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Radian Reports First Quarter Financial Results
PHILADELPHIA, May 5, 2009 /PRNewswire-FirstCall via COMTEX/ -- Radian Group Inc. (NYSE: RDN) today reported a net loss for the quarter ended March 31, 2009, of $217.4 million, or $2.69 per diluted share. This compares to net income of $195.6 million, or $2.44 per diluted share, for the prior year quarter. Book value per share at March 31, 2009, was $22.12.

"Our net loss in the first quarter was primarily attributable to unrealized mark to market losses on derivatives and the continued increase in mortgage insurance defaults. Despite facing difficult operating conditions, we believe that our mortgage insurance franchise remains strong with sufficient capital to continue writing quality new business throughout 2009," said S. A. Ibrahim, Chief Executive Officer of Radian. "The private mortgage insurance industry continues to play a vital role in the recovery of the U.S. housing market. While we continue to see disruption and uncertainty in the marketplace, Radian is prudently managing through the present downturn and positioning for the future, while working diligently to support homeowners and provide liquidity to the mortgage marketplace."

FIRST QUARTER HIGHLIGHTS

-- The unrealized loss on derivatives represented $284.4 million of the total pre-tax loss of $334.4 million.

-- The mortgage insurance provision for losses of $322 million reflects the continued increase in the primary first lien default rate, which rose to 13.2% at the end of the first quarter.

-- First quarter mortgage insurance claims paid were below expectations at $152 million for first liens and $88 million for second liens. The Company anticipates an increase in claims paid for first liens throughout 2009 as new and existing defaults move to claim and certain foreclosure moratoriums expire. Second quarter MI claims paid are expected to be approximately $300 million and the Company is reducing its full year estimated range to $1.2 to $1.4 billion.

-- As a result of reduced mortgage origination volume and the Company's move to a more traditional high quality focus, total primary new mortgage insurance written during the first quarter was $5.6 billion, 99.8 percent of which was prime credit quality.

-- Radian's loss management initiatives remain a critical priority to its capital preservation.

-- The GSE charter remains unchanged and Radian Guaranty retains its eligibility status with the GSEs through frequent and proactive collaboration and demonstration of its capital position.

-- Radian Asset Assurance Inc. (Radian Asset), the Company's principal financial guaranty subsidiary, continues to serve as an important source of capital support for Radian Guaranty Inc. (Radian Guaranty), the Company's principal mortgage insurance subsidiary, and is expected to continue to provide our core mortgage insurance business with cash infusions over time. Radian Asset had $1 billion in statutory capital and total claims-paying resources of $2.8 billion as of March 31, 2009.

-- Radian has a 29 percent ownership interest in Sherman Financial and received $6.4 million in dividends from Sherman during the first quarter.

CONFERENCE CALL

Radian will discuss each of these items in its conference call today, Tuesday, May 5 at 10:00 a.m. Eastern time. The conference call will be broadcast live over the internet at http://www.ir.radian.biz/phoenix.zhtml?c=112301&p=irol-audioarchives or at www.radian.biz. The call may also be accessed by dialing 800-230-1096 inside the U.S., or 612-288-0337 for international callers, using passcode 997299 or by referencing Radian.

A replay of the webcast will be available at the Radian website approximately two hours after the live broadcast ends for a period of one year. A replay of the conference call will be available two and a half hours after the call ends for one week, using the following dial-in numbers and passcode: 800-475-6701 inside the U.S., or 320-365-3844 for international callers, passcode 997299.

About Radian

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

Financial Results and Supplemental Information Contents (Unaudited)

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


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




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

    Revenues:
    Net premiums written - insurance                     $156,756   $244,306
                                                         ========   ========

    Net premiums earned - insurance                      $211,215   $241,921
    Net investment income                                  56,283     65,979
    Change in fair value of derivative instruments       (284,416)   707,809
    Net gains (losses) on other financial instruments      24,246    (54,884)
    Other income                                            4,132      3,614
                                                            -----      -----
     Total revenues                                        11,460    964,439
                                                           ------    -------

    Expenses:
    Provision for losses                                  326,754    582,711
    Provision for premium deficiency                      (48,184)    18,090
    Policy acquisition costs                               13,954     23,906
    Other operating expenses                               51,602     55,141
    Interest expense                                       12,299     12,493
                                                           ------     ------
     Total expenses                                       356,425    692,341
                                                          -------    -------

    Equity in net income of affiliates                     10,552     12,526
                                                           ------     ------

    Pretax (loss) income                                 (334,413)   284,624
    Income tax (benefit) provision                       (116,976)    88,986
                                                         --------     ------

    Net (loss) income                                   $(217,437)  $195,638
                                                        =========   ========

    Diluted net (loss) income per share (1)                $(2.69)     $2.44
                                                           ======      =====


    (1) Weighted average shares outstanding (in thousands)

    Average common shares outstanding                      80,902     79,930
    Increase in shares-common stock equivalents-diluted
     basis                                                      -        110
                                                              ---        ---
    Weighted average shares outstanding                    80,902     80,040

    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

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

    Assets:
    Cash and investments                            $6,498,215   $6,060,601
    Investments in affiliates                          103,291       99,712
    Deferred policy acquisition costs                  222,269      160,526
    Prepaid federal income taxes                        13,475      248,828
    Derivative assets                                  169,993      179,515
    Deferred income taxes, net                         492,663      446,102
    Reinsurance recoverables                           537,359      492,359
    Other assets                                       666,345      428,476
                                                       -------      -------

      Total assets                                  $8,703,610   $8,116,119
                                                    ==========   ==========


    Liabilities and stockholders' equity:
    Unearned premiums                               $1,152,552     $916,724
    Reserve for losses and loss adjustment expenses  3,332,642    3,224,542
    Reserve for premium deficiency                      38,677       86,861
    Long-term debt and other borrowings                857,324      857,802
    Variable interest entity debt                      206,505      160,035
    Derivative liabilities                             741,638      519,260
    Other liabilities                                  573,366      320,185
                                                       -------      -------

