Radian Group Inc. · NYSE:RDN
Radian — Investor Day (November 2017)
83 slides from Radian's investor day presentation, Nov 6, 2017
Slide 1: Radian 2017 Investor Day
| OMimma | | A | i Gt al Radian 2017 Investor Day November 6, 2017 | New York Stock Exchange | NYC
Slide 2: Presented by Rick Thornberry
Presented by Rick Thornberry Chief Executive Officer Radian Group Inc.
Slide 3: Rick Thornberry, CEO
Rick Thornberry, CEO 2007-2009 Senior Advisor 1996 Financial Institution Investment President, COO Team for Leading Private Citicorp Mortgage Inc. Equity Firm BS, Business Administration (Accounting) 2006 St. Louis University Chairman, CEO, Co-Founder NexSpring Group 1981 1999 2017, March CPA at Del
Slide 4: Why I joined Radian
Why I joined Radian Market Financial Diversified Strategic Position Strength Products and Opportunities Services 5
Slide 5: What I have learned since joining
What I have learned since joining Our Team, Our Relationships, Our Strengths, Our Financial Flexibility and Our Opportunities. 6
Slide 6: We are a uniquely diversified mortgage risk management business
We are a uniquely diversified mortgage risk management business Credit Transactions Real Estate Mortgage Insurance Originations Valuation Reinsurance Acquisitions Title Structured Mortgage Securitizations Brokerage Solutions Servicing Asset management Loans Securities Our mortgage insurance business
Slide 7: Radian has a long history of success
Radian has a long history of success Over the past 40 years, Radian has insured nearly 7 million loans. Over the last5 years, Radian has written $228 billion in new insurance covering approximately 940,000 loans and paid more than $4 billion in claims. Clayton has reviewed more than 12 million loans
Slide 8: Today's topics
Today’s topics 1. Growing our high quality, high value mortgage insurance portfolio to drive future earnings 2. Executing our strategy to further diversify our business 3. Leveraging our capital and financial flexibility to optimize shareholder returns 4. Driving a one company market view through ou
Slide 9: The projected mortgage market looks favorable for the MI industry
The projected mortgage market looks favorable for the MI industry 2011 – 2020 A sustainable growing purchase loan market. Source: MBA Mortgage Finance Forecast 10
Slide 10: Growing our MI portfolio through the next cycle
Growing our MI portfolio through the next cycle As the market evolves towards the new cycle, we are well positioned. Grow Market New MI Disciplined Portfolio Leader Market Cycle Management Value Market leader, Origination Disciplined risk We expect to delivering great market pivots managemen
Slide 11: Diversifying our business through structured mortgage solutions
Diversifying our business through structured mortgage solutions We are leveraging our credit risk capabilities to address expanded market opportunities. Core Innovative Grow Market Need Competency Structures Earnings Leverage our Epic shift of Insurance Increased experience, credit risk from
Slide 12: Diversifying our business through our mortgage and real estate services
Diversifying our business through our mortgage and real estate services We have a diversified set of market leading, highly relevant products and services. Current Enhancing Grow Products and Market Need Our Products Earnings Services Mortgage and Integrated Product Increased fee- real estat
Slide 13: Leveraging our capital and financial flexibility
Leveraging our capital and financial flexibility We continually evaluate market opportunities to improve earnings and returns. Strong Market Leverage Improve Capital Base Opportunities Market Tools Returns Focus on Leverage third Reinsurance Optimize use of optimizing the party capital to
Slide 14: Achieving operational excellence
Achieving operational excellence We are implementing a disciplined approach to driving sustainable improvement. Develop Improve Grow Key Metrics Roadmaps Performance Earnings Customer Targets Make Grow revenues service KPIs investments through Operating Improvement Measure enhanced q
Slide 15: Leveraging our enterprise sales and marketing model
