8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 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) April 20, 2005

Radian Group Inc.

(Exact Name of Registrant as Specified in Its Charter)

Delaware

(State or Other Jurisdiction of Incorporation)

1-11356	23-2691170
(Commission File Number)	(IRS Employer Identification No.)

1601 Market Street, Philadelphia, Pennsylvania	19103
(Address of Principal Executive Offices)	(Zip Code)

215-564-6600

(Registrant’s Telephone Number, Including Area Code)

(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 (see General Instruction A.2. below):

¨ 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 April 20, 2005, Radian Group Inc. issued a press release announcing its financial results for the quarter ended March 31, 2005. 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 April 20, 2005.

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: April 20, 2005	By:	/s/ David L. Coleman
		David L. Coleman
		Vice President, Corporate & Securities Counsel

EX-99.1

Exhibit 99.1

1601 Market Street
Philadelphia, Pennsylvania	News Release
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:	David Cheung – phone: 215 231.1362
	email: david.cheung@radian.biz

Radian Reports First Quarter 2005 Net Income Per Share Increase to $1.24 from $1.22

PHILADELPHIA, Pa., April 20, 2005 — Radian Group Inc. (NYSE: RDN) today reported its results for the quarter ended March 31, 2005. The key financial highlights of the quarter are shown in the following table:

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

First Quarter:

	Quarter Ended March 31, 2005		Quarter Ended March 31, 2004		Percent Change
Net income	$	115.6	$	120.0	(4	)%
Diluted net income per share	$	1.24	$	1.22	2	%
Net premiums written	$	214.8	$	181.4	18	%
Net premiums earned	$	247.0	$	243.4	2	%
	$	306.6	$	332.8	(8	)%
Book value per share (as of 3/31)	$	39.89	$	35.63	12	%
Equity in net income of affiliates	$	51.3	$	32.5	58	%

“Our first quarter performance reflects a more challenging interest rate and credit spread environment,” said Radian’s Chairman and CEO Frank P. Filipps. “But the results reinforce our commitment to diversify our revenue sources and income around core competencies, and to continue to grow our business in a disciplined manner.”

Radian will hold a conference call on Thursday, April 21, 2005, at 9:00 a.m. Eastern time to discuss the company’s first quarter 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.

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 March 31, 2005
Exhibit D:	Segment Information Quarter Ended March 31, 2004
Exhibit E:	Financial Guaranty Insurance Supplemental Information – Quarter Ended March 31, 2005
Exhibit F:	Financial Guaranty Insurance Supplemental Information – Quarter Ended March 31, 2005
Exhibit G:	Mortgage Insurance Supplemental Information: New Insurance Written, Risk Written and Captives
Exhibit H:	Mortgage Insurance Supplemental Information: Insurance in Force and Risk in Force

Exhibit I:	Mortgage Insurance Supplemental Information: Risk in Force by LTV and Policy Year
Exhibit J:	Mortgage Insurance Supplemental Information: Claims and Defaults
Exhibit K:	Mortgage Insurance Supplemental Information: ALT A
Exhibit L:	Financial Services Supplemental Information

Radian Group Inc. and Subsidiaries

Condensed Consolidated Statements of Income

Exhibit A

	Quarter Ended March 31
(In thousands, except per share amounts)	2005			2004
Revenues:
Net premiums written	$	214,840		$	181,428
Net premiums earned	$	247,025		$	243,420
Net investment income		50,862			49,705
Gains on sales of investments		11,526			26,676
Change in fair value of derivative instruments		(8,960	)		4,647
Other income		6,108			8,400
Total revenues		306,561			332,848
Expenses:
Provision for losses		109,500			114,767
Policy acquisition costs		29,356			22,283
Other operating expenses		51,670			53,159
Interest expense		8,958			9,654
Total expenses		199,484			199,863
Equity in net income of affiliates		51,296			32,482
Pretax income		158,373			165,467
Provision for income taxes		42,761			45,457
Net income	$	115,612		$	120,010
Diluted net income per share (1)	$	1.24		$	1.22
(1)    Net income per share reconciliation
Net income	$	115,612		$	120,010
Interest expense on convertible senior debentures (net of tax)		802			804
Net income available to common stockholders	$	116,414		$	120,814
Weighted average shares outstanding (in thousands) (2)		94,258			98,888

(2) In conformity with the current period presentation, 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 $0.04 per share in each of the quarters ended March 31, 2005 and March 31, 2004.

