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): April 19, 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 April 19, 2006, Radian Group Inc. issued a press release announcing its financial results for the quarter ended March 31, 2006. 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 April 19, 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: April 19, 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 April 19, 2006.

EX-99.1

Exhibit 99.1

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

Contact:
For investors:	Mona Zeehandelaar – phone: 215 231.1674
	email: mona.zeehandelaar@radian.biz
For the media:	Corporate Communications – 888 NEWS 520
	email: media@radian.biz

Radian Reports Increase in First Quarter Net Income to Record $163.7 Million

Continued Growth Achieved in Mortgage Insurance and Financial Guaranty Sectors, and in Creating Opportunities at MI-FG Intersection

PHILADELPHIA, Pa., April 19, 2006 — Radian Group Inc. (NYSE: RDN) today reported strong results for the quarter ended March 31, 2006, as net income rose sharply to record levels; diluted net income per share rose to $1.96; book value per share rose 13.9% and return on equity exceeded the company’s targets.

“The first quarter was successful for us in several respects,” said S.A. Ibrahim, Chief Executive Officer. “In reaching a record $163.7 million, our net income reflected important positive trends both in mortgage insurance and financial guaranty, our two main businesses, as well as another strong quarter for C-BASS and Sherman. We continue to leverage our financial guaranty expertise within our mortgage insurance business to benefit customers that are looking for MI as well as alternative credit risk solutions. This effort will allow us to more effectively manage and distribute our own credit risk exposure.”

The key financial highlights of the quarter ended March 31, 2006, are as follows:

-1-

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

First quarter

	Quarter ended March 31, 2006		Quarter ended March 31, 2005		Percent Change
Revenue	$	353.7	$	306.6	15.4	%
Net income	$	163.7	$	115.6	41.6	%
Diluted net income per share	$	1.96	$	1.24	58.1	%
Net premiums written	$	279.6	$	214.8	30.2	%
Net premiums earned	$	253.7	$	247.0	2.7	%
Equity in net income of affiliates	$	58.3	$	51.3	13.6	%
Book value per share	$	45.43	$	39.89	13.9	%

Radian will hold a conference call on Thursday, April 20, 2006, at 9:00 a.m. Eastern time to discuss the company’s first quarter 2006 results. This call will be broadcast live over the Internet at http://www.ir.radian.biz/phoenix.zhtml?c=112301&p=irol-audioarchives or at http://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 Investors > Webcasts, Presentations and Transcripts or by clicking on http://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.

-2-

Financial Results and Supplemental Information Contents

For trend information on all schedules, refer to Radian’s quarterly financial statistics at http://www.radian.biz/investors/financial/corporate.aspx.

Exhibit A:	Condensed Consolidated Statements of Income
Exhibit B:	Condensed Consolidated Balance Sheets
Exhibit C:	Segment Information Quarter Ended March 31, 2006
Exhibit D:	Segment Information Quarter Ended March 31, 2005
Exhibit E:	Financial Guaranty Insurance Supplemental Information – Quarter Ended March 31, 2006
Exhibit F:	Financial Guaranty Insurance Supplemental Information – Quarter Ended March 31, 2006
Exhibit G:	Mortgage Insurance Supplemental Information: New Insurance Written, Risk Written
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 and Other Risk in Force
Exhibit J:	Mortgage Insurance Supplemental Information: Claims and Reserves
Exhibit K:	Mortgage Insurance Supplemental Information: Defaults
Exhibit L:	Mortgage Insurance Supplemental Information: Net Premiums Written, Net Premiums Earned and Captives
Exhibit M:	Mortgage Insurance Supplemental Information: Alt-A
Exhibit N:	Financial Services Supplemental Information

-3-

Radian Group Inc. and Subsidiaries

Condensed Consolidated Statements of Income

Exhibit A

	Quarter Ended March 31
	2006		2005
(In thousands, except per-share data)
Revenues:
Net premiums written	$	279,605	$	214,840
Net premiums earned	$	253,697	$	247,025
Net investment income		54,260		50,862
Net gains on securities		22,854		11,526
Change in fair value of derivative instruments		17,630		(8,960	)
Other income		5,211		6,108
Total revenues		353,652		306,561
Expenses:
Provision for losses		78,634		109,500
Policy acquisition costs		27,364		29,356
Other operating expenses		60,277		51,670
Interest expense		11,840		8,958
Total expenses		178,115		199,484
Equity in net income of affiliates		58,340		51,296
Pretax income		233,877		158,373
Provision for income taxes		70,179		42,761
Net income	$	163,698	$	115,612
Diluted net income per share (1)	$	1.96	$	1.24

