Exhibit 99.1

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

Contact:
For investors:	Mona Zeehandelaar – phone: 215 231.1674
	email: mona.zeehandelaar@radian.biz
For the media:	David Cheung – 215 231.1362
	email: david.cheung@radian.biz

Radian Reports Record 2004 Net Income of $519 Million

Fourth quarter 2004 net income registers record $156 million

PHILADELPHIA, Pa., January 19, 2005 — Radian Group Inc. (NYSE: RDN) today reported its results for the quarter ended December 31, 2004. The key financial highlights of the quarter and twelve months ended December 31, 2004 are shown in the following tables:

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

Fourth Quarter:

	Quarter Ended December 31, 2004		Quarter Ended December 31, 2003		Percent Change
Net income	$	156.0	$	55.5	181	%
Diluted net income per share*	$	1.62	$	0.57	184	%
Net premiums written	$	287.3	$	298.7	(4	)%
Net premiums earned	$	262.8	$	266.0	(1	)%
Revenues**	$	379.1	$	346.5	9	%
Book value per share (as of 12/31)	$	39.98	$	34.31	17	%
Equity in net income of affiliates	$	50.0	$	35.4	41	%

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Twelve Months:

	Twelve Months Ended December 31, 2004		Twelve Months Ended December 31, 2003		Percent Change
Net income	$	518.7	$	385.9	34	%
Diluted net income per share*	$	5.33	$	3.95	35	%
Net premiums written	$	1,082.5	$	1,110.5	(3	)%
Net premiums written***	$	1,178.9	$	1,110.5	6	%
Net premiums earned	$	1,029.5	$	1,008.2	2	%
Net premiums earned***	$	1,054.4	$	1,008.2	5	%
Revenues**	$	1,364.1	$	1,279.2	7	%
Equity in net income of affiliates	$	180.6	$	105.5	71	%

* In conformity with the current period presentation and as required by newly issued accounting rules, the prior period presentation has been adjusted to reflect the inclusion of 3.8 million shares underlying contingently convertible debt. The impact of including these shares in the calculation was a reduction of $0.06 for the quarter ended December 31, 2004, $0.01 for the quarter ended December 31, 2003, $0.18 for the twelve months ended December 31, 2004 and $0.13 for the twelve months ended December 31, 2003.

** In conformity with the current period presentation, prior period revenues have been adjusted to include gain/loss on sales of investments and change in fair value of derivative instruments and to exclude equity in net income of affiliates. 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.

“Our 2004 quarterly and full year results reflect continued growth in earnings and book value,” said Radian’s Chairman and CEO Frank P. Filipps. “In a challenging business environment, we achieved record net income of $156 million in the fourth quarter and $519 million for the year, while book value increased 17%.”

Radian will hold a conference call on Thursday, January 20, 2005, at 9:00 a.m. Eastern time to discuss the company’s 2004 results. This call will be broadcast live over the Internet at www.ir.radian.biz/phoenix.zhtml?c=112301&p=irol-audioarchives or at www.radian.biz, under “News.” A replay of the webcast will be available at this site approximately two hours after the live broadcast ends for a period of one year.

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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 – Webcasts, Presentations and Transcripts” or by clicking on www.ir.radian.biz/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.radian.biz.

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 December 31, 2004
Exhibit D:	Segment Information Quarter Ended December 31, 2003
Exhibit E:	Segment Information Year Ended December 31, 2004
Exhibit F:	Segment Information Year Ended December 31, 2003
Exhibit G:	Financial Guaranty Insurance Supplemental Information – Quarter and Year Ended and as of December 31, 2004
Exhibit H:	Financial Guaranty Insurance Supplemental Information – Quarter and Year Ended and as of December 31, 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

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Radian Group Inc. and Subsidiaries

