8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of

The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported)

October 20, 2004

Radian Group Inc.

(Exact name of registrant as specified in its charter)

Delaware	1-11356	23-2691170
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

1601 Market Street, Philadelphia, Pennsylvania	19103
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code

215-564-6600

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

On October 20, 2004, Radian Group Inc. issued a press release announcing its results for the quarter ended September 30, 2004. The press release is attached as Exhibit 99.1. This information is not “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor is it incorporated by reference in any filing under the Securities Act of 1933 unless we expressly incorporate it by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits.

(c) Exhibits

99.1 Radian Group Inc. Press Release dated October 20, 2004.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	RADIAN GROUP INC.
Date: October 20, 2004	By:	/s/ Howard S. Yaruss
		Howard S. Yaruss
		Executive Vice President, General Counsel and Secretary

EX-99.1

Exhibit 99.1

1601 Market Street	News Release
Philadelphia, Pennsylvania
19103-2337
800  523.1988
215  564.6600

Contact:

For investors	–	Mona Zeehandelaar – phone: 215 231.1674
		email: mona.zeehandelaar@radian.biz
For the media	–	Emily Riley – phone: 215 231.1328
		email: emily.riley@radian.biz

Radian Reports Record Third Quarter 2004 Net Income of $122 Million

PHILADELPHIA, Pa., October 20, 2004 — Radian Group Inc. (NYSE: RDN) today reported its results for the quarter ended September 30, 2004. The key financial highlights of the quarter and nine months ended September 30, 2004 are shown in the following tables:

Key Financial Highlights (dollars in millions, except per share data)

Third Quarter:

	Quarter Ended September 30, 2004	Quarter Ended September 30, 2003	Percent Change
Net income	$122.2	$114.0	7	%
Net income per share	$  1.31	$  1.20	9	%
Net premiums written	$282.5	$285.5	(1	%)
Premiums earned	$264.0	$261.0	1	%
Revenues*	$377.3	$349.0	8	%
Book value per share (as of 9/30)	$37.90	$33.35	14	%
Equity in net income of affiliates	$  45.9	$  21.3	116	%

Nine Months:

	Nine Months Ended September 30, 2004	Nine Months Ended September 30, 2003	Percent Change
Net income	$   362.7	$   330.4	10	%
Net income per share	$     3.84	$     3.50	10	%
Net premiums written	$   795.2	$   811.8	(2	%)
Net premiums written**	$   891.6	$   811.8	10	%
Premiums earned	$   766.7	$   742.2	3	%
Premiums earned**	$   791.6	$   742.2	7	%
Revenues*	$1,112.9	$1,009.3	10	%
Equity in net income of affiliates	$   130.6	$     70.0	87	%

* In conformity with the current period presentation, prior period revenues have been adjusted to include gain/loss on sales of investments. The adjusted presentation appears in the financial information that accompanies this release. Certain other prior-period amounts included in the accompanying financial information also have been reclassified to conform to the current period presentation.

** These amounts exclude the impact of one of the primary insurer’s recapture of business from Radian’s financial guaranty reinsurance business, which is described in Radian’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on February 11, 2004. A reconciliation and additional information about the impact of this recapture can be found in Schedules 1 and 2 to this release.

“We’re pleased to report a record quarter for Radian,” stated Radian’s Chairman and CEO Frank P. Filipps. “The contributions from each business segment together helped Radian achieve its highest quarterly net income of $122 million and revenues of more than $377 million.”

- 2 -

Radian will hold a conference call to discuss its third quarter results on Thursday, October 21, 2004, at 9:00 a.m. Eastern time. This call will be broadcast live over the Internet at www.ir.radiangroupinc.com/phoenix.zhtml?c=112301&p=irol-audioarchives, or at www.radiangroupinc.com, under “News.” A replay of the webcast will be available at this site approximately two hours after the live broadcast ends and a transcript of the call will be available at this site approximately 24 hours after the call ends, both for a period of one year. Statistical and financial information, which is expected to be referred to during the conference call, will be available on Radian’s website under “Investor Information – News and Events – Webcasts and Presentations” or will be accessible by clicking on www.ir.radiangroupinc.com/phoenix.zhtml?c=112301&p=irol-audioarchives.

Radian Group Inc. is a leading credit enhancement provider to the global financial and capital markets, headquartered in Philadelphia. Radian’s subsidiaries provide products and services through three business lines: financial guaranty, mortgage insurance and other financial services. Additional information may be found at www.radiangroupinc.com.