(1) Net income per share reconciliation

Net income	$	163,698	$	115,612
Interest expense on convertible senior debentures (net of tax)		—		802
Net income available to common stockholders	$	163,698	$	116,414
Weighted average shares outstanding (in thousands)
Average common shares outstanding		82,937		89,488
Increase in shares-potential exercise of options-diluted basis		770		972
Increase in shares-contingently convertible debt (2)		—		3,798
Weighted average shares outstanding (in thousands)		83,707		94,258

(2) The 2005 period includes 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 $0.04 per share for the quarter ended March 31, 2005.

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

(In thousands, except share and per-share data)	March 31 2006		December 31 2005			March 31 2005
Assets:
Cash and investments	$	5,615,385	$	5,521,561		$	5,245,701
Investments in affiliates		436,685		446,151			383,023
Deferred policy acquisition costs		209,524		208,325			199,943
Prepaid federal income taxes		639,704		585,514			481,049
Other assets		469,605		469,059			412,881
Total assets	$	7,370,903	$	7,230,610		$	6,722,597
Liabilities and stockholders’ equity:
Unearned premiums	$	874,733	$	849,360		$	735,768
Reserve for losses and loss adjustment expenses		791,690		801,002			797,671
Long-term debt		747,540		747,466			717,038
Deferred federal income taxes		994,227		961,993			823,305
Other liabilities		217,292		207,909			202,223
Total liabilities		3,625,482		3,567,730			3,276,005
Common stock		97		97			97
Additional paid-in capital		591,067		629,019			819,644
Retained earnings		3,075,683		2,913,649			2,511,469
Accumulated other comprehensive income		78,574		120,115			115,382
Total common stockholders’ equity		3,745,421		3,662,880			3,446,592
Total liabilities and stockholders’ equity	$	7,370,903	$	7,230,610		$	6,722,597
Book value per share	$	45.43	$	44.11		$	39.89
Treasury Stock Repurchases (Year-to-Date for Periods Presented)
Total number of shares repurchased		1,000,000		10,767,800	(1)		6,143,075
Average price paid per share	$	60.24	$	49.58		$	48.55
Total cost of repurchased shares	$	60,235,421	$	533,888,969		$	298,229,529

(1) Represents full year 2005

Page 2

Radian Group Inc. and Subsidiaries

Segment Information

Quarter Ended March 31, 2006

Exhibit C

(In thousands)	Mortgage Insurance		Financial Guaranty		Financial Services		Total
Revenues:
Net premiums written	$	223,766	$	55,839	$	—	$	279,605
Net premiums earned	$	202,706	$	50,991	$	—	$	253,697
Net investment income		31,665		22,518		77		54,260
Net gains on securities		13,577		7,178		2,099		22,854
Change in fair value of derivative instruments		9,121		8,509		—		17,630
Other income		3,634		214		1,363		5,211
Total revenues		260,703		89,410		3,539		353,652
Expenses:
Provision for losses		71,097		7,537		—		78,634
Policy acquisition costs		13,345		14,019		—		27,364
Other operating expenses		44,267		14,756		1,254		60,277
Interest expense		6,701		4,026		1,113		11,840
Total expenses		135,410		40,338		2,367		178,115
Equity in net income of affiliates		—		—		58,340		58,340
Pretax income		125,293		49,072		59,512		233,877
Provision for income taxes		37,149		12,200		20,830		70,179
Net income	$	88,144	$	36,872	$	38,682	$	163,698
Assets	$	4,466,014	$	2,455,452	$	449,437	$	7,370,903
Deferred policy acquisition costs		68,619		140,905		—		209,524
Reserve for losses and loss adjustment expenses		587,114		204,576		—		791,690
Unearned premiums		233,364		641,369		—		874,733
Stockholders’ equity		2,162,097		1,276,713		306,611		3,745,421

