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 24, 2007

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) 231-1000

(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):

x 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 24, 2007, Radian Group Inc. (“Radian”) issued a news release announcing its financial results for the quarter ended March 31, 2007. A copy of this news release is furnished as Exhibit 99.1 to this report.

The information included in, or furnished with, 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.

Additional Information about the Radian/MGIC Transaction

MGIC Investment Corporation (“MGIC”) and Radian have filed a joint proxy statement/prospectus and other relevant documents concerning the MGIC/Radian merger transaction with the United States Securities and Exchange Commission (the “SEC”). STOCKHOLDERS ARE URGED TO READ THE JOINT PROXY STATEMENT/PROSPECTUS AND ANY OTHER DOCUMENTS FILED WITH THE SEC IN CONNECTION WITH THE MERGER TRANSACTION OR INCORPORATED BY REFERENCE IN THE JOINT PROXY STATEMENT/PROSPECTUS BECAUSE THEY CONTAIN IMPORTANT INFORMATION. Investors may obtain these documents free of charge at the SEC’s website (http://www.sec.gov). In addition, documents filed with the SEC by MGIC are available free of charge by contacting Investor Relations at MGIC Investment Corporation, 250 East Kilbourn Avenue, Milwaukee, WI 53202. Documents filed with the SEC by Radian are available free of charge by calling Investor Relations at (215) 231-1486.

Radian and MGIC and their respective directors and executive officers, certain members of management and other employees are participants in the solicitation of proxies from Radian stockholders and MGIC stockholders with respect to the proposed merger transaction. Information regarding the directors and executive officers of Radian and MGIC and the interests of such participants are included in the joint proxy statement/prospectus filed with the SEC which relates to the merger transaction, Radian’s 2007 annual meeting of stockholders and MGIC’s 2007 annual meeting of stockholders—and in the other relevant documents filed with the SEC.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

*99.1 Radian Group Inc. News Release dated April 24, 2007.

* Furnished herewith.

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 24, 2007	By:	/s/ Edward J. Hoffman
		Edward J. Hoffman
		Vice President, Securities Counsel

EXHIBIT INDEX

Exhibit No.	Description
*99.1	Radian Group Inc. News Release dated April 24, 2007.

* Furnished herewith.

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 2007
	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 First Quarter Net Income of $114 Million

PHILADELPHIA, Pa., April 24, 2007 — Radian Group Inc. (NYSE: RDN) today reported that for the quarter ended March 31, 2007, Radian earned net income of $113.5 million and diluted net income per share of $1.42. Book value per share at March 31, 2007, was $52.00, an increase of 14 percent from a year earlier.

“Our core mortgage insurance and financial guaranty businesses had strong production performance this quarter, with a 35 percent jump in flow MI over last year and strong growth in written and earned premium for FG,” said Chief Executive Officer S.A. Ibrahim.

“Our primary book was not significantly affected by the disruptions in the sub-prime market in recent months,” Mr. Ibrahim added. “I believe this is a validation of our long-term approach to risk management in all areas, including sub-prime and Alt A, where we have remained disciplined in diversifying our book of business across geographies, products, clients and origination years.”

1

In the Financial Services segment, net income was $10.8 million, down from $38.7 million for the same period last year, primarily as a result of an operating loss at C-BASS.

The company also provided an update on its proposed merger with MGIC, which was announced in February this year. Radian and MGIC currently anticipate completing the merger late in the third quarter or early in the fourth quarter of 2007. To do this, both Radian and MGIC must obtain stockholder approval, with votes scheduled for early next month, as well as additional regulatory approvals.

The key financial highlights of the quarter ended March 31, 2007, are as follows:

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

First quarter

	Quarter ended March 31, 2007		Quarter ended March 31, 2006		Percent Change
Revenue	$	341.5	$	353.7	(3.4	%)
Net income	$	113.5	$	163.7	(30.7	%)
Diluted net income per share	$	1.42	$	1.96	(27.6	%)
Net premiums written	$	277.6	$	279.6	(0.7	%)
Net premiums earned	$	249.1	$	253.7	(1.8	%)
Equity in net income of affiliates	$	22.8	$	58.3	(60.9	%)
Book value per share	$	52.00	$	45.74	13.7	%

Radian will hold a conference call on Wednesday, April 25, 2007, at 9:00 a.m. Eastern time to discuss the company’s first quarter results. This call will be broadcast live over the Internet at 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.