      Total liabilities                              6,902,704    6,085,409
                                                     ---------    ---------

    Common stock                                            99           98
    Additional paid-in capital                         464,705      462,647
    Retained earnings                                1,511,719    1,766,946
    Accumulated other comprehensive loss              (175,617)    (198,981)
                                                      --------     --------

      Total common stockholders' equity              1,800,906    2,030,710
                                                     ---------    ---------

       Total liabilities and stockholders' equity   $8,703,610   $8,116,119
                                                    ==========   ==========

    Book value per share                                $22.12       $25.06



    Radian Group Inc. and Subsidiaries
    Segment Information
    Quarter Ended March 31, 2009
    Exhibit C

                               Mortgage   Financial    Financial
    (In thousands)            Insurance    Guaranty    Services     Total
    ----------------         -----------  ----------  ----------   -------
    Revenues:
    Net premiums written -
     insurance                  $161,959     $(5,203)         $-   $156,756
                                ========     =======          ==   ========

    Net premiums earned -
     insurance                  $177,883     $33,332          $-   $211,215
    Net investment income         31,345      24,938           -     56,283
    Change in fair value
     of derivative
     instruments                 (28,576)   (255,840)          -   (284,416)
    Net gains on other
     financial instruments        12,276      11,970           -     24,246
    Other income                   3,818         153         161      4,132
                                   -----         ---         ---      -----
     Total revenues              196,746    (185,447)        161     11,460
                                 -------    --------         ---     ------

    Expenses:
    Provision for losses         321,684       5,070           -    326,754
    Provision for premium
     deficiency                  (48,184)          -           -    (48,184)
    Policy acquisition costs       5,739       8,215           -     13,954
    Other operating expenses      35,694      15,833          75     51,602
    Interest expense               5,694       6,605           -     12,299
                                   -----       -----         ---     ------
     Total expenses              320,627      35,723          75    356,425
                                 -------      ------         ---    -------

    Equity in net income
     of affiliates                     -           -      10,552     10,552
                                     ---         ---      ------     ------

    Pretax (loss) income        (123,881)   (221,170)     10,638   (334,413)

    Income tax (benefit)
     provision                   (35,084)    (85,770)      3,878   (116,976)

                                --------   ---------      ------  ---------
    Net (loss) income           $(88,797)  $(135,400)     $6,760  $(217,437)
                                ========   =========      ======  =========

     Cash and investments     $4,141,601  $2,356,614          $- $6,498,215
     Deferred policy
      acquisition costs           26,391     195,878           -    222,269
     Total assets              5,241,881   3,344,269     117,460  8,703,610
     Unearned premiums           319,785     832,767           -  1,152,552
     Reserve for losses and
      loss adjustment
      expenses                 3,116,553     216,089           -  3,332,642
     Derivative liabilities      127,472     614,166           -    741,638



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

                                Mortgage   Financial    Financial
    (In thousands)             Insurance    Guaranty    Services      Total
    ----------------          -----------  ----------  ----------    -------
    Revenues:
    Net premiums written -
     insurance                  $211,251     $33,055          $-    $244,306
                                ========     =======          ==    ========

    Net premiums earned -
     insurance                  $204,265     $37,656          $-    $241,921
    Net investment income         38,845      27,120          14      65,979
    Change in fair value
     of derivative instruments    71,769     636,040           -     707,809
    Net losses on other
     financial instruments       (36,733)    (18,149)         (2)    (54,884)
    Other income                   3,491         121           2       3,614
                                   -----         ---           -       -----
     Total revenues              281,637     682,788          14     964,439
                                 -------     -------          --     -------

    Expenses:
    Provision for losses         571,008      11,703           -     582,711
    Provision for premium
     deficiency                   18,090           -           -      18,090
    Policy acquisition costs      13,460      10,446           -      23,906
    Other operating expenses      34,170      20,738         233      55,141
    Interest expense               7,090       5,154         249      12,493
                                   -----       -----         ---      ------
     Total expenses              643,818      48,041         482     692,341
                                 -------      ------         ---     -------

    Equity in net income
     of affiliates                     -           -      12,526      12,526
                                     ---         ---      ------      ------

    Pretax (loss) income        (362,181)    634,747      12,058     284,624

    Income tax (benefit)
     provision                  (135,725)    219,219       5,492      88,986

                               ---------    --------      ------    --------
    Net (loss) income          $(226,456)   $415,528      $6,566    $195,638
                               =========    ========      ======    ========

     Cash and
      investments             $4,224,913  $2,516,072          $-  $6,740,985
     Deferred policy
      acquisition costs           62,860     176,540           -     239,400
     Total assets              5,001,689   3,133,958     118,378   8,254,025
     Unearned premiums           365,161     709,428           -   1,074,589
     Reserve for losses and
      loss adjustment
      expenses                 1,741,169     160,959           -   1,902,128
     Derivative liabilities      353,559     349,846           -     703,405



    Radian Group Inc.
    Financial Guaranty Supplemental Information
    For the Quarter Ended and as of March 31, 2009
    Exhibit E
                                                             Quarter Ended
    ($ in thousands, except ratios)                            March  31
                                                               ---------
                                                            2009       2008
                                                            ----       ----

    Net Premiums Earned:
    Public finance direct                                $14,452    $17,810
    Public finance reinsurance                             8,366      9,870
    Structured direct                                      1,777      3,882
    Structured reinsurance                                 8,641      5,599
    Trade credit reinsurance                                  96        495
                                                              --        ---
    Total Net Premiums Earned - insurance                $33,332    $37,656
                                                         =======    =======


    Refundings included in earned premium                $13,044    $11,657
                                                          =======   =======

