8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 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 5, 2009

Radian Group Inc.

(Exact Name of Registrant as Specified in Its Charter)

Delaware	1-11356	23-2691170
(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

(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 August 5, 2009, Radian Group Inc. issued a news release announcing its financial results for the quarter ended June 30, 2009. 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 August 5, 2009.

* 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 5, 2009	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 5, 2009.

* Furnished herewith.

EX-99.1

Exhibit 99.1

1601 Market Street		News Release
Philadelphia, Pennsylvania
19103-2337
800 523.1988
215 564.6600
	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 Net income driven by lower provision for MI losses and unrealized gains on derivatives PHILADELPHIA, August 5, 2009 - Radian Group Inc. (NYSE: RDN) today reported net income for the quarter ended June 30, 2009, of $231.9 million, or $2.82 per diluted share. This compares to a net loss of $392.5 million, or $4.91 per diluted share, for the prior-year quarter. Book value per share at June 30, 2009, was $25.12. “We are pleased that Radian generated net income in the second quarter, despite a difficult environment with rising delinquencies. These earnings were driven primarily by loss management efforts that positively impacted our provision for mortgage insurance losses and by unrealized gains on derivatives,” said Chief Executive Officer S. A. Ibrahim. “While there are positive signs in today’s economy, we remain aware of the challenges and uncertainties Radian continues to face, and the condition of the U.S. housing market. Our primary focus is on increasing our capital strength and financial flexibility, continuing to write high-quality new business, and positioning Radian for growth and success when markets recover.” SECOND QUARTER HIGHLIGHTS •        The mortgage insurance provision for losses of $142.8 million reflects higher delinquency counts, offset significantly by Radian’s ongoing loss management efforts. •        Mortgage insurance claims paid of $167.7 million again were lower than the company’s forecast and consisted of $149.4 million of first liens and $18.3 million of second liens. In the third quarter, total first- and second-lien claims paid are expected to be approximately $275 million to $300 million. For the full year 2009, Radian has reduced its expectations from $1.2 billion to $1.4 billion, to a current estimate in the $1.1 billion range.

Page 1

1601 Market Street Philadelphia, Pennsylvania 19103-2337 800 523.1988 215 564.6600 •        Radian is encouraged by the many government and private initiatives to help borrowers and has programs in place to provide assistance to lenders and their borrowers who are struggling with mortgage payments. The company is ready to handle the anticipated increase in volume from government-sponsored programs and other lender-initiated refinance or modification programs. Radian continues to expect an increase in delinquencies throughout the remainder of 2009, which could result in a higher provision and reserve for losses.   •        Over the past year, Radian has successfully transformed its mortgage insurance business, producing a 2009 book that consists of loans with excellent risk characteristics. For example, of the total primary new mortgage insurance written in the quarter of $5.5 billion:   •        99.9 percent was prime credit quality;   •        98.4 percent had a FICO score of 680 or greater, with 72.9 percent at 740 or above;   •        all had loan-to-value (LTV) ratios of 95 percent or below, and 73 percent had LTV ratios of 90 percent or below;   •        99.5 percent were fixed-rate mortgages; and   •        we have observed a significant decrease in early default activity in the 2009 vintage, which is an example of improved underwriting.   In addition, Radian’s market share has grown steadily in 2009 and represents a significant increase over historical levels.   •        Unrealized gains on derivatives were $272.3 million on total pre-tax income of $353.7 million.   •        Radian’s current cash position is strong, with approximately $480 million immediately available to the parent company after having received a $105 million tax refund in May.   •        Radian Asset Assurance Inc. the company’s principal financial guaranty subsidiary, continues to serve as an important source of capital support for Radian Guaranty Inc., the company’s mortgage insurance subsidiary, and is expected to continue to provide Radian Guaranty with cash infusions over time.   •        As of June 30, 2009, Radian Asset had more than $900 million in statutory capital with an additional $1.84 billion in total claims-paying resources.   •        At the end of June, Radian Asset paid an ordinary dividend of approximately $100 million to Radian Guaranty.

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1601 Market Street Philadelphia, Pennsylvania 19103-2337 800 523.1988 215 564.6600 RECENT EVENTS   •        On July 17, the Company filed a $1 billion securities shelf registration.   •        On July 20, Radian Asset entered into a Commutation and Release Agreement, effective as of July 1, 2009, with Ambac Assurance Corporation and Ambac Assurance UK Limited to commute $9.8 billion of Radian Asset’s reinsurance portfolio assumed from Ambac, decreasing Radian Asset’s total insured portfolio by 10 percent. As a result, the statutory surplus of Radian Asset (and Radian Guaranty) will be positively impacted in the third quarter 2009 by approximately $40 million.   CONFERENCE CALL   Radian will discuss each of these items in its conference call today, Wednesday, August 5, 2009, 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 www.radian.biz. The call may also be accessed by dialing 800-553-0288 inside the U.S., or 612-332-0530 for international callers, using passcode 108853 or by referencing Radian.   A replay of the Web cast will be available on the Radian Web site 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 108853.   In addition to the information provided in the company’s earnings news release, other statistical and financial information, which is expected to be referred to during the conference call, will be available on Radian’s Web site under Investors >Quarterly Results, or by clicking on http://www.ir.radian.biz/phoenix.zhtml?c=112301&p=irol-earnings.   About Radian   Radian Group Inc. (NYSE: RDN), headquartered in Philadelphia, provides private mortgage insurance and related risk mitigation products and services to mortgage lenders nationwide through its principal operating subsidiary, Radian Guaranty Inc. These services help promote and preserve homeownership opportunities for homebuyers, while protecting lenders from default-related losses on residential first mortgages and facilitating the sale of low-downpayment mortgages in the secondary market. 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.