Leveraging our enterprise sales and marketing model Our diversified product set uniquely positions us to become increasingly relevant to our customers. Team Diversified Grow Customers Structure Products Earnings Product Mortgage We have a Grow revenues specific teams insurance strong startin
Slide 16: Radian has an unparalleled portfolio of product and service offerings
Radian has an unparalleled portfolio of product and service offerings MI Appraisal Services Component Services Loan Review Solutions MI Real Estate Services Appraisal Services Rental Property Services Diverse Markets Risk Solutions Industry Advocacy Securitization Review Online Tools Surveillance Re
Slide 17: Our diversified product set positions us to be increasingly relevant
Our diversified product set positions us to be increasingly relevant For a typical Mortgage Insurance company, the relationship opportunity is limited. Typical MI Company Radian Loan Lifecycle Loan Lifecycle For us, it’s just the beginning of the opportunity to work with a customer. 18
Slide 18: Our customers are beginning to realize they can rely on us for more than just MI
Radian Other MI Companies MI than just MI Underwriting Training Online Tools Risk Solutions Valuation Services Real Estate Services Title/Closing Services Loan Review Solutions REO Management Servicing Surveillance Securitization Review Competitive Differentiation R
Slide 19: Why is our strategic plan important
Why is our strategic plan important We are well positioned as the mortgage and real estate markets enter a transformative period. Our credit risk management expertise aligns well as the industry transitions to the epic shift from government to private capital. Diversification drives competitive diff
Slide 20: Repositioning the business
Repositioning the business We have been busy… Evolving the organization and team Integrating to One Company Restructuring Services business Launching Enterprise Sales platform Strengthening our Capital and Debt Structure Refining focus on core strengths 21
Slide 21: We are positioning the business for the future
We are positioning the business for the future A disciplined value driven approach to building our mortgage insurance portfolio An expansion of our credit risk management platform Growth of our mortgage and real estate services Innovative use of lower-cost capital structures and/or capital partners
Slide 22: Key takeaways from today
Key takeaways from today Market leading mortgage insurance franchise Growing, high quality mortgage insurance portfolio Disciplined approach to credit risk management Growing a diversified set of high quality products and services Growth driven through a unique enterprise sales platform
Slide 23: Q&A
Qé&A
Slide 24: Frank Hall, Chief Financial Officer
Frank Hall Chief Financial Officer Radian Group Inc.
Slide 25: Agenda
Agenda Key Mortgage Insurance Financial Trends Regulatory Capital and Liquidity Considerations Statutory Requirements – State Insurance Departments, NAIC PMIERs – FHFA, Fannie Mae, Freddie Mac Holding Company Liquidity, Flexibility, and Ratings Actions
Slide 26: Strong Growth in High Quality NIW and IIF
Strong Growth in High Quality NIW and IIF… Key Points New Insurance Written ($ in billions) Full Year 2017 NIW expected to be approximately $50 billion $51 $50 $47 $41 Forecasted $37 Projected Returns on required capital for new business have remained relatively consistent $40 at approximately 13-14
Slide 27: ...Has Led to Positive Financial Trends
…Has Led to Positive Financial Trends Key Points Net Premiums Earned ($ in millions) Full Year 2017 Net Premiums Earned on track to exceed 2016 results, with a higher quality mix from $916 $922 monthly premium policies $845 $781 $688 2017 Net Premiums Earned from monthly premium policies expected to
Slide 28: Improved Results Are Creating Positive Operating Cash Flows
Improved Results Are Creating Positive Operating Cash Flows Key Points Significant reductions in claims paid and increases in net premiums written over the past five years have contributed to the turnaround in operating cash flows. Q3 2017 operating cash flows were reduced as a result of a $55 milli
Slide 29: Overview
Overview 1. Illustrate the dimensions of capital and liquidity considerations for the relevant legal entities and regulatory landscape in which Radian operates 2. Illustrate the financial flexibility of Radian 3. Illustrate the positive momentum of the financial strength of Radian 29
