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:	Michelle Davidson – phone: 215 231.1325
	cell: 215 260.6760
	email: michelle.davidson@radian.biz
	Courtney Robinson – phone: 215 231.1762
	cell: 215 629.6880
	email: courtney.robinson@radian.biz

Radian Reports Record 2006 Net Income of $582 Million

• Record 2006 diluted EPS increases 19.8 percent to $7.08

• Grows book value by 16.1 percent over 2005

• Posts fourth quarter 2006 diluted EPS of $1.96

PHILADELPHIA, Pa., January 23, 2007 — Radian Group Inc. (NYSE: RDN) today reported that for the year ended December 31, 2006, Radian earned record net income of $582.2 million and diluted net income per share of $7.08. This represents an increase of 11.3 percent and 19.8 percent, respectively, over 2005. Book value per share at December 31, 2006, was $51.23, an increase of 16.1 percent from a year earlier.

For the fourth quarter, Radian reported net income of $158.4 million and diluted net income per share of $1.96, compared to $104.5 million and $1.24 reported in the fourth quarter of 2005.

“Radian delivered record net income and grew book value by 16.1 percent, despite a challenging operating environment for our businesses including tight credit-spreads and competition from alternative products,” said Chief Executive Officer S.A. Ibrahim. “This performance demonstrates that our strategy to focus on diversification while maintaining a strict risk management culture continues to deliver long-term value.”

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In its mortgage insurance business, Radian said it continued to benefit from its unique capital markets expertise, as well as positive trends in the mortgage market including stable interest rates and strong employment. The company also made strong progress in its international expansion efforts, establishing Radian Australia Limited and announcing a multi-year partnership with St. George Insurance Australia, a wholly owned subsidiary of St. George Bank, Australia’s fifth largest bank.

Mr. Ibrahim noted that the mortgage insurance business experienced a seasonal increase in delinquencies in the fourth quarter of 2006. The loss reserve, while up $57.0 million on a gross basis from year-end 2005, was up only slightly from the third quarter, due in part to an improved economic outlook.

“Forecasts for interest rate stability, strong employment and improved persistency bode well for the mortgage insurance industry,” Mr. Ibrahim added. “In this environment, we believe we are well positioned to benefit over the long-term from both cyclical and structural opportunities in the mortgage market.”

The company’s financial guaranty business continued to perform well in a difficult environment, reporting a 17.9 percent increase in net premiums written year-over-year. Radian also reported progress in international efforts for this business as it finds an attractive, fast-growing synthetic market for the AA credit enhancement solutions that are at the core of its success.

“During the year, we achieved an important milestone for our financial guaranty business when S&P affirmed the AA financial strength rating for Radian Asset Assurance, and revised its outlook upward to stable,” Mr. Ibrahim said. “In the fourth quarter, we exceeded $100 billion in net par outstanding. We believe that these milestones, along with the outstanding performance throughout the year, validate our AA franchise strategy. Our goal in 2007 is to continue to prudently grow our financial guaranty business.”

In the Financial Services segment, both C-BASS and Sherman continued to be important and steady contributors to Radian’s results.

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The key financial highlights of the quarter and year ended December 31, 2006, are as follows:

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

Fourth quarter

	Quarter ended December 31, 2006		Quarter ended December 31, 2005		Percent Change
Revenue	$	347,884	$	298,641	16.5	%
Net income	$	158,370	$	104,461	51.6	%
Diluted net income per share	$	1.96	$	1.24	58.1	%
Net premiums written	$	278,700	$	272,721	2.2	%
Net premiums earned	$	248,919	$	262,031	(5.0	)%
Equity in net income of affiliates	$	70,745	$	55,746	26.9	%
Book value per share	$	51.23	$	44.11	16.1	%

Full year

	Year Ended December 31, 2006		Year Ended December 31, 2005		Percent Change
Revenue	$	1,327,946	$	1,298,151	2.3	%
Net income	$	582,172	$	522,854	11.3	%
Diluted net income per share	$	7.08	$	5.91	19.8	%
Net premiums written	$	1,111,985	$	1,100,687	1.0	%
Net premiums earned	$	1,015,846	$	1,018,670	(0.3	%)
Equity in net income of affiliates	$	256,993	$	217,692	18.1	%

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Radian will hold a conference call on Wednesday, January 24, 2007, at 9:00 a.m. Eastern time to discuss the company’s fourth quarter and annual 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 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.