Page 3

1601 Market Street Philadelphia, Pennsylvania 19103-2337 800 523.1988 215 564.6600	Exhibit A:	Condensed Consolidated Statements of Income
	Exhibit B:	Condensed Consolidated Balance Sheets
	Exhibit C:	Segment Information Quarter Ended June 30, 2009
	Exhibit D:	Segment Information Quarter Ended June 30, 2008
	Exhibit E:	Segment Information Six Months Ended June 30, 2009
	Exhibit F:	Segment Information Six Months Ended June 30, 2008
	Exhibit G:	Financial Guaranty Supplemental Information – For the Quarter and Six Months Ended and as of June 30, 2009
	Exhibit H:	Financial Guaranty Supplemental Information – For the Quarter and Six Months Ended and as of June 30, 2009
	Exhibit I:	Mortgage Insurance Supplemental Information – For the Quarter and Six Months Ended and as of June 30, 2009 New Insurance Written and Risk Written
	Exhibit J:	Mortgage Insurance Supplemental Information – For the Quarter and Six Months Ended and as of June 30, 2009 Insurance in Force and Risk in Force
	Exhibit K:	Mortgage Insurance Supplemental Information – For the Quarter and Six Months Ended and as of June 30, 2009 Risk in Force by LTV and Policy Year and other Risk in Force
	Exhibit L:	Mortgage Insurance Supplemental Information – For the Quarter and Six Months Ended and as of June 30, 2009 Claims and Reserves
	Exhibit M:	Mortgage Insurance Supplemental Information – For the Quarter and Six Months Ended and as of June 30, 2009 Default Statistics
	Exhibit N:	Mortgage Insurance Supplemental Information – For the Quarter and Six Months Ended and as of June 30, 2009 Net Premiums Written and Earned, Smart Home, Captives and Persistency
	Exhibit O:	Mortgage Insurance Supplemental Information – For the Quarter Ended and as of June 30, 2009 Reinsurance Progression Toward Attachment – Summary by Book Year
	Exhibit P:	Mortgage Insurance Supplemental Information – For the Quarter Ended and as of June 30, 2009 Modified Pool Risk in Force
	Exhibit Q:	Mortgage Insurance Supplemental Information – For the Quarter and Six Months Ended and as of June 30, 2009 Alt-A Risk in Force
	Exhibit R:	Financial Services Supplemental Information – For the Quarter and Six Months Ended and as of June 30, 2009

Page 4

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)	2009			2008			2009			2008
Revenues:
Net premiums written—insurance	$	161,901		$	222,645		$	318,657		$	466,951
Net premiums earned—insurance	$	193,629		$	249,137		$	404,844		$	491,058
Net investment income		53,251			65,128			109,534			131,107
Change in fair value of derivative instruments		272,318			56,226			(12,098	)		764,035
Net gains (losses) on other financial instruments		54,384			14,801			79,264			(26,040	)
Total other-than-temporary impairment losses		(46	)		(23,052	)		(680	)		(37,095	)
Losses recognized in other comprehensive loss		—			—			—			—
Net impairment losses recognized in earnings		(46	)		(23,052	)		(680	)		(37,095	)
Other income		3,888			3,221			8,020			6,835
Total revenues		577,424			365,461			588,884			1,329,900
Expenses:
Provision for losses		132,750			458,879			459,504			1,041,590
Provision for premium deficiency		2,184			369,807	(1)		(46,000	)		387,897	(1)
Policy acquisition costs		25,967			75,952	(2)		39,921			99,858	(2)
Other operating expenses		55,635			63,849			107,237			118,990
Interest expense		12,295			13,832			24,594			26,325
Total expenses		228,831			982,319			585,256			1,674,660
Equity in net income of affiliates		5,110			15,704			15,662			28,230
Pretax income (loss)		353,703			(601,154	)		19,290			(316,530	)
Income tax provision (benefit)		121,828			(208,630	)		4,852			(119,644	)
Net income (loss)	$	231,875		$	(392,524	)	$	14,438		$	(196,886	)
Diluted net income (loss) per share (3)	$	2.82		$	(4.91	)	$	0.18		$	(2.46	)

(1) 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 six months of 2008.

(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.

 (3) Weighted average shares outstanding (In thousands)

Average common shares outstanding	81,396	79,967	81,400	79,960
Increase in shares-potential exercise of options-diluted basis	844	—	836	—
Weighted average shares outstanding	82,240	79,967	82,236	79,960

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 per-share data)	June 30 2009			December 31 2008			June 30 2008
Assets:
Cash and investments	$	6,459,233		$	6,060,601		$	6,535,397
Investments in affiliates		108,767			99,712			112,683
Deferred policy acquisition costs		208,882			160,526			184,765
Prepaid federal income taxes		—			248,828			536,343
Derivative assets		179,837			179,515			251,003
Deferred income taxes, net		368,281			446,102			171,577
Reinsurance recoverables		570,245			492,359			176,686
Other assets		560,257			428,476			440,963
Total assets	$	8,455,502		$	8,116,119		$	8,409,417
Liabilities and stockholders’ equity:
Unearned premiums	$	1,120,359		$	916,724		$	1,048,064
Reserve for losses and loss adjustment expenses		3,304,236			3,224,542			2,287,742
Reserve for premium deficiency		40,861			86,861			583,543
Long-term debt and other borrowings		856,848			857,802			958,762
Variable interest entity debt		283,242			160,035			85,739
Derivative liabilities		379,270			519,260			657,426
Other liabilities		404,432			320,185			332,234
Total liabilities		6,389,248			6,085,409			5,953,510
Common stock		99			98			98
Additional paid-in capital		469,298			462,647			448,010
Retained earnings		1,764,878			1,766,946			1,981,046
Accumulated other comprehensive income		(168,021	)		(198,981	)		26,753
Total common stockholders’ equity		2,066,254			2,030,710			2,455,907
Total liabilities and stockholders’ equity	$	8,455,502		$	8,116,119		$	8,409,417
Book value per share	$	25.12		$	25.06		$	30.54

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Radian Group Inc. and Subsidiaries

