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): January 18, 2006

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 January 18, 2006, Radian Group Inc. issued a press release announcing its financial results for the quarter and year ended December 31, 2005. A copy of this press release is furnished as Exhibit 99.1 to this report.

The information included in this report shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”), nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

99.1 Radian Group Inc. Press Release dated January 18, 2006.

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: January 18, 2006	By:	/s/    EDWARD J. HOFFMAN
		Edward J. Hoffman
		Vice President, Securities Counsel

EXHIBIT INDEX

Exhibit No.	Description
99.1	Radian Group Inc. Press Release dated January 18, 2006.

EX-99.1

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:	Corporate Communications – 888 NEWS 520
	email: media@radian.biz

Radian Reports 2005 Net Income of $523 Million

Year-to-year book value per share increases 10%

PHILADELPHIA, Pa., January 18, 2006 — Radian Group Inc. (NYSE: RDN) today reported its results for the twelve months and quarter ended December 31, 2005. The key financial highlights of the twelve months and quarter ended December 31, 2005 are shown in the following tables:

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

Twelve Months:

	Twelve Months Ended December 31, 2005		Twelve Months Ended December 31, 2004		Percent Change
Net income	$	522.9	$	518.7	0.8	%
Diluted net income per share	$	5.91	$	5.33	11	%
Net premiums written	$	1,100.7	$	1,082.5	2	%
Net premiums earned	$	1,018.7	$	1,029.5	(1	%)
Revenues	$	1,298.2	$	1,364.1	(5	%)
Equity in net income of affiliates	$	217.7	$	180.6	21	%

Fourth Quarter:

	Quarter Ended December 31, 2005		Quarter Ended December 31, 2004		Percent Change
Net income	$	104.5	$	156.0	(33	%)
Diluted net income per share	$	1.24	$	1.62	(23	%)
Net premiums written	$	272.7	$	287.3	(5	%)
Net premiums earned	$	262.0	$	262.8	(0.3	%)
Revenues	$	298.6	$	379.1	(21	%)
Book value per share (as of 12/31)	$	44.11	$	39.98	10.3	%
Equity in net income of affiliates	$	55.7	$	50.0	12	%

“Radian has been successful in importing financial guaranty expertise into our mortgage business,” said S.A. Ibrahim, CEO - Radian. “This expertise presents us with opportunities to provide unique and creative solutions to our customers in the acquisition, management and distribution of global credit risk. It also enables us to more effectively manage our own mortgage risk, using tools like Smart Home. We are pleased to report net income of $523 million for the year and $104 million in the fourth quarter, while our book value and diluted net income per share both increased by more than 10% over last year.”

Radian will hold a conference call on Thursday, January 19, 2006, at 9:00 a.m. Eastern time to discuss the company’s 2005 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 > 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 global credit risk management company headquartered in Philadelphia with significant operations in both New York and London. Radian develops innovative financial solutions by applying its core mortgage credit risk expertise and structured finance capabilities to the credit enhancement needs of the capital markets worldwide, primarily through credit insurance products. The company also provides credit enhancement for public finance and other corporate and consumer assets on both a direct and reinsurance basis and holds strategic interests in active credit-based consumer asset businesses. Additional information may be found at www.radian.biz.

Financial Results and Supplemental Information Contents

For trend information on all schedules, refer to Radian’s quarterly financial statistics at http://www.radian.biz/pdf/radian_financial_statistics_3Q05.xls or www.radian.biz > Investors >Financial Information>Radian Group, Inc.>1Q02 through 3Q05.

Exhibit A:	Condensed Consolidated Statements of Income
Exhibit B:	Condensed Consolidated Balance Sheets
Exhibit C:	Segment Information Quarter Ended December 31, 2005
Exhibit D:	Segment Information Quarter Ended December 31, 2004
Exhibit E:	Segment Information Year Ended December 31, 2005
Exhibit F:	Segment Information Year Ended December 31, 2004
Exhibit G:	Financial Guaranty Insurance Supplemental Information – Quarter and Year Ended and as of December 31, 2005
Exhibit H:	Financial Guaranty Insurance Supplemental Information – Quarter and Year Ended and as of December 31, 2005
Exhibit I:	Mortgage Insurance Supplemental Information: New Insurance Written, Risk Written
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, Other Risk in Force
Exhibit L:	Mortgage Insurance Supplemental Information: Claims, Reserves
Exhibit M:	Mortgage Insurance Supplemental Information: Defaults
Exhibit N:	Mortgage Insurance Supplemental Information: Net Premiums, Captives
Exhibit O:	Mortgage Insurance Supplemental Information: Alt-A
Exhibit P:	Mortgage Insurance Supplemental Information: Affiliates