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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 December 31, 2006
Exhibit D:	Segment Information Quarter Ended December 31, 2005
Exhibit E:	Segment Information Twelve Months Ended December 31, 2006
Exhibit F:	Segment Information Twelve Months Ended December 31, 2005
Exhibit G:	Financial Guaranty Insurance Supplemental Information – Quarter and Twelve Months Ended and as of December 31, 2006
Exhibit H:	Financial Guaranty Insurance Supplemental Information – Quarter and Twelve Months Ended and as of December 31, 2006
Exhibit I:	Mortgage Insurance Supplemental Information: New Insurance Written and 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 and Other Risk in Force
Exhibit L:	Mortgage Insurance Supplemental Information: Claims and Reserves
Exhibit M:	Mortgage Insurance Supplemental Information: Defaults
Exhibit N:	Mortgage Insurance Supplemental Information: Net Premiums Written and Earned, Smart Home, Captives and Persistency
Exhibit O:	Mortgage Insurance Supplemental Information: ALT A
Exhibit P:	Financial Services Supplemental Information

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Radian Group Inc. and Subsidiaries

Condensed Consolidated Statements of Income

Exhibit A

	Quarter Ended December 31					Year Ended December 31
(In thousands, except per-share data)	2006		2005			2006		2005
Revenues:
Net premiums written	$	278,700	$	272,721		$	1,111,985	$	1,100,687
Net premiums earned	$	248,919	$	262,031		$	1,015,846	$	1,018,670
Net investment income		60,222		54,303			234,345		208,422
Net gains on securities		11,255		11,195			40,842		36,638
Change in fair value of derivative instruments		23,097		(36,131	)		16,066		9,170
Other income		4,391		7,243			20,847		25,251
Total revenues		347,884		298,641			1,327,946		1,298,151
Expenses:
Provision for losses		84,389		104,865			369,278		390,633
Policy acquisition costs		31,074		27,496			111,609		115,851
Other operating expenses		61,552		62,958			242,634		225,977
Interest expense		12,256		11,940			48,149		43,043
Total expenses		189,271		207,259			771,670		775,504
Equity in net income of affiliates		70,745		55,746			256,993		217,692
Pretax income		229,358		147,128			813,269		740,339
Provision for income taxes		70,988		42,667			231,097		217,485
Net income	$	158,370	$	104,461		$	582,172	$	522,854
Diluted net income per share (1)	$	1.96	$	1.24		$	7.08	$	5.91
(1)    Net income per share reconciliation
Net income	$	158,370	$	104,461		$	582,172	$	522,854
Interest expense on convertible senior debentures (net of tax)		—		—			—		1,871
Net income available to common stockholders	$	158,370	$	104,461		$	582,172	$	524,725
Weighted average shares outstanding (in thousands)
Average common shares outstanding		79,923		83,028			81,338		85,637
Increase in shares-potential exercise of options-diluted basis		770		889			923		894
Increase in shares-contingently convertible debt (2)		—		—			—		2,215
Weighted average shares outstanding (in thousands)		80,693		83,917			82,261		88,746

(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 $0.13 per share for the year ended December 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)	December 31 2006			December 31 2005
Assets:
Cash and investments	$	5,827,344		$	5,521,561
Investments in affiliates		618,841			446,151
Deferred policy acquisition costs		221,769			208,325
Prepaid federal income taxes		808,740			585,514
Other assets		451,977			469,059
Total assets	$	7,928,671		$	7,230,610
Liabilities and stockholders’ equity:
Unearned premiums	$	943,687		$	849,360
Reserve for losses and loss adjustment expenses		842,283			801,002
Long-term debt		747,770			747,466
Deferred federal income taxes		1,129,740			961,993
Other liabilities		197,634			207,909
Total liabilities		3,861,114			3,567,730
Common stock		97			97
Additional paid-in capital		416,193			629,019
Retained earnings		3,489,290			2,913,649
Accumulated other comprehensive income		161,977			120,115
Total common stockholders’ equity		4,067,557			3,662,880
Total liabilities and stockholders’ equity	$	7,928,671		$	7,230,610
Book value per share	$	51.23		$	44.11
Treasury Stock Repurchases (Year-to-Date for Periods Presented)
Total number of shares repurchased		4,500,000	(1)		10,767,800
Average price paid per share	$	58.58		$	49.58
Total cost of repurchased shares	$	263,600,341		$	533,888,969

(1) 1.5 million shares were repurchased in the 4th quarter of 2006 at a cost of $81.1 million.