Segment Information

Quarter Ended June 30, 2009

Exhibit C

(In thousands)	Mortgage Insurance			Financial Guaranty			Financial Services		Total
Revenues:
Net premiums written—insurance	$	154,919		$	6,982		$	—	$	161,901
Net premiums earned—insurance	$	170,047		$	23,582		$	—	$	193,629
Net investment income		32,298			20,951			2		53,251
Change in fair value of derivative instruments		(6,557	)		278,875			—		272,318
Net gains on other financial instruments		12,590			41,794			—		54,384
Net impairment losses recognized in earnings		(46	)		—			—		(46	)
Other income		3,748			66			74		3,888
Total revenues		212,080			365,268			76		577,424
Expenses:
Provision for losses		142,802			(10,052	)		—		132,750
Provision for premium deficiency		2,184			—			—		2,184
Policy acquisition costs		7,921			18,046			—		25,967
Other operating expenses		35,590			19,909			136		55,635
Interest expense		2,619			9,676			—		12,295
Total expenses		191,116			37,579			136		228,831
Equity in net income of affiliates		—			—			5,110		5,110
Pretax income		20,964			327,689			5,050		353,703
Income tax provision		7,948			112,019			1,861		121,828
Net income	$	13,016		$	215,670		$	3,189	$	231,875
Cash and investments	$	3,919,403		$	2,539,830		$	—	$	6,459,233
Deferred policy acquisition costs		28,674			180,208			—		208,882
Total assets		5,073,729			3,259,249			122,524		8,455,502
Unearned premiums		304,336			816,023			—		1,120,359
Reserve for losses and loss adjustment expenses		3,122,444			181,792			—		3,304,236
Derivative liabilities		23,086			356,184			—		379,270

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Radian Group Inc. and Subsidiaries

Segment Information

Quarter Ended June 30, 2008

Exhibit D

(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		18,155			(3,393	)		39		14,801
Net impairment losses recognized in earnings		(7,711	)		(15,341	)		—		(23,052	)
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	)
Cash and investments	$	4,054,264		$	2,481,133		$	—	$	6,535,397
Deferred policy acquisition costs		11,554			173,211			—		184,765
Total assets		5,037,309			3,166,316			205,792		8,409,417
Unearned premiums		359,080			688,984			—		1,048,064
Reserve for losses and loss adjustment expenses		2,120,577			167,165			—		2,287,742
Derivative liabilities		308,543			348,883			—		657,426

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Radian Group Inc. and Subsidiaries

Segment Information

Six Months Ended June 30, 2009

Exhibit E

(In thousands)	Mortgage Insurance			Financial Guaranty			Financial Services		Total
Revenues:
Net premiums written—insurance	$	316,878		$	1,779		$	—	$	318,657
Net premiums earned—insurance	$	347,930		$	56,914		$	—	$	404,844
Net investment income		63,643			45,889			2		109,534
Change in fair value of derivative instruments		(35,133	)		23,035			—		(12,098	)
Net gains on other financial instruments		25,500			53,764			—		79,264
Net impairment losses recognized in earnings		(680	)		—			—		(680	)
Other income		7,566			219			235		8,020
Total revenues		408,826			179,821			237		588,884
Expenses:
Provision for losses		464,486			(4,982	)		—		459,504
Provision for premium deficiency		(46,000	)		—			—		(46,000	)
Policy acquisition costs		13,660			26,261			—		39,921
Other operating expenses		71,284			35,742			211		107,237
Interest expense		8,313			16,281			—		24,594
Total expenses		511,743			73,302			211		585,256
Equity in net income of affiliates		—			—			15,662		15,662
Pretax (loss) income		(102,917	)		106,519			15,688		19,290
Income tax (benefit) provision		(27,136	)		26,249			5,739		4,852
Net (loss) income	$	(75,781	)	$	80,270		$	9,949	$	14,438

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Radian Group Inc. and Subsidiaries

Segment Information

Six Months Ended June 30, 2008

Exhibit F

(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		(11,404	)		(14,673	)		37		(26,040	)
Net impairment losses recognized in earnings		(14,885	)		(22,210	)		—		(37,095	)
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	)

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Radian Group Inc.

Financial Guaranty Supplemental Information

For the Quarter and Six Months Ended and as of June 30, 2009

Exhibit G

(In thousands)	Quarter Ended June 30					Six Months Ended June 30
	2009			2008		2009			2008
Net Premiums Earned:
Public finance direct	$	11,935		$	12,004	$	26,387		$	29,814
Public finance reinsurance		18,949			22,965		27,226			32,835
Structured direct		2,058			3,760		3,835			7,642
Structured reinsurance		5,655			5,092		14,296			10,691
Trade credit reinsurance		39			220		135			715
Net Premiums Earned—insurance		38,636			44,041		71,879			81,697
Impact of commutations		(15,054	)		—		(14,965	)		—
Total Net Premiums Earned—insurance	$	23,582		$	44,041	$	56,914		$	81,697
Refundings included in earned premium	$	10,479		$	16,664	$	23,523		$	28,321
Claims paid:
Trade credit reinsurance	$	693		$	397	$	871		$	983
Financial Guaranty		23,876			4,066		38,785			107,590	(1)
Total	$	24,569		$	4,463	$	39,656		$	108,573

Balance Sheet impact of initial adoption of SFAS No. 163 on January 1, 2009:

Increase in unearned premiums	$	(292,816	)
Increase in premiums receivable		161,422
Increase in deferred acquisition costs		66,006
Decrease in reserves for losses		8,163
Decrease in deferred taxes, net		20,239
Increase in premium taxes payable		(602	)
Decrease in equity	$	(37,588	)

Pre-tax Income Statement impact of Ambac Commutation:

($ in millions)
Decrease in premiums earned	$	(15.3	)
Decrease in provision for losses		38.6
Increase in amortization of policy acquisition costs		(8.9	)
Increase in pre-tax income	$	14.4

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

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Radian Group Inc.

