Radian Group Makes Strategic Investment In Covered Insurance

Radian Group Inc. (NYSE:RDN) announced its strategic investment in a digital insurance agency, Covered Insurance Solutions, Inc. to digitally transform the entire mortgage process. The details of the investment were kept under wraps.

Covered Insurance Solutions is an independent digital insurance agency. Powered by technology, the insurance agency offers homebuyers with insurance options during the process of loan origination. It also enables homebuyers to purchase homeowners insurance at any time, including during the mortgage application process.

Radian has made this investment to boost its relationship with customers. The investment is focused on leveraging next-generation digital business models powered by data, analytics and technology. This strategic investment is intended to improve the digitalization of the industry.

Covered, winner of HousingWire Tech100 in the last two years, is a fintech startup and has partnered with top 10 lenders and top 10 servicers over the last three years to enhance product development. The recent partnership with Radian has enabled it to widen its presence in the mortgage ecosystem with comprehensive insurance offerings.

Following this partnership, Covered will offer significant value to customers and industry participants, and also support their development and growth.

Radian is a group of separately capitalized companies offering mortgage insurance, which protects lenders from default-related losses and enables homebuyers to purchase homes with down payments. Its mortgage insurance portfolio is expected to create a strong foundation for future earnings. The company remains focused on improving its mortgage insurance portfolio to drive long-term earnings growth.

Shares of this Zacks Rank #3 (Hold) insurer have gained 10.9% in a year’s time, against its industry's decline of 1.3%.

Stocks to Consider

Some better-ranked stocks in the same space include James River Group Holdings, Ltd. (NASDAQ:JRVR) , Kemper Corporation (NYSE:KMPR) and Cincinnati Financial Corporation (NASDAQ:CINF) each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks (Strong Buy) here.

James River Group, Kemper and Cincinnati Financial surpassed estimates in each of the last four quarters, with average positive surprise of 12.36%, 12.38% and 17.86% respectively.

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