- 3 -

Financial Results and Supplemental Information Contents

Exhibit A:	Condensed Consolidated Statements of Income
Exhibit B:	Condensed Consolidated Balance Sheets
Exhibit C:	Segment Information Quarter Ended September 30, 2004
Exhibit D:	Segment Information Quarter Ended September 30, 2003
Exhibit E:	Segment Information Nine Months Ended September 30, 2004
Exhibit F:	Segment Information Nine Months Ended September 30, 2003
Exhibit G:	Financial Guaranty Insurance Supplemental Information – Quarter and Nine Months Ended and as of September 30, 2004
Exhibit H:	Financial Guaranty Insurance Supplemental Information – Quarter and Nine Months Ended and as of September 30, 2004
Exhibit I:	Mortgage Insurance Supplemental Information: New Insurance Written, Risk Written and Captives
Exhibit J:	Mortgage Insurance Supplemental Information: Insurance in Force and Risk in Force
Exhibit K:	Mortgage Insurance Supplemental Information: Risk in Force by LTV and Policy Year
Exhibit L:	Mortgage Insurance Supplemental Information: Claims and Defaults
Exhibit M:	Mortgage Insurance Supplemental Information: ALT A
Exhibit N:	Financial Services Supplemental Information
Exhibit O:	Supplemental Schedule 1: Reinsurance Clawback Impact on Radian Group
Exhibit P:	Supplemental Schedule 2: Reinsurance Clawback Impact on Financial Guaranty

- 4 -

Radian Group Inc. and Subsidiaries

Condensed Consolidated Statements of Income

Exhibit A

	Quarter Ended September 30					Nine Months Ended September 30
(Thousands of dollars, except per share data)	2004			2003		2004		2003
Revenues:
Net premiums written	$	282,530		$	285,517	$	795,227	$	811,773
Premiums earned	$	264,048		$	261,043	$	766,717	$	742,184
Net investment income		51,086			46,365		151,670		140,041
Equity in net income of affiliates		45,926			21,287		130,580		70,034
Gain/loss on sales of investments		8,993			1,778		40,956		8,627
Other income		7,200			18,489		22,996		48,449
Total revenues		377,253			348,962		1,112,919		1,009,335
Expenses:
Provision for losses		114,125			100,762		345,452		264,060
Policy acquisition costs		35,903			33,787		89,558		96,172
Other operating expenses		47,659			51,423		153,242		152,429
Interest expense		7,996			9,652		26,014		27,888
Total expenses		205,683			195,624		614,266		540,549
Change in fair value of derivative instruments		(2,083	)		6,072		2,576		(6,655	)
Pretax income		169,487			159,410		501,229		462,131
Provision for income taxes		47,316			45,432		138,545		131,707
Net income available to common stockholders	$	122,171		$	113,978	$	362,684	$	330,424
Net income per share	$	1.31		$	1.20	$	3.84	$	3.50
Weighted average shares outstanding (in thousands)		93,387			94,886		94,456		94,514

- 5 -

Radian Group Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

Exhibit B

(Thousands of dollars, except per share data)	September 30 2004		December 31 2003		September 30 2003
Assets:
Cash and investments	$	5,303,946	$	5,074,531	$	4,845,309
Investments in affiliates		347,404		328,478		300,465
Deferred policy acquisition costs		207,453		218,779		212,078
Prepaid federal income taxes		426,813		358,840		322,711
Other assets		414,404		465,139		472,831
Total assets	$	6,700,020	$	6,445,767	$	6,153,394
Liabilities and stockholders’ equity:
Unearned premiums	$	742,691	$	718,649	$	684,931
Reserve for losses and loss adjustment expenses		776,903		790,380		669,046
Long-term debt		717,579		717,404		717,347
Deferred federal income taxes		769,342		712,354		684,310
Other liabilities		209,901		281,136		274,879
Total liabilities		3,216,416		3,219,923		3,030,513
Common stock		96		96		95
Additional paid-in capital		1,096,793		1,199,056		1,186,481
Retained earnings		2,243,400		1,886,548		1,832,950
Accumulated other comprehensive income		143,315		140,144		103,355
Total common stockholders’ equity		3,483,604		3,225,844		3,122,881
Total liabilities and stockholders’ equity	$	6,700,020	$	6,445,767	$	6,153,394
Book value per share	$	37.90	$	34.31	$	33.35

