Radian (RDN) 8-K Other events

Exhibit 99.1

Radian Group Inc.    

1601 Market Street

Philadelphia, Pennsylvania

19103-2337

800 523.1988

215 564.6600

News Release

Contact:

For investors – Mona Zeehandelaar –phone: 215 564.6600, ext. 3674

email:mona.zeehandelaar@radianmi.com

For the media – Emily Riley –phone: 215 564.6600, ext. 3328

email:emily.riley@radianmi.com

Radian Reports 2002 Earnings of $427.2 Million, Up 19%

PHILADELPHIA, Pa., January 22, 2003 — Radian Group Inc. (NYSE: RDN) today reported net income of $107.8 million for the fourth quarter of 2002, up 12% compared to $96.1 million in the fourth quarter of 2001. Net income per share was $1.14, which includes $0.02 per share of net gains, up 14% compared to $1.00 in the fourth quarter of 2001. For the year, net income and net income per share were $427.2 million and $4.41 respectively, compared to $360.4 million and $3.88 in 2001.

Premiums written in the fourth quarter were $258.1 million, up 7% compared to $240.3 million in the fourth quarter of 2001. Mortgage insurance accounted for 70% of this total, while financial guaranty business represented 30%. Premiums earned in the fourth quarter were $217.4 million, an increase of 8% compared to $200.4 million in 2001. Net investment income for the quarter was $46.1 million, up from $40.1 million a year ago. For the year, premiums written increased 22% to $954.9 million, premiums earned increased 18% to $847.1 million and net investment income grew 21% from the prior year, to $178.8 million.

Radian Group Inc.    

1601 Market Street

Philadelphia, Pennsylvania

19103-2337

800 523.1988

215 564.6600

News Release

“Radian delivered strong and consistent results in 2002, which is a testament to our diversified business platform and risk-management expertise,” said Chairman and Chief Executive Officer Frank P. Filipps. “Our mortgage insurance operations were challenged by an uncertain economic climate in 2002. But Radian’s balanced business model allowed us to take advantage of an outstanding environment for our financial guaranty business – which grew 66% in net income over the year – while maintaining our stringent ROE criteria and disciplined approach to writing new business.”

Financial Guaranty

Financial guaranty net premiums written for the quarter were $78.3 million, led by significant new writings in the direct municipal, reinsurance and structured product areas. Net premiums earned were $56.0 million, compared to $36.1 million last year. Insured net debt service outstanding at December 31, 2002 was $104.8 billion, compared to $97.9 billion a year ago.

Mortgage Insurance

New primary mortgage insurance in the quarter was $15.3 billion, including $5.0 billion of structured mortgage insurance, compared to $13.1 billion in the fourth quarter of 2001. Primary mortgage insurance-in-force was $110.3 billion at December 31, 2002, compared to $107.9 billion a year ago. The delinquency rate on primary loans was 4.06%, compared to 3.48% a year ago.

Mortgage Services

Net income per share for the fourth quarter included $0.10 per share from Radian’s mortgage services businesses, primarily C-BASS and Sherman Financial, compared to $0.05 for the same period last year.

Radian Group Inc.    

1601 Market Street

Philadelphia, Pennsylvania

19103-2337

800 523.1988

215 564.6600

News Release

Radian will hold a conference call to discuss the company’s fourth quarter results on Thursday, January 23, 2003, at 9:00 a.m. Eastern time. This call will be broadcast live over the Internet athttp://www.radiangroupinc.com/RadianGroup/grp_invest_conf.asp. A replay of the call will be available at this site approximately two hours after the live broadcast ends.

Radian Group Inc. is a leading credit enhancement provider to the global financial and capital markets, headquartered in Philadelphia. Radian’s subsidiaries provide products and services through three business lines: financial guaranty, mortgage insurance and mortgage services. Additional information may be found athttp://www.radiangroupinc.com

The following is a “Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995:

The statements contained in this release that are not historical facts are forward-looking statements. Actual results may differ materially from those projected in the forward-looking statements. These forward-looking statements involve risks and uncertainties, including but not limited to, the following risks: that interest rates may increase rather than remain stable or decrease; that housing demand may decrease for any number of reasons, including changes in interest rates, adverse economic conditions, or other reasons; that Radian’s market share may decrease as a result of changes in underwriting criteria by Radian or its competitors, or other reasons; and changes in the performance of the financial markets, in the demand for and market acceptance of Radian products, increased competition from government programs and the use of substitutes for mortgage insurance, and in general conditions. Investors are also directed to other risks discussed in documents filed by Radian with the Securities and Exchange Commission.

