Radian Group Inc. ($RDN)

Good morning, everyone, and welcome to Radian's Investor Day. We have a great audience here today. So thank you very much. We're pleased to have you with us both here in the room and joining via webcast. On behalf of the entire management team, thank you for being here and your interest in Radian. Before we jump in, let me quickly cover a few important items. Some of the statements we make today will be forward-looking. These statements as well as Radian's prospects are subject to certain risks and uncertainties. A I encourage you to review the safe harbor statement at the end of today's presentation for more detail. We'll also be discussing certain non-GAAP financial measures. Reconciliation to the most comparable GAAP measures are included at the end of the presentation and also available on the Investor Relations section of our website. Finally, for those in the room, I'd appreciate if you take a moment and silence those devices. I'm also -- I have to tell you guys about the WiFi password because everybody keeps asking, WiFi is the St. Regis Conference. The password is banquets2026. Everybody got that? Okay. So let's talk about what we have planned for today. We put together a full and engaging agenda for you this morning. You'll hear directly from our CEO, the co-heads of our Mortgage Insurance business; [indiscernible] team, our CFO and our CEO elect. At the end of these presentations, you should understand why we are so excited about our business, the opportunity in front of us and what truly sets Radian apart. We'll have a dedicated Q&A session specifically for our specialty insurance business, following the Amigo presentation. For those here and there in person, if you have a question, you can raise your hand and we'll bring a microphone to you, where you can submit questions at any time at the iPad at your seat. For those joining virtually, questions can be submitted through the webcast platform throughout the session. Remember today, guys, we want today to be interactive, so I encourage you to ask the questions on your minds. If we aren't able to get to your question, we will follow up with you after Investor Day. Just a few more items before we get started. We'll take a short break following the Inigo presentation and prior to Q&A, and then a lunch break at approximately noon, for those here, please enjoy lunch and take the opportunity to mingle with our team. Our program resumed at 12:45 for a fireside chat between our CEO, Rick Thornberry, and our CEO-elect, Mike Weinbach. Lunch and the fireside chat, we'll wrap up around 1 p.m. At that time, we invite our in-person attendees to enjoy coffee in dessert and continue to meet and mingle with members of our Radiant management team. Okay. So let's get started. Please join me in welcoming Radiant's Chief Executive Officer Rick Thornberry to the stage.

Well, great crowd here. So thank you all for joining us today, both in the room and on the webcast. We appreciate you being here as we share how Radian is moving forward as a global multi-line specialty insurer. Today is about giving you a clear view of our strategic focus, our businesses and how we are positioning the company to generate long-term value. Before we begin, I also want to just take a moment to acknowledge this will be my final Investor Day as CEO. As I recently announced my plans to retire later this year, and it's been an honor as a true privilege to lead this company for nearly a decade. And I cannot be more excited about the strength of the team and the strategy and the path ahead. We believe Radian stands stronger -- stand stronger, more resilient and with a broader opportunity set as compared to any point in our history, and we're excited to walk you through that today. Okay. With that, it is my pleasure to welcome CEO-elect Mike Weinbach to Radian. I've known Mike for nearly a decade, and I'm very excited to pass the leadership of Radian and his great team to him in August. Mike joined on Monday. And he and I are focused on a seamless transition over the next couple of months. As the business moves forward, I'm confident that he will continue to shape and execute our strategy as we evolve as a global multiline specialty insurer. He is a proven leader, brings deep experience and a strong strategic perspective on how we deploy capital and position the business for growth. I am confident that he is the right person to lead Radian into the future. Now Mike, over to you. Please join me on stage.

Thanks, Rick, and good morning, everybody. And I want to join Rick in welcoming you to the Radian 2026 Investor Day. We're really excited you're here. We're really excited to have the team share the story with you. And I'm excited to be joining the company at this transformational time in our history. I've known Rick for a good amount of time, and I followed Radian from the outside and got to know the Board, got to know Richard, other members of the management team. And what I saw from the outside was a really good company with a good culture, and importantly, a good platform for growth and capital allocation. And yes, it's day 4. It feels like a lot longer because the announcement even before I've been getting to meet people across the company and dig into the businesses a little bit. And I'm ready to upgrade the company it is great people. It is a great culture. And it is really a great platform for growth and capital allocation. And I'm not going to steal the team's thunder, they're going to share the story with you. But I would encourage you if we haven't met, I would love to meet you. I would love to hear your feedback. Let us know how we can help better tell the Radian story. And as Bob mentioned upfront, I'll be back with Rick later to share some more thoughts. But I'm going to turn it back to Rick and the team to share our incredible story. So thanks, everyone.

Just so you don't miss it. As we mentioned, we're going to come together again later today after lunch, I think at 12:45 is the expected time to do a fireside chat without a fire. All right. So before we get started, I'd like to recognize Herb Wender, Herb Wender, who we are fortunate to have here with us today, Herb's -- for decades of leadership, you told me you were coming here. His decades of leadership, including many years as Chairman and the person who I think was the founder of Radian, helped guide the company through multiple cycles, and shaped a strong foundation, and we continue -- that we continue to build on today. So we're honored to have him with us today. So thank you, Herb. Today, you're going to hear from several members of our team about how we operate as a global multiline specialty insurer, deploying capital across high-performing a high-performing mortgage insurance business and a specialty business. How we leverage our strengths and core competencies across our multiline insurance businesses to execute our strategy and serve our customers and how we approach the execution of that strategy. You will also hear today from our mortgage and specialty insurance businesses how we are positioned and why we believe rating group stands stronger, more resilient and more promising than any point in time in our history. Throughout the day, you'll hear how we believe this combination of skills and capabilities allows us to focus on what we do best strategically managing capital to generate earnings and build stockholder value Okay. For those of you who are new to our story or who may be thinking of Radian 6 months ago, let me start with who Rating Group is today and why we are built for the future. First, we are built on strength. A solid foundation has been built over nearly 50 years. Second, we're built with purpose, 2 complementary uncorrelated businesses with a diversified set of products, each executing their own business plans and generating their own earnings. With capital diversification and optimization that we believe allows a combination to be greater than the sum of the parts. Third, we are built for global reach. Our specialty insurance business expands our access to a large and diversified global market. And finally, we're built for value creation, aligned behind one clear strategy focused on creating long-term value for all our stakeholders. So this slide captures the framework of our business construct and our strategy is a global multiline specialty insurer. At our core, we are a nearly 50-year-old market-leading mortgage insurance business with a large in-force portfolio that we believe has significant embedded value. Our mortgage insurance business is not just our heritage. It is our strength, our foundation and the engine that powers everything else we do. The recent addition of Indigo, a 6-year-old highly successful entrepreneurial specialty insurance business with a highly talented team has catapulted us from a monoline mortgage insurance business company to a global multiline special insurance business. The addition of Inigo significantly expands our addressable market in terms of product lines, geographic markets and customers, and as such, provides new opportunities for growth and success. Importantly, it provides us with the strategic platform to consider further expansion across the P&C market. While our mortgage and specialty insurance business is operating independently, each executing their separate business plans. At the center of our strategy is a shared and aligned operating philosophy related to the use of proprietary data and analytics to develop our independent view of risk and price appropriately. An unwavering commitment to disciplined underwriting, our long-standing track record of strategic capital management and a deep rooted and culturally ingrained commitment to serving our customers' needs. And I think what I believe ultimately drives our success, our world-class teams operating with a value based -- within a value-based culture that fuels innovation and the execution of our strategy. These are core enterprise strengths that are not specific to the business, and we leverage them to build our business. Together, the combination of the two complementary businesses, executing on strategy is why we believe we are built for the future and positioned to enhance our earnings quality, expand opportunities and improve flexibility through the cycle. This slide speaks to the foundation of our story. Since 2017, we have consistently grown adjusted book value per share, including accumulated other comprehensive income and dividends by more than 3x and a 15% compounded annual growth rate. We did this across multiple economic environments, including periods of rising rates declining rates, economic uncertainty, housing stress and significant market volatility. The key takeaway here is our track record of growth. This reflects how we have achieved our goal of managing capital to generate earnings and build value over time across market cycles. This is the foundation that we are building on going forward with the addition of Inigo. Now let's look at that track record for growth and book value per share has translated into total stockholder return. We've delivered 241% TSR over the past decade. Despite these attractive results, we believe the value of our business is yet to be fully recognized, creating a compelling valuation starting point. This slide reinforces that point. Over the past 3 years, we've delivered strong operating performance and attractive returns on equity. When you look at how we are valued today relative to other benchmarks, particularly on a price-to-book basis, we believe it represents an attractive entry point. One does not fully reflect the quality of earnings, the strength of our MI business or the value that Inigo adds to Radian Group. We see a clear opportunity for investors, one that we've been actively utilizing through our own share repurchase activity over time. And the path to realizing that opportunity is exactly what you're going to hear about today. [indiscernible] we've always been focused on operating a simple but powerful formula. To serve our customers, underwrite risk well, manage capital carefully and deliver to stockholders. As you've seen that discipline has resulted in a track record of success that we're proud of. Along the way, we have focused on the goal of managing capital strategically with financial discipline, focused on generating high-quality earnings and building long-term value. We believe the combination of these two businesses significantly improves Radian's return profile, presenting an attractive value opportunity for stockholders going forward. It is the opportunity for increasing value created by disciplined capital management that we are focused on. Simply said, at our core, we're focused on managing capital to generate earnings and build value. So execution is where strategies succeed or fail. So let me be specific about how we deliver on ours. We executed our strategy through a simple and straightforward set of focused priorities. Think of it as Radian's strategic value bridge. First, we optimize our MI foundation. Our Mortgage Insurance business is a proven capital generative business with strong embedded value that provides a solid foundation. We are focused on improving operational efficiency while also leveraging our proprietary analytics to construct a highly valuable insurance portfolio. Megan and Steve will cover our approach to our MI business in a few minutes. Second, we're focused on profitably scaling our specialty insurance business through effective cycle management. The business is based in London and operates as a stand-alone business within Radian with the team retaining their strategic focus and culture. The addition of Inigo helps us expand our market reach, into a global uncorrelated into global and correlated markets. We're disciplined underwriting and proprietary analytics and assessment of risks are expected to drive attractive returns. Richard and team will cover our approach to our specialty business in a few minutes. Third, we manage capital by deploying it dynamically across our businesses. We do this by directing capital to the highest return opportunities across businesses, across products, across cycles, focused on building value. And Dan will cover our disciplined approach to capital management in a few minutes. Fourth, and you're going to see this in the room. We build and invest in the talent and capabilities of our world-class team because execution ultimately comes down to having the right people with the right expertise and the right -- making the right decisions. And finally, we do this all to deliver consistent results over the long term. Together, these strategic priorities are designed to reinforce one another. And importantly, they are what position us to deliver both stability and growth, not choose between them. This is how we believe our approach to executing our strategy translates into attractive risk-adjusted returns, enabling us to manage capital to generate earnings and build value over the long term across market cycles. So as we sit here today, the setup is strong and the position as a global multi-line specialty insurer is in place. The North Star and the strategy are clear. And you will hear that the team is highly focused and execution is underway. Today is about showing you how this all comes together. And importantly, that we are built for the future which is bright with possibilities. We're excited about what we are building, and we believe the best is still ahead. So let's get started. I'd like to invite Megan Bartholomew, Senior Vice President -- Senior Executive Vice President, sorry, Senior Executive Vice President and Co-head of our Mortgage Insurance business to the stage.

