Radian Stockholders at Annual Meeting Re-elect Directors, Approve Executive Compensation and All Other Proposals; Company Declares Regular Quarterly Dividend on Common Stock
PHILADELPHIA--(BUSINESS WIRE)-- Radian Group Inc. announced today that its stockholders re-elected 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 2013 Annual Meeting, including an annual advisory vote on Radian's executive compensation, an increase in the company's authorized shares of common stock from 325 million to 485 million, and a re-approval of each primary component of Radian's tax benefit preservation strategy.
Radian also announced that the company's Board of Directors approved a regular quarterly dividend on its common stock in the amount of $0.0025per share, payable on June 5, 2013, to stockholders of record as of May 28, 2013.
Chief Executive Officer S.A. Ibrahim addressed the attendees of Radian's Annual Meeting by stating, "Thanks to the determination and dedication of the Radian team, we wrote an increasing volume of new mortgage insurance business each consecutive quarter in 2012, and ended the year with more than double the amount of business we wrote in 2011. In March this year, we successfully completed a capital raise with net proceeds of $689 million. We now expect to maintain a risk-to-capital ratio for Radian Guaranty of 20 to 1 or below for the foreseeable future, while also preserving a strong level of holding company liquidity."
Ibrahim added, "Today, our immediate priority is to write as much new, high-quality business as possible, as the FHA pulls back and as the housing market recovers, which is expected to fuel our growth and position Radian for a return to operating profitability. We believe Radian is in a strong position to continue promoting and preserving low downpayment lending while continuing to build stockholder value."
Radian Group Inc. (NYS: 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.
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," 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 publicly 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 high unemployment rates and weakness in the U.S. housing and mortgage credit markets, a significant downturn in the U.S. or global economies, a lack of meaningful liquidity in the capital or credit markets, changes or volatility in interest rates or consumer confidence and changes in credit spreads, each of which may be accelerated or intensified by, among other things, legislative activity or inactivity or actual or threatened downgrades of U.S. credit ratings;
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 developments in the private mortgage insurance and financial guaranty industries in which 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;
a 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 in particular, those that have been assigned higher ratings than we have, that may have access to greater amounts of capital than we do, or that are new entrants to the industry and are therefore not burdened by legacy obligations;
changes to the current system of housing finance, including the possibility of a new system in which private mortgage insurers are not required or their products are significantly limited in effect or scope;
volatility in our earnings caused by changes in the fair value of our assets and liabilities carried at fair value, including our derivative instruments, and the impact of variable accounting for certain of our performance-based long-term compensation awards;
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, 2012, 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. We do not intend to, and we disclaim any duty or obligation to, update or revise any forward-looking statements made in this report to reflect new information or future events or for any other reason.
Radian Group Inc.
Emily Riley, 215-231-1035
KEYWORDS: United States North America Pennsylvania
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