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): August 11, 2008

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):

¨ 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 August 11, 2008, Radian Group Inc. (“Radian”) issued a news release announcing its financial results for the quarter ended June 30, 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.

99.1* Radian Group Inc. News Release dated August 11, 2008.

* 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: August 11, 2008	By:	/s/ C. Robert Quint
		C. Robert Quint
		Chief Financial Officer

EXHIBIT INDEX

Exhibit No.	Description
99.1*	Radian Group Inc. News Release dated August 11, 2008.

* 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:	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
	Radian Reports Second Quarter Financial Results and Announces Capital Plan
	Net Loss of $392.5 Million Including Premium Deficiency Reserve
	Significant Internal Resources to Support Mortgage Insurance Capital Requirements
	PHILADELPHIA, August 11, 2008 - Radian Group Inc. (NYSE: RDN) today reported a net loss for the quarter of $392.5 million, or $4.91 per share, after establishing a pre-tax first-lien premium deficiency reserve of $421.8 million. This compares to net income of $21.1 million, or $0.26 per share, for the second quarter of 2007. Book value per share at June 30, 2008, was $30.54.
	“Radian’s results in the second quarter were largely impacted by the first-lien premium deficiency reserve we established after updating our future mortgage insurance loss expectations,” said S.A. Ibrahim, Chief Executive Officer of Radian. “While our industry continues to be challenged, we remain highly committed to our mortgage insurance business. Radian is in the unique position to fulfill its capital needs through internal resources by contributing our financial guaranty business to our mortgage insurance business. This non-dilutive capital strategy benefits our shareholders and allows Radian to continue to take advantage of market opportunities that will best position the Company for the future.”

1

1601 Market Street Philadelphia, Pennsylvania 19103-2337 800 523.1988 215 564.6600	SECOND QUARTER HIGHLIGHTS
	— Radian Asset Assurance Inc., the principal financial guaranty subsidiary (Radian Asset), declared an ordinary dividend of $107.5 million to Radian Group Inc. $100 million was subsequently contributed to Radian Guaranty to support the mortgage insurance business.
	— Radian Asset has $960 million of statutory surplus, which is part of approximately $3 billion of claims paying resources. Radian expects to contribute the investment in Radian Asset to Radian Guaranty during the third quarter of 2008.
	— A pre-tax first lien premium deficiency reserve (PDR) of $421.8 million was established after updating the Company’s future loss projections. The PDR represents Radian’s best estimate of the present value of expected future losses not already included in the June 30, 2008 loss reserves, net of related future premiums. There was a $50.8 million deferred policy acquisition cost (DPAC) write-off in conjunction with the PDR.
	— Captive reinsurance and Smart Home transactions generated significant ceded losses recoverable, the balances of which are $131.1 million and $44.7 million, respectively, at June 30, 2008.
	— First and second lien claims paid were below expectations at $209 million, driven primarily by increased investment in Loss Management efforts.
	— First-lien primary defaults increased 11.0% in the quarter, which compares favorably to the 13.6% increase in first-lien primary defaults added during the first quarter of 2008. Including pool defaults, the increase was 8.9% during the second quarter of 2008, compared to 9.9% during the first quarter of 2008.
	— Radian Guaranty has made multiple guideline changes and pricing increases. In markets where home prices have declined, Radian has increased down payment requirements. Approximately 93% of new insurance written during the second quarter of 2008 was prime. Primary New Insurance Written in the second quarter of 2008 was $9.6 billion.
	— Radian Guaranty remains a Top Tier provider to the GSEs and maintains a stable market position.
	— Sherman Financial reported overall pretax operating income of $77.8 million for the second quarter of 2008, of which Radian’s share is $15.7 million. Radian received $19.5 million of dividends from Sherman during the quarter.
	CAPITAL STRATEGY
	The book of business in Radian Asset has significantly less exposure to mortgage and mortgage related assets compared to other financial guaranty insurers and new business production across all

2

1601 Market Street Philadelphia, Pennsylvania 19103-2337 800 523.1988 215 564.6600	financial guaranty product lines has been significantly reduced in 2008 and is likely to remain at minimal levels. These combined factors have created an opportunity unique to Radian that will allow Radian Group’s investment in Radian Asset to be contributed to Radian Guaranty. Radian expects this will occur during the third quarter of 2008.
	Instrumental to the movement of Radian Asset under Radian Guaranty was the need to get consent from Radian's lenders. The necessary lenders have signed an amendment to our credit facility to allow for that transfer. The amendment will become effective if certain conditions are satisfied, all of which Radian currently expects to be able to satisfy in the time permitted by the amendment.
	Radian Group’s liquidity position remains strong with over $50 million in cash and liquid investment securities after an impending paydown of $50 million of its credit facility in conjunction with the Radian Asset contribution, with no principal payments on its debt due until 2011. In addition, Radian has at its option the sale of its remaining stake in Sherman.
	After taking into consideration the contribution of Radian Asset, Radian Guaranty’s resulting risk to capital ratio on a pro forma basis would be 10.3 to 1 at June 30, 2008, allowing it to maintain a strong and sufficient claims paying ability to withstand the stressed macroeconomic environment, while continuing to selectively write new business.
	CONFERENCE CALL
	Radian will discuss each of these items in its conference call today, Monday, August 11, 2008, at 10:00 a.m. Eastern time. The conference 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. The call may also be accessed by dialing 800-230-1074 inside the U.S., or 612-234-9959 for international callers, using passcode 955796 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 955796.
	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.

