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): November 2, 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 November 2, 2010, Radian Group Inc. issued a news release announcing its financial results for the quarter ended September 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 November 2, 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: November 2, 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 November 2, 2010.

* Furnished herewith.

EX-99.1

Exhibit 99.1

Contact: Emily Riley – phone: 215.231.1035                         email: emily.riley@radian.biz Radian Reports Third Quarter 2010 Financial Results - Diluted net income per share of $0.84 includes impact of gains on derivatives and other financial instruments - - Mortgage insurance delinquencies declined for third consecutive quarter - - Stabilizing credit environment continued for financial guaranty business - PHILADELPHIA, November 2, 2010 — Radian Group Inc. (NYSE: RDN) today reported net income for the quarter ended September 30, 2010, of $112.2 million, or $0.84 per diluted share, which included a pre-tax gain from the change in fair value of derivatives of $229.8 million, or $1.12 per share on an after-tax basis. This compares to a net loss of $70.5 million, or $0.86 per diluted share, for the prior-year third quarter. Book value per share at September 30, 2010, was $14.53. “The signs of credit trend stabilization continued for our businesses, including the third straight quarter of declining mortgage insurance delinquencies, despite the challenge of an uncertain economy,” said Chief Executive Officer S.A. Ibrahim. “We are also pleased that Radian maintained its 21 percent market share of high-quality business as the private mortgage insurance industry continued to slowly recapture market share from the FHA.” THIRD QUARTER HIGHLIGHTS
•	The risk-to-capital ratio for Radian Guaranty Inc., the company’s primary mortgage insurance subsidiary, was 17.2:1 at September 30, 2010, compared to 17.9:1 at June 30, 2010, and 16.1:1 at September 30, 2009.
•	The number of primary and pool delinquent loans decreased by 5.8 percent and 2.0 percent, respectively, from the second quarter of 2010, which was the third consecutive quarterly decline in delinquent loans. In addition, the number of delinquencies declined slightly in October.

•    The mortgage insurance provision for losses was $347.8 million in the third quarter of 2010, and mortgage insurance loss reserves were approximately $3.5 billion as of September 30, 2010, compared to a mortgage insurance provision for losses of $427.6 million in the second quarter of 2010, and mortgage insurance loss reserves of approximately $3.7 billion as of June 30, 2010. As of September 30, 2010, total first-lien reserves were $22,870 per default for primary and $25,278 per default for pool. For the prior-year period, total first-lien reserves were $21, 205 per default for primary and $13,572 per default for pool. The reserve per default totals exclude defaults for which reserves have not been established due to the presence of a deductible.

•    Consistent with Radian’s strategy of actively managing its legacy portfolio and reducing non-core risk, the company terminated two structured mortgage insurance transactions in the quarter that eliminated 4,325 loans from its delinquent inventory and reduced primary risk in force by $188 million. The payment of $142.7 million to terminate the transactions was slightly less than the company’s loss reserve for the terminated loans.

•    Total mortgage insurance claims paid were $494.2 million for the third quarter. Excluding the $142.7 million impact from the termination of the two structured transactions, claims paid were $351.5 million, which consisted of $347.0 million of first-liens and $4.5 million of second-liens. The company expects mortgage insurance claims paid of approximately $420 million in the fourth quarter of 2010 and approximately $1.7 billion for the full-year 2011.

•    New mortgage insurance written (NIW) increased to $3.2 billion in the third quarter, compared to $2.7 billion in the second quarter, and continued to consist of loans with excellent risk characteristics. The company maintained a market share of 21 percent.

•    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.

2

•	As of September 30, 2010, Radian Asset had approximately $1.1 billion in statutory surplus with an additional $1.3 billion in claims-paying resources.
•	Signs of credit trend stabilization continued in the quarter for certain assets, including the company’s TruPs CDO portfolio.
•	Radian Asset again received regulatory approval to release contingency reserves in its financial guaranty portfolio, which also strengthened Radian Guaranty’s statutory capital position. The $42 million reserve release in the quarter was based on a reduction in the company’s net par outstanding, resulting from the maturing of exposures and other terminations of coverage.
•	Radian Asset is expected to pay an ordinary dividend of approximately $65 million to Radian Guaranty in June 2011.
•	In addition, the financial guaranty segment reported net income of $187.2 million, which included gains on derivatives and other financial instruments.
CONFERENCE CALL
Radian will discuss each of these items in its conference call today, Tuesday, November 2, 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 800-230-1074 inside the U.S., or 612-288-0340 for international callers, using passcode 174686 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 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 174686.
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.

3

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 September 30, 2010
Exhibit D:	Segment Information Quarter Ended September 30, 2009
Exhibit E:	Segment Information Nine Months Ended September 30, 2010
Exhibit F:	Segment Information Nine Months Ended September 30, 2009
Exhibit G:	Financial Guaranty Supplemental Information –
	For the Quarter and Nine Months Ended and as of September 30, 2010
Exhibit H:	Financial Guaranty Supplemental Information –
	For the Quarter and Nine Months Ended and as of September 30, 2010
Exhibit I:	Mortgage Insurance Supplemental Information –
	For the Quarter and Nine Months Ended and as of September 30, 2010
	New Insurance Written and Risk Written
Exhibit J:	Mortgage Insurance Supplemental Information –
	For the Quarter and Nine Months Ended and as of September 30, 2010
	Insurance in Force and Risk in Force
Exhibit K:	Mortgage Insurance Supplemental Information –
	For the Quarter and Nine Months Ended and as of September 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 Nine Months Ended and as of September 30, 2010
	Claims Paid, Reserves and Reserve per Default
Exhibit M:	Mortgage Insurance Supplemental Information –
	For the Quarter and Nine Months Ended and as of September 30, 2010
	Default Statistics
Exhibit N:	Mortgage Insurance Supplemental Information –
	For the Quarter and Nine Months Ended and as of September 30, 2010
	Net Premiums Written and Earned, Smart Home, Captives and Persistency