Radian Group Inc. and Subsidiaries

Condensed Consolidated Statements of Income

Exhibit A

	Quarter Ended December 31					Year Ended December 31
(Thousands of dollars, except per-share data)	2005			2004		2005		2004
Revenues:
Net premiums written	$	272,721		$	287,260	$	1,100,687	$	1,082,487
Net premiums earned	$	262,031		$	262,767	$	1,018,670	$	1,029,484
Net investment income		54,303			52,679		208,422		204,349
Gains on sales of investments		11,195			9,843		36,638		50,799
Change in fair value of derivative instruments		(36,131	)		44,559		9,170		47,135
Other income		7,243			9,290		25,251		32,286
Total revenues		298,641			379,138		1,298,151		1,364,053
Expenses:
Provision for losses		104,865			111,382		390,633		456,834
Policy acquisition costs		27,496			32,272		115,851		121,830
Other operating expenses		62,958			52,445		225,977		205,687
Interest expense		11,940			8,646		43,043		34,660
Total expenses		207,259			204,745		775,504		819,011
Equity in net income of affiliates		55,746			49,970		217,692		180,550
Pretax income		147,128			224,363		740,339		725,592
Provision for income taxes		42,667			68,394		217,485		206,939
Net income	$	104,461		$	155,969	$	522,854	$	518,653
Diluted net income per share (1)	$	1.24		$	1.62	$	5.91	$	5.33
(1)    Net income per share reconciliation
Net income	$	104,461		$	155,969	$	522,854	$	518,653
Interest expense on convertible senior debentures (net of tax)		—			804		1,871		3,218
Net income available to common stockholders	$	104,461		$	156,773	$	524,725	$	521,871
Weighted average shares outstanding (in thousands)
Average common shares outstanding		83,028			92,000		85,637		93,062
Increase in shares-potential exercise of options-diluted basis		889			1,022		894		1,036
Increase in shares-contingently convertible debt (2)		—			3,810		2,215		3,810
Weighted average shares outstanding (in thousands)		83,917			96,832		88,746		97,908

(2) All periods include the impact of shares underlying convertible debt that was redeemed on August 1, 2005. The impact on diluted net income per share of including these shares in the calculation was a reduction of $0.06 per share for the quarter ended December 31, 2004, and $0.13 and $0.18 per share for the years ended December 31, 2005 and December 31, 2004.

For Trend Information, refer to our Quarterly Financial Statistics on Radian’s (RDN) website.

Page 1

Radian Group Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

Exhibit B

(Thousands of dollars, except share and per-share data)	December 31 2005			December 31 2004
Assets:
Cash and investments	$	5,521,561		$	5,500,748
Investments in affiliates		446,151			393,025
Deferred policy acquisition costs		208,325			211,928
Prepaid federal income taxes		585,514			460,149
Other assets		469,059			434,970
Total assets	$	7,230,610		$	7,000,820
Liabilities and stockholders’ equity:
Unearned premiums	$	849,360		$	770,208
Reserve for losses and loss adjustment expenses		801,002			801,012
Long-term debt		747,466			717,640
Deferred federal income taxes		961,993			848,224
Other liabilities		207,909			174,681
Total liabilities		3,567,730			3,311,765
Common stock		97			97
Additional paid-in capital		629,019			1,106,191
Retained earnings		2,913,649			2,397,626
Accumulated other comprehensive income		120,115			185,141
Total common stockholders’ equity		3,662,880			3,689,055
Total liabilities and stockholders’ equity	$	7,230,610		$	7,000,820
Book value per share	$	44.11		$	39.98
Treasury Stock Repurchases (Year-to-Date for Periods Presented)
Total number of shares repurchased		10,767,800	(1)		2,817,200
Average price paid per share	$	49.58		$	45.38
Total cost of repurchased shares	$	533,888,969		$	127,831,591

(1) 0.4 million shares were repurchased in the 4th quarter of 2005 at a cost of $24.8 million, under the new repurchase program.