2

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.

About Radian

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.

Additional Information about the Radian/MGIC Transaction

MGIC Investment Corporation and Radian Group Inc. have filed a joint proxy statement/prospectus and other relevant documents concerning the MGIC/Radian merger transaction with the United States Securities and Exchange Commission (the “SEC”). STOCKHOLDERS ARE URGED TO READ THE JOINT PROXY STATEMENT/PROSPECTUS AND ANY OTHER DOCUMENTS FILED WITH THE SEC IN CONNECTION WITH THE MERGER TRANSACTION OR INCORPORATED BY REFERENCE IN THE JOINT PROXY STATEMENT/PROSPECTUS BECAUSE THEY CONTAIN IMPORTANT INFORMATION. Investors may obtain these documents free of charge at the SEC’s website (http://www.sec.gov). In addition, documents filed with the SEC by MGIC are available free of charge by contacting Investor Relations at MGIC Investment Corporation, 250 East Kilbourn Avenue, Milwaukee, WI 53202. Documents filed with the SEC by Radian are available free of charge by calling Investor Relations at (215) 231-1486.

3

Radian and MGIC and their respective directors and executive officers, certain members of management and other employees are participants in the solicitation of proxies from Radian stockholders and MGIC stockholders with respect to the proposed merger transaction. Information regarding the directors and executive officers of Radian and MGIC and the interests of such participants are included in the joint proxy statement/prospectus filed with the SEC which relates to the merger transaction, Radian’s 2007 annual meeting of stockholders and MGIC’s 2007 annual meeting of stockholders—and in the other relevant documents filed with the SEC.

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, 2007
Exhibit D:	Segment Information Quarter Ended March 31, 2006
Exhibit E:	Financial Guaranty Insurance Supplemental Information – Quarter Ended and as of March 31, 2007
Exhibit F:	Financial Guaranty Insurance Supplemental Information – Quarter Ended and as of March 31, 2007
Exhibit G:	Mortgage Insurance Supplemental Information: New Insurance Written and 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 and Earned, Smart Home, Captives and Persistency
Exhibit M:	Mortgage Insurance Supplemental Information: ALT A
Exhibit N:	Financial Services Supplemental Information

4

Radian Group Inc. and Subsidiaries

Condensed Consolidated Statements of Income

Exhibit A

	Quarter Ended March 31
(In thousands, except per-share data)	2007		2006
Revenues:
Net premiums written	$	277,634	$	279,605
Net premiums earned—insurance	$	214,507	$	227,234
Net premiums earned—credit derivatives		34,628		26,463
Net premiums earned—total		249,135		253,697
Net investment income		60,996		54,260
Net gains on securities		13,745		22,854
Change in fair value of derivative instruments		13,789		17,630
Other income		3,818		5,211
Total revenues		341,483		353,652
Expenses:
Provision for losses		107,042		78,634
Policy acquisition costs		28,254		27,364
Other operating expenses		54,367		60,277
Merger expenses		3,328		—
Interest expense		13,056		11,840
Total expenses		206,047		178,115
Equity in net income of affiliates		22,772		58,340
Pretax income		158,208		233,877
Provision for income taxes		44,741		70,179
Net income	$	113,467	$	163,698
Diluted net income per share (1)	$	1.42	$	1.96
(1) Weighted average shares outstanding (in thousands)
Average common shares outstanding		79,428		82,937
Increase in shares—potential exercise of options—diluted basis		652		770
Weighted average shares outstanding (in thousands)		80,080		83,707