Page 3

Radian Group Inc. and Subsidiaries

Segment Information

Quarter Ended March 31, 2005

Exhibit D

(In thousands)	Mortgage Insurance		Financial Guaranty			Financial Services			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		22,059			10			50,862
Net gains on securities		7,119		3,573			834			11,526
Change in fair value of derivative instruments		3,186		(11,957	)		(189	)		(8,960	)
Other income		4,592		316			1,200			6,108
Total revenues		236,155		68,551			1,855			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		14,394			3,607			51,670
Interest expense		5,124		3,099			735			8,958
Total expenses		151,398		43,744			4,342			199,484
Equity in net income of affiliates		—		—			51,296			51,296
Pretax income		84,757		24,807			48,809			158,373
Provision for income taxes		22,036		3,641			17,084			42,761
Net income	$	62,721	$	21,166	(1)	$	31,725		$	115,612	(1)
Assets	$	3,972,942	$	2,354,209		$	395,446		$	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		1,246,876			298,956			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)

Page 4

Radian Group Inc.

Financial Guaranty Insurance Supplemental Information

For the Quarter Ended and as of March 31, 2006

Exhibit E

($ in thousands, except ratios)	Quarter Ended March 31
	2006			2005
Net Premiums Written:
Public finance direct	$	13,553		$	15,433
Public finance reinsurance		17,983			17,026
Structured direct		18,272			15,057
Structured reinsurance		3,053			8,510
Trade credit reinsurance		2,978			13,319
		55,839			69,345
Impact of recapture (1)		—			(54,742	)
Net Premiums Written	$	55,839		$	14,603
Net Premiums Earned:
Public finance direct	$	7,843		$	8,963
Public finance reinsurance		8,293			8,513
Structured direct		21,503			18,219
Structured reinsurance		4,641			7,266
Trade credit reinsurance		8,711			16,138
		50,991			59,099
Impact of recapture (2)		—			(4,539	)
Net Premiums Earned	$	50,991		$	54,560
Refundings included in earned premium	$	2,382		$	2,441
Claims paid:
Trade credit reinsurance	$	4,000		$	4,998
Other financial guaranty		(110	)		12,484
Conseco		4,317			7,969
Total	$	8,207		$	25,451
Incurred losses:
Trade credit reinsurance	$	3,950		$	7,041
Other financial guaranty		4,619			4,532
Conseco		(1,032	)		—
Total	$	7,537		$	11,573
Loss ratio- GAAP Basis		14.8	%		21.2	%
Expense ratio- GAAP Basis		56.4	%		53.3	%
		71.2	%		74.5	%
Claims paid under derivatives contracts	$	66,639		$	(2,236	)

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

	(In thousands)
Public reinsurance	48,238
Structured reinsurance	6,504

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

	( in thousands)
Public reinsurance	3,870
Structured reinsurance	669

Page 5

Radian Group Inc.

Financial Guaranty Insurance Supplemental Information

For the Quarter Ended and as of March 31, 2006

Exhibit F

($ in thousands, except ratios)	March 31 2006			December 31 2005			March 31 2005
Capital and surplus	$	983,349		$	1,004,505		$	1,044,603
Contingency reserve		283,163			271,907			252,508
Qualified statutory capital		1,266,512			1,276,412			1,297,111
Unearned premium reserve		757,245			751,656			694,379
Loss and loss expense reserve		114,177			108,576			132,843
Total policyholders’ reserves		2,137,934			2,136,644			2,124,333
Present value of installment premiums		294,872			302,953			239,181
Reinsurance and soft capital facilities		150,000			150,000			150,000
Total claims paying resources	$	2,582,806		$	2,589,597		$	2,513,514
Net debt service outstanding	$	117,942,386		$	110,344,057		$	94,647,865
Capital leverage ratio (1)		93			86			73
Claims paying leverage ratio (2)		46			43			38
Net par outstanding by product:
Public finance direct	$	14,391,889		$	14,043,786		$	12,303,648
Public finance reinsurance		34,364,344			33,047,512			30,906,909
Structured direct		29,563,075			24,608,489			15,360,714
Structured reinsurance		5,011,005			4,952,146			5,032,401
Total	$	83,330,313		$	76,651,933		$	63,603,672
Reinsurance business net par outstanding:
Treaty		59	%		58	%		59	%
Facultative		41	%		42	%		41	%
Reserve for losses and LAE
Specific	$	43,568		$	29,311		$	40,503
Conseco		45,421			50,770			72,374
Non-specific		115,587			124,712			113,666
Total	$	204,576		$	204,793		$	226,543

