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): May 12, 2008

RADIAN GROUP INC.

(Exact name of registrant as specified in its charter)

DELAWARE	1-11356	23-691170
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

1601 MARKET STREET, PHILADELPHIA, PENNSYLVANIA	19103
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (215) 231-1000

NOT APPLICABLE

(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:

¨ 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 May 12, 2008, Radian Group Inc. issued a news release, announcing its financial results for the quarter ended March 31, 2008. 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.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.	Description
*99.1	Radian Group Inc. News Release dated May 12, 2008.

* Furnished herewith.

2

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: May 12, 2008	By:	/s/ C. Robert Quint
		C. Robert Quint Chief Financial Officer

3

EXHIBIT INDEX

Exhibit No.	Description
*99.1	Radian Group Inc. News Release dated May 12, 2008.

* Furnished herewith.

4

EX-99.1

Exhibit 99.1

1601 Market Street

Philadelphia, Pennsylvania

19103-2337

800 523.1988

215 564.6600

News Release

Contact:
For investors:	Terri Williams-Perry – phone: 215 231.1486
	Email: terri.williams-perry@radian.biz
For the media:	Rick Gillespie – phone: 215 231.1061
	Email: rick.gillespie@radian.biz
	Steve Frankel / Tim Lynch
	Joele Frank, Wilkinson Brimmer Katcher
	212 355 4449

Radian Reports First Quarter Net Income of $195.6 Million

Results Reflect After-Tax Net Unrealized Mark-To-Market Gains of $410.9 Million

PHILADELPHIA, May 12, 2008 - Radian Group Inc. (NYSE: RDN) (the “Company”) today reported net income of $195.6 million and diluted earnings per share of $2.44 for the quarter ended March 31, 2008. Book value per share at March 31, 2008 was $35.64. Excluding the impact of net unrealized gains on derivatives and hybrid securities, the Company’s net operating loss was $215.2 million and the net operating loss per share was $2.69 for the quarter. “Net operating loss” and “net operating loss per share” are non-GAAP financial measures. A discussion of these measures, including a reconciliation to pre tax income, is included below.

Radian’s financial results for the first quarter of 2008 were significantly impacted by unrealized gains and losses on the Company’s hybrid securities and derivative assets and liabilities. Credit spreads on underlying collateral, both corporate credit spreads and asset-backed spreads, widened significantly during the quarter, which resulted in large unrealized losses on these

1601 Market Street

Philadelphia, Pennsylvania

19103-2337

800 523.1988

215 564.6600

positions. Offsetting these losses, however, is the impact of a change to the Company’s valuation methodology, which is adopted prospectively, that incorporates the market’s perception of Radian’s non-performance risk. This change in methodology is required under the provisions of SFAS No. 157. Given the significant widening of Radian’s credit default swap spread over the past year, the reduction in the valuation of the Company’s derivative liabilities related to non-performance risk more than offset the credit spread widening on underlying collateral for the current quarter. Below is a table with the detail of the impact on Radian’s quarterly results of underlying collateral credit spread widening and the aggregate impact of incorporation of Radian’s non-performance risk on our derivative instrument fair values.

	1Q08			1Q07
Pretax Income	$	284.6		$	158.2
Removal of effect of unrealized (gains) and losses:
Hybrid Securities		55.9			3.6
Financial Guaranty credit derivatives		1,330.0			(25.1	)
Mortgage Insurance domestic and intl. credit default swaps		32.3			12.7
NIMS		50.8			(1.4	)
Soft capital put options on committed preferred securities		(42.8	)		—
Isolated impact of SFAS No. 157 fair value methodology change related specifically to Radian’s non-performance risk		(2,058.3	)		—
Pretax operating (loss) income		(347.5	)		148.0
Income tax (benefit) provision		(132.3	)		41.1
Net operating (loss) income	$	(215.2	)	$	106.9
Net operating (loss) income per share	$	(2.69	)	$	1.34

1601 Market Street

Philadelphia, Pennsylvania

19103-2337

800 523.1988

215 564.6600

“We have seen the continuation of weak housing and credit markets and these conditions have impacted results in our mortgage insurance and financial guaranty businesses,” said S.A. Ibrahim, Chief Executive Officer of Radian. “As previously announced, we are considering a range of alternatives to strengthen our capital position, while at the same time considering the alternatives for our financial guaranty business which offer the best long term value. Our liquidity and claims paying capabilities remain strong across both business units.”

In the mortgage insurance business, paid claims during the first quarter were in line with the Company’s guidance. As of March 31, 2008, Radian had $1.7 billion in mortgage insurance loss reserves. Newly written product mix in the mortgage insurance business continued to shift significantly to prime loans, with 90% of production during the first quarter made up of prime business, up from 77% during the fourth quarter.