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 2007		December 31 2006
Assets:
Cash and investments	$	6,078,573	$	5,803,228
Investments in affiliates		588,323		618,841
Deferred policy acquisition costs		225,597		221,769
Prepaid federal income taxes		788,240		808,740
Other assets		444,175		476,093
Total assets	$	8,124,908	$	7,928,671
Liabilities and stockholders’ equity:
Unearned premiums	$	974,768	$	943,687
Reserve for losses and loss adjustment expenses		852,462		842,283
Long-term debt		747,849		747,770
Current federal income taxes		224,999		—
Deferred federal income taxes		942,167		1,129,740
Other liabilities		207,887		197,634
Total liabilities		3,950,132		3,861,114
Common stock		97		97
Additional paid-in capital		442,368		416,193
Retained earnings		3,584,236		3,489,290
Accumulated other comprehensive income		148,075		161,977
Total common stockholders’ equity		4,174,776		4,067,557
Total liabilities and stockholders’ equity	$	8,124,908	$	7,928,671
Book value per share	$	52.00	$	51.23
Treasury Stock Repurchases (Year-to-Date for Periods Presented)
Total number of shares repurchased		70,968		4,500,000
Average price paid per share	$	56.09	$	58.58
Total cost of repurchased shares	$	3,980,441	$	263,600,341

Page 2

Radian Group Inc. and Subsidiaries

Segment Information

Quarter Ended March 31, 2007

Exhibit C

(In thousands)	Mortgage Insurance			Financial Guaranty			Financial Services			Total
Revenues:
Net premiums written	$	222,289		$	55,345		$	—		$	277,634
Net premiums earned—insurance	$	180,243		$	34,264		$	—		$	214,507
Net premiums earned—credit derivatives		15,689			18,939			—			34,628
Net premiums earned—total		195,932			53,203			—			249,135
Net investment income		35,559			25,437			—			60,996
Net gains (losses) on securities		11,123			2,824			(202	)		13,745
Change in fair value of derivative instruments		(11,351	)		25,140			—			13,789
Other income		2,849			140			829			3,818
Total revenues		234,112			106,744			627			341,483
Expenses:
Provision for losses		112,854			(5,812	)		—			107,042
Policy acquisition costs		16,523			11,731			—			28,254
Other operating expenses		36,272			14,235			3,860			54,367
Merger expenses		3,328			—			—			3,328
Interest expense		6,854			4,596			1,606			13,056
Total expenses		175,831			24,750			5,466			206,047
Equity in net income of affiliates		—			—			22,772			22,772
Pretax income		58,281			81,994			17,933			158,208
Provision for income taxes		13,579			24,078			7,084			44,741
Net income	$	44,702		$	57,916		$	10,849		$	113,467
Assets	$	4,774,210		$	2,757,800		$	592,898		$	8,124,908
Deferred policy acquisition costs		67,835			157,762			—			225,597
Reserve for losses and loss adjustment expenses		676,691			175,771			—			852,462
Unearned premiums		277,135			697,633			—			974,768
Stockholders’ equity		2,322,374			1,457,712			394,690			4,174,776

Page 3

Radian Group Inc. and Subsidiaries

Segment Information

Quarter Ended March 31, 2006

Exhibit D

(In thousands)	Mortgage Insurance		Financial Guaranty		Financial Services		Total
Revenues:
Net premiums written	$	223,766	$	55,839	$	—	$	279,605
Net premiums earned—insurance	$	192,971	$	34,263	$	—	$	227,234
Net premiums earned—credit derivatives		9,735		16,728		—		26,463
Net premiums earned—total		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	$	4,504,282	$	2,456,875	$	449,437	$	7,410,594
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		2,186,177		1,278,432		306,611		3,771,220

Page 4

Radian Group Inc.