###

Radian Group Inc. and Subsidiaries

Condensed Consolidated Statements of Income

	Quarter Ended December 31					Year Ended December 31
	2002		2001			2002			2001
	(Thousands of dollars, except share data)
Revenues:
Net premiums written	$	258,057	$	240,254		$	954,919		$	783,644
Premiums earned		217,393		200,386			847,125			715,880
Net investment income		46,100		40,056			178,841			147,487
Equity in net income of affiliates		23,361		9,116			81,749			41,309
Other income		13,927		13,762			44,375			42,525
Total revenues		300,781		263,320			1,152,090			947,201
Expenses:
Provision for losses		70,406		55,586			243,332			208,136
Policy acquisition costs		27,053		24,898			100,818			84,262
Other operating expenses		47,025		41,468			175,313			132,516
Interest expense		7,253		5,951			28,824			17,803
Total expenses		151,737		127,903			548,287			442,717
Gains and losses:
Gain/loss on sales of investments		1,694		1,094			10,462			6,824
Change in fair value of derivative instruments		1,107		(1,319	)		(12,989	)		(5,777	)
Total gains and losses		2,801		(225	)		(2,527	)		1,047
Pretax income		151,845		135,192			601,276			505,531
Provision for income taxes		44,093		39,139			174,107			145,112
Net income	$	107,752	$	96,053		$	427,169		$	360,419
Dividends to preferred stockholder		0		825			2,475			3,300
Premium paid to redeem preferred stock		0		0			3,003			0
Net income available to common stockholders	$	107,752	$	95,228		$	421,691		$	357,119
Net income per share	$	1.14	$	1.00		$	4.41		$	3.88
Weighted average shares outstanding (in thousands)		94,521		95,157			95,706			91,958

Radian Group Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

	December 31 2002		December 31 2001
	(Thousands of dollars, except share data)
Assets:
Cash and investments	$	4,222,296	$	3,429,634
Investments in affiliates		259,120		177,465
Deferred policy acquisition costs		183,587		151,037
Prepaid federal income taxes		294,136		326,514
Other assets		434,266		353,976
Total assets	$	5,393,405	$	4,438,626
Liabilities and stockholders’ equity:
Unearned premiums	$	618,050	$	513,932
Reserve for losses		624,577		588,643
Short-term and long-term debt		544,145		324,076
Deferred federal income taxes		570,279		432,098
Other liabilities		282,919		233,549
Total liabilities		2,639,970		2,092,298
Preferred stock		0		40,000
Common stock		95		94
Additional paid-in capital		1,186,830		1,202,214
Retained earnings		1,508,138		1,093,580
Accumulated other comprehensive income		58,372		10,440
Total common stockholders’ equity		2,753,435		2,306,328
Total liabilities and stockholders’ equity	$	5,393,405	$	4,438,626
Book value per share	$	29.42	$	24.54