Mr. Ibrahim continued, “By focusing on prime loans, working closely with the Government Sponsored Enterprises and managing our existing Risk-In-Force exposure, Radian will continue to address the significant challenges in the housing markets and overall economic environment.”

Radian’s financial guaranty business continues to maintain a strong capital position with limited exposure to vulnerable asset classes. Although new written premiums declined approximately 21% from the first quarter of 2007, reinsurance business remained strong.

Radian will discuss each of these items in its conference call today, Monday, May 12, 2008, at 10:00 a.m. Eastern time. The conference call will be broadcast live over the

1601 Market Street

Philadelphia, Pennsylvania

19103-2337

800 523.1988

215 564.6600

internet at http://www.ir.radian.biz/phoenix.zhtml?c=112301&p=irol-audioarchives or at http://www.radian.biz >News. The call may also be accessed by dialing 800-230-1085 inside the U.S., or 612-288-0337 for international callers, using passcode 921836 or by referencing Radian.

A replay of the webcast will be available at the Radian website approximately two hours after the live broadcast ends for a period of one year. A replay of the conference call will be available two and a half hours after the call ends for one week, using the following dial-in numbers and passcode: 800-475-6701 inside the U.S., or 320-365-3844 for international callers, passcode 921836.

Non-GAAP Measures

The table set forth above reconciles “net operating loss” and “net operating loss per share” to pretax income. In order to assist investors in understanding our quarterly operating results, which recently have been impacted significantly by changes in market values of our derivative and hybrid securities portfolios, we define our net operating earnings to be our GAAP pretax income, adjusted to exclude unrealized gains and losses on these portfolios that relate to market risk, as tax-affected. Net operating earnings is not a substitute for pretax income computed in accordance with GAAP, but is a useful measure of performance used by management, equity analysts and investors because it allows a more consistent period-to-period comparison of our earnings without the effects of unrealized gains and losses on derivatives and hybrid securities. The definition of operating earnings used by us may differ from definitions of operating earnings used by other companies.

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 credit-based consumer asset businesses. Additional information may be found at www.radian.biz.

1601 Market Street

Philadelphia, Pennsylvania

19103-2337

800 523.1988

215 564.6600

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

Financial Results and Supplemental Information Contents (Unaudited)

Exhibit A:	Condensed Consolidated Statements of Income
Exhibit B:	Condensed Consolidated Balance Sheets
Exhibit C:	Segment Information Quarter Ended March 31, 2008
Exhibit D:	Segment Information Quarter Ended March 31, 2007
Exhibit E:	Financial Guaranty Insurance Supplemental Information - Quarter Ended and as of March 31, 2008
Exhibit F:	Financial Guaranty Insurance Supplemental Information - Quarter Ended and as of March 31, 2008
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

Radian Group Inc. and Subsidiaries

Condensed Consolidated Statements of Income

Exhibit A

	Quarter Ended March 31
(In thousands, except per-share data)	2008			2007
Revenues:
Net premiums written - insurance	$	244,306		$	248,430
Net premiums earned - insurance	$	241,921		$	214,507
Net investment income		65,979			60,996
Net (losses) gains on securities		(54,884	)		13,745
Change in fair value of derivative instruments (1)		707,809			48,417
Other income		3,614			3,818
Total revenues		964,439			341,483
Expenses:
Provision for losses		582,711			107,042
Provision for second-lien premium deficiency		18,090			—
Policy acquisition costs		23,906			28,254
Other operating expenses		55,141			54,367
Merger expenses		—			3,328
Interest expense		12,493			13,056
Total expenses		692,341			206,047
Equity in net income of affiliates		12,526			22,772
Pretax income		284,624			158,208
Income tax provision		88,986			44,741
Net income	$	195,638		$	113,467
Diluted net income per share (2)	$	2.44		$	1.42
(1)    Includes premiums earned on derivative contracts
(2)    Weighted average shares outstanding (in thousands)
Average common shares outstanding		79,930			79,428
Increase in shares-common stock equivalents-diluted basis		110			652
Weighted average shares outstanding (in thousands)		80,040			80,080

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 2008		December 31 2007
Assets:
Cash and investments	$	6,740,985	$	6,611,836
Investments in affiliates		116,969		104,354
Deferred policy acquisition costs		239,400		234,955
Prepaid federal income taxes		536,343		793,486
Other assets		620,328		465,558
Total assets	$	8,254,025	$	8,210,189
Liabilities and stockholders’ equity:
Unearned premiums	$	1,074,589	$	1,094,710
Reserve for losses and loss adjustment expenses		1,902,128		1,598,756
Reserve for second-lien premium deficiency		213,736		195,646
Long-term debt and other borrowings		959,244		953,524
Variable interest entity debt		100,219		—
Deferred income taxes		52,360		26,705
Derivative liabilities		703,405		1,305,665
Other liabilities		380,988		314,447
Total liabilities		5,386,669		5,489,453
Common stock		98		98
Additional paid-in capital		446,211		442,312
Retained earnings		2,375,189		2,181,191
Accumulated other comprehensive income		45,858		97,135
Total common stockholders’ equity		2,867,356		2,720,736
Total liabilities and stockholders’ equity	$	8,254,025	$	8,210,189
Book value per share	$	35.64	$	33.83
Treasury Stock Repurchases (Year-to-Date for Periods Presented)
Total number of shares repurchased		—		398,645
Average price paid per share		—	$	57.25
Total cost of repurchased shares		—	$	22,822,537