Good morning. I'm Megan Bartholomew and Co-Head of Mortgage Insurance, along with my colleague, Steve Keleher. I've been with Radian for 24 years starting in capital markets and spending a majority of my career here in risk management. This background gives me a particular lens on how we think about the portfolio we are building and the risk we're managing. Steve and I have collaborated closely for over 15 years. And throughout that time, we've been deeply engaged with the teams that we have the privilege of leading. What you'll hear from us today is not a change in direction. It's an acceleration. We're going to walk through, we're going to walk you through the structural tailwinds behind our business. how we think about building and managing our portfolio for maximum value and why we believe Radian is uniquely positioned to outperform in this market. First, the fundamentals are in our favor. Demographic demand and constrained housing supply created a durable backdrop for new insurance generation even in a higher rate environment. Second, we believe we have a meaningful competitive advantage in how we view and select risk. Differentiated modeling, pricing and customer analytics, I mean we're not just writing volume. We're building a portfolio that generates attractive returns over the long term. Third, technology and AI are sharpening our edge. We're enhancing underwriting, improving cycle times and deepening customer insights, allowing us to scale intelligently while staying disciplined. And finally, underpinning it all, we are built to perform through market cycles. Our disciplined approach to capital risk and portfolio construction ensures resilience in any environment. Let me spend a moment on the demand backdrop, particularly the role of the first-time home buyer, which is central to our business. First-time homebuyers represent about 21% of total home sales. But importantly, for us, they account for roughly 60% of purchased loans with mortgage insurance. They are core to our franchise. I can tell you that despite some reports, the American dream of homeownership is alive and well. People want to own a home. What we're seeing, however, is a delay in the age of the first-time homebuyers compared to prior periods. The median age of a first-time homebuyer is now 40%, the highest on record, affordability and supply constraints are pushing buyers to wait longer to enter the market. They are not walking away, and the demographics are compelling. Millennials now and their prime home buying years are the largest adult generation in America. That demand isn't going away, it's building. This is exactly where mortgage insurance plays a critical role in preserving the American dream of homeownership. While the demand to become homeowners is undeniable, affordability challenges make it harder to save for large down payments and MI provides a path for these borrowers to buy a home sooner without waiting years to accumulate additional savings. So when you connect the delayed but persistent demand and a product that directly addresses affordability, it reinforces that we -- what we expect to be a durable tailwind for our business. The supply picture reinforces that tailwind. Constrained inventory and strong demand during the pandemic helped drive double-digit increases in home prices. During that time, existing in new single-family home inventory for sale declined to an average of 1.3 million units down from $1.9 million in 2010 to 2019 and $2.3 million from 1990 to 2009. We've started to see some inventory come to market in the past few years and the average of homes available for sale reached $1.9 million in April of 2026. This persistent housing supply shortage promotes strong demand and keeps home prices elevated at a time when saving for a down payment is viewed as the most significant barrier to homeownership, and it underscores the importance of mortgage insurance, providing access to mortgage credit for low down payment mortgages. As a refresher on mortgage insurance and our mission in the housing space, I want to ground us in a few metrics that highlight just how critical this industry is, especially for Middle America families facing today's affordability challenges. Since 2018, Radian has helped 1.5 million families achieve homeownership. When we look at who we serve, roughly 60% of our borrowers are first-time homebuyers and over 1/3 have household incomes below $75,000. These are families trying to enter the market at a time when affordability is such a challenge. Mortgage insurance plays a pivotal role here by enabling borrowers to purchase a home with less than 20% down helping them enter the market sooner and begin building equity earlier in their financial journey. Before we go further, it's worth acknowledging how much the mortgage insurance industry has changed since the great financial crisis. We're serving high-quality borrowers under far more stringent underwriting and loan product standards. PMIERs, the private mortgage insurer eligibility requirements has strengthened our capital and operating framework, and we now actively distribute risk through reinsurance and other credit risk transfer mechanisms. Our pricing is dynamic and much more granular. Servicing standards, they simplify the loss mitigation options and help keep borrowers in their homes. And today's master policy brings greater clarity and consistency. This is a fundamentally stronger, more resilient industry and that matters when we talk about performance through the cycle. Mortgage insurance is a critical pillar of the housing finance system, not just for borrowers, but because of the private capital we deploy as first loss protection to lenders, Fannie Mae, Freddie Mac and ultimately, taxpayers. We are deeply engaged in Washington, D.C., ensuring policymakers understand our product, recognize our value and represent our voice and policy discussions that shape housing finance. We come to these conversations with credibility as the risk taker through the cycle with decades of mortgage credit underwriting expertise to promote a safe, sound and resilient system. Radian is viewed as respected and a constructive stakeholder in these conversations with strong channels of communication that ensure our perspectives are part of the discussion. I'm going to transition here to highlight our focus on our customers and how we deliver value through our technology platforms. Radian does business with over 1,000 lenders. We support lenders, all institution types and lenders of all sizes. Each is in their own -- their each is in a different place in terms of their technology journeys and we have developed our processes to deliver a best-in-class customer experience for all of them through our digital platform. We deliver real-time pricing to lenders every day, and efficient and scalable mortgage risk transfer mechanism for lenders. Radian has been consistently investing in the MI business with a focus on improving how we use our significant data to drive efficiency and improve our credit risk management functions. We innovate, we're agile. We engage with our lenders, our servicers and other stakeholders to see where the market, AI and technology are going so that we meet our customers where they feel most comfortable operating. As with all technology discussions, examples are helpful. An excellent example at Radian of automation and streamlining our processes is our intelligent data platform or IDP, a proprietary Gen AI solution developed internally by Radian. IDP automates document processing end-to-end, including classification, indexing, data extraction and data validation. It has customizable user interfaces tailored for different workflows and skill-based routing. And because we build it ourselves, we have flexibility to quickly and easily adapt adjusting the user interface, adjusting the routing logic or even the underlying large language model. There are night and day differences between building an IDP and prior software development initiatives where we had to rely on and customize third-party technology. IDP's accuracy in terms of document recognition and data extraction is consistently improving. Adding new documents takes days, not weeks and our lean business and technology teams are partnering to improve and scale the use cases. IDP feeds directly into our underwriting model. We combine MI application data, data extracted from documents through IDP and third-party data and analyze all of it prior to an underwriter picking up a file. Our risk-informed underwriting program automates data comparison confirms whether application data is supported by the loan file and uses underwriting rules to assess file complexity and flag exceptions. The result, our underwriters spend their attention and time on high-value activities and not on routine data verification, driving faster underwriting cycle times. Since 2020, our average underwriting time has dropped by 34%, which supports higher throughput and quicker lender response times. This process automation drives overhead cost reduction and efficiency gains and enables Radian to handle higher volumes without proportional staffing increases. And at the same time, risk and quality control validations are embedded throughout our processes. Our quality control team will flag if adjustments or improvements are necessary. We've learned over time that the most common issue is that we didn't automate an activity that could have been automated and we'll adjust, so we don't miss that opportunity in the next file. In closing, I've shared how we modernized underwriting with advanced data extraction and comparison tools. But we apply automation with discipline. Quality controls and expert oversight ensure that we automate the right steps. And our experienced underwriters are inserted precisely where their judgment is essential. And now I'll turn it over to Steve to share how we build and manage our MI portfolio.

I'm Steve Kelleher, and I'm a Senior Executive Vice President and Co-head of Mortgage Insurance. My background has primarily been sitting around mortgage credit. And my focus at Radian has been on our portfolio management and pricing, our data strategy and some of our operational functions. Prior to Radian, I worked with Freddie Mac and as a consultant at risk span both focused on U.S. mortgage credit. I'm happy to be partnering with Megan as we know the business, we know this team. And we have shared conviction about where we're taking it. You just heard from Megan how Radian supports the U.S. housing system, some of the tailwinds that are favorable for our business and how we are leveraging best-in-class technology to efficiently serve our customers. What I'd like to do is walk you through how we maximize the value of our portfolio, including what we focus on, how our approach works and the evidence that it is delivering results. For those of you who joined us at our 2023 Investor Day or who have listened to our quarterly earnings calls, some of what I shared today will look and sound familiar. That's because although we are agile in how we pursue our strategy, our strategy itself remains quite consistent. I'll start with what we're focused on, and that is maximizing the economic value of our portfolio. So what exactly does that mean? What I'm referring to here is the projected amount of future earnings on deployed capital, less the cost of holding that capital. With respect to new business, it's determined by the capital required to support the volume we write. So the equations at the bottom will start with the complex ones. So that's the new insurance written times capital, very important the capital piece, not just the new insurance written. The second piece is how long that capital will be outstanding since the duration piece. And the third is the returns we generate in excess of our cost of capital as the piece off to the right. So essentially, net income minus cost of capital. That's a simple version. This is the vision for our MI business. We leverage our analytics and our approach to pricing to identify and acquire new business with the highest economic value. We believe our ability to write an outsized share of economic values compared to our competitors unique and not easily replicable and it's ultimately how we generate alpha in the mortgage insurance industry. So how do we do this? We've developed a suite of analytical tools and models, which we leverage when it comes to pricing and portfolio management. This is a process and it continually adjusts as the market changes and our view evolves. The foundation of our approach is our assessment of risk. We use our proprietary model radar to project loan performance through a simulation of future economic paths and then calculate the premium rates for each granular market segment that would be required to achieve a risk-neutral return. This, of course, varies by many things. It varies by credit attributes, things like loan-to-value ratios, credit scores, debt-to-income ratios. As an example, a policy with a 90% loan-to-value ratio is projected to generate higher losses as compared to 1 with an 85% loan-to-value ratio, and that 90 LTV is going to require more capital to be held for a longer period of time. The higher-risk loan, the 90 LTV, would obviously require a higher premium to generate the same return. This also varies by lender due to performance differences and differences in expenses and it varies by geographic region, given the differences in economic trends, and I'll touch more on that in a moment. Our risk assessment and projected performance is just the start, though. Today's price-driven market requires that we continually monitor the competitive landscape to understand where the market clearing rates are as this information is a critical input to enable our pricing model so are to optimize our pricing from maximum value. An example I've used in the past is that fundamental analysis may indicate that a particular stock is worth $100 a share, and that may be the true value. but you wouldn't know if you're a buyer or a seller, unless you know what the market price is. So we have a very strong focus on this part of this process. And things are constantly changing, whether it be our views on the future economic environment at a local level, our loan performance projections, market pricing. And that's why we built our process to identify these changes and quickly adjust accordingly. Mortgage insurance pricing is primarily done 2 ways: black box pricing and static rate cards. Everything I've shared with you here is why we lean into the market where we can adjust pricing quickly and granularly, that is through our black box pricing and why we are strategically underweight in the segment of the market where pricing is offered by cards, which limit our ability to be selective in the risk that we write. I mentioned geographic region as being a key consideration in our evaluation projected performance. And this chart provides an excellent example of why that is. The gray line here is actual house price appreciation in Phoenix starting in 2005. And above the access is house price growth, below the access is house price decline. And what we've overlaid here is 5-year projections from a radar model at 5 different points in time, 2005, 2008, 2011, 2015 and 2021. We shared this view at our last Investor Day through 2020, highlighting our model's ability to accurately predict HPA changes at a regional level. And in this updated view, which now includes additional years, you can see our models have continued to perform quite well. This is in part due to the approach that we use that leverages fundamentals, things like wage growth at the local level, population demographic trends, housing stock to estimate over and undervaluedness as well as more real-time indicators, again, at the local level, like days on the market, shares of distressed sales, listings removed without sale and others. There's a lot of economic value opportunity if you can allocate more capital in the areas that will experience favorable trends in future periods while our policies are active. This is consistent with what we shared at our last Investor Day. It's pretty intuitive. Our approach would require a significantly higher premium for a policy part policy in a market where the outlook is less favorable as compared to that same policy if I were written in a market that is projected to experience more favorable trends. As an example, in Phoenix, our model would project a better performance for loan originated Phoenix in 2011 as compared to Phoenix in 2005 through 2007. So this is what we've done. Based on internal analysis and using publicly available loan performance data sets from Fannie Mae and Freddie Mac, we estimate our best-in-class MI underwriting and pricing has produced higher returns and produce a competitive advantage as compared to our peers. I mentioned that our approach is working, that there's proof in the pudding here. So I'm going to use 2023 originations as an example, but I want to be clear, the story holds true with other vintages as well. In fact, we used our 2022 originations at our last Investor Day to highlight a similar point. In the chart, what we did is we divided all of the metropolitan statistical areas, or MSAs in the U.S. into 3 groups, the top 40%, that's performing 40% in terms of house price growth, the middle and the bottom 40%. And what you're seeing here is that with 3 years of development, we can definitively show that our approach has enabled us to overallocate our market share in the best 40% of markets that have experienced 16% house price growth, and we were able to underallocate in the areas with less home price growth. And there's a saying, a rising tide lifts all boats. And this chart shows that even the markets we were under allocated in still experienced positive growth. However, as history has shown that will not always be the case. And we believe our ability here is unique and positions us favorably vis-a-vis others in our industry. Sticking with the 2023 Ventures as an example, you can see how the book is performing for Radian as compared to others in the industry. The chart on the left shows the dispersion in default rates that range from 1.5% to 3.5% as of first quarter 2026. This is primarily due to each mortgage insurers' risk selection. Now we're all in the same industry. So even though there are differences in absolute levels, you can still see similarity in terms of development and seasonality, et cetera. But default rates are a measure of performance with no consideration of value. And what's shown in the chart on the right for those that report is cumulative incurred loss ratios. And these are calculated by dividing total incurred losses to date by premiums earned. So this starts to bring in value into the equation, not capital yet, but the value now, you can see is showing that Radian is consistently in line or lower than our peers that disclose this metric. This is important because without considering premium that may appear on the left is if a 1.5% default rate is better than Radian's 2.6% default rate, but that's not the case. Our focus on value has led us to deploy capital in segments that could otherwise be viewed as riskier. But importantly, those same segments are priced with higher premium rates such that they generate loss ratios in line with Pier 4, who wrote lower risk volume that required less capital and is priced at lower premium rates. As the title of the slide states, we're not in the game of minimizing risk. We're focused on maximizing value. So just to maximize the economic value of new business is important to us. Ensuring our portfolio is well positioned to manage through varying economic conditions is equally important. For over a decade, Radian has been leveraging risk distribution to manage capital and earnings volatility. We have agreements covering a portion of our risk on 99% of our exposure written from 2022 through today. and we have agreements in place that will be covering newly written business for years to come before that business is even written. But we are quite selective in our approach. As an example, nearly 2/3 of our pre-2020 exposure is not subject to risk distribution, and that's very intentional. Given the significant embedded equity, we're very comfortable retaining that exposure and the associated premium. This is true with the cushion we maintain above what is required by PMIERs, which is what Fannie Mae and Freddie Mac require in order to be an eligible insurer. PMIERs is a very strong capital framework, but it does not account for certain factors that drive performance. As an example, PMIER does not consider accumulated borrower equity since time of origination, which means that the same capital is required on policies written in areas that have recently seen house price declines as is required in policies or policies in areas that have seen meaningful growth. As I shared a few minutes ago, we believe we're building a favorable portfolio as compared to the overall industry, and part of that shows up in less projected volatility. This influences the sizing of the cushion we maintain above the required level. We establish an appropriate PMIERs cushion based on projected performance and stress conditions, and Dan will share more on that later. And notably, we do not take a bigger is better approach. We think this is the right approach. To be clear, and you can see on the chart on the right, we see the least out of any of our peers that report this 32% of our risk we see and actually prior to the Inigo transaction, I believe we're the only MI that had available assets that could fully support our required assets with no use of risk distribution. So we could certainly see the additional risk and premium to increase our cushion, but we find more value in keeping both on our balance sheet as we believe it benefits shareholders. My hope is that you take away from today that we believe we have strong fundamentals in our favor. We believe we have a meaningful competitive advantage in how we view and select risk. We're leaning into technology and to support our customers and drive efficiency. And finally, our business has been built to perform through market cycles. I'd like to thank each of you for your interest in Radian's Mortgage Insurance business. Meg and I will continue to work together with [indiscernible] Radian to position our business for continued success. Look forward to meeting and speaking with most of you, all of you later over lunch. And I'd like now to welcome Richard Watson, CEO of Inigo and members of the executive leadership team to the stage.