Page 2

Radian Group Inc. and Subsidiaries

Segment Information

Quarter Ended December 31, 2005

Exhibit C

(Thousands of dollars)	Mortgage Insurance			Financial Services		Financial Guaranty			Total
Revenues:
Net premiums written	$	205,334		$	—	$	67,387		$	272,721
Net premiums earned	$	209,866		$	—	$	52,165		$	262,031
Net investment income		31,309			32		22,962			54,303
Gains on sales of investments		9,692			215		1,288			11,195
Change in fair value of derivative instruments		(2,831	)		24		(33,324	)		(36,131	)
Other income		4,384			2,790		69			7,243
Total revenues		252,420			3,061		43,160			298,641
Expenses:
Provision for losses		99,413			—		5,452			104,865
Policy acquisition costs		14,226			—		13,270			27,496
Other operating expenses		45,286			1,161		16,511			62,958
Interest expense		6,650			1,039		4,251			11,940
Total expenses		165,575			2,200		39,484			207,259
Equity in net income of affiliates		—			55,746		—			55,746
Pretax income		86,845			56,607		3,676			147,128
Provision for income taxes		25,143			19,812		(2,288	)		42,667
Net income	$	61,702		$	36,795	$	5,964		$	104,461
Assets	$	4,367,804		$	457,572	$	2,405,234		$	7,230,610
Deferred policy acquisition costs		67,211			—		141,114			208,325
Reserve for losses and loss adjustment expenses		596,210			—		204,792			801,002
Unearned premiums		212,875			—		636,485			849,360
Stockholders’ equity		2,080,445			331,039		1,251,396			3,662,880

Page 3

Radian Group Inc. and Subsidiaries

Segment Information

Quarter Ended December 31, 2004

Exhibit D

(Thousands of dollars)	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
Gains (losses) 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
Income tax provision		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

Page 4

Radian Group Inc. and Subsidiaries

Segment Information

Year Ended December 31, 2005

Exhibit E

(Thousands of dollars)	Mortgage Insurance			Financial Services			Financial Guaranty			Total
Revenues:
Net premiums written	$	877,632		$	—		$	223,055		$	1,100,687
Net premiums earned	$	806,897		$	—		$	211,773		$	1,018,670
Net investment income		118,325			120			89,977			208,422
Gains (losses) on sales of investments		27,649			(1,748	)		10,737			36,638
Change in fair value of derivative instruments		4,110			(185	)		5,245			9,170
Other income		19,008			5,304			939			25,251
Total revenues		975,989			3,491			318,671			1,298,151
Expenses:
Provision for losses		359,116			—			31,517			390,633
Policy acquisition costs		62,852			—			52,999			115,851
Other operating expenses		152,731			8,268			64,978			225,977
Interest expense		24,191			3,747			15,105			43,043
Total expenses		598,890			12,015			164,599			775,504
Equity in net income of affiliates		—			218,053			(361	)		217,692
Pretax income		377,099			209,529			153,711			740,339
Provision for income taxes		108,493			73,335			35,657			217,485
Net income	$	268,606		$	136,194		$	118,054	(1)	$	522,854	(1)
(1)      Reflects a $4.1 million net loss from the 1st quarter 2005 recapture of previously ceded business by one of the primary Financial Guaranty insurers (in millions):
	Incr/(Decr)
Net premiums earned	$	(4.6	)
Policy acquisition costs		1.7
Provision for income taxes		(2.2	)
Net loss	$	(4.1	)

Page 5

Radian Group Inc. and Subsidiaries

Segment Information

Year Ended December 31, 2004

Exhibit F

(Thousands of dollars)	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
Gains 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	(1)	$	518,653	(1)
(1)      Reflects a $10.3 million net loss from the 1st quarter 2004 recapture of previously ceded business by one of the primary Financial Guaranty insurers (in millions):
	Incr/(Decr)
Net premiums earned	$	(24.9	)
Policy acquisition costs		(9.8	)
Change in fair value of derivative instruments		(0.8	)
Provision for income taxes		(5.6	)
Net loss	$	(10.3	)

Page 6

Radian Group Inc.

Financial Guaranty Insurance Supplemental Information

For the Quarter and Year Ended and as of December 31, 2005

Exhibit G

	Quarter Ended December 31				Year Ended December 31
(Thousands of dollars, except ratios)	2005		2004		2005		2004
Net Premiums Written:
Public finance direct	21,832		16,408		73,117		52,279
Public finance reinsurance	16,443		18,575		77,797		74,777
Structured direct	18,923		17,897		71,211		94,423
Structured reinsurance	4,294		8,299		20,649		32,112
Trade credit	5,895		11,243		35,023		59,262
	67,387		72,422		277,797		312,853
Impact of recapture (1)	—		—		(54,742	)	(96,417	)
Net Premiums Written	67,387		72,422		223,055		216,436
Net Premiums Earned:
Public finance direct	7,866		7,127		32,533		26,643
Public finance reinsurance	8,752		10,841		34,413		41,651
Structured direct	22,359		20,750		79,617		78,292
Structured reinsurance	4,877		8,053		20,440		33,001
Trade credit	8,311		13,359		49,309		60,236
	52,165		60,130		216,312		239,823
Impact of recapture (2)	—		—		(4,539	)	(24,892	)
Net Premiums Earned	52,165		60,130		211,773		214,931
Claims paid:
Trade credit	6,623		5,607		23,401		24,085
Financial guaranty	(1,224	)	2,597		11,708		27,237
Conseco	6,181		7,350		29,574		30,657
Total	11,580		15,554		64,683		81,979
Impact of recapture (3)	—		—		—		11,488
Claims paid	11,580		15,554		64,683		93,467
Incurred losses:
Trade credit	1,586		5,045		16,019		28,586
Financial guaranty	3,866		5,563		15,498		27,312
Total	5,452		10,608		31,517		55,898
Loss ratio- GAAP Basis	10.5	%	17.6	%	14.9	%	26.0	%
Expense ratio- GAAP Basis	57.1	%	48.5	%	55.7	%	45.9	%
	67.6	%	66.1	%	70.6	%	71.9	%
Refundings included in earned premium	3,282		888		12,796		5,055