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

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

Page 6

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter Ended and as of March 31, 2006

Exhibit G

	Quarter Ended
	March 31
	2006			%		2005			%
Primary New Insurance Written ($ in millions)
Flow	$	5,234		40.9	%	$	5,662		93.7	%
Structured		7,569		59.1	%		382		6.3	%
Total Primary	$	12,803		100.0	%	$	6,044		100.0	%
Flow
Prime	$	3,771		72.1	%	$	4,155		73.4	%
Alt-A		1,105		21.1	%		944		16.7	%
A minus and below		358		6.8	%		563		9.9	%
Total Flow	$	5,234		100.0	%	$	5,662		100.0	%
Structured
Prime	$	2,264		29.9	%	$	128		33.5	%
Alt-A		3,917		51.8	%		199		52.1	%
A minus and below		1,388		18.3	%		55		14.4	%
Total Structured	$	7,569		100.0	%	$	382		100.0	%
Total
Prime	$	6,035		47.2	%	$	4,283		70.9	%
Alt-A		5,022		39.2	%		1,143		18.9	%
A minus and below		1,746		13.6	%		618		10.2	%
Total Primary	$	12,803		100.0	%	$	6,044		100.0	%
Total Primary New Insurance Written by FICO Score
($ in millions)
Flow
<=619	$	278		5.3	%	$	387		6.8	%
620-679		1,547		29.6	%		1,782		31.5	%
680-739		1,991		38.0	%		2,043		36.1	%
>=740		1,418		27.1	%		1,450		25.6	%
Total Flow	$	5,234		100.0	%	$	5,662		100.0	%
Structured
<=619	$	1,388		18.3	%	$	56		14.7	%
620-679		2,181		28.8	%		168		44.0	%
680-739		2,505		33.1	%		101		26.4	%
>=740		1,495		19.8	%		57		14.9	%
Total Structured	$	7,569		100.0	%	$	382		100.0	%
Total
<=619	$	1,666		13.0	%	$	443		7.3	%
620-679		3,728		29.1	%		1,950		32.3	%
680-739		4,496		35.1	%		2,144		35.5	%
>=740		2,913		22.8	%		1,507		24.9	%
Total Primary	$	12,803		100.0	%	$	6,044		100.0	%
Percentage of primary new insurance written
Monthlies		85	%				93	%
Refinances		39	%				37	%
95.01% LTV and above		8	%				14	%
ARMs
Less than 5 years		41	%				23	%
5 years and longer		19	%				13	%
Primary risk written ($ in millions)
Flow	$	1,329		55.9	%	$	1,414		96.0	%
Structured		1,050		44.1	%		60		4.0	%
Total Primary	$	2,379		100.0	%	$	1,474		100.0	%
Pool risk written (In millions)	$	61				$	56
Other risk written (In millions)
Seconds
1st loss	$	24				$	4
2nd loss		132					6
NIMs		89					28
International
1st loss-Hong Kong primary mortgage insurance		17					50
Reinsurance		2					10
Credit default swaps		—					—
Other
Domestic credit default swaps		20					—
Financial guaranty wrap		—					511
Total other risk written	$	284				$	609

Page 7

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter Ended and as of March 31, 2006