Condensed Consolidated Statements of Income

Exhibit A

	Quarter Ended December 31				Year Ended December 31
(In thousands, except per share amounts)	2004		2003		2004		2003
Revenues:
Net premiums written	$	287,260	$	298,704	$	1,082,487	$	1,110,477
Net premiums earned	$	262,767	$	265,999	$	1,029,484	$	1,008,183
Net investment income		52,679		46,122		204,349		186,163
Gain on sales of investments		9,843		8,760		50,799		17,387
Change in fair value of derivative instruments		44,559		10,794		47,135		4,139
Other income		9,290		14,873		32,286		63,322
Total revenues		379,138		346,548		1,364,053		1,279,194
Expenses:
Provision for losses		111,382		211,994		456,834		476,054
Policy acquisition costs		32,272		32,346		121,830		128,518
Other operating expenses		52,445		58,648		205,687		211,077
Interest expense		8,646		9,654		34,660		37,542
Total expenses		204,745		312,642		819,011		853,191
Equity in net income of affiliates		49,970		35,442		180,550		105,476
Pretax income		224,363		69,348		725,592		531,479
Provision for income taxes		68,394		13,871		206,939		145,578
Net income	$	155,969	$	55,477	$	518,653	$	385,901
Diluted net income per share (1)	$	1.62	$	0.57	$	5.33	$	3.95
(1)    Net income per share reconciliation
Net income	$	155,969	$	55,477	$	518,653	$	385,901
Interest expense on convertible senior debentures (net of tax)		804		804		3,218		3,218
Net income available to common stockholders	$	156,773	$	56,281	$	521,871	$	389,119
Weighted average shares outstanding (in thousands) (2)		96,832		98,838		97,908		98,453

(2) The prior period presentation has been adjusted to reflect the inclusion of 3.8 million shares underlying contingently convertible debt as required by newly issued accounting rules. The impact on diluted net income per share of including these shares in the calculation was a reduction of $0.06 per share and $0.01 per share for the quarters ended December 31, 2004 and 2003, respectively, and $0.18 per share and $0.13 per share for the twelve months ended December 31, 2004 and 2003, respectively.

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Radian Group Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

Exhibit B

(In thousands except share and per share amounts)	December 31 2004		December 31 2003
Assets:
Cash and investments	$	5,500,748	$	5,074,531
Investments in affiliates		393,025		328,478
Deferred policy acquisition costs		211,928		218,779
Prepaid federal income taxes		460,149		358,840
Other assets		434,970		465,139
Total assets	$	7,000,820	$	6,445,767
Liabilities and stockholders’ equity:
Unearned premiums	$	770,208	$	718,649
Reserve for losses and loss adjustment expenses		801,012		790,380
Long-term debt		717,640		717,404
Deferred federal income taxes		848,224		712,354
Other liabilities		174,681		281,136
Total liabilities		3,311,765		3,219,923
Common stock		96		96
Additional paid-in capital		1,106,192		1,199,056
Retained earnings		2,397,626		1,886,548
Accumulated other comprehensive income		185,141		140,144
Total stockholders’ equity		3,689,055		3,225,844
Total liabilities and stockholders’ equity	$	7,000,820	$	6,445,767
Book value per share	$	39.98	$	34.31

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Radian Group Inc. and Subsidiaries

Segment Information

Quarter Ended December 31, 2004

Exhibit C

(In thousands)	Mortgage Insurance		Financial Services			Financial Guaranty		Total
Revenues:
Net premiums written	$	214,838	$	—		$	72,422	$	287,260
Net premiums earned	$	202,637	$	—		$	60,130	$	262,767
Net investment income		31,087		16			21,576		52,679
Gain/loss on sales of investments		9,798		(239	)		284		9,843
Change in fair value of derivative instruments		15,761		316			28,482		44,559
Other income		7,646		829			815		9,290
Total revenues		266,929		922			111,287		379,138
Expenses:
Provision for losses		100,774		—			10,608		111,382
Policy acquisition costs		18,730		—			13,542		32,272
Other operating expenses		35,116		1,730			15,599		52,445
Interest expense		5,032		631			2,983		8,646
Total expenses		159,652		2,361			42,732		204,745
Equity in net income of affiliates		—		49,948			22		49,970
Pretax income		107,277		48,509			68,577		224,363
Provision for income taxes		30,730		16,966			20,698		68,394
Net income	$	76,547	$	31,543		$	47,879	$	155,969
Assets	$	4,198,325	$	388,975		$	2,413,520	$	7,000,820
Deferred policy acquisition costs		69,175		—			142,753		211,928
Reserve for losses and loss adjustment expenses		559,632		—			241,380		801,012
Unearned premiums		142,853		—			627,355		770,208
Stockholders’ equity		2,065,290		316,378			1,307,387		3,689,055

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Radian Group Inc. and Subsidiaries