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Radian Group Inc. and Subsidiaries

Segment Information

Quarter Ended December 31, 2006

Exhibit C

(In thousands)	Mortgage Insurance		Financial Guaranty			Financial Services		Total
Revenues:
Net premiums written	$	202,362	$	76,338		$	—	$	278,700
Net premiums earned	$	199,207	$	49,712		$	—	$	248,919
Net investment income		34,947		25,268			7		60,222
Net gains (losses) on securities		11,956		(1,068	)		367		11,255
Change in fair value of derivative instruments		1,852		21,245			—		23,097
Other income		2,967		74			1,350		4,391
Total revenues		250,929		95,231			1,724		347,884
Expenses:
Provision for losses		80,328		4,061			—		84,389
Policy acquisition costs		20,628		10,446			—		31,074
Other operating expenses		43,278		13,680			4,594		61,552
Interest expense		6,581		4,278			1,397		12,256
Total expenses		150,815		32,465			5,991		189,271
Equity in net income of affiliates		—		—			70,745		70,745
Pretax income		100,114		62,766			66,478		229,358
Provision for income taxes		30,004		17,716			23,268		70,988
Net income	$	70,110	$	45,050		$	43,210	$	158,370
Assets	$	4,619,451	$	2,680,738		$	628,482	$	7,928,671
Deferred policy acquisition costs		68,381		153,388			—		221,769
Reserve for losses and loss adjustment expenses		653,236		189,047			—		842,283
Unearned premiums		249,293		694,394			—		943,687
Stockholders’ equity		2,259,796		1,377,263			430,498		4,067,557

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Radian Group Inc. and Subsidiaries

Segment Information

Quarter Ended December 31, 2005

Exhibit D

(In thousands)	Mortgage Insurance			Financial Guaranty			Financial Services		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			22,962			32		54,303
Net gains on securities		9,692			1,288			215		11,195
Change in fair value of derivative instruments		(2,831	)		(33,324	)		24		(36,131	)
Other income		4,384			69			2,790		7,243
Total revenues		252,420			43,160			3,061		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			16,511			1,161		62,958
Interest expense		6,650			4,251			1,039		11,940
Total expenses		165,575			39,484			2,200		207,259
Equity in net income of affiliates		—			—			55,746		55,746
Pretax income		86,845			3,676			56,607		147,128
Provision for income taxes		25,143			(2,288	)		19,812		42,667
Net income	$	61,702		$	5,964		$	36,795	$	104,461
Assets	$	4,367,804		$	2,405,234		$	457,572	$	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			1,251,396			331,039		3,662,880

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Radian Group Inc. and Subsidiaries

Segment Information

Year Ended December 31, 2006

Exhibit E

(In thousands)	Mortgage Insurance		Financial Guaranty		Financial Services		Total
Revenues:
Net premiums written	$	849,111	$	262,874	$	—	$	1,111,985
Net premiums earned	$	812,015	$	203,831	$	—	$	1,015,846
Net investment income		138,310		95,895		140		234,345
Net gains on securities		30,163		7,827		2,852		40,842
Change in fair value of derivative instruments		3,682		12,384		—		16,066
Other income		13,075		692		7,080		20,847
Total revenues		997,245		320,629		10,072		1,327,946
Expenses:
Provision for losses		348,618		20,660		—		369,278
Policy acquisition costs		64,964		46,645		—		111,609
Other operating expenses		172,020		59,772		10,842		242,634
Interest expense		26,623		16,590		4,936		48,149
Total expenses		612,225		143,667		15,778		771,670
Equity in net income of affiliates		—		—		256,993		256,993
Pretax income		385,020		176,962		251,287		813,269
Provision for income taxes		102,266		40,880		87,951		231,097
Net income	$	282,754	$	136,082	$	163,336	$	582,172

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Radian Group Inc. and Subsidiaries

Segment Information

Year Ended December 31, 2005

Exhibit F

(In thousands)	Mortgage Insurance			Financial Guaranty			Financial Services			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			89,977			120			208,422
Net gains (losses) on securities		27,649			10,737			(1,748	)		36,638
Change in fair value of derivative instruments		4,110			5,245			(185	)		9,170
Other income		19,008			939			5,304			25,251
Total revenues		975,989			318,671			3,491			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			64,978			8,268			225,977
Interest expense		24,191			15,105			3,747			43,043
Total expenses		598,890			164,599			12,015			775,504
Equity in net income (loss) of affiliates		—			(361	)		218,053			217,692
Pretax income		377,099			153,711			209,529			740,339
Provision for income taxes		108,493			35,657			73,335			217,485
Net income	$	268,606		$	118,054	(1)	$	136,194		$	522,854	(1)
(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 (in millions):
	Incr/(Decr)
Net premiums earned	$	(4.6	)
Policy acquisition costs		1.7
Provision for income taxes		(2.2	)
Net loss	$	(4.1	)

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Radian Group Inc.

