- Radian expects to pay up to $795 million in total distributions to shareholders in 2025, with $400 million already paid in the first half.
- The company maintains a stable PMIERs cushion of $2 billion, indicating strong capital buffers.
- Total holding company liquidity was $784 million at the end of Q2, down from over $1 billion two years ago due to share repurchases.
- The company has an undrawn credit facility of $275 million, providing additional financial flexibility.
- Management emphasizes a cautious yet opportunistic approach to liquidity and capital allocation, balancing share repurchases with maintaining sufficient buffers.
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- The company reduced its quota share reinsurance from 55% to 20%, a move driven by improved loss ratios and capital efficiency.
- This change was a strategic decision to shift risk management focus from risk concentration to capital management.
- The transition is expected to unfold over several quarters, with ceding roughly 45% of premium in H2 2025 and reaching 20% by Q3 2026.
- The impact on revenue is expected to outpace gross profit growth, with a shift towards higher revenue growth rates as the reinsurance scope narrows.
- This structural change aims to improve capital utilization and reduce dependency on reinsurance, leveraging the company's improved loss ratios and captive reinsurance structures.
- Adjusted earnings per share grew 13.8% to $0.66.
- Adjusted EBITDAC increased 24.5% to $308 million, with margin expansion of 50 basis points to 36.1%.
- GAAP interest expense is expected to be approximately $223 million in 2025, with $57 million in Q3.
- M&A remains a top priority with net leverage at 3.5x, and the company is willing to temporarily exceed comfort levels for strategic acquisitions.
- Ryan Specialty Holdings reported total revenue growth of 23% in Q2 2025 to $855 million, driven by 7.1% organic growth and 13 percentage points from M&A.
- The adjusted effective tax rate was 26%, expected to remain similar for the rest of 2025.
- KW deployed or committed $1.7 billion in new capital in Q2, bringing total deployment to $2.6 billion for H1 2025, on track to surpass $4.3 billion in 2024.
- The company successfully executed over $600 million in noncore asset sales, generating $250 million in cash, exceeding the $200 million target.
- Proceeds from asset sales are primarily used to reduce unsecured debt, including a $350 million repayment of KWE bonds due in October, fully retiring the $650 million 2025 bonds.
- KW plans to continue recycling capital into higher-return opportunities, emphasizing a strategic focus on asset sales and debt reduction.
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