Radian Group Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

Exhibit B

(In thousands except share and per share data)	March 31 2005		December 31 2004			March 31 2004
Assets:
Cash and investments	$	5,245,701	$	5,500,748		$	5,198,066
Investments in affiliates		383,023		393,025			318,398
Deferred policy acquisition costs		199,943		211,928			201,091
Prepaid federal income taxes		481,049		460,149			358,340
Other assets		412,881		434,970			465,198
Total assets	$	6,722,597	$	7,000,820		$	6,541,093
Liabilities and stockholders’ equity:
Unearned premiums	$	735,768	$	770,208		$	656,309
Reserve for losses and loss adjustment expenses		797,671		801,012			786,115
Long-term debt		717,038		717,640			717,461
Deferred federal income taxes		823,305		848,224			723,885
Other liabilities		202,223		174,681			272,406
Total liabilities		3,276,005		3,311,765			3,197,608
Common stock		97		97			96
Additional paid-in capital		819,644		1,106,191			1,187,150
Retained earnings		2,511,469		2,397,626			2,004,673
Accumulated other comprehensive income		115,382		185,141			151,566
Total stockholders’ equity		3,446,592		3,689,055			3,343,485
Total liabilities and stockholders’ equity	$	6,722,597	$	7,000,820		$	6,541,093
Book value per share	$	39.89	$	39.98		$	35.63
Treasury Stock Repurchases (Year-to-Date for Periods Presented)
Total number of shares repurchased		6,143,075		2,817,200	(1)		585,000
Average price paid per share	$	48.55	$	45.38		$	44.11
Total cost of repurchased shares	$	298,229,529	$	127,831,591		$	25,806,445
Maximum Number of shares that may yet be purchased under the Plans or Programs		1,475,850

(1) Represents full year 2004

Radian Group Inc. and Subsidiaries

Segment Information

Quarter Ended March 31,2005

Exhibit C

(Thousands of dollars)	Mortgage Insurance			Financial Services			Financial Guaranty			Total
Revenues:
Net premiums written	$	200,237		$	—		$	14,603		$	214,840
Net premiums earned	$	192,465		$	—		$	54,560		$	247,025
Net investment income		28,793			10			22,059			50,862
Gain on sales of investments		7,119			834			3,573			11,526
Change in fair value of derivative instruments		3,186			(189	)		(11,957	)		(8,960	)
Other income		4,592			1,200			316			6,108
Total revenues		236,155			1,855			68,551			306,561
Expenses:
Provision for losses		97,927			—			11,573			109,500
Policy acquisition costs		14,678			—			14,678			29,356
Other operating expenses		33,669			3,607			14,394			51,670
Interest expense		5,124			735			3,099			8,958
Total expenses		151,398			4,342			43,744			199,484
Equity in net income of affiliates		—			51,296			—			51,296
Pretax income		84,757			48,809			24,807			158,373
Provision for income taxes		22,036			17,084			3,641			42,761
Net income	$	62,721		$	31,725		$	21,166	(1)	$	115,612	(1)
Assets	$	3,972,942		$	395,446		$	2,354,209		$	6,722,597
Deferred policy acquisition costs		70,873			—			129,070			199,943
Reserve for losses and loss adjustment expenses		571,128			—			226,543			797,671
Unearned premiums		149,258			—			586,510			735,768
Stockholders’ equity		1,900,760			298,956			1,246,876			3,446,592
(1)    Reflects a $4.1 million net loss from 1st quarter 2005 recapture of previously ceded business by one of the primary Financial Guaranty insurers:
Net premiums earned	$	(4.6	)
Policy acquisition costs		(1.7	)
Benefit for income taxes		2.2
Net loss	$	(4.1	)