    Claims paid:
      Trade credit reinsurance                              $178       $586
      Financial Guaranty                                  14,909    103,524
                                                          ------    -------
       Total                                             $15,087   $104,110(2)
                                                         =======   ========

    Loss ratio - GAAP Basis (1)                             12.5%      22.8%
    Expense ratio - GAAP Basis (1)                          51.1%      60.7%
                                                            ----       ----
                                                            63.6%      83.5%
                                                            ====       ====

    Balance Sheet impact of initial adoption of SFAS No. 163 on January 1,
     2009:
    ----------------------------------------------------------------------
    Increase in unearned premiums                      $(292,816)
    Increase in premiums receivable                      161,422
    Increase in deferred acquisition costs                66,006
    Decrease in reserves for losses                        8,163
    Decrease in deferred taxes, net                       20,239
    Increase in premium taxes payable                       (602)
                                                            ----
    Decrease in equity                                  $(37,588)
                                                        ========

    (1) Ratios include premiums earned on credit derivatives which are
    included in change in fair value of derivative instruments in the amount
    of $13.7 million in each of the three month periods ended March 31, 2009
    and 2008.  Loss ratio includes loss on credit derivatives included in
    change in fair value of derivative instruments in the amount of $0.8
    million for the period ended March 31, 2009.
    (2) Includes a $100 million payment related to one credit that is a CDO of
    ABS that was fully reserved for in 2007.



    Radian Group Inc.
    Financial Guaranty Supplemental Information
    For the Quarter Ended and as of March 31, 2009
    Exhibit F

    ($ in thousands, except ratios)     March 31        December 31   March 31
                                          2009              2008         2008
                                          ----              ----         ----

    Capital and surplus             $1,000,387          $968,197   $1,097,250
    Contingency reserve                484,899           515,023      464,655
                                       -------           -------      -------
      Qualified statutory capital    1,485,286         1,483,220    1,561,905

    Unearned premium reserve           702,190           729,274      882,627
    Loss and loss expense reserve      104,220            82,340       58,207
                                       -------            ------       ------
      Total statutory policyholders'
       reserves                      2,291,696         2,294,834    2,502,739

    Present value of installment
     premiums                          385,514           380,666      443,408
    Soft capital facilities            150,000           150,000      150,000
                                       -------           -------      -------
      Total statutory claims
       paying resources             $2,827,210        $2,825,500   $3,096,147
                                    ==========        ==========   ==========

    Net debt service outstanding  $134,341,161      $138,430,925 $165,931,040
                                  ------------      ------------ ------------

    Capital leverage ratio (1)              90                93          106
    Claims paying leverage ratio (2)        48                49           54

    Net par outstanding by product:
      Public finance direct        $18,455,372       $17,836,221  $18,460,669
      Public finance reinsurance    33,494,951        31,578,163   44,404,128
      Structured direct             45,699,943        46,001,355   47,634,388
      Structured reinsurance         5,147,861         5,310,004    6,284,246
                                     ---------         ---------    ---------
    Total                         $102,798,127(3)   $100,725,743 $116,783,431
                                  ============      ============ ============

    Reserve for losses and LAE
      Financial Guaranty              $203,561          $219,671     $133,710
      Trade Credit                      12,528            14,877       27,249
                                        ------            ------       ------
                                      $216,089          $234,548     $160,959
                                      ========          ========     ========


    (1) Net debt service outstanding divided by qualified statutory capital
    (2) Net debt service outstanding divided by total statutory claims paying
    resources
    (3) Included in public finance net par outstanding is $3.6 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 bond holders. SFAS No. 163 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 Ended and as of March 31, 2009
    Exhibit G

                                                    Quarter Ended
    ($ in millions)                                    March 31
                                                       --------
                                             2009     %      2008     %
                                             ----    ---     ----    ---

    Primary New Insurance Written
    -----------------------------
     Flow                                  $5,587   99.6%  $9,284   90.2%
     Structured                                23    0.4%   1,013    9.8%
                                               --    ---    -----    ---
    Total Primary                          $5,610  100.0% $10,297  100.0%
                                           ======  =====  =======  =====

    Flow
      Prime                                $5,574   99.8%  $8,208   88.4%
      Alt-A                                     9    0.1%     583    6.3%
      A minus and below                         4    0.1%     493    5.3%
                                                -    ---      ---    ---
    Total Flow                             $5,587  100.0%  $9,284  100.0%
                                           ======  =====   ======  =====

    Structured
      Prime                                   $23  100.0%  $1,012   99.9%
      Alt-A                                     -      -        1    0.1%
                                              ---    ---        -    ---
    Total Structured                          $23  100.0%  $1,013  100.0%
                                              ===  =====   ======  =====

    Total
      Prime                                $5,597   99.8%  $9,220   89.5%
      Alt-A                                     9    0.1%     584    5.7%
      A minus and below                         4    0.1%     493    4.8%
                                                -    ---      ---    ---
    Total Primary                          $5,610  100.0% $10,297  100.0%
                                           ======  =====  =======  =====

    Total Primary New Insurance Written by FICO Score
    -------------------------------------------------
    Flow
     >=740                                 $3,868   69.3%  $3,466   37.3%
     680-739                                1,583   28.3%   3,615   38.9%
     620-679                                  136    2.4%   1,938   20.9%
     <=619                                      -      -      265    2.9%
                                              ---    ---      ---    ---
    Total Flow                             $5,587  100.0%  $9,284  100.0%
                                           ======  =====   ======  =====

    Structured
     >=740                                    $17   73.9%    $634   62.6%
     680-739                                    6   26.1%     369   36.4%
     620-679                                    -      -       10    1.0%
                                              ---    ---       --    ---
    Total Structured                          $23  100.0%  $1,013  100.0%
                                              ===  =====   ======  =====