- 6 -

Radian Group Inc. and Subsidiaries

Segment Information

Quarter Ended September 30, 2004

Exhibit C

(Thousands of dollars)	Mortgage Insurance			Financial Services			Financial Guaranty		Total
Revenues:
Net premiums written	$	209,085		$	—		$	73,445	$	282,530
Premiums earned	$	205,313		$	—		$	58,735	$	264,048
Net investment income		29,391			8			21,687		51,086
Equity in net income (loss) of affiliates		—			43,893			2,033		45,926
Gain/loss on sales of investments		6,359			64			2,570		8,993
Other income		5,381			1,438			381		7,200
Total revenues		246,444			45,403			85,406		377,253
Expenses:
Provision for losses		101,000			—			13,125		114,125
Policy acquisition costs		22,538			—			13,365		35,903
Other operating expenses		31,817			2,184			13,658		47,659
Interest expense		4,694			559			2,743		7,996
Total expenses		160,049			2,743			42,891		205,683
Change in fair value of derivative instruments		(7,035	)		(145	)		5,097		(2,083	)
Pretax income		79,360			42,515			47,612		169,487
Income tax provision		21,212			14,879			11,225		47,316
Net income	$	58,148		$	27,636		$	36,387	$	122,171
Assets	$	4,003,276		$	328,072		$	2,368,672	$	6,700,020
Deferred policy acquisition costs		72,076			—			135,377		207,453
Reserve for losses and loss adjustment expenses		533,060			—			243,843		776,903
Unearned premiums		129,873			—			612,818		742,691
Equity		1,958,326			284,300			1,240,978		3,483,604

- 7 -

Radian Group Inc. and Subsidiaries

Segment Information

Quarter Ended September 30, 2003

Exhibit D

(Thousands of dollars)	Mortgage Insurance			Financial Services			Financial Guaranty		Total
Revenues:
Net premiums written	$	195,360		$	—		$	90,157	$	285,517
Premiums earned	$	199,787		$	—		$	61,256	$	261,043
Net investment income		26,626			—			19,739		46,365
Equity in net income of affiliates		—			19,138			2,149		21,287
Gain/loss on sales of investments		506			(748	)		2,020		1,778
Other income		10,729			7,509			251		18,489
Total revenues		237,648			25,899			85,415		348,962
Expenses:
Provision for losses		82,074			—			18,688		100,762
Policy acquisition costs		18,374			—			15,413		33,787
Other operating expenses		33,846			7,942			9,635		51,423
Interest expense		5,403			873			3,376		9,652
Total expenses		139,697			8,815			47,112		195,624
Change in fair value of derivative instruments		(580	)		8			6,644		6,072
Pretax income		97,371			17,092			44,947		159,410
Income tax provision		26,256			6,848			12,328		45,432
Net income	$	71,115		$	10,244		$	32,619	$	113,978
Assets	$	3,692,010		$	286,546		$	2,174,838	$	6,153,394
Deferred policy acquisition costs		76,844			—			135,234		212,078
Reserve for losses and loss adjustment expenses		499,583			—			169,463		669,046
Unearned premiums		104,064			—			580,867		684,931
Equity		1,760,328			234,106			1,128,447		3,122,881

- 8 -

Radian Group Inc. and Subsidiaries

Segment Information

Nine Months Ended September 30, 2004

Exhibit E

(Thousands of dollars)	Mortgage Insurance			Financial Services			Financial Guaranty		Total
Revenues:
Net premiums written	$	651,213		$	—		$	144,014	$	795,227
Premiums earned	$	611,916		$	—		$	154,801	$	766,717
Net investment income		87,607			82			63,981		151,670
Equity in net income (loss) of affiliates		—			129,180			1,400		130,580
Gain/loss on sales of investments		34,582			2,663			3,711		40,956
Other income		16,601			5,160			1,235		22,996
Total revenues		750,706			137,085			225,128		1,112,919
Expenses:
Provision for losses		300,162			—			45,290		345,452
Policy acquisition costs		56,757			—			32,801		89,558
Other operating expenses		106,015			10,499			36,728		153,242
Interest expense		15,106			1,869			9,039		26,014
Total expenses		478,040			12,368			123,858		614,266
Change in fair value of derivative instruments		(3,821	)		(110	)		6,507		2,576
Pretax income		268,845			124,607			107,777		501,229
Income tax provision		73,510			43,611			21,424		138,545
Net income	$	195,335		$	80,996		$	86,353	$	362,684

- 9 -

Radian Group Inc. and Subsidiaries

Segment Information

Nine Months Ended September 30, 2003

Exhibit F

(Thousands of dollars)	Mortgage Insurance			Financial Services			Financial Guaranty			Total
Revenues:
Net premiums written	$	550,359		$	—		$	261,414		$	811,773
Premiums earned	$	557,537		$	—		$	184,647		$	742,184
Net investment income		81,208			36			58,797			140,041
Equity in net income of affiliates		—			62,427			7,607			70,034
Gain/loss on sales of investments		1,371			(1,666	)		8,922			8,627
Other income		25,145			20,294			3,010			48,449
Total revenues		665,261			81,091			262,983			1,009,335
Expenses:
Provision for losses		212,278			—			51,782			264,060
Policy acquisition costs		53,297			—			42,875			96,172
Other operating expenses		96,442			28,166			27,821			152,429
Interest expense		16,065			2,346			9,477			27,888
Total expenses		378,082			30,512			131,955			540,549
Change in fair value of derivative instruments		(606	)		35			(6,084	)		(6,655	)
Pretax income		286,573			50,614			124,944			462,131
Income tax provision		77,614			20,247			33,846			131,707
Net income	$	208,959		$	30,367		$	91,098		$	330,424

- 10 -

Radian Group Inc.

