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 3, 2010

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 3, 2010, Radian Group Inc. issued a news release announcing its financial results for the quarter ended June 30, 2010. 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 3, 2010.

* 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 3, 2010	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 3, 2010.

* Furnished herewith.

EX-99.1

Exhibit 99.1

Contact:

Emily Riley – phone: 215.231.1035

      email: emily.riley@radian.biz

Radian Reports Second Quarter 2010 Financial Results

- Per share loss of $4.31 in the quarter includes impact of losses on derivatives of $3.09 -

- Mortgage insurance delinquencies declined for second consecutive quarter -

- New mortgage insurance written grew from first quarter levels -

PHILADELPHIA, August 3, 2010 — Radian Group Inc. (NYSE: RDN) today reported a net loss for the quarter ended June 30, 2010, of $475.1 million, or $4.31 per diluted share, which reflects a pre-tax loss from the change in fair value of derivatives of $524.6 million, or $3.09 per share on an after-tax basis. This compares to net income of $231.9 million, or $2.82 per diluted share, for the prior-year quarter. Book value per share at June 30, 2010, was $13.40.

“Our second quarter results include significant fair value impact from the tightening of Radian’s credit spread and continued uncertainty regarding the aged delinquencies in our mortgage insurance book,” said Chief Executive Officer S.A. Ibrahim. “However, we are pleased with the signs of credit trend stabilization in both our mortgage insurance and financial guaranty businesses, which we believe are integral to Radian’s future success and long-term growth.”

Ibrahim added, “Radian grew its new insurance written to $2.7 billion, a meaningful jump from the first quarter of the year. We have provided our lending partners with tools to compare the competitive advantage of Radian’s products to FHA mortgage insurance, which has contributed to our increase in new business as we seek to recapture market share from FHA.”

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SECOND QUARTER HIGHLIGHTS

• The net loss in the second quarter was primarily driven by a $524.6 million pre-tax loss recognized on derivatives resulting mainly from an improved market perception of Radian’s credit risk that significantly tightened Radian’s credit spread, and from the widening of general corporate credit spreads. Unrealized losses reflected in our June 30, 2010, derivative liability using fair value estimates are significantly greater than the company’s expected credit losses on these derivative exposures.

• The risk-to-capital ratio for Radian Guaranty Inc., the company’s primary mortgage insurance subsidiary, was 17.9:1 at June 30, 2010, compared to a ratio of 16.9:1 at March 31, 2010, and 15.9:1 at June 30, 2009. Radian Group raised $526 million from its May stock offering, and contributed $100 million to Radian Guaranty during the quarter.

• The number of primary and pool delinquent loans decreased by 4.1 percent and 4.3 percent, respectively, from the first quarter of 2010, which was the second consecutive quarterly decline in delinquent loans. In addition, new delinquencies continued to decline slightly in July.

• The mortgage insurance provision for losses was $427.6 million in the second quarter, which includes a modest increase in mortgage insurance reserves of $59.7 million since March 31, 2010, to $3.7 billion. This increase in reserves, when combined with the decline in delinquent loans, further strengthens Radian’s reserve per delinquency for both primary and pool loans. The change in reserve resulted from several factors including the continued aging of the delinquency portfolio, second loss deals breaching subordination levels, a decrease in the company’s estimate for future rescissions and denials and the decline in delinquencies during the quarter.

• Total mortgage insurance claims paid were $337.3 million for the second quarter, which consisted of $332.8 million of first-liens and $4.5 million of second-liens. For 2010, the company continues to expect mortgage insurance claims paid to be approximately $1.5 billion.

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• New mortgage insurance written (NIW) was $2.7 billion in the second quarter, compared to $1.9 billion in the first quarter, and continued to consist of loans with excellent risk characteristics. The company maintained a market share of 21 percent.

• As of June 30, 2010, approximately 15,000 Radian-insured primary loans were in a Home Affordable Modification Program (HAMP) trial period, representing approximately 11 percent of primary delinquencies, and nearly 13,000 Radian-insured loans had completed the HAMP program. In addition, nearly 25 percent of cures reported to Radian in the second quarter were the result of loan modifications, including HAMP.

• Radian Asset Assurance Inc. continues to serve as an important source of capital support for Radian Guaranty and is expected to continue to provide Radian Guaranty with cash infusions over time.

• As of June 30, 2010, Radian Asset had approximately $1.0 billion in statutory surplus with an additional $1.4 billion in claims-paying resources.

• In June, Radian Asset paid an ordinary dividend of approximately $69 million to Radian Guaranty and expects to pay another dividend of approximately $60 million in 2011.

CONFERENCE CALL

Radian will discuss each of these items in its conference call today, Tuesday, August 3, 2010, at 10:00 a.m. Eastern time. The conference call will be broadcast live over the Internet at http://www.radian.biz/page?name=Webcasts or at www.radian.biz. The call may also be accessed by dialing 800-230-1092 inside the U.S., or 612-288-0329 for international callers, using passcode 165481 or by referencing Radian.

A replay of the webcast will be available on the Radian website approximately two hours after the live broadcast ends for a period of one year. A replay of the conference call will

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be available approximately two and a half hours after the call ends for a period of two weeks, using the following dial-in numbers and passcode: 800-475-6701 inside the U.S., or 320-365-3844 for international callers, passcode 165481.