(1) Reflects the impact on net premiums written of the first quarter 2005 and 2004 recapture of previously ceded business by one of the primary Financial Guaranty insurers:

	(Thousands of dollars)
Public reinsurance	48,238	88,819
Structured reinsurance	6,504	7,596

(2) Reflects the impact on net premiums earned of the first quarter 2005 and 2004 recapture of previously ceded business by one of the primary Financial Guaranty insurers:

	(Thousands of dollars)
Public reinsurance	3,870	23,418
Structured reinsurance	669	1,476

(3) Comprised of claims payments related to the first quarter 2004 recapture of previously ceded business.

Page 7

Radian Group Inc.

Financial Guaranty Insurance Supplemental Information

For the Quarter and Year Ended and as of December 31, 2005

Exhibit H

(Thousands of dollars, except ratios)	December 31 2005		December 31 2004
Capital and surplus	1,004,505		1,008,423
Contingency reserve	271,907		251,674
Qualified statutory capital	1,276,412		1,260,097
Unearned premium reserve	751,656		730,604
Loss and loss expense reserve	108,576		132,767
Total policyholders’ reserves	2,136,644		2,123,468
Present value of installment premiums	302,953		252,000
Reinsurance and soft capital facilities	150,000		245,000
Total claims paying resources	2,589,597		2,620,468
Net debt service outstanding	110,344,057		101,619,835
Capital leverage ratio (1)	86		81
Claims paying leverage ratio (2)	43		39
Net par outstanding by product:
Public finance direct	14,043,786		12,250,395
Public finance reinsurance	33,047,512		34,121,358
Structured direct	24,608,489		14,241,265
Structured reinsurance	4,952,146		6,107,040
Total	76,651,933		66,720,058
Reinsurance business net par outstanding:
Treaty	58	%	65	%
Facultative	42	%	35	%
Reserve for losses and LAE
Specific	29,311		52,142
Conseco	50,770		80,343
Non-specific	124,712		108,895
Total	204,793		241,380

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

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

Page 8

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter and Year Ended and as of December 31, 2005