3

1601 Market Street Philadelphia, Pennsylvania 19103-2337 800 523.1988 215 564.6600	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.
	Financial Results and Supplemental Information Contents (Unaudited)
	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 June 30, 2008
	Exhibit D:	Segment Information Quarter Ended June 30, 2007
	Exhibit E:	Segment Information Six Months Ended June 30, 2008
	Exhibit F:	Segment Information Six Months Ended June 30, 2007
	Exhibit G:	Financial Guaranty Supplemental Information- Quarter and Six Months Ended June 30, 2008
	Exhibit H:	Financial Guaranty Supplemental Information- Quarter and Six Months Ended June 30, 2008
	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- Reinsurance Progression Toward Attachment – Summary by Book Year
	Exhibit P:	Mortgage Insurance Supplemental Information- ALT-A
	Exhibit Q:	Financial Services Supplemental Information
	Forward Looking Statements

4

1601 Market Street Philadelphia, Pennsylvania 19103-2337 800 523.1988 215 564.6600	All statements made 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 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:
	•      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 businesses 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;
	•      economic changes or catastrophic events in geographic regions where our mortgage insurance or financial guaranty insurance in force is more concentrated;
	•      our ability to successfully obtain additional capital, if necessary, to support our long-term liquidity needs and to protect our credit ratings and the financial strength ratings of Radian Guaranty Inc., our primary mortgage insurance subsidiary;
	•      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.;
	•      our ability to maintain adequate risk-to-capital ratios, leverage ratios and surplus requirements in our mortgage insurance business in light of on-going losses in this business;
	•      a decrease in the volume of 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;

5

1601 Market Street Philadelphia, Pennsylvania 19103-2337 800 523.1988 215 564.6600	•      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;
	•      recapture of reinsurance business by the primary insurers under our financial guaranty reinsurance arrangements, which would reduce written and earned premiums in our financial guaranty business and correspondingly reduce the amount of capital required to be held against this risk;
	•      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 assigned to Radian Guaranty Inc., which are currently on CreditWatch Negative or negative outlook);
	•      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;
	•      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;
	•      heightened competition for financial guaranty business from other financial guaranty insurers, 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;

6

1601 Market Street Philadelphia, Pennsylvania 19103-2337 800 523.1988 215 564.6600	•      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 first- and 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;
	•      volatility in our earnings caused by changes in the fair value of our derivative instruments and our need to reevaluate the premium deficiencies in our mortgage insurance business on a quarterly basis;
	•      changes in accounting guidance from the Securities and Exchange Commission (“SEC”) or the Financial Accounting Standards Board;
	•      legal and other limitations on amounts we may receive from our subsidiaries as dividends or through tax and expense sharing arrangements with 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 Item 1A of Part I of our Annual Report on Form 10-K for the year ended December 31, 2007 as well as the material changes to these risks discussed in our Quarterly Reports on Form 10-Q. We caution you not to place undue reliance on these forward-looking statements, which are current only as of the date on which we issued 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 release to reflect new information or future events or for any other reason.
	SOURCE Radian Group Inc.

###

7

Radian Group Inc. and Subsidiaries

Condensed Consolidated Statements of Income

Exhibit A

	Quarter Ended June 30						Six Months Ended June 30
(In thousands, except per-share data)	2008			2007			2008			2007
Revenues:
Net premiums written—insurance	$	222,645		$	242,419		$	466,951		$	490,849
Net premiums earned—insurance	$	249,137		$	218,010		$	491,058		$	432,517
Net investment income		65,128			62,650			131,107			123,646
Change in fair value of derivative instruments (1)		56,226			(66,246	)		764,035			(17,829	)
Net (losses) gains on other financial instruments		(8,251	)		25,694			(63,135	)		39,439
Other income		3,221			3,102			6,835			6,920
Total revenues		365,461			243,210			1,329,900			584,693
Expenses:
Provision for losses		458,879			173,962			1,041,590			281,004
Provision for premium deficiency (2)		369,807			—			387,897			—
Policy acquisition costs		75,952	(3)		24,198			99,858			52,452
Other operating expenses		63,849			48,213			118,990			102,580
Merger expenses		—			9,395			—			12,723
Interest expense		13,832			12,360			26,325			25,416
Total expenses		982,319			268,128			1,674,660			474,175
Equity in net income of affiliates		15,704			49,507			28,230			72,279
Pretax (loss) income		(601,154	)		24,589			(316,530	)		182,797
Income tax (benefit) provision		(208,630	)		3,506			(119,644	)		48,247
Net (loss) income	$	(392,524	)	$	21,083		$	(196,886	)	$	134,550
Diluted net (loss) income per share (4)	$	(4.91	)	$	0.26		$	(2.46	)	$	1.68

(1) Includes premiums earned on derivative contracts.

(2) Includes $421.8 million for first-lien and $(52.0) million for second-lien in the second quarter of 2008, and $421.8 million for first-lien and $(33.9) million for second-lien for the first six months of 2008.

(3) Includes the acceleration of $50.8 million of deferred policy acquisition cost amortization, as a result of the establishment of a first-lien premium deficiency reserve in the second quarter of 2008.

(4) Weighted average shares outstanding (in thousands)

Average common shares outstanding	79,967	79,627	79,960	79,295
Increase in shares-potential exercise of options-diluted basis	—	918	—	984
Weighted average shares outstanding (in thousands)	79,967	80,545	79,960	80,279

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)	June 30 2008		December 31 2007			June 30 2007
Assets:
Cash and investments	$	6,535,397	$	6,611,836		$	6,028,815
Investments in affiliates		112,683		104,354			639,571
Deferred policy acquisition costs		184,765		234,955			232,548
Prepaid federal income taxes		536,343		793,486			860,135
Other assets		1,040,229		465,558			357,016
Total assets	$	8,409,417	$	8,210,189		$	8,118,085
Liabilities and stockholders’ equity:
Unearned premiums	$	1,048,064	$	1,094,710		$	987,788
Reserve for losses and loss adjustment expenses		2,287,742		1,598,756			909,371
Reserve for premium deficiency		583,543		195,646			—
Long-term debt and other borrowings		958,762		953,524			747,929
Variable interest entity debt		85,739		—			—
Deferred income taxes		—		26,705			888,667
Derivative liabilities		657,426		1,305,665			—
Other liabilities		332,234		314,447			441,612
Total liabilities		5,953,510		5,489,453			3,975,367
Common stock		98		98			97
Additional paid-in capital		448,010		442,312			436,017
Retained earnings		1,981,046		2,181,191			3,609,259
Accumulated other comprehensive income		26,753		97,135			97,345
Total common stockholders’ equity		2,455,907		2,720,736			4,142,718
Total liabilities and stockholders’ equity	$	8,409,417	$	8,210,189		$	8,118,085
Book value per share	$	30.54	$	33.83		$	51.53
Treasury Stock Repurchases (Year-to-Date for Periods Presented)
Total number of shares repurchased		—		398,645	(1)		398,645
Average price paid per share		—	$	57.25		$	57.25
Total cost of repurchased shares		—	$	22,822,537		$	22,822,537

(1) 0.3 million shares were repurchased in the 2nd quarter of 2007 at a cost of $18.8 million.

