

(In thousands, except per share information)	2015 Quarters
	First		Second		Third			Fourth			Year
Net premiums earned—insurance	$	224,595	$	237,437	$	227,433		$	226,443		$	915,908
Services revenue (1)	30,630		43,503		42,189			37,493			153,815
Net investment income	17,328		19,285		22,091			22,833			81,537
Net gains (losses) on investments and other financial instruments (2)	16,779		28,448		3,868			(13,402		)	35,693
Provision for losses	45,028		32,560		64,192			56,805			198,585
Policy acquisition	7,750		6,963		2,880			4,831			22,424
Direct cost of services	19,253		23,520		24,949			22,241			89,963
Other operating expenses	53,774		67,731		65,082			59,570			246,157
Loss on induced conversion and debt extinguishment	—		91,876		11			2,320			94,207
Amortization and impairment of intangible assets	3,023		3,281		3,273			3,409			12,986
Net income from continuing operations	91,727		45,193		70,091			74,528			281,539
Income from discontinued operations, net of tax (3)	530		4,855		—			—			5,385
Net income	92,257		50,048		70,091			74,528			286,924
Diluted net income per share (4)(5)	$	0.39	$	0.22	$	0.29		$	0.32		$	1.22
Weighted average shares outstanding-diluted (4)	243,048		246,650		250,795			247,981			246,332

	2014 Quarters
	First		Second		Third			Fourth			Year
Net premiums earned—insurance	$	198,762	$	203,646	$	217,827		$	224,293		$	844,528
Services revenue	—		—		42,243			34,450			76,693
Net investment income	15,318		16,663		17,143			16,531			65,655
Net gains (losses) on investments and other financial instruments (2)	42,968		25,332		(6,294		)	17,983			79,989
Provision for losses	49,626		64,648		48,942			82,867			246,083
Policy acquisition	7,017		6,746		4,240			6,443			24,446
Direct cost of services	—		—		23,896			19,709			43,605
Other operating expenses	54,507		60,751		51,225			85,800			252,283
Amortization and impairment of intangible assets	—		—		3,294			5,354			8,648
Net income (loss) from continuing operations (6)	145,980		103,537		132,031			878,026			1,259,574
Income (loss) from discontinued operations, net of tax (3)(7)	56,779		71,296		21,559			(449,691		)	(300,057		)
Net income	202,759		174,833		153,590			428,335			959,517
Diluted net income per share (4)(5)	$	0.94	$	0.78	$	0.67		$	1.78		$	4.16
Weighted average shares outstanding-diluted (4)	222,668		230,779		238,067			242,801			233,902

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(1)	Services revenue for the first quarter includes $101 thousand that had previously been included in other income.


(2)	The 2015 and 2014 amounts reflect primarily unrealized (losses) gains, respectively, on our trading securities.

(3)

Radian completed the sale of Radian Asset Assurance to Assured on April 1, 2015, pursuant to the Radian Asset Assurance Stock Purchase Agreement dated as of December 22, 2014. Until the April 1, 2015 sale date, the operating results of Radian Asset Assurance were classified as discontinued operations for all periods presented in our consolidated statements of operations. See Note 3 for additional information.


(4)	Diluted net income per share and average shares outstanding per the accounting standard regarding earnings per share.


(5)	Diluted net income per share is computed independently for each period presented. Consequently, the sum of the quarters may not equal the total net income per share for the year. For all calculations, the determination of whether potential common shares are dilutive or anti-dilutive is based on net income from continuing operations.


(6)	This amount reflects a reversal of substantially all of our tax valuation allowance in the fourth quarter of 2014.


(7)	Reflects a $468 million loss on reclassification of Radian Asset Assurance as assets held for sale in the fourth quarter of 2014.