Radian (RDN) 8-K Radian Reports First Quarter 2003 Earnings of $104.8 Million

EXHIBIT 99

Contact:

For investors	—	Mona Zeehandelaar – phone: 215 231.1674 email:mona.zeehandelaar@radianmi.com
For the media	—	Emily Riley – phone: 215 231.1328 email:emily.riley@radianmi.com

Radian Reports First Quarter 2003 Earnings of $104.8 Million

PHILADELPHIA, Pa., April 16, 2003 — Radian Group Inc. (NYSE: RDN) today reported net income of $104.8 million for the first quarter of 2003, compared to $103.9 million in the first quarter of 2002. Net income per share was $1.11, compared to $1.08 in the first quarter of 2002.

Premiums written in the first quarter were $252.4 million, up 12% compared to $224.6 million in the first quarter of 2002. Mortgage insurance accounted for 65% of this total, while financial guaranty business represented 35%. Premiums earned in the first quarter were $226.1 million, an increase of 8% compared to $209.2 million in 2002. Net investment income for the quarter was $46.7 million, up from $42.8 million a year ago.

“In a challenging environment, Radian’s businesses delivered fundamental growth,” said Chairman and Chief Executive Officer Frank P. Filipps. “Our solid performance demonstrates the strength of our brand and focus on our diversified business strategy, and we remain committed to maintaining a strong, flexible balance sheet.”

Financial Guaranty

Financial guaranty net premiums written for the quarter were $87.6 million, compared to $62.6 million a year ago, which was led by significant new writings in the public finance reinsurance and structured product areas. Net premiums earned were $58.1 million, compared to $40.2 million last year. Insured net debt service outstanding at December 31, 2002 was $109.0 billion, compared to $100.3 billion a year ago.

Mortgage Insurance

New primary mortgage insurance written in the quarter was $21.3 billion, including $10.7 billion of structured mortgage insurance, compared to $13.9 billion in the first quarter of 2002. Primary mortgage insurance-in-force was $119.0 billion at March 31, 2002, compared to $111.3 billion a year ago. The delinquency rate on primary loans was 3.85%, compared to 4.06% at December 31, 2002, and 3.39% a year ago.

Mortgage Services

Net income per share for the fourth quarter included $0.09 per share from Radian’s mortgage services businesses, primarily C-BASS and Sherman Financial, compared to $0.11 per share for the same period last year.

Radian will hold a conference call to discuss the company’s first quarter results on Thursday, April 17, 2003, at 9:00 a.m. Eastern time. This call will be broadcast live over the Internet athttp://www.firstcallevents.com/service/ajwz377468085gf12.html. A replay of the call will be available at this site approximately two hours after the live broadcast ends. Other statistical and financial information that is expected to be referred to during the conference call is available on Radian’s website athttp://www.radiangroupinc.com/RadianGroup/grp_invest_conf.asp

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: changes in the business practices of Fannie Mae and Freddie Mac; general economic developments such as extended national or regional economic recessions (or expansions), changes in housing values, interest rate

changes or volatility; changes in investor perception of the strength of private mortgage insurers or financial guaranty providers, and risks faced by the businesses, municipalities or pools of assets covered by Radian’s insurance; the loss of significant customers with whom Radian has a concentration of its insurance in force; the potential for more severe or more frequent losses associated with certain Radian products that are riskier than traditional mortgage insurance and municipal guaranty insurance policies; material changes in persistency rates of Radian’s mortgage insurance policies; downgrades of the insurance financial-strength ratings assigned by the major ratings agencies to Radian’s operating subsidiaries; intense competition from others and from alternative products to private mortgage insurance and financial guaranty insurance; legislative and regulatory changes affecting demand for private mortgage insurance and financial guaranty insurance; changes in claims against mortgage insurance products resulting from the aging of Radian’s mortgage insurance policies; and changes in Radian’s ability to maintain sufficient reinsurance capacity in an increasingly concentrated reinsurance market. Investors are also directed to other risks discussed in documents filed by Radian with the Securities and Exchange Commission.

