Home Prices Soar, Boosting Insurer’s Bottom Line
The housing market’s remarkable resilience has been a blessing for mortgage insurer Radian Group (NYSE:RDN), with its shares surging 37% over the past 12 months. The company’s fortunes have been buoyed by two key factors: extremely low insured losses due to stable home prices, and a significant boost to investment income thanks to elevated interest rates.
In a previous analysis, I highlighted the insurer’s impressive performance, which has been driven by its ability to capitalize on the favorable market conditions. With interest rates on the rise, Radian Group has been able to generate substantial investment income, further padding its bottom line.
It’s worth noting that the opinions expressed in this article are solely those of the author and do not reflect the views of Seeking Alpha or any other entity. Additionally, past performance is not indicative of future results, and investors should exercise caution when making investment decisions.
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