Financial Guaranty Insurance Supplemental Information

For the Quarter and Nine Months Ended and as of September 30, 2004

Exhibit G

(Thousands of dollars, except ratios)	Quarter Ended September 30				Nine Months Ended September 30
	2004		2003		2004		2003
Net Premiums Written:
Public finance direct	10,006		21,570		35,871		43,118
Public finance reinsurance	19,305		19,380		56,202		66,930
Structured direct	23,293		24,743		76,526		62,445
Structured reinsurance	6,407		10,749		23,813		38,481
Trade credit	14,434		13,715		48,019		50,440
	73,445		90,157		240,431		261,414
Impact of recapture (1)	—		—		(96,417	)	—
Net Premiums Written	73,445		90,157		144,014		261,414
Net Premiums Earned:
Public finance direct	7,327		4,799		19,516		13,074
Public finance reinsurance	9,725		13,802		30,810		37,655
Structured direct	19,961		17,119		57,542		55,593
Structured reinsurance	7,285		11,282		24,948		36,631
Trade credit	14,437		14,254		46,877		41,694
	58,735		61,256		179,693		184,647
Impact of recapture (1)	—		—		(24,892	)	—
Net Premiums Earned	58,735		61,256		154,801		184,647
Claims paid:
Trade credit	3,288		7,274		18,478		15,595
Financial guaranty	7,474		4,708		24,640		6,530
Conseco	8,225		—		23,307		—
Total	18,987		11,982		66,425		22,125
Impact of recapture (1)	—		—		11,488		—
Claims paid	18,987		11,982		77,913		22,125
Incurred losses:
Trade credit	6,907		9,440		23,541		23,538
Financial guaranty	6,218		9,248		21,749		28,244
Conseco	—		—		—		—
Total	13,125		18,688		45,290		51,782
Loss ratio—  GAAP Basis	22.3	%	30.5	%	29.3	%	28.0	%
Expense ratio—  GAAP Basis	46.0	%	40.9	%	44.9	%	38.3	%
	68.3	%	71.4	%	74.2	%	66.3	%
Refundings included in earned premium	1,895		1,400		4,167		6,305

(1) Amounts recorded related to the recapture of previously ceded business by one of the primary insurer customers of the financial guaranty insurance business in the first quarter of 2004.

- 11 -

Radian Group Inc.

Financial Guaranty Insurance Supplemental Information

For the Quarter and Nine Months Ended and as of September 30, 2004

Exhibit H

(Thousands of dollars, except ratios)	September 30 2004	December 31 2003	September 30 2003
Capital and surplus	996,657	826,550	798,354
Contingency reserve	239,493	321,312	307,697
Qualified statutory capital	1,236,150	1,147,862	1,106,051
Unearned premium reserve	709,302	735,156	690,525
Loss and loss expense reserve	126,466	95,130	83,556
Total policyholders' reserves	2,071,918	1,978,148	1,880,132
Present value of installment premiums	363,166	444,368	438,750
Reinsurance and soft capital facilities	245,000	275,000	275,000
Total claims paying resources	2,680,084	2,697,516	2,593,882
Net debt service outstanding	100,219,130	117,900,058	116,241,337
Capital leverage ratio (2)	81	103	105
Claims paying leverage ratio (3)	37	44	45
Reserve for losses and LAE
Specific	43,970	86,378	82,421
Conseco	87,693	111,000	—
Non-specific	112,180	79,529	87,042
Total	243,843	276,907	169,463

(2) Net debt service outstanding divided by qualified statutory capital

(3) Net debt service outstanding divided by total claims paying resources

- 12 -

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter and Nine Months Ended and as of September 30, 2004