Financial Guaranty Supplemental Information

For the Quarter and Year Ended and as of December 31, 2006

Exhibit G

($ in thousands, except ratios)	Quarter Ended December 31						Year Ended December 31
	2006			2005			2006			2005
Net Premiums Written:
Public finance direct	$	30,636		$	21,832		$	80,234		$	73,117
Public finance reinsurance		20,526			16,443			81,065			77,797
Structured direct		18,981			18,923			78,107			71,211
Structured reinsurance		5,950			4,294			18,869			20,649
Trade credit reinsurance		245			5,895			4,599			35,023
		76,338			67,387			262,874			277,797
Impact of recapture (1)		—			—			—			(54,742	)
Net Premiums Written	$	76,338		$	67,387		$	262,874		$	223,055
Net Premiums Earned:
Public finance direct	$	9,336		$	7,866		$	33,017		$	32,533
Public finance reinsurance		9,510			8,752			37,765			34,413
Structured direct		23,156			22,359			90,295			79,617
Structured reinsurance		5,516			4,877			21,278			20,440
Trade credit reinsurance		2,194			8,311			21,476			49,309
		49,712			52,165			203,831			216,312
Impact of recapture (2)		—			—			—			(4,539	)
Net Premiums Earned	$	49,712		$	52,165		$	203,831		$	211,773
Refundings included in earned premium	$	3,111		$	3,282		$	11,778		$	12,796
Claims paid:
Trade credit reinsurance	$	1,338		$	6,623		$	15,144		$	23,401
Other financial guaranty		248			(1,224	)		7,529			11,708
Conseco		3,513			6,181			15,763			29,574
Total	$	5,099		$	11,580		$	38,436		$	64,683
Incurred losses:
Trade credit reinsurance	$	(30	)	$	1,586		$	4,991		$	16,019
Other financial guaranty		4,091			3,866			16,701			15,498
Conseco		—			—			(1,032	)		—
Total	$	4,061		$	5,452		$	20,660		$	31,517
Loss ratio- GAAP Basis		8.2	%		10.5	%		10.1	%		14.9	%
Expense ratio- GAAP Basis		48.5	%		57.1	%		52.2	%		55.7	%
		56.7	%		67.6	%		62.3	%		70.6	%
Net claims paid (received) under derivatives contracts	$	(729	)	$	(1,419	)	$	63,548		$	(7,594	)
(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

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Radian Group Inc.

Financial Guaranty Supplemental Information

For the Quarter and Year Ended and as of December 31, 2006

Exhibit H

($ in thousands, except ratios)	December 31 2006			December 31 2005
Capital and surplus	$	1,014,958		$	1,004,505
Contingency reserve		336,719			271,907
Qualified statutory capital		1,351,677			1,276,412
Unearned premium reserve		829,340			751,656
Loss and loss expense reserve		96,829			108,576
Total policyholders’ reserves		2,277,846			2,136,644
Present value of installment premiums		345,565			302,953
Reinsurance and soft capital facilities		150,000			150,000
Total claims paying resources	$	2,773,411		$	2,589,597
Net debt service outstanding	$	143,728,116		$	110,344,057
Capital leverage ratio (1)		106			86
Claims paying leverage ratio (2)		52			43
Net par outstanding by product:
Public finance direct	$	16,324,170		$	14,043,786
Public finance reinsurance		37,488,972			33,047,512
Structured direct		44,960,360			24,608,489
Structured reinsurance		5,192,122			4,952,146
Total	$	103,965,624		$	76,651,933
Reinsurance business net par outstanding:
Treaty		59	%		58	%
Facultative		41	%		42	%
Reserve for losses and LAE
Specific	$	35,320		$	29,311
Conseco		33,975			50,770
Non-specific		119,752			124,711
Total	$	189,047		$	204,792