Exhibit I

	Quarter Ended December 31										Year Ended December 31
	2005			%		2004			%		2005			%		2004			%
Primary New Insurance Written ($ millions)
Flow	$	6,740		61.7	%	$	7,966		68.1	%	$	25,596		60.1	%	$	36,358		81.1	%
Structured		4,188		38.3	%		3,736		31.9	%		16,996		39.9	%		8,462		18.9	%
Total Primary	$	10,928		100.0	%	$	11,702		100.0	%	$	42,592		100.0	%	$	44,820		100.0	%
Flow
Prime	$	5,025		74.6	%	$	5,352		67.2	%	$	19,177		74.9	%	$	24,765		68.1	%
Alt-A		1,159		17.2	%		1,888		23.7	%		4,093		16.0	%		8,429		23.2	%
A minus and below		556		8.2	%		726		9.1	%		2,326		9.1	%		3,164		8.7	%
Total Flow	$	6,740		100.0	%	$	7,966		100.0	%	$	25,596		100.0	%	$	36,358		100.0	%
Structured
Prime	$	1,676		40.0	%	$	1,577		42.2	%	$	5,657		33.3	%	$	3,626		42.9	%
Alt-A		1,707		40.8	%		766		20.5	%		7,147		42.0	%		1,748		20.7	%
A minus and below		805		19.2	%		1,393		37.3	%		4,192		24.7	%		3,088		36.4	%
Total Structured	$	4,188		100.0	%	$	3,736		100.0	%	$	16,996		100.0	%	$	8,462		100.0	%
Total
Prime	$	6,701		61.3	%	$	6,929		59.2	%	$	24,834		58.3	%	$	28,391		63.3	%
Alt-A		2,866		26.2	%		2,654		22.7	%		11,240		26.4	%		10,177		22.7	%
A minus and below		1,361		12.5	%		2,119		18.1	%		6,518		15.3	%		6,252		14.0	%
Total Primary	$	10,928		100.0	%	$	11,702		100.0	%	$	42,592		100.0	%	$	44,820		100.0	%
Total Primary New Insurance Written by FICO Score ($ millions)
Flow
<=619	$	327		4.8	%	$	530		6.6	%	$	1,489		5.8	%	$	2,216		6.1	%
620-679		2,000		29.7	%		2,613		32.8	%		7,680		30.0	%		11,678		32.1	%
680-739		2,505		37.2	%		2,897		36.4	%		9,322		36.4	%		13,556		37.3	%
>=740		1,908		28.3	%		1,926		24.2	%		7,105		27.8	%		8,908		24.5	%
Total Flow	$	6,740		100.0	%	$	7,966		100.0	%	$	25,596		100.0	%	$	36,358		100.0	%
Structured
<=619	$	808		19.3	%	$	1,392		37.3	%	$	4,207		24.8	%	$	3,087		36.5	%
620-679		1,369		32.7	%		1,435		38.4	%		5,302		31.2	%		3,094		36.6	%
680-739		1,337		31.9	%		661		17.7	%		4,833		28.4	%		1,612		19.0	%
>=740		674		16.1	%		248		6.6	%		2,654		15.6	%		669		7.9	%
Total Structured	$	4,188		100.0	%	$	3,736		100.0	%	$	16,996		100.0	%	$	8,462		100.0	%
Total
<=619	$	1,135		10.4	%	$	1,922		16.4	%	$	5,696		13.4	%	$	5,303		11.8	%
620-679		3,369		30.8	%		4,048		34.6	%		12,982		30.5	%	$	14,772		33.0	%
680-739		3,842		35.2	%		3,558		30.4	%		14,155		33.2	%		15,168		33.8	%
>=740		2,582		23.6	%		2,174		18.6	%		9,759		22.9	%		9,577		21.4	%
Total Primary	$	10,928		100.0	%	$	11,702		100.0	%	$	42,592		100.0	%	$	44,820		100.0	%
Percentage of primary new insurance written
Monthlies		94	%				95	%				90	%				93	%
Refinances		37	%				45	%				41	%				40	%
95.01% LTV and above		10	%				9	%				10	%				11	%
ARMs
Less than 5 years		31	%				40	%				35	%				32	%
5 years and longer		17	%				11	%				16	%				10	%
Primary risk written ($ millions)
Flow	$	1,702		70.0	%	$	1,983		66.3	%	$	6,384		68.3	%	$	9,179		78.9	%
Structured		729		30.0	%		1,007		33.7	%		2,961		31.7	%		2,455		21.1	%
Total Primary	$	2,431		100.0	%	$	2,990		100.0	%	$	9,345		100.0	%	$	11,634		100.0	%
Pool risk written ($ millions)	$	102				$	65				$	569				$	304
Other risk written ($ millions)
Seconds
1st loss	$	40				$	5				$	97				$	80
2nd loss		247					17					571					74
NIMs		33					9					99					100
International
1st loss-Hong Kong primary mortgage insurance		27					—					271					—
2nd loss		2					11					9					24
Credit-default swaps		7,303					—					7,303					149
Other																	—
Domestic credit-default swaps		30					—					180					—
Financial guaranty wrap		—					—					511					—
Total other risk written	$	7,682				$	42				$	9,041				$	427

Page 9

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter and Year and as of December 31, 2005