Exhibit I

	Quarter Ended September 30										Nine Months Ended September 30
	2004			%		2003			%		2004			%		2003			%
Primary New Insurance Written (in millions)
Flow		9,123		78.1	%		14,311		88.0	%		28,392		85.7	%		38,167		68.6	%
Structured		2,563		21.9	%		1,958		12.0	%		4,726		14.3	%		17,503		31.4	%
Total		11,686		100.0	%		16,269		100.0	%		33,118		100.0	%		55,670		100.0	%
Prime		7,181		61.5	%		11,740		72.2	%		21,462		64.8	%		36,950		66.4	%
Alt-A		2,633		22.5	%		3,362		20.7	%		7,523		22.7	%		12,535		22.5	%
A minus and below		1,872		16.0	%		1,167		7.1	%		4,133		12.5	%		6,185		11.1	%
Total		11,686		100.0	%		16,269		100.0	%		33,118		100.0	%		55,670		100.0	%
Total Primary New Insurance Written by FICO Score
(in millions)
<=619		1,581		13.5	%		924		5.7	%		3,381		10.2	%		5,443		9.8	%
620-679		3,914		33.5	%		4,552		28.0	%		10,724		32.4	%		15,925		28.6	%
680-739		3,796		32.5	%		6,681		41.0	%		11,610		35.0	%		19,978		35.9	%
>=740		2,395		20.5	%		4,112		25.3	%		7,403		22.4	%		14,324		25.7	%
Total		11,686		100.0	%		16,269		100.0	%		33,118		100.0	%		55,670		100.0	%
Percentage of primary new insurance written
Monthlies		94	%				80	%				93	%				87	%
Refinances		37	%				48	%				38	%				53	%
95.01% LTV and above		11	%									11	%
ARMs		46	%				15	%				39	%				31	%
Primary risk written (in millions)
Flow		2,287		73.9	%		3,339		86.4	%		7,196		83.2	%		9,053		65.6	%
Structured		809		26.1	%		524		13.6	%		1,448		16.8	%		4,743		34.4	%
Total		3,096		100.0	%		3,863		100.0	%		8,644		100.0	%		13,796		100.0	%
Pool risk written (in millions)		52					88					376					654
Other risk written (in millions)
Seconds		70										132
NIMS and other		33										253
Total other risk written		103										385
Net Premiums Written (in thousands)
Primary and Pool Insurance		177,818					173,092					560,276					485,589
Seconds, NIMS and other		31,267					22,268					90,937					64,770
Net Premiums Written		209,085					195,360					651,213					550,359
Net Premiums Earned (in thousands)
Primary and Pool Insurance		169,684					173,773					511,453					494,550
Seconds, NIMS and other		35,629					26,014					100,463					62,987
Net Premiums Earned		205,313					199,787					611,916					557,537
Captives
Premiums ceded to captives($ millions)	$	22.6				$	18.6				$	64.5				$	54.6
% of total premiums		11.6	%				9.8	%				11.2	%				10.0	%
NIW subject to captives($ millions)	$	3,988				$	6,501				$	13,394				$	17,192
% of primary NIW		34.1	%				40.0	%				40.4	%				30.9	%
IIF subject to captives		32.8	%				28.2	%
RIF subject to captives		34.6	%				30.4	%
Persistency (twelve months ended September 30)		57.4	%				46.1	%

- 13 -

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter and Nine Months Ended and as of September 30, 2004—Exhibit J

(Thousands of dollars, except ratios)	September 30				December 31			September 30
	2004		%		2003	%		2003	%
Primary insurance in force (in millions)
Flow	90,964		78.8	%	91,709	76.5	%	91,170	75.1	%
Structured	24,516		21.2	%	28,178	23.5	%	30,164	24.9	%
Total	115,480		100.0	%	119,887	100.0	%	121,334	100.0	%
Prime	79,900		69.2	%	82,096	68.5	%	84,957	70.0	%
Alt-A	22,393		19.4	%	23,710	19.8	%	21,940	18.1	%
A minus and below	13,187		11.4	%	14,081	11.7	%	14,437	11.9	%
Total	115,480		100.0	%	119,887	100.0	%	121,334	100.0	%
Primary risk in force (in millions)
Flow	22,234		83.0	%	22,261	82.1	%	21,957	80.8	%
Structured	4,562		17.0	%	4,845	17.9	%	5,230	19.2	%
Total	26,796		100.0	%	27,106	100.0	%	27,187	100.0	%
Prime	18,349		68.5	%	18,449	68.0	%	19,138	70.4	%
Alt-A	5,166		19.3	%	5,253	19.4	%	4,581	16.8	%
A minus and below	3,281		12.2	%	3,404	12.6	%	3,468	12.8	%
Total	26,796		100.0	%	27,106	100.0	%	27,187	100.0	%
Total Primary Risk in Force by FICO Score
(in millions)
<=619	3,169		11.8	%	3,508	12.9	%	3,653	13.5	%
620-679	8,701		32.5	%	8,773	32.4	%	8,761	32.2	%
680-739	9,135		34.1	%	9,097	33.6	%	9,147	33.6	%
>=740	5,791		21.6	%	5,728	21.1	%	5,626	20.7	%
Total	26,796		100.0	%	27,106	100.0	%	27,187	100.0	%
Percentage of primary risk in force
Monthlies	92	%
Refinances	37	%
95.01% LTV and above	13	%
ARMs	28	%