    Total
    ------
     >=740                                 $3,885   69.3%  $4,100   39.8%
     680-739                                1,589   28.3%   3,984   38.7%
     620-679                                  136    2.4%   1,948   18.9%
     <=619                                      -      -      265    2.6%
                                              ---    ---      ---    ---
    Total Primary                          $5,610  100.0% $10,297  100.0%
                                           ======  =====  =======  =====

    Percentage of primary new insurance written
    -------------------------------------------
     Refinances                                48%             40%
     95.01% LTV and above                     0.1%             20%
     ARMs
       Less than 5 years                      0.2%              1%
       5 years and longer                     0.4%              6%


    Primary risk written
    --------------------
     Flow                                  $1,193   99.7%  $2,316   89.7%
     Structured                                 3    0.3%     266   10.3%
                                                -    ---      ---   ----
    Total Primary                          $1,196  100.0%  $2,582  100.0%
                                           ======  =====   ======  =====



    Radian Group Inc.
    Mortgage Insurance Supplemental Information
    For the Quarter Ended and as of March 31, 2009
    Exhibit H

    ($ in millions)                           March 31         March 31
                                              --------         --------
                                            2009     %       2008     %
                                            ----    ---      ----    ---
    Primary insurance in force
    --------------------------
     Flow                               $122,656   78.8% $110,020   74.9%
     Structured                           33,012   21.2%   36,929   25.1%
                                          ------   ----    ------   ----
    Total Primary                       $155,668  100.0% $146,949  100.0%
                                        ========  =====  ========  =====

      Prime                             $113,117   72.7%  $99,721   67.9%
      Alt-A                               31,826   20.4%   34,949   23.8%
      A minus and below                   10,725    6.9%   12,279    8.3%
                                          ------    ---    ------    ---
    Total Primary                       $155,668  100.0% $146,949  100.0%
                                        ========  =====  ========  =====

    Primary risk in force
    ---------------------
     Flow                                $30,537   87.3%  $27,751   84.6%
     Structured                            4,443   12.7%    5,041   15.4%
                                           -----   ----     -----   ----
    Total Primary                        $34,980  100.0%  $32,792  100.0%
                                         =======  =====   =======  =====

    Flow
     Prime                               $25,129   82.3%  $21,810   78.6%
     Alt-A                                 3,475   11.4%    3,788   13.6%
     A minus and below                     1,933    6.3%    2,153    7.8%
                                           -----    ---     -----    ---
    Total Flow                           $30,537  100.0%  $27,751  100.0%
                                         =======  =====   =======  =====

    Structured
     Prime                                $2,331   52.5%   $2,577   51.1%
     Alt-A                                 1,378   31.0%    1,554   30.8%
     A minus and below                       734   16.5%      910   18.1%
                                             ---   ----       ---   ----
    Total Structured                      $4,443  100.0%   $5,041  100.0%
                                          ======  =====    ======  =====

    Total
     Prime                               $27,460   78.5%  $24,387   74.4%
     Alt-A                                 4,853   13.9%    5,342   16.3%
     A minus and below                     2,667    7.6%    3,063    9.3%
                                           -----    ---     -----    ---
    Total Primary                        $34,980  100.0%  $32,792  100.0%
                                         =======  =====   =======  =====

    Total Primary Risk in Force by FICO Score
    -----------------------------------------
    Flow
     >=740                                $9,839   32.2%   $7,570   27.3%
     680-739                              11,234   36.8%   10,269   37.0%
     620-679                               8,002   26.2%    8,262   29.8%
     <=619                                 1,462    4.8%    1,650    5.9%
                                           -----    ---     -----    ---
    Total Flow                           $30,537  100.0%  $27,751  100.0%
                                         =======  =====   =======  =====

    Structured
     >=740                                $1,205   27.1%   $1,293   25.6%
     680-739                               1,394   31.4%    1,517   30.1%
     620-679                               1,167   26.3%    1,380   27.4%
     <=619                                   677   15.2%      851   16.9%
                                             ---   ----       ---   ----
    Total Structured                      $4,443  100.0%   $5,041  100.0%
                                          ======  =====    ======  =====

    Total
     >=740                               $11,044   31.6%   $8,863   27.0%
     680-739                              12,628   36.1%   11,786   36.0%
     620-679                               9,169   26.2%    9,642   29.4%
     <=619                                 2,139    6.1%    2,501    7.6%
                                           -----    ---     -----    ---
    Total Primary                        $34,980  100.0%  $32,792  100.0%
                                         =======  =====   =======  =====

    Percentage of primary risk in force
    -----------------------------------
     Refinances                               31%              31%
     95.01% LTV and above                     22%              24%
     ARMs
       Less than 5 years                       8%              11%
       5 years and longer                      9%               9%


    Pool risk in force
    ------------------
     Prime                                $2,058   70.7%   $2,113   70.6%
     Alt-A                                   289    9.9%      292    9.7%
     A minus and below                       564   19.4%      590   19.7%
                                             ---   ----       ---   ----
    Total                                 $2,911  100.0%   $2,995  100.0%
                                          ======  =====    ======  =====



    Radian Group Inc.
    Mortgage Insurance Supplemental Information
    For the Quarter Ended and as of March 31, 2009
    Exhibit I

    ($ in millions)                             March 31        March 31
                                                --------        --------
                                              2009     %      2008     %
                                              ----    ---     ----    ---
    Total Primary Risk in Force by LTV
    ----------------------------------
      85.00% and below                     $ 3,613   10.3% $ 3,685   11.2%
      85.01% to 90.00%                      12,571   35.9%  11,102   33.9%
      90.01% to 95.00%                      11,213   32.1%  10,079   30.7%
      95.01% and above                       7,583   21.7%   7,926   24.2%
                                             -----   ----    -----   ----
    Total                                  $34,980  100.0% $32,792  100.0%
                                           =======  =====  =======  =====