Financial Guaranty Supplemental Information

For the Quarter and Six Months Ended and as of June 30, 2009

Exhibit H

($ in thousands, except ratios)	June 30 2009			December 31 2008		June 30 2008
Statutory Information:
Capital and surplus	$	914,458		$	968,197	$	982,340
Contingency reserve		504,464			515,023		485,972
Qualified statutory capital		1,418,922			1,483,220		1,468,312
Unearned premium reserve		690,512			729,274		866,504
Loss and loss expense reserve		104,441			82,340		54,391
Total statutory policyholders’ reserves		2,213,875			2,294,834		2,389,207
Present value of installment premiums		389,730			380,666		430,450
Soft capital facilities		150,000			150,000		150,000
Total statutory claims paying resources	$	2,753,605		$	2,825,500	$	2,969,657
Net debt service outstanding	$	131,821,119		$	138,430,925	$	163,252,124
Capital leverage ratio (1)		93			93		111
Claims paying leverage ratio (2)		48			49		55
Net par outstanding by product:
Public finance direct	$	18,329,451		$	17,836,221	$	18,824,907
Public finance reinsurance		32,830,674			31,578,163		43,114,460
Structured direct		44,679,632			46,001,355		47,235,046
Structured reinsurance		4,816,874			5,310,004		6,010,331
Total	$	100,656,631	(3)	$	100,725,743	$	115,184,744
Reserve for losses and LAE-GAAP Basis:
Financial Guaranty	$	171,459		$	219,671	$	143,790
Trade Credit		10,333			14,877		23,375
Total	$	181,792		$	234,548	$	167,165

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

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

(3) Includes $9.8 billion of par that was commuted with Ambac in July 2009. Also included in public finance net par outstanding is $3.1 billion for legally defeased bond issues where our financial guaranty policy has not been extinguished but cash or securities have been deposited in an escrow account for the benefit of bondholders. SFAS No. 163 requires that these contracts continue to be accounted for as outstanding contracts despite the elimination of substantially all risk.

Page 8

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter and Six Months Ended and as of June 30, 2009

Exhibit I

($ in millions)	Quarter Ended June 30										Six Months Ended June 30
	2009			%		2008			%		2009			%		2008			%
Primary new insurance written
Flow	$	5,499		100.0	%	$	9,432		97.9	%	$	11,109		100.0	%	$	18,716		93.9	%
Structured		—		—			205		2.1	%		—		—			1,218		6.1	%
Total Primary	$	5,499		100.0	%	$	9,637		100.0	%	$	11,109		100.0	%	$	19,934		100.0	%
Flow
Prime	$	5,492		99.9	%	$	8,743		92.7	%	$	11,089		99.8	%	$	16,951		90.5	%
Alt-A		1		—			475		5.0	%		10		0.1	%		1,058		5.7	%
A minus and below		6		0.1	%		214		2.3	%		10		0.1	%		707		3.8	%
Total Flow	$	5,499		100.0	%	$	9,432		100.0	%	$	11,109		100.0	%	$	18,716		100.0	%
Structured
Prime	$	—		—		$	204		99.5	%	$	—		—		$	1,216		99.8	%
Alt-A		—		—			1		0.5	%		—		—			2		0.2	%
Total Structured	$	—		—		$	205		100.0	%	$	—		—		$	1,218		100.0	%
Total
Prime	$	5,492		99.9	%	$	8,947		92.8	%	$	11,089		99.8	%	$	18,167		91.2	%
Alt-A		1		—			476		5.0	%		10		0.1	%		1,060		5.3	%
A minus and below		6		0.1	%		214		2.2	%		10		0.1	%		707		3.5	%
Total Primary	$	5,499		100.0	%	$	9,637		100.0	%	$	11,109		100.0	%	$	19,934		100.0	%
Total primary new insurance written by FICO score
Flow
>=740	$	4,009		72.9	%	$	4,364		46.3	%	$	7,894		71.1	%	$	7,830		41.8	%
680-739		1,402		25.5	%		3,452		36.6	%		2,991		26.9	%		7,067		37.8	%
620-679		87		1.6	%		1,512		16.0	%		223		2.0	%		3,450		18.4	%
<=619		1		—			104		1.1	%		1		—			369		2.0	%
Total Flow	$	5,499		100.0	%	$	9,432		100.0	%	$	11,109		100.0	%	$	18,716		100.0	%
Structured
>=740	$	—		—		$	134		65.4	%	$	—		—		$	768		63.1	%
680-739		—		—			64		31.2	%		—		—			433		35.5	%
620-679		—		—			7		3.4	%		—		—			17		1.4	%
Total Structured	$	—		—		$	205		100.0	%	$	—		—		$	1,218		100.0	%
Total
>=740	$	4,009		72.9	%	$	4,498		46.7	%	$	7,894		71.1	%	$	8,598		43.1	%
680-739		1,402		25.5	%		3,516		36.4	%		2,991		26.9	%		7,500		37.6	%
620-679		87		1.6	%		1,519		15.8	%		223		2.0	%		3,467		17.4	%
<=619		1		—			104		1.1	%		1		—			369		1.9	%
Total Primary	$	5,499		100.0	%	$	9,637		100.0	%	$	11,109		100.0	%	$	19,934		100.0	%
Percentage of primary new insurance written
Refinances		46	%				35	%				47	%				38	%
95.01% LTV and above		—					12	%				0.1	%				16	%
ARMs
Less than 5 years		0.1	%				—					0.1	%				1	%
5 years and longer		0.4	%				10	%				0.4	%				8	%
Primary risk written
Flow	$	1,178		100.0	%	$	2,231		97.9	%	$	2,374		100.0	%	$	4,547		93.5	%
Structured		—		—			48		2.1	%		—		—			314		6.5	%
Total Primary	$	1,178		100.0	%	$	2,279		100.0	%	$	2,374		100.0	%	$	4,861		100.0	%