Slide 30: Regulated Insurance Subsidiaries
Regulated Insurance Subsidiaries NAIC Radian Group Inc. Regulated NYSE: RDN (Statutory) Clayton Holdings Inc. Radian Guaranty Radian Reinsurance Other Subsidiaries (and subsidiaries) Inc. Inc. Radian Group Inc. has other insurance PMIERs subsidiaries that are not included in today’s Regulated discus
Slide 31: Potential Flow of Funds between Radian Group and its Subsidiaries
Potential Flow of Funds between Radian Group and its Subsidiaries Radian Group Revolving Credit Facility Radian Guaranty Clayton Radian Reinsurance Expense, Interest and Tax Sharing Agreements • Credit Facility provides re-financing flexibility at Holding Company and PMIERs 2.0 safety net • FHLB pro
Slide 32: Our Insurers Operate Under Two Distinct Regulatory Frameworks
Our Insurers Operate Under Two Distinct Regulatory Frameworks… Statutory • All Radian insurance subsidiaries are domiciled in Pennsylvania and regulated by the State Insurance Department. • In addition, the National Association of Insurance Commissioners (NAIC) maintains a Model Act for Mortgage Gua
Slide 33: Which Include Requirement to Build Contingency Reserves
…Which Include Requirement to Build Contingency Reserves Key Points For statutory purposes, a contingency reserve is set up to protect against catastrophic losses. Mortgage insurers are required to set aside 50% of each year’s earned premiums for a period of ten years, although earlier releases are
Slide 34: Review of Radian Guaranty Contingency Reserve & Unassigned Surplus
Review of Radian Guaranty Contingency Reserve & Unassigned Surplus $5,500 NAIC Maximum Risk-to-Capital Ratio (25.0x) Key Points $4,500 Before the beginning of the financial crisis in $3,500 2007, Radian Guaranty had built a sizable 11.6 x 8.1 x contingency reserve of approximately 14.9 x $2,500 11.4
Slide 35: Potential for Organic Growth in Capital Cushion
Potential for Organic Growth in Capital Cushion… >250% over minimum Key Points NAIC Maximum Risk-to-Capital Ratio (25.0x) 7x Despite having a negative unassigned surplus, we may potentially request an extraordinary dividend due to the expected organic growth in our PMIERs and Statutory Risk-to-Capit
Slide 36: However, Projections for Excess Capital are Subject to Uncertainties
…However, Projections for Excess Capital are Subject to Uncertainties • A shift in loan characteristics can positively or negatively impact our PMIERs cushion, as lower FICO and/or higher LTV originations result in increased Minimum Required Assets. For example, a loan with a greater than 95% LTV to
Slide 37: Radian Maintains Financial Flexibility to Mitigate this Uncertainty
Radian Maintains Financial Flexibility to Mitigate this Uncertainty… PMIERS Excess Capital (Cushion) ($ in millions) Key Points Under stressful conditions, we can support our insurance subsidiaries 23% and improve our PMIERs and Statutory cushions from a variety of 21% 22% 21% $225 sources, includin
Slide 38: Significantly Improved Debt Maturity Profile
… and Has Significantly Improved Radian Group’s Debt Maturity Profile Key Points Over the past several years and as of this month, Radian will have retired all outstanding convertible senior notes. In addition, Radian has refinanced all debt that was due in 2017 and substantially all debt due in 201
Slide 39: These Steps have Resulted in Positive Rating Agency Actions
These Steps have Resulted in Positive Rating Agency Actions… During September 2017, S&P upgraded Radian Guaranty and Radian Reinsurance to BBB+ and Radian Group to BB+. In taking these actions, S&P cited the following developments: • “Strengthening of Radian’s capital adequacy to moderately strong.”
Slide 40: And have Helped Position Radian Well for the Future
…And have Helped Position Radian Well for the Future. • Following the financial crisis, Radian focused on writing significant volumes of high credit quality NIW; • The growing insured portfolio of nearly $200 billion provides a reliable stream of earned premiums, offset by historically low losses; •
Slide 41: Q&A
Qé&A
Slide 42: Derek Brummer, Chief Risk Officer
Presented by Derek Brummer Chief Risk Officer Radian Group Inc.