Thank you, Steve. Megan, Fantastic. What a great story. Thank you for the introduction. Good morning, everybody. It is an absolute pleasure to be here. I'm joined by, as you can see, by a good range of my fabulous team. It is our pleasure and our privilege to introduce you to the story of Inigo. This is the agenda. This is what we're going to take you through. So I'm going to start with a little bit of an intro to the company, mostly because I think it helps to set the context for what we do and what we want to do going forward. So we'll talk a little bit about that. We'll talk obviously about the Radian deal and why that appeals to us so much. And then -- more importantly, I think, is we'll spend a bit of time talking about what we think sets Inigo apart from the rest of the market. And then I will close. Now, there is clearly a severe chance that we will bore you to death. So at the end of this, Bob in his absolute wisdom has put a coffee break in. So we're going to wake you up with some highly dosed caffeine and then going to come back for a Q&A. So I hope that you had lots of good questions to ask. We are delighted to be joined by a good number of our team. We plan half a dozen of our team over so that you can have a chance to see them as well. If you wouldn't mind guys standing up wherever you are, the very least, it would help everybody know who to come and talk to you. These are people I would walk over hot coals for. Flavor, we've got underwrites our casualty book and immense talent, Ludo. I see here heads up our catastrophe research, which is fundamental to what we do. I know you brought some of that research with you for the geeky people in the audience. Neck Lazarus underwrites our U.S. treaty book and probably underwrites more premium than anybody else individually at Inigo. So it's great to see him here. B, we have as our Chief of Staff, Chris underwrites direct and [indiscernible] which is another word for our big property in all its various forms. That again is our biggest single account. And George is the backbone of the business because we actually call him, hey, George. That was -- you could in that because if you've ever been with George Stratz to an industry convention, it's a net you cannot get from one meeting to another without having to stop and talk to 10 people will go, hey, George. I happen to know everybody. So look, the teams here, they're here to talk to you. They are very genuinely an awful lot smarter than me and they're certainly more in discrete. So if you really want to understand what's going on, take the time over coffee or over lunch to have a chat to them. So the Inigo story, kind of brief introduction to Inigo. So we started at 5.5 years ago. I've been very privileged to work in this industry now for over 40 years, and I've had some fantastic colleagues to work with, both as colleagues, but also some wonderful people to work with as customers. And in talking to Steward, Russ, Craig, George, right at the very beginning of this venture. I think all of us had this kind of edge to see whether we could set a business up to see whether we could repeat all the really good things that we've seen in our careers. Can we sort of change that up and create a company that did that? And this was back in 2020. So the -- and the other thing that was happening in 2020, of course, was COVID. I mean the market itself had a couple of really bad years and then COVID hit and that completely upended it. And so for us, that was just like this perfect chance to say, why don't we get together and do this? This is the perfect opportunity too. So that's what we -- that's when we started, it was 2020. We started trading in 2021, and we all agreed, I would say, literally, all of us agreed on this really basic approach. So on the left-hand side there, you see a number of -- I suppose like building blocks really as to how we wanted to start the company -- the first thing was focus, focus, focus. Can we not try and be all things to all people. Can we just try and focus in on areas where customers really value you, but also areas where typically they earned good returns over time. And just forget the rest because most insurance companies end up drifting into ever less profitable, less exciting areas where, frankly, they don't bring much unique, compelling proposition. We don't want to do that. We're just like let's go deep and what we're going to underwrite. The other thing was leadership and expertise. That was fundamental to all of us. It's fair to say that it's really hard to know we broker facilities, I sort of clever follow underwriting, the sort of compression of margin. It's hard to know where the market is going to go and what it's going to look like. I mean I wouldn't -- I could give you 4 or 5 different visions. But the one thing I feel really certain about is that expertise, deep expertise will always be needed and will always be rewarded. So we're going to focus on a limited number of classes. We're going to bring expertise and leadership. That's the challenge we set ourselves every day. And then lastly, can we just keep it really simple. We've probably all worked in companies where they had a level of complexity that brought cost, it brought distraction. I mean you weren't talking about customers or underwriting deals, I just mean you have kind of matrix management hell. So can we just try and do it in a way that was really simple. In our case, that's one capital base. It's one office. Just everything there to it's tangible, it's there to control. So look, so far, so simple. This was the kind of building blocks of it. But how do you turn that into a compelling proposition for your customers and for your staff. So we focused on these three areas on the other side of the graph. First of all, was the customer, could we put the customer at the front because it's quite funny. I would say in the 40-plus years, it was very obvious to me that the customers be an afterthought in the specialty insurance game. It's become very transactional. There is always literally a gap between client exec and customer and placing broker an insurer. And we want to just break that down. We wanted to get close to the customer to understand them and their needs at a really granular level. And to work with some people who are at the top end of the market spending massive sums of money. And all they get back is this flings bit of paper and occasionally, they get to meet us. So can we do better than that? It's a pretty low bar. I think it's really easy to do better than that. and you are pushing on an open door. Customers love talking about their business. Those are risk managers. They just want to come into the office and help the business run better, to avoid or to mitigate risk, to try and make it better. So you're pushing on an open door and trying to get close to the customer and understand what they do. Now look, you don't have to be a kind of industry event to look at data analytics and say, this is going to be critical to the future of the industry. What was very apparent to us was that as a new company, we had an immediate advantage over a lot of the existing companies because we didn't have outdated tech. We didn't have competing priorities. We didn't have all sorts of other things that would get distracted by, we could have a really good tech and data stack and really play to that. And it also just fundamentally appeal because the sort of people we are a bit geeky and numerous. So we quite like this analytics and try to understand the science behind it. So we knew we're going to double down on the data analytics piece. And the same in examples of where we can do that. I know [indiscernible] will come and take you through it. But I started my career in the property insurance game. We would write big commercial industrial risks. They would come typically with this much paper, would be handed to you all about a week before renewal. There were engineering reports. So some wonderful surveyor has gone through and looked at every single building, look to recommendations that they could have given you all these details. And by and large, as underwriters, we're typically not engineers. You've got this much to go say, what are you going to do? You're going to pull out 1 or 2? Have a look at the biggest maybe get a feel for those any recommendations. You're going to get -- and then you're just going to bin it, literally bind it. And for all these years I've been doing this, you imagine how much information is contained in those reports, all right? I mean it's huge there may be 50 data fields and maybe only 20 of them are relevant, but all of that has been lost before. And now we can digitize it, we can analyze it. We can now digitize and analyze the claims reports. Now I can start linking claims active any outcomes to reports, recommendations, observations, technical knowledge, I can start to see it. Is that recommendation a really big deal? Or is that only going to drive outcomes a little that one. Oh my God, that is way more important. That's a massive premium credit or debit. We can start tying them together for the first time. So the ability to use what's available now, the technology that's available is mind long to me and fantastic. Ludo will take you through some of the work we're doing on climate. I mean imagine using AI to predict the weather, not 24 hours ahead, but how about 2 weeks ahead, how about a month ahead Imagine the advantage I can gain in the market by having just more notice of big events and what they're going to look like. So the pie data analytics piece is hugely important. The last one of the 3 big ones there is culture. I would say in our industry, I think it's fair to say the success of companies in our industry is defined by the talent you have -- if you have great people, even if your strategy is a bit up and down, even if you make some mistakes and we all make mistakes, if you have really, really good people, any bump in the road, they'll find an answer, the finer solution. Even if it's a media strategy, they'll make it work because they're great people. You have to have a culture that attracts great people and retains them. So this was a very deliberate part of the design of Inigo was how do we create a culture? What is the collagen, we'll talk about that. Andrew will take us through that. So we'll talk about it in detail. What does that look like? The natural outcome of all of that, if you do those things really well, the natural outcome is that you have excellent underwriting. But you've got to do all 3. You can have 2 of those. You can have pretty good culture, pretty good customer focus, but you don't have the data electrics you're done. So you need all 3. That to me is the sort of magic source of what it is that we're doing. I'm going to hand over to Stuart now for a couple of minutes to talk about the progress of the company and the financial highlights.

Good morning, everybody. Thank you, Richard. So I want to give you a very brief history of Inigo and develop a little bit on some of the thoughts that Richard had. The founding idea for the company came just over 6 years ago in May 2020 from Richard. And having had the founding idea we then spent the next few months developing a pretty detailed business plan because we knew that was going to be the driver of what we were going to do for the next few years. And on the back of that, we then raised $700 million of capital which we raised in mid-November 2020. We then gained the necessary regulatory consents we had -- but an important matter of this was we were ready to go on the first of January 2021, a very important date for us because it's probably the largest renewal season for the reinsurance team and to get into the market for that day was pretty critical to our strategy. Richard has commented the fact that 2020 was, of course, the COVID era. So we raised all the funds over Zoom, which tend out to be very efficient because the investors can't hide and say they're out and they're away. They're always there. You know where they are. big plus. But the other thing that came out of that for me is Richard's comments on culture that because we also recruited of course, the first 60, 70 people over Zoom getting the culture right from the outset was really important because in 1 day, a lot of people who didn't know each other, you'd say, coming to the office, you all get on, it will be fine. And actually, knowing that there was a structure behind them culture-wise, and everybody was very similar in many ways was just a tremendously important thing to get right at the outset. Over the next few years, we've got more teams on board getting a very focused and very limited number of lines of business that we felt we could write very profitably going forward. At the same time, kept developing the analytics and the pricing tools and with Ludo and the team, the catastrophe research and very much a focused, limited number of lines of business where we can go deep with a deep expertise, which I think is at the core of our business still today. So the first 5 years, we delivered strong, profitable growth and understand writing for profit is our key aim and we will always continue to focus on that. Another thing I'd comment about this is it's very critical, given we had quite a strong market when we started that we keep a focus on our expense ratio which we did, and I think we've done pretty successfully between '22 and '25 because as the market softens, you don't want to have a problem caused by the high expense ratio going into a slightly softer market. So we spent a lot of time managing that well. So I'm going to hand back to Richard with those thoughts.

Sure. Thank you very much indeed. So let me -- if I may look at the Radian deal because clearly, you will want to know how we feel about it and how we see the future as part of the Radian Group. We always knew that we needed to find permanent capital. From the moment we set the syndicate, we had private equity behind us. They were great. I mean they get a bad rap, but actually, they were great with us. But it's always temporary, right? We want permanent capital. I kind of want capital speed just not the thing we're talking about. I want us to talk about the business and how we underwrite. So for me, it was always something that we knew we had to do. We talked about it very openly within the company. So there was no great sort of drama or surprise when this happened. We knew we had to do that. Unlike any kind of like any kind of finding a partner, it's a bit of a dating game, right? So you have a wish list, we had a wish list. It was sort of classically smoker solvent good sense of humor. We had [indiscernible]. This is what we like in the perfect part. I know this sounds cheap when I say it, but I very genuinely mean it. When we met Rick and the team and we got together with [indiscernible] and that was like, oh my God, every single box tick. This is absolutely perfect. So look, look at it from my point of view and crowns sort of see in the next couple of slides how I see this combination. I mean there are a couple of what I described as structural advantages. We've got more capital. So we've got the ability now to support that growth, and we're very ambitious in the way that we look at the next 5, 10, 20 years. we've got much greater portfolio diversification. That really helps us manage the volatility that is inherent in businesses like ours. And really critically, no business flash. I haven't suddenly got two departments to do the same thing. There's no like tedious do they report to them, but they report none of that. So it's a complete freedom from that. And there's no channel conflict. I can be an insurer, I can be a reinsurer, I can be a wholesale market, I can be a retail market. It's all open to us. That is fabulous. And One of the things that is really important to us emotionally was this thing that we keep the brand was the fact we have that independence. We have that ability to drive this business wherever we see opportunity. And that is an extraordinary thing. Think of who else could come to this party and do this and give us that benefit. I take pretty much nobody. So that's a phenomenal thing for us. We're over the moon. It's a great -- it's a great opportunity for us. The other thing was -- and I loved it when Steve and Megan talked about their business because we -- obviously, we haven't known each other that long, but it feels like we're Blood Brothers. I mean you talk about your business in exactly the same way that search for strong underwriting returns that search for some level of science and analysis behind what you do, the ability that you want to reinvent how you do and what you do through I mean what -- that's a great match for us. So look, we see here a true partnership. And the biggest thing when I think about and certainly when we talk about it, it gives us choices as a group now, we've got choices. We've got this ability now when we look at the capital that we produce -- we've got choices about where we invested, not just within MI. We can put more money into mice, we can do more there. But we now bring the ability to invest and look for opportunities in the insurance market, in the reinsurance market and in the 1/3 of our division's partnerships, which George [indiscernible]. That's where we're dealing typically with big points of aggregation that could be NGs, it could be brokers. And that can be both an underwriting opportunity, but also an equity opportunity. So we are bringing choices here, which I am delighted with. And what that means is we have a much greater capability of managing volatility and enhancing the return. And that puts us in that bottom right-hand corner of the graph. And that's where we think we're going to drive great shareholder value. If we can show you over time that we consistently sit in that bottom right-hand corner of the graph. And the other thing it allows us to do as a partnership and invest in all these areas that we think are critical customer-focused culture data and analytics. And we're going to go through each of those, and the team will talk to you about it. So it becomes more tangible. It's not just me saying a word, it's something real. So we'll have a chance to do that. But you'll recall at the beginning, what I said was if you do those 3 things well, one thing will happen, you will have fantastic underwriting results. And on that note Mr. Russell Merrett.