(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, 2006

Exhibit I

	Quarter Ended December 31										Year Ended December 31
	2006			%		2005			%		2006			%		2005			%
Primary New Insurance Written ($ in millions)
Flow	$	6,451		85.2	%	$	6,740		61.7	%	$	25,364		63.2	%	$	25,596		60.1	%
Structured		1,123		14.8	%		4,188		38.3	%		14,753		36.8	%		16,996		39.9	%
Total Primary	$	7,574		100.0	%	$	10,928		100.0	%	$	40,117		100.0	%	$	42,592		100.0	%
Flow
Prime	$	4,608		71.4	%	$	5,025		74.6	%	$	18,578		73.2	%	$	19,177		74.9	%
Alt-A		1,276		19.8	%		1,159		17.2	%		4,836		19.1	%		4,093		16.0	%
A minus and below		567		8.8	%		556		8.2	%		1,950		7.7	%		2,326		9.1	%
Total Flow	$	6,451		100.0	%	$	6,740		100.0	%	$	25,364		100.0	%	$	25,596		100.0	%
Structured
Prime	$	341		30.4	%	$	1,676		40.0	%	$	4,000		27.1	%	$	5,657		33.3	%
Alt-A		685		61.0	%		1,707		40.8	%		9,222		62.5	%		7,147		42.0	%
A minus and below		97		8.6	%		805		19.2	%		1,531		10.4	%		4,192		24.7	%
Total Structured	$	1,123		100.0	%	$	4,188		100.0	%	$	14,753		100.0	%	$	16,996		100.0	%
Total
Prime	$	4,949		65.3	%	$	6,701		61.3	%	$	22,578		56.3	%	$	24,834		58.3	%
Alt-A		1,961		25.9	%		2,866		26.2	%		14,058		35.0	%		11,240		26.4	%
A minus and below		664		8.8	%		1,361		12.5	%		3,481		8.7	%		6,518		15.3	%
Total Primary	$	7,574		100.0	%	$	10,928		100.0	%	$	40,117		100.0	%	$	42,592		100.0	%
Total Primary New Insurance Written by FICO Score ($ in millions)
Flow
<=619	$	498		7.7	%	$	327		4.8	%	$	1,603		6.3	%	$	1,489		5.8	%
620-679		2,049		31.8	%		2,000		29.7	%		7,693		30.3	%		7,680		30.0	%
680-739		2,246		34.8	%		2,505		37.2	%		9,210		36.4	%		9,322		36.4	%
>=740		1,658		25.7	%		1,908		28.3	%		6,858		27.0	%		7,105		27.8	%
Total Flow	$	6,451		100.0	%	$	6,740		100.0	%	$	25,364		100.0	%	$	25,596		100.0	%
Structured
<=619	$	98		8.7	%	$	808		19.3	%	$	1,545		10.5	%	$	4,207		24.8	%
620-679		333		29.7	%		1,369		32.7	%		4,303		29.2	%		5,302		31.2	%
680-739		428		38.1	%		1,337		31.9	%		5,760		39.0	%		4,833		28.4	%
>=740		264		23.5	%		674		16.1	%		3,145		21.3	%		2,654		15.6	%
Total Structured	$	1,123		100.0	%	$	4,188		100.0	%	$	14,753		100.0	%	$	16,996		100.0	%
Total
<=619	$	596		7.9	%	$	1,135		10.4	%	$	3,148		7.9	%	$	5,696		13.4	%
620-679		2,382		31.4	%		3,369		30.8	%		11,996		29.9	%		12,982		30.5	%
680-739		2,674		35.3	%		3,842		35.2	%		14,970		37.3	%		14,155		33.2	%
>=740		1,922		25.4	%		2,582		23.6	%		10,003		24.9	%		9,759		22.9	%
Total Primary	$	7,574		100.0	%	$	10,928		100.0	%	$	40,117		100.0	%	$	42,592		100.0	%
Percentage of primary new insurance written
Refinances		38	%				37	%				35	%				41	%
95.01% LTV and above		24	%				10	%				15	%				10	%
ARMs
Less than 5 years		16	%				31	%				24	%				35	%
5 years and longer		7	%				17	%				14	%				16	%
Primary risk written ($ in millions)
Flow	$	1,590		91.8	%	$	1,702		70.0	%	$	6,386		82.0	%	$	6,384		68.3	%
Structured		142		8.2	%		729		30.0	%		1,404		18.0	%		2,961		31.7	%
Total Primary	$	1,732		100.0	%	$	2,431		100.0	%	$	7,790		100.0	%	$	9,345		100.0	%
Pool risk written (In millions)	$	26				$	102				$	359				$	569
Other risk written (In millions)
Seconds
1st loss	$	4				$	40				$	47				$	97
2nd loss		27					247					233					571
NIMs		264					33					502					99
International
1st loss-Hong Kong primary mortgage insurance		34					27					65					271
Reinsurance		14					2					21					9
Credit-default swaps		—					7,303					—					7,303
Other
Domestic credit default swaps		—					30					32					180
Financial guaranty wrap		—					—					—					511
Total other risk written	$	343				$	7,682				$	900				$	9,041

Page 9

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter and Year Ended and as of December 31, 2006