Slide 43: Agenda
Agenda Risk Management Overview Today’s U.S. Housing Market MI Portfolio Composition and Trends Stress Scenario Sensitivity Risk Distribution
Slide 44: Risk Management Overview
Risk Management Overview Enterprise Risk Management Loss Forecasting Credit Policy & & Reserving Underwriting Data Management & Quality Control Strategy Risk Management Lender Pricing & Monitoring & Valuation Segmentation Portfolio Quantitative Surveillance & Analytics Management 43
Slide 45: Risk Management Vision and Goals
Risk Management Vision and Goals Vision • To be the housing industry’s leading risk management organization and solutions provider that effectively identifies, assesses and profitably manages risks across the entire mortgage life-cycle Goals • Embed and continually reinforce a corporate-wide risk cu
Slide 46: Enterprise Risk Management (ERM) Framework
Enterprise Risk Management (ERM) Framework Board of Directors Risk Governance Oversight CEO Risk Culture ERM Risk Infrastructure & Executive Steering Management ERM Infrastructure Committee People Process Technology ERM Council Risk Process Primary Risk Owners Risk Analyze/ Assess/ Control/ Monitor/
Slide 47: Risk Management Tools and Solutions
Risk Management Tools and Solutions Radian’s objective is to be the housing industry’s first choice for risk management solutions across the entire mortgage life-cycle. Mortgage Risk Navigator™ The Mortgage Risk Navigator is Radian’s cloud-based mortgage analytics suite and business intelligence pla
Slide 48: Lender Segmentation Framework
Lender Segmentation Framework Mix of Return on Lender Qualitative Rankings Business Performance Capital Expenses / Other Lender Risk Return on Metric 1 Metric 2 Metric 3 Metric 1 Metric 2 Metric 3 Metric 1 Metric 2 Metric 3 Metric 1 Metric 2 Metric 3 Metric 1 Metric 2 Metric 3 Overall Capital Lender
Slide 49: Visualizing Lender Rankings
Visualizing Lender Rankings 300 250 Return on Capital Rank 200 150 100 50 0 0 50 100 150 200 250 300 Lender Risk Rank Overall Rank 1-100 Overall Rank 101-200 Overall Rank 201-300 Note: Bubble size is based on recent volume with larger bubbles indicating more volume • The Lender Risk Rank and Return
Slide 50: Today's U.S. Housing Market
Today’s U.S. Housing Market Current U.S. macroeconomic factors support strong housing market • Overall, home prices are in line with standard valuation and affordability metrics • Housing market supply and demand fundamentals continue to support strong housing market • Personal income continues to g
Slide 51: Today's U.S. Housing Market
Today’s U.S. Housing Market PMIERs provides a strong risk-based capital foundation • Provides a robust and transparent risk-based capital framework that requires significantly more capital than was historically required • Ensures mortgage insurers maintain adequate liquidity and claims-paying resour
Slide 52: Home Price Affordability
Home Price Affordability • Despite recent increases, house prices remain affordable by historical standards, suggesting that home prices are tracking the broader economic expansion Source: Urban Institute 51
Slide 53: What we've written and what's left
What we’ve written and what’s left NIW and IIF ($B) $80 NIW $70 IIF $60 $50 $40 $30 $20 $10 $0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 52
Slide 54: Improved MI Portfolio Composition
Improved MI Portfolio Composition 2006-2007 (HARP) • 91% of mortgage insurance 2006-2007 (Non-HARP) primary risk in force 3.2% 4.6% consists of new business Other Vintages (Non-HARP) written after 2008, including 4.5% HARP volume Other Vintages (HARP) 2.9% $50.2 Billion Risk in Force 84.8% 2009-2017
Slide 55: Significantly Improved Origination Credit Quality
Significantly Improved Origination Credit Quality Original Credit Score Profile Original Loan-to-Value Score Profile • Strong risk profile of NIW from 50% 50% 2009+ vintages: 40% 40% - 100% Prime risk grade, 100% 30% 30% Full documentation, 94% with 20% 20% FICO >680 10% 10% - Share of cash-out refi
Slide 56: Exceptional Underwriting Quality