4

Exhibit O:	Mortgage Insurance Supplemental Information –
	For the Quarter Ended and as of September 30, 2010
	Reinsurance Progression Toward Attachment – Summary by Book Year
Exhibit P:	Mortgage Insurance Supplemental Information –
	For the Quarter Ended and as of September 30, 2010
	Modified Pool
Exhibit Q:	Mortgage Insurance Supplemental Information –
	For the Quarter and Nine Months Ended and as of September 30, 2010
	Alt-A Risk in Force
Exhibit R:	Impact of Mortgage Insurance Terminations –
	For the Quarter Ended and as of September 30, 2010

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Radian Group Inc. and Subsidiaries

Condensed Consolidated Statements of Income

Exhibit A

		Quarter Ended September 30						Nine Months Ended September 30
		2010			2009			2010			2009
(In thousands, except per-share data)
Revenues:
Net premiums written - insurance		$	174,807		$	(38,060	)(1)	$	490,209		$	280,597	(1)
Net premiums earned - insurance		$	203,937		$	209,487		$	605,651		$	614,331
Net investment income			46,554			54,032			140,531			163,566
Change in fair value of derivative instruments			229,783			(30,857	)		(372,777	)		(42,955	)
Net gains on other financial instruments			99,140			96,508			49,586			175,962
Net impairment losses recognized in earnings			(34	)		(3	)		(90	)		(873	)
Gain on sale of affiliate			—			—			34,815			—
Other income			1,951			2,467			5,654			10,487
Total revenues			581,331			331,634			463,370			920,518
Expenses:
Provision for losses			344,389			404,904			1,323,435			864,408
Provision for premium deficiency			8,628			(31,569	)		43			(77,569	)
Policy acquisition costs			11,054			14,193			42,719			54,114
Other operating expenses			43,052			54,034			143,273			161,271
Interest expense			9,502			11,296			28,551			35,890
Total expenses			416,625			452,858			1,538,021			1,038,114
Equity in net income of affiliates			—			7,946			14,668			23,608
Pretax (loss) income			164,706			(113,278	)		(1,059,983	)		(93,988	)
Income tax (benefit) provision			52,521			(42,828	)		(386,733	)		(37,976	)
Net (loss) income		$	112,185		$	(70,450	)	$	(673,250	)	$	(56,012	)
Diluted net (loss) income per share (2)		$	0.84		$	(0.86	)	$	(6.20	)	$	(0.69	)
(1)	Includes the reversal of $185.6 million of premiums written related to the commutation of $9.8 billion Financial Guaranty net par outstanding in July 2009.
(2)	Weighted average shares outstanding (In thousands)
Weighted average common shares outstanding			82,324			81,749			82,417			81,761
Increase in weighted average shares-common stock offering			50,000			—			26,191			—
Increase in weighted average shares-common stock equivalents-diluted basis			1,196			—			—			—
Weighted average shares outstanding			133,520			81,749			108,608			81,761

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

Page 6

Radian Group Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

Exhibit B

(In thousands, except per-share data)	September 30 2010			December 31 2009			September 30 2009
Assets:
Cash and investments	$	6,438,904		$	6,214,376		$	6,466,527
Investment in affiliates		133			121,480			112,034
Deferred policy acquisition costs		146,475			160,281			158,813
Deferred income taxes, net		728,230			440,948			351,575
Reinsurance recoverables		586,370			628,572			597,067
Derivative assets		26,995			68,534			153,136
Receivable for securities sold		134,538			5,141			89,935
VIE assets		115,704			—			—
Other assets		405,302			436,974			435,325
Total assets	$	8,582,651		$	8,076,306		$	8,364,412
Liabilities and stockholders’ equity:
Unearned premiums	$	707,265		$	823,621		$	872,375
Reserve for losses and loss adjustment expenses		3,592,973			3,578,982			3,512,999
Reserve for premium deficiency		25,399			25,357			9,291
Long-term debt		664,901			698,222			698,703
VIE debt		496,293			296,080			328,986
Derivative liabilities		530,688			238,697			394,386
Payable for securities purchased		282,477			28,921			29,031
Other liabilities		351,035			381,432			377,771
Total liabilities		6,651,031			6,071,312			6,223,542
Common stock		150			100			100
Additional paid-in capital		1,004,079			473,759			477,503
Retained earnings		928,025			1,602,143			1,694,219
Accumulated other comprehensive loss		(634	)		(71,008	)		(30,952	)
Total common stockholders’ equity		1,931,620			2,004,994			2,140,870
Total liabilities and stockholders’ equity	$	8,582,651		$	8,076,306		$	8,364,412
Book value per share	$	14.53		$	24.22		$	25.91

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Radian Group Inc. and Subsidiaries