Page 9

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter and Six Months Ended and as of June 30, 2009

Exhibit J

($ in millions)	June 30					June 30
	2009			%		2008			%
Primary insurance in force
Flow	$	123,412		79.5	%	$	115,425		76.3	%
Structured		31,845		20.5	%		35,754		23.7	%
Total Primary	$	155,257		100.0	%	$	151,179		100.0	%
Prime	$	113,749		73.3	%	$	105,049		69.5	%
Alt-A		30,918		19.9	%		34,239		22.6	%
A minus and below		10,590		6.8	%		11,891		7.9	%
Total Primary	$	155,257		100.0	%	$	151,179		100.0	%
Primary risk in force
Flow	$	30,574		87.7	%	$	29,003		85.6	%
Structured		4,272		12.3	%		4,879		14.4	%
Total Primary	$	34,846		100.0	%	$	33,882		100.0	%
Flow
Prime	$	25,269		82.7	%	$	23,125		79.7	%
Alt-A		3,372		11.0	%		3,759		13.0	%
A minus and below		1,933		6.3	%		2,119		7.3	%
Total Flow	$	30,574		100.0	%	$	29,003		100.0	%
Structured
Prime	$	2,231		52.2	%	$	2,537		52.0	%
Alt-A		1,340		31.4	%		1,499		30.7	%
A minus and below		701		16.4	%		843		17.3	%
Total Structured	$	4,272		100.0	%	$	4,879		100.0	%
Total
Prime	$	27,500		78.9	%	$	25,662		75.7	%
Alt-A		4,712		13.5	%		5,258		15.5	%
A minus and below		2,634		7.6	%		2,962		8.8	%
Total Primary	$	34,846		100.0	%	$	33,882		100.0	%
Total primary risk in force by FICO score
Flow
>=740	$	10,225		33.4	%	$	8,287		28.6	%
680-739		11,152		36.5	%		10,744		37.0	%
620-679		7,780		25.5	%		8,365		28.9	%
<=619		1,417		4.6	%		1,607		5.5	%
Total Flow	$	30,574		100.0	%	$	29,003		100.0	%
Structured
>=740	$	1,153		27.0	%	$	1,291		26.5	%
680-739		1,349		31.6	%		1,492		30.5	%
620-679		1,125		26.3	%		1,312		26.9	%
<=619		645		15.1	%		784		16.1	%
Total Structured	$	4,272		100.0	%	$	4,879		100.0	%
Total
>=740	$	11,378		32.7	%	$	9,578		28.3	%
680-739		12,501		35.9	%		12,236		36.1	%
620-679		8,905		25.6	%		9,677		28.6	%
<=619		2,062		5.8	%		2,391		7.0	%
Total Primary	$	34,846		100.0	%	$	33,882		100.0	%
Percentage of primary risk in force
Refinances		31	%				31	%
95.01% LTV and above		21	%				24	%
ARMs
Less than 5 years		8	%				10	%
5 years and longer		9	%				9	%
Pool risk in force
Prime	$	1,997		70.3	%	$	2,119		70.8	%
Alt-A		287		10.1	%		291		9.7	%
A minus and below		557		19.6	%		584		19.5	%
Total	$	2,841		100.0	%	$	2,994		100.0	%

Page 10

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter and Six Months Ended and as of June 30, 2009

Exhibit K

($ in millions)	June 30				June 30
	2009		%		2008		%
Total primary risk in force by LTV
85.00% and below	$	3,608	10.4	%	$	3,684	10.9	%
85.01% to 90.00%		12,709	36.5	%		11,576	34.2	%
90.01% to 95.00%		11,195	32.1	%		10,546	31.1	%
95.01% and above		7,334	21.0	%		8,076	23.8	%
Total	$	34,846	100.0	%	$	33,882	100.0	%
Total primary risk in force by policy year
2005 and prior	$	10,576	30.3	%	$	12,535	37.0	%
2006		4,807	13.8	%		5,516	16.3	%
2007		10,091	29.0	%		11,069	32.7	%
2008		7,054	20.2	%		4,762	14.0	%
2009		2,318	6.7	%		—	—
Total	$	34,846	100.0	%	$	33,882	100.0	%
Total pool risk in force by policy year
2005 and prior	$	2,304	81.1	%	$	2,437	81.4	%
2006		246	8.6	%		258	8.6	%
2007		232	8.2	%		243	8.1	%
2008		59	2.1	%		56	1.9	%
Total pool risk in force	$	2,841	100.0	%	$	2,994	100.0	%
Other risk in force
Second-lien
1st loss	$	223			$	312
2nd loss		131				460
NIMs		418				485
International
1st loss-Hong Kong primary mortgage insurance		358				469
Reinsurance		171				151
Credit default swaps		3,247				8,619
Other
Domestic credit default swaps		—				206
Total other risk in force	$	4,548			$	10,702
Risk to capital ratio-Radian Guaranty only (1)		15.9:1				14.9:1

(1) Starting June 30, 2009, risk in force on policies currently in default and for which loss reserves have been established are deducted from total risk in force used for our risk to capital calculations. Risk to capital ratios for the prior periods have not been restated to conform with this presentation.