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Radian Group Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

	March 31		December 31		March 31
(Thousands of dollars, except share data)	2003		2002		2002
Assets:
Cash and investments	$	4,569,608	$	4,222,296	$	3,738,487
Investments in affiliates		253,027		259,120		203,197
Deferred policy acquisition costs		195,481		183,587		157,924
Prepaid federal income taxes		280,236		294,136		326,514
Other assets		490,555		434,266		406,634
Total assets	$	5,788,907	$	5,393,405	$	4,832,756
Liabilities and stockholders’ equity:
Unearned premiums	$	643,904	$	618,050	$	528,041
Reserve for losses		632,896		624,577		593,685
Short-term and long-term debt		717,237		544,145		544,093
Deferred federal income taxes		604,545		570,279		457,576
Other liabilities		358,007		282,919		258,578
Total liabilities		2,956,589		2,639,970		2,381,973
Preferred stock	$	—	$	—		40,000
Common stock		95		95		95
Additional paid-in capital		1,176,320		1,186,830		1,215,529
Retained earnings		1,611,036		1,508,138		1,194,803
Accumulated other comprehensive income		44,867		58,372		356
Total common stockholders’ equity		2,832,318		2,753,435		2,410,783
Total liabilities and stockholders’ equity	$	5,788,907	$	5,393,405	$	4,832,756
Book value per share	$	30.36	$	29.42	$	25.53

Radian Group Inc. and Subsidiaries

Condensed Consolidated Statements of Income

	Quarter Ended March 31
	2003			2002
(Thousands of dollars, except share data)
Revenues:
Net premiums written	$	252,360		$	224,638
Premiums earned		226,129			209,189
Net investment income		46,672			42,753
Equity in net income of affiliates		14,888			18,620
Other income		14,557			11,282
Total revenues		302,246			281,844
Expenses:
Provision for losses		67,758			57,427
Policy acquisition costs		31,017			23,447
Other operating expenses		44,441			44,745
Interest expense		8,584			7,154
Total expenses		151,800			132,773
Gains and losses:
Net gains on disposition of investments		4,025			621
Change in fair value of derivative instruments		(7,898	)		(3,242	)
Net gain and losses		(3,873	)		(2,621	)
Pretax income		146,573			146,450
Provision for income taxes		41,801			42,517
Net income	$	104,772		$	103,933
Dividends to preferred stockholder		0			825
Net income available to common stockholders	$	104,772		$	103,108
Net income per share	$	1.11		$	1.08
Weighted average shares outstanding (in thousands)		94,297			95,881

Radian Group Inc. and Subsidiaries

Segment Information

Quarter Ended March 31, 2003

(Thousands of dollars)	Mortgage Insurance			Mortgage Services		Financial Guaranty			Total
Net premiums written	$	164,772				$	87,588		$	252,360
Premiums earned	$	168,032				$	58,097		$	226,129
Net investment income		27,829		$	34		18,809			46,672
Equity in net income (loss) of affiliates		—			14,944		(56	)		14,888
Other income		6,599			6,361		1,597			14,557
Total revenues		202,460			21,339		78,447			302,246
Expenses
Provision for losses		54,167			—		13,591			67,758
Policy acquisition costs		17,479			—		13,538			31,017
Other operating expenses		29,408			7,161		7,872			44,441
Interest expense		5,100			612		2,872			8,584
Total expenses		106,154			7,773		37,873			151,800
Gains and losses
Net gains on disposition of investments		390			119		3,516			4,025
Change in fair value of derivative instruments		(3,584	)		—		(4,314	)		(7,898	)
Net gain and losses		(3,194	)		119		(798	)		(3,873	)
Pretax income		93,112			13,685		39,776			146,573
Income tax provision		25,454			5,474		10,873			41,801
Net income	$	67,658		$	8,211	$	28,903		$	104,772
Assets	$	3,590,043		$	253,591	$	1,945,273		$	5,788,907
Deferred policy acquisition costs		74,931					120,550			195,481
Reserve for losses		484,069					148,827			632,896
Unearned premiums		108,592					535,312			643,904
Equity		1,682,784			201,884		947,650			2,832,318