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 website under Investors >Quarterly Results, or by clicking on http://www.radian.biz/page?name=QuarterlyResults.

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/page?name=FinancialReportsCorporate.

Exhibit A:	Condensed Consolidated Statements of Income
Exhibit B:	Condensed Consolidated Balance Sheets
Exhibit C:	Segment Information Quarter Ended June 30, 2010
Exhibit D:	Segment Information Quarter Ended June 30, 2009
Exhibit E:	Segment Information Six Months Ended June 30, 2010
Exhibit F:	Segment Information Six Months Ended June 30, 2009
Exhibit G:	Financial Guaranty Supplemental Information –
	For the Quarter and Six Months Ended and as of June 30, 2010
Exhibit H:	Financial Guaranty Supplemental Information –
	For the Quarter and Six Months Ended and as of June 30, 2010
Exhibit I:	Mortgage Insurance Supplemental Information –
	For the Quarter and Six Months Ended and as of June 30, 2010
	New Insurance Written and Risk Written
Exhibit J:	Mortgage Insurance Supplemental Information –

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	For the Quarter and Six Months Ended and as of June 30, 2010
	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, 2010
	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, 2010
	Claims and Reserves
Exhibit M:	Mortgage Insurance Supplemental Information –
	For the Quarter and Six Months Ended and as of June 30, 2010
	Default Statistics
Exhibit N:	Mortgage Insurance Supplemental Information –
	For the Quarter and Six Months Ended and as of June 30, 2010
	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, 2010
	Reinsurance Progression Toward Attachment – Summary by Book Year
Exhibit P:	Mortgage Insurance Supplemental Information –
	For the Quarter Ended and as of June 30, 2010
	Modified Pool
Exhibit Q:	Mortgage Insurance Supplemental Information –
	For the Quarter and Six Months Ended and as of June 30, 2010
	Alt-A Risk in Force

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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)	2010			2009			2010			2009
Revenues:
Net premiums written - insurance	$	159,901		$	161,901		$	315,402		$	318,657
Net premiums earned - insurance	$	203,446		$	193,629		$	401,714		$	404,844
Net investment income		48,619			53,251			93,977			109,534
Change in fair value of derivative instruments		(524,606	)		272,318			(602,560	)		(12,098	)
Net (losses) gains on other financial instruments		(5,938	)		54,384			(49,554	)		79,454
Net impairment losses recognized in earnings		(38	)		(46	)		(56	)		(870	)
Gain on sale of affiliate		34,815			—			34,815			—
Other income		(2,072	)		3,888			3,703			8,020
Total revenues		(245,774	)		577,424			(117,961	)		588,884
Expenses:
Provision for losses		435,166			132,750			979,046			459,504
Provision for premium deficiency		(7,354	)		2,184			(8,585	)		(46,000	)
Policy acquisition costs		16,797			25,967			31,665			39,921
Other operating expenses		35,165			55,635			100,221			107,237
Interest expense		8,245			12,295			19,049			24,594
Total expenses		488,019			228,831			1,121,396			585,256
Equity in net income of affiliates		6,570			5,110			14,668			15,662
Pretax (loss) income		(727,223	)		353,703			(1,224,689	)		19,290
Income tax (benefit) provision		(252,143	)		121,828			(439,254	)		4,852
Net (loss) income	$	(475,080	)	$	231,875		$	(785,435	)	$	14,438
Diluted net (loss) income per share (1)	$	(4.31	)	$	2.82		$	(8.15	)	$	0.18
(1)    Weighted average shares outstanding (In thousands)
Average common shares outstanding		82,260			81,396			82,332			81,400
Increase in average shares-common stock offering		28,022			—			14,088			—
Increase in shares-common stock equivalents-diluted basis		—			844			—			836
Weighted average shares outstanding		110,282			82,240			96,420			82,236

For Trend Information, refer to our Quarterly Financial Statistics on Radian’s (RDN) website.

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Radian Group Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

Exhibit B

(In thousands, except per-share data)	June 30 2010			December 31 2009			June 30 2009
Assets:
Cash and investments	$	7,277,607		$	6,214,376		$	6,459,233
Investment in affiliates		133			121,480			108,767
Deferred policy acquisition costs		148,623			160,281			208,882
Deferred income taxes, net		815,674			440,948			368,281
Reinsurance recoverables		585,938			628,572			570,245
Derivative assets		21,977			68,534			179,837
Other assets		524,501			442,115			560,257
Total assets	$	9,374,453		$	8,076,306		$	8,455,502
Liabilities and stockholders’ equity:
Unearned premiums	$	736,675		$	823,621		$	1,120,359
Reserve for losses and loss adjustment expenses		3,781,240			3,578,982			3,304,236
Reserve for premium deficiency		16,772			25,357			40,861
Long-term debt		665,381			698,222			856,848
VIE debt		627,638			296,080			283,242
Derivative liabilities		748,094			238,697			379,270
Payable for securities purchased		660,805			28,921			11,667
Other liabilities		358,219			381,432			392,765
Total liabilities		7,594,824			6,071,312			6,389,248
Common stock		150			100			99
Additional paid-in capital		1,002,501			473,759			469,298
Retained earnings		816,172			1,602,143			1,764,878
Accumulated other comprehensive loss		(39,194	)		(71,008	)		(168,021	)
Total common stockholders’ equity		1,779,629			2,004,994			2,066,254
Total liabilities and stockholders’ equity	$	9,374,453		$	8,076,306		$	8,455,502
Book value per share	$	13.40		$	24.22		$	25.12