Segment Information

Quarter Ended December 31, 2003

Exhibit D

(In thousands)	Mortgage Insurance		Financial Services			Financial Guaranty			Total
Revenues:
Net premiums written	$	191,481	$	—		$	107,223		$	298,704
Net premiums earned	$	202,083	$	—		$	63,916		$	265,999
Net investment income		26,482		—			19,640			46,122
Gain/loss on sales of investments		6,752		(618	)		2,626			8,760
Change in fair value of derivative instruments		3,881		55			6,858			10,794
Other income		6,858		7,386			629			14,873
Total revenues		246,056		6,823			93,669			346,548
Expenses:
Provision for losses		96,994		—			115,000			211,994
Policy acquisition costs		16,898		—			15,448			32,346
Other operating expenses		29,509		18,892			10,247			58,648
Interest expense		5,402		816			3,436			9,654
Total expenses		148,803		19,708			144,131			312,642
Equity in net income of affiliates		—		33,080			2,362			35,442
Pretax income (loss)		97,253		20,195			(48,100	)		69,348
Provision (benefit) for income taxes		26,399		8,066			(20,594	)		13,871
Net income (loss)	$	70,854	$	12,129		$	(27,506	)	$	55,477
Assets	$	3,849,210	$	314,628		$	2,281,929		$	6,445,767
Deferred policy acquisition costs		79,542		—			139,237			218,779
Reserve for losses and loss adjustment expenses		513,473		—			276,907			790,380
Unearned premiums		93,415		—			625,234			718,649
Stockholders’ equity		1,850,796		260,918			1,114,130			3,225,844

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Radian Group Inc. and Subsidiaries

Segment Information

Year Ended December 31, 2004

Exhibit E

(In thousands)	Mortgage Insurance		Financial Services		Financial Guaranty		Total
Revenues:
Net premiums written	$	866,051	$	—	$	216,436	$	1,082,487
Net premiums earned	$	814,553	$	—	$	214,931	$	1,029,484
Net investment income		118,694		98		85,557		204,349
Gain on sales of investments		44,380		2,424		3,995		50,799
Change in fair value of derivative instruments		11,940		206		34,989		47,135
Other income		24,247		5,989		2,050		32,286
Total revenues		1,013,814		8,717		341,522		1,364,053
Expenses:
Provision for losses		400,936		—		55,898		456,834
Policy acquisition costs		75,487		—		46,343		121,830
Other operating expenses		141,131		12,229		52,327		205,687
Interest expense		20,138		2,500		12,022		34,660
Total expenses		637,692		14,729		166,590		819,011
Equity in net income of affiliates		—		179,128		1,422		180,550
Pretax income		376,122		173,116		176,354		725,592
Provision for income taxes		104,240		60,577		42,122		206,939
Net income	$	271,882	$	112,539	$	134,232	$	518,653

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Radian Group Inc. and Subsidiaries

Segment Information

Year Ended December 31, 2003

Exhibit F

(In thousands)	Mortgage Insurance		Financial Services			Financial Guaranty		Total
Revenues:
Net premiums written	$	741,840	$	—		$	368,637	$	1,110,477
Net premiums earned	$	759,620	$	—		$	248,563		1,008,183
Net investment income		107,690		36			78,437		186,163
Gain/loss on sales of investments		8,123		(2,284	)		11,548		17,387
Change in fair value of derivative instruments		3,275		90			774		4,139
Other income		32,003		27,680			3,639		63,322
Total revenues		910,711		25,522			342,961		1,279,194
Expenses:
Provision for losses		309,272		—			166,782		476,054
Policy acquisition costs		70,195		—			58,323		128,518
Other operating expenses		125,951		47,058			38,068		211,077
Interest expense		21,467		3,162			12,913		37,542
Total expenses		526,885		50,220			276,086		853,191
Equity in net income of affiliates		—		95,507			9,969		105,476
Pretax income		383,826		70,809			76,844		531,479
Provision for income taxes		104,013		28,313			13,252		145,578
Net income	$	279,813	$	42,496		$	63,592	$	385,901

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Radian Group Inc.