Page 2

Radian Group Inc. and Subsidiaries

Segment Information

Quarter Ended June 30, 2008

Exhibit C

(In thousands)	Mortgage Insurance			Financial Guaranty			Financial Services		Total
Revenues:
Net premiums written—insurance	$	199,030		$	23,615		$	—	$	222,645
Net premiums earned—insurance	$	205,096		$	44,041		$	—	$	249,137
Net investment income		38,941			26,187			—		65,128
Change in fair value of derivative instruments		25,173			31,053			—		56,226
Net gains (losses) on other financial instruments		10,444			(18,734	)		39		(8,251	)
Other income		2,999			58			164		3,221
Total revenues		282,653			82,605			203		365,461
Expenses:
Provision for losses		449,296			9,583			—		458,879
Provision for premium deficiency		369,807			—			—		369,807
Policy acquisition costs		63,686			12,266			—		75,952
Other operating expenses		48,703			15,019			127		63,849
Interest expense		7,332			6,500			—		13,832
Total expenses		938,824			43,368			127		982,319
Equity in net income of affiliates		—			—			15,704		15,704
Pretax (loss) income		(656,171	)		39,237			15,780		(601,154	)
Income tax (benefit) provision		(221,988	)		6,768			6,590		(208,630	)
Net (loss) income	$	(434,183	)	$	32,469		$	9,190	$	(392,524	)
Assets	$	5,037,309		$	3,166,316		$	205,792	$	8,409,417
Total investments		3,919,870			2,467,199			—		6,387,069
Deferred policy acquisition costs		11,554			173,211			—		184,765
Reserve for losses and loss adjustment expenses		2,120,577			167,165			—		2,287,742
Derivative liabilities		308,543			348,883			—		657,426
Unearned premiums		359,080			688,984			—		1,048,064
Stockholders’ equity		988,773			1,331,610			135,524		2,455,907

Page 3

Radian Group Inc. and Subsidiaries

Segment Information

Quarter Ended June 30, 2007

Exhibit D

(In thousands)	Mortgage Insurance			Financial Guaranty			Financial Services		Total
Revenues:
Net premiums written—insurance	$	197,507		$	44,912		$	—	$	242,419
Net premiums earned—insurance	$	185,588		$	32,422		$	—	$	218,010
Net investment income		36,287			26,320			43		62,650
Change in fair value of derivative instruments		(49,410	)		(16,836	)		—		(66,246	)
Net gains on other financial instruments		19,356			5,609			729		25,694
Other income		2,726			126			250		3,102
Total revenues		194,547			47,641			1,022		243,210
Expenses:
Provision for losses		180,152			(6,190	)		—		173,962
Policy acquisition costs		12,556			11,642			—		24,198
Other operating expenses		34,036			12,533			1,644		48,213
Merger expenses		8,990			405			—		9,395
Interest expense		6,341			4,462			1,557		12,360
Total expenses		242,075			22,852			3,201		268,128
Equity in net income of affiliates		—			—			49,507		49,507
Pretax (loss) income		(47,528	)		24,789			47,328		24,589
Income tax (benefit) provision		(19,326	)		2,768			20,064		3,506
Net (loss) income	$	(28,202	)	$	22,021		$	27,264	$	21,083
Assets	$	4,762,306		$	2,717,023		$	638,756	$	8,118,085
Total investments		3,545,036			2,374,941			—		5,919,977
Deferred policy acquisition costs		70,525			162,023			—		232,548
Reserve for losses and loss adjustment expenses		746,095			163,276			—		909,371
Unearned premiums		287,824			699,964			—		987,788
Stockholders’ equity		2,270,272			1,456,497			415,949		4,142,718

Page 4

Radian Group Inc. and Subsidiaries

Segment Information

Six Months Ended June 30, 2008

Exhibit E

(In thousands)	Mortgage Insurance			Financial Guaranty			Financial Services		Total
Revenues:
Net premiums written—insurance	$	410,281		$	56,670		$	—	$	466,951
Net premiums earned—insurance	$	409,361		$	81,697		$	—	$	491,058
Net investment income		77,786			53,307			14		131,107
Change in fair value of derivative instruments		96,942			667,093			—		764,035
Net (losses) gains on other financial instruments		(26,289	)		(36,883	)		37		(63,135	)
Other income		6,490			179			166		6,835
Total revenues		564,290			765,393			217		1,329,900
Expenses:
Provision for losses		1,020,304			21,286			—		1,041,590
Provision for premium deficiency		387,897			—			—		387,897
Policy acquisition costs		77,146			22,712			—		99,858
Other operating expenses		82,873			35,757			360		118,990
Interest expense		14,422			11,654			249		26,325
Total expenses		1,582,642			91,409			609		1,674,660
Equity in net income of affiliates		—			—			28,230		28,230
Pretax (loss) income		(1,018,352	)		673,984			27,838		(316,530	)
Income tax (benefit) provision		(357,713	)		225,987			12,082		(119,644	)
Net (loss) income	$	(660,639	)	$	447,997		$	15,756	$	(196,886	)