Radian Group Inc. and Subsidiaries

Segment Information

Quarter Ended March 31, 2004

Exhibit D

(Thousands of dollars)	Mortgage Insurance			Financial Services		Financial Guaranty			Total
Revenues:
Net premiums written	$	205,669		$	—	$	(24,241	)	$	181,428
Net premiums earned	$	207,116		$	—	$	36,304		$	243,420
Net investment income		28,513			48		21,144			49,705
Gain/loss on sales of investments		24,122			3,173		(619	)		26,676
Change in fair value of derivative instruments		4,426			49		172			4,647
Other income		5,486			2,874		40			8,400
Total revenues		269,663			6,144		57,041			332,848
Expenses:
Provision for losses		98,123			—		16,644			114,767
Policy acquisition costs		17,142			—		5,141			22,283
Other operating expenses		37,746			3,979		11,434			53,159
Interest expense		5,503			724		3,427			9,654
Total expenses		158,514			4,703		36,646			199,863
Equity in net income of affiliates		—			33,402		(920	)		32,482
Pretax income		111,149			34,843		19,475			165,467
Provision for income taxes		30,647			12,195		2,615			45,457
Net income	$	80,502		$	22,648	$	16,860	(1)	$	120,010	(1)
Assets	$	3,929,574		$	304,921	$	2,306,598		$	6,541,093
Deferred policy acquisition costs		79,092			—		121,999			201,091
Reserve for losses and loss adjustment expenses		521,102			—		265,013			786,115
Unearned premiums		92,228			—		564,081			656,309
Stockholders’ equity		1,905,233			250,212		1,188,040			3,343,485
(1)    Reflects a $10.3 million net loss from 1st quarter 2004 recapture of previously ceded business by one of the primary Financial Guaranty insurers:
Net premiums earned	$	(24.9	)
Policy acquisition costs		9.8
Change in fair value of derivative instruments		(0.8	)
Benefit for income taxes		5.6
Net loss	$	(10.3	)

Radian Group Inc.

Financial Guaranty Insurance Supplemental Information

For the Quarter Ended and as of March 31, 2005

Exhibit E

	Quarter Ended March 31
(Thousands of dollars, except ratios)	2005		2004
Net Premiums Written:
Public finance direct	15,433		8,187
Public finance reinsurance	17,026		20,468
Structured direct	15,057		17,747
Structured reinsurance	8,510		8,812
Trade credit	13,319		16,962
	69,345		72,176
Impact of recapture (1)	(54,742	)	(96,417	)
Net Premiums Written	14,603		(24,241	)
Net Premiums Earned:
Public finance direct	8,963		5,799
Public finance reinsurance	8,513		11,202
Structured direct	18,219		18,446
Structured reinsurance	7,266		9,732
Trade credit	16,138		16,017
	59,099		61,196
Impact of recapture (2)	(4,539	)	(24,892	)
Net Premiums Earned	54,560		36,304
Claims paid:
Trade credit	4,998		6,628
Financial guaranty	12,484		2,637
Conseco	7,969		7,405
Total	25,451		16,670
Impact of recapture (3)	—		11,488
Claims paid	25,451		28,158
Incurred losses:
Trade credit	7,041		8,202
Financial guaranty	4,532		8,442
Total	11,573		16,644
Loss ratio- GAAP Basis	21.2	%	45.8	%
Expense ratio- GAAP Basis	53.3	%	45.7	%
	74.5	%	91.5	%
Refundings included in earned premium	2,441		1,906
(1)    Reflects the impact of the first quarter 2005 and 2004 recapture of previously ceded business by one of the primary Financial Guaranty insurers:
	(Millions of dollars)
Public reinsurance	48.2		88.8
Structured reinsurance	6.5		7.6
(2)    Reflects the impact of the first quarter 2005 and 2004 recapture of previously ceded business by one of the primary Financial Guaranty insurers:
	(Millions of dollars)
Public reinsurance	3.9		23.4
Structured reinsurance	0.6		1.5
(3)    Comprised of claims payments related to the first quarter 2004 recapture of previously ceded business

Radian Group Inc.