Financial Guaranty Insurance Supplemental Information

For the Quarter and Year Ended and as of December 31, 2004

Exhibit G

	Quarter Ended December 31				Year Ended December 31
(Thousands of dollars, except ratios)	2004		2003		2004		2003
Net Premiums Written:
Public finance direct	16,408		42,060		52,279		85,178
Public finance reinsurance	18,575		14,947		74,777		81,877
Structured direct	17,897		25,608		94,423		88,053
Structured reinsurance	8,299		10,221		32,112		48,702
Trade credit	11,243		14,387		59,262		64,827
	72,422		107,223		312,853		368,637
Impact of recapture (1)	—		—		(96,417	)	—
Net Premiums Written	72,422		107,223		216,436		368,637
Net Premiums Earned:
Public finance direct	7,127		5,203		26,643		18,277
Public finance reinsurance	10,841		13,464		41,651		51,118
Structured direct	20,750		18,127		78,292		73,720
Structured reinsurance	8,053		11,866		33,001		48,497
Trade credit	13,359		15,256		60,236		56,951
	60,130		63,916		239,823		248,563
Impact of recapture (1)	—		—		(24,892	)	—
Net Premiums Earned	60,130		63,916		214,931		248,563
Claims paid:
Trade credit	5,607		5,068		24,085		20,663
Financial guaranty	2,597		2,698		27,237		9,228
Conseco	7,350		—		30,657		—
Total	15,554		7,766		81,979		29,891
Impact of recapture (1)	—		—		11,488		—
Claims paid	15,554		7,766		93,467		29,891
Incurred losses:
Trade credit	5,045		12,133		28,586		35,671
Financial guaranty	5,563		6,867		27,312		20,111
Conseco	—		96,000		—		111,000
Total	10,608		115,000		55,898		166,782
Loss ratio- GAAP Basis	17.6	%	179.9	%	26.0	%	67.1	%
Expense ratio- GAAP Basis	48.5	%	40.2	%	45.9	%	38.8	%
	66.1	%	220.1	%	71.9	%	105.9	%
Refundings included in earned premium	888		1,637		5,055		7,942

(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.

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Radian Group Inc.

Financial Guaranty Insurance Supplemental Information

For the Quarter and Year Ended and as of December 31, 2004

Exhibit H

(Thousands of dollars, except ratios)	December 31 2004	December 31 2003
Capital and surplus	1,008,423	826,550
Contingency reserve	251,674	321,312
Qualified statutory capital	1,260,097	1,147,862
Unearned premium reserve	730,604	735,156
Loss and loss expense reserve	132,767	95,130
Total policyholders’ reserves	2,123,468	1,978,148
Present value of installment premiums	252,000	444,368
Reinsurance and soft capital facilities	245,000	275,000
Total claims paying resources	2,620,468	2,697,516
Net debt service outstanding	101,619,835	117,900,058
Capital leverage ratio (2)	81	103
Claims paying leverage ratio (3)	39	44
Reserve for losses and LAE
Specific	48,142	86,378
Conseco	80,343	111,000
Non-specific	112,895	79,529
Total	241,380	276,907

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

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

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Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter and Year Ended and as of December 31, 2004