Page 5

Radian Group Inc. and Subsidiaries

Segment Information

Six Months Ended June 30, 2007

Exhibit F

(In thousands)	Mortgage Insurance			Financial Guaranty			Financial Services		Total
Revenues:
Net premiums written—insurance	$	403,918		$	86,931		$	—	$	490,849
Net premiums earned—insurance	$	365,831		$	66,686		$	—	$	432,517
Net investment income		71,846			51,757			43		123,646
Change in fair value of derivative instruments		(45,072	)		27,243			—		(17,829	)
Net gains on other financial instruments		30,479			8,433			527		39,439
Other income		5,575			266			1,079		6,920
Total revenues		428,659			154,385			1,649		584,693
Expenses:
Provision for losses		293,006			(12,002	)		—		281,004
Policy acquisition costs		29,079			23,373			—		52,452
Other operating expenses		70,308			26,768			5,504		102,580
Merger expenses		12,318			405			—		12,723
Interest expense		13,195			9,058			3,163		25,416
Total expenses		417,906			47,602			8,667		474,175
Equity in net income of affiliates		—			—			72,279		72,279
Pretax income		10,753			106,783			65,261		182,797
Income tax (benefit) provision		(5,747	)		26,846			27,148		48,247
Net income	$	16,500		$	79,937		$	38,113	$	134,550

Page 6

Radian Group Inc.

Financial Guaranty Supplemental Information

For the Quarter and Six Months Ended and as of June 30, 2008

Exhibit G

	Quarter Ended June 30						Six Months Ended June 30
($ in thousands, except ratios)	2008			2007			2008			2007
Net Premiums Written: (1)
Public finance direct	$	7,876		$	18,130		$	13,479		$	30,910
Public finance reinsurance		7,221			17,495			24,762			35,649
Structured direct		3,006			2,789			7,188			8,036
Structured reinsurance		5,411			5,693			10,853			11,605
Trade credit reinsurance		101			805			388			731
Total Net Premiums Written—insurance	$	23,615		$	44,912		$	56,670		$	86,931
Net Premiums Earned: (2)
Public finance direct	$	12,004		$	9,961		$	29,814		$	21,546
Public finance reinsurance		22,965			11,692			32,835			22,792
Structured direct		3,760			4,389			7,642			9,080
Structured reinsurance		5,092			5,742			10,691			11,936
Trade credit reinsurance		220			638			715			1,332
Total Net Premiums Earned—insurance	$	44,041		$	32,422		$	81,697		$	66,686
Refundings included in earned premium	$	16,664		$	5,177		$	28,321		$	11,763
Claims paid:
Trade credit reinsurance	$	397		$	2,625		$	983		$	5,271
Other		1,761			803			103,217	(3)		734
Conseco		2,305			3,011			4,373			6,119
Total	$	4,463		$	6,439		$	108,573		$	12,124
Incurred losses:
Trade credit reinsurance	$	(3,819	)	$	(8,480	)	$	(5,474	)	$	(11,616	)
Other		14,074			2,290			27,432			(386	)
Conseco		(672	)		—			(672	)		—
Total	$	9,583		$	(6,190	)	$	21,286		$	(12,002	)
Loss ratio—GAAP Basis		16.7	%		(12.8	)%		19.5	%		(11.8	)%
Expense ratio—GAAP Basis (4)		47.4	%		50.2	%		53.7	%		49.5	%
		64.1	%		37.4	%		73.2	%		37.7	%
Net payments (receipts) under derivatives contracts	$	5,578		$	(16,147	)	$	5,578		$	(27,375	)

(1) Premiums written on credit derivatives for the quarter and six months ended June 30, 2008 were $13.0 million and $25.9 million, respectively, compared to $5.6 million and $18.9 million, respectively, for the quarter and six months ended June 30, 2007.

(2) Premiums earned on credit derivatives for the quarter and six months ended June 30, 2008 were $13.5 million and $27.2 million, respectively, compared to $15.8 million and $34.7 million, respectively, for the quarter and six months ended June 30, 2007. Premiums earned on credit derivatives are included in change of fair value of derivative instruments.

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

(4) Excludes merger expenses.

Page 7

Radian Group Inc.

Financial Guaranty Supplemental Information

For the Quarter and Six Months Ended and as of June 30, 2008

Exhibit H

($ in thousands, except ratios)	June 30 2008			December 31 2007			June 30 2007
Capital and surplus	$	982,340		$	1,158,537		$	1,066,378
Contingency reserve		485,972			433,296			380,222
Qualified statutory capital		1,468,312			1,591,833			1,446,600
Unearned premium reserve		866,504			886,024			846,254
Loss and loss expense reserve		54,391			61,038			73,083
Total statutory policyholders’ reserves		2,389,207			2,538,895			2,365,937
Present value of installment premiums		430,450			461,806			366,572
Reinsurance and soft capital facilities		150,000			150,000			150,000
Total statutory claims paying resources	$	2,969,657		$	3,150,701		$	2,882,509
Net debt service outstanding	$	163,252,124		$	164,346,659		$	152,351,096
Capital leverage ratio (1)		111			103			105
Claims paying leverage ratio (2)		55			52			53
Net par outstanding by product:
Public finance direct	$	18,824,907		$	18,228,946		$	17,131,513
Public finance reinsurance		43,114,460			43,822,781			40,063,123
Structured direct		47,235,046			47,878,168			48,071,745
Structured reinsurance		6,010,331			6,091,717			5,270,740
Total	$	115,184,744		$	116,021,612		$	110,537,121
Reinsurance business net par outstanding:
Treaty		61	%		59	%		59	%
Facultative		39	%		41	%		41	%
Reserve for losses and LAE
Specific	$	29,053		$	26,791		$	29,274
Conseco		17,480			22,526			27,855
Non-specific		120,632			203,987			106,147
Total	$	167,165		$	253,304		$	163,276

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

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

Page 8

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter and Six Months Ended and as of June 30, 2008