Exceptional Underwriting Quality Primary Flow EDE Rates by Month 4.0% 3.5% 12-mo EDE 6-mo EDE 3.0% 0.15% EDE RATE 2.5% 2.0% 0.10% 1.5% 0.05% 1.0% 0.00% 0.5% 0.0% May-01 May-02 May-03 May-04 May-05 May-06 May-07 May-08 May-09 May-10 May-11 May-12 May-13 May-14 May-15 May-16 May-17 Jan-01 Jan-02 Jan-0
Slide 57: Historically Low Loss Ratios
Historically Low Loss Ratios CUMULATIVE INCURRED LOSS RATIO (1) 20% Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Sep-17 Vintage 18% 16% 2009 2009 6.1% 7.0% 13.7% 17.4% 19.0% 18.3% 17.6% 17.6% 17.5% 14% 2010 2010 1.2% 3.3% 6.5% 7.7% 7.5% 7.2% 7.2% 7.1% 12% 2011 2011 1.7% 4.4% 5.5% 5.6% 5.0
Slide 58: Improved MI Portfolio Composition
Improved MI Portfolio Composition Primary RIF Distribution by FICO SCORE Primary RIF Distribution by LTV 100% 100% 11% 9% 17% 22% 26% 24% 80% 42% 80% 59% 38% 35% 53% 60% 33% 60% 31% 36% 40% 33% 40% 37% 32% 33% 39% 31% 30% 31% 20% 20% 20% 13% 9% 14% 12% 8% 1% 9% 7% 5% 0% 0% 2003 2007 2011 Q3 2017 200
Slide 59: Improved MI Portfolio Composition
Improved MI Portfolio Composition 1% 1% Primary RIF Distribution by RISK GRADE Primary RIF Distribution by OCCUPANCY STATUS 100% 100% 6% 2% 2% 10% 4% 4% 2% 13% 3% 9% 2% 4% 80% 18% 90% 19% 97% 97% 94% 95% 85% 92% 72% 68% 60% 80% 2003 2007 2011 Q3 2017 2003 2007 2011 Q3 2017 Prime Alt-A A minus and be
Slide 60: Improved MI Portfolio Composition
Improved MI Portfolio Composition Primary RIF Distribution 14% 12% 10% 8% 6% 4% 2% 0% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Q3 FICO < 680 AND Original LTV > 95 FICO < 680 AND Cash-out refinance Investment or Second Home AND FICO <= 720 • The amount of l
Slide 61: MI Portfolio benefits from strong payment history
MI Portfolio benefits from strong payment history • 98% of mortgage insurance primary risk in force is currently Pre-2009, performing and 91% has Always never been in default 8.1% Performing 84.2% (i.e., Always Performing) 2009-2017, $50.2 Billion Performing Risk in Force 5.5% Pre-2009, Reperforming
Slide 62: 60% of Pre-2009 portfolio has never been in default
60% of Pre-2009 portfolio has never been in default Years of Payments Made 10% 13+ Years 19% 12+ Years 32% 11+ Years Pre-2009, Always Performing 69% 10+ Years 8.1% 84.2% 2009-2017, $50.2 Billion 100% 9+ Years Performing Risk in Force 5.5% Pre-2009, Reperforming 2.3% Default 61
Slide 63: More than 50% of Pre-2009 Reperforming Loans have not been in default in 4+ years
More than 50% of Pre-2009 Reperforming Loans have not been in default in 4+ years Pre-2009, Time Since Exiting Default Always Performing 8.1% 84.2% 2009-2017, $50.2 Billion Performing Risk in Force 5.5% Pre-2009, 39% 5+ Years Reperforming 51% 4+ Years 2.3% 62% 3+ Years Default 72% 2+ Years 83% 1+ Ye
Slide 64: Default Inventory continues to decrease together with improving cure rates
Default Inventory continues to decrease together with improving cure rates Pre-2009, Always Performing 8.1% 84.2% Default Inventory: 2013 vs. 2017 2009-2017, $50.2 Billion Performing Risk in Force 5.5% Pre-2009, 3% 19% Reperforming 32% 2.3% Missed Payments 39% Claim Default 26% 12+ 4-11 21% 2-3 39%
Slide 65: Improving Default Trends
Improving Default Trends Quarterly New Default Rates 4Q 2013 4Q 2014 4Q 2015 4Q 2016 3Q 2017 5.0% 4.5% 4.0% 3.5% 3.0% Primary Default Count 60,909 45,319 35,303 29,105 23,826 2.5% 2.0% Primary Default Rate 7.3% 5.2% 4.0% 3.2% 2.5% 1.5% 1.0% 0.5% New Defaults: 2009+ % 7% 13% 21% 31% 37% 0.0% 2009-Q2
Slide 66: Improving Cure Rates
Improving Cure Rates Quarterly Cure Rates Quarterly Cure Rates 45.0% 7.0% 40.0% 6.0% 35.0% 5.0% 30.0% 25.0% 4.0% 20.0% 3.0% 15.0% 2.0% 10.0% 5.0% 1.0% 0.0% 2009-Q1 2009-Q2 2009-Q3 2009-Q4 2010-Q1 2010-Q2 2010-Q3 2010-Q4 2011-Q1 2011-Q2 2011-Q3 2011-Q4 2012-Q1 2012-Q2 2012-Q3 2012-Q4 2013-Q1 2013-Q2
Slide 67: Stress Scenario Sensitivity
Stress Scenario Sensitivity House Price Index 280 • Radian regularly leverages our proprietary credit 260 model (RaDaR™) to evaluate the impact of varying 240 severe stress scenarios on the business we are 220 writing as well as our entire insured portfolio 200 180 • The charts at right show a Moody