Radian Group Inc. and Subsidiaries

Segment Information

For the Quarter and Year Ended December 31, 2002

Financial Guaranty

	Quarter Ended December 31						Year Ended December 31
	2002			2001			2002			2001
	(Thousands of dollars)
Net premiums written	$	78,348		$	58,119		$	286,336		$	143,230
Premiums earned	$	55,952		$	36,142		$	186,633		$	106,455
Net investment income		18,783			14,981			71,541			50,250
Equity in net income of affiliates		406			(278	)		(123	)		(1,208	)
Other income		432			743			1,514			2,991
Total revenues		75,573			51,588			259,565			158,488
Expenses:
Provision for losses		15,417			10,097			48,846			28,990
Policy acquisition costs		10,240			8,775			34,004			21,823
Other operating expenses		4,493			5,978			27,554			21,607
Interest expense		2,294			1,911			9,559			6,019
Total expenses		32,444			26,761			119,963			78,439
Gains and losses:
Gain/loss on sales of investments		336			2,587			2,369			2,079
Change in fair value of derivative instruments		(5,793	)		(3,819	)		(13,451	)		(4,449	)
Total gains and losses		(5,457	)		(1,232	)		(11,082	)		(2,370	)
Pretax income		37,672			23,595			128,520			77,679
Income tax provision		10,451			6,642			35,430			21,534
Net income	$	27,221		$	16,953		$	93,090		$	56,145
Assets	$	1,884,508		$	1,452,416
Deferred policy acquisition costs		107,914			75,002
Reserve for losses		139,872			123,199
Unearned premiums		505,475			407,781
Equity		912,803			704,908

Radian Group Inc. and Subsidiaries

Segment Information

For the Quarter and Year Ended December 31, 2002

Mortgage Insurance

	Quarter Ended December 31					Year Ended December 31
	2002		2001			2002		2001
	(Thousands of dollars)
Net premiums written	$	179,709	$	182,135		$	668,583	$	640,414
Premiums earned	$	161,441	$	164,244		$	660,492	$	609,425
Net investment income		27,256		25,073			107,138		97,110
Equity in net income of affiliates		—		—			—		—
Other income		6,411		5,967			20,390		20,412
Total revenues		195,108		195,284			788,020		726,947
Expenses:
Provision for losses		54,989		45,489			194,486		179,146
Policy acquisition costs		16,813		16,123			66,814		62,439
Other operating expenses		27,807		28,898			109,043		91,967
Interest expense		4,359		3,633			17,155		10,454
Total expenses		103,968		94,143			387,498		344,006
Gains and losses:
Gain/loss on sales of investments		509		(424	)		4,643		5,779
Change in fair value of derivative instruments		6,900		2,500			462		(1,328	)
Total gains and losses		7,409		2,076			5,105		4,451
Pretax income		98,549		103,217			405,627		387,392
Income tax provision		27,392		29,145			111,823		107,394
Net income	$	71,157	$	74,072		$	293,804	$	279,998
Assets	$	3,262,741	$	2,783,705
Deferred policy acquisition costs		75,673		76,035
Reserve for losses		484,705		465,444
Unearned premiums		112,575		106,151
Equity		1,639,205		1,445,680

Radian Group Inc. and Subsidiaries

Segment Information

For the Quarter and Year Ended December 31, 2002

Mortgage Services

	Quarter Ended December 31					Year Ended December 31
	2002		2001			2002		2001
	(Thousands of dollars)
Net premiums written
Premiums earned
Net investment income	$	61	$	2		$	162	$	127
Equity in net income of affiliates		22,955		9,394			81,872		42,517
Other income		7,084		7,052			22,471		19,122
Total revenues		30,100		16,448			104,505		61,766
Expenses:
Provision for losses
Policy acquisition costs
Other operating expenses		14,725		6,592			38,716		18,942
Interest expense		600		407			2,110		1,330
Total expenses		15,325		6,999			40,826		20,272
Gains and losses:
Gain/loss on sales of investments		849		(1,069	)		3,450		(1,034	)
Change in fair value of derivative instruments		—		—			—		—
Total gains and losses		849		(1,069	)		3,450		(1,034	)
Pretax income		15,624		8,380			67,129		40,460
Income tax provision		6,250		3,352			26,854		16,184
Net income	$	9,374	$	5,028		$	40,275	$	24,276
Assets	$	246,156	$	202,505
Deferred policy acquisition costs
Reserve for losses
Unearned premiums
Equity		201,427		155,740

Radian Group Inc.