Financial Guaranty Supplemental Information

For the Quarter Ended and as of March 31, 2007

Exhibit E

($ in thousands, except ratios)	Quarter Ended March 31
	2007			2006
Net Premiums Written:
Public finance direct	$	12,780		$	13,438
Public finance reinsurance		18,154			17,983
Structured direct		5,247			3,991
Structured reinsurance		5,912			3,005
Trade credit reinsurance		(74	)		2,978
Net premiums written—insurance		42,019			41,395
Net premiums written—credit derivatives		13,326			14,444
Total Net Premiums Written	$	55,345		$	55,839
Net Premiums Earned:
Public finance direct	$	11,585		$	7,753
Public finance reinsurance		11,100			8,293
Structured direct		4,691			4,912
Structured reinsurance		6,194			4,594
Trade credit reinsurance		694			8,711
Net premiums earned—insurance		34,264			34,263
Net premiums earned—credit derivatives		18,939			16,728
Total Net Premiums Earned	$	53,203		$	50,991
Refundings included in earned premium	$	6,586		$	2,382
Claims paid:
Trade credit reinsurance	$	2,646		$	4,000
Other financial guaranty		(69	)		(110	)
Conseco		3,108			4,317
Total	$	5,685		$	8,207
Incurred losses:
Trade credit reinsurance	$	(3,136	)	$	3,950
Other financial guaranty		(2,676	)		4,619
Conseco		—			(1,032	)
Total	$	(5,812	)	$	7,537
Loss ratio—GAAP Basis		(10.9	%)		14.8	%
Expense ratio—GAAP Basis		48.8	%		56.4	%
		37.9	%		71.2	%
Net (receipts) payments under derivatives contracts	$	(11,228	)	$	66,639

Page 5

Radian Group Inc.

Financial Guaranty Supplemental Information

For the Quarter Ended and as of March 31, 2007

Exhibit F

($ in thousands, except ratios)	March 31 2007			December 31 2006			March 31 2006
Capital and surplus	$	1,042,548		$	1,014,958		$	983,349
Contingency reserve		357,176			336,719			283,163
Qualified statutory capital		1,399,724			1,351,677			1,266,512
Unearned premium reserve		837,024			829,340			757,245
Loss and loss expense reserve		88,253			96,829			114,177
Total statutory policyholders' reserves		2,325,001			2,277,846			2,137,934
Present value of installment premiums		377,105			345,565			294,872
Reinsurance and soft capital facilities		150,000			150,000			150,000
Total statutory claims paying resources	$	2,852,106		$	2,773,411		$	2,582,806
Net debt service outstanding	$	155,568,589		$	143,728,116		$	117,942,386
Capital leverage ratio (1)		111			106			93
Claims paying leverage ratio (2)		55			52			46
Net par outstanding by product:
Public finance direct	$	16,590,493		$	16,324,170		$	14,391,889
Public finance reinsurance		39,311,697			37,488,972			34,494,004
Structured direct		52,945,169			44,960,360			29,563,075
Structured reinsurance		5,261,220			5,192,122			4,881,345
Total	$	114,108,579		$	103,965,624		$	83,330,313
Reinsurance business net par outstanding:
Treaty		59	%		59	%		59	%
Facultative		41	%		41	%		41	%
Reserve for losses and LAE
Specific	$	33,011		$	35,320		$	43,568
Conseco		30,866			33,975			45,421
Non-specific		111,894			119,752			115,587
Total	$	175,771		$	189,047		$	204,576

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

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

Page 6

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter Ended and as of March 31, 2007