Exhibit I

	Quarter Ended June 30										Six Months Ended June 30
($ in millions)	2008			%		2007			%		2008			%		2007			%
Primary New Insurance Written
Flow	$	9,432		97.9	%	$	10,639		63.1	%	$	18,716		93.9	%	$	17,688		58.8	%
Structured		205		2.1	%		6,211		36.9	%		1,218		6.1	%		12,389		41.2	%
Total Primary	$	9,637		100.0	%	$	16,850		100.0	%	$	19,934		100.0	%	$	30,077		100.0	%
Flow
Prime	$	8,743		92.7	%	$	7,673		72.1	%	$	16,951		90.5	%	$	12,723		71.9	%
Alt-A		475		5.0	%		2,026		19.1	%		1,058		5.7	%		3,427		19.4	%
A minus and below		214		2.3	%		940		8.8	%		707		3.8	%		1,538		8.7	%
Total Flow	$	9,432		100.0	%	$	10,639		100.0	%	$	18,716		100.0	%	$	17,688		100.0	%
Structured
Prime	$	204		99.5	%	$	581		9.4	%	$	1,216		99.8	%	$	674		5.5	%
Alt-A		1		0.5	%		5,200		83.7	%		2		0.2	%		11,105		89.6	%
A minus and below		—		—			430		6.9	%		—		—			610		4.9	%
Total Structured	$	205		100.0	%	$	6,211		100.0	%	$	1,218		100.0	%	$	12,389		100.0	%
Total
Prime	$	8,947		92.8	%	$	8,254		49.0	%	$	18,167		91.2	%	$	13,397		44.6	%
Alt-A		476		5.0	%		7,226		42.9	%		1,060		5.3	%		14,532		48.3	%
A minus and below		214		2.2	%		1,370		8.1	%		707		3.5	%		2,148		7.1	%
Total Primary	$	9,637		100.0	%	$	16,850		100.0	%	$	19,934		100.0	%	$	30,077		100.0	%
Total Primary New Insurance Written by FICO Score
Flow
<=619	$	104		1.1	%	$	641		6.0	%	$	369		2.0	%	$	1,127		6.4	%
620-679		1,512		16.0	%		3,397		32.0	%		3,450		18.4	%		5,652		31.9	%
680-739		3,452		36.6	%		3,854		36.2	%		7,067		37.8	%		6,333		35.8	%
>=740		4,364		46.3	%		2,747		25.8	%		7,830		41.8	%		4,576		25.9	%
Total Flow	$	9,432		100.0	%	$	10,639		100.0	%	$	18,716		100.0	%	$	17,688		100.0	%
Structured
<=619	$	—		—		$	283		4.6	%	$	—		—		$	409		3.3	%
620-679		7		3.4	%		2,090		33.6	%		17		1.4	%		3,466		28.0	%
680-739		64		31.2	%		2,761		44.5	%		433		35.5	%		5,829		47.0	%
>=740		134		65.4	%		1,077		17.3	%		768		63.1	%		2,685		21.7	%
Total Structured	$	205		100.0	%	$	6,211		100.0	%	$	1,218		100.0	%	$	12,389		100.0	%
Total
<=619	$	104		1.1	%	$	924		5.5	%	$	369		1.9	%	$	1,536		5.1	%
620-679		1,519		15.8	%		5,487		32.6	%		3,467		17.4	%		9,118		30.3	%
680-739		3,516		36.4	%		6,615		39.2	%		7,500		37.6	%		12,162		40.4	%
>=740		4,498		46.7	%		3,824		22.7	%		8,598		43.1	%		7,261		24.2	%
Total Primary	$	9,637		100.0	%	$	16,850		100.0	%	$	19,934		100.0	%	$	30,077		100.0	%
Percentage of primary new insurance written
Refinances		35	%				41	%				38	%				46	%
95.01% LTV and above		12	%				21	%				16	%				19	%
ARMs
Less than 5 years		—					7	%				1	%				23	%
5 years and longer		10	%				10	%				8	%				8	%
Primary risk written
Flow	$	2,231		97.9	%	$	2,699		83.4	%	$	4,547		93.5	%	$	4,445		85.9	%
Structured		48		2.1	%		537		16.6	%		314		6.5	%		731		14.1	%
Total Primary	$	2,279		100.0	%	$	3,236		100.0	%	$	4,861		100.0	%	$	5,176		100.0	%
Pool risk written	$	28				$	96				$	59				$	185
Other risk written
Seconds
1st loss	$	—				$	3				$	—				$	6
2nd loss		—					—					—					21
NIMs		—					109					—					377
International
1st loss-Hong Kong primary mortgage insurance		—					31					51					50
Reinsurance		23					17					42					34
Total other risk written	$	23				$	160				$	93				$	488

Page 9

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter and Six Months Ended and as of June 30, 2008

