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02/23/2010

Radian Reports Fourth Quarter and Full Year 2009 Financial Results

- Improves holding company liquidity position and now projects excess through 2012-- Improves foundation to write new MI business with 15.4:1 risk-to-capital ratio -PHILADELPHIA, Feb 23, 2010 (BUSINESS WIRE) -- Radian Group Inc. (NYSE: RDN) today reported a net loss for the quarter ended December 31, 2009, of $91.9 million, or $1.12 per diluted share. This compares to a net loss of $250.4 million, or $3.11 per diluted share, for the prior-year quarter. The net loss for the full year 2009 was $147.9 million, or $1.80 per diluted share. This compares to a net loss of $410.6 million, or $5.12 per diluted share for the prior year. Book value per share at December 31, 2009, was $24.22.

"We achieved our most important goals in the quarter by improving Radian's liquidity position and effectively managing our capital," said Chief Executive Officer S. A. Ibrahim. "As a result of a series of strategic actions and better-than-expected operating results that reduced our estimated inter-company tax obligation for 2010, we now anticipate having excess liquidity through 2012. In addition, by actively managing our risk-to-capital ratio to 15.4 to 1, we have improved our foundation to continue writing new, high-quality mortgage insurance business."

Ibrahim added, "Our results illustrate the challenging macroeconomic environment affecting our company. However, we are encouraged by signs of improvement in our mortgage insurance business, including a lower rate of new delinquencies, both sequentially and year-over-year, in a quarter that is traditionally prone to seasonal increases."

FOURTH QUARTER HIGHLIGHTS

Radian Guaranty Inc.'s risk-to-capital ratio was 15.4:1 at December 31, 2009, compared to a ratio of 16.1:1 at September 30, 2009, and 16.4:1 at December 31, 2008. While Radian Guaranty remains below the 25:1 risk-to-capital limit imposed by some states, the company has prepared, subject to final regulatory and GSE approval, its 50-state licensed mortgage insurance subsidiary, Amerin Guaranty, to write new business in those states if needed. Radian expects to continue writing high-quality mortgage insurance business, uninterrupted, for the foreseeable future.
The mortgage insurance provision for losses of $459.9 million in the fourth quarter and $1.3 billion for the full year 2009 reflects higher delinquency counts and the continued aging of delinquencies, in addition to ongoing benefits associated with the company's various loss mitigation activities. As a result of the steady slowing of new delinquencies, Radian expects the delinquency level to stabilize throughout 2010, and decrease by the end of 2010.
Consistent with its strategy of actively managing the legacy portfolio and reducing non-core risk, Radian completed a series of transactions in the quarter that reduced the company's risk in force in pool and modified pool insurance as well as NIMs, second-lien, international mortgage risk and financial guaranty credit default swaps (CDS).
Total mortgage insurance claims paid were $426.8 million for the fourth quarter and $970.1 million for the full-year 2009. For the fourth quarter, excluding a $197.7 million impact from first-lien terminations and net of proceeds received from captive terminations of $25.2 million, claims paid were $254.3 million, which consisted of $239.5 million of first-liens and $14.8 million of second-liens. For the full-year 2009, excluding the impact of first- and second-lien terminations as well as proceeds received from captive terminations, claims paid were $818.0 million, compared to $916.1 million in 2008. For 2010, the company expects mortgage insurance claims paid to be approximately $1.5 billion.

As a result of reduced mortgage industry origination volume and mortgage insurance penetration, new mortgage insurance written (NIW) was $2.4 billion in the quarter and $17.0 billion for the year. NIW in the quarter continued to consist of loans with excellent risk characteristics, and the company maintained market share for the quarter and also for the year of more than 20 percent.
Radian Asset Assurance Inc., the company's principal financial guaranty subsidiary, continues to serve as an important source of capital support for Radian Guaranty, the company's mortgage insurance subsidiary, and is expected to continue to provide Radian Guaranty with cash infusions over time.
- As of December 31, 2009, Radian Asset had approximately $1.1 billion in statutory surplus with an additional $1.5 billion in claims-paying resources.
- In October, Radian Asset transferred $143 million of contingency reserves to surplus, which strengthened Radian Guaranty's statutory capital and positively impacted the company's risk-to-capital ratio.

CONFERENCE CALL

Radian will discuss each of these items in its conference call today, Tuesday, February 23, 2010, at 10:00 a.m. Eastern time. The conference call will be broadcast live over the Internet at http://www.ir.radian.biz/phoenix.zhtml?c=112301&p=irol-audioarchives or at www.radian.com. The call may also be accessed by dialing 800-230-1059 inside the U.S., or 612-288-0340 for international callers, using passcode 145249 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 two and a half hours after the call ends for one week, using the following dial-in numbers and passcode: 800-475-6701 inside the U.S., or 320-365-3844 for international callers, passcode 145249.

In addition to the information provided in the company's earnings news release, other statistical and financial information, which is expected to be referred to during the conference call, will be available on Radian's Web site under Investors >Quarterly Results, or by clicking on http://www.ir.radian.biz/phoenix.zhtml?c=112301&p=irol-earnings.

About Radian

Radian Group Inc. (NYSE: RDN), headquartered in Philadelphia, provides private mortgage insurance and related risk mitigation products and services to mortgage lenders nationwide through its principal operating subsidiary, Radian Guaranty Inc. These services help promote and preserve homeownership opportunities for homebuyers, while protecting lenders from default-related losses on residential first mortgages and facilitating the sale of low-downpayment mortgages in the secondary market. Additional information may be found at www.radian.com.