Page 2

Radian Group Inc. and Subsidiaries

Segment Information

Quarter Ended March 31, 2008

Exhibit C

(In thousands)	Mortgage Insurance			Financial Guaranty			Financial Services			Total
Revenues:
Net premiums written - insurance	$	211,251		$	33,055		$	—		$	244,306
Net premiums earned - insurance	$	204,265		$	37,656		$	—		$	241,921
Net investment income		38,845			27,120			14			65,979
Net losses on securities		(36,733	)		(18,149	)		(2	)		(54,884	)
Change in fair value of derivative instruments		71,769			636,040			—			707,809
Other income		3,491			121			2			3,614
Total revenues		281,637			682,788			14			964,439
Expenses:
Provision for losses		571,008			11,703			—			582,711
Provision for second-lien premium deficiency		18,090			—			—			18,090
Policy acquisition costs		13,460			10,446			—			23,906
Other operating expenses		34,170			20,738			233			55,141
Interest expense		7,090			5,154			249			12,493
Total expenses		643,818			48,041			482			692,341
Equity in net income of affiliates		—			—			12,526			12,526
Pretax (loss) income		(362,181	)		634,747			12,058			284,624
Income tax (benefit) provision		(135,725	)		219,219			5,492			88,986
Net (loss) income	$	(226,456	)	$	415,528		$	6,566		$	195,638
Assets	$	5,001,689		$	3,133,958		$	118,378		$	8,254,025
Total investments		4,051,596			2,508,351			—			6,559,947
Deferred policy acquisition costs		62,860			176,540			—			239,400
Reserve for losses and loss adjustment expenses		1,741,169			160,959			—			1,902,128
Derivative liabilities		353,559			349,846			—			703,405
Unearned premiums		365,161			709,428			—			1,074,589
Stockholders’ equity		1,328,594			1,412,429			126,333			2,867,356

Page 3

Radian Group Inc. and Subsidiaries

Segment Information

Quarter Ended March 31, 2007

Exhibit D

(In thousands)	Mortgage Insurance		Financial Guaranty			Financial Services			Total
Revenues:
Net premiums written - insurance	$	206,411	$	42,019		$	—		$	248,430
Net premiums earned - insurance	$	180,243	$	34,264		$	—		$	214,507
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		4,338		44,079			—			48,417
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
Income tax provision		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
Total investments		3,567,581		2,378,387			—			5,945,968
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 4

Radian Group Inc.

Financial Guaranty Supplemental Information

For the Quarter Ended and as of March 31, 2008

Exhibit E

	Quarter Ended March 31
($ in thousands, except ratios)	2008			2007
Net Premiums Written: (1)
Public finance direct	$	5,603		$	12,780
Public finance reinsurance		17,541			18,154
Structured direct		4,182			5,247
Structured reinsurance		5,442			5,912
Trade credit reinsurance		287			(74	)
Total Net Premiums Written - insurance	$	33,055		$	42,019
Net Premiums Earned: (1)
Public finance direct	$	17,810		$	11,585
Public finance reinsurance		9,870			11,100
Structured direct		3,882			4,691
Structured reinsurance		5,599			6,194
Trade credit reinsurance		495			694
Total Net Premiums Earned - insurance	$	37,656		$	34,264
Refundings included in earned premium	$	11,657		$	6,586
Claims paid:
Trade credit reinsurance	$	586		$	2,646
Other		101,456	(2)		(69	)
Conseco		2,068			3,108
Total	$	104,110		$	5,685
Incurred losses:
Trade credit reinsurance	$	(1,655	)	$	(3,136	)
Other		13,358			(2,676	)
Total	$	11,703		$	(5,812	)
Loss ratio - GAAP Basis		22.8	%		(10.9	)%
Expense ratio - GAAP Basis (3)		60.7	%		48.8	%
		83.5	%		37.9	%
Net payments (receipts) under derivatives contracts	$	—		$	(11,228	)

(1) Premiums written and earned on credit derivatives for the quarter ended March 31, 2008 were $12.9 million and $13.7 million, respectively, compared to $13.3 million and $18.9 million, respectively, for the quarter ended March 31, 2007. Premiums earned on credit derivatives are included in change of fair value of derivative instruments.

(2) Includes a $100 million payment related to one credit that is a CDO of an ABS that was fully reserved for in 2007.