Segment Information

Quarter Ended September 30, 2010

Exhibit C

(In thousands)	Mortgage Insurance			Financial Guaranty			Total
Revenues:
Net premiums written - insurance	$	174,419		$	388		$	174,807
Net premiums earned - insurance	$	181,731		$	22,206		$	203,937
Net investment income		26,658			19,896			46,554
Change in fair value of derivative instruments		6,772			223,011			229,783
Net gains on other financial instruments		55,735			43,405			99,140
Net impairment losses recognized in earnings		(34	)		—			(34	)
Gain on sale of affiliate		—			—			—
Other income		1,870			81			1,951
Total revenues		272,732			308,599			581,331
Expenses:
Provision for losses		347,800			(3,411	)		344,389
Provision for premium deficiency		8,628			—			8,628
Policy acquisition costs		6,444			4,610			11,054
Other operating expenses		31,690			11,362			43,052
Interest expense		3,251			6,251			9,502
Total expenses		397,813			18,812			416,625
Pretax income (loss)		(125,081	)		289,787			164,706
Income tax provision (benefit)		(50,090	)		102,611			52,521
Net income (loss)	$	(74,991	)	$	187,176		$	112,185
Cash and investments	$	3,722,189		$	2,716,715		$	6,438,904
Deferred policy acquisition costs		37,144			109,331			146,475
Total assets		5,110,581			3,472,070			8,582,651
Unearned premiums		199,764			507,501			707,265
Reserve for losses and loss adjustment expenses		3,504,181			88,792			3,592,973
VIE debt		156,811			339,482			496,293
Derivative liabilities		178			530,510			530,688

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Radian Group Inc. and Subsidiaries

Segment Information

Quarter Ended September 30, 2009

Exhibit D

(In thousands)	Mortgage Insurance			Financial Guaranty			Financial Services			Total
Revenues:
Net premiums written - insurance	$	149,000		$	(187,060	)	$	—		$	(38,060	)
Net premiums earned - insurance	$	186,859		$	22,628		$	—		$	209,487
Net investment income		33,822			20,209			1			54,032
Change in fair value of derivative instruments		6,678			(37,535	)		—			(30,857	)
Net gains on other financial instruments		38,583			57,925			—			96,508
Net impairment losses recognized in earnings		(3	)		—			—			(3	)
Other income		2,299			97			71			2,467
Total revenues		268,238			63,324			72			331,634
Expenses:
Provision for losses		376,488			28,416			—			404,904
Provision for premium deficiency		(31,569	)		—			—			(31,569	)
Policy acquisition costs		8,672			5,521			—			14,193
Other operating expenses		39,440			18,877			(4,283	)		54,034
Interest expense		3,739			7,557			—			11,296
Total expenses		396,770			60,371			(4,283	)		452,858
Equity in net income of affiliates		—			—			7,946			7,946
Pretax (loss) income		(128,532	)		2,953			12,301			(113,278	)
Income tax (benefit) provision		(45,912	)		(1,245	)		4,329			(42,828	)
Net (loss) income	$	(82,620	)	$	4,198		$	7,972		$	(70,450	)
Cash and investments	$	4,093,265		$	2,373,262		$	—		$	6,466,527
Deferred policy acquisition costs		30,528			128,285			—			158,813
Total assets		5,231,755			3,015,532			117,125			8,364,412
Unearned premiums		266,122			606,253			—			872,375
Reserve for losses and loss adjustment expenses		3,387,740			125,259			—			3,512,999
VIE debt		328,986			—			—			328,986
Derivative liabilities		17,018			377,368			—			394,386

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Radian Group Inc. and Subsidiaries

Segment Information

Nine Months Ended September 30, 2010

Exhibit E

(In thousands)	Mortgage Insurance			Financial Guaranty			Financial Services		Total
Revenues:
Net premiums written - insurance	$	499,360		$	(9,151	)	$	—	$	490,209
Net premiums earned - insurance	$	539,062		$	66,589		$	—	$	605,651
Net investment income		81,561			58,970			—		140,531
Change in fair value of derivative instruments		5,739			(378,516	)		—		(372,777	)
Net gains (losses) on other financial instruments		80,784			(31,198	)		—		49,586
Net impairment losses recognized in earnings		(90	)		—			—		(90	)
Gain on sale of affiliate		—			—			34,815		34,815
Other income		5,292			299			63		5,654
Total revenues		712,348			(283,856	)		34,878		463,370
Expenses:
Provision for losses		1,304,513			18,922			—		1,323,435
Provision for premium deficiency		43			—			—		43
Policy acquisition costs		29,061			13,658			—		42,719
Other operating expenses		103,562			39,511			200		143,273
Interest expense		6,920			21,631			—		28,551
Total expenses		1,444,099			93,722			200		1,538,021
Equity in net income of affiliates		—			78			14,590		14,668
Pretax (loss) income		(731,751	)		(377,500	)		49,268		(1,059,983	)
Income tax (benefit) provision		(267,700	)		(136,278	)		17,245		(386,733	)
Net (loss) income	$	(464,051	)	$	(241,222	)	$	32,023	$	(673,250	)

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Radian Group Inc. and Subsidiaries