    Total Primary Risk in Force by Policy Year
    ------------------------------------------
      2005 and prior                       $11,083   31.7% $13,213   40.2%
      2006                                   5,015   14.3%   5,728   17.5%
      2007                                  10,410   29.8%  11,300   34.5%
      2008                                   7,298   20.9%   2,551    7.8%
      2009                                   1,174    3.3%       -      -
                                             -----    ---      ---    ---
    Total                                  $34,980  100.0% $32,792  100.0%
                                           =======  =====  =======  =====

    Total Pool Risk in Force by Policy Year
    ---------------------------------------
      2005 and prior                        $2,367   81.3%  $2,456   82.0%
      2006                                     250    8.6%     261    8.7%
      2007                                     235    8.1%     250    8.4%
      2008                                      59    2.0%      28    0.9%
      2009                                       -      -        -      -
                                               ---    ---      ---    ---
    Total Pool risk in Force                $2,911  100.0%  $2,995  100.0%
                                            ======  =====   ======  =====

    Other risk in force
    -------------------
     Second-lien
       1st loss                               $244            $336
       2nd loss                                140             507
      NIMS                                     431             522
      International
        1st loss-Hong Kong primary
         mortgage insurance                    389             517
        Reinsurance                            170             125
        Credit default swaps                 3,072           8,872
      Other
        Domestic credit default swaps          123             212
                                               ---             ---
    Total other risk in force               $4,569         $11,091
                                            ======         =======

    Risk to capital ratio-Radian Guaranty
     only                                   17.6:1          11.4:1



    Radian Group Inc.
    Mortgage Insurance Supplemental Information
    For the Quarter Ended and as of March 31, 2009
    Exhibit J
                                            Quarter Ended
    ($ in thousands)                           March 31
                                               --------
                                         2009            2008
                                         ----            ----
    Direct claims paid
      Prime                           $69,459         $60,658
      Alt-A                            46,270          35,732
      A minus and below                36,730          48,361
      Second-lien and other            87,607 (1)      45,437
                                       ------          ------
    Total                            $240,066        $190,188
                                     ========        ========

    Average claim paid
      Prime                             $41.9           $36.8
      Alt-A                              53.5            49.6
      A minus and below                  38.1            37.2
      Second-lien and other              41.3 (2)        34.6
      Total                             $43.4 (2)       $38.2

    Loss ratio - GAAP Basis             179.8%          264.7%
    Expense ratio - GAAP Basis           23.2%           22.1%
                                         ----            ----
                                        203.0%          286.8%
                                        =====           =====

    Reserve for losses by category
       Prime                         $921,050        $479,653
        Alt-A                         951,932         598,706
        A minus and below             452,837         391,426
        Pool insurance                140,192          56,893
        Second-lien                   111,985         176,121
        Other                           1,780           1,485
                                        -----           -----
    Reserve for losses, net         2,579,776       1,704,284
       Reinsurance recoverable        536,777 (3)      36,885
                                      -------          ------
    Total                          $3,116,553      $1,741,169
                                   ==========      ==========


    (1) Includes a $65 million payment in Q1 '09 related to the settlement of
    certain second-lien transactions, which were fully reserved for at
    December 31, 2008.
    (2) Excludes $65 million payment noted in (1) above.
    (3) Reinsurance recoverable on ceded losses related to captives ($447
    million) and Smart Home ($90 million).



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

    Flow
     Prime
     -----
      Number of insured loans               627,386      624,970   582,261
      Number of loans in default             50,217       44,575    22,806
      Percentage of loans in default           8.00%        7.13%     3.92%

     Alt-A
     -----
      Number of insured loans                66,952       68,948    73,672
      Number of loans in default             18,628       16,959    10,014
      Percentage of loans in default          27.82%       24.60%    13.59%

     A minus and below
     -----------------
      Number of insured loans                57,576       59,189    64,193
      Number of loans in default             15,999       15,768    10,411
      Percentage of loans in default          27.79%       26.64%    16.22%

    Total Flow
      Number of insured loans               751,914      753,107   720,126
      Number of loans in default             84,844       77,302    43,231
      Percentage of loans in default          11.28%       10.26%     6.00%

    Structured
     Prime
     -----
      Number of insured loans                65,727       67,165    72,264
      Number of loans in default              7,331        6,692     5,434
      Percentage of loans in default          11.15%        9.96%     7.52%

     Alt-A
     -----
      Number of insured loans                78,901       80,491    87,325
      Number of loans in default             21,600       18,747    12,056
      Percentage of loans in default          27.38%       23.29%    13.81%

     A minus and below
     -----------------
      Number of insured loans                21,449       22,315    26,342
      Number of loans in default              7,542        7,812     8,404
      Percentage of loans in default          35.16%       35.01%    31.90%

    Total Structured
      Number of insured loans               166,077      169,971   185,931
      Number of loans in default             36,473       33,251    25,894
      Percentage of loans in default          21.96%       19.56%    13.93%

    Total Primary Insurance
     Prime
     -----
      Number of insured loans               693,113      692,135   654,525
      Number of loans in default             57,548       51,267    28,240
      Percentage of loans in default           8.30%        7.41%     4.31%

     Alt-A
     -----
      Number of insured loans               145,853      149,439   160,997
      Number of loans in default             40,228       35,706    22,070
      Percentage of loans in default          27.58%       23.89%    13.71%

     A minus and below
     -----------------
      Number of insured loans                79,025       81,504    90,535
      Number of loans in default             23,541       23,580    18,815
      Percentage of loans in default          29.79%       28.93%    20.78%

    Total Primary Insurance
      Number of insured loans               917,991      923,078   906,057
      Number of loans in default            121,317      110,553    69,125
      Percentage of loans in default (1)      13.22%       11.98%     7.63%

    Pool insurance:
       Number of loans in default (2)        33,267       32,677    26,983


    (1) Includes 627, 539 and 1,504 defaults at March 31, 2009, December 31,
    2008 and March 31, 2008, respectively, where reserves have not been
    established because no claim payment is currently anticipated.
    (2) Includes 20,454, 21,719 and 20,417 defaults at March 31, 2009,
    December 31, 2008 and March 31, 2008, respectively, where reserves have
    not been established because no claim payment is currently anticipated.