Financial Guaranty Insurance Supplemental Information

For the Quarter Ended and as of March 31, 2005

Exhibit F

(Thousands of dollars, except ratios)	March 31 2005	December 31 2004	March 31 2004
Capital and surplus	1,044,603	1,008,423	956,805
Contingency reserve	252,508	251,674	237,737
Qualified statutory capital	1,297,111	1,260,097	1,194,542
Unearned premium reserve	694,379	730,604	653,274
Loss and loss expense reserve	132,843	132,767	195,579
Total policyholders’ reserves	2,124,333	2,123,468	2,043,395
Present value of installment premiums	239,181	252,000	328,600
Reinsurance and soft capital facilities	150,000	245,000	245,000
Total claims paying resources	2,513,514	2,620,468	2,616,995
Net debt service outstanding	94,647,865	101,619,835	94,434,209
Capital leverage ratio (1)	73	81	79
Claims paying leverage ratio (2)	38	39	36
Reserve for losses and LAE
Specific	40,503	52,142	80,557
Conseco	72,374	80,343	103,595
Non-specific	113,666	108,895	80,860
Total	226,543	241,380	265,012

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

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

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter Ended and as of March 31, 2005

Exhibit G

	Quarter Ended March 31
	2005			%		2004			%
Primary New Insurance Written (in millions)
Flow		5,662		93.7	%		8,842		91.5	%
Structured		382		6.3	%		824		8.5	%
Total		6,044		100.0	%		9,666		100.0	%
Prime		4,283		70.9	%		6,271		64.9	%
Alt-A		1,143		18.9	%		2,487		25.7	%
A minus and below		618		10.2	%		908		9.4	%
Total		6,044		100.0	%		9,666		100.0	%
Total Primary New Insurance Written by FICO Score (in millions)
<=619		443		7.3	%		705		7.3	%
620-679		1,950		32.3	%		3,209		33.2	%
680-739		2,144		35.5	%		3,445		35.6	%
>=740		1,507		24.9	%		2,307		23.9	%
Total		6,044		100.0	%		9,666		100.0	%
Percentage of primary new insurance written
Monthlies		93	%				94	%
Refinances		37	%				43	%
95.01% LTV and above		14	%				12	%
ARMs		36	%				34	%
Primary risk written (in millions)
Flow		1,414		96.0	%		2,313		89.5	%
Structured		60		4.0	%		272		10.5	%
Total		1,474		100.0	%		2,585		100.0	%
Pool risk written (in millions)		56					86
Other risk written (in millions)
Seconds		10					52
NIMS and other		599					168
Total other risk written		609					220
Net Premiums Written (in thousands)
Primary and Pool Insurance		176,184					176,278
Seconds, NIMS and other		24,053					29,391
Net Premiums Written		200,237					205,669
Net Premiums Earned (in thousands)
Primary and Pool Insurance		169,021					177,443
Seconds, NIMS and other		23,444					29,673
Net Premiums Earned		192,465					207,116
Captives
Premiums ceded to captives($ millions)	$	23.8				$	19.2
% of total premiums		12.2	%				9.8	%
NIW subject to captives($ millions)	$	2,286				$	4,349
% of primary NIW		37.8	%				45.0	%
IIF subject to captives		33.7	%				30.3	%
RIF subject to captives		35.5	%				32.2	%
Persistency (twelve months ended March 31)		58.4	%				51.5	%

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter Ended and as of March 31, 2005