- 14 -

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter and Nine Months Ended and as of September 30, 2004—Exhibit K

(Thousands of dollars, except ratios)	September 30			December 31			September 30
	2004	%		2003	%		2003	%
Total Primary Risk in Force by LTV (in millions)
95.01% and above	3,381	12.6	%	3,067	11.3	%	2,796	10.3	%
90.01% to 95.00%	9,911	37.0	%	10,184	37.6	%	10,253	37.7	%
85.01% to 90.00%	10,119	37.8	%	10,024	37.0	%	10,125	37.2	%
85.00% and below	3,385	12.6	%	3,831	14.1	%	4,013	14.8	%
Total	26,796	100.0	%	27,106	100.0	%	27,187	100.0	%
Total Primary Risk in Force by Policy Year (in millions)
2001 and prior	4,764	17.8	%	7,837	28.9	%	9,362	34.4	%
2002	3,977	14.8	%	6,198	22.9	%	7,234	26.6	%
2003	10,094	37.7	%	13,071	48.2	%	10,591	39.0	%
2004	7,961	29.7	%	—	—		—	—
Total	26,796	100.0	%	27,106	100.0	%	27,187	100.0	%
Pool risk in force (in millions)	2,363			2,415			2,394
GSE Pool risk in force (in millions)	1,567			1,393			1,391
Other risk in force (in millions)
Seconds	693			725			675
NIMS and other	559			328			286
Total other risk in force ($millions)	1,252			1,053			961
Risk to capital ratio-STAT Basis	10.1:1			11.4:1			11.7:1

- 15 -

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter and Nine Months Ended and as of September 30, 2004 – Exhibit L

	Quarter Ended September 30						Nine Months Ended September 30
	2004		2003				2004		2003
Direct claims paid (in thousands)
Prime	36,036		32,411				105,683		88,746
Alt-A	21,123		15,072				64,025		35,771
A Minus and below	25,223		19,175				71,666		50,279
Seconds	9,836		4,561				33,134		17,602
Total	92,218		71,219				274,508		192,398
Average claim paid (in thousands)
Prime	22.5		23.6				23.8		24.0
Alt-A	36.5		42.6				39.0		40.4
A Minus and below	26.3		26.0				26.8		25.7
Seconds	25.7		28.5				27.3		26.7
Total	26.2		27.2				27.5		26.7
Loss ratio - GAAP Basis	49.2	%	41.1	%			49.1	%	38.1	%
Expense ratio - GAAP Basis	26.5	%	26.1	%			26.6	%	26.8	%
	75.7	%	67.2	%			75.7	%	64.9	%
	September 30 2004		December 31 2003		September 30 2003
Default Statistics
Primary insurance:
Prime
Number of insured loans	616,468		640,778		663,870
Number of loans in default	19,199		22,156		21,232
Percentage of loans in default	3.11	%	3.46	%	3.20	%
Alt A
Number of insured loans	130,860		138,571		128,278
Number of loans in default	8,213		7,343		5,832
Percentage of loans in default	6.28	%	5.30	%	4.55	%
A Minus and below
Number of insured loans	102,599		110,054		112,498
Number of loans in default	12,078		12,497		11,768
Percentage of loans in default	11.77	%	11.36	%	10.46	%
Total
Number of insured loans	849,927		889,403		904,646
Number of loans in default	39,490		41,996		38,832
Percentage of loans in default	4.65	%	4.72	%	4.29	%
Pool insurance:
Number of insured loans	580,533		599,140		595,833
Number of loans in default	6,489		5,738		5,440
Percentage of loans in default	1.12	%	0.96	%	0.91	%

- 16 -

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter and Nine Months Ended and as of September 30, 2004 – Exhibit M