    Radian Group Inc.
    Mortgage Insurance Supplemental Information
    For the Quarter Ended and as of March 31, 2009
    Exhibit L
                                                    Quarter Ended
                                                      March 31
                                                      --------
                                                   2009      2008
                                                   ----      ----

    Net Premiums Written (In thousands)
    -----------------------------------
     Primary and Pool Insurance                $161,414  $200,477
     Second-lien                                    (86)    3,481
     International                                  631     7,293
                                                    ---     -----
    Total Net Premiums Written - insurance     $161,959  $211,251
                                               ========  ========


    Net Premiums Earned (In thousands)
    -----------------------------------
     Primary and Pool Insurance                $170,547  $193,483
     Second-lien                                  1,236     6,164
     International                                6,100     4,618
                                                  -----     -----
    Total Net Premiums Earned - insurance      $177,883  $204,265
                                               ========  ========


    SMART HOME (In millions)
    ------------------------
    Ceded Premiums Written                         $2.7      $3.2
    Ceded Premiums Earned                          $2.7      $3.2

    1st Lien Captives
    -----------------
    Premiums ceded to captives (In millions)      $34.5     $35.7
    % of total premiums                            16.6%     15.4%
    NIW subject to captives (In millions)        $1,041    $3,986
    % of primary NIW                               18.6%     38.7%
    IIF included in captives (1)                   35.7%     37.4%
    RIF included in captives (1)                   43.4%     42.2%

    Persistency (twelve months ended March 31)     87.0%     77.5%

                                                 March 31  March 31
                                                   2009      2008
                                                   ----      ----
    SMART HOME

    % of Primary RIF included in Smart Home
     Transactions (1)                               3.6%      5.0%

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



    Radian Group Inc.
    Mortgage Insurance Supplemental Information
    For the Quarter Ended and as of March 31, 2009
    Exhibit M

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

    ($ in millions)


                                                       Progression
                                                           to
                                    Original            Attachment
    Book Year (2):                  Book RIF              Point
    --------------                 -----------         -----------

    Pre-2006                                                0-50%
    Pre-2006                                               50-75%
    Pre-2006                                               75-99%
    Pre-2006                                             Attached
    Pre-2006 Total                   $25,849


    2006                                                    0-50%
    2006                                                   50-75%
    2006                                                   75-99%
    2006                                                 Attached
    2006 Total                        $3,527


    2007                                                    0-50%
    2007                                                   50-75%
    2007                                                   75-99%
    2007                                                 Attached
    2007 Total                        $5,241


    2008                                                    0-50%
    2008                                                   50-75%
    2008                                                   75-99%
    2008                                                 Attached
    2008 Total                        $2,564

    2009                                                    0-50%
    2009                                                   50-75%
    2009                                                   75-99%
    2009                                                 Attached
    2009 Total                          $160

    Quota Share                                             0-50%
    Quota Share                                            50-75%
    Quota Share                                            75-99%
    Quota Share                                          Attached
    Quota Share Total                   $313

    Total Captive (Including Quota
     Share)                          $37,654

    SmartHome                                                0-50%
    SmartHome                                               50-75%
    SmartHome                                               75-99%
    SmartHome                                             Attached
    Total SmartHome                   $3,900



                                              March 31
    ($ in millions)                             2009
                                                ----

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

    Pre-2006            $837       $454        $383       $183
    Pre-2006             970        395         575        154
    Pre-2006           1,117        388         729        162
    Pre-2006           1,327        239       1,088        197        $79
                       -----        ---       -----        ---        ---
    Pre-2006 Total    $4,251     $1,476      $2,775       $696        $79
                      ======     ======      ======       ====        ===


    2006                 $10         $1          $9         $-
    2006                  26          2          24          1
    2006                  57          4          53          4
    2006               2,296        312       1,984        326       $167
                       -----        ---       -----        ---       ----
    2006 Total        $2,389       $319      $2,070       $331       $167
                      ======       ====      ======       ====       ====


    2007                 $20         $1         $19         $-
    2007                  11          1          10          -
    2007                 267         18         249         14
    2007               4,227        454       3,773        403       $180
                       -----        ---       -----        ---       ----
    2007 Total        $4,525       $474      $4,051       $417       $180
                      ======       ====      ======       ====       ====


    2008              $1,855       $167      $1,688        $31
    2008                 322         36         286          8
    2008                  42          4          38          2
    2008                 186         15         171         19        $12
                         ---         --         ---         --        ---
    2008 Total        $2,405       $222      $2,183        $60        $12
                      ======       ====      ======        ===        ===

    2009                $159         $7        $152         $-
    2009                  -           -           -          -
    2009                  -           -           -          -
    2009                  -           -           -          -         $-
                        ---         ---         ---        ---         --
    2009 Total         $159          $7        $152         $-         $-
                       ====          ==        ====         ==         ==

    Quota Share          $-          $-          $-         $-
    Quota Share           -           -           -          -
    Quota Share           -           -           -          -
    Quota Share         113          36          77         29        $13
                        ---          --          --         --        ---
    Quota Share Total  $113         $36         $77        $29        $13
                       ====         ===         ===        ===        ===

    Total Captive
     (Including Quota
     Share)         $13,842      $2,534     $11,308     $1,533       $451
                    =======      ======     =======     ======       ====

    SmartHome          $115         $49         $66        $29
    SmartHome             -           -           -          -
    SmartHome             -           -           -          -
    SmartHome         1,146         516         630        361        $90
                      -----         ---         ---        ---        ---
    Total SmartHome  $1,261        $565        $696       $390        $90
                     ======        ====        ====       ====        ===