Exhibit I

	Quarter Ended December 31										Year Ended December 31
	2004			%		2003			%		2004			%		2003			%
Primary New Insurance Written (in millions)
Flow		7,966		68.1	%		11,321		89.2	%		36,358		81.1	%		49,488		72.4	%
Structured		3,736		31.9	%		1,371		10.8	%		8,462		18.9	%		18,874		27.6	%
Total		11,702		100.0	%		12,692		100.0	%		44,820		100.0	%		68,362		100.0	%
Prime		6,929		59.2	%		3,990		31.4	%		28,391		63.4	%		40,940		59.9	%
Alt-A		2,654		22.7	%		7,491		59.0	%		10,177		22.7	%		20,026		29.3	%
A minus and below		2,119		18.1	%		1,211		9.6	%		6,252		13.9	%		7,396		10.8	%
Total		11,702		100.0	%		12,692		100.0	%		44,820		100.0	%		68,362		100.0	%
Total Primary New Insurance Written by FICO Score (in millions)
<=619		1,922		16.4	%		992		7.8	%		5,303		11.8	%		6,435		9.4	%
620-679		4,048		34.6	%		3,838		30.2	%		14,772		33.0	%		19,763		28.9	%
680-739		3,558		30.4	%		4,828		38.1	%		15,168		33.8	%		24,806		36.3	%
>=740		2,174		18.6	%		3,034		23.9	%		9,577		21.4	%		17,358		25.4	%
Total		11,702		100.0	%		12,692		100.0	%		44,820		100.0	%		68,362		100.0	%
Percentage of primary new insurance written
Monthlies		95	%				95	%				93	%				88	%
Refinances		45	%				37	%				40	%				50	%
95.01% LTV and above		9	%									11	%
ARMs		51	%				31	%				42	%				31	%
Primary risk written (in millions)
Flow		1,983		66.3	%		2,912		88.1	%		9,179		78.9	%		11,965		70.0	%
Structured		1,007		33.7	%		394		11.9	%		2,455		21.1	%		5,137		30.0	%
Total		2,990		100.0	%		3,306		100.0	%		11,634		100.0	%		17,102		100.0	%
Pool risk written (in millions)		65					279					441					933
Other risk written (in millions)
Seconds		22										154
NIMS and other		20										273
Total other risk written		42										427
Net Premiums Written (in thousands)
Primary and Pool Insurance		188,257					165,487					748,533					651,076
Seconds, NIMS and other		26,581					25,994					117,518					90,764
Net Premiums Written		214,838					191,481					866,051					741,840
Net Premiums Earned (in thousands)
Primary and Pool Insurance		174,350					171,964					685,803					666,514
Seconds, NIMS and other		28,287					30,119					128,750					93,106
Net Premiums Earned		202,637					202,083					814,553					759,620
Captives
Premiums ceded to captives($ millions)	$	22.8				$	19.0				$	87.3				$	73.6
% of total premiums		11.6	%				10.1	%				11.3	%				10.0	%
NIW subject to captives($ millions)	$	3,991				$	4,746				$	17,777				$	21,938
% of primary NIW		34.1	%				37.4	%				39.7	%				32.1	%
IIF subject to captives		33.2	%				29.2	%
RIF subject to captives		34.9	%				31.3	%
Persistency (twelve months ended December 31)		58.8	%				46.7	%

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Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter and Year Ended and as of December 31, 2004

Exhibit J

	December 31				December 31
	2004		%		2003	%
Primary insurance in force (in millions)
Flow	89,741		77.8	%	91,709	76.5	%
Structured	25,574		22.2	%	28,178	23.5	%
Total	115,315		100.0	%	119,887	100.0	%
Prime	79,628		69.0	%	82,096	68.5	%
Alt-A	22,092		19.2	%	23,710	19.8	%
A minus and below	13,595		11.8	%	14,081	11.7	%
Total	115,315		100.0	%	119,887	100.0	%
Primary risk in force (in millions)
Flow	21,991		81.4	%	22,261	82.1	%
Structured	5,021		18.6	%	4,845	17.9	%
Total	27,012		100.0	%	27,106	100.0	%
Prime	18,422		68.2	%	18,449	68.0	%
Alt-A	5,146		19.1	%	5,253	19.4	%
A minus and below	3,444		12.7	%	3,404	12.6	%
Total	27,012		100.0	%	27,106	100.0	%
Total Primary Risk in Force by FICO Score (in millions)
<=619	3,296		12.2	%	3,508	12.9	%
620-679	8,850		32.8	%	8,773	32.4	%
680-739	9,101		33.7	%	9,097	33.6	%
>=740	5,765		21.3	%	5,728	21.1	%
Total	27,012		100.0	%	27,106	100.0	%
Percentage of primary risk in force
Monthlies	92	%
Refinances	37	%
95.01% LTV and above	13	%
ARMs	31	%

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Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter and Year Ended and as of December 31, 2004

Exhibit K

	December 31			December 31
(In millions, except ratios)	2004	%		2003	%
Total Primary Risk in Force by LTV
95.01% and above	3,429	12.7	%	3,067	11.3	%
90.01% to 95.00%	9,822	36.4	%	10,184	37.6	%
85.01% to 90.00%	10,290	38.1	%	10,024	37.0	%
85.00% and below	3,471	12.8	%	3,831	14.1	%
Total	27,012	100.0	%	27,106	100.0	%
Total Primary Risk in Force by Policy Year
2001 and prior	4,202	15.6	%	7,837	28.9	%
2002	3,410	12.6	%	6,198	22.9	%
2003	9,046	33.5	%	13,071	48.2	%
2004	10,354	38.3	%	—	0.0	%
Total	27,012	100.0	%	27,106	100.0	%
Pool risk in force	2,384			2,415
GSE Pool risk in force	1,658			1,393
Other risk in force
Seconds	673			725
NIMS and other	532			328
Total other risk in force	1,205			1,053
Risk to capital ratio-STAT Basis	10.0:1			11.4:1