Exhibit J

	June 30					June 30
($ in millions)	2008			%		2007			%
Primary insurance in force
Flow	$	115,425		76.3	%	$	91,098		71.0	%
Structured		35,754		23.7	%		37,172		29.0	%
Total Primary	$	151,179		100.0	%	$	128,270		100.0	%
Prime	$	105,049		69.5	%	$	80,984		63.1	%
Alt-A		34,239		22.6	%		35,671		27.8	%
A minus and below		11,891		7.9	%		11,615		9.1	%
Total Primary	$	151,179		100.0	%	$	128,270		100.0	%
Primary risk in force
Flow	$	29,003		85.6	%	$	22,702		83.2	%
Structured		4,879		14.4	%		4,580		16.8	%
Total Primary	$	33,882		100.0	%	$	27,282		100.0	%
Flow
Prime	$	23,125		79.7	%	$	17,677		77.9	%
Alt-A		3,759		13.0	%		3,305		14.5	%
A minus and below		2,119		7.3	%		1,720		7.6	%
Total Flow	$	29,003		100.0	%	$	22,702		100.0	%
Structured
Prime	$	2,537		52.0	%	$	1,653		36.1	%
Alt-A		1,499		30.7	%		1,756		38.3	%
A minus and below		843		17.3	%		1,171		25.6	%
Total Structured	$	4,879		100.0	%	$	4,580		100.0	%
Total
Prime	$	25,662		75.7	%	$	19,330		70.9	%
Alt-A		5,258		15.5	%		5,061		18.5	%
A minus and below		2,962		8.8	%		2,891		10.6	%
Total Primary	$	33,882		100.0	%	$	27,282		100.0	%
Total Primary Risk in Force by FICO Score
Flow
<=619	$	1,607		5.5	%	$	1,458		6.4	%
620-679		8,365		28.9	%		7,037		31.0	%
680-739		10,744		37.0	%		8,264		36.4	%
>=740		8,287		28.6	%		5,943		26.2	%
Total Flow	$	29,003		100.0	%	$	22,702		100.0	%
Structured
<=619	$	784		16.1	%	$	1,121		24.5	%
620-679		1,312		26.9	%		1,571		34.3	%
680-739		1,492		30.5	%		1,262		27.5	%
>=740		1,291		26.5	%		626		13.7	%
Total Structured	$	4,879		100.0	%	$	4,580		100.0	%
Total
<=619	$	2,391		7.0	%	$	2,579		9.4	%
620-679		9,677		28.6	%		8,608		31.6	%
680-739		12,236		36.1	%		9,526		34.9	%
>=740		9,578		28.3	%		6,569		24.1	%
Total Primary	$	33,882		100.0	%	$	27,282		100.0	%
Percentage of primary risk in force
Refinances		31	%				33	%
95.01% LTV and above		24	%				20	%
ARMs
Less than 5 years		10	%				16	%
5 years and longer		9	%				9	%
Pool risk in force
Prime	$	2,119		70.8	%	$	2,206		70.2	%
Alt-A		291		9.7	%		297		9.5	%
A minus and below		584		19.5	%		638		20.3	%
Total	$	2,994		100.0	%	$	3,141		100.0	%

Page 10

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter and Six Months Ended and as of June 30, 2008

Exhibit K

	June 30				June 30
($ in millions)	2008		%		2007		%
Total Primary Risk in Force by LTV
95.01% and above	$	8,076	23.8	%	$	5,549	20.3	%
90.01% to 95.00%		10,546	31.1	%		8,227	30.2	%
85.01% to 90.00%		11,576	34.2	%		9,497	34.8	%
85.00% and below		3,684	10.9	%		4,009	14.7	%
Total	$	33,882	100.0	%	$	27,282	100.0	%
Total Primary Risk in Force by Policy Year
2004 and prior	$	7,960	23.5	%	$	10,029	36.7	%
2005		4,575	13.5	%		5,704	20.9	%
2006		5,516	16.3	%		6,482	23.8	%
2007		11,069	32.7	%		5,067	18.6	%
2008		4,762	14.0	%		—	—
Total	$	33,882	100.0	%	$	27,282	100.0	%
Total Pool Risk in Force by Policy Year
2004 and prior	$	1,848	61.7	%	$	2,019	64.3	%
2005		589	19.7	%		650	20.7	%
2006		258	8.6	%		281	8.9	%
2007		243	8.1	%		191	6.1	%
2008		56	1.9	%		—	—
Total Pool risk in Force	$	2,994	100.0	%	$	3,141	100.0	%
Other risk in force
Seconds
1st loss	$	312			$	495
2nd loss		460				590
NIMs		485				796
International
1st loss-Hong Kong primary mortgage insurance		469				384
Reinsurance		151				79
Credit default swaps		8,619				7,872
Other
Domestic credit default swaps		206				212
Total other risk in force	$	10,702			$	10,428
Risk to capital ratio-STAT Basis		20.8:1				10.6:1
Risk to capital ratio-STAT Basis excluding AAA-rated CDS		16.7:1				8.6:1
Risk to capital ratio-Radian Guaranty only		14.9:1				10.5:1

Page 11

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter and Six Months Ended and as of June 30, 2008

Exhibit L

	Quarter Ended June 30						Six Months Ended June 30
($ in thousands)	2008			2007			2008			2007
Direct claims paid
Prime	$	64,048		$	34,226		$	124,706		$	67,351
Alt-A		47,746			21,755			83,478			41,753
A minus and below		49,270			35,027			97,631			64,107
Seconds and other		47,775			21,071			93,212			34,692
Total	$	208,839		$	112,079		$	399,027		$	207,903
Average claim paid
Prime	$	36.7		$	28.4		$	36.7		$	28.2
Alt-A		51.1			40.9			50.5			40.3
A minus and below		35.4			31.1			36.3			30.4
Seconds		34.2			27.8			34.3			28.2
Total	$	38.2		$	30.9		$	38.2		$	30.8
Loss ratio—GAAP Basis		211.4	%		87.2	%		238.3	%		72.8	%
Expense ratio—GAAP Basis (2)		55.3	%		22.5	%		38.5	%		24.7	%
		266.7	%		109.7	%		276.8	%		97.5	%
Reserve for losses by category
Prime	$	559,947		$	212,191
Alt-A		722,813			182,537
A minus and below		410,373			246,062
Pool insurance		71,508			37,531
Seconds		178,859			37,251
Other		1,237			1,004
Reserve for losses, net		1,944,737			716,576
Reinsurance recoverable		175,840	(1)		29,519	(1)
Total	$	2,120,577		$	746,095

(1) Reinsurance recoverable on ceded losses related to captives ($131.1 million) and Smart Home ($44.7 million).

(2) Includes the acceleration of $50.8 million of deferred policy acquisition cost amortization, as a result of the establishment of a first-lien premium deficiency reserve in the second quarter of 2008 and excludes merger expenses.