Financial Results and Supplemental Information Contents (Unaudited)

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


Exhibit A:		Condensed Consolidated Statements of Income
Exhibit B:		Condensed Consolidated Balance Sheets
Exhibit C:		Segment Information Quarter Ended December 31, 2009
Exhibit D:		Segment Information Quarter Ended December 31, 2008
Exhibit E:		Segment Information Year Ended December 31, 2009
Exhibit F:		Segment Information Year Ended December 31, 2008
Exhibit G:		Financial Guaranty Supplemental Information -
		For the Quarter and Year Ended and as of December 31, 2009
Exhibit H:		Financial Guaranty Supplemental Information -
		For the Quarter and Year Ended and as of December 31, 2009
Exhibit I:		Mortgage Insurance Supplemental Information -
		For the Quarter and Year Ended and as of December 31, 2009
		New Insurance Written and Risk Written
Exhibit J:		Mortgage Insurance Supplemental Information -
		For the Quarter and Year Ended and as of December 31, 2009
		Insurance in Force and Risk in Force
Exhibit K:		Mortgage Insurance Supplemental Information -
		For the Quarter and Year Ended and as of December 31, 2009
		Risk in Force by LTV and Policy Year and other Risk in Force
Exhibit L:		Mortgage Insurance Supplemental Information -
		For the Quarter and Year Ended and as of December 31, 2009
		Claims and Reserves
Exhibit M:		Mortgage Insurance Supplemental Information -
		For the Quarter and Year Ended and as of December 31, 2009
		Default Statistics
Exhibit N:		Mortgage Insurance Supplemental Information -
		For the Quarter and Year Ended and as of December 31, 2009
		Net Premiums Written and Earned, Smart Home, Captives and Persistency
Exhibit O:		Mortgage Insurance Supplemental Information -
		For the Quarter Ended and as of December 31, 2009
		Reinsurance Progression Toward Attachment - Summary by Book Year
Exhibit P:		Mortgage Insurance Supplemental Information -
		For the Quarter Ended and as of December 31, 2009
		Modified Pool
Exhibit Q:		Mortgage Insurance Supplemental Information -
		For the Quarter and Year Ended and as of December 31, 2009
		Alt-A Risk in Force
Exhibit R:		Financial Services Supplemental Information -
		For the Quarter and Year Ended and as of December 31, 2009
Exhibit S:		Impact of Mortgage Insurance Terminations -
		For the Quarter and Year Ended and as of December 31, 2009


Radian Group Inc. and Subsidiaries
Condensed Consolidated Statements of Income
Exhibit A
	Quarter Ended							Year Ended
	December 31							December 31
		2009			2008				2009				2008
(In thousands, except per-share data)

Revenues:
Net premiums written - insurance	$	163,251		$	147,467			$	443,848		(1)	$	816,869

Net premiums earned - insurance	$	211,570		$	231,044			$	825,901			$	971,820
Net investment income		50,624			66,711				214,190				263,033
Change in fair value of derivative instruments		142,913			(217,879	)			99,958				710,913
Net gains (losses) on other financial instruments		(7,390	)		(19,658	)			168,572				(94,300	)
Total other-than-temporary impairment losses		(8,396	)		(2,936	)			(9,269	)			(55,166	)
Losses recognized in other comprehensive loss		-			-				-				-
Net impairment losses recognized in earnings		(8,396	)		(2,936	)			(9,269	)			(55,166	)
Other income		3,539			2,145				14,026				11,736
Total revenues		392,860			59,427				1,313,378				1,808,036


Expenses:
Provision for losses		473,166			618,835				1,337,574				2,205,340
Provision for premium deficiency		16,065			(244,512	)	(2)		(61,504	)			(108,785	)	(2)
Policy acquisition costs		8,920			15,768				63,034				136,396		(3)
Other operating expenses		42,499			55,726				203,770				255,497
Interest expense		10,120			13,337				46,010				53,514
Total expenses		550,770			459,154				1,588,884				2,541,962

Equity in net income of affiliates		9,618			15,769				33,226				59,797

Pretax loss		(148,292	)		(383,958	)			(242,280	)			(674,129	)
Income tax benefit		(56,425	)		(133,566	)			(94,401	)			(263,550	)

Net loss	$	(91,867	)	$	(250,392	)		$	(147,879	)		$	(410,579	)

Diluted net loss per share (4)	$	(1.12	)	$	(3.11	)		$	(1.80	)		$	(5.12	)

(1) Includes the reversal of $185.6 million of premiums written related to the Ambac Commutation in our Financial Guaranty segment.
(2) Includes $(150.1) million for first-lien mortgages and $(94.4) million for second-lien mortgages in the fourth quarter of 2008 and $(108.8) million for second-lien mortgages for the year ended December 31, 2008. All 2009 amounts relate to second-lien mortgages.
(3) Includes the acceleration of $50.8 million of deferred policy acquisition cost amortization for the year ended December 31, 2008, as a result of the establishment of a first-lien premium deficiency reserve in the second quarter of 2008.

(4) Weighted average shares outstanding (In thousands)

Average common shares outstanding		81,926			80,642				81,937				80,258
Increase in shares-potential exercise of options-diluted basis		-			-				-				-
Weighted average shares outstanding		81,926			80,642				81,937				80,258

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


Radian Group Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
Exhibit B

	December 31			December 31
(In thousands, except per-share data)		2009			2008

Assets:
Cash and investments	$	6,214,376		$	6,060,601
Investments in affiliates		121,480			99,712
Deferred policy acquisition costs		160,281			160,526
Prepaid federal income taxes		-			248,828
Derivative assets		68,534			179,515
Deferred income taxes, net		440,948			446,102
Reinsurance recoverables		628,572			492,359
Other assets		442,115			428,476

Total assets	$	8,076,306		$	8,116,119


Liabilities and stockholders' equity:
Unearned premiums	$	823,621		$	916,724
Reserve for losses and loss adjustment expenses		3,578,982			3,224,542
Reserve for premium deficiency		25,357			86,861
Long-term debt and other borrowings		698,222			857,802
Variable interest entity debt		296,080			160,035
Derivative liabilities		238,697			519,260
Other liabilities		410,353			320,185

Total liabilities		6,071,312			6,085,409

Common stock		100			98
Additional paid-in capital		473,759			462,647
Retained earnings		1,602,143			1,766,946
Accumulated other comprehensive income		(71,008	)		(198,981	)

Total common stockholders' equity		2,004,994			2,030,710

Total liabilities and stockholders' equity	$	8,076,306		$	8,116,119

Book value per share	$	24.22		$	25.06

Radian Group Inc. and Subsidiaries

Segment Information

Quarter Ended December 31, 2009

Exhibit C

Mortgage

Financial

(In thousands)

Insurance

Guaranty

Services

Total

Revenues:

Net premiums written - insurance

164,198

(947

)

163,251

Net premiums earned - insurance

189,634

21,936

211,570

Net investment income

32,406

18,217

50,624

Change in fair value of derivative instruments

14,027

128,886

142,913

Net gains (losses) on other financial instruments

1,365

(8,755

)

(7,390

)

Net impairment losses recognized in earnings

(8,396

)

(8,396

)

Other income

2,393

1,078

3,539

Total revenues

231,429

161,362

392,860

Expenses:

Provision for losses

459,853

13,313

473,166

Provision for premium deficiency

16,065

Policy acquisition costs

5,231

3,689

8,920

Other operating expenses

29,763

12,604

132

42,499

Interest expense

3,320

6,800

10,120

Total expenses

514,232

36,406

132

550,770

Equity in net income of affiliates

9,618

Pretax (loss) income

(282,803

)

124,956

9,555

(148,292

)

Income tax (benefit) provision

(103,408

)

43,637

3,346

(56,425

)

Net (loss) income

(179,395

)

81,319

6,209

(91,867

)

Cash and investments

3,775,682

2,438,694

6,214,376

Deferred policy acquisition costs

35,854

124,427

160,281

Total assets

4,968,963

2,985,919

121,424

8,076,306

Unearned premiums

240,346

583,275

823,621

Reserve for losses and loss adjustment expenses

3,450,538

128,444

3,578,982

Derivative liabilities

238,697


Radian Group Inc. and Subsidiaries
Segment Information
Quarter Ended December 31, 2008
Exhibit D

		Mortgage			Financial			Financial
	(In thousands)	Insurance			Guaranty			Services		Total
	Revenues:
	Net premiums written - insurance	$	188,368		$	(40,901	)	$	-	$	147,467

	Net premiums earned - insurance	$	203,213		$	27,831		$	-	$	231,044
	Net investment income		38,804			27,907			-		66,711
	Change in fair value of derivative instruments		(3,391	)		(214,488	)		-		(217,879	)
	Net (losses) gains on other financial instruments		(14,923	)		(4,765	)		30		(19,658	)
	Net impairment losses recognized in earnings		(1,999	)		(937	)		-		(2,936	)
	Other income		2,082			63			-		2,145
	Total revenues		223,786			(164,389	)		30		59,427

	Expenses:
	Provision for losses		551,284			67,551			-		618,835
	Provision for premium deficiency		(244,512	)		-			-		(244,512	)
	Policy acquisition costs		6,630			9,138			-		15,768
	Other operating expenses		28,731			26,867			128		55,726
	Interest expense		6,482			6,855			-		13,337
	Total expenses		348,615			110,411			128		459,154

	Equity in net income of affiliates		-			16			15,753		15,769

	Pretax (loss) income		(124,829	)		(274,784	)		15,655		(383,958	)

	Income tax (benefit) provision		(47,784	)		(91,572	)		5,790		(133,566	)

	Net (loss) income	$	(77,045	)	$	(183,212	)	$	9,865	$	(250,392	)

	Cash and investments	$	3,508,018		$	2,552,583		$	-	$	6,060,601
	Deferred policy acquisition costs		21,286			139,240			-		160,526
	Total assets		4,800,708			3,151,695			163,716		8,116,119
	Unearned premiums		336,126			580,598			-		916,724
	Reserve for losses and loss adjustment expenses		2,989,994			234,548			-		3,224,542
	Derivative liabilities		161,839			357,421			-		519,260

Radian Group Inc. and Subsidiaries

Segment Information

Year Ended December 31, 2009

Exhibit E

Mortgage

Financial

(In thousands)

Insurance

Guaranty

Services

Total

Revenues:

Net premiums written - insurance

630,076

(186,228

)

443,848

Net premiums earned - insurance

724,423

101,478

825,901

Net investment income

129,871

84,315

214,190

Change in fair value of derivative instruments

(14,428

)

114,386

99,958

Net gains on other financial instruments

65,615

102,957

168,572

Net impairment losses recognized in earnings

(9,246

)

(23

)

(9,269

)

Other income

12,258

1,394

374

14,026

Total revenues

908,493

404,507

378

1,313,378

Expenses:

Provision for losses

1,300,827

36,747

1,337,574

Provision for premium deficiency

(61,504

)

(61,504

)

Policy acquisition costs

27,563

35,471

63,034

Other operating expenses

140,487

67,223

(3,940

)

203,770

Interest expense

15,372

30,638

46,010

Total expenses

1,422,745

170,079

(3,940

)

1,588,884

Equity in net income of affiliates

33,226

Pretax (loss) income

(514,252

)

234,428

37,544

(242,280

)

Income tax (benefit) provision

(176,456

)

68,641

13,414

(94,401

)

Net (loss) income

(337,796

)

165,787

24,130

(147,879

)


Radian Group Inc. and Subsidiaries
Segment Information
Year Ended December 31, 2008
Exhibit F

		Mortgage			Financial			Financial
	(In thousands)	Insurance			Guaranty			Services		Total
	Revenues:
	Net premiums written - insurance	$	787,232		$	29,637		$	-	$	816,869

	Net premiums earned - insurance	$	808,781		$	163,039		$	-	$	971,820
	Net investment income		154,607			108,412			14		263,033
	Change in fair value of derivative instruments		102,157			608,756			-		710,913
	Net (losses) gains on other financial instruments		(62,906	)		(31,544	)		150		(94,300	)
	Net impairment losses recognized in earnings		(20,230	)		(34,936	)		-		(55,166	)
	Other income		11,133			300			303		11,736
	Total revenues		993,542			814,027			467		1,808,036

	Expenses:
	Provision for losses		2,090,845			114,495			-		2,205,340
	Provision for premium deficiency		(108,785	)		-			-		(108,785	)
	Policy acquisition costs		89,103			47,293			-		136,396
	Other operating expenses		155,375			99,509			613		255,497
	Interest expense		27,622			25,643			249		53,514
	Total expenses		2,254,160			286,940			862		2,541,962

	Equity in net income of affiliates		-			16			59,781		59,797

	Pretax (loss) income		(1,260,618	)		527,103			59,386		(674,129	)

	Income tax (benefit) provision		(475,970	)		187,965			24,455		(263,550	)

	Net (loss) income	$	(784,648	)	$	339,138		$	34,931	$	(410,579	)


Radian Group Inc.
Financial Guaranty Supplemental Information
For the Quarter and Year Ended and as of December 31, 2009
Exhibit G
	Quarter Ended						Year Ended
(In thousands)	December 31						December 31
		2009			2008			2009				2008

Net Premiums Earned:
Public finance direct	$	14,215		$	12,997		$	49,965			$	56,191
Public finance reinsurance		5,935			24,082			44,232				89,227
Structured direct		1,208			3,207			6,364				14,418
Structured reinsurance		584			4,527			15,714				19,690
Trade credit reinsurance		17			162			191				657
Net Premiums Earned - insurance		21,959			44,975			116,466				180,183
Impact of commutations (1)		(23	)		(17,144	)		(14,988	)			(17,144	)
Total Net Premiums Earned - insurance	$	21,936		$	27,831		$	101,478			$	163,039


