Group Inc. RDN, headquartered in Philadelphia, provides private mortgage insurance and related risk mitigation products and services to mortgage lenders nationwide through its principal operating subsidiary, Radian Guaranty Inc. These services help promote and preserve homeownership opportunities for homebuyers, while protecting lenders from default-related losses on residential first mortgages and facilitating the sale of low-downpayment mortgages in the secondary market. Additional information may be found at www.radian.biz.

Forward-Looking Statements

All statements in this press release that address events, developments or results that we expect or anticipate may occur in the future are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the United States (“U.S.”) Private Securities Litigation Reform Act of 1995. In most cases, forward-looking statements may be identified by words such as “anticipate,” “may,” “will,” “could,” “should,” “would,” “expect,” “intend,” “plan,” “goal,” “contemplate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “seek,” “strategy,” “future,” likely” or the negative or other variations on these words and other similar expressions. These statements, which may include, without limitation, projections regarding our future performance and financial condition, are made on the basis of management's current views and assumptions with respect to future events. Any forward-looking statement is not a guarantee of future performance and actual results could differ materially from those contained in the forward-looking statement. These statements speak only as of the date they were made, and we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. We operate in a changing environment. New risks emerge from time to time and it is not possible for us to predict all risks that may affect us. The forward-looking statements, as well as our prospects as a whole, are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements including:

  • changes in general economic and political conditions, including unemployment rates, changes in the U.S. housing and mortgage credit markets (including declines in home prices and property values), the performance of the U.S. or global economies, the amount of liquidity in the capital or credit markets, changes or volatility in interest rates or consumer confidence and changes in credit spreads, all of which may be impacted by, among other things, legislative activity or inactivity, actual or threatened downgrades of U.S. government credit ratings, or actual or threatened defaults on U.S. government obligations;
  • changes in the way customers, investors, regulators or legislators perceive the strength of private mortgage insurers or financial guaranty providers, in particular in light of the fact that certain of our former competitors have ceased writing new insurance business and have been placed under supervision or receivership by insurance regulators;
  • our ability to maintain sufficient holding company liquidity to meet our short- and long-term liquidity needs;
  • our ability to maintain an adequate risk-to-capital position, minimum policyholder position and other surplus requirements for Radian Guaranty Inc. (“Radian Guaranty”), our principal mortgage insurance subsidiary, and an adequate minimum policyholder position and surplus for our insurance subsidiaries that provide reinsurance or capital support to Radian Guaranty;
  • a substantial decrease in the persistency rates of our mortgage insurance policies, which has the effect of reducing our premium income on our monthly premium policies and could decrease the profitability of our mortgage insurance business;
  • heightened competition for our mortgage insurance business from others such as the FHA, the U.S. Department of Veterans Affairs and other private mortgage insurers, including with respect to other private mortgage insurers, those that have been assigned higher ratings than we have, that may have access to greater amounts of capital than we do, that are less dependent on capital support from their subsidiaries than we are or that are new entrants to the industry and, therefore, are not burdened by legacy obligations;
  • changes in requirements for Radian Guaranty to remain an eligible insurer to the GSEs (which are expected to be released in draft form for public comment as early as the second quarter of 2014, and to become effective following an implementation period), which may include, among other items, more onerous risk-to-capital ratio requirements, higher capital requirements for defaulted loans and/or loans insured prior to 2009 and a limitation on the amount of capital credit available for Radian Guaranty's equity in its subsidiaries, including capital attributable to our financial guaranty business; the form of the new eligibility requirements and the timeframe for their implementation remain uncertain, and we cannot give any assurances as to their potential impact on us; and
  • changes in the charters or business practices of, or rules or regulations applicable to, the GSEs.

For more information regarding these risks and uncertainties as well as certain additional risks that we face, you should refer to the Risk Factors detailed in Item 1A of Part I of our Annual Report on Form 10-K for the year ended December 31, 2013, and those risks detailed in subsequent reports and registration statements filed from time to time with the U.S. Securities and Exchange Commission. We caution you not to place undue reliance on these forward-looking statements, which are current only as of the date on which we filed this report.

Radian Group Inc.
Emily Riley, 215-231-1035
emily.riley@radian.biz

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Posted In: Press Releases
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