Exhibit G

	Quarter Ended March 31
	2007			%		2006			%
Primary New Insurance Written ($ in millions)
Flow	$	7,049		53.3	%	$	5,234		40.9	%
Structured		6,178		46.7	%		7,569		59.1	%
Total Primary	$	13,227		100.0	%	$	12,803		100.0	%
Flow
Prime	$	5,050		71.6	%	$	3,771		72.1	%
Alt-A		1,401		19.9	%		1,105		21.1	%
A minus and below		598		8.5	%		358		6.8	%
Total Flow	$	7,049		100.0	%	$	5,234		100.0	%
Structured
Prime	$	93		1.5	%	$	2,264		29.9	%
Alt-A		5,905		95.6	%		3,917		51.8	%
A minus and below		180		2.9	%		1,388		18.3	%
Total Structured	$	6,178		100.0	%	$	7,569		100.0	%
Total
Prime	$	5,143		38.9	%	$	6,035		47.2	%
Alt-A		7,306		55.2	%		5,022		39.2	%
A minus and below		778		5.9	%		1,746		13.6	%
Total Primary	$	13,227		100.0	%	$	12,803		100.0	%
Total Primary New Insurance Written by FICO Score
($ in millions)
Flow
<=619	$	486		6.9	%	$	278		5.3	%
620-679		2,255		32.0	%		1,547		29.6	%
680-739		2,479		35.2	%		1,991		38.0	%
>=740		1,829		25.9	%		1,418		27.1	%
Total Flow	$	7,049		100.0	%	$	5,234		100.0	%
Structured
<=619	$	126		2.0	%	$	1,388		18.3	%
620-679		1,376		22.3	%		2,181		28.8	%
680-739		3,068		49.7	%		2,505		33.1	%
>=740		1,608		26.0	%		1,495		19.8	%
Total Structured	$	6,178		100.0	%	$	7,569		100.0	%
Total
<=619	$	612		4.6	%	$	1,666		13.0	%
620-679		3,631		27.5	%		3,728		29.1	%
680-739		5,547		41.9	%		4,496		35.1	%
>=740		3,437		26.0	%		2,913		22.8	%
Total Primary	$	13,227		100.0	%	$	12,803		100.0	%
Percentage of primary new insurance written
Refinances		37	%				39	%
95.01% LTV and above		16	%				8	%
ARMs
Less than 5 years		42	%				41	%
5 years and longer		5	%				19	%
Primary risk written ($ in millions)
Flow	$	1,746		90.0	%	$	1,329		55.9	%
Structured		194		10.0	%		1,050		44.1	%
Total Primary	$	1,940		100.0	%	$	2,379		100.0	%
Pool risk written (In millions)	$	89				$	61
Other risk written (In millions)
Seconds
1st loss	$	3				$	24
2nd loss		21					132
NIMs		268					89
International
1st loss-Hong Kong primary mortgage insurance		19					17
Reinsurance		17					2
Other
Domestic credit default swaps		—					20
Total other risk written	$	328				$	284

Page 7

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter Ended and as of March 31, 2007

Exhibit H

	March 31					March 31
	2007			%		2006			%
Primary insurance in force ($ in millions)
Flow	$	85,649		71.5	%	$	81,597		71.6	%
Structured		34,063		28.5	%		32,316		28.4	%
Total Primary	$	119,712		100.0	%	$	113,913		100.0	%
Prime	$	77,414		64.7	%	$	76,141		66.8	%
Alt-A		31,023		25.9	%		23,767		20.9	%
A minus and below		11,275		9.4	%		14,005		12.3	%
Total Primary	$	119,712		100.0	%	$	113,913		100.0	%
Primary risk in force ($ in millions)
Flow	$	21,267		82.7	%	$	20,073		77.0	%
Structured		4,446		17.3	%		6,003		23.0	%
Total Primary	$	25,713		100.0	%	$	26,076		100.0	%
Flow
Prime	$	16,653		78.3	%	$	15,595		77.7	%
Alt-A		3,015		14.2	%		2,948		14.7	%
A minus and below		1,599		7.5	%		1,530		7.6	%
Total Flow	$	21,267		100.0	%	$	20,073		100.0	%
Structured
Prime	$	1,797		40.4	%	$	2,379		39.6	%
Alt-A		1,442		32.4	%		1,623		27.1	%
A minus and below		1,207		27.2	%		2,001		33.3	%
Total Structured	$	4,446		100.0	%	$	6,003		100.0	%
Total
Prime	$	18,450		71.8	%	$	17,974		68.9	%
Alt-A		4,457		17.3	%		4,571		17.5	%
A minus and below		2,806		10.9	%		3,531		13.6	%
Total Primary	$	25,713		100.0	%	$	26,076		100.0	%
Total Primary Risk in Force by FICO Score
($ in millions)
Flow
<=619	$	1,381		6.5	%	$	1,281		6.4	%
620-679		6,574		30.9	%		6,224		31.0	%
680-739		7,733		36.4	%		7,383		36.8	%
>=740		5,579		26.2	%		5,185		25.8	%
Total Flow	$	21,267		100.0	%	$	20,073		100.0	%
Structured
<=619	$	1,205		27.1	%	$	2,002		33.3	%
620-679		1,539		34.6	%		2,170		36.2	%
680-739		1,130		25.4	%		1,268		21.1	%
>=740		572		12.9	%		563		9.4	%
Total Structured	$	4,446		100.0	%	$	6,003		100.0	%
Total
<=619	$	2,586		10.0	%	$	3,283		12.6	%
620-679		8,113		31.6	%		8,394		32.2	%
680-739		8,863		34.5	%		8,651		33.2	%
>=740		6,151		23.9	%		5,748		22.0	%
Total Primary	$	25,713		100.0	%	$	26,076		100.0	%
Percentage of primary risk in force
Refinances		33	%				36	%
95.01% LTV and above		19	%				14	%
ARMs
Less than 5 years		18	%				24	%
5 years and longer		9	%				9	%
Pool risk in force ($ in millions)
Prime	$	2,207		72.0	%	$	2,098		76.3	%
Alt-A		301		9.8	%		272		9.9	%
A minus and below		558		18.2	%		380		13.8	%
Total	$	3,066		100.0	%	$	2,750		100.0	%