Exhibit J

	December 31					December 31
	2005			%		2004			%
Primary insurance in force ($ millions)
Flow	$	82,700		75.4	%	$	89,741		77.8	%
Structured		26,984		24.6	%		25,574		22.2	%
Total Primary	$	109,684		100.0	%	$	115,315		100.0	%
Prime	$	74,940		68.3	%	$	79,628		69.0	%
Alt-A		21,223		19.4	%		22,092		19.2	%
A minus and below		13,521		12.3	%		13,595		11.8	%
Total Primary	$	109,684		100.0	%	$	115,315		100.0	%
Primary risk in force ($ millions)
Flow	$	20,330		79.0	%	$	21,991		81.4	%
Structured		5,399		21.0	%		5,021		18.6	%
Total Primary	$	25,729		100.0	%	$	27,012		100.0	%
Flow
Prime	$	15,630		76.9	%	$	16,317		74.2	%
Alt-A		3,131		15.4	%		3,972		18.1	%
A minus and below		1,569		7.7	%		1,702		7.7	%
Total Flow	$	20,330		100.0	%	$	21,991		100.0	%
Structured
Prime	$	2,208		40.9	%	$	2,105		41.9	%
Alt-A		1,358		25.1	%		1,174		23.4	%
A minus and below		1,833		34.0	%		1,742		34.7	%
Total Structured	$	5,399		100.0	%	$	5,021		100.0	%
Total
Prime	$	17,838		69.3	%	$	18,422		68.2	%
Alt-A		4,489		17.5	%		5,146		19.1	%
A minus and below		3,402		13.2	%		3,444		12.7	%
Total Primary	$	25,729		100.0	%	$	27,012		100.0	%
Total Primary Risk in Force by FICO Score ($ millions)
Flow
<=619	$	1,321		6.5	%	$	1,546		7.0	%
620-679		6,352		31.2	%		7,045		32.0	%
680-739		7,459		36.7	%		8,109		36.9	%
>=740		5,198		25.6	%		5,291		24.1	%
Total Flow	$	20,330		100.0	%	$	21,991		100.0	%
Structured
<=619	$	1,833		34.0	%	$	1,750		34.9	%
620-679		1,957		36.2	%		1,805		35.9	%
680-739		1,111		20.6	%		992		19.8	%
>=740		498		9.2	%		474		9.4	%
Total Structured	$	5,399		100.0	%	$	5,021		100.0	%
Total
<=619	$	3,154		12.3	%	$	3,296		12.2	%
620-679		8,309		32.3	%		8,850		32.8	%
680-739		8,570		33.3	%		9,101		33.7	%
>=740		5,696		22.1	%		5,765		21.3	%
Total Primary	$	25,729		100.0	%	$	27,012		100.0	%
Percentage of primary risk in force
Monthlies		91	%				92	%
Refinances		37	%				37	%
95.01% LTV and above		14	%				13	%
ARMs
Less than 5 years		23	%				23	%
5 years and longer		9	%				8	%
Pool risk in force ($ millions)
Prime	$	2,098		77.4	%	$	1,946		81.6	%
Alt-A		272		10.0	%		263		11.0	%
A minus and below		341		12.6	%		175		7.4	%
Total	$	2,711		100.0	%	$	2,384		100.0	%

Page 10

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter and Year Ended and as of December 31, 2005

Exhibit K

	December 31				December 31
	2005		%		2004		%
Total Primary Risk in Force by LTV ($ millions)
95.01% and above	$	3,599	14.0	%	$	3,429	12.7	%
90.01% to 95.00%		8,616	33.5	%		9,822	36.4	%
85.01% to 90.00%		9,551	37.1	%		10,290	38.1	%
85.00% and below		3,963	15.4	%		3,471	12.8	%
Total	$	25,729	100.0	%	$	27,012	100.0	%
Total Primary Risk in Force by Policy Year ($ millions)
2001 and prior	$	2,669	10.4	%	$	4,202	15.6	%
2002		1,989	7.7	%		3,410	12.6	%
2003		5,511	21.4	%		9,046	33.5	%
2004		7,091	27.6	%		10,354	38.3	%
2005		8,469	32.9	%		—	—
Total	$	25,729	100.0	%	$	27,012	100.0	%
Total Pool Risk in Force by Policy Year ($ millions)
2001 and prior	$	1,579	58.3	%	$	1,659	69.6	%
2002		85	3.1	%		89	3.7	%
2003		172	6.4	%		331	13.9	%
2004		294	10.8	%		305	12.8	%
2005		581	21.4	%		—	—
Total Pool risk in Force	$	2,711	100.0	%	$	2,384	100.0	%
Other risk in force ($ millions)
Seconds
1st loss	$	591			$	598
2nd loss		638				75
NIMs		261				318
International
1st loss-Hong Kong primary mortgage insurance		271				—
2nd loss		29				25
Credit-default swaps		7,469				189
Other						—
Domestic credit-default swaps		180				—
Financial guaranty wrap		270				—
Total other risk in force	$	9,709			$	1,205
Risk to capital ratio-STAT Basis		11.6:1				10.0:1

Page 11

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter and Year Ended and as of December 31, 2005

Exhibit L

	Quarter Ended December 31						Year Ended December 31
	2005			2004			2005			2004
Direct claims paid ($ thousands)
Prime	$	33,156		$	35,139		$	121,297		$	140,822
Alt-A		19,968			21,099			79,371			85,124
A Minus and below		23,762			23,772			85,980			95,438
Seconds		7,044			9,835			33,699			42,969
Total	$	83,930		$	89,845		$	320,347		$	364,353
Average claim paid ($ thousands)
Prime	$	25.7		$	25.2		$	24.1		$	24.1
Alt-A		38.4			37.4			36.5			38.6
A Minus and below		28.1			27.8			27.0			27.1
Seconds		20.5			26.1			22.0			27.0
Total	$	28.0		$	28.2		$	26.9		$	27.7
Loss ratio -GAAP Basis		47.4	%		49.7	%		44.5	%		49.2	%
Expense ratio - GAAP Basis		28.4	%		26.6	%		26.7	%		26.6	%
		75.8	%		76.3	%		71.2	%		75.8	%
Reserve for losses by category ($ thousands):
Primary insurance:
Prime	$	179,152		$	165,936
Alt-A		137,430			160,815
A minus and below		190,312			147,604
Pool Insurance		44,135			43,023
Seconds		35,876			37,547
NIMs/Other		9,305			4,707
Total	$	596,210		$	559,632