Segment Information

Nine Months Ended September 30, 2009

Exhibit F

(In thousands)	Mortgage Insurance			Financial Guaranty			Financial Services			Total
Revenues:
Net premiums written - insurance	$	465,878		$	(185,281	)	$	—		$	280,597
Net premiums earned - insurance	$	534,789		$	79,542		$	—		$	614,331
Net investment income		97,465			66,098			3			163,566
Change in fair value of derivative instruments		(28,455	)		(14,500	)		—			(42,955	)
Net gains on other financial instruments		64,250			111,712			—			175,962
Net impairment losses recognized in earnings		(850	)		(23	)		—			(873	)
Other income		9,865			316			306			10,487
Total revenues		677,064			243,145			309			920,518
Expenses:
Provision for losses		840,974			23,434			—			864,408
Provision for premium deficiency		(77,569	)		—			—			(77,569	)
Policy acquisition costs		22,332			31,782			—			54,114
Other operating expenses		110,724			54,619			(4,072	)		161,271
Interest expense		12,052			23,838			—			35,890
Total expenses		908,513			133,673			(4,072	)		1,038,114
Equity in net income of affiliates		—			—			23,608			23,608
Pretax (loss) income		(231,449	)		109,472			27,989			(93,988	)
Income tax (benefit) provision		(73,048	)		25,004			10,068			(37,976	)
Net (loss) income	$	(158,401	)	$	84,468		$	17,921		$	(56,012	)

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Radian Group Inc.

Financial Guaranty Supplemental Information

For the Quarter and Nine Months Ended and as of September 30, 2010

Exhibit G

(In thousands)	Quarter Ended September 30					Nine Months Ended September 30
	2010			2009		2010			2009
Net Premiums Earned:
Public finance direct	$	12,603		$	9,363	$	40,836		$	35,750
Public finance reinsurance		7,826			11,071		20,935			38,297
Structured direct		895			1,321		2,055			5,156
Structured reinsurance		882			834		2,729			15,130
Trade credit reinsurance		—			39		51			174
Net Premiums Earned - insurance		22,206			22,628		66,606			94,507
Impact of commutations		—			—		(17	)		(14,965	)
Total Net Premiums Earned - insurance	$	22,206		$	22,628	$	66,589		$	79,542
Refundings included in earned premium	$	8,602		$	8,553	$	28,340		$	32,076
Net premiums earned - derivatives (1)	$	11,335		$	13,173	$	35,172		$	40,790
Claims paid:
Trade credit reinsurance	$	(6	)	$	41	$	1,078		$	912
Financial Guaranty		32,298			84,976		57,496			123,761
Total	$	32,292		$	85,017	$	58,574		$	124,673
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

(1) Included in change in fair value of derivative instruments.

Page 12

Radian Group Inc.

Financial Guaranty Supplemental Information

For the Quarter and Nine Months Ended and as of September 30, 2010

Exhibit H

($ in thousands, except ratios)	September 30 2010		December 31 2009		September 30 2009
Statutory Information:
Capital and surplus	$	1,056,140	$	1,062,637	$	939,880
Contingency reserve		374,944		366,108		494,058
Qualified statutory capital		1,431,084		1,428,745		1,433,938
Unearned premium reserve		534,356		595,819		616,788
Loss and loss expense reserve		76,936		128,754		57,259
Total statutory policyholders’ reserves		2,042,376		2,153,318		2,107,985
Present value of installment premiums		217,341		260,662		274,655
Soft capital facilities		150,000		150,000		150,000
Total statutory claims paying resources	$	2,409,717	$	2,563,980	$	2,532,640
Net debt service outstanding	$	100,702,721	$	110,207,923	$	112,780,855
Capital leverage ratio (1)		70		77		79
Claims paying leverage ratio (2)		42		43		45
Net par outstanding by product:
Public finance direct	$	16,312,594	$	17,536,616	$	18,081,562
Public finance reinsurance		22,030,001		24,180,588		24,664,615
Structured direct		39,680,382		43,528,366		44,258,529
Structured reinsurance		1,854,456		2,174,433		2,324,867
Total (3)	$	79,877,433	$	87,420,003	$	89,329,573
Reserve for losses and LAE-GAAP Basis:
Financial Guaranty	$	84,341	$	121,833	$	117,585
Trade Credit		4,451		6,611		7,674
Total	$	88,792	$	128,444	$	125,259

(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 $1.8 billion, $2.2 billion and $2.4 billion at September 30, 2010, December 31, 2009 and September 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 Nine Months Ended and as of September 30, 2010

Exhibit I

($ in millions)	Quarter Ended September 30												Nine Months Ended September 30
	2010			%			2009			%			2010			%			2009			%
Primary new insurance written
Flow	$	3,226			100.0	%	$	3,446			100.0	%	$	7,777			100.0	%	$	14,555			100.0	%
Total Primary	$	3,226			100.0	%	$	3,446			100.0	%	$	7,777			100.0	%	$	14,555			100.0	%
Total
Prime	$	3,225			100.0	%	$	3,441			99.9	%	$	7,774			100.0	%	$	14,530			99.8	%
Alt-A		—			—			1			—			—			—			11			0.1	%
A minus and below		1			—			4			0.1	%		3			—			14			0.1	%
Total Flow	$	3,226			100.0	%	$	3,446			100.0	%	$	7,777			100.0	%	$	14,555			100.0	%
Total primary new insurance written by FICO score
Total
>=740	$	2,621			81.2	%	$	2,570			74.6	%	$	6,182			79.5	%	$	10,464			71.9	%
680-739		605			18.8	%		831			24.1	%		1,592			20.5	%		3,822			26.3	%
620-679		—			0.0	%		45			1.3	%		3			0.0	%		268			1.8	%
<=619		—			—			—			—			—			—			1			—
Total Flow	$	3,226			100.0	%	$	3,446			100.0	%	$	7,777			100.0	%	$	14,555			100.0	%
Percentage of primary new insurance written
Refinances		44	%					30	%					34	%					43	%
95.01% LTV and above		0.2	%					0.3	%					0.3	%					0.1	%
ARMs
Less than 5 years		0.1	%					0.1	%					0.1	%					0.1	%
5 years and longer		5.3	%					2.3	%					5.8	%					0.9	%
Primary risk written
Flow	$	741			100.0	%	$	756			100.0	%	$	1,811			100.0	%	$	3,130			100.0	%
Total Primary	$	741			100.0	%	$	756			100.0	%	$	1,811			100.0	%	$	3,130			100.0	%