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Radian Group Inc. and Subsidiaries

Segment Information

Quarter Ended June 30, 2010

Exhibit C

(In thousands)	Mortgage Insurance			Financial Guaranty			Financial Services		Total
Revenues:
Net premiums written - insurance	$	167,909		$	(8,008	)	$	—	$	159,901
Net premiums earned - insurance	$	179,992		$	23,454		$	—	$	203,446
Net investment income		28,544			20,075			—		48,619
Change in fair value of derivative instruments		(1,310	)		(523,296	)		—		(524,606	)
Net gains (losses) on other financial instruments		26,468			(32,406	)		—		(5,938	)
Net impairment losses recognized in earnings		(38	)		—			—		(38	)
Gain on sale of affiliate		—			—			34,815		34,815
Other income		1,623			(3,695	)		—		(2,072	)
Total revenues		235,279			(515,868	)		34,815		(245,774	)
Expenses:
Provision for losses		427,622			7,544			—		435,166
Provision for premium deficiency		(7,354	)		—			—		(7,354	)
Policy acquisition costs		12,113			4,684			—		16,797
Other operating expenses		25,639			9,476			50		35,165
Interest expense		1,549			6,696			—		8,245
Total expenses		459,569			28,400			50		488,019
Equity in net income of affiliates		—			—			6,570		6,570
Pretax (loss) income		(224,290	)		(544,268	)		41,335		(727,223	)
Income tax (benefit) provision		(71,763	)		(194,848	)		14,468		(252,143	)
Net (loss) income	$	(152,527	)	$	(349,420	)	$	26,867	$	(475,080	)
Cash and investments	$	3,886,819		$	3,390,788		$	—	$	7,277,607
Deferred policy acquisition costs		35,220			113,403			—		148,623
Total assets		5,393,030			3,981,423			—		9,374,453
Unearned premiums		207,354			529,321			—		736,675
Reserve for losses and loss adjustment expenses		3,656,746			124,494			—		3,781,240
Derivative liabilities		358			747,736			—		748,094
VIE debt		253,178			374,460			—		627,638

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Radian Group Inc. and Subsidiaries

Segment Information

Quarter Ended June 30, 2009

Exhibit D

(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
VIE debt		283,242			—			—		283,242

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Radian Group Inc. and Subsidiaries

Segment Information

Six Months Ended June 30, 2010

Exhibit E

(In thousands)	Mortgage Insurance			Financial Guaranty			Financial Services		Total
Revenues:
Net premiums written - insurance	$	324,941		$	(9,539	)	$	—	$	315,402
Net premiums earned - insurance	$	357,331		$	44,383		$	—	$	401,714
Net investment income		54,903			39,074			—		93,977
Change in fair value of derivative instruments		(1,033	)		(601,527	)		—		(602,560	)
Net gains (losses) on other financial instruments		25,049			(74,603	)		—		(49,554	)
Net impairment losses recognized in earnings		(56	)		—			—		(56	)
Gain on sale of affiliate		—			—			34,815		34,815
Other income		3,422			218			63		3,703
Total revenues		439,616			(592,455	)		34,878		(117,961	)
Expenses:
Provision for losses		956,713			22,333			—		979,046
Provision for premium deficiency		(8,585	)		—			—		(8,585	)
Policy acquisition costs		22,617			9,048			—		31,665
Other operating expenses		71,872			28,149			200		100,221
Interest expense		3,669			15,380			—		19,049
Total expenses		1,046,286			74,910			200		1,121,396
Equity in net income of affiliates		—			78			14,590		14,668
Pretax (loss) income		(606,670	)		(667,287	)		49,268		(1,224,689	)
Income tax (benefit) provision		(217,610	)		(238,889	)		17,245		(439,254	)
Net (loss) income	$	(389,060	)	$	(428,398	)	$	32,023	$	(785,435	)

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Radian Group Inc. and Subsidiaries

Segment Information

Six Months Ended June 30, 2009

Exhibit F

(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		25,667			53,787			—		79,454
Net impairment losses recognized in earnings		(847	)		(23	)		—		(870	)
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.

Financial Guaranty Supplemental Information

For the Quarter and Six Months Ended and as of June 30, 2010

Exhibit G

(In thousands)	Quarter Ended June  30						Six Months Ended June  30
	2010			2009			2010			2009
Net Premiums Earned:
Public finance direct	$	15,897		$	11,935		$	28,233		$	26,387
Public finance reinsurance		6,196			18,949			13,109			27,226
Structured direct		443			2,058			1,160			3,835
Structured reinsurance		932			5,655			1,847			14,296
Trade credit reinsurance		3			39			51			135
Net Premiums Earned - insurance		23,471			38,636			44,400			71,879
Impact of commutations		(17	)		(15,054	)		(17	)		(14,965	)
Total Net Premiums Earned - insurance	$	23,454		$	23,582		$	44,383		$	56,914
Refundings included in earned premium	$	10,205		$	10,479		$	19,738		$	23,523
Claims paid:
Trade credit reinsurance	$	(2	)	$	693		$	1,084		$	871
Financial Guaranty		21,841			23,876			25,198			38,785
Total	$	21,839		$	24,569		$	26,282		$	39,656

Impact of adoption of amendment to accounting standard regarding VIEs on January 1, 2010:

(In millions)
Balance Sheet Increase (Decrease):
Investments	$	89.4
Other assets		121.0
VIE debt		321.0
Derivative liabilities		(128.6	)
Derivative liabilities-VIE		17.4
Other liabilities		0.6
Income Statement Increase (Decrease):
Net investment income	$	2.7
Net (losses) gains on other financial instruments		(60.9	)
Change in fair value of derivative instruments		57.5
Other income		3.9
Other operating expenses		2.0
Interest expense		1.2

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Radian Group Inc.