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

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

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

    Pre-2006          $1,120        $558     $562        $239
    Pre-2006             942         349      593         142
    Pre-2006           1,084         397      687         160
    Pre-2006           1,355         237    1,118         184         $75
                       -----         ---    -----         ---         ---
    Pre-2006 Total    $4,501      $1,541   $2,960        $725         $75
                      ======      ======   ======        ====         ===


    2006                 $32          $2      $30          $1
    2006                  62           4       58           3
    2006                 310          42      268          18
    2006               2,074         270    1,804         290        $161
                       -----         ---    -----         ---        ----
    2006 Total        $2,478        $318   $2,160        $312        $161
                      ======        ====   ======        ====        ====


    2007                 $31          $2      $29          $-
    2007                 225          12      213           8
    2007                  71           7       64           3
    2007               4,329         454    3,875         350        $147
                       -----         ---    -----         ---        ----
    2007 Total        $4,656        $475   $4,181        $361        $147
                      ======        ====   ======        ====        ====


    2008              $2,167        $197   $1,970         $25
    2008                  42           4       38           1
    2008                   -           -        -           -
    2008                 190          15      175          16          $9
                         ---          --      ---          --          --
    2008 Total        $2,399        $216   $2,183         $42          $9
                      ======        ====   ======         ===          ==

    2009                  $-          $-       $-          $-
    2009                  -            -        -           -
    2009                  -            -        -           -
    2009                  -            -        -           -          $-
                        ---          ---      ---         ---          --
    2009 Total           $-           $-       $-          $-          $-
                         ==           ==       ==          ==          ==

    Quota Share          $-            $-      $-          $-
    Quota Share           -             -       -           -
    Quota Share           -             -       -           -
    Quota Share         116            37      79          27         $12
                        ---            --      --          --         ---
    Quota Share Total  $116           $37     $79         $27         $12
                       ====           ===     ===         ===         ===


    Total Captive
     (Including
     Quota Share)   $14,150        $2,587 $11,563      $1,467        $404
                    =======        ====== =======       =====        ====

    SmartHome          $117           $51     $66         $27
    SmartHome             -             -       -           -
    SmartHome             -             -       -           -
    SmartHome         1,188           521     667         346         $91
                      -----           ---     ---         ---         ---
    Total SmartHome  $1,305          $572    $733        $373         $91
                     ======          ====    ====        ====         ===

    (1) Data presented in aggregate for all trusts for captives active at each
    period end only.  Actual trust attachment and exit points vary by
    individual contract.  Attachment is calculated at the contract/deal level
    and is based on Total Incurred Losses which are defined as claims paid
    ever-to-date plus loss reserves.
    (2) Book year figures may include loans from additional periods pursuant
    to reinsurance agreement terms and conditions.
    (3) Risk ceded to reinsurers based on individual contract terms.
    (4) Captive Benefit is defined as ceded reserves at period end plus ever
    to-date claims paid by the trust.
    (5) Revised from December 31, 2008 originally presented.



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

    ($ in millions)                                 March 31      March 31
                                                    --------      --------
                                                   2009     %    2008     %
                                                   ----    ---   ----    ---
    Modified Pool Risk in Force
    ---------------------------

    Prime
    -----
      2005 and prior                                $84   53.5%   $90   57.0%
      2006                                           47   29.9%    44   27.8%
      2007                                           22   14.0%    23   14.6%
      2008                                            4    2.6%     1    0.6%
                                                      -    ---      -    ---
    Total                                          $157  100.0%  $158  100.0%
                                                   ====  =====   ====  =====

    Alt-A
    -----
      2005 and prior                               $194   29.3%  $212   31.0%
      2006                                          161   24.3%   165   24.1%
      2007                                          304   45.8%   304   44.5%
      2008                                            4    0.6%     3    0.4%
                                                      -    ---      -    ---
    Total                                          $663  100.0%  $684  100.0%
                                                   ====  =====   ====  =====

    A minus and below
    -----------------
      2005 and prior                                $14   58.3%   $16   61.6%
      2006                                            3   12.5%     3   11.5%
      2007                                            7   29.2%     7   26.9%
                                                      -   ----      -   ----
    Total                                           $24  100.0%   $26  100.0%
                                                    ===  =====    ===  =====

    Total
    -----
      2005 and prior                               $292   34.6%  $318   36.6%
      2006                                          211   25.0%   212   24.4%
      2007                                          333   39.5%   334   38.5%
      2008                                            8    0.9%     4    0.5%
                                                      -    ---      -    ---
    Total Modified Pool Risk in Force              $844  100.0%  $868  100.0%
                                                   ====  =====   ====  =====



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

    Primary Risk in Force by FICO Score
    ------------------------------------
     >=740                                $1,192   24.5%  $1,286   24.1%
     680-739                               2,335   48.1%   2,540   47.6%
     660-679                                 712   14.7%     793   14.8%
     620-659                                 582   12.0%     686   12.8%
     <=619                                    32    0.7%      37    0.7%
                                              --    ---       --    ---
    Total                                 $4,853  100.0%  $5,342  100.0%
                                          ======  =====   ======  =====


    Primary Risk in Force by LTV
    -----------------------------
     85.00% and below                     $1,249   25.7%  $1,373   25.7%
     85.01% to 90.00%                      2,015   41.5%   2,199   41.2%
     90.01% to 95.00%                      1,256   25.9%   1,398   26.2%
     95.01% and above                        333    6.9%     372    6.9%
                                             ---    ---      ---    ---
    Total                                 $4,853  100.0%  $5,342  100.0%
                                          ======  =====   ======  =====