Financial Guaranty Insurance Supplemental Information

For the Quarter and Year Ended and as of December 31, 2002

	Quarter Ended December 31				Year Ended December 31
	2002		2001		2002		2001
	(Thousands of dollars, except ratios)
Net premiums written:
Muni direct	19,402		19,747		62,849		35,652
Muni reinsurance	13,901		14,087		48,130		36,773
Structured direct	15,052		6,589		66,644		12,016
Structured reinsurance	16,140		11,675		60,297		36,427
Trade credit	13,853		6,020		48,417		22,362
	78,348		58,118		286,337		143,230
Net premiums earned:
Muni direct	3,937		4,464		14,717		13,097
Muni reinsurance	10,829		9,504		39,228		26,431
Structured direct	15,015		4,941		42,534		12,804
Structured reinsurance	16,353		11,397		57,597		32,099
Trade credit	9,818		5,835		32,557		22,024
	55,952		36,141		186,633		106,455
Loss ratio	27.6	%	27.9	%	26.2	%	27.2	%
Expense ratio	26.3	%	40.8	%	33.0	%	40.8	%
	53.9	%	68.7	%	59.2	%	68.0	%
Refundings included in earned premium	2,979		1,912		7,823		6,736
	December 31 2002		December 31 2001
Capital and surplus	581,185		322,223
Contingency reserve	319,648		345,531
Qualified statutory capital	900,833		667,754
Unearned premium reserve	604,942		496,860
Loss and loss expense reserve	84,096		65,753
Total policyholders’ reserves	1,589,871		1,230,367
Present value of installment premiums	400,140		254,035
Reinsurance and soft capital facilities	165,000		155,000
Total claims paying resources	2,155,011		1,639,402
Net debt service outstanding	104,755,801		97,939,660
Capital leverage ratio (1)	116		147
Claims paying leverage ratio (2)	49		60

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

(2) Net debt service outstanding divided bytotal claims paying resources

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter and Year Ended and as of December 31, 2002

	Quarter Ended December 31				Year Ended December 31
	2002		2001		2002		2001
	(Thousands of dollars, except ratios)
New insurance written-flow ($millions)	10,284		9,621		36,946		36,098
New insurance written-structured ($millions)	4,985		3,438		11,821		8,656
Total primary new insurance written	15,269		13,059		48,767		44,754
Primary risk written ($millions)	3,728		3,197		12,063		10,975
Pool risk written ($millions)	25		140		174		255
Direct claims paid ($thousands)
Prime	23,995		18,579		89,095		64,155
Non-prime:
Alt A	8,547		2,296		27,281		5,883
A Minus and below	11,283		5,339		32,114		19,083
Seconds	3,705		5,442		16,502		8,570
Total	47,530		31,656		164,992		97,691
Statutory loss ratio	36.5	%	28.3	%	30.4	%	30.2	%
Statutory expense ratio	24.9	%	20.5	%	22.5	%	20.4	%
	61.4	%	48.8	%	52.9	%	50.6	%
Persistency (twelve months ended December 31)	57.0	%	63.3	%
Percentage of primary new insurance written:
Monthlies	81	%	98	%	92	%	96	%
Refinances	50	%	44	%	41	%	40	%
95% LTV and above	34	%	37	%	38	%	38	%
ARMs	24	%	26	%	21	%	20	%
	December 31 2002		December 31 2001
Direct primary insurance in force ($millions)	110,273		107,918
Direct primary risk in force ($millions)	26,273		26,004
GSE pool risk in force ($millions)	1,218		1,222
Total pool risk in force ($millions)	1,732		1,571
Primary insurance:
Prime
Number of insured loans	698,910		752,519
Number of loans in default	21,483		23,312
Percentage of loans in default	3.07%		3.10%
Non-prime
Alt A
Number of insured loans	102,839		59,778
Number of loans in default	5,300		2,666
Percentage of loans in default	5.15%		4.46%
A Minus and below
Number of insured loans	79,871		79,396
Number of loans in default	9,005		5,038
Percentage of loans in default	11.27%		6.35%
Total prime and non-prime
Number of insured loans	881,620		891,693
Number of loans in default	35,788		31,016
Percentage of loans in default	4.06%		3.48%
Pool insurance:
Number of insured loans	593,405		869,226
Number of loans in default	6,554		8,213
Percentage of loans in default	1.10%		0.94%
Risk to capital ratio	11.5:1		14.1:1