Page 8

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter Ended and as of March 31, 2007

Exhibit I

	March 31				March 31
	2007		%		2006		%
Total Primary Risk in Force by LTV ($ in millions)
95.01% and above	$	4,795	18.6	%	$	3,680	14.1	%
90.01% to 95.00%		7,965	31.0	%		8,473	32.5	%
85.01% to 90.00%		9,157	35.6	%		9,476	36.3	%
85.00% and below		3,796	14.8	%		4,447	17.1	%
Total	$	25,713	100.0	%	$	26,076	100.0	%
Total Primary Risk in Force by Policy Year ($ in millions)
2003 and prior		6,653	25.9	%	$	9,288	35.6	%
2004		4,198	16.3	%		6,407	24.6	%
2005		6,137	23.9	%		8,015	30.7	%
2006		6,815	26.5	%		2,366	9.1	%
2007		1,910	7.4	%		—	0.0	%
Total	$	25,713	100.0	%	$	26,076	100.0	%
Total Pool Risk in Force by Policy Year ($ in millions)
2003 and prior		1,749	57.0	%	$	1,815	66.0	%
2004		290	9.5	%		293	10.7	%
2005		650	21.2	%		581	21.1	%
2006		285	9.3	%		61	2.2	%
2007		92	3.0	%		—	—
Total Pool risk in Force	$	3,066	100.0	%	$	2,750	100.0	%
Other risk in force (In millions)
Seconds
1st loss	$	555			$	594
2nd loss		605				756
NIMs		783				303
International
1st loss—Hong Kong primary mortgage insurance		353				288
Reinsurance		61				29
Credit default swaps		7,875				7,581
Other
Domestic credit default swaps		212				200
Financial guaranty wrap		—				205
Total other risk in force	$	10,444			$	9,956
Risk to capital ratio—STAT Basis		10.4:1				11.1:1

Page 9

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter Ended and as of March 31, 2007

Exhibit J

	Quarter Ended March 31
	2007			2006
Direct claims paid (In thousands)
Prime	$	33,125		$	30,109
Alt-A		19,998			18,790
A minus and below		29,080			23,391
Seconds and other		13,621			7,903
Total	$	95,824		$	80,193
Average claim paid (In thousands)
Prime	$	28.1		$	26.9
Alt-A		39.7			40.4
A minus and below		29.6			29.1
Seconds		28.8			22.9
Total		30.6			29.4
Loss ratio—GAAP Basis		57.6	%		35.1	%
Expense ratio—GAAP Basis		26.9	%		28.4	%
		84.5	%		63.5	%
Reserve for losses by category (In thousands):
Prime	$	200,262		$	181,001
Alt-A		146,329			135,336
A minus and below		228,066			195,246
Pool Insurance		34,599			36,199
Seconds		38,347			30,144
Other		900			9,188
Reserve for losses, net		648,503			587,114
Reinsurance recoverable		28,188	(1)		—
Total	$	676,691		$	587,114

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

Page 10

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter Ended and as of March 31, 2007

