Radian Group Inc., the second-largest U.S. mortgage insurer, said Chief Executive Officer S.A. Ibrahim will step down at the end of next year after steering the company through the financial crisis as weaker rivals collapsed.
The board has appointed a committee to seek a replacement and hired executive search firm Spencer Stuart, the Philadelphia-based insurer said Tuesday in a statement. Radian will consider both internal and external candidates.
Ibrahim, 64, recapitalized the insurer through a series of share offerings to recover from losses tied to the housing collapse. He also helped prepare the company for tighter capital rules, selling a bond guarantor last year for about $800 million. Mortgage insurers cover losses when homeowners default and foreclosure fails to recoup costs.
"With S.A. at the helm over the past 11 years, Radian has emerged from one of our country's deepest financial crises newly invigorated and focused, while achieving a leadership position in the private mortgage insurance industry," Chairman Herb Wender said in the statement. "His leadership skills will be difficult to replace."
Radian closed Tuesday at $11.75 in New York trading, compared with $58.59 at the end of 2005. Still, the stock surged from less than $1 a share in 2008. Mounting losses forced rivals including PMI Group Inc. and Triad Guaranty Inc. to stop selling coverage. Ibrahim's company was profitable in both 2014 and 2015 after posting annual losses from 2007 through 2013.
"My time here has been among the most rewarding of my career," Ibrahim said in the statement. "I believe the company is better positioned today to drive long-term value than ever before."
American International Group Inc.'s United Guaranty Corp. is the largest U.S. mortgage insurer. AIG is seeking to take that company public.