Thank you very much, Richard. All right. Well, my pleasure to give you a brief introduction to Inigo's underwriting portfolio. We're organized into 3 divisions: insurance, reinsurance and partnerships, as Richard just cited. The first are pretty self-explanatory. The Partnerships division is where we concentrate the small amount of delegated underwriting that we do partnering with experts to access risk types and classes of business and geographies that we can't efficiently access from London. So for example, we support a high-value homeowners MGA here in the U.S. a distressed market that they can access very efficiently, and we're also a founding investor in that MGA. All of our divisions have a mix of short tail, longer tail and specialty lines. And as you've heard, we underwrite relatively few lines of business. We target those that have a realistic prospect of good returns over the medium term. They need to be able to be material in size, and we need to have expertise that we can offer differentiated lead capacity. So that's a few enough lines that each can have the attention it deserves, but enough that we can build the foundations of a diversified and balanced portfolio. We've actually added roughly 1 to 2 lines of new business per year as we've dynamically evolved the Inigo portfolio. Today, the largest lines are our property insurance and reinsurance lines, where rates have been fantastic, but are regrettably becoming more challenging, more on that and none followed by our U.S. casualty lines where more pleasingly, rates are generally stable and in some cases, improving. So our aim, as has been stated, is underwriting excellence. That means underwriting for profit rather than for growth on the end in itself. And beyond that, we do aim to grow over time, but we expect that growth to be jagged uneven. We may have to hold or even reduce our underwriting, but we will push on with growth decisively when the opportunities are right. What is underwriting excellence. Well, for us, that means really targeting higher-than-average returns captured in lower net combined ratios and lower than average volatility. So I'll tell you a little bit about how we hope to achieve that. On this slide, we see some evidence of cycle management in action. I picked out 2 lines of business, both D&O and property telling different tails. In the directors and offices insurance line, we were very quickly out of the blocks in 2021, writing more than $120 million of premium rates in that class had gone sharpened very dramatically after years of underperformance, and we were able to seize that opportunity when we started. Rates, unfortunately, as you'll see from the index began to fall as soon as 2022, as other capacity entered the market and others realized how attractive they were. And yet they were still at a very fine level we were able to push on and grow. Since '23, rates have fallen further, and we've had to reduce the amount of D&O GWP gross pride that we've written. Meanwhile, a different story on the right side of the graph in our property insurance and reinsurance lines where we were able to triple our premium or more than triple our premium between 2021 and 2025 as rates increased very sharply in '22 and '23, in particular, after some very large catastrophe activity, especially hurricane Ian. As I've said, rates in some of those lines are now starting to fall off, but we do still find opportunities to underwrite profitable business risks are not homogeneously priced, and we have the technology and the skills to identify the attractively priced risks. So it might look like Inigo's growth has just been a story of doing a bit more of everything. But beneath the surface, we have been dynamically evolving the portfolio of Inigo whilst we've grown to try and target an optimal portfolio. All right. So underwriting excellence, we said, has 2 aspects to it. It's risk selection and managing volatility. And this chart gives some evidence that we've had success in managing our volatility. On the left-hand side of the chart, you can see our profitability by quarter going back to 2022. I've called out some of the bigger events of this period on that chart. And you can see that those big events, hurricanes and wind storms and wildfires have influenced our profit by quarter. But, on the right-hand side of the chart, you can see that they have not got in the way of us achieving profitability. None of the big events that was called -- that are identified here was allowed to be so large that they caused our annual results to be negative. I think a product of a careful growth portfolio construction, but also the judicious use of reinsurance and retrocession protections to protect net account from the kind of big events that we do expect occasionally to be hit by. We made a profit overall in 2022 in spite of a loss in the third quarter that was caused by Hurricane Ian itself the second costliest cat in modern history, but many other specialty insurers and reinsurers did not was something of a roller coaster ride. I'm sure you remember, the first quarter was dominated by the extraordinary wildfires in California, and we made only a small profit. But in the very cap quiet second and third quarters, we were able to generate substantial profit also supported by our increasingly diversified portfolio. And ultimately, we made a record profit and achieved the top quartile net combined ratio in Lloyd's in 2025. So I don't want to shy away from the fact that we do take catastrophe risk, but we have to do this within known parameters and tightly, and it always depends on us being well paid for taking that risk. So we managed to Board made -- sorry, managed a tight board-mandated metrics and also to detailed plans based on our expectations of market conditions. And in the future, we plan to disclose our model tail exposures to you in certain lines of business to enhance investor understanding and transparency of how we manage risks and how we might be impacted by large events. So to better familiarize you with all of this and our potential large loss exposures, I'm going to try and explain how we will share those aspects with you through box plot and whisked diagrams. An example graphic is found on the left, and you may find it easier to look at your iPads. Here, we identified the expected impact to impact Inigo of major caps of a given size and peril. We start by identifying how big the loss related to significant events like hurricanes and earthquakes might be to the insurance market as a whole and the probability of events of that size. For example, we estimate that it's about a 1 in 7 probability, but this year, a windstorm in Florida will generate insured losses of more than $20 billion. Next, we calculate for insured market losses of a given size, for example, the range, $20 billion to $50 billion. What might be the final net impact upon Inigo, final net, meaning after reinsurance recoveries and in was an outwards reinstatement premiums. The blue boxes show the interquartile range. But Inigo, 50% of the time, our final net loss is expected to fall in those boxes. The whiskers communicate that 90% of the time, Inigo's final net loss is expected to fall in this slightly larger range. So if there were 100 modeled scenarios in the $20 billion to $50 billion insured market loss range in 50 instances and it goes loss would fall in the blue boxes and 20 would be in each whisker above and below the interquartile range 5 would be above the top risk and 5% below the bottom mist. The actual outcome will depend on the detail. Is it a $50 billion or $20 billion event? Was there more wins than flat? Was it a slow-moving storm or a quick moving storm, but details are important. Our market share will be slightly different. So it depends exactly where the hurricane, for example, made landfall. We've learned that in big losses, there are always surprises as well. So we should remember these are modeled scenarios. Okay. On the next slide, we're going to give hoops some real examples of our exposures in some of our key peril zones. So on the left, we have Florida Windstorm, which is essentially hurricanes and on the right, for Callison earthquake. You'll see that generally, our expected final net loss increases as the size of industry loss increases but not surprisingly, for very large events. And on the right-hand side of each chart, we are looking at $200 billion-plus market events. There is a greater variability from the much greater complexity of those large loss scenarios. A real example would be Hurricane Ian of 2022, which if we indexed at 6% per annum, would cost the industry today about $60 billion. So it falls squarely into that second column on the left. And that indicates that a median loss for Eneco from an event of that size would be about $100 million. Now that's a number we're comfortable with. And in fact, the size of net losses shown here for some really enormous market-moving events, feel appropriate to ask the big infrequent cat events and of an order of magnitude that we can manage within the significant loss experience that we expect in any given year and in the context of the returns that we expect to generate in underwriting this business in the first place. Overall, we believe that the volatility of our net is more controlled than is typical for our industry. Our industry exposure industry disclosure on these exposures is very mixed, it is often opaque and no 2 carriers can seem to an agree on an identical basis to disclose. Is it the carrier's view? Or is it the vendor? Is it a worldwide distribution or apparel zone-specific. Is it the 200 year or the 100 year? Is it AP or OEP? I'm sure some of you are familiar with these terms. What we say we are going to do is look to be transparent, considered and appropriately thorough in what we disclose to try and minimize surprises. So thank you for staying with me through that technical journey. You'll see that -- we will take risk, ideally evidenced over time with net combined ratios that are lower than average and with controlled volatility. But to learn more about how we take full advantage of what advances in data and analytics can offer us, I'm pleased to hand over to our Chief Operating and Technology Officer, Erdal Atakan.

I'll start with a question. Why is data so important to us? Well, let me explain. For the love of data is a statement that we use to describe our obsession with searching for, collecting, curating, storing and analyzing data. Since the inception of Inigo, our ambition has been to marry the science of understanding risk with the art of underwriting. By turning data into insights and actions, we believe we're able to select better risks while providing value back to our customers. To achieve this, our approach is a simple one. Firstly, data. We utilize our in-house experts, our network of external partners to collect and store both structured and unstructured data in our modern data platform. Secondly, models. Our analytics team enhanced pricing models to incorporate new pricing factors, utilizing the data we collect to increase our understanding of risk and the quantification of it. Finally, systems. Our technology teams develop modern underwriting and pricing platforms to surface these insights at the point of underwriting. We believe this derives 2 main outcomes. Firstly, we believe we can select more attractive risk and optimize our portfolio. And secondly, as Craig will highlight shortly, we aim to educate and provide value back to our clients using these insights. Over the last few years, we've developed our own proprietary underwriting workbench. We call this internally Ignite. The platform acts as our underwriters' cockpit as the image depicts. It guides a submission through the quoting process. It integrates pricing and analytics systems together. It provides management information to monitor the performance of our portfolios and help -- and it also helps collect client insights together in one place. So ultimately, platform supports our underwriting teams with risk selection by servicing insights and analytics at the point of underwriting. Now here are a few examples of how we approach our business. Russell earlier talked about natural catastrophes. So going a bit into that, we've increased our understanding of hurricanes by utilizing publicly available data and combining that with machine learning techniques to help improve the predictions of these events, and I'll touch on this in a little detail shortly. Engineering reports. Now Richard gave you a good description of this. So we require risk assessments when underwriting commercial property risks, which we deem high in value and technical in nature. The data in each we report we receive is structured using AI tools and then the results surfaced back to underwriting teams. This saves a significant amount of time when assessing them. We've also collected millions of telematics and GPS data points [Audio Gap] with larger adjustments to less frequent events. So you can see the 1 in 100. Now we believe the outcome of doing this, these adjustments helps us improve how we select risk, how we manage our overall portfolio, how we deploy capital and the level of reinsurance protection we purchase. And secondly, we also believe this improves the strength of the relationships we have with multiple different parties, be it by providing insight back to our clients, by publishing research articles and insights and improving the confidence our regulators have in us. Our colleague [ Ludo ], who just had a few shout-outs, he manages the Cat research team and will be available to answer any difficult questions you may have on these topics. All right. So as a technologist at heart, I have to mention innovation and AI. So our teams have a culture of continuous learning and exploration. It's actually one of our values. We aim to apply the latest tools and techniques to positively impact the P&L. We're applying a range of AI tools across traditional machine learning, generative AI. And now I mean, I'm sure as everyone else is looking at agentic AI to increase our knowledge to scale efficiently like most others are and also to shift our teams to becoming AI natives. Now our current aim is to apply these into 4 areas, as I've shown on this diagram. Firstly, into underwriting teams by creating tools to augment knowledge and judgment to supporting a human's chain of thought, so they don't have any blind spots or we reduce blind spots. In the claims team by automating the monitoring and detection of signals that may cause us concern from loss notifications. With hurricane predictions, we're going to continue the work we've been doing with academia to utilize AI and neural networks to increase the accuracy of hurricane forecasting. And finally, pursuing general productivity across all of our company, equipping and training all of our teams with the skills, confidence and, of course, literacy to utilize AI agents within their day job. Now I will shortly explain that the drive for utilizing data analytics is actually enabled by, I believe, our strong culture. One of the ways we achieve this is by generating excitement in collaboration by hosting hackathons. We do this with employees, partners and actually most recently, customers. And so in closing, we believe the combination of analytics, data, technology and culture is a winning one. And I'm going to hand over to Craig to tell you more about our customer focus. Thank you.

Thank you, Erdal. Good morning, everyone. I'm Craig Knightley, and I'm the insurance team CEO here at Inigo. I'm going to ask you a question now. It's going to take a slight risk given I've got such an industrious group in front of me. How many of you in this room have ever spent $100 million on a single purchase? Dan, [indiscernible] up his hand. That was a great purchase, $1.7 billion bargain, well done. That wasn't reverse -- I didn't see any hands got up on those ones. So now let's pretend you're going to spend $100 million on a single purchase. What would you expect for it? Now some of our customers spend $100 million or more on insurance every year. And what do they receive in return? A promise to pay valid claims if something goes wrong. But at Inigo, we believe customers, as you've heard, should receive more value than that given they spend so much. My job over the next few minutes is to explain to you how we've been trying to do this since the company began. Now Richard and Russell have already explained how we've gone narrow and deep with our product set. And that focus has enabled us to build market-leading underwriting teams. And the blueprint shown on the right here is how we've set each team up. This isn't rocket science. This is about really focusing on those fundamentals. We've ensured that we've had a really strong claims handling team from day 1. We've had material line sizes such our capacity is sought after. And we've ensured that we've delivered various product innovations so we remain relevant with both brokers and customers whilst also being really easy to deal with and having fast response times. We regularly receive feedback from brokers on these dimensions, and we've been scoring consistently well since we began. And it's really importantly in the coming years, we maintain those scores. So who are our customers? Our business is structured around 3 core customer types, and we've already walked through these divisions, large corporates, insurance distributors and reinsurance companies -- sorry, insurance companies. In the insurance team, which I lead, we are typically insuring large public businesses. We currently insure almost half of the S&P 500. So you can imagine that many of the customers that we have are companies that you guys would know well. As you imagine, these are well-risk managed businesses and sophisticated buyers of insurance. Our second division, led by George, is partnerships. And this is where we combine with distributors of insurance to create value together. Our customers in this division are those distributors. How can we be a more attractive partner for them than our peers. We've already talked about this example with Motion Specialty, where we have an equity stake in the business and we'll common share our cat research insights, which Erdal walked you through earlier, our Inigo view of risk with them. We're very transparent with our data analytics, and we commonly pay this back to all partners that we have. Our third division is the reinsurance division, and this is where we partner with small and large insurance companies to help them manage their risk using our balance sheet. Again, we will commonly share our research and insights with these companies so we can provide more value than just the reinsurance policy. I'm now going to jump into the insurance division and show you how the book is made up by customer. So as you can see, we've got quite a finite number of customers, only 6,000 customers. But beneath the surface, there's another dynamic going on. 250 of our customers account for 40% of our premium. So a very finite number of customers account for a significant amount of what we do. And the second chart shows you that many of these customers currently only buy one product from us. So many of these businesses will buy D&O, GL, casualty, cyber and D&O. But typically, from Inigo, they're only buying one of these products. And having discussed with these customers what share of their spend we are, it is very rare to be above 1% of their total spend. So in that example, if they were spending $100 million to $200 million, we might only have $500,000 or up to maybe $2 million. It's very rare that we'd be over 1% However, when we look at the biggest insurers on their panel, many of -- the biggest ones could be 5% to 10% of their spend. And therefore, there's a real opportunity for us. So if you look at these graphs together, you can see that there is a finite number of customers that drive our premium that we often currently only sell them one policy, and it's very rare for us to have more than 1% of their total spend. And therefore, when you add that all up, the opportunity to do more with a finite number of customers is tangible. So how are we trying to do this? At the start of 2025, we launched our core customer offering, Horizon. This is focused on a select number of customers. It's grown from 25 customers in 2025 to more than 60 in 2026, and we plan to scale this again into 2027. Horizon has been designed to offer these customers a program of benefits that goes beyond simply offering them an insurance policy. The program benefits are now listed on screen. And as I've said, this program is really about bringing the best of Inigo Bet to bear for these customers. Erdal has already talked about data analytics. That's a core part of it, but also leveraging our teams and our culture by getting the underwriting and claims team to spend significant time with these customers. We regularly meet with these customers to share our latest insights with them as well as host them once a year for our annual Horizon event, which is in our offices in London. Two of the main benefits are our Insight Pack and inform Inigo for Risk Managers, which is our internship program. I'm now going to jump into these 2 benefits to give you more detail. So in early 2024, we decided that we should find an effective way of sharing our insights back with our customers. You've seen already from Erdal that we have this consolidated view of each client in our underwriting cockpit called Ignite. And what we wanted to do was essentially face this and turn it out to customers and patch up so they could view all of our insights about them. For many large corporates, the majority of their insurance spend and exposure is concentrated across 4 core products, which I've already mentioned, casualty, D&O, property and cyber. And this is where we've invested heavily in both underwriting and claims, but also in our data analytics capabilities. So what the insight pack does is it shares all of our insights about the customer and plays it back to them. So for a few examples. For property, we share their natural catastrophe exposure, highlighting which assets are most exposed and why. We take all the great work that Lou and his team does, and we basically show how we view their natural catastrophe exposure in terms of how it's evolving and actually overlaying our own delivery of risk on that and give it back to them. In casualty, we benchmark their claims experience against their peers. We are capturing all the claims data so we can really understand what's driving the claims. And it's fascinating when we hear from our clients how they're then using that in their day-to-day business. In D&O, directors and officers, many public companies there's obvious exposure to security class actions, and that is often driven by certain industry sector trends. So what we try to do is put out what are those trends. And again, by speaking to defense council law firms, we can apply it back to our clients in a way that is really tangible. And finally, in cyber, we combine with our own data and expertise with external partners to assess how often some companies are being attacked relative to their peers. The response from customers has been extremely positive. However, at last year's Horizon event, we heard that actually what those customers really, really like is to make the Insight pack digital for 2 main reasons. One, they wanted to be able to interact with it and actually dig deep into the data and understand what the trends were in an interactive way. But also they wanted to share it more broadly within their companies and extract some of our graphs and exhibits so they can use it in PowerPoint presentations like the ones you've seen today. So we've taken that feedback on board, and I'm really excited about what's coming in H2 for 2026 because we are going to launch our digital insight portal for our customers. We're planning to host 40 to 50 of them in our offices in November when this will hopefully go live. One of the other major benefits of Horizon is our internship program, where risk managers spend a week in our offices with our teams and some of their peers in the market. As I've already mentioned, the risk managers we host are typically the buyers of the insurance for their companies. They often decide which insurers to trade with and how much to spend with those insurers. There are over 20 sessions per week, including the opportunity to sit down with our underwriting teams and review their core insurance purchase in our underwriting dashboard. We are super transparent with our view on how we price our exposure, and it creates a valuable dialogue and sometimes a heat debate. It's a really fun week and having actual customers in our offices. Our teams really, really enjoy it. There's a real energy and buzz when customers are in our offices, as you can imagine. And it reminds all of us that we only really exist because of our customers. Without them, we don't have a business. We have no premium. We have no need to continue. We've had excellent feedback from our customers on inform. But rather than hearing back from me, we've compiled a short video where you can hear from our customers directly on their experience of that week. [Presentation]