Page 12

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter and Year Ended and as of December 31, 2005

Exhibit M

	December 31 2005		December 31 2004
Default Statistics
Primary insurance:
Flow
Prime
Number of insured loans	508,117		553,688
Number of loans in default	18,045		17,477
Percentage of loans in default	3.55	%	3.16	%
Alt A
Number of insured loans	67,339		83,264
Number of loans in default	4,946		6,006
Percentage of loans in default	7.34	%	7.21	%
A Minus and below
Number of insured loans	54,066		58,635
Number of loans in default	7,543		6,755
Percentage of loans in default	13.95	%	11.52	%
Total Flow
Number of insured loans	629,522		695,587
Number of loans in default	30,534		30,238
Percentage of loans in default	4.85	%	4.35	%
Structured
Prime
Number of insured loans	59,457		56,792
Number of loans in default	2,640		1,957
Percentage of loans in default	4.44	%	3.45	%
Alt A
Number of insured loans	50,997		44,746
Number of loans in default	2,564		2,333
Percentage of loans in default	5.03	%	5.21	%
A Minus and below
Number of insured loans	47,348		46,037
Number of loans in default	8,472		5,923
Percentage of loans in default	17.89	%	12.87	%
Total Structured
Number of insured loans	157,802		147,575
Number of loans in default	13,676		10,213
Percentage of loans in default	8.67	%	6.92	%
Total Primary Insurance
Prime
Number of insured loans	567,574		610,480
Number of loans in default	20,685		19,434
Percentage of loans in default	3.64	%	3.18	%
Alt A
Number of insured loans	118,336		128,010
Number of loans in default	7,510		8,339
Percentage of loans in default	6.35	%	6.51	%
A Minus and below
Number of insured loans	101,414		104,672
Number of loans in default	16,015		12,678
Percentage of loans in default	15.79	%	12.11	%
Total Primary Insurance
Number of insured loans	787,324		843,162
Number of loans in default	44,210	(1)	40,451
Percentage of loans in default	5.62	%	4.80	%
Pool insurance:
Number of insured loans	651,051		583,568
Number of loans in default	10,194	(2)	6,749
Percentage of loans in default	1.57	%	1.16	%

(1) Includes approximately 300 defaults where we are in a second-loss position.

(2) Includes approximately 2,400 defaults where we are in a second-loss position.

Page 13

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter and Year Ended and as of December 31, 2005

Exhibit N

	Quarter Ended December 31							Year Ended December 31
	2005			2004			%	2005			2004			%
Net Premiums Written ($ thousands)
Primary and Pool Insurance	$	179,658		$	188,442			$	746,483		$	751,604
Seconds		14,102			14,169				61,803			62,480
NIMs		8,170			11,622				40,318			48,421
International		2,901			605				25,612			3,546
Credit-default swaps		408			—				3,132			—
Financial guaranty wrap		95			—				284			—
Net Premiums Written	$	205,334		$	214,838			$	877,632		$	866,051
Net Premiums Earned ($ thousands)
Primary and Pool Insurance	$	184,985		$	174,536			$	710,361		$	688,875
Seconds		15,447			14,686				52,220			64,777
NIMs		7,513			12,945				39,877			59,555
International		1,228			470				3,338			1,346
Credit-default swaps		598			—				817			—
Financial guaranty wrap		95			—				284			—
Net Premiums Earned	$	209,866		$	202,637			$	806,897		$	814,553
Captives
Premiums ceded to captives($ millions)	$	25.3		$	22.8			$	92.9		$	87.3
% of total premiums		12.0	%		11.6	%			11.5	%		11.3	%
NIW subject to captives($ millions)	$	4,223		$	3,991			$	12,221		$	17,777
% of primary NIW		38.6	%		34.1	%			28.7	%		39.7	%
IIF subject to captives		38.6	%		33.2	%
RIF subject to captives		35.6	%		34.9	%
Persistency (twelve months ended December 31)		58.2	%		58.8	%

Page 14

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter and Year Ended and as of December 31, 2005