Exhibit H

	March 31					March 31
	2006			%		2005			%
Primary insurance in force ($ in millions)
Flow	$	81,597		71.6	%	$	87,308		79.3	%
Structured		32,316		28.4	%		22,838		20.7	%
Total Primary	$	113,913		100.0	%	$	110,146		100.0	%
Prime	$	76,141		66.8	%	$	77,048		70.0	%
Alt-A		23,767		20.9	%		20,377		18.5	%
A minus and below		14,005		12.3	%		12,721		11.5	%
Total Primary	$	113,913		100.0	%	$	110,146		100.0	%
Primary risk in force ($ in millions)
Flow	$	20,073		77.0	%	$	21,367		82.6	%
Structured		6,003		23.0	%		4,496		17.4	%
Total Primary	$	26,076		100.0	%	$	25,863		100.0	%
Flow
Prime	$	15,595		77.7	%	$	15,999		74.9	%
Alt-A		2,948		14.7	%		3,701		17.3	%
A minus and below		1,530		7.6	%		1,667		7.8	%
Total Flow	$	20,073		100.0	%	$	21,367		100.0	%
Structured
Prime	$	2,379		39.6	%	$	1,903		42.3	%
Alt-A		1,623		27.1	%		1,044		23.2	%
A minus and below		2,001		33.3	%		1,549		34.5	%
Total Structured	$	6,003		100.0	%	$	4,496		100.0	%
Total
Prime	$	17,974		68.9	%	$	17,902		69.3	%
Alt-A		4,571		17.5	%		4,745		18.3	%
A minus and below		3,531		13.6	%		3,216		12.4	%
Total Primary	$	26,076		100.0	%	$	25,863		100.0	%
Total Primary Risk in Force by FICO Score
($ in millions)
Flow
<=619	$	1,281		6.4	%	$	1,492		7.0	%
620-679		6,224		31.0	%		6,828		31.9	%
680-739		7,383		36.8	%		7,862		36.8	%
>=740		5,185		25.8	%		5,185		24.3	%
Total Flow	$	20,073		100.0	%	$	21,367		100.0	%
Structured
<=619	$	2,002		33.3	%	$	1,552		34.5	%
620-679		2,170		36.2	%		1,610		35.8	%
680-739		1,268		21.1	%		896		19.9	%
>=740		563		9.4	%		438		9.8	%
Total Structured	$	6,003		100.0	%	$	4,496		100.0	%
Total
<=619	$	3,283		12.6	%	$	3,044		11.8	%
620-679		8,394		32.2	%		8,438		32.7	%
680-739		8,651		33.2	%		8,758		33.8	%
>=740		5,748		22.0	%		5,623		21.7	%
Total Primary	$	26,076		100.0	%	$	25,863		100.0	%
Percentage of primary risk in force
Monthlies		90	%				91	%
Refinances		36	%				37	%
95.01% LTV and above		14	%				13	%
ARMs
Less than 5 years		24	%				22	%
5 years and longer		9	%				8	%
Pool risk in force ($ in millions)
Prime	$	2,098		76.3	%	$	1,971		82.7	%
Alt-A		272		9.9	%		238		10.0	%
A minus and below		380		13.8	%		174		7.3	%
Total	$	2,750		100.0	%	$	2,383		100.0	%

Page 8

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter Ended and as of March 31, 2006

Exhibit I

	March 31				March 31
	2006		%		2005		%
Total Primary Risk in Force by LTV ($ in millions)
95.01% and above	$	3,680	14.1	%	$	3,416	13.2	%
90.01% to 95.00%		8,473	32.5	%		9,408	36.4	%
85.01% to 90.00%		9,476	36.3	%		9,872	38.2	%
85.00% and below		4,447	17.1	%		3,167	12.2	%
Total	$	26,076	100.0	%	$	25,863	100.0	%
Total Primary Risk in Force by Policy Year ($ in millions)
2002 and prior	$	4,275	16.4	%	$	6,700	26.0	%
2003		5,013	19.2	%		8,103	31.3	%
2004		6,407	24.6	%		9,627	37.2	%
2005		8,015	30.7	%		1,433	5.5	%
2006		2,366	9.1	%		—	—
Total	$	26,076	100.0	%	$	25,863	100.0	%
Total Pool Risk in Force by Policy Year ($ in millions)
2002 and prior	$	1,657	60.3	%	$	1,737	72.9	%
2003		158	5.7	%		284	11.9	%
2004		293	10.7	%		304	12.8	%
2005		581	21.1	%		58	2.4	%
2006		61	2.2	%		—	—
Total Pool risk in Force	$	2,750	100.0	%	$	2,383	100.0	%
Other risk in force (In millions)
Seconds
1st loss	$	594			$	586
2nd loss		756				73
NIMs		303				315
International
1st loss-Hong Kong primary mortgage insurance		288				50
Reinsurance		29				28
Credit default swaps		7,581				181
Other
Domestic credit default swaps		200				—
Financial guaranty wrap		205				511
Total other risk in force	$	9,956			$	1,744
Risk to capital ratio-STAT Basis		11.1:1				9.9:1