Financial Guaranty Supplemental Information

For the Quarter and Six Months Ended and as of June 30, 2010

Exhibit H

($ in thousands, except ratios)	June 30 2010		December 31 2009		June 30 2009
Statutory Information:
Capital and surplus	$	974,174	$	1,062,637	$	914,458
Contingency reserve		400,615		366,108		504,464
Qualified statutory capital		1,374,789		1,428,745		1,418,922
Unearned premium reserve		550,952		595,819		690,512
Loss and loss expense reserve		102,831		128,754		104,441
Total statutory policyholders’ reserves		2,028,572		2,153,318		2,213,875
Present value of installment premiums		227,634		260,662		389,730
Soft capital facilities		150,000		150,000		150,000
Total statutory claims paying resources	$	2,406,206	$	2,563,980	$	2,753,605
Net debt service outstanding	$	102,502,428	$	110,207,923	$	131,821,119
Capital leverage ratio (1)		75		77		93
Claims paying leverage ratio (2)		43		43		48
Net par outstanding by product:
Public finance direct	$	16,718,347	$	17,536,616	$	18,329,451
Public finance reinsurance		22,774,238		24,180,588		32,830,674
Structured direct		39,902,271		43,528,366		44,679,632
Structured reinsurance		1,872,802		2,174,433		4,816,874
Total (3)	$	81,267,658	$	87,420,003	$	100,656,631
Reserve for losses and LAE-GAAP Basis:
Financial Guaranty	$	119,256	$	121,833	$	171,459
Trade Credit		5,238		6,611		10,333
Total	$	124,494	$	128,444	$	181,792

(1) The capital leverage ratio is derived by dividing net debt service outstanding by qualified statutory capital.

(2) The claims paying leverage ratio is derived by dividing net debt service outstanding by total statutory claims paying resources.

(3) Included in public finance net par outstanding is $2.0 billion, $2.2 billion and $3.1 billion at June 30, 2010, December 31, 2009 and June 30, 2009, respectively, 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. The accounting standard for financial guarantee insurance contracts requires that these contracts continue to be accounted for as outstanding contracts despite the elimination of substantially all risk.

Page 13

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter and Six Months Ended and as of June 30, 2010

Exhibit I

($ in millions)	Quarter Ended June 30										Six Months Ended June  30
	2010			%		2009			%		2010			%		2009			%
Primary new insurance written
Flow	$	2,654		100.0	%	$	5,499		100.0	%	$	4,551		100.0	%	$	11,109		100.0	%
Total Primary	$	2,654		100.0	%	$	5,499		100.0	%	$	4,551		100.0	%	$	11,109		100.0	%
Total
Prime	$	2,653		100.0	%	$	5,492		99.9	%	$	4,549		100.0	%	$	11,089		99.8	%
Alt-A		—		—			1		—			—		—			10		0.1	%
A minus and below		1		—			6		0.1	%		2		—			10		0.1	%
Total Flow	$	2,654		100.0	%	$	5,499		100.0	%	$	4,551		100.0	%	$	11,109		100.0	%
Total primary new insurance written by FICO score
Total
>=740	$	2,100		79.1	%	$	4,009		72.9	%	$	3,561		78.2	%	$	7,894		71.1	%
680-739		552		20.8	%		1,402		25.5	%		987		21.7	%		2,991		26.9	%
620-679		2		0.1	%		87		1.6	%		3		0.1	%		223		2.0	%
<=619		—		—			1		—			—		—			1		—
Total Flow	$	2,654		100.0	%	$	5,499		100.0	%	$	4,551		100.0	%	$	11,109		100.0	%
Percentage of primary new insurance written
Refinances		22	%				46	%				27	%				47	%
95.01% LTV and above		0.2	%				—					0.4	%				0.1	%
ARMs
Less than 5 years		0.2	%				0.1	%				0.1	%				0.1	%
5 years and longer		7.0	%				0.4	%				6.2	%				0.4	%
Primary risk written
Flow	$	641		100.0	%	$	1,178		100.0	%	$	1,070		100.0	%	$	2,374		100.0	%
Total Primary	$	641		100.0	%	$	1,178		100.0	%	$	1,070		100.0	%	$	2,374		100.0	%

Page 14

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter and Six Months Ended and as of June 30, 2010

