Radian Group Reports Profit In Q1; To Buy Clayton Holdings - Quick Facts

(RTTNews) - Radian Group Inc. (RDN) reported first-quarter net income of $202.8 million, or $0.94 per share, which included combined gains from the change in fair value of derivatives and other financial instruments of $50.8 million and net gains on investments of $64.5 million. This compares to a net loss for the quarter ended March 31, 2013, of $187.5 million, or $1.30 per share, which included combined losses from the change in fair value of derivatives and other financial instruments of $173.3 million and net losses on investments of $5.5 million.

On average, ten analysts polled by Thomson Reuters expected the company to report profit per share of $0.21 for the quarter. Analysts' estimates typically exclude special items. Net premiums earned - insurance increased to $205.66 million from $192.59 million. Analysts expected revenue of $220.62 million for the quarter. Total revenues were $346.26 million, compared to $42.38 million.

Radian Group also announced that it has entered into a purchase agreement to acquire Clayton Holdings, a provider of outsourced solutions to the mortgage industry. Radian Group will pay aggregate cash consideration of $305 million, which includes repayment of Clayton's outstanding debt, to purchase all of the outstanding equity interests in Clayton, subject to customary purchase price adjustments.