(3) Excludes merger expenses in 2007.

Page 5

Radian Group Inc.

Financial Guaranty Supplemental Information

For the Quarter Ended and as of March 31, 2008

Exhibit F

($ in thousands, except ratios)	March 31 2008			December 31 2007			March 31 2007
Capital and surplus	$	1,097,250		$	1,158,537		$	1,042,548
Contingency reserve		464,655			433,296			357,176
Qualified statutory capital		1,561,905			1,591,833			1,399,724
Unearned premium reserve		882,627			886,024			837,024
Loss and loss expense reserve		58,207			61,038			88,253
Total statutory policyholders’ reserves		2,502,739			2,538,895			2,325,001
Present value of installment premiums		443,408			461,806			377,105
Reinsurance and soft capital facilities		150,000			150,000			150,000
Total statutory claims paying resources	$	3,096,147		$	3,150,701		$	2,852,106
Net debt service outstanding	$	165,931,040		$	164,346,659		$	155,568,589
Capital leverage ratio (1)		106			103			111
Claims paying leverage ratio (2)		54			52			55
Net par outstanding by product:
Public finance direct	$	18,460,669		$	18,228,946		$	16,590,493
Public finance reinsurance		44,404,128			43,822,781			39,311,697
Structured direct		47,634,388			47,878,168			52,945,169
Structured reinsurance		6,284,246			6,091,717			5,261,220
Total	$	116,783,431		$	116,021,612		$	114,108,579
Reinsurance business net par outstanding:
Treaty		60	%		59	%		59	%
Facultative		40	%		41	%		41	%
Reserve for losses and LAE
Specific	$	27,056		$	26,791		$	33,011
Conseco		20,457			22,526			30,866
Non-specific		113,446			203,987			111,894
Total	$	160,959		$	253,304		$	175,771

(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, 2008

Exhibit G

	Quarter Ended March 31
($ in millions)	2008			%		2007			%
Primary New Insurance Written
Flow	$	9,284		90.2	%	$	7,049		53.3	%
Structured		1,013		9.8	%		6,178		46.7	%
Total Primary	$	10,297		100.0	%	$	13,227		100.0	%
Flow
Prime	$	8,208		88.4	%	$	5,050		71.6	%
Alt-A		583		6.3	%		1,401		19.9	%
A minus and below		493		5.3	%		598		8.5	%
Total Flow	$	9,284		100.0	%	$	7,049		100.0	%
Structured
Prime	$	1,012		99.9	%	$	93		1.5	%
Alt-A		1		0.1	%		5,905		95.6	%
A minus and below		—		—			180		2.9	%
Total Structured	$	1,013		100.0	%	$	6,178		100.0	%
Total
Prime	$	9,220		89.5	%	$	5,143		38.9	%
Alt-A		584		5.7	%		7,306		55.2	%
A minus and below		493		4.8	%		778		5.9	%
Total Primary	$	10,297		100.0	%	$	13,227		100.0	%
Total Primary New Insurance Written by FICO Score
Flow
<=619	$	265		2.9	%	$	486		6.9	%
620-679		1,938		20.9	%		2,255		32.0	%
680-739		3,615		38.9	%		2,479		35.2	%
>=740		3,466		37.3	%		1,829		25.9	%
Total Flow	$	9,284		100.0	%	$	7,049		100.0	%
Structured
<=619	$	—		—	%	$	126		2.0	%
620-679		10		1.0	%		1,376		22.3	%
680-739		369		36.4	%		3,068		49.7	%
>=740		634		62.6	%		1,608		26.0	%
Total Structured	$	1,013		100.0	%	$	6,178		100.0	%
Total
<=619	$	265		2.6	%	$	612		4.6	%
620-679		1,948		18.9	%		3,631		27.5	%
680-739		3,984		38.7	%		5,547		41.9	%
>=740		4,100		39.8	%		3,437		26.0	%
Total Primary	$	10,297		100.0	%	$	13,227		100.0	%
Percentage of primary new insurance written
Refinances		40	%				51	%
95.01% LTV and above		20	%				16	%
ARMs
Less than 5 years		1	%				42	%
5 years and longer		6	%				5	%
Primary risk written
Flow	$	2,316		89.7	%	$	1,746		90.0	%
Structured		266		10.3	%		194		10.0	%
Total Primary	$	2,582		100.0	%	$	1,940		100.0	%
Pool risk written	$	31				$	89
Other risk written
Seconds
1st loss	$	—				$	3
2nd loss		—					21
NIMs		—					268
International
1st loss-Hong Kong primary mortgage insurance		51					19
Reinsurance		19					17
Total other risk written	$	70				$	328

Page 7

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter Ended and as of March 31, 2008