Page 14

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter and Nine Months Ended and as of September 30, 2010

Exhibit J

($ in millions)	September 30						September 30
	2010			%			2009			%
Primary insurance in force
Flow	$	116,971			88.9	%	$	122,912			79.9	%
Structured		14,587			11.1	%		30,876			20.1	%
Total Primary	$	131,558			100.0	%	$	153,788			100.0	%
Prime	$	107,469			81.7	%	$	113,518			73.8	%
Alt-A		15,204			11.6	%		30,012			19.5	%
A minus and below		8,885			6.7	%		10,258			6.7	%
Total Primary	$	131,558			100.0	%	$	153,788			100.0	%
Primary risk in force
Flow	$	28,790			90.1	%	$	30,388			88.0	%
Structured		3,179			9.9	%		4,131			12.0	%
Total Primary	$	31,969			100.0	%	$	34,519			100.0	%
Flow
Prime	$	24,413			84.8	%	$	25,253			83.1	%
Alt-A		2,743			9.5	%		3,257			10.7	%
A minus and below		1,634			5.7	%		1,878			6.2	%
Total Flow	$	28,790			100.0	%	$	30,388			100.0	%
Structured
Prime	$	1,865			58.7	%	$	2,152			52.1	%
Alt-A		727			22.9	%		1,305			31.6	%
A minus and below		587			18.4	%		674			16.3	%
Total Structured	$	3,179			100.0	%	$	4,131			100.0	%
Total
Prime	$	26,278			82.2	%	$	27,405			79.4	%
Alt-A		3,470			10.9	%		4,562			13.2	%
A minus and below		2,221			6.9	%		2,552			7.4	%
Total Primary	$	31,969			100.0	%	$	34,519			100.0	%
Total primary risk in force by FICO score
Flow
>=740	$	10,865			37.7	%	$	10,449			34.4	%
680-739		10,109			35.1	%		11,002			36.2	%
620-679		6,620			23.0	%		7,561			24.9	%
<=619		1,196			4.2	%		1,376			4.5	%
Total Flow	$	28,790			100.0	%	$	30,388			100.0	%
Structured
>=740	$	869			27.3	%	$	1,114			27.0	%
680-739		927			29.2	%		1,314			31.8	%
620-679		840			26.4	%		1,083			26.2	%
<=619		543			17.1	%		620			15.0	%
Total Structured	$	3,179			100.0	%	$	4,131			100.0	%
Total
>=740	$	11,734			36.7	%	$	11,563			33.5	%
680-739		11,036			34.6	%		12,316			35.7	%
620-679		7,460			23.3	%		8,644			25.0	%
<=619		1,739			5.4	%		1,996			5.8	%
Total Primary	$	31,969			100.0	%	$	34,519			100.0	%
Percentage of primary risk in force
Refinances		31	%					31	%
95.01% LTV and above		20	%					21	%
ARMs
Less than 5 years		6	%					8	%
5 years and longer		8	%					8	%
Pool risk in force
Prime	$	1,848			74.2	%	$	1,973			70.3	%
Alt-A		170			6.8	%		284			10.1	%
A minus and below		472			19.0	%		549			19.6	%
Total	$	2,490			100.0	%	$	2,806			100.0	%

Page 15

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter and Nine Months Ended and as of September 30, 2010

Exhibit K

($ in millions)	September 30					September 30
	2010		%			2009		%
Total primary risk in force by LTV
85.00% and below	$	2,831		8.9	%	$	3,556		10.3	%
85.01% to 90.00%		12,239		38.3	%		12,690		36.7	%
90.01% to 95.00%		10,619		33.2	%		11,142		32.3	%
95.01% and above		6,280		19.6	%		7,131		20.7	%
Total	$	31,969		100.0	%	$	34,519		100.0	%
Total primary risk in force by policy year
2005 and prior	$	8,539		26.6	%	$	10,140		29.4	%
2006		3,852		12.0	%		4,650		13.4	%
2007		8,395		26.3	%		9,823		28.4	%
2008		6,189		19.4	%		6,887		20.0	%
2009		3,249		10.2	%		3,019		8.8	%
2010		1,745		5.5	%		—		—
Total	$	31,969		100.0	%	$	34,519		100.0	%
Total pool risk in force by policy year
2005 and prior	$	2,053		82.4	%	$	2,280		81.2	%
2006		191		7.7	%		241		8.6	%
2007		198		8.0	%		227		8.1	%
2008		48		1.9	%		58		2.1	%
Total pool risk in force	$	2,490		100.0	%	$	2,806		100.0	%
Other risk in force
Second-lien
1st loss	$	133				$	184
2nd loss		71					100
NIMs		157					418
International
1st loss-Hong Kong primary mortgage insurance		153					316
Credit default swaps		121					3,132
Total other risk in force	$	635				$	4,150
Risk to capital ratio-Radian Guaranty only		17.2:1					16.1:1