Exhibit J

	December 31					December 31
	2006			%		2005			%
Primary insurance in force ($ in millions)
Flow	$	83,529		73.3	%	$	82,700		75.4	%
Structured		30,374		26.7	%		26,984		24.6	%
Total Primary	$	113,903		100.0	%	$	109,684		100.0	%
Prime	$	76,854		67.5	%	$	74,940		68.3	%
Alt-A		25,571		22.4	%		21,223		19.4	%
A minus and below		11,478		10.1	%		13,521		12.3	%
Total Primary	$	113,903		100.0	%	$	109,684		100.0	%
Primary risk in force ($ in millions)
Flow	$	20,724		81.9	%	$	20,330		79.0	%
Structured		4,587		18.1	%		5,399		21.0	%
Total Primary	$	25,311		100.0	%	$	25,729		100.0	%
Flow
Prime	$	16,283		78.6	%	$	15,630		76.9	%
Alt-A		2,880		13.9	%		3,131		15.4	%
A minus and below		1,561		7.5	%		1,569		7.7	%
Total Flow	$	20,724		100.0	%	$	20,330		100.0	%
Structured
Prime	$	1,903		41.5	%	$	2,208		40.9	%
Alt-A		1,354		29.5	%		1,358		25.1	%
A minus and below		1,330		29.0	%		1,833		34.0	%
Total Structured	$	4,587		100.0	%	$	5,399		100.0	%
Total
Prime	$	18,186		71.9	%	$	17,838		69.3	%
Alt-A		4,234		16.7	%		4,489		17.5	%
A minus and below		2,891		11.4	%		3,402		13.2	%
Total Primary	$	25,311		100.0	%	$	25,729		100.0	%
Total Primary Risk in Force by FICO Score
($ in millions)
Flow
<=619	$	1,342		6.5	%	$	1,321		6.5	%
620-679		6,391		30.8	%		6,352		31.2	%
680-739		7,556		36.5	%		7,459		36.7	%
>=740		5,435		26.2	%		5,198		25.6	%
Total Flow	$	20,724		100.0	%	$	20,330		100.0	%
Structured
<=619	$	1,331		29.0	%	$	1,833		34.0	%
620-679		1,619		35.3	%		1,957		36.2	%
680-739		1,095		23.9	%		1,111		20.6	%
>=740		542		11.8	%		498		9.2	%
Total Structured	$	4,587		100.0	%	$	5,399		100.0	%
Total
<=619	$	2,673		10.5	%	$	3,154		12.3	%
620-679		8,010		31.7	%		8,309		32.3	%
680-739		8,651		34.2	%		8,570		33.3	%
>=740		5,977		23.6	%		5,696		22.1	%
Total Primary	$	25,311		100.0	%	$	25,729		100.0	%
Percentage of primary risk in force
Refinances		33	%				37	%
95.01% LTV and above		18	%				14	%
ARMs
Less than 5 years		19	%				23	%
5 years and longer		9	%				9	%
Pool risk in force ($ in millions)
Prime	$	2,182		72.9	%	$	2,098		77.4	%
Alt-A		295		9.9	%		272		10.0	%
A minus and below		514		17.2	%		341		12.6	%
Total	$	2,991		100.0	%	$	2,711		100.0	%

Page 10

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter and Year Ended and as of December 31, 2006

Exhibit K

	December 31				December 31
	2006		%		2005		%
Total Primary Risk in Force by LTV ($ in millions)
95.01% and above	$	4,441	17.6	%	$	3,599	14.0	%
90.01% to 95.00%		8,005	31.6	%		8,616	33.5	%
85.01% to 90.00%		9,062	35.8	%		9,551	37.1	%
85.00% and below		3,803	15.0	%		3,963	15.4	%
Total	$	25,311	100.0	%	$	25,729	100.0	%
Total Primary Risk in Force by Policy Year ($ in millions)
2002 and prior	$	3,313	13.1	%	$	4,658	18.1	%
2003		3,800	15.0	%		5,511	21.4	%
2004		4,565	18.1	%		7,091	27.6	%
2005		6,538	25.8	%		8,469	32.9	%
2006		7,095	28.0	%		—	—
Total	$	25,311	100.0	%	$	25,729	100.0	%
Total Pool Risk in Force by Policy Year ($ in millions)
2002 and prior	$	1,624	54.3	%	$	1,664	61.4	%
2003		134	4.5	%		172	6.3	%
2004		290	9.7	%		294	10.9	%
2005		651	21.7	%		581	21.4	%
2006		292	9.8	%		—	—
Total Pool risk in Force	$	2,991	100.0	%	$	2,711	100.0	%
Other risk in force (In millions)
Seconds
1st loss	$	592			$	591
2nd loss		610				638
NIMs		592				261
International
1st loss-Hong Kong primary mortgage insurance		335				271
Reinsurance		47				29
Credit default swaps		7,897				7,469
Other
Domestic credit default swaps		212				180
Financial guaranty wrap		37				270
Total other risk in force	$	10,322			$	9,709
Risk to capital ratio-STAT Basis		10.4:1				11.6:1

Page 11

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter and Year Ended and as of December 31, 2006

Exhibit L

	Quarter Ended						Year Ended
	December 31						December 31
	2006			2005			2006			2005
Direct claims paid (In thousands)
Prime	$	28,903		$	33,156		$	117,471		$	121,297
Alt-A		16,654			19,968			64,018			79,371
A minus and below		25,996			23,762			93,662			85,980
Seconds and other		9,590			7,044			38,204			33,699
Total	$	81,143		$	83,930		$	313,355		$	320,347
Average claim paid (In thousands)
Prime	$	26.7		$	25.7		$	26.1		$	24.1
Alt-A		37.9			38.4			35.6			36.5
A minus and below		30.2			28.1			28.3			27.0
Seconds		29.2			20.5			26.8			22.0
Total	$	29.9		$	28.0		$	28.4		$	26.9
Loss ratio -GAAP Basis		40.3	%		47.4	%		42.9	%		44.5	%
Expense ratio-GAAP Basis		32.1	%		28.4	%		29.2	%		26.7	%
		72.4	%		75.8	%		72.1	%		71.2	%
Reserve for losses by category (In thousands):
Prime	$	200,429		$	179,152
Alt-A		135,073			137,430
A minus and below		227,203			190,312
Pool Insurance		31,116			44,135
Seconds		36,166			35,876
Other		1,635			9,305
Reserve for losses, net		631,622			596,210
Reinsurance recoverable		21,614	(1)		—
Total	$	653,236		$	596,210

(1) Reinsurance recoverable on a first-loss second lien captive.