ALT-A

	Quarter Ended						Nine Months Ended
(Thousands of dollars, except ratios)	September 30						September 30
	2004	%		2003	%		2004	%		2003	%
Primary New Insurance Written by FICO Score
(in millions)
<=619	36	1.4	%	21	0.6	%	81	1.1	%	31	0.2	%
620-659	482	18.3	%	653	19.4	%	1,255	16.7	%	2,377	19.0	%
660-679	477	18.1	%	682	20.3	%	1,356	18.0	%	2,020	16.1	%
680-739	1,147	43.6	%	1,269	37.8	%	3,404	45.2	%	4,761	38.0	%
>=740	491	18.6	%	737	21.9	%	1,427	19.0	%	3,346	26.7	%
Total Alt A	2,633	100.0	%	3,362	100.0	%	7,523	100.0	%	12,535	100.0	%
Primary Risk in Force by FICO Score (in millions)
<=619	80	1.5	%	80	1.7	%
620-659	1,117	21.6	%	1,190	26.0	%
660-679	903	17.5	%	773	16.9	%
680-739	2,175	42.1	%	1,772	38.7	%
>=740	891	17.3	%	766	16.7	%
Total Alt A	5,166	100.0	%	4,581	100.0	%
Primary Risk in Force by LTV (in millions)
95.01% and above	415	8.0	%	389	8.5	%
90.01% to 95.00%	1,842	35.7	%	1,545	33.7	%
85.01% to 90.00%	2,154	41.7	%	1,801	39.3	%
85.00% and below	755	14.6	%	846	18.5	%
Total Alt A	5,166	100.0	%	4,581	100.0	%
Primary Risk in Force by Policy Year (in millions)
2001 and prior	443	8.6	%	858	18.7	%
2002	799	15.5	%	1,546	33.8	%
2003	2,067	39.9	%	2,177	47.5	%
2004	1,857	36.0	%	—	—
Total Alt A	5,166	100.0	%	4,581	100.0	%

- 17 -

Radian Group Inc.

Financial Services Supplemental Information

For the Quarter and Nine Months Ended and as of September 30, 2004 – Exhibit N

	Quarter Ended			Nine Months Ended
(Thousands of dollars)	September 30			September 30
	2004		2003	2004	2003
Investment in Affiliate Reconciliation:
C-BASS
Balance, beginning of period	248,759		204,229	226,710	175,630
Net income for period	18,095		12,276	72,644	43,375
Dividends received	—		5,000	32,500	7,500
Balance, end of period	266,854		211,505	266,854	211,505
Sherman
Balance, beginning of period	48,709		46,228	65,979	52,142
Net income for period	25,798		6,862	56,536	19,052
Dividends received	—		—	49,800	12,450
Other comprehensive income	(914	)	1,416	878	(4,238	)
Balance, end of period	73,593		54,506	73,593	54,506
Portfolio Information:
C-BASS
Servicing portfolio	22,270,000		16,010,000
Total assets	4,466,115		2,757,036
Servicing income	38,931		32,259	112,958	90,476
Net interest income	37,025		32,287	109,207	90,210
Total revenues	105,115		79,065	354,174	256,510
Sherman
Total assets	444,368		490,806
Net revenues	129,661		79,898	353,314	193,223

- 18 -

Supplemental Schedule Schedule 1

Radian Group Inc. and Subsidiaries-Consolidated—Exhibit O

The following schedule shows the Financial Guaranty Segment Income Statement as reported (Column 1) and adjustments (Column 2) to reflect the income statement impact of the recapture (referred to below as the clawback) of business previously ceded to the Company by one of the primary insurer customers of the financial guaranty segment. The adjusted numbers are shown in Column 3. The impact of the clawback (Column 2) reflects the clawback of business ceded to the Company in prior periods. This clawback only affected the first quarter (and, as a result, the year-to-date periods) of 2004. Accordingly, management believes that Column 3 provides useful information to investors by presenting a more meaningful basis of comparison for the Company's past and future results.

	As Reported					As Adjusted Nine Months Ended
	Nine Months Ended		Impact					Nine Months Ended
	September 30		of			September 30		September 30
	2004		Clawback			Excluding Clawback		2003
(Thousands of dollars, except per-share data)
Revenues:
Net premiums written	$	795,227	$	(96,417	)	$	891,644	$	811,773
Premiums earned	$	766,717	$	(24,892	)	$	791,609	$	742,184
Net investment income		151,670		—			151,670		140,041
Equity in net income of affiliates		130,580		—			130,580		70,034
Gain/loss on sales of investments		40,956		—			40,956		8,627
Other income		22,996		—			22,996		48,449
Total revenues		1,112,919		(24,892	)		1,137,811		1,009,335
Expenses:
Provision for losses		345,452		—			345,452		264,060
Policy acquisition costs		89,558		(9,766	)		99,324		96,172
Other operating expenses		153,242		—			153,242		152,429
Interest expense		26,014		—			26,014		27,888
Total expenses		614,266		(9,766	)		624,032		540,549
Change in fair value of derivative instruments		2,576		(791	)		3,367		(6,655	)
Pretax income		501,229		(15,917	)		517,146		462,131
Provision for income taxes		138,545		(5,571	)		144,116		131,707
Net income	$	362,684	$	(10,346	)	$	373,030		330,424
Net income available to common stockholders	$	362,684	$	(10,346	)	$	373,030		330,424
Net income per share	$	3.84	$	(0.11	)	$	3.95		3.50
Weighted average shares outstanding (in thousands)		94,456					94,456		94,514