Exhibit H

	March 31					March 31
($ in millions)	2008			%		2007			%
Primary insurance in force
Flow	$	110,020		74.9	%	$	85,649		71.5	%
Structured		36,929		25.1	%		34,063		28.5	%
Total Primary	$	146,949		100.0	%	$	119,712		100.0	%
Prime	$	99,721		67.9	%	$	77,414		64.7	%
Alt-A		34,949		23.8	%		31,023		25.9	%
A minus and below		12,279		8.3	%		11,275		9.4	%
Total Primary	$	146,949		100.0	%	$	119,712		100.0	%
Primary risk in force
Flow	$	27,751		84.6	%	$	21,267		82.7	%
Structured		5,041		15.4	%		4,446		17.3	%
Total Primary	$	32,792		100.0	%	$	25,713		100.0	%
Flow
Prime	$	21,810		78.6	%	$	16,653		78.3	%
Alt-A		3,788		13.6	%		3,015		14.2	%
A minus and below		2,153		7.8	%		1,599		7.5	%
Total Flow	$	27,751		100.0	%	$	21,267		100.0	%
Structured
Prime	$	2,577		51.1	%	$	1,797		40.4	%
Alt-A		1,554		30.8	%		1,442		32.4	%
A minus and below		910		18.1	%		1,207		27.2	%
Total Structured	$	5,041		100.0	%	$	4,446		100.0	%
Total
Prime	$	24,387		74.4	%	$	18,450		71.8	%
Alt-A		5,342		16.3	%		4,457		17.3	%
A minus and below		3,063		9.3	%		2,806		10.9	%
Total Primary	$	32,792		100.0	%	$	25,713		100.0	%
Total Primary Risk in Force by FICO Score
Flow
<=619	$	1,650		5.9	%	$	1,381		6.5	%
620-679		8,262		29.8	%		6,574		30.9	%
680-739		10,269		37.0	%		7,733		36.4	%
>=740		7,570		27.3	%		5,579		26.2	%
Total Flow	$	27,751		100.0	%	$	21,267		100.0	%
Structured
<=619	$	851		16.9	%	$	1,205		27.1	%
620-679		1,380		27.4	%		1,539		34.6	%
680-739		1,517		30.1	%		1,130		25.4	%
>=740		1,293		25.6	%		572		12.9	%
Total Structured	$	5,041		100.0	%	$	4,446		100.0	%
Total
<=619	$	2,501		7.6	%	$	2,586		10.0	%
620-679		9,642		29.4	%		8,113		31.6	%
680-739		11,786		36.0	%		8,863		34.5	%
>=740		8,863		27.0	%		6,151		23.9	%
Total Primary	$	32,792		100.0	%	$	25,713		100.0	%
Percentage of primary risk in force
Refinances		31	%				33	%
95.01% LTV and above		24	%				19	%
ARMs
Less than 5 years		11	%				18	%
5 years and longer		9	%				9	%
Pool risk in force
Prime	$	2,113		70.6	%	$	2,207		72.0	%
Alt-A		292		9.7	%		301		9.8	%
A minus and below		590		19.7	%		558		18.2	%
Total	$	2,995		100.0	%	$	3,066		100.0	%

Page 8

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter Ended and as of March 31, 2008

Exhibit I

	March 31					March 31
($ in millions)	2008			%		2007		%
Total Primary Risk in Force by LTV
95.01% and above	$	7,926		24.2	%	$	4,795	18.6	%
90.01% to 95.00%		10,079		30.7	%		7,965	31.0	%
85.01% to 90.00%		11,102		33.9	%		9,157	35.6	%
85.00% and below		3,685		11.2	%		3,796	14.8	%
Total	$	32,792		100.0	%	$	25,713	100.0	%
Total Primary Risk in Force by Policy Year
2004 and prior	$	8,408		25.6	%	$	10,851	42.2	%
2005		4,805		14.6	%		6,137	23.9	%
2006		5,728		17.5	%		6,815	26.5	%
2007		11,300		34.5	%		1,910	7.4	%
2008		2,551		7.8	%		—	—
Total	$	32,792		100.0	%	$	25,713	100.0	%
Total Pool Risk in Force by Policy Year
2004 and prior	$	1,864		62.2	%	$	2,039	66.5	%
2005		592		19.8	%		650	21.2	%
2006		261		8.7	%		285	9.3	%
2007		250		8.4	%		92	3.0	%
2008		28		0.9	%		—	—
Total Pool risk in Force	$	2,995		100.0	%	$	3,066	100.0	%
Other risk in force
Seconds
1st loss	$	336				$	555
2nd loss		507					605
NIMS		522					783
International
1st loss-Hong Kong primary mortgage insurance		517					353
Reinsurance		125					61
Credit default swaps		8,872	(1)				7,875
Other
Domestic credit default swaps		212					212
Total other risk in force	$	11,091				$	10,444
Risk to capital ratio-STAT Basis		17.7:1					10.4:1
Risk to capital ratio-STAT Basis excluding AAA-rated CDS		14.1:1					8.4:1

(1) Due to foreign currency changes since we underwrote such risk, the current U.S. dollar-denominated risk has increased.