Page 12

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter and Year Ended and as of December 31, 2006

Exhibit M

	December 31 2006		December 31 2005
Default Statistics
Primary insurance:
Flow
Prime
Number of insured loans	500,464		508,117
Number of loans in default	15,141		18,045
Percentage of loans in default	3.03	%	3.55	%
Alt-A
Number of insured loans	63,469		67,339
Number of loans in default	4,348		4,946
Percentage of loans in default	6.85	%	7.34	%
A minus and below
Number of insured loans	52,440		54,066
Number of loans in default	7,250		7,543
Percentage of loans in default	13.83	%	13.95	%
Total Flow
Number of insured loans	616,373		629,522
Number of loans in default	26,739		30,534
Percentage of loans in default	4.34	%	4.85	%
Structured
Prime
Number of insured loans	62,680		59,457
Number of loans in default	3,300		2,640
Percentage of loans in default	5.26	%	4.44	%
Alt-A
Number of insured loans	70,164		50,997
Number of loans in default	3,647		2,564
Percentage of loans in default	5.20	%	5.03	%
A minus and below
Number of insured loans	36,597		47,348
Number of loans in default	9,014		8,472
Percentage of loans in default	24.63	%	17.89	%
Total Structured
Number of insured loans	169,441		157,802
Number of loans in default	15,961		13,676
Percentage of loans in default	9.42	%	8.67	%
Total Primary Insurance
Prime
Number of insured loans	563,144		567,574
Number of loans in default	18,441		20,685
Percentage of loans in default	3.27	%	3.64	%
Alt-A
Number of insured loans	133,633		118,336
Number of loans in default	7,995		7,510
Percentage of loans in default	5.98	%	6.35	%
A minus and below
Number of insured loans	89,037		101,414
Number of loans in default	16,264		16,015
Percentage of loans in default	18.27	%	15.79	%
Total Primary Insurance
Number of insured loans	785,814		787,324
Number of loans in default	42,700	(1)	44,210	(1)
Percentage of loans in default	5.43	%	5.62	%
Pool insurance:
Number of loans in default	18,681	(2)	10,194	(2)

(1) Includes approximately 1,161 and 452 defaults at December 31, 2006 and December 31, 2005, respectively, where reserves have not been established because no claim payment is currently anticipated.

(2) Includes approximately 13,309 and 3,699 defaults at December 31, 2006 and December 31, 2005, respectively, where reserves have not been established because no claim payment is currently anticipated.

Page 13

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter and Year Ended and as of December 31, 2006

Exhibit N

	Quarter Ended December 31						Year Ended December 31
	2006			2005			2006			2005
Net Premiums Written (In thousands)
Primary and Pool Insurance	$	162,875		$	185,369		$	723,213		$	752,194
Seconds		15,469			8,391			57,935			56,092
NIMs		11,564			8,170			34,215			40,318
International		11,614			2,901			23,861			25,612
Domestic credit default swaps		821			408			9,778			3,132
Financial guaranty wrap		19			95			109			284
Net Premiums Written	$	202,362		$	205,334		$	849,111		$	877,632
Net Premiums Earned (In thousands)
Primary and Pool Insurance	$	173,413		$	187,162		$	715,136		$	712,538
Seconds		11,564			13,270			52,588			50,043
NIMs		10,228			7,513			28,251			39,877
International		2,448			1,228			10,644			3,338
Domestic credit default swaps		1,535			598			5,287			817
Financial guaranty wrap		19			95			109			284
Net Premiums Earned	$	199,207		$	209,866		$	812,015		$	806,897
SMART HOME (In millions)
Ceded Premiums Written	$	3.5		$	1.0		$	12.0		$	3.5
Ceded Premiums Earned	$	3.7		$	0.9		$	12.3		$	3.0
Captives
Premiums ceded to captives (In millions)	$	25.4		$	25.3		$	96.7		$	92.9
% of total premiums		12.6	%		12.0	%		11.7	%		11.5	%
NIW subject to captives (In millions)	$	3,457		$	4,223		$	13,157		$	12,221
% of primary NIW		45.6	%		38.6	%		32.8	%		28.7	%
IIF included in captives (1)		34.1	%		38.6	%
RIF included in captives (1)		38.9	%		35.6	%
Persistency (twelve months ended December 31)		67.3	%		58.2	%
	December 31 2006			December 31 2005
SMART HOME
% of Primary RIF included in Smart Home Transactions (1)		10.1	%		7.8	%

(1) Radian reinsures the middle layer risk positions, while retaining a significant portion of the total risk comprising the first loss and most remote risk positions.