    Primary Risk in Force by Policy Year
    -------------------------------------
      2005 and prior                      $1,532   31.6%  $1,834   34.3%
      2006                                 1,076   22.2%   1,225   22.9%
      2007                                 1,997   41.1%   2,146   40.2%
      2008                                   246    5.1%     137    2.6%
      2009                                     2      -        -      -
                                               -    ---      ---    ---
    Total                                 $4,853  100.0%  $5,342  100.0%
                                          ======  =====   ======  =====



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

    Investment in Affiliates-Selected Information

          Sherman
    -------------------------------------------

    Balance, beginning of period                      $99,656    $104,315
    Net income for period                              10,552      12,526
    Dividends received                                  6,441           -
    Other comprehensive (loss) income                    (531)         88
                                                         ----          --
    Balance, end of period                           $103,236    $116,929
                                                     ========    ========


    Portfolio Information:

          Sherman
    -------------------------------------------

    Total assets                                   $2,149,767  $2,383,119
    Net revenues                                     $348,034    $391,968

Forward Looking Statement

All statements in this news release that address events, developments or results that we expect or anticipate may occur in the future are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the U.S. Private Securities Litigation Reform Act of 1995. These statements, 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. 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 a
        deepening of the existing national economic recession, further decreases
        in housing demand, mortgage originations or housing values (in
        particular, further deterioration in the housing, mortgage and related
        credit markets, which would harm our future consolidated results of
        operations and could cause losses for our businesses to be worse than
        expected), a further reduction in the liquidity in the capital markets
        and further contraction of credit markets, further increases in
        unemployment rates, changes or volatility in interest rates or consumer
        confidence, changes in credit spreads, changes in the way investors
        perceive the strength of private mortgage insurers or financial guaranty
        providers, investor concern over the credit quality and specific risks
        faced by the particular businesses, municipalities or pools of assets
        covered by our insurance;

    --  Further economic changes or catastrophic events in geographic regions
        where our mortgage insurance or financial guaranty insurance in force is
        more concentrated;

    --  our ability to successfully execute upon our internally sourced capital
        plan (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 our
        long-term liquidity needs and to protect our credit ratings and the
        financial strength ratings of Radian Guaranty Inc., our primary mortgage
        insurance subsidiary, from further downgrades;

    --  a further decrease in the volume of home mortgage originations due to
        reduced liquidity in the lending market, tighter underwriting standards
        and the on-going deterioration in housing markets throughout the U.S.;

    --  our ability to maintain adequate risk-to-capital ratios and surplus
        requirements in our mortgage insurance business in light of on-going
        losses in this business;

    --  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 adjustable
        rate products, such as adjustable rate mortgages and interest-only
        mortgages, which have resulted in increased losses and are expected to
        result in further losses;

    --  reduced opportunities for loss mitigation in markets where housing
        values fail to appreciate or continue to decline;

    --  changes in persistency rates of our mortgage insurance policies caused
        by changes in refinancing activity, in the rate of appreciation or
        depreciation of home values and changes in the mortgage insurance
        cancellation requirements of mortgage lenders and investors;

    --  further downgrades or threatened downgrades of, or other ratings actions
        with respect to, our credit ratings or the ratings assigned by the major
        rating agencies to any of our rated insurance subsidiaries at any time
        (in particular, the credit rating of Radian Group Inc. and the financial
        strength ratings assigned to Radian Guaranty Inc.);

    --  heightened competition for our mortgage insurance business from others
        such as the Federal Housing Administration and the Veterans'
        Administration or other private mortgage insurers (in particular those
        that have been assigned higher ratings from the major rating agencies);

    --  changes in the charters or business practices of Federal National
        Mortgage Association ("Fannie Mae") and Freddie Mac, the
        largest purchasers of mortgage loans that we insure, and our ability to
        remain an eligible provider to both Freddie Mac and Fannie Mae;

    --  the application of existing federal or state consumer, lending,
        insurance, securities and other applicable laws and regulations, or
        changes in these laws and regulations or the way they are interpreted,
        including without limitation: (i) the outcome of existing investigations
        or the possibility of private lawsuits or other formal investigations by
        state insurance departments and state attorneys general alleging that
        services offered by the mortgage insurance industry, such as captive
        reinsurance, pool insurance and contract underwriting, are violative of
        the Real Estate Settlement Procedures Act and/or similar state
        regulations, (ii) legislative and regulatory changes affecting demand
        for private mortgage insurance, or (iii) legislation and regulatory
        changes limiting or restricting our use of (or requirements for)
        additional capital, the products we may offer, the form in which we may
        execute the credit protection we provide or the aggregate notional
        amount of any product we may offer for any one transaction or in the
        aggregate;

    --  the possibility that we may fail to estimate accurately the likelihood,
        magnitude and timing of losses in connection with establishing loss
        reserves for our mortgage insurance or financial guaranty businesses, or
        the premium deficiencies for our first- and second-lien mortgage
        insurance business, or to estimate accurately the fair value amounts of
        derivative contracts in our mortgage insurance and financial guaranty
        businesses in determining gains and losses on these contracts;

    --  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
        deficiencies in our mortgage insurance business on a quarterly basis;

    --  changes in accounting guidance from the Securities and Exchange
        Commission ("SEC") or the Financial Accounting Standards
        Board;

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

    --  the performance of our investment in Sherman Financial Group LLC, which
        could be negatively impacted if Sherman is unable to maintain sufficient
        sources of funding in the current credit environment.

We caution you not to place undue reliance on these forward-looking statements, which are current only as of the date on which we issued this news release. For more information regarding these risks and uncertainties as well as certain additional risks that we face, you should refer to the Risk Factors detailed in Part I of Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2008. We do not intend to, and we disclaim any duty or obligation to, update or revise any forward-looking statements made in this news release to reflect new information or future events or for any other reason.

SOURCE Radian Group Inc.


http://www.radian.biz

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding Radian Group Inc.'s business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.