ALT-A

Exhibit O

	Quarter Ended December 31								Year Ended December 31
($ millions)	2005		%		2004		%		2005		%		2004		%
Primary New Insurance Written by FICO Score
<=619	$	3	0.1	%	$	12	0.4	%	$	34	0.3	%	$	93	0.9	%
620-659		440	15.4	%		599	22.7	%		1,903	16.9	%		1,854	18.3	%
660-679		407	14.2	%		499	18.9	%		1,513	13.5	%		1,855	18.2	%
680-739		1,302	45.4	%		1,071	40.4	%		4,990	44.4	%		4,475	44.0	%
>=740		714	24.9	%		473	17.6	%		2,800	24.9	%		1,900	18.6	%
Total	$	2,866	100.0	%	$	2,654	100.0	%	$	11,240	100.0	%	$	10,177	100.0	%
Primary Risk in Force by FICO Score
<=619	$	44	1.0	%	$	70	1.4	%
620-659		936	20.9	%		1,110	21.6	%
660-679		767	17.0	%		919	17.8	%
680-739		1,903	42.4	%		2,157	41.9	%
>=740		839	18.7	%		890	17.3	%
Total	$	4,489	100.0	%	$	5,146	100.0	%
Primary Risk in Force by LTV
95.01% and above	$	190	4.2	%	$	370	7.2	%
90.01% to 95.00%		1,425	31.7	%		1,816	35.3	%
85.01% to 90.00%		1,938	43.2	%		2,191	42.6	%
85.00% and below		936	20.9	%		769	14.9	%
Total	$	4,489	100.0	%	$	5,146	100.0	%
Primary Risk in Force by Policy Year
2001 and prior	$	192	4.3	%	$	372	7.2	%
2002		328	7.3	%		653	12.7	%
2003		874	19.5	%		1,758	34.2	%
2004		1,432	31.9	%		2,363	45.9	%
2005		1,663	37.0	%		—	—
Total	$	4,489	100.0	%	$	5,146	100.0	%

Page 15

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter and Year Ended and as of December 31, 2005

Exhibit P

	Quarter Ended December 31				Year Ended December 31
($ thousands)	2005		2004		2005			2004
Investment in Affiliates-Selected Information
C-BASS
Balance, beginning of period	$	343,344	$	266,854	$	290,073		$	226,710
Net income for period		27,520		23,219		107,791			95,863
Dividends received		6,500		—		33,500			32,500
Balance, end of period	$	364,364	$	290,073	$	364,364		$	290,073
Sherman
Balance, beginning of period	$	53,313	$	73,593	$	101,492		$	65,979
Net income for period		28,225		26,729		110,261			83,265
Dividends received		—		—		110,661			49,800
Other comprehensive income		215		1,170		1,683			2,048
Sale of ownership interest		—		—		(18,947	)		—
Warrant repurchase		—		—		(2,075	)		—
Balance, end of period	$	81,753	$	101,492	$	81,753		$	101,492
Portfolio Information:
C-BASS
Servicing portfolio	$	43,058,000	$	33,680,000
Total assets		7,694,294		4,353,652
Servicing income		65,415		47,439	$	250,838		$	160,397
Net interest income		53,878		40,875		190,716			150,082
Total revenues		168,749		125,058		624,825			479,232
Sherman
Total assets	$	989,341	$	486,193
Net revenues	$	226,844	$	127,654	$	799,195		$	480,968

Radian owns a 46% interest in C-BASS and a 34.58% interest in Sherman.

Page 16

All statements made in this press release that address 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, population trends and changes in household formation patterns, changes in unemployment rates, 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 a customer 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 Radian’s credit ratings or the insurance financial-strength ratings assigned by the major ratings agencies to Radian’s operating subsidiaries; heightened competition from other insurance providers and from alternative products to private mortgage insurance and financial guaranty insurance; changes in the charters or business practices of Fannie Mae and Freddie Mac; the application of existing federal or state consumer lending, insurance and other applicable laws and regulations, or unfavorable changes in these laws and regulations or the way they are interpreted or applied, including: (i) 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), or (ii) legislative and regulatory changes affecting demand for private mortgage insurance or financial guaranty insurance; the possibility that we may fail to estimate accurately the likelihood, magnitude and timing of losses in connection with establishing loss reserves for our mortgage insurance or financial guaranty businesses or to estimate accurately the fair value amounts of derivative financial guaranty contracts in determining gains and losses on these contracts; changes in accounting guidance from the SEC or the Financial Accounting Standards Board regarding income recognition and the treatment of loss reserves in the mortgage insurance or financial guaranty industries; changes in claims against mortgage insurance products resulting from the aging of Radian’s mortgage insurance policies; vulnerability to the performance of Radian’s strategic investments; changes in the availability of affordable or adequate reinsurance for our non-prime risk; and international expansion of our mortgage insurance and financial guaranty businesses into new markets and risks associated with our international business activities. 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. We caution you not to place undue reliance on these forward-looking statements, which are current only as of the date of this press release. 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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