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Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter and Year Ended and as of December 31, 2004

Exhibit L

	Quarter Ended December 31				Year Ended December 31
	2004		2003		2004		2003
Direct claims paid (in thousands)
Prime	35,139		31,404		140,822		120,150
Alt-A	21,099		20,432		85,124		56,203
A Minus and below	23,772		21,376		95,438		71,655
Seconds	9,835		5,546		42,969		23,148
Total	89,845		78,758		364,353		271,156
Average claim paid (in thousands)
Prime	25.2		24.8		24.1		24.2
Alt-A	37.4		39.7		38.6		40.1
A Minus and below	27.8		27.2		27.1		26.1
Seconds	26.1		24.1		27.0		26.0
Total	28.2		28.2		27.7		27.1
Loss ratio- GAAP Basis	49.7	%	48.0	%	49.2	%	40.7	%
Expense ratio-GAAP Basis	26.6	%	23.0	%	26.6	%	25.8	%
	76.3	%	71.0	%	75.8	%	66.5	%

	December 31 2004		December 31 2003
Default Statistics
Primary insurance:
Prime
Number of insured loans	610,480		640,778
Number of loans in default	19,434		22,156
Percentage of loans in default	3.18	%	3.46	%
Alt A
Number of insured loans	128,010		138,571
Number of loans in default	8,339		7,343
Percentage of loans in default	6.51	%	5.30	%
A Minus and below
Number of insured loans	104,672		110,054
Number of loans in default	12,678		12,497
Percentage of loans in default	12.11	%	11.36	%
Total
Number of insured loans	843,162		889,403
Number of loans in default	40,451		41,996
Percentage of loans in default	4.80	%	4.72	%
Pool insurance:
Number of insured loans	583,568		599,140
Number of loans in default	6,749		5,738
Percentage of loans in default	1.16	%	0.96	%

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Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter and Year Ended and as of December 31, 2004

ALT-A - Exhibit M

	Quarter Ended December 31						Year Ended December 31
(In millions, except ratios)	2004	%		2003	%		2004	%		2003	%
Primary New Insurance Written by FICO Score
<=619	12	0.4	%	70	0.9	%	93	0.9	%	101	0.5	%
620-659	599	22.7	%	1,089	14.6	%	1,854	18.3	%	3,466	17.3	%
660-679	499	18.9	%	1,127	15.0	%	1,855	18.2	%	3,147	15.7	%
680-739	1,071	40.4	%	3,519	47.0	%	4,475	44.0	%	8,280	41.3	%
>=740	473	17.6	%	1,686	22.5	%	1,900	18.6	%	5,032	25.1	%
Total Alt A	2,654	100.0	%	7,491	100.0	%	10,177	100.0	%	20,026	100.0	%
Primary Risk in Force by FICO Score
<=619	70	1.4	%	102	1.9	%
620-659	1,110	21.6	%	1,331	25.3	%
660-679	919	17.8	%	886	16.9	%
680-739	2,157	41.9	%	2,064	39.3	%
>=740	890	17.3	%	870	16.6	%
Total Alt A	5,146	100.0	%	5,253	100.0	%
Primary Risk in Force by LTV
95.01% and above	370	7.2	%	467	8.9	%
90.01% to 95.00%	1,816	35.3	%	1,823	34.7	%
85.01% to 90.00%	2,191	42.6	%	2,121	40.4	%
85.00% and below	769	14.9	%	842	16.0	%
Total Alt A	5,146	100.0	%	5,253	100.0	%
Primary Risk in Force by Policy Year
2001 and prior	372	7.2	%	780	14.9	%
2002	653	12.7	%	1,414	26.9	%
2003	1,758	34.2	%	3,059	58.2	%
2004	2,363	45.9	%	—	—
Total Alt A	5,146	100.0	%	5,253	100.0	%

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Radian Group Inc.