Page 16

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter and Nine Months Ended and as of September 30, 2010

Exhibit L

($ in thousands)	Quarter Ended September 30						Nine Months Ended September 30
	2010			2009			2010			2009
Claims paid
Prime	$	175,809		$	96,788		$	465,816		$	231,374
Alt-A		80,371			60,759			226,432			147,892
A minus and below		44,456			40,814			129,485			109,904
Total primary claims paid		300,636			198,361			821,733			489,170
Pool		46,313			11,771			116,785			22,768
Second-lien and other		4,513			10,790			16,986			51,735
Subtotal		351,462			220,922			955,504			563,673
Impact of first-lien terminations		142,750			—			223,099			—
Impact of captive terminations		(22	)		(107,747	)		(649	)		(107,747	)
Impact of second-lien terminations		—			22,323			10,834			87,323
Total	$	494,190		$	135,498		$	1,188,788		$	543,249
Average claim paid (1)
Prime	$	41.5		$	43.8		$	43.6		$	43.1
Alt-A		54.3			56.2			56.7			54.6
A minus and below		35.0			38.9			37.0			38.8
Total primary claims paid		43.0			45.7			45.2			44.8
Pool		77.3			38.8			72.6			33.5
Second-lien and other		43.0			42.5			35.9			42.3
Total	$	45.7		$	45.1		$	47.1		$	44.0
Average primary claim paid before reinsurance recoveries	$	51.8		$	47.9		$	52.9		$	46.3
Average total claim paid before reinsurance recoveries	$	53.7		$	47.1		$	54.0		$	45.2
Loss ratio - GAAP Basis		191.4	%		201.2	%		242.0	%		156.7	%
Expense ratio - GAAP Basis		21.0	%		25.7	%		24.6	%		24.8	%
		212.4	%		226.9	%		266.6	%		181.5	%
Reserve for losses by category
Prime	$	1,394,997		$	1,125,684
Alt-A		615,279			922,420
A minus and below		391,945			454,844
Reinsurance recoverable		559,562	(2)		591,857
Total primary reserves		2,961,783			3,094,805
Pool insurance		523,833			211,399
Total 1st lien reserves		3,485,616			3,306,204
Second-lien		18,468			81,462
Other		97			74
Total reserves	$	3,504,181		$	3,387,740
1st lien reserve per default (3)
Primary reserve per primary default	$	22,870		$	21,205
Pool reserve per pool default		25,278			13,572
Total 1st lien reserve per default		23,202			20,469

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

(2) Reinsurance recoverable on ceded losses related to captives ($462 million) and Smart Home ($97 million).

(3) Excludes defaults 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 17

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter and Nine Months Ended and as of September 30, 2010

Exhibit M

	September 30 2010			December 31 2009			September 30 2009
Default Statistics
Primary insurance:
Flow
Prime
Number of insured loans		592,120			614,590			621,794
Number of loans in default		73,523			78,130			69,287
Percentage of loans in default		12.42	%		12.71	%		11.14	%
Alt-A
Number of insured loans		54,089			60,616			62,860
Number of loans in default		19,116			22,177			21,563
Percentage of loans in default		35.34	%		36.59	%		34.30	%
A minus and below
Number of insured loans		48,929			53,932			55,657
Number of loans in default		17,248			20,911			19,885
Percentage of loans in default		35.25	%		38.77	%		35.73	%
Total Flow
Number of insured loans		695,138			729,138			740,311
Number of loans in default		109,887			121,218			110,735
Percentage of loans in default		15.81	%		16.62	%		14.96	%
Structured
Prime
Number of insured loans		43,856			52,629			60,931
Number of loans in default		6,627			7,520			8,496
Percentage of loans in default		15.11	%		14.29	%		13.94	%
Alt-A
Number of insured loans		20,879			43,615			74,911
Number of loans in default		6,905			15,295			25,098
Percentage of loans in default		33.07	%		35.07	%		33.50	%
A minus and below
Number of insured loans		17,146			19,287			19,861
Number of loans in default		6,630			7,965			7,669
Percentage of loans in default		38.67	%		41.30	%		38.61	%
Total Structured
Number of insured loans		81,881			115,531			155,703
Number of loans in default		20,162			30,780			41,263
Percentage of loans in default		24.62	%		26.64	%		26.50	%
Total Primary Insurance
Prime
Number of insured loans		635,976			667,219			682,725
Number of loans in default		80,150			85,650			77,783
Percentage of loans in default		12.60	%		12.84	%		11.39	%
Alt-A
Number of insured loans		74,968			104,231			137,771
Number of loans in default		26,021			37,472			46,661
Percentage of loans in default		34.71	%		35.95	%		33.87	%
A minus and below
Number of insured loans		66,075			73,219			75,518
Number of loans in default		23,878			28,876			27,554
Percentage of loans in default		36.14	%		39.44	%		36.49	%
Total Primary Insurance
Number of insured loans		777,019			844,669			896,014
Number of loans in default (1)		130,049			151,998			151,998
Percentage of loans in default		16.74	%		17.99	%		16.96	%
Pool insurance:
Number of loans in default (2)		31,832			36,397			36,889