Last but not least, culture. And luckily, I've got a bit of the easier job today because I think you've seen our culture in action so far. But I'll take you through a bit more of some of the thinking behind it and the ways that we try to bring it to life. So our culture was intentionally designed to differentiate Inigo. You heard Richard and Stuart talk about how this was something they thought about right at the beginning of creating Inigo. The goal was to create something that could attract and retain incredible talent and also act as an operating system for collaboration, effective decision-making and ultimately, we believe, superior risk selection. The result is that our culture is distinctive. It's embedded in the day-to-day, and it's going to be difficult for others to replicate. I'm confident, again, you've seen it, but let's get into a little bit more. So the formula, what we set out to do, number one, was to hire incredible talent across underwriting, data and analytics and enabling functions. You're going to have the chance to talk to a few of them today. I encourage you to do it. Ludo has gotten all the shout out so far, but there are also some great underwriters with us and some analytics individuals, too. We brought them together into a single office so that they can work together, collaborate, learn and the space is encouraging creativity in order to kind of bring people together. We work there face-to-face 3 days a week. We focused on Inigo's success over the success of individual lines of business, and we united people across 4 core values. These values are visible in how we operate day-to-day, in how people interact, how they make decisions and also how we serve our clients. So let's get into each of those in turn. So GetSmart. GetSmart is all about relentless curiosity. Curiosity leads to learning, learning leads to a sharper expertise as well as innovation. We've got 93% of our employees have attended or participated in some of the learning that we have on offer over the last 12 months. And while kind of pulling the stat together, I'm thinking I need to figure out who that 7% is. I'll deal with that when I get home. But I think it gives you a good feel for the commitment and the engagement and the learning that we want to do. I think also with Russell, he views this as a learning opportunity around boxing riskers. I hope everybody feels more informed as a result. We also encourage people to attend conferences. We support advanced degrees as well as qualifications like actuarial studies because we do believe the world needs far more actuaries. We do secondents across teams. We also do coaching and mentoring, all to support our people. And this ensures that our capability continues to grow, and this becomes a source of edge for us. So park the ego, that is the cultural mechanism that makes challenge safe. And that's where you get the best ideas to win, not just the loudest voice or the most senior voice in the room. And this is something that's not just about being nice in a regulated market like ours, it's around conduct, risk management and avoiding some of those blind spots. So thinking about some of the ways we bring those to life internally, our peer review process is a great example of that, where nearly every risk we receive is peer reviewed. And as part of that, there's challenge and feedback. And this makes feedback a real expectation in how we behave and we believe also supports better risk selection. To be honest, we actually ask for a lot of feedback about a lot of things. So it might be about values and culture. It might be about the learning that we share even in office design. I think we ask for feedback on what we call our offices or our meeting rooms in the new office space. But I think this is to illustrate that we want people to know that they have a voice in our organization. Next up is radical simplicity. It's how we avoid unnecessary bureaucracy. Fewer barriers is going to mean more time on the work and faster decisions. Richard mentioned at the beginning, having one office is radically simple. I think transparency is also radically simple. And you heard Craig talk about the transparency that we give to our clients. Internally, we also run things called Ask Me Anything, where employees can ask any question that's on their mind, and we aim to get them the answer. These are also good examples where transparency is important. And recent sessions were on things like compensation. We also ran one around the acquisition by Radian, really trying to encourage the conversations. And we think that this is an advantage because it protects that productivity and responsiveness as our headcount grows. So lastly, the share the passion. This is our collaboration engine. I think you've heard some of the words around collaboration frequently so far, but we collaborate both internally as well as externally, and greater collaboration across the teams as well as with clients and brokers and our other partners, we think that this leads to better solutions, stronger relationships and faster execution. So the great examples we heard so far externally would be from Erdal. We heard about Samsara. We heard about a partnership with Cambridge. Craig highlighted Inform and the Horizon program more generally. He also mentioned about a great internal example as well with our digital client packs. So our clients said they want digital client packs. So we brought together a team. They sit together. They physically move to sit together in the office to enable the teamwork, the feedback and that ability to deliver at pace. This shows how agile we can be, and we can bring people together quickly to create solutions. So I figured with you guys as the audience, I needed a chart of some sort, but this is my favorite chart, it helps to illustrate where we've come from. So I think our culture is one of the few advantages that strengthens with our scale. And our culture has remained strong through rapid growth. Our headcount has gone from these 3 guys sitting around the dining table in 2020 to over 250 employees today. We set out to be underwriting and data and analytics led and the majority of our employees are in those roles today. When we ran through this yesterday, Stuart gave me a suggestion because feedback, and I'm open to feedback, but I should also bring this to life with some more stats. So overnight, I asked my team to give me a few more numbers, and that includes the number of actuaries mentioned, how many we love. But we've got 28 actuaries today. We've got 2 more qualified actuaries joining. We've got 8 people seeking to be certified as actuaries. In addition to that, we've got 10 PhDs in our organization. So again, really kind of bringing together sort of that analytical mindset. We hire for both capability and cultural fit. So all candidates are assessed not only about their capability to do the job, but also against our values. We want smart people who are going to positively contribute to our culture. So as I mentioned before, feedback is one of our favorite things. We regularly seek it. And we ask people about their feedback of Inigo and their experience of Inigo, and our engagement remains strong even as we've grown incredibly quickly. So 94% of employees have indicated that they're proud to work for Inigo. 88% are willing to go over and above the day job. And I think this is further proven by our attrition in 2024 and 2025, only following involuntary attrition falling between 5% and 6%. This is a place that people want to stay. And I think all of this together gives us the confidence that we can continue to scale our culture without diluting performance. But if you don't believe me, then check out this external benchmark survey that we participated in. So as part of being in the Lloyd's market, we participate in the Lloyd's culture survey each year. And in the most recent survey, we were among the 18 -- the only 18% of firms to be qualified as excellent overall. And as you can see, we scored better than the market average in every single category. This is consistent with previous years where we were top quartile in both 2023 and 2024. Now I can't go into every single result. I mean I'll be around for coffee if you want to go through more details, but there are a few that I thought I should call out. So one is client focus. That was our highest scoring category. And you heard Craig talk about our approach to client engagement. You heard about it being core to our strategy. And 97% of our employees have responded positively about their experience of Inigo and our client focus. And these are questions around how Inigo put clients at the center of decision-making, how we encourage people to provide clients with the information to make the best decisions, how we provide -- or we take on board feedback from clients and how we deliver for our clients. And to be honest, when was the last time 97% of people agreed on anything. So I think it really shows the strength of that priority. Another one -- another couple that actually stand out as well our leadership and shared purpose. 94% of people responded positively on average to questions in both of these categories. So in leadership, this includes perceptions of our people on our leadership's focus on culture as well as whether or not our leaders are role models of that culture. In shared purpose, our people are positive that we have a purpose and values that are meaningful to them as well as there's alignment between the values and how we do business. I think this level of positive response is going to enable consistency and quality in the delivery of our business. So culture is embedded broadly across the organization and actively maintained as the company has grown. And this is because it's embraced and led by employees at every level of the organization. Much of this happens in the day-to-day in terms of how we interact with each other, with our clients, our brokers, our regulators, but also where people go over and above to connect and share experiences outside of the office. The impact of all of this though is strengthened trust, learning and collaboration. It's also importantly that said of ownership of Inigo success. And that commitment to build the brain against the objectives we've set ourselves. And this isn't just important tool the people you see up on this page. I also have a little video to share with all of you which give you a few more views from our employees. [Presentation]

So let me close then with a brief word about this magic combination and how it opens up a world of possibilities. It does give us the capital to grow. That is fundamental. So that is a great place to start. And I would emphasize that we could argue the size of markets and our relative market share. In the big scheme of life, we are this big and the markets that we operate are this big, whether that's insurance or reinsurance. They are worldwide markets. The opportunities ahead to lean in and find opportunity is huge. It's important that, again, you understand the joy of the Lloyd's model is the worldwide access that it gives us, not just the U.S. but beyond into markets in almost all countries. The other thing that I think is really apparent to me when I think about this combination is the point on here about a mindset to seize opportunities. It strikes me when I look at how companies develop over a 20-year period, the ones that succeed are the ones that really lean into an opportunity when they find it. I'd like to think that we can demonstrate to you in the first 5 years of our operation that we have seen opportunities and we have lent into it. And what I love about it is I think Radian, you can say exactly the same thing. When they saw us, they lent into it. They got ahead of the market, got in quick and we embraced the opportunity. So I think both organizations have this sense of, look, we see an opportunity, go grab it. Don't waste time talking about it, just go grab it. So this ability for both companies to see an opportunity and grab it and have the ability to do that is huge. And I think you've heard both sides of the house talk about the opportunities and the technology that we enjoy and the advantage that gives us. And I think lastly, this held together with a strong culture, which I know everybody talks about culture. I would say, I think if you talk to the team, if you ask them about it, it's not just us, you ask them about it, it's tangible. I mean it really is tangible. So quiz them, please. I've shouted out the team. Tanjit, I think I missed you when I shout out. Tanjit is our casual -- sorry, our international treaty reinsurance underwriters. So that could be treaty reinsurance in Australia, New Zealand, Europe, Japan. She is one of our brilliantly qualified actuaries. She also will never tell you that she speaks fluent Japanese, which, by the way, opens up over a glass of wine, numerous really, really funny stories. So do please make sure you do a B line for Tanjit. We are going to break for coffee now. You've done well. You stayed awake. There was one person like I'm not sure about, but everybody else looks like they're here. We're going to make it, I think, 10, 15 minutes, let's say for 15, if we need to get back sooner, we'll give you a shout. Please come back with some questions. Do ask them in the break, but you can come back and we'll do a little Q&A for a few minutes here. You can do it online if you want to and anybody watching can do that online or you can just raise your hand and we'll take questions. We look forward to seeing you again in a few minutes. Thank you very much. [Break]

So welcome back, everybody. We've got about 20 minutes allocated for this. We're quite happy to cut it short to 5 if you listen to questions. This is the bit of the presentation that I'm doing the most. So one of the benefits of surrounding yourself with incredibly good people is you can leave them to answer all the questions. We're going to see questions live in the room. If you're happy to raise your hand, we have a couple of microphones. If you could please do the inevitable thing and wait for the microphone so that anybody who's dialed in can hear the question as well as the answer, that will be grateful. I know, Bob, you're manning an iPad somewhere there with questions which you can submit online if that's preferred and certainly if anyone is watching. But look, let's kick it off. If there are questions, we are delighted to try and answer them.

Michael, you've achieved very impressive combined ratios over the years you've been in existence, somewhere, say, in the mid-80s. I'm wondering if you'd be willing to share a long-term goal for combined ratio. Obviously, it can be variable. And then more specifically, how do you view the current rate down cycle? What kind of impact that would have? And then secondly, as you grow...

Can I -- I'm terrible forgetting questions. Can you keep the microphone and we'll try the first couple.