Refundings included in earned premium	$	8,913		$	19,443		$	40,989			$	75,090

Claims paid:
Trade credit reinsurance	$	(136	)	$	2,008		$	776			$	3,440
Financial Guaranty		10,258			14,932			134,019		(2)		128,972		(3)
Total	$	10,122		$	16,940		$	134,795			$	132,412


Balance Sheet impact of initial adoption of the accounting standard for financial guarantee insurance contracts on January 1, 2009:
($ in millions)
Increase in unearned premiums	$	(292.8	)
Increase in premiums receivable		161.4
Increase in deferred policy acquisition costs		66.0
Decrease in reserve for losses and LAE		8.2
Decrease in deferred taxes, net		20.2
Increase in premium taxes payable		(0.6	)
Decrease in equity	$	(37.6	)

Balance Sheet impact of Ambac Commutation in Q3 2009:
($ in millions)
Decrease in:
Cash and investments	$	100.0
Premiums receivable		93.2
Unearned premiums		185.6
Reserve for losses and LAE		53.9
Deferred policy acquisition costs		46.3


(1)		Amounts recorded related to the recaptures of previously ceded business by primary insurer customers of the financial guaranty insurance business.
(2)		Includes $53.9 million related to Ambac Commutation.
(3)		Includes a $100 million payment related to one CDO of ABS transaction that was fully reserved for in 2007.


Radian Group Inc.
Financial Guaranty Supplemental Information
For the Quarter and Year Ended and as of December 31, 2009
Exhibit H

($ in thousands, except ratios)	December 31			December 31
		2009			2008
Statutory Information:

Capital and surplus	$	1,062,637		$	968,197
Contingency reserve		366,108			515,023
Qualified statutory capital		1,428,745			1,483,220

Unearned premium reserve		595,819			729,274
Loss and loss expense reserve		128,754			82,340
Total statutory policyholders' reserves		2,153,318			2,294,834

Present value of installment premiums		260,662			380,666
Soft capital facilities		150,000			150,000
Total statutory claims paying resources	$	2,563,980		$	2,825,500

Net debt service outstanding	$	110,207,923		$	138,430,925

Capital leverage ratio (1)		77			93
Claims paying leverage ratio (2)		43			49

Net par outstanding by product:
Public finance direct	$	17,536,616		$	17,836,221
Public finance reinsurance		24,180,588			31,578,163
Structured direct		43,528,366			46,001,355
Structured reinsurance		2,174,433			5,310,004
Total	$	87,420,003	(3)	$	100,725,743

Reserve for losses and LAE-GAAP Basis:
Financial Guaranty	$	121,833		$	219,671
Trade Credit		6,611			14,877
Total	$	128,444		$	234,548



(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)		Reduction due to $9.8 billion of par that was commuted in connection with the Ambac Commutation in July 2009. Also included in public finance net par outstanding is $2.2 billion for legally defeased bond issues where our financial guaranty policy has not been extinguished but cash or securities have been deposited in an escrow account for the benefit of bondholders. 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.


Radian Group Inc.
Mortgage Insurance Supplemental Information
For the Quarter and Year Ended and as of December 31, 2009
Exhibit I
	Quarter Ended										Year Ended
	December 31										December 31
($ in millions)	2009					2008					2009					2008
	$			%		$			%		$			%		$			%

Primary new insurance written
Flow	$	2,414		100.0	%	$	5,025		99.7	%	$	16,969		100.0	%	$	31,265		96.2	%
Structured		-		-			14		0.3	%		-		-			1,248		3.8	%
Total Primary	$	2,414		100.0	%	$	5,039		100.0	%	$	16,969		100.0	%	$	32,513		100.0	%

Flow
Prime	$	2,412		99.9	%	$	5,003		99.6	%	$	16,942		99.8	%	$	29,359		93.9	%
Alt-A		-		-			16		0.3	%		11		0.1	%		1,170		3.7	%
A minus and below		2		0.1	%		6		0.1	%		16		0.1	%		736		2.4	%
Total Flow	$	2,414		100.0	%	$	5,025		100.0	%	$	16,969		100.0	%	$	31,265		100.0	%

Structured
Prime	$	-		-		$	13		92.9	%	$	-		-		$	1,245		99.8	%
Alt-A		-		-			1		7.1	%		-		-			3		0.2	%
Total Structured	$	-		-		$	14		100.0	%	$	-		-		$	1,248		100.0	%

Total
Prime	$	2,412		99.9	%	$	5,016		99.6	%	$	16,942		99.8	%	$	30,604		94.1	%
Alt-A		-		-			17		0.3	%		11		0.1	%		1,173		3.6	%
A minus and below		2		0.1	%		6		0.1	%		16		0.1	%		736		2.3	%
Total Primary	$	2,414		100.0	%	$	5,039		100.0	%	$	16,969		100.0	%	$	32,513		100.0	%

Total primary new insurance written by FICO score
Flow
>=740	$	1,829		75.8	%	$	2,880		57.3	%	$	12,293		72.5	%	$	14,792		47.3	%
680-739		581		24.1	%		1,725		34.3	%		4,403		25.9	%		11,454		36.6	%
620-679		4		0.1	%		419		8.4	%		272		1.6	%		4,642		14.9	%
<=619		-		-			1		-	%		1		-			377		1.2	%
Total Flow	$	2,414		100.0	%	$	5,025		100.0	%	$	16,969		100.0	%	$	31,265		100.0	%

Structured
>=740	$	-		-		$	10		71.4	%	$	-		-		$	790		63.3	%
680-739		-		-			4		28.6	%		-		-			441		35.3	%
620-679		-		-			-		-	%		-		-			17		1.4	%
Total Structured	$	-		-		$	14		100.0	%	$	-		-		$	1,248		100.0	%

Total
>=740	$	1,829		75.8	%	$	2,890		57.4	%	$	12,293		72.5	%	$	15,582		47.9	%
680-739		581		24.1	%		1,729		34.3	%		4,403		25.9	%		11,895		36.6	%
620-679		4		0.1	%		419		8.3	%		272		1.6	%		4,659		14.3	%
<=619		-		-			1		-	%		1		-			377		1.2	%
Total Primary	$	2,414		100.0	%	$	5,039		100.0	%	$	16,969		100.0	%	$	32,513		100.0	%