Page 12

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter and Six Months Ended and as of June 30, 2008

Exhibit M

	June 30		December 31		June 30
	2008		2007		2007
Default Statistics
Primary insurance:
Flow
Prime
Number of insured loans	602,571		565,563		520,488
Number of loans in default	26,604		20,632		14,795
Percentage of loans in default	4.42	%	3.65	%	2.84	%
Alt-A
Number of insured loans	72,715		74,559		68,454
Number of loans in default	11,702		7,980		5,034
Percentage of loans in default	16.09	%	10.70	%	7.35	%
A minus and below
Number of insured loans	62,874		63,853		56,073
Number of loans in default	11,637		10,087		7,456
Percentage of loans in default	18.51	%	15.80	%	13.30	%
Total Flow
Number of insured loans	738,160		703,975		645,015
Number of loans in default	49,943		38,699		27,285
Percentage of loans in default	6.77	%	5.50	%	4.23	%
Structured
Prime
Number of insured loans	70,857		64,789		57,500
Number of loans in default	5,447		4,707		3,612
Percentage of loans in default	7.69	%	7.27	%	6.28	%
Alt-A
Number of insured loans	84,369		97,526		98,242
Number of loans in default	13,344		8,783		4,992
Percentage of loans in default	15.82	%	9.01	%	5.08	%
A minus and below
Number of insured loans	24,422		28,747		32,612
Number of loans in default	8,003		8,659		8,278
Percentage of loans in default	32.77	%	30.12	%	25.38	%
Total Structured
Number of insured loans	179,648		191,062		188,354
Number of loans in default	26,794		22,149		16,882
Percentage of loans in default	14.91	%	11.59	%	8.96	%
Total Primary Insurance
Prime
Number of insured loans	673,428		630,352		577,988
Number of loans in default	32,051		25,339		18,407
Percentage of loans in default	4.76	%	4.02	%	3.18	%
Alt-A
Number of insured loans	157,084		172,085		166,696
Number of loans in default	25,046		16,763		10,026
Percentage of loans in default	15.94	%	9.74	%	6.01	%
A minus and below
Number of insured loans	87,296		92,600		88,685
Number of loans in default	19,640		18,746		15,734
Percentage of loans in default	22.50	%	20.24	%	17.74	%
Total Primary Insurance
Number of insured loans	917,808		895,037		833,369
Number of loans in default	76,737	(1)	60,848	(1)	44,167	(1)
Percentage of loans in default	8.36	%	6.80	%	5.30	%
Pool insurance:
Number of loans in default	27,944	(2)	26,526	(2)	21,409	(2)

(1) Includes approximately 272, 2,595 and 2,318 defaults at June 30, 2008, December 31, 2007 and June 30, 2007, respectively, where reserves have not been established because no claim payment is currently anticipated.

(2) Includes approximately 20,880, 20,193 and 16,101 defaults at June 30, 2008, December 31, 2007 and June 30, 2007, 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 Six Months Ended and as of June 30, 2008

Exhibit N

	Quarter Ended June 30						Six Months Ended June 30
	2008			2007			2008			2007
Net Premiums Written (In thousands) (1)
Primary and Pool Insurance	$	191,769		$	184,492		$	392,246		$	376,600
Seconds		2,905			6,450			6,386			17,629
International		4,356			6,565			11,649			9,689
Total Net Premiums Written—insurance	$	199,030		$	197,507		$	410,281		$	403,918
Net Premiums Earned (In thousands) (2)
Primary and Pool Insurance	$	193,938		$	174,174		$	387,421		$	341,329
Seconds		4,964			8,723			11,128			17,895
International		6,194			2,691			10,812			6,607
Total Net Premiums Earned—insurance	$	205,096		$	185,588		$	409,361		$	365,831
SMART HOME (In millions)
Ceded Premiums Written	$	3.7		$	3.2		$	6.9		$	6.4
Ceded Premiums Earned	$	3.7		$	3.1		$	6.9		$	6.0
Captives
Premiums ceded to captives (In millions)	$	34.1		$	30.0		$	69.8		$	58.1
% of total premiums		14.7	%		14.5	%		15.1	%		14.3	%
NIW subject to captives (In millions)	$	3,415		$	6,146		$	8,164		$	11,140
% of primary NIW		35.4	%		36.5	%		41.0	%		37.0	%
IIF included in captives (3)		37.2	%		34.6	%
RIF included in captives (3)		41.7	%		40.5	%
Persistency (twelve months ended June 30)		81.2	%		71.1	%
	June 30 2008			June 30 2007
SMART HOME
% of Primary RIF included in Smart Home Transactions (3)		4.3	%		7.4	%

(1) Premiums written on credit derivatives for the quarter and six months ended June 30, 2008 were $5.6 million and $14.5 million, respectively, compared to $19.5 million and $35.4 million, respectively, for the quarter and six months ended June 30, 2007.

(2) Premiums earned on credit derivatives for the quarter and six months ended June 30, 2008 were $5.8 million and $18.9 million, respectively, compared to $21.1 million and $36.8 million, respectively, for the quarter and six months ended June 30, 2007. Premiums earned on credit derivatives are included in change of fair value of derivative instruments.

(3) 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 Ended and as of June 30, 2008

Exhibit O

Reinsurance Progression Toward Attachment—Summary by Book Year (1)