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter Ended and as of March 31, 2003

(Thousands of dollars, except ratios)	Quarter Ended March 31
	2003		2002
New insurance written-flow ($millions)	10,589		9,059
New insurance written-structured ($millions)	10,687		4,804
Total primary new insurance written	21,276		13,863
Primary risk written ($millions)	5,384		3,591
Pool risk written ($millions)	63		86
Direct claims paid ($thousands)
Prime	24,064		20,026
Non-Prime:
Alt A	8,608		4,639
A Minus and below	13,935		6,339
Seconds	6,706		5,965
Total	53,313		36,969
Average claim paid	25.0		26.5
Loss ratio – GAAP Basis	32.2	%	26.7	%
Expense ratio – GAAP Basis	27.9	%	26.3	%
	60.1	%	53.0	%
Persistency (twelve months ended March 31)	56.5	%	59.5	%
Percentage of primary new insurance written:
Monthlies	94	%	99	%
Refinances	55	%	39	%
95% LTV and above	14	%	37	%
ARMs	49	%	19	%
	March 31 2003		December 31 2002		March 31 2002
Direct primary insurance in force ($millions)	119,036		110,273		111,297
Direct primary risk in force ($millions)	27,302		26,273		26,715
GSE pool risk in force ($millions)	1,215		1,218		1,224
Total pool risk in force ($millions)	1,860		1,732		1,723
Primary insurance:
Prime
Number of insured loans	690,647		698,910		763,990
Number of loans in default	20,452		21,483		20,244
Percentage of loans in default	2.96	%	3.07	%	2.65	%
Non-Prime:
Alt A
Number of insured loans	109,907		102,839		74,085
Number of loans in default	4,844		5,300		3,240
Percentage of loans in default	4.41	%	5.15	%	4.37	%
A Minus and below
Number of insured loans	107,181		79,871		70,532
Number of loans in default	9,694		9,005		7,353
Percentage of loans in default	9.04	%	11.27	%	10.43	%
Total Prime and Non-Prime
Number of insured loans	907,735		881,620		908,607
Number of loans in default	34,990		35,788		30,837
Percentage of loans in default	3.85	%	4.06	%	3.39	%
Pool insurance:
Number of insured loans	599,255		593,405		792,059
Number of loans in default	6,040		6,554		7,752
Percentage of loans in default	1.01	%	1.10	%	0.98	%
Risk to capital ratio	11.6:1		11.5:1		13.7:1

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter Ended and as of March 31, 2003

(Thousands of dollars, except ratios)	Quarter Ended March 31
	2003		2002
Net Premiums Written:
Public direct	10,268		14,584
Public reinsurance	23,531		15,982
Structured direct	17,810		8,015
Structured reinsurance	14,368		15,714
Trade credit	21,611		8,281
	87,588		62,576
Net Premiums Earned:
Public direct	3,887		3,519
Public reinsurance	11,078		7,665
Structured direct	18,412		6,555
Structured reinsurance	12,283		15,040
Trade credit	12,437		7,371
	58,097		40,150
Loss ratio	23.4	%	30.7	%
Expense ratio	36.9	%	41.3	%
	60.3	%	72.0	%
Refundings included in earned premium	1,609		639
	March 31		December 31		March 31
	2003		2002		2002
Capital and surplus	638,619		581,185		485,746
Contingency reserve	299,373		319,648		327,357
Qualified statutory capital	937,992		900,833		813,103
Unearned premium reserve	637,106		604,942		521,931
Loss and loss expense reserve	89,057		84,096		63,719
Total policyholders’ reserves	1,664,155		1,589,871		1,398,753
Present value of installment premiums	433,751		400,140		363,843
Reinsurance and soft capital facilities	125,000		165,000		155,000
Total claims paying resources	2,222,906		2,155,011		1,917,596
Net debt service outstanding	108,985,797		104,755,801		100,330,870
Capital leverage ratio (1)	116		116		123
Claims paying leverage ratio (2)	49		49		52

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

(2) Net debt service outstanding divided by total claims paying resources