Percentage of primary new insurance written
Refinances		26	%				17	%				41	%				30	%
95.01% LTV and above		0.2	%				1	%				0.1	%				11	%
ARMs
Less than 5 years		0.1	%				1	%				0.1	%				1	%
5 years and longer		5.8	%				3	%				1.6	%				8	%


Primary risk written
Flow	$	533		100.0	%	$	1,177		99.8	%	$	3,663		100.0	%	$	7,494		95.9	%
Structured		-		-			2		0.2	%		-		-			318		4.1	%
Total Primary	$	533		100.0	%	$	1,179		100.0	%	$	3,663		100.0	%	$	7,812		100.0	%


Radian Group Inc.
Mortgage Insurance Supplemental Information
For the Quarter and Year Ended and as of December 31, 2009
Exhibit J
	December 31					December 31
($ in millions)	2009					2008
	$			%		$			%
Primary insurance in force
Flow	$	121,596		84.3	%	$	121,439		78.2	%
Structured		22,672		15.7	%		33,800		21.8	%
Total Primary	$	144,268		100.0	%	$	155,239		100.0	%

Prime	$	111,398		77.2	%	$	111,558		71.9	%
Alt-A		22,941		15.9	%		32,623		21.0	%
A minus and below		9,929		6.9	%		11,058		7.1	%
Total Primary	$	144,268		100.0	%	$	155,239		100.0	%

Primary risk in force
Flow	$	29,971		88.8	%	$	30,388		86.9	%
Structured		3,794		11.2	%		4,563		13.1	%
Total Primary	$	33,765		100.0	%	$	34,951		100.0	%

Flow
Prime	$	25,036		83.5	%	$	24,815		81.7	%
Alt-A		3,121		10.4	%		3,584		11.8	%
A minus and below		1,814		6.1	%		1,989		6.5	%
Total Flow	$	29,971		100.0	%	$	30,388		100.0	%

Structured
Prime	$	2,059		54.3	%	$	2,390		52.4	%
Alt-A		1,083		28.5	%		1,412		30.9	%
A minus and below		652		17.2	%		761		16.7	%
Total Structured	$	3,794		100.0	%	$	4,563		100.0	%

Total
Prime	$	27,095		80.2	%	$	27,205		77.8	%
Alt-A		4,204		12.5	%		4,996		14.3	%
A minus and below		2,466		7.3	%		2,750		7.9	%
Total Primary	$	33,765		100.0	%	$	34,951		100.0	%

Total primary risk in force by FICO score
Flow
>=740	$	10,526		35.1	%	$	9,436		31.1	%
680-739		10,790		36.0	%		11,253		37.0	%
620-679		7,329		24.5	%		8,195		27.0	%
<=619		1,326		4.4	%		1,504		4.9	%
Total Flow	$	29,971		100.0	%	$	30,388		100.0	%

Structured
>=740	$	1,036		27.3	%	$	1,233		27.0	%
680-739		1,168		30.8	%		1,422		31.2	%
620-679		990		26.1	%		1,205		26.4	%
<=619		600		15.8	%		703		15.4	%
Total Structured	$	3,794		100.0	%	$	4,563		100.0	%

Total
>=740	$	11,562		34.3	%	$	10,669		30.5	%
680-739		11,958		35.4	%		12,675		36.3	%
620-679		8,319		24.6	%		9,400		26.9	%
<=619		1,926		5.7	%		2,207		6.3	%
Total Primary	$	33,765		100.0	%	$	34,951		100.0	%

Percentage of primary risk in force
Refinances		31	%				30	%
95.01% LTV and above		21	%				22	%
ARMs
Less than 5 years		8	%				9	%
5 years and longer		8	%				9	%


Pool risk in force
Prime	$	1,918		71.1	%	$	2,090		70.8	%
Alt-A		246		9.1	%		291		9.9	%
A minus and below		534		19.8	%		569		19.3	%
Total	$	2,698		100.0	%	$	2,950		100.0	%


Radian Group Inc.
Mortgage Insurance Supplemental Information
For the Quarter and Year Ended and as of December 31, 2009
Exhibit K
	December 31				December 31
($ in millions)	2009				2008
	$		%		$		%
Total primary risk in force by LTV
85.00% and below	$	3,263	9.6	%	$	3,598	10.3	%
85.01% to 90.00%		12,589	37.3	%		12,331	35.3	%
90.01% to 95.00%		10,996	32.6	%		11,217	32.1	%
95.01% and above		6,917	20.5	%		7,805	22.3	%
Total	$	33,765	100.0	%	$	34,951	100.0	%

Total primary risk in force by policy year
2005 and prior	$	9,709	28.7	%	$	11,526	33.0	%
2006		4,390	13.0	%		5,196	14.9	%
2007		9,443	28.0	%		10,711	30.6	%
2008		6,725	19.9	%		7,518	21.5	%
2009		3,498	10.4	%		-	-
Total	$	33,765	100.0	%	$	34,951	100.0	%

Total pool risk in force by policy year
2005 and prior	$	2,183	80.9	%	$	2,402	81.4	%
2006		236	8.7	%		252	8.6	%
2007		223	8.3	%		237	8.0	%
2008		56	2.1	%		59	2.0	%
Total pool risk in force	$	2,698	100.0	%	$	2,950	100.0	%

Other risk in force
Second-lien
1st loss	$	147			$	267
2nd loss		116				355
NIMs		353				438
International
1st loss-Hong Kong primary mortgage insurance		257				413
Reinsurance		-				153
Credit default swaps		127				3,361
Other
Domestic credit default swaps		-				132
Total other risk in force	$	1,000			$	5,119


Risk to capital ratio-Radian Guaranty only (1)		15.4:1				16.4:1

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


Radian Group Inc.
Mortgage Insurance Supplemental Information
For the Quarter and Year Ended and as of December 31, 2009
Exhibit L
	Quarter Ended							Year Ended
($ in thousands)	December 31							December 31
	2009				2008			2009			2008
Direct claims paid
Prime	$	122,004			$	87,990		$	368,820		$	310,965
Alt-A		70,295				58,262			219,544			210,700
A minus and below		47,196				48,701			163,069			211,612
Second-lien and other		14,849				44,778			66,584			182,872
Subtotal		254,344				239,731			818,017			916,149
Impact of first-lien terminations		197,692				-			197,692			-
Impact of captive terminations		(25,194	)			-			(132,941	)		-
Impact of second-lien terminations		-				-			87,323			-
Total	$	426,842			$	239,731		$	970,091		$	916,149