Well, it's just a related question.

I don't want to let you down.

As you grow, do you think your combined ratio is more likely to go up as you take on maybe different kinds of businesses or go down? So just what I'm really looking for is a long-term combined ratio goal and the impact that the current down cycle is going to be.

Yes, I wish I could give that to you. I feel like I'd be a lot richer than I am if I could do that. But we will try. Stuart, do you want to pick that up? And Russ talk about what we're trying to do in the market?

So I guess I'd pick it up by saying, obviously, we're not allowed to give you any forward guidance. I will leave that all to Dan later. But certainly, in the cycle we've been through, we were -- we knew when we started up that we were going into a very strong cycle. And we had an aim of writing a combined ratio in the mid-80s. And for me, as the CFO, that meant I needed an expense ratio in the low 30s, which is what you saw, which is why I emphasize that, unless you have a loss ratio that can get you to that level. As the market softens, we know that it will inevitably increase the combined ratio. It's just a function of NAVs. One thing I think we would emphasize, and I think the one thing I would add to my little talk earlier is a sort of heartfelt thank you to Rick and the Radian Board and team for saying write for profitability, don't write for growth. And that's the big message, I think, that they've given us, and that absolutely fits in with our philosophy when I turn to Russell in a minute. So that will be our focus. We have a number of lines of business. Not all of them will go down at the same time, not all of them will go up at the same time in Russell's illustration of the D&O market versus the property market. We can look at the general liability market, which is probably increasing slightly at the minute. Our aim has got to be to try and write profitably, so less than 100% combined ratio. Plus, of course, you've got investment income. But just as a simple combined ratio, we have to have an aim of being under 100%.

Absolutely. So it's important to emphasize that every risk that we price, our aim is price adequacy. And for me, I think that's typically that we will be targeting a mid-80s net combined ratio. Not necessarily precisely. It depends slightly on the degree to which that risk correlates with everything else we do and the amount of volatility that's associated with that risk. So if that is the long-term goal, then there is definitely going to be variability by cycle. Today, we still see lots of adequacy in the business that we write. And I'd like to go back to that point about the absence of homogeneity in the pricing that we see, the disparity between a well-paid risk in one class and a less well-paid risk in that same class. our approach to understanding that risk better perhaps through our applications of data and analytics should allow us to differentiate effectively between the better and less good risks. And even in a tough market where the average rate adequacy is impaired, we should still be able to find the best risks that allow us to pursue that attractive net combined ratio over time. And it is difficult to give you a forward-looking statement as much as we would love to, and that's difficult to know because the market is so hard to predict. I mean I find it -- you want people to react to the opportunities in front of them. It's very hard to say with certainty what 12, 24 months will look like in this marketplace. But I think the point Stuart made is was such a defining moment in our conversation with Radian was this, look, it's about underwriting excellence. That's what's going to drive shareholder value. It's not about growth and volume for the sake of it. And the fact that when Steve and Meghan talk about it, it's the same grounded view that we have to get an adequate return to risk, hugely important for us. And I think one of the graphs showed -- tried to show this isn't going to be a linear top line story. I mean that's the only thing I can tell you. It's going to be a jagged story according to where the market opportunity sits and where the cycle sits.

And I may have misunderstood this a little bit, but it seems to me that your hookup with Radian could provide some more capital and growth opportunities if you remain independent. So I guess the other part of my question really was, as you do grow potentially take on new business or whatever, forgetting the time of the cycle we're in, will those businesses be done at roughly the same combined ratio? Or we should just assume that there would be a deterioration from the kind of businesses that you would be growing?

Jo, do you want to touch on that?

I don't think that you should make that presumption there. I think our outcomes will be dependent on business mix and the cycle. But there's no inherent reason why we should be less profitable if we're bigger than we're smaller. There will be ups and downs. The key thing for us will be really leaning into those areas where we find adequacy. And the joy of being relatively new and relatively small is that there is still this universe of risk for us to grow into. And so for example, as we enter new lines of business, we're not lowering the hurdle rates that we seek to achieve by entering those new lines. And for us, it's still a big universe out there. We can hold on for 1 minute just in case.

What I was going to say is I think the other part that Craig made the comments on in terms of being a very small part of your clients' business today and the opportunity where you see that rate adequacy to lean into it and find opportunities within that universe. So you're a small player in a big, big fund. So you don't necessarily have to stretch for new risk, new lines of business. You have to leverage your Horizon program, your focus on the customer, kind of find those opportunities to expand your wallet share with them. And I think that's where growth and profitability can be identified as you kind of right through the cycle.

I think the other thing as well is fixing on a particular combined number, for example. I mean it's just one number. It doesn't tell you the risk profile and your up and downside. I mean I think -- so I'd be happy to write to higher net combined ratios if the risk profile seeds that. I mean I think there are lots of things we can consider about what diversity it offers the portfolio, what is the level of risk and therefore, look at the return as what's an adequate return if you're operating in a narrow corridor. So I'm reluctant to give you a -- try and give you a single defined point.

Richard, do you want to just talk about cycle management, just kind of in general, the importance of that for the business you're in?

Yes. I mean, from my point of view, this question of trying to describe in those slides that it's not a linear top line story really speaks to -- I think the D&O was such a good example of that we rushed at that market when the opportunity was there because it was hard markets. We knew there was value in that marketplace. But we were more than happy to pull back when that rate decreased and the margin decreased. The success of our business will be a series of smart decisions, and there'll be times when that's rushed forward and be time when that rushes back and we talk about it a lot. I don't mind if we reduce the premium, I take a relax if that's the smart decision. So the important thing is that people don't fit under pressure to grow the top line regardless. It doesn't need to sit back and relax. It means go hunt harder. But if we don't find adequate returns, then that's fine. We can look with that. They will come back.

Rowland Mayor, RBC Capital Markets. I was wondering if you could discuss in the U.S. casualty portfolio, how you set and review reserves, particularly for the lines that have generated charges from the industry, so that be general liability, umbrella, excess and commercial auto?

Well, that's a perfect -- it's a good question, and it's a perfect one to hand straight to Craig. One is the man in charge of casualty and two is another qualified actuary. So Craig, you go.

And so the question is how do we review reserves to ensure that they're adequate. Obviously, a very topical question in terms of the U.S. casualty market. So what I'd say, first of all, is we have a quite finite line size in terms of what our net position is in U.S. casualty. So one of the most important things is if you do have more claims than expected, how do you make sure that your reinsurance kind of kicks in and protect your balance sheet. So fundamentally, we make sure we are -- we have sufficient reinsurance. We obviously look a lot at actual versus expected claims. So what's our claims frequency and severity of claims to make sure we're closely monitoring that. And we look by underwriting the adequacy of our reserves relative to the claims creations. What we try to do and [indiscernible] is behind you, so I can see she heads up our U.S. casualty team. We make sure that we are focused in some of the more shorter tail entry segments. Sometimes people think about U.S. casualty as one big block of exposure. And actually, by industry, that exposure can be quite different. A rail company has a very different exposure to a chemical company, rail company, if there's an incident, you know about it literally in minutes, whereas a chemical company, the exposure can go on for a lot longer. We try to skew the portfolio towards the slightly more shorter tail entry segment. And we are very focused on reserve adequacy in our U.S. casualty book of business. I don't know if there's anything from a reserve position that you want me to...

I think one of the benefits we have is we started writing in 2021. So we're actually not sitting on those reserves that look very horrible from what was it '16 through '19 or something. But it also -- a lot of our reserving will look at the industry benchmarks that have got that data in it. And you would hope that the market had slightly learned from those bad years by the time we came along. So -- and we're in a nice position that we have a relatively short history. So actually, that does make reserving slightly easier.

And we have a French actuary as well who heads up our reserving. He's just mean. It's the best thing you can do.

Yes. And I guess just as a follow-up, can you discuss your view of rate adequacy in the property markets and anything you learned at the 6/1, I guess, for 1/6 renewals?

It's a big renewal date for the regional, especially the Florida reinsurance purchases, and we definitely saw some risk-adjusted rate challenges there. But we also have seen some real improvements in the underlying risk of some legislative changes in recent years. So there was some rationale for some of those risk-adjusted or non-risk-adjusted rate returns coming down a bit. But we still found good business. It's an area where we're very selective about the entities that we support, and there are some fantastic companies, but we support only a small minority of the companies, for example, that are active in Florida, picking the best of the insurers that are active in that state. And ultimately, we still find lots of opportunity to deploy capacity at decent returns. I think Florida is always going to be one of the global peak capacity zones, and that does help to ensure that there's still some rational balance between price and risk. Were you thinking primarily of reinsurance or insurance as well? Craig, do you want to touch on the insurance?

Yes, happy to if you want to chat to Chris, he's here as well to head up that team. But again, fundamentally, as Russ described, we have seen rates come down fairly swiftly in that area. And as we manage the cycle, we're mindful of that. And so if we see rates come down more than we're expecting or below the level that they should be at, we fundamentally will shrink our premium base. Now I'm not saying that's what we've done there aggressively, but there are some risks that have fallen below the level of adequacy that we think gives a good ROE on our capital base. And when that happens, as much we want to partner with customers, we also need to partner with shareholders and give them a good return. So we make sure that they reach sufficient adequacy risk by risk. I think it's fair to say that in the U.S. property market, rates have come off fairly swiftly this year. But there's still a lot of business that we can write at sufficient margin. But when it does fall below the margin that we need, we will not write as much business.

And I think one of the advantages of that simple model of one office is very easy to stay on top of it to have the conversation to review risk to talk about it. It's very important for the -- particularly some of the younger underwriters to know that it's okay to step away, and that's the right thing to do. So I think we enjoy the fact that it's very easy for -- I say very easy, that makes not easy at all. But Chris, at the very least, you feel as though you can see all the decisions, everything that's going on and have a proper debate about it.

And I'd say on the Horizon program, we've obviously seen some of those customers been able to achieve significant rate reductions. And so the question there is, are you able to maneuver and still get good returns to those clients? What's happened in some of these examples is we've had to redeploy our capacity into higher layers or different parts of the program where we think there's still a good return. So we don't just continue with them regardless. But what we're able to do is actually redeploy our capital into different parts of the program where we think there's good ROE, and they have kind of looked after us in a way that they probably wouldn't have if we haven't delivered some of the benefits of the Horizon program. So again, it's still a fairly sort of transactional market, but what we're able to do is navigate that through those relationships.

Bose George from KBW. Can you talk about capital? Given your growth expectations over the next 12 to 24 months, is that fully supported by internally generated capital? Can you talk about capital benefits from the Radian being part of Radian as well?

Dan is going to cover capital later, so I won't steal his thunder. But certainly, I think if we look at the model that we built, the profitability that we've seen over the first 5 years and by Lloyd's underwriting account, we've been profitable from day 1, has generated the capital that you need to sustain the growth going forward. Obviously, when the market gets tougher and your profitability as we've just been talking about, gets less, your capital in our market will be slightly increased, but we do hold a good level of buffer capital. And then above that, with raising, I think there are some other opportunities to get capital used around the group in an efficient way, which Dan will talk about later.

Just one follow-up on capital. Were there any periods over the last, say, 5 years where your growth was constrained by a lack of capital?

So an odd answer to that is actually we originally raised $800 million from investors, not the $700 million that we said, and we never managed to use the last $100 million of it just because we had a lack of imagination. I was going say that we stuck to the matter of writing for profit. And that's we were always sitting with some additional capital there if we needed it.

All right. Directly behind you.

Harry Fong from ROTH Capital Partners. I believe you showed a chart that says that you expect roughly 40% of your losses to come from natural catastrophes. I'm wondering how you develop that number, number one. Number two, what is the high low range depending on where we are on the cycle from a pricing standpoint, peak versus trough?

I can take the first bit of that. So that 40% is the number that represents our mean expected losses based on our actual or plans, depending on which version of it you saw portfolio, which integrates the Inigo view of risk. So if, for example, we think that it's more likely that there are hurricanes in Florida, that is represented in that calculation. So it's a mean number. So the one number that you can be pretty sure that it won't end up being is that. But it sits within quite a broad range on a gross basis, but a rather narrower range of potential outcomes on a net basis because of the way that we hedge.

Can you provide those numbers?

I don't think we probably can actually, but much as I'd love to. We'll model -- we certainly look at them and we try and operate within tight constraints and manage those numbers very carefully. All right. There was a second part of your question, which I've now stupidly [indiscernible] top the cycle. [indiscernible] Why don't you grab that one?

I think it's a good question. And obviously, if you look at Lloyd's in particular, you can see the combined ratios. If you go back over time, you can obviously see the cycle and how the combined ratios go up and down. I suppose each part of the cycle has different features to it. So the first thing is we have obviously higher interest rates than last time there was a soft market. So one could expect that maybe combined ratio does creep up a bit higher than previously because this time, you've got interest rates at a high level and therefore, insurers can supplement their earnings with investment income. So that could actually be increased combined ratio more over time. The counter to that is that obviously, the most important part of the combined ratio is the claims and actually trying to forecast over the next 3 to 5 years, what events can happen in the tail that we're actually going to experience is a crystal ball type moment. And so really, if you look back over time, be it COVID or other events that are kind of in the tail, it's very difficult to forecast them. That said, I think investors and individuals in particular, don't enjoy losing money. And so if you look at the Lloyd's combined ratio, if it ever goes above 100%, it's unlikely to continue for a prolonged period because eventually, you are eroding shareholder value and you are obviously decreasing your asset base. And so if it continues to be at a high level for a long period, I think quite quickly, capital departs and we enter a new hard market. And if you look at carriers like us that are more mature than, say, go after 5 years, the carriers have done really well over a 40-, 50-, 60-year period are those that can be considered in a soft market, but very ambitious entrepreneurial in a hard market. And so for us, if there is a period where the market has softened, we will be considered, but then also looking around the corner to start to get excited again because actually what flows a soft market typically is a hard market. And a hard market is when actually you can create a compelling shareholder value over the medium to long term. And so I know that's a long-winded answer your question. I haven't given you exact ranges, but I think it's the mindset to how to look at the market cycle.