Slide 68: Risk Distribution
Risk Distribution • We continue to pursue opportunities to effectively manage our capital position, improve our return on capital and proactively manage our mix of mortgage insurance business. • Factors considered when evaluating risk distribution opportunities: • Cost of capital • Certainty of capi
Slide 69: Recent Single Premium Reinsurance Agreement
Recent Single Premium Reinsurance Agreement • In October 2017, Radian agreed to terms for a new quota share reinsurance arrangement for Single Premium MI business • Panel of 8 third-party reinsurers • Basic terms: • Coverage: 2018-2019 single premium volume • Term: 12 years (2 year fill-up period fo
Slide 70: Q&A
Qé&A
Slide 71: Q&A Panel
Q&A Panel Rick Thornberry, Chief Executive Officer Frank Hall, Chief Financial Officer Derek Brummer, Chief Risk Officer Ted Hoffman, General Counsel Cathy Jackson, Corporate Controller Brien McMahon, Chief Franchise Officer
Slide 72: Radian
RADIAN
Slide 73: Safe Harbor Statements
Safe Harbor Statements 73
Slide 74: Safe Harbor Statements
Safe Harbor Statements All statements in this presentation 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 Exchange Act and the U.S.
Slide 75: Safe Harbor Statements (Continued)
Safe Harbor Statements (Continued) • competition in our mortgage insurance business, including price competition and competition from the FHA, U.S. Department of Veterans Affairs and other forms of credit enhancement; • the effect of the Dodd-Frank Wall Street Reform and Consumer Protection Act on t
Slide 76: Consolidated Non-GAAP Financial Measures Reconciliations
Consolidated Non-GAAP Financial Measures Reconciliations 72
Slide 77: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures In addition to the traditional GAAP financial measures, Although adjusted pretax operating income excludes past operating trends. Therefore, these items are we have presented “adjusted pretax operating income” certain items that have occurred in the past and are ex
Slide 78: Use of Non-GAAP Financial Measures (Continued)
Use of Non-GAAP Financial Measures (Continued) We have also presented a non-GAAP measure for (loss). Our definitions of adjusted pretax operating tangible book value per share, which represents book income, adjusted diluted net operating income per value per share less the per-share impact of goodwi
Slide 79: Reconciliation of Consolidated Pretax Income (Loss) to Adjusted Pretax Operating Income
Reconciliation of Consolidated Pretax Income (Loss) to Adjusted Pretax Operating Income 2017 2016 ($ in thousands) Q3 Q2 Q1 Q4 Q3 Consolidated pretax income (loss) $102,814 $(35,474) $114,670 $97,796 $126,941 Less income (expense) items: Net gains (losses) on investments and other 2,480 5,331 (2,851
Slide 80: Reconciliation of Diluted Net Income (Loss) Per Share to Adjusted Diluted Net Operating Income Per Share
Reconciliation of Diluted Net Income (Loss) Per Share to Adjusted Diluted Net Operating Income Per Share 2017 2016 Q3 Q2 Q1 Q4 Q3 Diluted net income (loss) per share $0.30 $(0.13) $0.34 $0.27 $0.37 Less per-share impact of debt Items: Loss on induced conversion and debt extinguishment (0.21) (0.01)
Slide 81: Reconciliation of Book Value Per Share to Tangible Book Value Per Share
Reconciliation of Book Value Per Share to Tangible Book Value Per Share(1) 2017 2016 Q3 Q2 Q1 Q4 Q3 Book value per share $13.88 $13.54 $13.58 $13.39 $13.47 Less: Goodwill and other intangible assets, net per share 0.31 0.32 1.27 1.29 1.30 Tangible book value per share $13.57 $13.22 $12.31 $12.10 $12
Slide 82: Reconciliation of Net Income (Loss) to Services Adjusted EBITDA
Reconciliation of Net Income (Loss) to Services Adjusted EBITDA 2017 2016 ($ in thousands) Q3 Q2 Q1 Q4 Q3 Net income (loss) $65,142 $(27,342) $76,472 $61,089 $82,803 Less income (expense) items: Net gains (losses) on investments and other financial 2,480 5,331 (2,851) (38,773) 7,711 instruments Loss
Slide 83: Radian
RADIAN