Average claim paid (1)
Prime	$	44.0			$	43.4		$	42.8		$	40.9
Alt-A		56.9				57.3			54.9			54.8
A minus and below		39.8				40.4			39.1			39.0
Second-lien and other		38.0				36.8			41.2			35.5
Total	$	45.5			$	43.9		$	44.5		$	41.6

Loss ratio - GAAP Basis		242.5	%			268.4	%		179.6	%		250.4	%
Expense ratio - GAAP Basis		18.5	%			17.2	%		23.2	%		29.3	%	(2)
		261.0	%			285.6	%		202.8	%		279.7	%

Reserve for losses by category
Prime	$	1,265,859			$	829,097
Alt-A		767,043				977,177
A minus and below		456,281				446,193
Pool insurance		295,996				107,441
Second-lien		43,579				136,591
Other		136				1,659
Reserve for losses, net		2,828,894				2,498,158
Reinsurance recoverable		621,644		(3)		491,836
Total	$	3,450,538			$	2,989,994

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

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

(3) Reinsurance recoverable on ceded losses related to captives ($490 million) and Smart Home ($131 million).


Radian Group Inc.
Mortgage Insurance Supplemental Information
For the Quarter and Year Ended and as of December 31, 2009
Exhibit M
	December 31	December 31
	2009	2008
Default Statistics
Primary insurance:

Flow
Prime
Number of insured loans	614,590	624,970
Number of loans in default	78,130	44,575
Percentage of loans in default	12.71%	7.13%

Alt-A
Number of insured loans	60,616	68,948
Number of loans in default	22,177	16,959
Percentage of loans in default	36.59%	24.60%

A minus and below
Number of insured loans	53,932	59,189
Number of loans in default	20,911	15,768
Percentage of loans in default	38.77%	26.64%

Total Flow
Number of insured loans	729,138	753,107
Number of loans in default	121,218	77,302
Percentage of loans in default	16.62%	10.26%

Structured
Prime
Number of insured loans	52,629	67,165
Number of loans in default	7,520	6,692
Percentage of loans in default	14.29%	9.96%

Alt-A
Number of insured loans	43,615	80,491
Number of loans in default	15,295	18,747
Percentage of loans in default	35.07%	23.29%

A minus and below
Number of insured loans	19,287	22,315
Number of loans in default	7,965	7,812
Percentage of loans in default	41.30%	35.01%

Total Structured
Number of insured loans	115,531	169,971
Number of loans in default	30,780	33,251
Percentage of loans in default	26.64%	19.56%

Total Primary Insurance
Prime
Number of insured loans	667,219	692,135
Number of loans in default	85,650	51,267
Percentage of loans in default	12.84%	7.41%

Alt-A
Number of insured loans	104,231	149,439
Number of loans in default	37,472	35,706
Percentage of loans in default	35.95%	23.89%

A minus and below
Number of insured loans	73,219	81,504
Number of loans in default	28,876	23,580
Percentage of loans in default	39.44%	28.93%

Total Primary Insurance
Number of insured loans	844,669	923,078
Number of loans in default (1)	151,998	110,553
Percentage of loans in default	17.99%	11.98%

Pool insurance:
Number of loans in default (2)	36,397	32,677



(1)		Includes an estimated 3,302 and 5,373 defaults at December 31, 2009 and December 31, 2008, 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 18,033 and 23,364 defaults at December 31, 2009 and December 31, 2008, 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.


Radian Group Inc.
Mortgage Insurance Supplemental Information
For the Quarter and Year Ended and as of December 31, 2009
Exhibit N
	Quarter Ended								Year Ended
	December 31								December 31
		2009					2008			2009					2008

Net Premiums Written (In thousands)
Primary and Pool Insurance	$	166,188				$	181,173		$	650,060				$	759,943
Second-lien		709		(1	)		3,028			(41	)	(1	)		11,458
International		(2,699	)	(1	)		4,167			(19,943	)	(1	)		15,831
Total Net Premiums Written - Insurance	$	164,198				$	188,368		$	630,076				$	787,232

Net Premiums Earned (In thousands)
Primary and Pool Insurance	$	185,306				$	193,706		$	703,076				$	768,723
Second-lien		972					4,349			5,621					18,727
International		3,356					5,158			15,726					21,331
Total Net Premiums Earned - Insurance	$	189,634				$	203,213		$	724,423				$	808,781

SMART HOME (In millions)
Ceded Premiums Written	$	2.9				$	3.0		$	10.9				$	13.0
Ceded Premiums Earned	$	2.9				$	3.0		$	10.9				$	13.0

1st Lien Captives
Premiums ceded to captives (In millions)	$	26.8				$	33.9		$	129.8				$	138.3
% of total premiums		12.5	%				14.7	%		15.4	%				15.0	%
NIW subject to captives (In millions)	$	39.9				$	1,556.8		$	1,655.6				$	11,824.9
% of primary NIW		1.7	%				30.9	%		9.8	%				36.4	%
IIF included in captives (2)		29.3	%				34.8	%
RIF included in captives (2)		31.5	%				43.8	%

Persistency (twelve months ended December 31)		82.0	%				85.8	%

	December 31					December 31
		2009					2008
SMART HOME

% of Primary RIF included in Smart Home Transactions (2)		3.4	%				3.7	%


(1)		Reflects the impact of second-lien and international terminations.
(2)		Radian reinsures the middle layer risk positions, while retaining a significant portion of the total risk comprising the first loss and most remote risk positions.