Page 9

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter Ended and as of March 31, 2008

Exhibit J

	Quarter Ended March 31
($ in thousands)	2008			2007
Direct claims paid
Prime	$	60,658		$	33,125
Alt-A		35,732			19,998
A minus and below		48,361			29,080
Seconds and other		45,437			13,621
Total	$	190,188		$	95,824
Average claim paid
Prime	$	36.8		$	28.1
Alt-A		49.6			39.7
A minus and below		37.2			29.6
Seconds		34.6			28.8
Total	$	38.2		$	30.6
Loss ratio - GAAP Basis		264.7	%		57.6	%
Expense ratio - GAAP Basis (2)		22.1	%		26.9	%
		286.8	%		84.5	%
Reserve for losses by category
Prime	$	479,653		$	200,262
Alt-A		598,706			146,329
A minus and below		391,426			228,066
Pool insurance		56,893			34,599
Seconds		176,121			38,347
Other		1,485			900
Reserve for losses, net		1,704,284			648,503
Reinsurance recoverable		36,885	(1)		28,188	(1)
Total	$	1,741,169		$	676,691

(1) Reinsurance recoverable on ceded losses.

(2) Excludes merger expenses.

Page 10

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter Ended and as of March 31, 2008

Exhibit K

	March 31 2008		December 31 2007		March 31 2007
Default Statistics
Primary insurance:
Flow
Prime
Number of insured loans	582,261		565,563		504,941
Number of loans in default	22,806		20,632		14,013
Percentage of loans in default	3.92	%	3.65	%	2.78	%
Alt-A
Number of insured loans	73,672		74,559		65,075
Number of loans in default	10,014		7,980		4,513
Percentage of loans in default	13.59	%	10.70	%	6.94	%
A minus and below
Number of insured loans	64,193		63,853		53,379
Number of loans in default	10,411		10,087		6,704
Percentage of loans in default	16.22	%	15.80	%	12.56	%
Total Flow
Number of insured loans	720,126		703,975		623,395
Number of loans in default	43,231		38,699		25,230
Percentage of loans in default	6.00	%	5.50	%	4.05	%
Structured
Prime
Number of insured loans	72,264		64,789		59,194
Number of loans in default	5,434		4,707		3,231
Percentage of loans in default	7.52	%	7.27	%	5.46	%
Alt-A
Number of insured loans	87,325		97,526		84,050
Number of loans in default	12,056		8,783		3,922
Percentage of loans in default	13.81	%	9.01	%	4.67	%
A minus and below
Number of insured loans	26,342		28,747		34,429
Number of loans in default	8,404		8,659		7,971
Percentage of loans in default	31.90	%	30.12	%	23.15	%
Total Structured
Number of insured loans	185,931		191,062		177,673
Number of loans in default	25,894		22,149		15,124
Percentage of loans in default	13.93	%	11.59	%	8.51	%
Total Primary Insurance
Prime
Number of insured loans	654,525		630,352		564,135
Number of loans in default	28,240		25,339		17,244
Percentage of loans in default	4.31	%	4.02	%	3.06	%
Alt-A
Number of insured loans	160,997		172,085		149,125
Number of loans in default	22,070		16,763		8,435
Percentage of loans in default	13.71	%	9.74	%	5.66	%
A minus and below
Number of insured loans	90,535		92,600		87,808
Number of loans in default	18,815		18,746		14,675
Percentage of loans in default	20.78	%	20.24	%	16.71	%
Total Primary Insurance
Number of insured loans	906,057		895,037		801,068
Number of loans in default	69,125	(1)	60,848	(1)	40,354	(1)
Percentage of loans in default	7.63	%	6.80	%	5.04	%
Pool insurance:
Number of loans in default	26,983	(2)	26,526	(2)	17,989	(2)

(1) Includes 1,504, 2,595 and 1,541 defaults at March 31, 2008, December 31, 2007 and March 31, 2007, respectively, where reserves have not been established because no claim payment is currently anticipated.

(2) Includes 20,417, 20,193 and 13,036 defaults at March 31, 2008, December 31, 2007 and March 31, 2007, 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, 2008