(1) Includes an estimated 542, 3,302 and 6,052 defaults at September 30, 2010, December 31, 2009 and September 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 11,109, 18,033 and 21,313 defaults at September 30, 2010, December 31, 2009 and September 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 Nine Months Ended and as of September 30, 2010

Exhibit N

	Quarter Ended September 30						Nine Months Ended September 30
	2010			2009			2010			2009
Net Premiums Written (In thousands)
Primary and Pool Insurance	$	173,805		$	169,180		$	498,468		$	483,872
Second-lien (1)		609			(1,493	)		888			(750	)
International (1)		5			(18,687	)		4			(17,244	)
Total Net Premiums Written - Insurance	$	174,419		$	149,000		$	499,360		$	465,878
Net Premiums Earned (In thousands)
Primary and Pool Insurance	$	178,554		$	182,582		$	529,288		$	517,770
Second-lien		610			1,264			1,855			4,649
International		2,567			3,013			7,919			12,370
Total Net Premiums Earned - Insurance	$	181,731		$	186,859		$	539,062		$	534,789
SMART HOME (In millions)
Ceded Premiums Written and Earned	$	2.5		$	2.4		$	7.4		$	8.0
Net premiums earned - derivatives (In thousands) (2)	$	137		$	234		$	416		$	1,787
1st Lien Captives
Premiums ceded to captives (In thousands)	$	24,392		$	30,942		$	74,550		$	102,976
% of total premiums		11.9	%		14.3	%		12.2	%		16.4	%
NIW subject to captives (In thousands)	$	—		$	144,302		$	129		$	1,615,653
% of primary NIW		—			4.2	%		<1	%		11.1	%
IIF included in captives (3)		28.9	%		29.9	%
RIF included in captives (3)		30.0	%		33.6	%
Persistency (twelve months ended September 30)		78.9	%(4)		87.0	%
	September 30 2010			September 30 2009
SMART HOME
% of Primary RIF included in Smart Home Transactions (3)		3.2	%		3.4	%

(1) Reflects the impact of second-lien and international terminations.

(2) Included in change in fair value of derivative instruments.

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

(4) 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 September 30, 2010

Exhibit O

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

($ in millions)						September 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	%	$	300	$	49	$	251	$	142			$	375	$	62	$	313	$	142
Pre-2006				50-75	%		249		153		96		87				325		185		140		86
Pre-2006				75-99	%		474		228		246		135				557		231		326		127
Pre-2006				Attached			1,563		436		1,127		445	$	164		1,673		452		1,221		381	$	139
Pre-2006 Total	$	21,398				$	2,586	$	866	$	1,720	$	809	$	164	$	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			1,540		187		1,353		446	$	169		1,695		242		1,453		355	$	163
2006 Total	$	2,760				$	1,554	$	188	$	1,366	$	447	$	169	$	1,725	$	244	$	1,481	$	357	$	163
2007				0-50	%	$	—	$	—	$	—	$	—			$	1	$	—	$	1	$	—
2007				50-75	%		—		—		—		—				12		1		11		—
2007				75-99	%		8		1		7		—				15		1		14		1
2007				Attached			3,195		370		2,825		599	$	233		3,446		391		3,055		437	$	191
2007 Total	$	4,305				$	3,203	$	371	$	2,832	$	599	$	233	$	3,474	$	393	$	3,081	$	438	$	191
2008				0-50	%	$	164	$	10	$	154	$	5			$	298	$	22	$	276	$	6
2008				50-75	%		24		1		23		1				149		8		141		6
2008				75-99	%		78		11		67		4				1,454		166		1,288		56
2008				Attached			1,629		186		1,443		127	$	28		159		14		145		19	$	11
2008 Total	$	2,381				$	1,895	$	208	$	1,687	$	137	$	28	$	2,060	$	210	$	1,850	$	87	$	11
2009				0-50	%	$	253	$	12	$	241	$	1			$	284	$	12	$	272	$	—
2009				50-75	%		—		—		—		—				—		—		—		—
2009				75-99	%		—		—		—		—				—		—		—		—
2009				Attached			—		—		—		—	$	—		—		—		—		—	$	—
2009 Total	$	288				$	253	$	12	$	241	$	1	$	—	$	284	$	12	$	272	$	—	$	—
Quota Share				0-50	%	$	—	$	—	$	—	$	—			$	—	$	—	$	—	$	—
Quota Share				50-75	%		—		—		—		—				—		—		—		—
Quota Share				75-99	%		—		—		—		—				—		—		—		—
Quota Share				Attached			94		30		64		25	$	10		102		33		69		37	$	17
Quota Share Total	$	313				$	94	$	30	$	64	$	25	$	10	$	102	$	33	$	69	$	37	$	17
Total Captive (Including Quota Share)	$	31,445				$	9,585	$	1,675	$	7,910	$	2,018	$	604	$	10,575	$	1,822	$	8,753	$	1,655	$	521
SmartHome				0-50	%	$	30	$	13	$	17	$	14			$	32	$	14	$	18	$	12
SmartHome				50-75	%		—		—		—		—				71		29		42		23
SmartHome				75-99	%		65		29		36		26				—		—		—		—
SmartHome				Attached			938		456		483		463	$	135		1,029		492		537		435	$	143
Total SmartHome	$	3,900				$	1,033	$	498	$	536	$	503	$	135	$	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 September 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 nine months 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 September 30, 2010