Radian Group Inc.
Mortgage Insurance Supplemental Information
For the Quarter and Year Ended and as of December 31, 2009
Exhibit O

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

					December 31										December 31
($ in millions)					2009										2008 (5)

Book Year (2):	Original Book RIF		Progression to Attachment Point		Gross Current RIF		Ceded Current RIF(3)		Net Current RIF		Ever-to-Date Incurred Losses		Reinsurance Benefit (4)		Gross Current RIF		Ceded Current RIF(3)		Net Current RIF		Ever-to-Date Incurred Losses		Reinsurance Benefit (4)

Pre-2006			0-50	%	$	375	$	62	$	313	$	142			$	1,120	$	558	$	562	$	239
Pre-2006			50-75	%		325		185		140		86				942		349		593		142
Pre-2006			75-99	%		557		231		326		127				1,084		397		687		160
Pre-2006			Attached			1,673		452		1,221		381	$	139		1,355		237		1,118		184	$	75
Pre-2006 Total	$	20,988			$	2,930	$	930	$	2,000	$	736	$	139	$	4,501	$	1,541	$	2,960	$	725	$	75


2006			0-50	%	$	1	$	-	$	1	$	-			$	32	$	2	$	30	$	1
2006			50-75	%		16		1		15		1				62		4		58		3
2006			75-99	%		13		1		12		1				310		42		268		18
2006			Attached			1,695		242		1,453		355	$	163		2,074		270		1,804		290	$	161
2006 Total	$	2,769			$	1,725	$	244	$	1,481	$	357	$	163	$	2,478	$	318	$	2,160	$	312	$	161


2007			0-50	%	$	1	$	-	$	1	$	-			$	31	$	2	$	29	$	-
2007			50-75	%		12		1		11		-				225		12		213		8
2007			75-99	%		15		1		14		1				71		7		64		3
2007			Attached			3,446		391		3,055		437	$	191		4,329		454		3,875		350	$	147
2007 Total	$	4,311			$	3,474	$	393	$	3,081	$	438	$	191	$	4,656	$	475	$	4,181	$	361	$	147


2008			0-50	%	$	298	$	22	$	276	$	6			$	2,167	$	197	$	1,970	$	25
2008			50-75	%		149		8		141		6				42		4		38		1
2008			75-99	%		1,454		166		1,288		56				-		-		-		-
2008			Attached			159		14		145		19	$	11		190		15		175		16	$	9
2008 Total	$	2,386			$	2,060	$	210	$	1,850	$	87	$	11	$	2,399	$	216	$	2,183	$	42	$	9

2009			0-50	%	$	284	$	12	$	272	$	-			$	-	$	-	$	-	$	-
2009			50-75	%		-		-		-		-				-		-		-		-
2009			75-99	%		-		-		-		-				-		-		-		-
2009			Attached			-		-		-		-	$	-		-		-		-		-	$	-
2009 Total	$	298			$	284	$	12	$	272	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Quota Share			0-50	%	$	-	$	-	$	-	$	-			$	-	$	-	$	-	$	-
Quota Share			50-75	%		-		-		-		-				-		-		-		-
Quota Share			75-99	%		-		-		-		-				-		-		-		-
Quota Share			Attached			102		33		69		37	$	17		116		37		79		27	$	12
Quota Share Total	$	313			$	102	$	33	$	69	$	37	$	17	$	116	$	37	$	79	$	27	$	12

Total Captive (Including Quota Share)	$	31,065			$	10,575	$	1,822	$	8,753	$	1,655	$	521	$	14,150	$	2,587	$	11,563	$	1,467	$	404

SmartHome			0-50	%	$	32	$	14	$	18	$	12			$	117	$	51	$	66	$	27
SmartHome			50-75	%		71		29		42		23				-		-		-		-
SmartHome			75-99	%		-		-		-		-				-		-		-		-
SmartHome			Attached			1,029		492		537		435	$	143		1,188		521		667		346	$	91
Total SmartHome	$	3,900			$	1,132	$	535	$	597	$	470	$	143	$	1,305	$	572	$	733	$	373	$	91


(1)		Data is presented in the 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 December 31, 2009 excludes $71 million of recoveries recognized from the terminations of certain captive reinsurance agreements during the year.
(5)		Revised from December 31, 2008 originally presented.


Radian Group Inc.
Mortgage Insurance Supplemental Information
For the Quarter and Year Ended and as of December 31, 2009
Modified Pool
Exhibit P
	December 31				December 31
($ in millions)	2009				2008
	$		%		$		%

Primary risk in force by policy year
2005 and prior	$	243	41.7	%	$	295	34.8	%
2006		98	16.8	%		211	24.9	%
2007		235	40.3	%		333	39.3	%
2008		7	1.2	%		8	1.0	%
Total	$	583	100.0	%	$	847	100.0	%

Primary risk in force by product
Prime	$	104	17.8	%	$	154	18.2	%
Alt-A		456	78.2	%		668	78.9	%
A minus and below		23	4.0	%		25	2.9	%
Total	$	583	100.0	%	$	847	100.0	%

Primary insurance in force by product
Prime	$	1,508	16.0	%	$	3,141	17.0	%
Alt-A		7,649	81.2	%		15,027	81.4	%
A minus and below		258	2.8	%		294	1.6	%
Total	$	9,415	100.0	%	$	18,462	100.0	%

Default Statistics:

Primary Insurance:
Total modified pool
Number of insured loans			42,509				86,350
Number of loans in default			12,677				16,725
Percentage of loans in default			29.82	%			19.37	%


Radian Group Inc.
Mortgage Insurance Supplemental Information
For the Quarter and Year Ended and as of December 31, 2009
ALT-A
Exhibit Q
	December 31
($ in millions)	2009				2008
	$		%		$		%

Primary risk in force by FICO score
>=740	$	1,037	24.7	%	$	1,227	24.6	%
680-739		2,028	48.2	%		2,399	48.0	%
660-679		610	14.5	%		734	14.7	%
620-659		500	11.9	%		603	12.1	%
<=619		29	0.7	%		33	0.6	%
Total	$	4,204	100.0	%	$	4,996	100.0	%


Primary risk in force by LTV
85.00% and below	$	977	23.2	%	$	1,275	25.5	%
85.01% to 90.00%		1,805	42.9	%		2,077	41.6	%
90.01% to 95.00%		1,125	26.8	%		1,295	25.9	%
95.01% and above		297	7.1	%		349	7.0	%
Total	$	4,204	100.0	%	$	4,996	100.0	%


Primary risk in force by policy year
2005 and prior	$	1,363	32.4	%	$	1,583	31.6	%
2006		889	21.2	%		1,109	22.2	%
2007		1,720	40.9	%		2,051	41.1	%
2008		231	5.5	%		253	5.1	%
2009		1	-			-	-
Total	$	4,204	100.0	%	$	4,996	100.0	%


Radian Group Inc.
Financial Services Supplemental Information
For the Quarter and Year Ended and as of December 31, 2009
Exhibit R
	Quarter Ended						Year Ended
	December 31						December 31
(In thousands)		2009			2008			2009			2008