Exhibit K

	March 31 2007		December 31 2006		March 31 2006
Default Statistics
Primary insurance:
Flow
Prime
Number of insured loans	504,941		500,464		501,632
Number of loans in default	14,013		15,141		15,117
Percentage of loans in default	2.78	%	3.03	%	3.01	%
Alt-A
Number of insured loans	65,075		63,469		64,555
Number of loans in default	4,513		4,348		4,468
Percentage of loans in default	6.94	%	6.85	%	6.92	%
A minus and below
Number of insured loans	53,379		52,440		52,700
Number of loans in default	6,704		7,250		6,833
Percentage of loans in default	12.56	%	13.83	%	12.97	%
Total Flow
Number of insured loans	623,395		616,373		618,887
Number of loans in default	25,230		26,739		26,418
Percentage of loans in default	4.05	%	4.34	%	4.27	%
Structured
Prime
Number of insured loans	59,194		62,680		67,353
Number of loans in default	3,231		3,300		2,414
Percentage of loans in default	5.46	%	5.26	%	3.58	%
Alt-A
Number of insured loans	84,050		70,164		63,800
Number of loans in default	3,922		3,647		2,491
Percentage of loans in default	4.67	%	5.20	%	3.90	%
A minus and below
Number of insured loans	34,429		36,597		51,277
Number of loans in default	7,971		9,014		7,859
Percentage of loans in default	23.15	%	24.63	%	15.33	%
Total Structured
Number of insured loans	177,673		169,441		182,430
Number of loans in default	15,124		15,961		12,764
Percentage of loans in default	8.51	%	9.42	%	7.00	%
Total Primary Insurance
Prime
Number of insured loans	564,135		563,144		568,985
Number of loans in default	17,244		18,441		17,531
Percentage of loans in default	3.06	%	3.27	%	3.08	%
Alt-A
Number of insured loans	149,125		133,633		128,355
Number of loans in default	8,435		7,995		6,959
Percentage of loans in default	5.66	%	5.98	%	5.42	%
A minus and below
Number of insured loans	87,808		89,037		103,977
Number of loans in default	14,675		16,264		14,692
Percentage of loans in default	16.71	%	18.27	%	14.13	%
Total Primary Insurance
Number of insured loans	801,068		785,814		801,317
Number of loans in default	40,354	(1)	42,700	(1)	39,182	(1)
Percentage of loans in default	5.04	%	5.43	%	4.89	%
Pool insurance:
Number of loans in default	17,989	(2)	18,681	(2)	15,072	(2)

(1) Includes approximately 1,541, 1,161 and 439 defaults at March 31, 2007, December 31, 2006 and March 31, 2006, respectively, where reserves have not been established because no claim payment is currently anticipated.

(2) Includes approximately 13,036, 13,309 and 9,019 defaults at March 31, 2007, December 31, 2006 and March 31, 2006, 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, 2007

Exhibit L

	Quarter Ended March 31
	2007			2006
Net Premiums Written (In thousands)
Primary and Pool Insurance	$	192,108		$	193,446
Seconds		11,179			10,539
International		3,124			1,920
Net premiums written—insurance		206,411			205,905
Net premiums written—credit derivatives		15,878			17,861
Total Net Premiums Written	$	222,289		$	223,766
Net Premiums Earned (In thousands)
Primary and Pool Insurance	$	167,155		$	175,808
Seconds		9,172			14,910
International		3,916			2,253
Net premiums earned—insurance		180,243			192,971
Net premiums earned—credit derivatives		15,689			9,735
Total Net Premiums Earned	$	195,932		$	202,706
SMART HOME (In millions)
Ceded Premiums Written	$	3.2		$	2.2
Ceded Premiums Earned	$	2.9		$	2.4
Captives
Premiums ceded to captives (In millions)	$	28.1		$	22.9
% of total premiums		14.2	%		11.4	%
NIW subject to captives (In millions)	$	4,994		$	2,776
% of primary NIW		37.8	%		21.7	%
IIF included in captives (1)		34.3	%		32.2	%
RIF included in captives (1)		39.7	%		35.2	%
Persistency (twelve months ended March 31)		69.5	%		58.6	%
	March 31 2007			March 31 2006
SMART HOME
% of Primary RIF included in Smart Home Transactions (1)		9.0	%		7.1	%

(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 12

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter Ended and as of March 31, 2007