($ in millions)					June 30 2008						March 31 2008						December 31 2007
Book Year (2):	Original Book RIF as of June 30 2008		Progression to Attachment Point		Current RIF		Ever-to- Date Incurred Losses		Captive Benefit (3)		Current RIF		Ever-to- Date Incurred Losses		Captive Benefit (3)		Current RIF		Ever-to- Date Incurred Losses		Captive Benefit (3)
Pre-2005			0-50	%	$	1,337	$	240			$	1,444	$	235			$	2,209	$	279
Pre-2005			50-75	%		1,155		158				1,651		194				1,145		144
Pre-2005			75-99	%		514		81				96		31				32		19
Pre-2005			Attached			17		5				18		5				12		3
Pre-2005 Total	$	26,334			$	3,023	$	484	$	—	$	3,209	$	465	$	1	$	3,398	$	445	$	1
2005			0-50	%	$	187	$	4			$	536	$	13			$	697	$	13
2005			50-75	%		430		17				327		13				429		15
2005			75-99	%		392		21				245		12				945		53
2005			Attached			896		95				881		69				11		2
2005 Total	$	3,333			$	1,905	$	137	$	29	$	1,989	$	107	$	8	$	2,082	$	83	$	—
2006			0-50	%	$	146	$	3			$	632	$	12			$	851	$	12
2006			50-75	%		524		18				72		2				332		10
2006			75-99	%		153		7				446		21				1,470		71
2006			Attached			1,800		169				1,593		110				210		10
2006 Total	$	3,547			$	2,623	$	197	$	74	$	2,743	$	145	$	29	$	2,863	$	103	$	1
2007			0-50	%	$	913	$	15			$	3,900	$	63			$	4,058	$	36
2007			50-75	%		2,876		91				242		6				580		12
2007			75-99	%		—		—				185		7				4		—
2007			Attached			1,055		63				644		24				1		—
2007 Total	$	5,288			$	4,844	$	169	$	21	$	4,971	$	100	$	2	$	4,643	$	48	$	—
2008			0-50	%	$	1,483	$	3			$	756	$	—			$	—	$	—
2008			50-75	%		90		2				—		—				—		—
2008			75-99	%		—		—				—		—				—		—
2008			Attached			—		—				—		—				—		—
2008 Total	$	1,601			$	1,573	$	5	$	—	$	756	$	—	$	—	$	—	$	—	$	—
Quota Share			0-50	%	$	27	$	—			$	23	$	—			$	20	$	—
Quota Share			50-75	%		—		—				7		—				7		1
Quota Share			75-99	%		6		1				—		1				—		—
Quota Share			Attached			85		17				88		13				90		9
Quota Share Total	$	309			$	118	$	18	$	8	$	118	$	14	$	5	$	117	$	10	$	4
Total Captive (Including Quota Share)	$	40,412			$	14,086	$	1,010	$	132	$	13,786	$	831	$	45	$	13,103	$	689	$	6
SmartHome			0-50	%	$	127	$	24			$	134	$	23			$	142	$	23
SmartHome			50-75	%		—		—				—		—				693		92
SmartHome			75-99	%		622		115				657		101				—		—
SmartHome			Attached			703		154				764		132				833		112
Total SmartHome	$	3,900			$	1,452	$	293	$	45	$	1,555	$	257	$	25	$	1,668	$	227	$	10

(1) Data presented in aggregate for all trusts for captives active at each period end only. Actual trust attachment and exit points vary by individual contract. Attachment is calculated at the contract/deal level and is based on Total Incurred Losses which are defined as claims paid ever-to-date plus loss reserves.

(2) Book year figures may include loans from additional periods pursuant to reinsurance agreement terms and conditions.

(3) Captive Benefit is defined as ceded reserves at period end plus ever-to-date claims paid by the trust.

Page 15

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter Ended and as of June 30, 2008

ALT-A

Exhibit P

	Quarter Ended June 30								Six Months Ended June 30
($ in millions)	2008		%		2007		%		2008		%		2007		%
Primary New Insurance Written by FICO Score
<=619	$	2	0.4	%	$	84	1.2	%	$	3	0.3	%	$	92	0.6	%
620-659		8	1.7	%		1,090	15.1	%		17	1.6	%		1,679	11.6	%
660-679		22	4.6	%		1,221	16.9	%		53	5.0	%		2,386	16.4	%
680-739		230	48.3	%		3,383	46.8	%		531	50.1	%		7,023	48.3	%
>=740		214	45.0	%		1,448	20.0	%		456	43.0	%		3,352	23.1	%
Total	$	476	100.0	%	$	7,226	100.0	%	$	1,060	100.0	%	$	14,532	100.0	%
Primary Risk in Force by FICO Score
<=619	$	36	0.7	%	$	38	0.7	%
620-659		654	12.4	%		767	15.2	%
660-679		772	14.7	%		811	16.0	%
680-739		2,509	47.7	%		2,313	45.7	%
>=740		1,287	24.5	%		1,132	22.4	%
Total	$	5,258	100.0	%	$	5,061	100.0	%
Primary Risk in Force by LTV
95.01% and above	$	364	6.9	%	$	239	4.7	%
90.01% to 95.00%		1,367	26.0	%		1,299	25.7	%
85.01% to 90.00%		2,187	41.6	%		2,044	40.4	%
85.00% and below		1,340	25.5	%		1,479	29.2	%
Total	$	5,258	100.0	%	$	5,061	100.0	%
Primary Risk in Force by Policy Year
2004 and prior	$	984	18.7	%	$	1,272	25.1	%
2005		746	14.2	%		966	19.1	%
2006		1,178	22.4	%		1,389	27.5	%
2007		2,112	40.2	%		1,434	28.3	%
2008		238	4.5	%		—	—
Total	$	5,258	100.0	%	$	5,061	100.0	%

Page 16

Radian Group Inc.

Financial Services Supplemental Information

For the Quarter and Six Months Ended and as of June 30, 2008

Exhibit Q

	Quarter Ended June 30					Six Months Ended June 30
(In thousands )	2008			2007		2008			2007
Investment in Affiliates-Selected Information
C-BASS
Balance, beginning of period	$	—		$	444,591	$	—		$	451,395
Net income for period		—			23,209		—			16,405
Balance, end of period	$	—		$	467,800	$	—		$	467,800
Sherman
Balance, beginning of period	$	116,929		$	143,698	$	104,315		$	167,412
Net income for period		15,704			26,298		28,230			55,874
Dividends received		19,499			—		19,499			51,512
Other comprehensive (loss) income		(490	)		1,741		(402	)		(37	)
Balance, end of period	$	112,644		$	171,737	$	112,644		$	171,737
Portfolio Information:
C-BASS
Servicing portfolio		N/A		$	58,100,000		N/A
Total assets		N/A			6,619,605		N/A
Servicing income		N/A			48,621		N/A		$	91,747
Net interest income		N/A			66,572		N/A			145,424
Total revenues		N/A			101,099		N/A			140,080
Sherman
Total assets	$	2,432,122		$	1,778,299
Total revenues	$	295,842		$	285,439	$	588,657		$	569,227

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 17