Page 9

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter Ended and as of March 31, 2006

Exhibit J

	Quarter Ended March 31
	2006			2005
Direct claims paid ($ in thousands)
Prime	$	29,965		$	31,871
Alt-A		18,707			22,332
A minus and below		23,263			20,884
Seconds		7,865			10,607
Total	$	79,800		$	85,694
Average claim paid ($ in thousands)
Prime	$	26.8		$	24.5
Alt-A		40.2			37.0
A minus and below		29.0			26.4
Seconds		22.8			25.3
Total	$	29.2		$	27.5
Loss ratio - GAAP Basis		35.1	%		50.9	%
Expense ratio - GAAP Basis		28.4	%		25.1	%
		63.5	%		76.0	%
Reserve for losses by category ($ in thousands):
Prime	$	181,001		$	164,847
Alt-A		135,336			161,102
A minus and below		195,246			150,802
Pool Insurance		36,199			42,800
Seconds		30,144			45,611
Other		9,188			5,966
Total	$	587,114		$	571,128

Page 10

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter Ended and as of March 31, 2006

Exhibit K

	March 31 2006		December 31 2005		March 31 2005
Default Statistics
Primary insurance:
Flow
Prime
Number of insured loans	501,632		508,117		540,847
Number of loans in default	15,117		18,045		15,816
Percentage of loans in default	3.01	%	3.55	%	2.92	%
Alt-A
Number of insured loans	64,555		67,339		78,682
Number of loans in default	4,468		4,946		5,453
Percentage of loans in default	6.92	%	7.34	%	6.93	%
A minus and below
Number of insured loans	52,700		54,066		57,637
Number of loans in default	6,833		7,543		6,342
Percentage of loans in default	12.97	%	13.95	%	11.00	%
Total Flow
Number of insured loans	618,887		629,522		677,166
Number of loans in default	26,418		30,534		27,611
Percentage of loans in default	4.27	%	4.85	%	4.08	%
Structured
Prime
Number of insured loans	67,353		59,457		51,125
Number of loans in default	2,414		2,640		1,934
Percentage of loans in default	3.58	%	4.44	%	3.78	%
Alt- A
Number of insured loans	63,800		50,997		40,326
Number of loans in default	2,491		2,564		2,373
Percentage of loans in default	3.90	%	5.03	%	5.88	%
A minus and below
Number of insured loans	51,277		47,348		41,269
Number of loans in default	7,859		8,472		6,149
Percentage of loans in default	15.33	%	17.89	%	14.90	%
Total Structured
Number of insured loans	182,430		157,802		132,720
Number of loans in default	12,764		13,676		10,456
Percentage of loans in default	7.00	%	8.67	%	7.88	%
Total Primary Insurance
Prime
Number of insured loans	568,985		567,574		591,972
Number of loans in default	17,531		20,685		17,750
Percentage of loans in default	3.08	%	3.64	%	3.00	%
Alt-A
Number of insured loans	128,355		118,336		119,008
Number of loans in default	6,959		7,510		7,826
Percentage of loans in default	5.42	%	6.35	%	6.58	%
A minus and below
Number of insured loans	103,977		101,414		98,906
Number of loans in default	14,692		16,015		12,491
Percentage of loans in default	14.13	%	15.79	%	12.63	%
Total Primary Insurance
Number of insured loans	801,317		787,324		809,886
Number of loans in default	39,182	(1)	44,210	(1)	38,067
Percentage of loans in default	4.89	%	5.62	%	4.70	%
Pool insurance:
Number of insured loans	627,815		651,051		589,934
Number of loans in default	15,072	(2)	10,194	(2)	6,249
Percentage of loans in default	2.40	%	1.57	%	1.06	%

(1) Includes approximately 439 and 452 defaults at March 31, 2006 and December 31, 2005, respectively,

where reserves have not been established because no claim payment is currently anticipated.

(2) Includes approximately 9,019 and 3,699 defaults at March 31, 2006 and December 31, 2005, respectively,

where reserves have not been established because no claim payment is currently anticipated.