ALT-A

Exhibit M

($ in millions)	Quarter Ended March 31
	2007		%		2006		%
Primary New Insurance Written by FICO Score
<=619	$	8	0.1	%	$	6	0.1	%
620-659		589	8.1	%		709	14.1	%
660-679		1,165	15.9	%		634	12.6	%
680-739		3,640	49.8	%		2,324	46.3	%
>=740		1,904	26.1	%		1,349	26.9	%
Total	$	7,306	100.0	%	$	5,022	100.0	%
Primary Risk in Force by FICO Score
<=619	$	22	0.5	%	$	34	0.7	%
620-659		708	15.9	%		937	20.5	%
660-679		723	16.2	%		766	16.8	%
680-739		2,019	45.3	%		1,961	42.9	%
>=740		985	22.1	%		873	19.1	%
Total	$	4,457	100.0	%	$	4,571	100.0	%
Primary Risk in Force by LTV
95.01% and above	$	150	3.4	%	$	161	3.5	%
90.01% to 95.00%		1,225	27.5	%		1,360	29.8	%
85.01% to 90.00%		1,916	43.0	%		1,930	42.2	%
85.00% and below		1,166	26.1	%		1,120	24.5	%
Total	$	4,457	100.0	%	$	4,571	100.0	%
Primary Risk in Force by Policy Year
2003 and prior	$	779	17.5	%	$	1,206	26.4	%
2004		622	14.0	%		1,180	25.8	%
2005		1,056	23.7	%		1,538	33.6	%
2006		1,478	33.1	%		647	14.2	%
2007		522	11.7	%		—	—
Total	$	4,457	100.0	%	$	4,571	100.0	%

Page 13

Radian Group Inc.

Financial Services Supplemental Information

For the Quarter Ended and as of March 31, 2007

Exhibit N

	Quarter Ended March 31
(In thousands )	2007			2006
Investment in Affiliates-Selected Information
C-BASS
Balance, beginning of period	$	451,395		$	364,364
Net (loss) income for period		(6,804	)		30,026
Dividends received		—			7,347
Balance, end of period	$	444,591		$	387,043
Sherman
Balance, beginning of period	$	167,412		$	81,753
Net income for period		29,576			28,315
Dividends received		51,512			60,515
Other comprehensive income		(1,778	)		55
Balance, end of period	$	143,698		$	49,608
Portfolio Information:
C-BASS
Servicing portfolio	$	59,600,000		$	53,340,000
Total assets		6,867,894			4,704,015
Servicing income		43,126			74,069
Net interest income		78,852			65,040
Total revenues		38,981			171,124
Sherman
Total assets	$	1,234,046		$	1,010,930
Net revenues	$	251,995		$	237,672

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.

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 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, consumer confidence, or changes in credit spreads; changes in investor perception of the strength of private mortgage insurers or financial guaranty providers; 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 financial guaranty insurance policies; material changes in persistency rates of Radian’s mortgage insurance policies; changes in 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 inquiries that we and other mortgage insurers have received from the New York Insurance Department and public reports that other state insurance departments are investigating or planning to 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; legal and other limitations on the amount of dividends we may receive from our insurance subsidiaries; international expansion of our mortgage insurance and financial guaranty businesses into new markets and risks associated with our international business activities; and risks and uncertainties associated with our proposed merger with MGIC Investment Corporation, including, without limitation: the ability to complete the transaction on the proposed terms and schedule; the risk that the two companies and their businesses will not be integrated successfully; customer attrition and disruption from the transaction making it more difficult to maintain relationships with customers, employees or other business relationships; the risk that the cost savings and any other synergies from the transaction may not be fully realized or may take longer to realize than expected; the risk that potential sales of assets in connection with the merger may negatively impact the financial performance of the combined company; and the possibility that

the merger may not be completed, whether due to the failure to receive the requisite stockholder or regulatory approvals or otherwise, which may have an adverse effect on our customers, employees and other business relationships, and may have a materially adverse impact on our financial results and prospects. 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 of our annual report on Form 10-K for the year ended December 31, 2006 and in the joint proxy statement/prospectus for our 2007 annual meeting. 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.