Financial Services Supplemental Information

For the Quarter and Year Ended and as of December 31, 2004

Exhibit N

	Quarter Ended December 31		Year Ended December 31
(Thousands of dollars, except ratios)	2004	2003	2004	2003
Investment in Affiliates-Selected Information
C-BASS
Balance, beginning of period	266,854	211,505	226,710	175,630
Net income for period	23,219	22,705	95,863	66,080
Dividends received	—	7,500	32,500	15,000
Balance, end of period	290,073	226,710	290,073	226,710
Sherman
Balance, beginning of period	73,593	54,506	65,979	52,142
Net income for period	26,729	10,375	83,265	29,427
Dividends received	—	—	49,800	12,450
Other comprehensive income	1,170	1,098	2,048	(3,140	)
Balance, end of period	101,492	65,979	101,492	65,979
Portfolio Information:
C-BASS
Servicing portfolio	33,680,000	20,700,000
Total assets (in thousands)	4,353,652	3,181,468
Servicing income	47,439	34,608	160,397	125,084
Net interest income	40,875	35,907	150,082	126,117
Total revenues	125,058	100,318	479,232	356,828
Sherman
Total assets	486,193	505,045
Net revenues	127,654	77,552	480,968	270,775

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Supplemental Schedule	Schedule 1
Radian Group Inc. and Subsidiaries-Consolidated Exhibit O

The following schedule shows the Consolidated 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.

(Thousands of dollars, except per share data)	As Reported Year Ended December 31 2004		Impact of Clawback			As Adjusted Year Ended December 31, 2004 Excluding Clawback		Year Ended December 31 2003
Revenues:
Net premiums written	$	1,082,487	$	(96,417	)	$	1,178,904	$	1,110,477
Net premiums earned	$	1,029,484	$	(24,892	)	$	1,054,376	$	1,008,183
Net investment income		204,349		—			204,349		186,163
Gain on sales of investments		50,799		—			50,799		17,387
Change in fair value of derivative instruments		47,135		—			47,135		4,139
Other income		32,286		(791	)		33,077		63,322
Total revenues		1,364,053		(25,683	)		1,389,736		1,279,194
Expenses:
Provision for losses		456,834		—			456,834		476,054
Policy acquisition costs		121,830		(9,766	)		131,596		128,518
Other operating expenses		205,687		—			205,687		211,077
Interest expense		34,660		—			34,660		37,542
Total expenses		819,011		(9,766	)		828,777		853,191
Equity in net income of affiliates		180,550		—			180,550		105,476
Pretax income		725,592		(15,917	)		741,509		531,479
Provision for income taxes		206,939		(5,571	)		212,510		145,578
Net income	$	518,653	$	(10,346	)	$	528,999	$	385,901
Diluted net income per share	$	5.33	$	(0.11	)	$	5.44	$	3.95
Weighted average shares outstanding (in thousands)		97,908					97,908		98,453

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Supplemental Schedule	Schedule 2
Segment Information-Financial Guaranty Radian Group Inc. and Subsidiaries 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.

(Thousands of dollars)	As Reported Year Ended December 31 2004		Impact of Clawback			As Adjusted Year Ended December 31, 2004 Excluding Clawback			Year Ended December 31 2003
Revenues:
Net premiums written	$	216,436	$	(96,417	)	$	312,853		$	368,637
Net premiums earned	$	214,931	$	(24,892	)	$	239,823		$	248,563
Net investment income		85,557		—			85,557			78,437
Gain on sales of investments		3,995		—			3,995			11,548
Change in fair value of derivative instruments		34,989		(791	)		35,780			774
Other income		2,050		—			2,050			3,639
Total revenues		341,522		(25,683	)		367,205			342,961
Expenses:
Provision for losses		55,898		—			55,898			166,782
Policy acquisition costs		46,343		(9,766	)		56,109			58,323
Other operating expenses		52,327		—			52,327			38,068
Interest expense		12,022		—			12,022			12,913
Total expenses		166,590		(9,766	)		176,356			276,086
Equity in net income of affiliates		1,422		—			1,422			9,969
Pretax income		176,354		(15,917	)		192,271			76,844
Provision for income taxes		42,122		(5,571	)		47,693			13,252
Net income	$	134,232	$	(10,346	)	$	144,578		$	63,592
Loss ratio-excluding Clawback							23.3	%		67.1	%
Expense ratio-excluding Clawback							45.2	%		38.8	%
							68.5	%		105.9	%

- 19 -

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.

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