All right. Good answer. Thank you very much indeed. I think we sadly run out of time. We are around. So again, over lunch, if you want to ask any questions, you're very welcome. I would just say at a personal level, I really appreciate the engagement. It's really nice to have questions. I was worried there was going to be a tumble weed moment here where we're going to be certainly to stay on each other. So that is the end of the Q&A. And it is my pleasure to welcome the fantastic Dan Kobell as CFO of Radian.

Okay. Good morning. So as you've heard today, Radian has 2 leading insurance businesses, and everything we do ties back to a simple framework. We manage capital with discipline to generate earnings from our businesses and build value in how we deploy it, which leads to our North Star of delivering attractive returns over the long term across market cycles. This slide shows how our 2 insurance businesses contributed to this goal in the first quarter of this year. We typically report our balance sheet on a consolidated basis, this view shows summary balance sheet metrics for our 2 segments: Mortgage and Specialty. In the first quarter, our mortgage segment delivered a 15% return on its segment-level equity. While our specialty segment return on equity was 15.1%. We are pleased to have two high-quality insurance businesses, both serving attractive markets, access through world-class teams, both well capitalized and resilient, both aligned strategically and culturally and both positioned to deliver attractive returns. Looking at the capital strength of our two businesses in more detail. Radian Guaranty, our mortgage subsidiary, is subject to two capital frameworks and continues to be well capitalized under both of them. Under PMIERs, which you heard Megan and Steve described earlier, we maintained a $1.6 billion buffer as of the first quarter, 41% above the required level. Our statutory capital total was $5.7 billion, which has grown by $1 billion over the last 5 years and is among the highest in the industry. Our statutory risk-to-capital ratio of just over 10:1 is as low as it has been in 20 years. This strong capital position is foundational. It supports both the resiliency of the business, and our ability to generate and deploy capital at the group level. And Radian Guaranty has continued to be a powerful capital generator. Since 2021, it has produced over $4.3 billion of statutory net income. And given the strong capital levels that it continues to hold, most of these earnings have become available to our holding company, Radian Group. Of the $4.3 billion in earnings, $3.5 billion or 80% has become available to Radian Group through a combination of quarterly distributions and the $600 million intercompany note that we executed in 2025. The remaining 20% of earnings has remained within Radian Guaranty to further bolster capital levels in support of our growing mortgage insurance in force portfolio. This balance between distribution and retention of earnings allows us to both support growth and maintain resilience. And the test of any insurance business is how it performs under stress. Our mortgage insurance business is well positioned to navigate a severe macroeconomic downturn. This slide illustrates the expected performance of our mortgage business through a severe scenario that includes an increase in unemployment to approximately 10% and a 20% decline in home prices, both consistent with the environment that we saw during the great financial crisis. As shown, we would still expect to maintain positive earnings and grow book value throughout this scenario. In addition, we project that our PMIERs capital position would remain strong, well above the required level and Radian Guaranty would be positioned to continue paying dividends to our holding company. In this scenario, we would expect return on equity for our mortgage business to recover to prestress levels within 2 or 3 years. This resilience is critical. It allows us to lean in and continue deploying capital when opportunities are most attractive in the cycle. Okay. Now turning to Inigo. Our Specialty segment is well capitalized with $3.7 billion of assets, like Radian Guaranty, Inigo is held to multiple capital frameworks. Both the Solvency II and Lloyd's capital requirements are calibrated to an extreme loss event, and Inigo is well capitalized relative to both standards. As a Lloyd's syndicate, it benefits from the Lloyd's markets financial strength ratings and Lloyd's business using ratings of AA- for S&P and Fitch, and A+ for A.M. Best. The Lloyd's market offers a unique capital structure that provides both stability for customers and flexibility for carriers. Inigo's capital requirement at Lloyd's is divided into two equal sized tiers, each with their own degree of flexibility. Tier 1 capital was primarily funded through cash and investments. However, there are also Tier 1 capital facilities that are available to financially strong syndicates to use in meeting their capital requirements subject to Lloyd's approval. Tier 2 capital has a greater degree of flexibility and can include bank letter of credit facilities, which allow for an increased level of flexibility at an attractive cost. Today, Inigo uses a letter of credit facility for approximately 40% of our total Lloyd's capital requirement. With Radian's financial strength as a parent company, we have the opportunity to explore increasing the letter of credit facility towards the 50% limit as well as considering potential Tier 1 capital facilities, both subject to Lloyd's approval. The availability of these flexible capital structures combined with the financial strength that Radian already enjoys across the enterprise, offer attractive options to capitalize our specialty business at an attractive cost. We look forward to updating you on our progress as we position the specialty business for even greater capital strength and efficiency in the years ahead. A key differentiator for Radian is how we assess and manage risk at the enterprise level, and how we use nearly 50 years of data to inform our risk decisions. Our enterprise risk and capital management function works across the insurance businesses to set and manage risk tolerances, assess the performance of our business through a variety of scenarios and evaluate new opportunities in the context of our existing risk exposures. While day-to-day underwriting decisions continue to be made within each business, this enterprise function allows us to take a holistic view of how we deploy capital to drive returns and safeguard the business against evolving risks. Across both businesses, we maintain an extensive outwards reinsurance program to reduce our net exposures and manage our capital positions. In both mortgage and specialty, we use traditional reinsurance, including quota share and excess of loss programs to significantly reduce our net exposures, as you heard both Steve and Russell mentioned earlier. In addition, we access the capital markets for efficient risk transfer through structured transactions, including Radian's Eagle Re Mortgage Insurance like note program, and Inigo's Montoya Re cat bond program. We also maintained a disciplined and thorough counterparty management framework working with highly rated reinsurers and closely monitoring any concentrated exposure. In addition to expanding our addressable market, Inigo adds meaningful diversification to our earnings profile. As shown here, mortgage insurance loss ratio have shown almost no correlation to Lloyd's loss ratios over the past 15 years. Although we do prepare for a event that would impact both of our businesses simultaneously. This lack of correlation reduces the likelihood of this occurring and provides an additional layer of risk management. In addition, the low correlation of the two underwriting cycles enhances our ability to manage capital across both businesses and lean into market opportunities. Another important pillar of strength for Radian is our investment portfolio. Following the Inigo acquisition, Radian's enterprise investment portfolio stands at $7.1 billion, and is comprised of well-diversified high-quality securities with an average rating of A+. The strength of our investment portfolio and our strong liquidity profile allow us to pursue opportunities to generate incremental value, including by optimizing our strategic asset allocation and total duration profile. In the first quarter, we generated $70 million of net investment income from our portfolio or an annualized run rate of approximately $280 million in earnings. Okay. As we have discussed before, we have a number of options at Radian for deploying the capital we generate. On this slide, we show the 5 primary options that we have evaluated over the past several years. Our highest priority is supporting the organic growth of our 2 insurance businesses and pursuing attractive risk-adjusted returns in both the mortgage and specialty business. In addition, in the ordinary course, we continue to evaluate options for accretive M&A, including potential transactions that offer access to new markets, provide earnings growth and further increase the diversification of our company. Our return threshold for M&A is high given the strength of our existing businesses and our overall return targets. In addition to growth, we are also mindful of our overall financial leverage profile and consider debt reduction as a potential use of excess capital as appropriate. After considering these uses, we have been disciplined about returning excess capital to our stockholders. We've done this in two methods in a programmatic way through our attractive ongoing quarterly dividend and opportunistically through share repurchase, which we believe is an effective and efficient way to return excess capital to stockholders. As shown on this slide, we have executed on all of these areas since 2021. Our mortgage insurance in-force portfolio has grown by $36 billion as we continue to write significant levels of high-quality new insurance business priced with insight and discipline, as Steve noted earlier. We executed the $1.7 billion acquisition of Inigo earlier this year, a transaction that transformed our company and has already provided significant financial benefits as reflected in our first quarter results. We reduced our long-term debt by $350 million, reducing the interest expense that we pay and improving the financial strength of the company. We also returned $710 million in capital to our stockholders through quarterly dividends, paying the highest yielding dividend among our mortgage insurance peers. And we purchased $1.6 billion of our shares reducing our share count and driving $700 million of accretion in book value. And executing on these priorities, we have used our capital to make Radian a stronger and more diversified company, one with double the revenue, higher earnings, lower debt and a much larger addressable market. During this time, our financial strength has been recognized by our rating agencies, S&P, Moody's and Fitch, each of which has upgraded Radian Group to an investment-grade financial strength rating. Taken together, these actions have made Radian a more diversified company with stronger earnings power and a broader opportunity ahead. The timing of how we deploy our capital may not be linear. At Radian, we evaluate the macroeconomic environment around us and are disciplined in the level of liquidity that we maintain. The embedded earnings in our mortgage insurance for portfolio and the visibility that we have into the resulting capital flows from Radian Guaranty, provide us with a degree of predictability in our capital planning. And that allowed us to restart our share repurchase program in the first quarter of this year shortly after the Inigo transaction. This capital strength and flexibility enabled us to take advantage of an opportunity to return capital via share repurchase at an attractive value. And Radian has a strong history of returning capital to share repurchase. Since 2018, we have purchased 43% of our shares using a total of $2.3 billion. The 94 million shares that we purchased would have a book value as of the first quarter of $3.3 billion, demonstrating the significant value that has accrued to our shareholders from this activity. Over this time period, we purchased shares at a range and valuation levels from a discount to book value up to a 40% premium above book value. In every case, the purchases have been accretive, and we continue to believe that our shares trade meaningfully below their intrinsic value. These repurchases have helped drive significant growth in key metrics, including earnings and book value per share. And the expected financial accretion from the Inigo acquisition further enhances the potential return from share repurchase into the future. At Radian, we have built a model designed to generate capital consistently, manage it with discipline and build value over time. With two complementary uncorrelated businesses and a flexible capital framework, we are well positioned to deliver attractive returns over the long term and across market cycles. And now I'll turn it over to Rick for some closing comments.

All right. So I'm going to do something that's going to make some people in this room very nervous. Where is Emily at. So going to go a little off scrip, all right? So I want to just kind of step back and reflect upon what you've heard today a little bit. And then I'm going to go back to the podium and kind of stick my landing, okay? What a difference 4 months makes? Think about it. 4 months, we took these two individuals, Megan and Steve, I remember we tapped them on the shoulder and said, we want you to lead our mortgage insurance business. Work as a team work as a group, what they've done over the last 4 months, take our MI team completely reimagine the business into the future, create excitement about an opportunity to build that business going forward and bring us today. So we're -- it's a great business. But the future that they're creating, I couldn't be more excited, more proud of. So thank you. Four months ago -- almost 4 months ago, after spending a year this past year together, we brought this into go team on board to Radian Group. You can kind of see the energy from that group, except for Richard. All right. But you can see that energy that brings. It brings an entrepreneurial spirit. It brings a growth mindset. It brings a global market, all right, to our business expands our opportunities. 4 months, that's the transformation that Radian has gone through. And along that side, we asked Dan and Rob, where Rob is? Rob is hiding somewhere, there he is, to lead our financial functions. And so change, yes. Forward leaning, yes. Opportunity, yes. So I couldn't be more proud of Megan and Steve, could be more proud to have the Inigo team part of Radian, and Dan and Rob have done a great job. But the teams come together. And that energy, I hope you feel through today, kind of the teams coming together towards a forward view, and that's what gets me excited. When I kind of look and sit there and listen to this whole story that I hear day after day after day. And maybe sometimes I play into that story, I get excited. So I hope that you all got to feel for how this company has really kind of transformed from what it was even 6 months ago to today in terms of opportunity, in terms of leadership, in terms of team. Obviously, Mike and I, are going through our transition, which I couldn't be happier about, and we're excited for Mike to kind of take that leadership role into the future. This is an exciting time. So I just wanted to kind of reflect what a difference 4 months can make. Now for those who I've made uncomfortable, I will move back over here and go through. So we've covered a lot today, and I stand between you and lunch, all right? And I hope you get to enjoy lunch, but I'm going to close on this. Today, you've heard how Radian has evolved into a global multiline specialty insurer, built on a strong foundation, strategically advantaged by a set of core enterprise competencies executing on clear strategy as we have said throughout the day through two complementary businesses. I think it's important to mention that we've also -- we also complement each other through our distinct business models, one more established and scaled the other earlier in its development and more entrepreneurial. Together, the combination brings out the best of each. This is already having an impact as our teams work together and learn from each other, we acquired a great company Inigo with excellent talent, but the combination of these two businesses is what is truly special and why I'm so excited about the future of Radian Group. And importantly, you've heard directly from many members of the exceptional team responsible for executing our plans. All positions us with the strategic capability to manage capital to generate earnings and build value, and you heard Dan talk about that. I guess I have to flip slides too, right? That was that slide I was just talking about. Now we'll go to this one. What we believe is equally important is where we are today. We have delivered strong operating performance. We have built a more resilient and diversified earnings profile for the future. We have meaningfully expanded our opportunities start with the acquisition of Inigo. And as you've heard we believe that our valuation represents a compelling investment entry point. Our strategy is clear. Our businesses are strong. Our team is unmatched in my opinion. We are confident in our direction, we are confident in our team, and we believe we are well positioned to deliver long-term value for stockholders. Thank you again for being with us today, and we look forward to continuing the conversation. Lunch is in the pre-function area, which is at the other end of the hall and then join us again back here at 12:45 for the fireside chat between Mike and I. Thank you very much. [Break]

Yes. Thank you for coming back, everybody. That was lunch.

It was good. Did you get all your questions answered for those of you who had questions, hopefully. All right. Well, so Mike and I are going to do a little back and forth, so you can learn a little bit more about Mike. And I feel like I know a lot, but I'm going to try to learn a little bit more right now. Yes, you're in trouble.

So look, as many of you have heard today, we've known each other for a while. We were both a lot younger when we first met. But I think it's an exciting time for you to join. And I just -- I'm kind of curious as to why are you excited about this opportunity? What's -- you've been here all of four days. And I felt like after four days, I knew everything, Mike. I don't know about you. How're you doing?