Exhibit J

($ in millions)	June 30					June 30
	2010			%		2009			%
Primary insurance in force
Flow	$	118,486		86.3	%	$	123,412		79.5	%
Structured		18,799		13.7	%		31,845		20.5	%
Total Primary	$	137,285		100.0	%	$	155,257		100.0	%
Prime	$	108,488		79.0	%	$	113,749		73.3	%
Alt-A		19,580		14.3	%		30,918		19.9	%
A minus and below		9,217		6.7	%		10,590		6.8	%
Total Primary	$	137,285		100.0	%	$	155,257		100.0	%
Primary risk in force
Flow	$	29,188		89.4	%	$	30,574		87.7	%
Structured		3,477		10.6	%		4,272		12.3	%
Total Primary	$	32,665		100.0	%	$	34,846		100.0	%
Flow
Prime	$	24,615		84.3	%	$	25,269		82.7	%
Alt-A		2,873		9.9	%		3,372		11.0	%
A minus and below		1,700		5.8	%		1,933		6.3	%
Total Flow	$	29,188		100.0	%	$	30,574		100.0	%
Structured
Prime	$	1,926		55.4	%	$	2,231		52.2	%
Alt-A		945		27.2	%		1,340		31.4	%
A minus and below		606		17.4	%		701		16.4	%
Total Structured	$	3,477		100.0	%	$	4,272		100.0	%
Total
Prime	$	26,541		81.2	%	$	27,500		78.9	%
Alt-A		3,818		11.7	%		4,712		13.5	%
A minus and below		2,306		7.1	%		2,634		7.6	%
Total Primary	$	32,665		100.0	%	$	34,846		100.0	%
Total primary risk in force by FICO score
Flow
>=740	$	10,712		36.7	%	$	10,225		33.4	%
680-739		10,354		35.5	%		11,152		36.5	%
620-679		6,878		23.6	%		7,780		25.5	%
<=619		1,244		4.2	%		1,417		4.6	%
Total Flow	$	29,188		100.0	%	$	30,574		100.0	%
Structured
>=740	$	956		27.5	%	$	1,153		27.0	%
680-739		1,061		30.5	%		1,349		31.6	%
620-679		901		25.9	%		1,125		26.3	%
<=619		559		16.1	%		645		15.1	%
Total Structured	$	3,477		100.0	%	$	4,272		100.0	%
Total
>=740	$	11,668		35.7	%	$	11,378		32.7	%
680-739		11,415		35.0	%		12,501		35.9	%
620-679		7,779		23.8	%		8,905		25.6	%
<=619		1,803		5.5	%		2,062		5.8	%
Total Primary	$	32,665		100.0	%	$	34,846		100.0	%
Percentage of primary risk in force
Refinances		31	%				31	%
95.01% LTV and above		20	%				21	%
ARMs
Less than 5 years		7	%				8	%
5 years and longer		8	%				9	%
Pool risk in force
Prime	$	1,867		73.5	%	$	1,997		70.3	%
Alt-A		179		7.0	%		287		10.1	%
A minus and below		495		19.5	%		557		19.6	%
Total	$	2,541		100.0	%	$	2,841		100.0	%

Page 15

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter and Six Months Ended and as of June 30, 2010

Exhibit K

($ in millions)	June 30				June 30
	2010		%		2009		%
Total primary risk in force by LTV
85.00% and below	$	3,051	9.3	%	$	3,608	10.4	%
85.01% to 90.00%		12,355	37.8	%		12,709	36.5	%
90.01% to 95.00%		10,737	32.9	%		11,195	32.1	%
95.01% and above		6,522	20.0	%		7,334	21.0	%
Total	$	32,665	100.0	%	$	34,846	100.0	%
Total primary risk in force by policy year
2005 and prior	$	8,936	27.4	%	$	10,576	30.3	%
2006		4,055	12.4	%		4,807	13.8	%
2007		8,867	27.1	%		10,091	29.0	%
2008		6,398	19.6	%		7,054	20.2	%
2009		3,363	10.3	%		2,318	6.7	%
2010		1,046	3.2	%		—	—
Total	$	32,665	100.0	%	$	34,846	100.0	%
Total pool risk in force by policy year
2005 and prior	$	2,075	81.6	%	$	2,304	81.1	%
2006		210	8.3	%		246	8.6	%
2007		206	8.1	%		232	8.2	%
2008		50	2.0	%		59	2.1	%
Total pool risk in force	$	2,541	100.0	%	$	2,841	100.0	%
Other risk in force
Second-lien
1st loss	$	129			$	223
2nd loss		86				131
NIMs		268				418
International
1st loss-Hong Kong primary mortgage insurance		185				358
Reinsurance		—				171
Credit default swaps		109				3,247
Total other risk in force	$	777			$	4,548
Risk to capital ratio-Radian Guaranty only		17.9:1				15.9:1

Page 16

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter and Six Months Ended and as of June 30, 2010

Exhibit L

($ in thousands)	Quarter Ended June  30						Six Months Ended June 30
	2010			2009			2010			2009
Direct claims paid
Prime	$	178,417		$	72,752		$	317,916		$	142,211
Alt-A		89,622			41,441			160,134			87,711
A minus and below		64,742			35,154			113,519			71,884
Second-lien and other		4,494			18,338			12,473			40,945
Subtotal		337,275			167,685			604,042			342,751
Impact of first-lien terminations		239			—			80,349			—
Impact of captive terminations		(191	)		—			(627	)		—
Impact of second-lien terminations		—			—			10,834			65,000
Total	$	337,323		$	167,685		$	694,598		$	407,751
Average claim paid (1)
Prime	$	45.0		$	41.3		$	45.5		$	41.6
Alt-A		59.3			52.6			59.9			53.1
A minus and below		43.1			38.6			44.3			38.4
Second-lien and other		32.3			43.4			32.7			42.2
Total	$	47.4		$	43.2		$	47.9		$	43.3
Loss ratio - GAAP Basis		237.6	%		83.7	%		267.7	%		132.9	%
Expense ratio - GAAP Basis		21.0	%		25.5	%		26.4	%		24.3	%
		258.6	%		109.2	%		294.1	%		157.2	%
Reserve for losses by category
Prime	$	1,386,271		$	965,690
Alt-A		815,055			887,068
A minus and below		400,679			448,527
Pool insurance		457,129			152,824
Second-lien		31,795			99,003
Other		80			1,781
Reserve for losses, net		3,091,009			2,554,893
Reinsurance recoverable		565,737	(2)		567,551
Total	$	3,656,746		$	3,122,444