Page 11

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter Ended and as of March 31, 2006

Exhibit L

	Quarter Ended March 31
	2006			2005
Net Premiums Written (in thousands)
Primary and Pool Insurance	$	187,971		$	176,874
Seconds		16,014			11,801
NIMs		12,623			9,360
International		2,561			2,202
Domestic credit default swaps		4,549			—
Financial guaranty wrap		48			—
Net Premiums Written	$	223,766		$	200,237
Net Premiums Earned (in thousands)
Primary and Pool Insurance	$	173,239		$	169,711
Seconds		17,479			12,395
NIMs		7,798			9,854
International		3,211			505
Domestic credit default swaps		931			—
Financial guaranty wrap		48			—
Net Premiums Earned	$	202,706		$	192,465
Captives
Premiums ceded to captives (in millions)	$	25.5		$	23.8
% of total premiums		12.7	%		12.2	%
NIW subject to captives (in millions)	$	2,776		$	2,286
% of primary NIW		21.7	%		37.8	%
IIF subject to captives		32.2	%		33.7	%
RIF subject to captives		35.2	%		35.5	%
Persistency (twelve months ended March 31)		58.6	%		58.4	%

Page 12

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter Ended and as of March 31, 2006

ALT-A

Exhibit M

($ millions)	Quarter Ended March 31
	2006		%		2005		%
Primary New Insurance Written by FICO Score
<=619	$	6	0.1	%	$	6	0.5	%
620-659		709	14.1	%		143	12.5	%
660-679		634	12.6	%		199	17.4	%
680-739		2,324	46.3	%		520	45.5	%
>=740		1,349	26.9	%		275	24.1	%
Total	$	5,022	100.0	%	$	1,143	100.0	%
Primary Risk in Force by FICO Score
<=619	$	34	0.7	%	$	62	1.3	%
620-659		937	20.5	%		982	20.7	%
660-679		766	16.8	%		849	17.9	%
680-739		1,961	42.9	%		2,004	42.2	%
>=740		873	19.1	%		848	17.9	%
Total	$	4,571	100.0	%	$	4,745	100.0	%
Primary Risk in Force by LTV
95.01% and above	$	161	3.5	%	$	324	6.8	%
90.01% to 95.00%		1,360	29.8	%		1,683	35.5	%
85.01% to 90.00%		1,930	42.2	%		2,051	43.2	%
85.00% and below		1,120	24.5	%		687	14.5	%
Total	$	4,571	100.0	%	$	4,745	100.0	%
Primary Risk in Force by Policy Year
2002 and prior	$	448	9.8	%	$	847	17.8	%
2003		758	16.6	%		1,500	31.6	%
2004		1,180	25.8	%		2,134	45.0	%
2005		1,538	33.6	%		264	5.6	%
2006		647	14.2	%		—	—
Total	$	4,571	100.0	%	$	4,745	100.0	%

Page 13

Radian Group Inc.

Financial Services Supplemental Information

For the Quarter Ended and as of March 31, 2006

Exhibit N

	Quarter Ended March 31
(In thousands )	2006		2005
Investment in Affiliates-Selected Information
C-BASS
Balance, beginning of period	$	364,364	$	290,073
Net income for period		30,026		28,117
Dividends received		7,347		8,500
Balance, end of period	$	387,043	$	309,690
Sherman
Balance, beginning of period	$	81,753	$	101,492
Net income for period		28,315		23,179
Dividends received		60,515		51,875
Other comprehensive income		55		1,153
Sale of ownership interest		—		—
Warrant repurchase		—		(2,075	)
Balance, end of period	$	49,608	$	71,874
Portfolio Information:
C-BASS
Servicing portfolio	$	53,340,000	$	36,530,000
Total assets		4,704,015		3,617,911
Servicing income		74,069		59,794
Net interest income		65,040		41,252
Total revenues		171,124		147,300
Sherman
Total assets	$	1,010,930	$	740,604
Net revenues	$	237,672	$	148,625

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

Page 14

All statements made in this news 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, and changes or volatility in interest rates; changes in investor perception of the strength of private mortgage insurers or 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; 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 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, 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 are investigating 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. For more information regarding these risks and uncertainties, as well as certain additional risks that we face, investors should refer to the risk factors detailed in Part I, Item 1A in our annual report on Form 10-K for the year ended December 31, 2005. 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.

# # #