Exhibit H

	March 31				December 31				March 31
	2005		%		2004		%		2004	%
Primary insurance in force (in millions)
Flow	87,308		79.3	%	89,741		77.8	%	91,403	77.4	%
Structured	22,838		20.7	%	25,574		22.2	%	26,618	22.6	%
Total	110,146		100.0	%	115,315		100.0	%	118,021	100.0	%
Prime	77,048		70.0	%	79,628		69.0	%	81,168	68.8	%
Alt-A	20,377		18.5	%	22,092		19.2	%	23,589	20.0	%
A minus and below	12,721		11.5	%	13,595		11.8	%	13,264	11.2	%
Total	110,146		100.0	%	115,315		100.0	%	118,021	100.0	%
Primary risk in force (in millions)
Flow	21,367		82.6	%	21,991		81.4	%	22,305	82.9	%
Structured	4,496		17.4	%	5,021		18.6	%	4,601	17.1	%
Total	25,863		100.0	%	27,012		100.0	%	26,906	100.0	%
Prime	17,902		69.3	%	18,422		68.2	%	18,332	68.1	%
Alt-A	4,745		18.3	%	5,146		19.1	%	5,340	19.9	%
A minus and below	3,216		12.4	%	3,444		12.7	%	3,234	12.0	%
Total	25,863		100.0	%	27,012		100.0	%	26,906	100.0	%
Total Primary Risk in Force by FICO Score (in millions)
<=619	3,044		11.8	%	3,296		12.2	%	3,267	12.1	%
620-679	8,438		32.7	%	8,850		32.8	%	8,735	32.5	%
680-739	8,758		33.8	%	9,101		33.7	%	8,913	33.1	%
>=740	5,623		21.7	%	5,765		21.3	%	5,991	22.3	%
Total	25,863		100.0	%	27,012		100.0	%	26,906	100.0	%
Percentage of primary risk in force
Monthlies	91	%			92	%
Refinances	37	%			37	%
95.01% LTV and above	13	%			13	%
ARMs	30	%			31	%

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter Ended and as of March 31, 2005

Exhibit I

	March 31			December 31			March 31
(In millions, except ratios)	2005	%		2004	%		2004	%
Total Primary Risk in Force by LTV
95.01% and above	3,416	13.2	%	3,429	12.7	%	3,239	12.0	%
90.01% to 95.00%	9,408	36.4	%	9,822	36.4	%	10,119	37.6	%
85.01% to 90.00%	9,872	38.2	%	10,290	38.1	%	9,942	37.0	%
85.00% and below	3,167	12.2	%	3,471	12.8	%	3,606	13.4	%
Total	25,863	100.0	%	27,012	100.0	%	26,906	100.0	%
Total Primary Risk in Force by Policy Year
2001 and prior	3,688	14.3	%	4,202	15.6	%	6,614	24.6	%
2002	3,012	11.7	%	3,410	12.6	%	5,467	20.3	%
2003	8,103	31.3	%	9,046	33.5	%	12,291	45.7	%
2004	9,627	37.2	%	10,354	38.3	%	2,534	9.4	%
2005	1,433	5.5	%	—	—		—	—
Total	25,863	100.0	%	27,012	100.0	%	26,906	100.0	%
Pool risk in force	2,383			2,384			2,430
GSE Pool risk in force	1,398			1,658			1,423
Other risk in force
Seconds	659			673			731
NIMS and other	1,085			532			475
Total other risk in force	1,744			1,205			1,206
Risk to capital ratio-STAT Basis	9.9:1			10.0:1			10.9:1

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter Ended and as of March 31, 2005

Exhibit J

	Quarter Ended March 31
	2005		2004
Direct claims paid (in thousands)
Prime	31,871		32,059
Alt-A	22,332		20,525
A Minus and below	20,884		22,634
Seconds	10,607		13,399
Total	85,694		88,617
Average claim paid (in thousands)
Prime	24.5		24.5
Alt-A	37.0		42.6
A Minus and below	26.4		27.7
Seconds	25.3		30.1
Total	27.5		29.0
Loss ratio- GAAP Basis	50.9	%	47.4	%
Expense ratio-GAAP Basis	25.1	%	26.5	%
	76.0	%	73.9	%