Page 11

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter and Six Months Ended and as of June 30, 2009

Exhibit L

($ in thousands)	Quarter Ended June 30						Six Months Ended June 30
	2009			2008			2009			2008
Direct claims paid
Prime	$	72,752		$	64,048		$	142,211		$	124,706
Alt-A		41,441			47,746			87,711			83,478
A minus and below		35,154			49,270			71,884			97,631
Second-lien and other		18,338			47,775			105,945	(1)		93,212
Total	$	167,685		$	208,839		$	407,751	(1)	$	399,027
Average claim paid
Prime	$	41.3		$	36.7		$	41.6		$	36.7
Alt-A		52.6			51.1			53.1			50.5
A minus and below		38.6			35.4			38.4			36.3
Second-lien and other		43.4			34.2			42.2	(2)		34.3
Total	$	43.2		$	38.2		$	43.3	(2)	$	38.2
Loss ratio—GAAP Basis		83.7	%		211.4	%		132.9	%		238.3	%
Expense ratio—GAAP Basis (3)		25.5	%		55.3	%		24.3	% (3)		38.5	%
		109.2	%		266.7	%		157.2	%		276.8	%
Reserve for losses by category
Prime	$	965,690		$	559,947
Alt-A		887,068			722,813
A minus and below		448,527			410,373
Pool insurance		152,824			71,508
Second-lien		99,003			178,859
Other		1,781			1,237
Reserve for losses, net		2,554,893			1,944,737
Reinsurance recoverable (4)		567,551			175,840
Total	$	3,122,444		$	2,120,577

(1) Includes a $65 million payment related to the settlement of certain second-lien transactions, which were fully reserved for at December 31, 2008.

(2) Excludes $65 million payment noted in (1) above.

(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) Reinsurance recoverable on ceded losses related to captives ($471 million) and Smart Home ($96 million).

Page 12

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter and Six Months Ended and as of June 30, 2009

Exhibit M

	June 30 2009		December 31 2008		June 30 2008
Default Statistics
Primary insurance:
Flow
Prime
Number of insured loans	625,528		624,970		602,571
Number of loans in default	58,012		44,575		26,604
Percentage of loans in default	9.27	%	7.13	%	4.42	%
Alt-A
Number of insured loans	64,977		68,948		72,715
Number of loans in default	19,969		16,959		11,702
Percentage of loans in default	30.73	%	24.60	%	16.09	%
A minus and below
Number of insured loans	57,311		59,189		62,874
Number of loans in default	17,988		15,768		11,637
Percentage of loans in default	31.39	%	26.64	%	18.51	%
Total Flow
Number of insured loans	747,816		753,107		738,160
Number of loans in default	95,969		77,302		49,943
Percentage of loans in default	12.83	%	10.26	%	6.77	%
Structured
Prime
Number of insured loans	62,986		67,165		70,857
Number of loans in default	7,911		6,692		5,447
Percentage of loans in default	12.56	%	9.96	%	7.69	%
Alt-A
Number of insured loans	76,814		80,491		84,369
Number of loans in default	23,225		18,747		13,344
Percentage of loans in default	30.24	%	23.29	%	15.82	%
A minus and below
Number of insured loans	20,611		22,315		24,422
Number of loans in default	7,680		7,812		8,003
Percentage of loans in default	37.26	%	35.01	%	32.77	%
Total Structured
Number of insured loans	160,411		169,971		179,648
Number of loans in default	38,816		33,251		26,794
Percentage of loans in default	24.20	%	19.56	%	14.91	%
Total Primary Insurance
Prime
Number of insured loans	688,514		692,135		673,428
Number of loans in default	65,923		51,267		32,051
Percentage of loans in default	9.57	%	7.41	%	4.76	%
Alt-A
Number of insured loans	141,791		149,439		157,084
Number of loans in default	43,194		35,706		25,046
Percentage of loans in default	30.46	%	23.89	%	15.94	%
A minus and below
Number of insured loans	77,922		81,504		87,296
Number of loans in default	25,668		23,580		19,640
Percentage of loans in default	32.94	%	28.93	%	22.50	%
Total Primary Insurance
Number of insured loans	908,227		923,078		917,808
Number of loans in default (1)	134,785		110,553		76,737
Percentage of loans in default	14.84	%	11.98	%	8.36	%
Pool insurance:
Number of loans in default (2)	34,513		32,677		27,944

(1) Includes approximately 343, 539 and 272 defaults at June 30, 2009, December 31, 2008 and June 30, 2008, respectively, where reserves have not been established because no claim payment is currently anticipated.

(2) Includes approximately 20,814, 21,719 and 20,880 defaults at June 30, 2009, December 31, 2008 and June 30, 2008, 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, 2009

Exhibit N

	Quarter Ended June 30						Six Months Ended June 30
	2009			2008			2009			2008
Net Premiums Written (In thousands)
Primary and Pool Insurance	$	153,278		$	191,769		$	314,692		$	392,246
Second-lien		829			2,905			743			6,386
International		812			4,356			1,443			11,649
Total Net Premiums Written—Insurance	$	154,919		$	199,030		$	316,878		$	410,281
Net Premiums Earned (In thousands)
Primary and Pool Insurance	$	164,641		$	193,938		$	335,188		$	387,421
Second-lien		2,149			4,964			3,385			11,128
International		3,257			6,194			9,357			10,812
Total Net Premiums Earned—Insurance	$	170,047		$	205,096		$	347,930		$	409,361
SMART HOME (In millions)
Ceded Premiums Written	$	2.9		$	3.7		$	5.6		$	6.9
Ceded Premiums Earned	$	2.9		$	3.7		$	5.6		$	6.9
1st Lien Captives
Premiums ceded to captives (In millions)	$	37.5		$	34.1		$	72.0		$	69.8
% of total premiums		18.3	%		14.7	%		17.5	%		15.1	%
NIW subject to captives (In millions)	$	430		$	3,415		$	1,471		$	8,164
% of primary NIW		7.8	%		35.4	%		13.2	%		41.0	%
IIF included in captives (1)		34.8	%		37.2	%
RIF included in captives (1)		47.1	%		41.7	%
Persistency (twelve months ended June 30)		87.0	%		81.2	%
	June 30 2009			June 30 2008
SMART HOME
% of Primary RIF included in Smart Home Transactions (1)		3.5	%		4.3	%

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

Page 14

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter Ended and as of June 30, 2009