(1) Calculated without giving effect to the impact of first-lien, second-lien and captive terminations.

(2) Reinsurance recoverable on ceded losses related to captives ($481 million) and Smart Home ($85 million).

Page 17

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter and Six Months Ended and as of June 30, 2010

Exhibit M

	June 30 2010		December 31 2009		June 30 2009
Default Statistics
Primary insurance:
Flow
Prime
Number of insured loans	599,909		614,590		625,528
Number of loans in default	74,800		78,130		58,012
Percentage of loans in default	12.47	%	12.71	%	9.27	%
Alt-A
Number of insured loans	56,323		60,616		64,977
Number of loans in default	20,289		22,177		19,969
Percentage of loans in default	36.02	%	36.59	%	30.73	%
A minus and below
Number of insured loans	50,719		53,932		57,311
Number of loans in default	18,100		20,911		17,988
Percentage of loans in default	35.69	%	38.77	%	31.39	%
Total Flow
Number of insured loans	706,951		729,138		747,816
Number of loans in default	113,189		121,218		95,969
Percentage of loans in default	16.01	%	16.62	%	12.83	%
Structured
Prime
Number of insured loans	45,201		52,629		62,986
Number of loans in default	6,548		7,520		7,911
Percentage of loans in default	14.49	%	14.29	%	12.56	%
Alt-A
Number of insured loans	31,852		43,615		76,814
Number of loans in default	11,485		15,295		23,225
Percentage of loans in default	36.06	%	35.07	%	30.24	%
A minus and below
Number of insured loans	17,593		19,287		20,611
Number of loans in default	6,793		7,965		7,680
Percentage of loans in default	38.61	%	41.30	%	37.26	%
Total Structured
Number of insured loans	94,646		115,531		160,411
Number of loans in default	24,826		30,780		38,816
Percentage of loans in default	26.23	%	26.64	%	24.20	%
Total Primary Insurance
Prime
Number of insured loans	645,110		667,219		688,514
Number of loans in default	81,348		85,650		65,923
Percentage of loans in default	12.61	%	12.84	%	9.57	%
Alt-A
Number of insured loans	88,175		104,231		141,791
Number of loans in default	31,774		37,472		43,194
Percentage of loans in default	36.04	%	35.95	%	30.46	%
A minus and below
Number of insured loans	68,312		73,219		77,922
Number of loans in default	24,893		28,876		25,668
Percentage of loans in default	36.44	%	39.44	%	32.94	%
Total Primary Insurance
Number of insured loans	801,597		844,669		908,227
Number of loans in default (1)	138,015		151,998		134,785
Percentage of loans in default	17.22	%	17.99	%	14.84	%
Pool insurance:
Number of loans in default (2)	32,486		36,397		34,513

(1) Includes an estimated 1,159, 3,302 and 6,782 defaults at June 30, 2010, December 31, 2009 and June 30, 2009, respectively, for which reserves have not been established because they were associated with transactions where no claim payment was anticipated primarily due to deductibles or where a partial reserve has been recorded that is less than the gross calculated reserve due to the presence of a deductible.

(2) Includes an estimated 12,836, 18,033 and 22,417 defaults at June 30, 2010, December 31, 2009 and June 30, 2009, respectively, for which reserves have not been established because they were associated with transactions where no claim payment was anticipated primarily due to deductibles or where a partial reserve has been recorded that is less than the gross calculated reserve due to the presence of a deductible.

Page 18

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter and Six Months Ended and as of June 30, 2010

Exhibit N

	Quarter Ended June  30						Six Months Ended June  30
	2010			2009			2010			2009
Net Premiums Written (In thousands)
Primary and Pool Insurance	$	167,250		$	153,278		$	324,663		$	314,692
Second-lien		734			829			279			743
International		(75	)		812			(1	)		1,443
Total Net Premiums Written - Insurance	$	167,909		$	154,919		$	324,941		$	316,878
Net Premiums Earned (In thousands)
Primary and Pool Insurance	$	176,622		$	164,641		$	350,734		$	335,188
Second-lien		734			2,149			1,245			3,385
International		2,636			3,257			5,352			9,357
Total Net Premiums Earned - Insurance	$	179,992		$	170,047		$	357,331		$	347,930
SMART HOME (In millions)
Ceded Premiums Written	$	2.6		$	2.9		$	4.9		$	5.6
Ceded Premiums Earned	$	2.6		$	2.9		$	4.9		$	5.6
1st Lien Captives
Premiums ceded to captives (In thousands)	$	24,684		$	37,534		$	50,158		$	72,034
% of total premiums		12.1	%		18.3	%		12.4	%		17.5	%
NIW subject to captives (In thousands)	$	(204	)	$	430,618		$	129		$	1,471,351
% of primary NIW		(< 1	%)		7.8	%		< 1	%		13.2	%
IIF included in captives (1)		28.8	%		34.8	%
RIF included in captives (1)		30.5	%		39.0	%
Persistency (twelve months ended June 30)		81.7	%(2)		87.0	%
	June 30 2010			June 30 2009
SMART HOME
% of Primary RIF included in Smart Home Transactions (1)		3.3	%		3.5	%

(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.