Modified Pool

Exhibit P

($ in millions)	September 30					September 30
	2010		%			2009		%
Primary risk in force by policy year
2005 and prior	$	190		63.8	%	$	280		33.9	%
2006		43		14.4	%		208		25.2	%
2007		58		19.5	%		330		39.9	%
2008		7		2.3	%		8		1.0	%
Total	$	298		100.0	%	$	826		100.0	%
Primary risk in force by product
Prime	$	75		25.2	%	$	150		18.1	%
Alt-A		205		68.8	%		653		79.1	%
A minus and below		18		6.0	%		23		2.8	%
Total	$	298		100.0	%	$	826		100.0	%
Primary insurance in force by product
Prime	$	696		22.1	%	$	2,884		16.7	%
Alt-A		2,310		73.3	%		14,082		81.7	%
A minus and below		147		4.6	%		268		1.6	%
Total	$	3,153		100.0	%	$	17,234		100.0	%
Default Statistics:
Primary Insurance:
Total modified pool (1)
Number of insured loans				15,988					80,832
Number of loans in default				4,081					23,876
Percentage of loans in default				25.53	%				29.54	%

(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 Ended and as of September 30, 2010

ALT-A

Exhibit Q

($ in millions)	September 30
	2010		%			2009		%
Primary risk in force by FICO score
>=740	$	849		24.5	%	$	1,121		24.6	%
680-739		1,662		47.9	%		2,202		48.2	%
660-679		502		14.5	%		666		14.6	%
620-659		431		12.4	%		543		11.9	%
<=619		26		0.7	%		30		0.7	%
Total	$	3,470		100.0	%	$	4,562		100.0	%
Primary risk in force by LTV
85.00% and below	$	644		18.6	%	$	1,195		26.2	%
85.01% to 90.00%		1,589		45.8	%		1,880		41.2	%
90.01% to 95.00%		989		28.5	%		1,175		25.8	%
95.01% and above		248		7.1	%		312		6.8	%
Total	$	3,470		100.0	%	$	4,562		100.0	%
Primary risk in force by policy year
2005 and prior	$	1,188		34.3	%	$	1,428		31.3	%
2006		719		20.7	%		1,010		22.1	%
2007		1,354		39.0	%		1,886		41.4	%
2008		208		6.0	%		237		5.2	%
2009		1		—			1		—
Total	$	3,470		100.0	%	$	4,562		100.0	%

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Radian Group Inc.

Impact of Mortgage Insurance Terminations

For the Quarter Ended and as of September 30, 2010

Exhibit R

($ in millions)	September 30
	As Reported September 30 2010			Impact of Mortgage Insurance Terminations			Prior to Mortgage Insurance Terminations
Primary insurance in force
Prime	$	107,469		$	—		$	107,469
Alt-A		15,204			3,642			18,846
A minus and below		8,885			—			8,885
Total Primary	$	131,558		$	3,642		$	135,200
Primary risk in force
Prime	$	26,278		$	—		$	26,278
Alt-A		3,470			188			3,658
A minus and below		2,221			—			2,221
Total Primary	$	31,969		$	188		$	32,157
Primary insurance in force-modified pool (1)
Prime	$	696		$	—		$	696
Alt-A		2,310			3,004			5,314
A minus and below		147			—			147
Total Primary	$	3,153		$	3,004		$	6,157
Primary risk in force-modified pool (1)
Prime	$	75		$	—		$	75
Alt-A		205			150			355
A minus and below		18			—			18
Total Primary	$	298		$	150		$	448
Default Statistics:
Total Primary Insurance
Prime
Number of insured loans		635,976			—			635,976
Number of loans in default		80,150			—			80,150
Percentage of loans in default		12.60	%		—			12.60	%
Alt-A
Number of insured loans		74,968			10,152			85,120
Number of loans in default		26,021			4,325			30,346
Percentage of loans in default		34.71	%		42.60	%		35.65	%
A minus and below
Number of insured loans		66,075			—			66,075
Number of loans in default		23,878			—			23,878
Percentage of loans in default		36.14	%		—			36.14	%
Total Primary Insurance
Number of insured loans		777,019			10,152			787,171
Number of loans in default		130,049			4,325			134,374
Percentage of loans in default		16.74	%		42.60	%		17.07	%
Total modified pool insurance (1)
Number of insured loans		15,988			8,756			24,744
Number of loans in default		4,081			3,528			7,609
Percentage of loans in default		25.53	%		40.29	%		30.75	%

(1) Included in primary insurance.

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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, or investor concern over the credit quality and specific risks faced by the particular businesses, municipalities or pools of assets covered by our insurance;

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•       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 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;

•       a decrease in the level of future insurance rescissions and claim denials from the current elevated levels, which rescissions and denials have materially mitigated our paid losses and resulted in a significant reduction in our loss reserves;

•       the negative impact our insurance rescissions and claim denials may have on our relationships with customers, including the potential loss of customers and heightened risk of 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;

•       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;

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•       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, the FHA and those private mortgage insurers 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 (together, the “GSEs”), 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 effect of the Dodd-Frank Wall Street Reform and Consumer Protection Act on the financial services industry in general, and on 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 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;

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•	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 Reports on Form 10-Q for the quarterly period ended March 31, 2010, and June 30, 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 $1.12, on an after tax basis, resulting from the change in fair value of derivatives of $229.8 million, was derived by applying a 35% statutory tax rate.
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