	March 31 2005		December 31 2004		March 31 2004
Default Statistics
Primary insurance:
Prime
Number of insured loans	591,972		610,480		629,719
Number of loans in default	17,750		19,434		19,240
Percentage of loans in default	3.00	%	3.18	%	3.06	%
Alt A
Number of insured loans	119,008		128,010		137,247
Number of loans in default	7,826		8,339		7,880
Percentage of loans in default	6.58	%	6.51	%	5.74	%
A Minus and below
Number of insured loans	98,906		104,672		103,545
Number of loans in default	12,491		12,678		11,757
Percentage of loans in default	12.63	%	12.11	%	11.35	%
Total
Number of insured loans	809,886		843,162		870,511
Number of loans in default	38,067		40,451		38,877
Percentage of loans in default	4.70	%	4.80	%	4.47	%
Pool insurance:
Number of insured loans	589,934		583,568		565,264
Number of loans in default	6,249		6,749		5,739
Percentage of loans in default	1.06	%	1.16	%	1.02	%

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter Ended and as of March 31, 2005

ALT-A

Exhibit K

	Quarter Ended March 31
(In millions, except ratios)	2005	%		2004	%
Primary New Insurance Written by FICO Score
<=619	6	0.5	%	20	0.8	%
620-659	143	12.5	%	464	18.7	%
660-679	199	17.4	%	444	17.8	%
680-739	520	45.5	%	1,122	45.1	%
>=740	275	24.1	%	437	17.6	%
Total Alt A	1,143	100.0	%	2,487	100.0	%
Primary Risk in Force by FICO Score
<=619	62	1.3	%	94	1.7	%
620-659	982	20.7	%	1,280	24.0	%
660-679	849	17.9	%	904	16.9	%
680-739	2,004	42.2	%	2,152	40.3	%
>=740	848	17.9	%	910	17.1	%
Total Alt A	4,745	100.0	%	5,340	100.0	%
Primary Risk in Force by LTV
95.01% and above	324	6.8	%	512	9.6	%
90.01% to 95.00%	1,683	35.5	%	1,876	35.1	%
85.01% to 90.00%	2,051	43.2	%	2,132	39.9	%
85.00% and below	687	14.5	%	820	15.4	%
Total Alt A	4,745	100.0	%	5,340	100.0	%
Primary Risk in Force by Policy Year
2001 and prior	296	6.2	%	640	12.0	%
2002	551	11.6	%	1,209	22.6	%
2003	1,500	31.6	%	2,785	52.2	%
2004	2,134	45.0	%	706	13.2	%
2005	264	5.6	%	—	—
Total Alt A	4,745	100.0	%	5,340	100.0	%

Radian Group Inc.

Financial Services Supplemental Information

For the Quarter Ended and as of March 31, 2005

Exhibit L

	Quarter Ended March 31
(Thousands of dollars, except ratios)	2005		2004
Investment in Affiliates-Selected Information
C-BASS
Balance, beginning of period	290,073		226,710
Net income for period	28,117		20,876
Dividends received	8,500		12,500
Balance, end of period	309,690		235,086
Sherman
Balance, beginning of period	101,492		65,979
Net income for period	23,179		12,525
Dividends received	51,875		29,050
Other comprehensive income	1,153		(1,237	)
Warrant repurchase	(2,075	)	—
Balance, end of period	71,874		48,217
Portfolio Information:
C-BASS
Servicing portfolio	32,931,000		18,037,000
Total assets (in thousands)	3,617,911		2,551,331
Servicing income	59,794		35,614
Net interest income	41,252		36,952
Total revenues	147,300		104,729
Sherman
Total assets	740,604		480,791
Net revenues	148,625		98,975

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, as well as Radian’s prospects as a whole, 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; the application of existing federal or state consumer lending and insurance laws and regulations, or unfavorable changes in these laws and regulations or the way they are interpreted or applied, including the possibility of private lawsuits or investigations by state insurance departments and state attorneys general alleging that services offered by the mortgage insurance industry, such as captive reinsurance, pool insurance and contract underwriting, are violative of the Real Estate Settlement Procedures Act and/or similar state regulations (particularly in light of public reports that some state insurance departments may review or investigate captive reinsurance arrangements used in the mortgage insurance industry); 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, 2004 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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