(2) Impacted by the termination of transactions in 2009 and 2010.

Page 19

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter Ended and as of June 30, 2010

Exhibit O

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

($ in millions)				June 30 2010										December  31 2009
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%	$	316	$	53	$	263	$	138			$	375	$	62	$	313	$	142
Pre-2006			50-75%		277		159		118		81				325		185		140		86
Pre-2006			75-99%		468		226		242		122				557		231		326		127
Pre-2006			Attached		1,631		451		1,180		428	$	157		1,673		452		1,221		381	$	139
Pre-2006 Total	$	20,426		$	2,692	$	889	$	1,803	$	769	$	157	$	2,930	$	930	$	2,000	$	736	$	139
2006			0-50%	$	1	$	—	$	1	$	—			$	1	$	—	$	1	$	—
2006			50-75%		1		—		1		—				16		1		15		1
2006			75-99%		12		1		11		1				13		1		12		1
2006			Attached		1,600		208		1,392		416	$	164		1,695		242		1,453		355	$	163
2006 Total	$	2,760		$	1,614	$	209	$	1,405	$	417	$	164	$	1,725	$	244	$	1,481	$	357	$	163
2007			0-50%	$	—	$	—	$	—	$	—			$	1	$	—	$	1	$	—
2007			50-75%		1		—		1		—				12		1		11		—
2007			75-99%		17		1		16		1				15		1		14		1
2007			Attached		3,285		383		2,902		542	$	222		3,446		391		3,055		437	$	191
2007 Total	$	4,306		$	3,303	$	384	$	2,919	$	543	$	222	$	3,474	$	393	$	3,081	$	438	$	191
2008			0-50%	$	172	$	10	$	162	$	4			$	298	$	22	$	276	$	6
2008			50-75%		105		12		93		4				149		8		141		6
2008			75-99%		257		22		235		15				1,454		166		1,288		56
2008			Attached		1,426		164		1,262		95	$	21		159		14		145		19	$	11
2008 Total	$	2,381		$	1,960	$	208	$	1,752	$	118	$	21	$	2,060	$	210	$	1,850	$	87	$	11
2009			0-50%	$	263	$	12	$	251	$	1			$	284	$	12	$	272	$	—
2009			50-75%		—		—		—		—				—		—		—		—
2009			75-99%		—		—		—		—				—		—		—		—
2009			Attached		—		—		—		—	$	—		—		—		—		—	$	—
2009 Total	$	288		$	263	$	12	$	251	$	1	$	—	$	284	$	12	$	272	$	—	$	—
Quota Share			0-50%	$	—	$	—	$	—	$	—			$	—	$	—	$	—	$	—
Quota Share			50-75%		—		—		—		—				—		—		—		—
Quota Share			75-99%		—		—		—		—				—		—		—		—
Quota Share			Attached		97		31		66		23	$	9		102		33		69		37	$	17
Quota Share Total	$	313		$	97	$	31	$	66	$	23	$	9	$	102	$	33	$	69	$	37	$	17
Total Captive (Including Quota Share)	$	30,474		$	9,929	$	1,733	$	8,196	$	1,871	$	573	$	10,575	$	1,822	$	8,753	$	1,655	$	521
SmartHome			0-50%	$	30	$	13	$	17	$	13			$	32	$	14	$	18	$	12
SmartHome			50-75%		—		—		—		—				71		29		42		23
SmartHome			75-99%		67		29		38		26				—		—		—		—
SmartHome			Attached		966		469		497		445	$	113		1,029		492		537		435	$	143
Total SmartHome	$	3,900		$	1,063	$	511	$	552	$	484	$	113	$	1,132	$	535	$	597	$	470	$	143

(1) Data is presented in aggregate for all trusts for captives with risk in force at each period end only. Actual trust attachment points and exit points vary by individual contract. The attachment point 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 for captives with risk in force at period end only. Reinsurance benefit at June 30, 2010 and December 31, 2009 excludes $0.6 million and $71 million of recoveries recognized from the terminations of certain captive reinsurance agreements during the first half of 2010 and for the year ended December 31, 2009, respectively.

Page 20

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter Ended and as of June 30, 2010

Modified Pool

Exhibit P

($ in millions)	June 30				June 30
	2010		%		2009		%
Primary risk in force by policy year
2005 and prior	$	195	42.7	%	$	288	34.5	%
2006		45	9.8	%		208	24.9	%
2007		210	46.0	%		331	39.6	%
2008		7	1.5	%		8	1.0	%
Total	$	457	100.0	%	$	835	100.0	%
Primary risk in force by product
Prime	$	77	16.8	%	$	152	18.2	%
Alt-A		362	79.2	%		659	78.9	%
A minus and below		18	4.0	%		24	2.9	%
Total	$	457	100.0	%	$	835	100.0	%
Primary insurance in force by product
Prime	$	722	11.4	%	$	2,972	16.8	%
Alt-A		5,441	86.2	%		14,409	81.6	%
A minus and below		152	2.4	%		279	1.6	%
Total	$	6,315	100.0	%	$	17,660	100.0	%
Default Statistics:
Primary Insurance:
Total modified pool
Number of insured loans			25,325	(1)			82,751
Number of loans in default			7,759				21,593
Percentage of loans in default			30.64	%			26.09	%

(1) Impacted by the termination of transactions in 2009 and 2010.