No, it's been incredible, and I'm super appreciative the opportunity to overlap with you, Rick, and to be able to learn from you. And it's actually like a great way to get to know everybody and ensure that we have a smooth transition. And so that's been wonderful. I mean, I think I'll probably like reiterate a couple of things that we saw during the presentation that I'm really excited about that struck me I think it starts with a really strong foundation. I mean we've got this -- you saw the stats of mortgage insurance business that just grows year-over-year-over-year steady growth in book value, great consistency. But historically, we've had more capital than we had places to put it. And with the acquisition of Inigo and having access to this large specialty insurance market, all of a sudden, it's a whole new world. And Dan showed the slide that showed the way we think about capital allocation. And historically, again, it was mortgage insurance. And if we had excess, maybe we buy back stock, maybe we pay a dividend, maybe we pay down debt. Now we have mortgage insurance. We have specialty insurance. We can still buy back stock. We can still pay dividends. You still pay down debt. And by the way, we could also hang on to some of that capital and let the spring coil a little bit and see if there's another platform that we want to add to it. So when you put all that together, it's just a -- we've talked about the transformation of Radian it really does feel like a transformational time. And I think the company has ever been better positioned.

One thing just to add to your comment that you're going to learn is that transparency. We have to capital flow from Radian Guaranty to Radian Group that creates kind of this flywheel approach of just kind of managing capital, and how we invest it. And so I think many of our investors have kind of seen that over the years, but it's really a powerful thing and the combination of that with Inigo and other opportunities, I think, just creates a great platform going forward. So Mike, look, I've followed your career. You've gone -- you don't like to be characterized as a mortgage guy because your -- by background, you've worked with some of the largest financial institutions.

It was by accident, didn't happen at all.

Mike and I have talked about that over the years because before I came to Radian, I would have been that mortgage guy. But from a -- from your career, you worked at some of the largest, most sophisticated institutions you've been part of transforming businesses. I know you're highly interested in technology, and how that plays into it. Kind of how do you think about the opportunity from a Radian perspective? And what do you bring with -- from those experiences to Radian? How do you think about translating that background into what you want to bring to Radian?

Yes, a few thought. I mean, for those of you that aren't familiar with my background, I spent most of my career at JPMorgan Chase, and it was a wonderful journey. I described it as like the pre-crisis, we were a good global bank and kind of the crisis, kind of showed, and/or was the catapult us becoming the biggest and best bank in the industry. I started out, I described as a happy retail banker and most of our -- across all of our consumer businesses other than mortgage. Mortgage was the place where talented people went, and then I never saw them again. And I got the call at some point to lead servicing there and then ultimately lead the business. Went to Wells Fargo, where I led the consumer lending businesses, which included home lending, auto, credit card, personal lending, student lending business that we ended up selling. And then to Mr. Cooper, where it's -- for those who aren't familiar with it, and certainly, the non-U.S. crowd probably isn't, but we were the largest mortgage servicer in the industry, servicing about $1.5 trillion in mortgages, and ended up selling the company to Rocket last year. But across all of those businesses, it has been about risk-based capital allocation. So it's the -- Mr. Cooper buying servicing, it was, should we do it through our correspondent channel, should we do it co-issue market, should we acquire in the open market, or should we do it directly from customers? And each of those had different return profiles, and we flexed in and out of them as the environment changes, certainly at a bank lending for your balance sheet, it's very much the better times being out of different markets. So it's not mortgage insurance, it's not specialty insurance, but if it's not siblings of those businesses, is at the very least first cousins that have the same concept. The one other thing I'll say is, and it's been interesting even talking to so many people in the insurance industry here who have said, "Oh, wow, the banking industry seems like they're more advanced in using data and technology to enhance the business." And I kind of feel like I've been a dissatisfied banker for much of my career, saying, "Can't we do even more with data and technology to make the business better." And I think that will be an opportunity for Radian as far as the I can see, the technology is developing so rapidly, and how do we have the ability to deploy data, deploy technology, but do it in practical ways, they're going to create real value for our shareholders.

Yes. As you heard, and I know, Richard, what do you refer Blood Brothers or something like that. One of the things that struck me when we first met the Inigo team, which was just over a year ago, Dan, right, May 7 of last year, I think, is the common language that spoke between the companies around data and analytics and the in the way kind of pricing to use a P&C term rate adequacy to use the MI term, EV, just kind of thinking about optimizing risk-adjusted returns. When I think about your background from a banking point of view, as you and I have talked about it, that capital allocation framework that you've used there. It does apply to this business and the way we use it and the deep analytics that come along with it is, I think, one of the great complementary aspects of these two businesses. So I think you're going to have some fun with that.

Yes. Well, I'll put the question back to you. You've led the company for nearly 10 years. Like, what are the accomplishments you're most proud of? What have you seen from Radian over that period?

Look, as you kind of go through this process in life and you think about kind of retiring at this point in my career. There's a lot that I reflect upon. There's a lot that I think about that there's things you think you might have done differently. There's things you think that you're very proud of. So we'll focus on the things I'm proud of. But I think, look, every part of the journey is just really interesting. But the things that I kind of reflect back over the past 10 years. I think about the team. And that may sound just kind of course, you think about the team. But I think about the team that we have in place today, the team, the quality, the people, their character, the values that we live by. And then we brought this really great team from Inigo alongside a team that had similar values at Radian, and we put these two teams together. So I think what I kind of hang up the cleats or whatever to put the paddle down or something like that.

I think you leave the shoes in the middle of the mat court.

Yes, okay. There you go. All right, all right. Take the helmet off, whatever it is. I'm going to look back and probably -- you reflect on things, I'm going to reflect upon the people that I encountered through this process and the team that I think is in place today. I have to say the ability to watch our MI business, and where they're headed. As I mentioned earlier, what Megan and Steve have done in the last 4 months, 3.5 months to really reimagine that business with the team truly excited about it, and I'm proud of them. And then bringing this Inigo team across the finish line and bringing them into the Radian family, I think, is -- you kind of go across it. But I would also -- the last thing I would say, and again, I'm probably forgetting five other things, but I'll tell you about them as we go. The other thing I would just -- I'm very proud of is who the company is. We're -- we talk about values and Richard and Andrea talked about the values within Inigo. And that day when we met in Philadelphia with the Inigo team, we felt a chemistry around culture around values around how we want to be recognized and operator as a company. But I think we're a highly responsible company. I think we value who we are as a company and our position in our marketplaces, our position in our communities, our position responsibility we have to investors and our employees alike. So I'm proud of the company we are. So as I kind of reflect back, that's something.

No, that's awesome. And [ Viber ] to push you on, you have a lot of people who back the company through different cycles, a global pandemic moments could have predicted. And this -- maybe it's like selfish for me, so I can speed up my learning and finding things. But what did you learn through that that you just couldn't have known day 1 and...

Yes. Actually, you bring up the pandemic, everybody remember that thing called COVID. Remember, we all went home, and we worked from home. I remember -- I think Eric is in the room here, Eric and I flew to Florida that night after we made -- as a team, we made the decision and send everybody home to work, right? And you wonder if technology is going to work, you wonder when you're going to see each other next. We barely knew what Zoom was at the time, right? But it's a great example because the day after and that we could tell a whole bunch of stories about COVID. But I think the one thing that I learned at that point, I was reminded of is the resiliency of the team and their ability to overcome pretty much anything. And we know that was a great challenge, but the next 1.5 years is also very challenging. But I would say, since day 1, when I joined Radian, really not knowing anybody at all. I think what I've learned, and what you're going to learn is that -- and we've seen the same thing with the Inigo team. This is a team that's committed to really figuring out how to work together as a team, highly resilient when things don't go the right way, kind of figuring out how to solve problems and kind of playing through the ups and downs of a business. And so I think we can learn all about capital models. We can learn all about risk parameters, and we can learn about a whole bunch of things about the business. But if you don't have the team in place to manage through that and demonstrate resiliency through good days and bad, companies aren't going to succeed. And I've seen our team go through enormous challenges through cycles, through business challenges through self-inflicted wounds from time to time, right? You ever experience one of those and they found their way through it. They worked their way through it. So I think you're going to learn that the team that you're going to take responsibility for leading is a team that just wants to do things the right way, wants to figure out how to solve problems and is highly resilient and innovative and thoughtful in terms of their approach.

Yes. That's awesome.

Yes. So for you, so for you, there is understanding you made a little stock purchase.

Yes.

And I'm curious about your perspective of that. I think probably it's all been -- [indiscernible] were all in the public domain, right? So...

That's for, we're good.

Yes. Yes, we're good. So I'd be curious about your perspective on that.

Yes. It was very important to me to be an owner of the company from day 1. I'm excited to do it. And the valuation made it easy and exciting. It's -- you saw in the presentations, you've got two businesses that are earning mid-teen ROEs through the cycle. And if I have the ability to invest money and know I was going to get 15% a year return, I would do that all day long because I know within 5 years, I'm going to have more than double my money. And...

You did the math. You're good at math.

Thank you. Yes, that's the -- it seemed like an important qualification for the job here. But it's -- but like on top of that, there was also the slide that Dan showed that showed our multiple I think it showed 1x. We're actually, I think, trading a little bit below 1x right now versus the broader insurance industry benchmark, which I think was 1.9x. So in addition to the ability to earn good returns through the cycle, there's also an opportunity to re-rate to what we think is a more appropriate recognition of the value we create. So it's a little bit of a reiteration of the excitement I have about the platform that we have, and it was fairly easy to be -- if I'm being honest, I set a certain amount of money as...

Beth would say we should always be honest.

Well, that's good. I try to always be honest. But I'd say a certain amount of money aside and I kind of -- I ended up with a little bit more shares than I thought I was going to. So that was nice.

Yes, yes, that worked out well. All right. So you've been here all of 4 days. And you talked about this a little bit earlier, but I just -- I think it's probably good to kind of go back to it. What's been your impression so far. What it will be [indiscernible].

Yes. Well, you talked about it. My answer is actually kind of the same, which is the team. And I've had an opportunity day 1 and 2, I was in Wayne. I was -- came in yesterday and been here today, and as Richard introduced, a lot of the Inigo teams here. So I got to meet a lot of people that I hadn't met before other than to see like names on org chart boxes and things like that. And you have to be -- I'm impressed, and I hope you are impressed. And if you're not, then you just need to get to know people better. because you've got a team on the mortgage insurance side, that like I don't know if I met anyone who's been here less than a decade, yes, there is like -- there is a deep knowledge and understanding of this business. And when you start to double click into it and get deeper the things that Steve and Megan were showing like there is an analytics capability that is really, really good. I've been in some outstanding organizations in terms of the data and analytics. And it is something real that explains the better credit performance that you're seeing in the book. With the Inigo team, it's like I admit Russell and Stewart and Richard and they were amazing, and I love their story of like 3 guys who retired learn that retirement didn't totally agree with them and said...

They failed that, they failed that.

Yes, they terribly failed their retirement and said, what if we can create a company that would be like the dream company that we would have worked at our whole career. And it sounds great. So with dinner last night, I was really trying to probe for whether that's real or not. And it is. And part of that is the culture, and part of that is the people. And this mindset, the curiosity, the commitment to analytics, the commitment to having a low ego, where you're focused on getting it right versus being right getting the right answer versus like being the person who has like political cloud and an organization is real on both sides of the business. And it's what gives me confidence, and I hope we'll give all of you confidence that we are going to make good decisions and the way we allocate your capital.

So I want to kind of back up a little bit because you and I have talked over a period of time here, even before this process of you joining Radian, we've known each other, as I said for a while. We're give me in the elevator pitch of why you came here. What just -- like I know you've been excited because you and I have talked about it.

Yes. I said it upfront as well, which is it is great people, great culture and a great platform...

But you didn't know any of that until you got here other than...

I said it looked good from the outside. I'm upgrading it's great, but it was -- I've known you a long time. It gave me a little bit of an idea of -- I'm not surprised in terms of what I'm seeing in terms of the culture of the organization. So yes, I did get increasingly excited as I spend time with you as I spend time with the Board as I spend time with the team. And yes, I couldn't be more excited. I think we have time for one more question, and I'm going to ask you, so I don't have to answer it. But seriously, you've made the comment to me and our team a number of times that a few months from now, you're going to transition to being our biggest cheerleader. And we want our cheer leaders to be happy. So what is -- what does success look like to you 5 years from now with the foundation you built? What do you want your legacy to be? How do we help carry that [indiscernible]?

Well, I appreciate that. I think when you kind of look forward, you kind of take the platform you have today, Mike. And I've said this a number of times, I couldn't be more excited to pass the baton to you because I think you're the right person at the right time, and I'm excited about that. So that -- I start excited. I hope I finish excited.

Me too.

You will do a great job. When I look at it and I say, -- and Richard and many of us have spent time talking about this. I think the opportunity is that this is a very different business 5 years from now. I think it's much more of a global business. I think it's got an opportunity to leverage that great foundation of an MI business today that we've talked about. I spent a great deal of time. But I think it's going to leverage expanded opportunities and grow on a global scale across the broader insurance market, allocating capital very effectively to drive those risk-adjusted returns. So I think when we look at it, it will be a track record where not only myself, my grandchildren. I appreciate what you did. But the second thing is that investors appreciate that this is an opportunity for a story of compounding value, right, that consider -- through the cycle, there's going to be volatility. And I think the volatility creates opportunities. So as you go forward and we look out 3, 5, 10, 20 years from now, right? I think Radian will be a much different business. I think it will be defined on a global scale. I think the team will be -- continue to be unmatched on a different scale. And I think it will it will leverage the opportunity that it has today to go forward. So personally, as I sit here today, I couldn't be more excited about, and I said it earlier in the closing comments about where the MI business stands and the opportunity for it to go forward in a really kind of innovative and transformative way. The addition of Indigo and the way we manage capital and the team and culture. But I think that's -- those are all the building blocks that kind of catapult this business forward, so 5, 10, 20 years ago, it is a global force different than it is today, and I think that opportunity is ahead of it.

So I will wrap then by saying, our job as a team is to make you proud and to make all of our shareholders proud we're going to get after it. We hope you're as excited about the future of Radian as we are. And we really appreciate you all being here and look forward to interacting with you as we wrap. So thank you.

Thank you very much.