Exhibit O

Reinsurance Progression Toward Attachment - Summary by Book Year (1)
($ in millions)				June 30 2009										December 31 2008 (5)
Book Year (2):	Original Book RIF		Progression to Attachment Point	Gross Current RIF		Ceded Current RIF(3)		Net Current RIF		Ever-to- Date Incurred Losses		Reinsurance Benefit (4)		Gross Current RIF		Ceded Current RIF(3)		Net Current RIF		Ever-to- Date Incurred Losses		Reinsurance Benefit (4)
Pre-2006			0-50%	$	623	$	142	$	481	$	170			$	1,120	$	558	$	562	$	239
Pre-2006			50-75%		995		421		574		176				942		349		593		142
Pre-2006			75-99%		320		155		165		80				1,084		397		687		160
Pre-2006			Attached		2,124		494		1,630		348	$	120		1,355		237		1,118		184	$	75
Pre-2006 Total	$	25,839		$	4,062	$	1,212	$	2,850	$	774	$	120	$	4,501	$	1,541	$	2,960	$	725	$	75
2006			0-50%	$	2	$	—	$	2	$	—			$	32	$	2	$	30	$	1
2006			50-75%		30		2		28		1				62		4		58		3
2006			75-99%		52		3		49		4				310		42		268		18
2006			Attached		2,223		313		1,910		344	$	185		2,074		270		1,804		290	$	161
2006 Total	$	3,529		$	2,307	$	318	$	1,989	$	349	$	185	$	2,478	$	318	$	2,160	$	312	$	161
2007			0-50%	$	19	$	1	$	18	$	—			$	31	$	2	$	29	$	—
2007			50-75%		129		7		122		6				225		12		213		8
2007			75-99%		139		12		127		7				71		7		64		3
2007			Attached		4,114		455		3,659		357	$	151		4,329		454		3,875		350	$	147
2007 Total	$	5,246		$	4,401	$	475	$	3,926	$	370	$	151	$	4,656	$	475	$	4,181	$	361	$	147
2008			0-50%	$	1,797	$	169	$	1,628	$	32			$	2,167	$	197	$	1,970	$	25
2008			50-75%		306		35		271		8				42		4		38		1
2008			75-99%		2		—		2		—				—		—		—		—
2008			Attached		222		18		204		18	$	9		190		15		175		16	$	9
2008 Total	$	2,564		$	2,327	$	222	$	2,105	$	58	$	9	$	2,399	$	216	$	2,183	$	42	$	9
2009			0-50%	$	255	$	11	$	244	$	—			$	—	$	—	$	—	$	—
2009			50-75%		—		—		—		—				—		—		—		—
2009			75-99%		—		—		—		—				—		—		—		—
2009			Attached		—		—		—		—	$	—		—		—		—		—	$	—
2009 Total	$	258		$	255	$	11	$	244	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Quota Share			0-50%	$	—	$	—	$	—	$	—			$	—	$	—	$	—	$	—
Quota Share			50-75%		—		—		—		—				—		—		—		—
Quota Share			75-99%		—		—		—		—				—		—		—		—
Quota Share			Attached		108		35		73		31	$	14		116		37		79		27	$	12
Quota Share Total	$	313		$	108	$	35	$	73	$	31	$	14	$	116	$	37	$	79	$	27	$	12
Total Captive (Including Quota Share)	$	37,749		$	13,460	$	2,273	$	11,187	$	1,582	$	479	$	14,150	$	2,587	$	11,563	$	1,467	$	404
SmartHome			0-50%	$	34	$	16	$	18	$	10			$	117	$	51	$	66	$	27
SmartHome			50-75%		77		31		46		22				—		—		—		—
SmartHome			75-99%		—		—		—		—				—		—		—		—
SmartHome			Attached		1,108		511		597		392	$	96		1,188		521		667		346	$	91
Total SmartHome	$	3,900		$	1,219	$	558	$	661	$	424	$	96	$	1,305	$	572	$	733	$	373	$	91

(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) Risk ceded to reinsurers based on individual contract terms.

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

(5) Revised from December 31, 2008 originally presented.

Page 15

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter Ended and as of June 30, 2009

Exhibit P

($ in millions)	June 30				June 30
	2009		%		2008		%
Modified Pool Risk in Force—Primary Only
Prime
2005 and prior	$	83	54.6	%	$	90	56.6	%
2006		44	29.0	%		44	27.7	%
2007		21	13.8	%		22	13.8	%
2008		4	2.6	%		3	1.9	%
Total	$	152	100.0	%	$	159	100.0	%
Alt-A
2005 and prior	$	191	29.0	%	$	207	30.4	%
2006		161	24.4	%		165	24.3	%
2007		303	46.0	%		304	44.7	%
2008		4	0.6	%		4	0.6	%
Total	$	659	100.0	%	$	680	100.0	%
A minus and below
2005 and prior	$	14	58.3	%	$	16	61.6	%
2006		3	12.5	%		3	11.5	%
2007		7	29.2	%		7	26.9	%
Total	$	24	100.0	%	$	26	100.0	%
Total
2005 and prior	$	288	34.5	%	$	313	36.2	%
2006		208	24.9	%		212	24.5	%
2007		331	39.6	%		333	38.5	%
2008		8	1.0	%		7	0.8	%
Total Modified Pool Risk in Force	$	835	100.0	%	$	865	100.0	%

Page 16

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter and Six Months Ended and as of June 30, 2009

ALT-A

Exhibit Q

($ in millions)	June 30
	2009		%		2008		%
Primary risk in force by FICO score
>=740		1,156	24.5	%	$	1,287	24.5	%
680-739		2,271	48.2	%		2,509	47.7	%
660-679		691	14.7	%		772	14.7	%
620-659		562	11.9	%		654	12.4	%
<=619		32	0.7	%		36	0.7	%
Total	$	4,712	100.0	%	$	5,258	100.0	%
Primary risk in force by LTV
85.00% and below		1,222	25.9	%	$	1,340	25.5	%
85.01% to 90.00%		1,951	41.4	%		2,187	41.6	%
90.01% to 95.00%		1,215	25.8	%		1,367	26.0	%
95.01% and above		324	6.9	%		364	6.9	%
Total	$	4,712	100.0	%	$	5,258	100.0	%
Primary risk in force by policy year
2005 and prior	$	1,483	31.5	%	$	1,730	32.9	%
2006		1,041	22.1	%		1,178	22.4	%
2007		1,944	41.3	%		2,112	40.2	%
2008		242	5.1	%		238	4.5	%
2009		2	—			—	—
Total	$	4,712	100.0	%	$	5,258	100.0	%

Page 17

Radian Group Inc.