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Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter and Six Months Ended and as of June 30, 2010

ALT-A

Exhibit Q

($ in millions)	June 30
	2010		%		2009		%
Primary risk in force by FICO score
>=740	$	941	24.7	%	$	1,156	24.5	%
680-739		1,842	48.2	%		2,271	48.2	%
660-679		554	14.5	%		691	14.7	%
620-659		455	11.9	%		562	11.9	%
<=619		26	0.7	%		32	0.7	%
Total	$	3,818	100.0	%	$	4,712	100.0	%
Primary risk in force by LTV
85.00% and below	$	851	22.3	%	$	1,222	25.9	%
85.01% to 90.00%		1,663	43.5	%		1,951	41.4	%
90.01% to 95.00%		1,037	27.2	%		1,215	25.8	%
95.01% and above		267	7.0	%		324	6.9	%
Total	$	3,818	100.0	%	$	4,712	100.0	%
Primary risk in force by policy year
2005 and prior	$	1,235	32.4	%	$	1,483	31.5	%
2006		791	20.7	%		1,041	22.1	%
2007		1,576	41.3	%		1,944	41.3	%
2008		215	5.6	%		242	5.1	%
2009		1	—			2	—
Total	$	3,818	100.0	%	$	4,712	100.0	%

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Forward-Looking Statements

All statements in this report 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 United States Private Securities Litigation Reform Act of 1995. In most cases, forward-looking statements may be identified by words such as “anticipate,” “may,” “will,” “could,” “should,” “would,” “expect,” “intend,” “plan,” “goal,” “contemplate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” or the negative or other variations on these words and other similar expressions. These statements, which include, without limitation, projections regarding our future performance and financial condition are made on the basis of management’s current views and assumptions with respect to future events. Any forward-looking statement is not a guarantee of future performance and actual results could differ materially from those contained in the forward-looking information. 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. 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 the failure or significant delay of the U.S. economy to recover from the most recent recession or the U.S. economy reentering a recessionary period following a brief period of stabilization or even growth, the lack of meaningful liquidity in the capital markets or in the credit markets, a prolonged period of high unemployment rates and limited home price appreciation or further depreciation (which has resulted in some borrowers voluntarily defaulting on their mortgages when their mortgage balances exceed the value of their homes), 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 is more concentrated;

• our ability to successfully execute upon our 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

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writings in our mortgage insurance business and the long-term liquidity needs of our holding company;

• a further decrease in the volume of home mortgage originations due to reduced liquidity in the lending market, tighter underwriting standards and the decrease in housing demand 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 continued deterioration in our financial guaranty portfolio which, in the absence of new capital, may depend on our ability to execute strategies for which regulatory and other approvals are required and may not be obtained;

• our ability to continue to effectively mitigate our mortgage insurance and financial guaranty losses;

• reduced opportunities for loss mitigation in markets where housing values do not appreciate or continue to decline;

• changes in the level of future rescissions and claim denials, which have materially mitigated our paid losses and resulted in a significant reduction in our loss reserves;

• the negative impact our increased levels of insurance rescissions and claim denials may have on our relationships with customers, including the heightened risk of potential disputes and litigation; and, in the event that we are unsuccessful in defending our rescissions or denials, the need to reestablish loss reserves for, and reassume risk on, rescinded loans and pay additional claims;

• 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;

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• 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;

• a decrease 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) or new entrants to the industry;

• 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;

• changes to the current system of housing finance, including the possibility of a new system in which private mortgage insurers are not required or their services are significantly limited in scope;

• the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act on the financial services industry in general, and our mortgage insurance and financial guaranty businesses in particular;

• the application of existing federal or state consumer, lending, insurance, tax, 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, or the possibility of additional, lawsuits or investigations, and (ii) legislative and regulatory changes (a) affecting demand for private mortgage

25

insurance, (b) limiting or restricting our use of (or requirements for) additional capital and the products we may offer, or (c) affecting the form in which we execute credit protection or affecting our existing financial guaranty portfolio;

• 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 business, or to estimate accurately the fair value amounts of derivative instruments 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;

• volatility in our earnings caused by changes in the fair value of our derivative instruments and our need to reevaluate the possibility of a 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; and

• legal and other limitations on amounts we may receive from our subsidiaries as dividends or through our tax- and expense-sharing arrangements with our subsidiaries.

For more information regarding these risks and uncertainties as well as certain additional risks that we face, you should review the “Risk Factors” detailed in Item 1A of Part II of our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2010 and subsequent reports and registration statements filed from time to time with the Securities and Exchange Commission.

Financial and Operational Notes

The net per share impact of $3.09, on an after tax basis, resulting from the change in fair value of derivatives of $524.6 million, was derived by applying a 35% statutory tax rate.

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