Exhibit L

	Quarter Ended March 31
	2008			2007
Net Premiums Written (In thousands) (1)
Primary and Pool Insurance	$	200,477		$	192,108
Seconds		3,481			11,179
International		7,293			3,124
Total Net Premiums Written - insurance		211,251			206,411
Net Premiums Earned (In thousands) (1)
Primary and Pool Insurance	$	193,483		$	167,155
Seconds		6,164			9,172
International		4,618			3,916
Total Net Premiums Earned - insurance	$	204,265		$	180,243
SMART HOME (In millions)
Ceded Premiums Written	$	3.2		$	3.2
Ceded Premiums Earned	$	3.2		$	2.9
Captives
Premiums ceded to captives (In millions)	$	35.7		$	28.1
% of total premiums		15.4	%		14.2	%
NIW subject to captives (In millions)	$	3,986		$	4,994
% of primary NIW		38.7	%		37.8	%
IIF included in captives (2)		37.4	%		34.3	%
RIF included in captives (2)		42.2	%		39.7	%
Persistency (twelve months ended March 31)		77.5	%		69.5	%
	March 31 2008			March 31 2007
SMART HOME
% of Primary RIF included in Smart Home Transactions (2)		5.0	%		9.0	%

(1) Premiums written and earned on credit derivatives for the quarter ended March 31, 2008, were $8.9 million and $11.5 million, respectively, compared to $15.9 million and $15.7 million, respectively, for the quarter ended March 31, 2007. Premiums earned on credit derivatives are included in change of fair value of derivative instruments.

(2) 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, 2008

ALT-A

Exhibit M

	Quarter Ended March 31
($ in millions)	2008		%		2007		%
Primary New Insurance Written by FICO Score
<=619	$	1	0.2	%	$	8	0.1	%
620-659		9	1.5	%		589	8.1	%
660-679		31	5.3	%		1,165	15.9	%
680-739		301	51.6	%		3,640	49.8	%
>=740		242	41.4	%		1,904	26.1	%
Total	$	584	100.0	%	$	7,306	100.0	%
Primary Risk in Force by FICO Score
<=619	$	37	0.7	%	$	22	0.5	%
620-659		686	12.8	%		708	15.9	%
660-679		793	14.8	%		723	16.2	%
680-739		2,540	47.6	%		2,019	45.3	%
>=740		1,286	24.1	%		985	22.1	%
Total	$	5,342	100.0	%	$	4,457	100.0	%
Primary Risk in Force by LTV
95.01% and above	$	372	6.9	%	$	150	3.4	%
90.01% to 95.00%		1,398	26.2	%		1,225	27.5	%
85.01% to 90.00%		2,199	41.2	%		1,916	43.0	%
85.00% and below		1,373	25.7	%		1,166	26.1	%
Total	$	5,342	100.0	%	$	4,457	100.0	%
Primary Risk in Force by Policy Year
2004 and prior	$	1,044	19.5	%	$	1,401	31.4	%
2005		790	14.8	%		1,056	23.7	%
2006		1,225	22.9	%		1,478	33.2	%
2007		2,146	40.2	%		522	11.7	%
2008		137	2.6	%		—	—	%
Total	$	5,342	100.0	%	$	4,457	100.0	%

Page 13

Radian Group Inc.

Financial Services Supplemental Information

For the Quarter Ended and as of March 31, 2008

Exhibit N

	Quarter Ended March 31
(In thousands)	2008		2007
Investment in Affiliates-Selected Information
C-BASS
Balance, beginning of period	$	—	$	451,395
Net income (loss) for period		—		(6,804	)
Dividends received		—		—
Balance, end of period	$	—	$	444,591
Sherman
Balance, beginning of period	$	104,315	$	167,412
Net income for period		12,526		29,576
Dividends received		—		51,512
Other comprehensive income (loss)		88		(1,778	)
Balance, end of period	$	116,929	$	143,698
Portfolio Information:
C-BASS
Servicing portfolio		N/A	$	59,600,000
Total assets		N/A		6,867,894
Servicing income		N/A		43,126
Net interest income		N/A		78,852
Total revenues		N/A		38,981
Sherman
Total assets	$	2,383,119	$	1,234,046
Net revenues	$	285,965	$	283,788

Radian owns a 46% interest in C-BASS and a 21.8% interest in Sherman. Prior to September 2007, we owned 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 in this news release that address events, developments or results 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, which include, without limitation, projections regarding our future performance and financial condition are made on the basis of management’s current views and assumptions with respect to future events. Any forward-looking statement is not a guarantee of future performance and actual results could differ materially from those contained in the forward looking information. The forward-looking statements, as well as our prospects as a whole, are subject to risks and uncertainties, including the following:

• actual or perceived changes in general financial and political conditions, such as extended national or regional economic recessions, changes in housing demand or mortgage originations, changes in housing values (in particular, further deterioration in the housing, mortgage and related credit markets, which would harm our future consolidated results of operations and could cause losses for our mortgage insurance business to be worse than expected), changes in the liquidity in the capital markets and the further contraction of credit markets, population trends and changes in household formation patterns, changes in unemployment rates, changes or volatility in interest rates or consumer confidence, changes in credit spreads, changes in the way investors perceive the strength of private mortgage insurers or financial guaranty providers, investor concern over the credit quality and specific risks faced by the particular businesses, municipalities or pools of assets covered by our insurance;

• actual or perceived economic changes or catastrophic events in geographic regions (both domestic and international) where our mortgage insurance or financial guaranty insurance in force is more concentrated;