Financial Services Supplemental Information

For the Quarter and Six Months Ended and as of June 30, 2009

Exhibit R

(In thousands)	Quarter Ended June 30					Six Months Ended June 30
	2009		2008			2009			2008
Investment in Affiliates—Selected Information
Sherman
Balance, beginning of period	$	103,236	$	116,929		$	99,656		$	104,315
Net income for period		5,110		15,704			15,662			28,230
Dividends received		—		19,499			6,441			19,499
Other comprehensive income (loss)		373		(490	)		(158	)		(402	)
Balance, end of period	$	108,719	$	112,644		$	108,719		$	112,644
Portfolio Information:
Sherman
Total assets	$	2,103,158	$	2,432,122
Net revenues	$	320,449	$	398,374		$	668,483		$	790,342

Page 18

1601 Market Street Philadelphia, Pennsylvania 19103-2337 800 523.1988 215 564.6600 Forward-Looking Statements   Some of the statements in this release constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995. Generally, words such as “may,” “will,” “should,” “could,” “would,” “anticipate,” “expect,” “intend,” “estimate,” “plan,” “project,” “continue,” “goal” and “believe,” or other variations on these and other similar expressions identify forward-looking statements. Forward-looking statements are only predictions and, as such, are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Forward-looking statements are based upon assumptions as to future events or our future financial performance that may not prove to be accurate. These statements speak only as of the date of this news release, and we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Actual outcomes and results may differ materially from what is expressed or implied in these forward-looking statements. Factors that could cause actual results to differ from those projected in such forward-looking statements include, without limitation, the following:   •       changes in general financial and political conditions, such as a deepening of the existing national economic recession, further decreases in housing demand, mortgage originations or 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), a further reduction in the liquidity in the capital markets and further contraction of credit markets, further increases 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;   •       catastrophic events or further economic changes in geographic regions where our mortgage insurance or financial guaranty insurance in force is more concentrated;   •       our ability to successfully execute upon our internally sourced capital plan for our mortgage insurance business (which depends, in part, on the performance of our financial guaranty portfolio), and if necessary, to obtain additional capital to support new business writings in our mortgage insurance business and the long-term liquidity needs of our holding company (including significant payment obligations in 2010 and 2011); and to protect our credit ratings and the financial strength ratings of Radian Guaranty Inc., our principal mortgage insurance subsidiary, from further downgrades;   •       a further decrease in the volume of home mortgage originations due to reduced liquidity in the lending market, tighter underwriting standards and the ongoing deterioration in housing markets throughout the U.S.;   •       our ability to maintain adequate risk-to-capital ratios and surplus requirements in our mortgage insurance business in light of ongoing losses in this business and in our financial guaranty portfolio which, in the absence of new capital, may depend on our ability to execute upon strategies for which regulatory and other approvals are required and may not be obtained;

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1601 Market Street Philadelphia, Pennsylvania 19103-2337 800 523.1988 215 564.6600 •       our ongoing efforts to mitigate mortgage insurance losses (which have had a positive impact on our provision for losses due to increased levels of rescissions and denials) for which we may not continue to realize benefits at the levels we have recently experienced;   •       the concentration of our mortgage insurance business among a relatively small number of large customers;   •       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 of adjustable rate products, such as adjustable rate mortgages and interest-only mortgages, which have resulted in increased losses and are expected to result in further losses;   •       changes in persistency rates of our mortgage insurance policies;   •       an increase in the risk profile of our existing mortgage insurance portfolio due to mortgage refinancing in the current housing market;   •       further downgrades or threatened downgrades of, or other ratings actions with respect to, our credit ratings or the ratings assigned by the major rating agencies to any of our rated insurance subsidiaries at any time (in particular, the credit rating of Radian Group Inc. and the financial strength ratings assigned to Radian Guaranty Inc.);   •       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 rating agencies);   •       changes in the charters or business practices of Federal National Mortgage Association (“Fannie Mae”) and Freddie Mac, the largest purchasers of mortgage loans that we insure, and our ability to remain an eligible provider to both Freddie Mac and Fannie Mae;   •       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 outcome of existing investigations or the possibility of private lawsuits or other 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 (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;

Page 20

1601 Market Street Philadelphia, Pennsylvania 19103-2337 800 523.1988 215 564.6600 •       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 premium deficiencies for our mortgage insurance businesses, 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;   •       the ability of our primary insurance customers in our financial guaranty reinsurance business to provide appropriate surveillance and to mitigate losses adequately with respect to our assumed insurance portfolio; and the significant concentration of our financial guaranty reinsurance business in customers owned by the same holding company;   •       volatility in our earnings caused by changes in the fair value of our derivative instruments and our need to reevaluate the premium deficiency in our mortgage insurance business on a quarterly basis;   •       changes in accounting guidance from the Securities and Exchange Commission 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   •       our investment in Sherman Financial Group LLC, which could be negatively affected in the current credit environment if Sherman is unable to maintain sufficient sources of funding for its business activities or remain in compliance with its credit facilities.   For more information regarding these risks and uncertainties as well as certain additional risks that we face, you should review the risks described under Item 1A, “Risk Factors” under our Annual Report on Form 10-K for the year ended December 31, 2008 and subsequent reports and registration statements filed from time to time with the Securities and Exchange Commission.

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