Investment in Affiliates-Selected Information

Sherman

Balance, beginning of period	$	111,979		$	87,217		$	99,656		$	104,315
Net income for period		9,618			15,754			33,226			59,782
Dividends received		-			-			(11,040	)		(35,460	)
Other comprehensive loss		(173	)		(3,315	)		(418	)		(3,195	)
Adjustment to investment related to buyback of MGIC interest		-			-			-			(25,786	)
Balance, end of period	$	121,424		$	99,656		$	121,424		$	99,656


Portfolio Information:

Sherman

Total assets	$	1,913,296		$	2,355,660
Net revenues	$	277,611		$	345,914		$	1,245,686		$	1,504,368


Radian Group Inc.
Impact of Mortgage Insurance Terminations
For the Quarter and Year Ended and as of December 31, 2009
Exhibit S
($ in millions)
	As Reported			Impact of			Prior to
	December 31			Mortgage Insurance			Mortgage Insurance
		2009		Terminations			Terminations
Primary insurance in force
Prime	$	111,398		$	1,376		$	112,774
Alt-A		22,941			6,094			29,035
A minus and below		9,929			4			9,933
Total Primary	$	144,268		$	7,474		$	151,742

Primary risk in force
Prime	$	27,095		$	43		$	27,138
Alt-A		4,204			194			4,398
A minus and below		2,466			-			2,466
Total Primary	$	33,765		$	237		$	34,002

Pool risk in force
Prime	$	1,918		$	26		$	1,944
Alt-A		246			-			246
A minus and below		534			4			538
Total Pool	$	2,698		$	30		$	2,728

Primary insurance in force-modified pool (1)
Prime	$	1,508		$	1,376		$	2,884
Alt-A		7,649			6,094			13,743
A minus and below		258			4			262
Total Primary	$	9,415		$	7,474		$	16,889

Primary risk in force-modified pool (1)
Prime	$	104		$	43		$	147
Alt-A		456			194			650
A minus and below		23			-			23
Total Primary	$	583		$	237		$	820

Default Statistics:
Total Primary Insurance
Prime
Number of insured loans		667,219			7,259			674,478
Number of loans in default		85,650			1,671			87,321
Percentage of loans in default		12.84	%		23.02	%		12.95	%

Alt-A
Number of insured loans		104,231			29,553			133,784
Number of loans in default		37,472			10,894			48,366
Percentage of loans in default		35.95	%		36.86	%		36.15	%

A minus and below
Number of insured loans		73,219			31			73,250
Number of loans in default		28,876			10			28,886
Percentage of loans in default		39.44	%		32.26	%		39.43	%

Total Primary Insurance
Number of insured loans		844,669			36,843			881,512
Number of loans in default		151,998			12,575			164,573
Percentage of loans in default		17.99	%		34.13	%		18.67	%

Total modified pool insurance (1)
Number of insured loans		42,509			36,840			79,349
Number of loans in default		12,677			12,573			25,250
Percentage of loans in default		29.82	%		34.13	%		31.82	%

Total pool insurance
Number of loans in default		36,397			2,311			38,708


(1) Included in primary insurance.

Forward-Looking Statements

Some of the statements in this release constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. Generally, words such as "anticipate," "may," "will," "could," "should," "would," "expect," "intend," "plan," "goal," "contemplate," "believe," "estimate," "predict," "project," "potential," "continue," or other variations on these and other similar expressions identify forward-looking statements. Forward-looking statements are only predictions and, as such, are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Forward-looking statements are based upon assumptions as to future events or our future financial performance that may not prove to be accurate. These statements speak only as of the date of this news release, and we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Actual outcomes and results may differ materially from what is expressed or implied in these forward-looking statements. Factors that could cause actual results to differ from those projected in such forward-looking statements include, without limitation, the following:

changes in general financial and political conditions, such as the failure 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 in force 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 losses;
reduced opportunities for loss mitigation in markets where housing values do not appreciate or continue to decline;
the negative impact our increased levels of insurance rescissions and claim denials may have on our relationships with customers, including potentially heightened disputes and litigation;
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;
an increase in the risk profile of our existing mortgage insurance portfolio due to mortgage refinancing in the current housing market;
further downgrades or threatened downgrades of, or other ratings actions with respect to, our credit ratings or the ratings assigned by the major rating agencies to any of our rated insurance subsidiaries at any time (in particular, the credit rating of Radian Group Inc. and the financial strength ratings assigned to Radian Guaranty Inc.);
heightened competition for our mortgage insurance business from others such as the Federal Housing Administration and the Veterans' Administration or other private mortgage insurers (in particular those that have been assigned higher ratings from the major rating agencies);
changes in the charters or business practices of Federal National Mortgage Association ("Fannie Mae") and Freddie Mac, the largest purchasers of mortgage loans that we insure, and our ability to remain an eligible provider to both Freddie Mac and Fannie Mae;
changes to the current system of housing finance, including the possibility of a new system in which private mortgage insurers are not required or its services are significantly limited in scope;
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 investigations or the possibility of private lawsuits or other formal investigations by state insurance departments and state attorneys general alleging that services offered by the mortgage insurance industry, such as captive reinsurance, pool insurance and contract underwriting, are violative of the Real Estate Settlement Procedures Act and/or similar state regulations, (ii) legislative and regulatory changes affecting demand for private mortgage insurance, or (iii) legislation or regulatory changes limiting or restricting our use of (or requirements for) additional capital, the products we may offer, the form in which we may execute the credit protection we provide or the aggregate notional amount of any product we may offer for any one transaction or in the aggregate;
the possibility that we may fail to estimate accurately the likelihood, magnitude and timing of losses in connection with establishing loss reserves for our mortgage insurance or financial guaranty businesses or 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 premium deficiency in our mortgage insurance business on a quarterly basis;
changes in accounting guidance from the Securities and Exchange Commission or the Financial Accounting Standards Board;

legal and other limitations on amounts we may receive from our subsidiaries as dividends or through our tax- and expense-sharing arrangements with our subsidiaries; and
our investment in, and other arrangements with, Sherman Financial Group LLC, which could be negatively affected in the current credit environment if Sherman is unable to maintain sufficient sources of funding for its business activities or remain in compliance with its credit facilities.

For more information regarding these risks and uncertainties as well as certain additional risks that we face, you should review the risks described under Item 1A, "Risk Factors" under our Annual Report on Form 10-K for the year ended December 31, 2008, our Quarterly Report on Form 10-Q/A for the quarter ended September 30, 2009 and subsequent reports and registration statements filed from time to time with the Securities and Exchange Commission.

SOURCE: Radian Group Inc.

Radian
Emily Riley, 215-231-1035
emily.riley@radian.com