Dallas, Texas 10/21/2013 (Financialstrend) – Radian Group Inc (NYSE:RDN) is a property and casualty insurance provider. It has a market cap of $2.47 billion. It reported its 3Q operations and financial results for the period ending September 30 on October 8. The results reinforce the growing relief among the investment community about the acceleration in recovery being witnessed by the realty and mortgage vertical. Readers would remember that since the near financial meltdown in 2007 thanks to unfettered promotion of caustic mortgage backed securities, the real estate and its dependent mortgage finance markets were lolling in the doldrums over the past few years. It is only in the past few quarters that the industry is sputtering back to life.
In the month of September, Radian Group Inc (NYSE:RDN) has managed to reinsure close to $3.83 billion. While this indicated a dip from the close to $4.67 billion underwriting it did in August, it indicated a substantive 8% increase in new business over last September. In a further affirmation of improving micro and macroeconomic sentiments, the insurance provider had reported a decline in the number of delinquencies it had to write off in September. Its bad debt fell 45% in September when compared to September 2012 numbers. This number has also seen a 0.35 dip over August end numbers. Its quarter on quarter sales has seen 26% appreciation while its annual sales for the past 12 months has gone up to $729 million,
The stock has been riding the positive wave since the result announcements were made. In the past week of trading, the stock had appreciated by 5.27%. Investors who had bought into the stock 12 months back would have seen their market holding appreciate by close to 205%. As of close of business on October 18, the stock was trading at $14.39 while the analysts PT is $15.69.