Page 14

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter and Year Ended and as of December 31, 2006

ALT-A

Exhibit O

($ in millions)	Quarter Ended December 31								Year Ended December 31
	2006		%		2005		%		2006		%		2005		%
Primary New Insurance Written by FICO Score
<=619	$	3	0.2	%	$	3	0.1	%	$	28	0.2	%	$	34	0.3	%
620-659		208	10.6	%		440	15.4	%		1,600	11.4	%		1,903	16.9	%
660-679		351	17.9	%		407	14.2	%		2,019	14.4	%		1,513	13.5	%
680-739		903	46.0	%		1,302	45.4	%		6,756	48.0	%		4,990	44.4	%
>=740		496	25.3	%		714	24.9	%		3,655	26.0	%		2,800	24.9	%
Total	$	1,961	100.0	%	$	2,866	100.0	%	$	14,058	100.0	%	$	11,240	100.0	%
Primary Risk in Force by FICO Score
<=619	$	24	0.6	%	$	44	1.0	%
620-659		729	17.2	%		936	20.9	%
660-679		681	16.1	%		767	17.0	%
680-739		1,897	44.8	%		1,903	42.4	%
>=740		903	21.3	%		839	18.7	%
Total	$	4,234	100.0	%	$	4,489	100.0	%
Primary Risk in Force by LTV
95.01% and above	$	120	2.8	%	$	190	4.2	%
90.01% to 95.00%		1,237	29.2	%		1,425	31.7	%
85.01% to 90.00%		1,832	43.3	%		1,938	43.2	%
85.00% and below		1,045	24.7	%		936	20.9	%
Total	$	4,234	100.0	%	$	4,489	100.0	%
Primary Risk in Force by Policy Year
2002 and prior	$	317	7.5	%	$	520	11.6	%
2003		529	12.5	%		874	19.5	%
2004		712	16.8	%		1,432	31.9	%
2005		1,157	27.3	%		1,663	37.0	%
2006		1,519	35.9	%		—	—
Total	$	4,234	100.0	%	$	4,489	100.0	%

Page 15

Radian Group Inc.

Financial Services Supplemental Information

For the Quarter and Year Ended and as of December 31, 2006

Exhibit P

	Quarter Ended December 31					Year Ended December 31
(In thousands )	2006			2005		2006			2005
Investment in Affiliates-Selected Information
C-BASS
Balance, beginning of period	$	431,472		$	343,344	$	364,364		$	290,073
Net income for period		31,598			27,520		133,900			107,791
Dividends received		11,675			6,500		46,869			33,500
Balance, end of period	$	451,395		$	364,364	$	451,395		$	364,364
Sherman
Balance, beginning of period	$	129,064		$	53,313	$	81,753		$	101,492
Net income for period		39,146			28,225		123,835			110,261
Dividends received		—			—		103,740			110,661
Other comprehensive income		(798	)		215		(743	)		1,683
Purchase (sale) of ownership interest		—			—		66,307			(18,947	)
Warrant repurchase		—			—		—			(2,075	)
Balance, end of period	$	167,412		$	81,753	$	167,412		$	81,753
Portfolio Information:
C-BASS
Servicing portfolio	$	60,600,000		$	44,830,000
Total assets		8,799,261			7,694,294
Servicing income		77,905			65,415	$	309,508		$	250,838
Net interest income		73,836			53,878		285,844			190,716
Total revenues		189,645			168,749		746,113			624,825
Sherman
Total assets	$	1,213,049		$	979,215
Net revenues	$	230,916		$	226,844	$	934,536		$	799,195

Radian owns a 46% interest in C-BASS and an interest in Sherman, consisting of 40.96% of the Class A Common Units of Sherman (Class A Common Units represent 94% of the total equity in Sherman) and 50% of the Preferred Units of Sherman .

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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 demand or mortgage originations, changes in housing values, population trends and changes in household formation patterns, changes in unemployment rates, changes or volatility in interest rates or consumer confidence, or changes in credit spreads; 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 or the influence of large customers; 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; legal and other limitations on the amount of dividends we may receive from our insurance subsidiaries; 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 and the material changes to these risks identified in our quarterly report on Form 10-Q for the quarter ended June 30, 2006. We caution you not to place undue reliance on these forward-looking statements, which are current only as of the date of this news release. Radian does not intend to and disclaims any duty or obligation to update or revise any forward-looking statements made in this news release to reflect new information, future events or for any other reason.