• our ability to successfully obtain additional capital to support our long-term liquidity needs and to protect our credit and financial strength ratings;

• a decrease in the volume of home mortgage originations due to reduced liquidity in the lending market, tighter underwriting standards and a deterioration in housing markets throughout the U.S.;

• a decrease in the volume of the municipal bonds, and other public finance and structured finance transactions that we insure, or a decrease in the volume of such transactions for which issuers or investors seek or demand financial guaranty insurance;

• the loss of a customer for whom we write a significant amount of mortgage insurance or financial guaranty insurance or the influence of large customers;

• reduction in the volume of reinsurance business available to us from one or more of our primary financial guaranty insurer customers due to adverse changes in their ability to generate new profitable direct financial guaranty insurance or their need for us to reinsure their risk;

• disruption in the servicing of mortgages covered by our insurance policies;

• the aging of our mortgage insurance portfolio and changes in severity or frequency of losses associated with certain of our products that are riskier than traditional mortgage insurance or financial guaranty insurance policies;

• the performance of our insured portfolio of higher risk loans, such as Alternative-A (“Alt-A”) and subprime loans, and adjustable rate products, such as adjustable rate mortgages and interest-only mortgages, which have resulted in increased losses in 2007 and 2008 and may result in further losses;

• reduced opportunities for loss mitigation in markets where housing values fail to appreciate or begin to decline;

• changes in persistency rates of our mortgage insurance policies caused by changes in refinancing activity, in the rate of appreciation or depreciation of home values and changes in the mortgage insurance cancellation requirements of mortgage lenders and investors;

• downgrades or threatened downgrades of, or other ratings actions with respect to, our credit ratings or the insurance financial strength ratings assigned by the major rating agencies to any of our rated insurance subsidiaries at any time (in particular, our credit rating and the financial strength ratings of our mortgage insurance subsidiaries that are currently under review for possible downgrade);

• heightened competition for our mortgage insurance business from others such as the Federal Housing Administration and the Veterans’ Administration or other private mortgage insurers (in particular those that have been assigned higher ratings from the major ratings agencies), from alternative products such as “80-10-10” loans or other forms of simultaneous second loan structures used by mortgage lenders, from investors using forms of credit enhancement other than mortgage insurance as a partial or complete substitution for private mortgage insurance and from mortgage lenders that demand increased participation in revenue sharing arrangements such as captive reinsurance arrangements;

• changes in the charters or business practices of Federal National Mortgage Association and Freddie Mac, the largest purchasers of mortgage loans that we insure, and our ability to retain our “Top Tier” eligibility requirement from both Freddie Mac and Fannie Mae;

• failure to bring the amendment to our credit facility, dated April 30, 2008, effective by May 15, 2008, which would result in a reinstatement of the ratings covenant under our credit facility;

• heightened competition for financial guaranty business from other financial guaranty insurers, including those recently downgraded to ratings equal to or lower than our ratings, from other forms of credit enhancement such as letters of credit, guaranties and credit default swaps provided by foreign and domestic banks and other financial institutions and from alternative structures that may permit insurers to securitize assets more cost-effectively without the need for the types of credit enhancement we offer, or result in our having to reduce the premium we charge for our products;

• the application of existing federal or state consumer, lending, insurance, securities and other applicable laws and regulations, or changes in these laws and regulations or the way they are interpreted; including, without limitation: (i) the possibility of private lawsuits or formal 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, (ii) legislative and regulatory changes affecting demand for private mortgage insurance or financial guaranty insurance, or (iii) legislation and regulatory changes limiting or restricting our

use of (or requirements for) additional capital, the products we may offer, the form in which we may execute the credit protection we provide or the aggregate notional amount of any product we may offer for any one transaction or in the aggregate;

• 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 the premium deficiency for our second-lien mortgage insurance business, or to estimate accurately the fair value amounts of derivative contracts in our mortgage insurance and financial guaranty businesses in determining gains and losses on these contracts;

• changes in accounting guidance from the Securities and Exchange Commission (“SEC”) or the Financial Accounting Standards Board;

• our ability to profitably grow our insurance businesses in international markets, which depends on a number of factors such as foreign governments’ monetary policies and regulatory requirements, foreign currency exchange rate fluctuations, and our ability to develop and market products appropriate to foreign markets;

• legal and other limitations on the amount of dividends we may receive from our subsidiaries; and

• vulnerability to the performance of our strategic investments, including in particular, our investment in Sherman Financial Group LLC.

For more information regarding these risks and uncertainties as well as certain additional risks that we face, you 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, 2007. We caution you not to place undue reliance on these forward-looking statements, which are current only as of the date on this news release. We do not intend to, and we disclaim any duty or obligation to, update or revise any forward-looking statements made in this news release to reflect new information or future events or for any other reason.

###