- 19 -

Supplemental Schedule Schedule 2

Segment Information-Financial Guaranty

Exhibit P

The following schedule shows the Financial Guaranty Segment Income Statement as reported (Column 1) and adjustments (Column 2) to reflect the income statement impact of the recapture (referred to below as the clawback) of business previously ceded to the Company by one of the primary insurer customers of the financial guaranty segment. The adjusted numbers are shown in Column 3. The impact of the clawback (Column 2) reflects the clawback of business ceded to the Company in prior periods. This clawback only affected the first quarter (and, as a result, the year-to-date periods) of 2004. Accordingly, management believes that Column 3 provides useful information to investors by presenting a more meaningful basis of comparison for the Company’s past and future results.

	As Reported					As Adjusted
	Nine Months Ended		Impact			Nine Months Ended			Nine Months Ended
	September 30		of			September 30			September 30
(Thousands of dollars)	2004		Clawback			Excluding Clawback			2003
Revenues:
Net premiums written	$	144,014	$	(96,417	)	$	240,431		$	261,414
Premiums earned	$	154,801	$	(24,892	)	$	179,693		$	184,647
Net investment income		63,981		—			63,981			58,797
Equity in net income (loss) of affiliates		1,400		—			1,400			7,607
Gain/loss on sales of investments		3,711		—			3,711			8,922
Other income		1,235		—			1,235			3,010
Total revenues		225,128		(24,892	)	$	250,020			262,983
Expenses:
Provision for losses		45,290		—			45,290			51,782
Policy acquisition costs		32,801		(9,766	)		42,567			42,875
Other operating expenses		36,728		—			36,728			27,821
Interest expense		9,039		—			9,039			9,477
Total expenses		123,858		(9,766	)		133,624			131,955
Change in fair value of derivative instruments		6,507		(791	)		7,298			(6,084	)
Pretax income		107,777		(15,917	)		123,694			124,944
Income tax provision		21,424		(5,571	)		26,995			33,846
Net income	$	86,353	$	(10,346	)	$	96,699		$	91,098
Loss ratio-excluding Clawback							25.2	%		28.0	%
Expense ratio-excluding Clawback							44.1	%		38.3	%
							69.3	%		66.3	%

- 20 -

All statements in this press release that address operating performance, events or developments that we expect or anticipate may occur in the future are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the U.S. Private Securities Litigation Reform Act of 1995. These statements are made on the basis of management’s current views and assumptions with respect to future events. The forward-looking statements are subject to risks and uncertainties including the following: changes in general financial and political conditions, such as extended national or regional economic recessions (or expansions), changes in housing values, changes or volatility in interest rates, or other political instability; changes in investor perception of the strength of private mortgage insurers or financial guaranty providers, and risks faced by the businesses, municipalities or pools of assets covered by Radian’s insurance; the loss of significant customers with whom Radian has a concentration of its insurance in force; rising delinquencies in mortgage loans insured by Radian resulting from increased consolidation of mortgage lenders and servicers; increased severity or frequency of losses associated with certain Radian products that are riskier than traditional mortgage insurance and municipal guaranty insurance policies; material changes in persistency rates of Radian’s mortgage insurance policies; downgrades of the insurance financial-strength ratings assigned by the major ratings agencies to Radian’s operating subsidiaries; intense competition from others and from alternative products to private mortgage insurance and financial guaranty insurance; changes in the business practices of Fannie Mae and Freddie Mac; legislative and regulatory changes affecting demand for private mortgage insurance and financial guaranty insurance; changes in claims against mortgage insurance products resulting from the aging of Radian’s mortgage insurance policies; changes in Radian’s ability to maintain sufficient reinsurance capacity in an increasingly concentrated reinsurance market; vulnerability to the performance of Radian’s strategic investments; and the loss of executive officers or other key personnel. Investors are also directed to other risks discussed in documents filed by Radian with the SEC, including the factors detailed in our annual report on Form 10-K for the year ended December 31, 2003 in the section immediately preceding Part I of the report. Radian does not intend to and disclaims any duty or obligation to update or revise any forward-looking statements made in this press release to reflect new information, future events or for any other reason.

# # #

- 21 -