Radian (RDN) 8-K Radian Reports Quarterly Earnings of $114.0 Million

EXHIBIT 99

Contact:

For investors – Mona Zeehandelaar –phone: 215 231.1674

email:mona.zeehandelaar@radianmi.com

For the media – Elizabeth Emmons –phone: 215 231.1334

email:elizabeth.emmons@radianmi.com

Radian Reports Quarterly Earnings of $114.0 Million

PHILADELPHIA, Pa., October 15, 2003—Radian Group Inc. (NYSE: RDN) today reported net income of $114.0 million for the third quarter of 2003, compared to $106.6 million in the third quarter of 2002. Net income per share was $1.20 in the third quarter of 2003, compared to $1.07 in the third quarter of 2002. For the first nine months of 2003, net income and net income per share were $330.4 million and $3.50 respectively, compared to $319.4 million and $3.27 in 2002.

Premiums written in the third quarter were $285.5 million, up 22% compared to $234.6 million in the third quarter of 2002. Mortgage insurance accounted for 68% of this total, while financial guaranty business represented 32%. Premiums earned in the third quarter were $261.0 million, an increase of 25% compared to $209.5 million in 2002. Net investment income for the quarter was $46.4 million, up 2% from $45.5 million a year ago. For the first nine months of 2003, premiums written increased 16% to $811.8 million, premiums earned increased 18% to $742.2 million and net investment income grew 5% from the prior year, to $140.0 million.

“Radian’s focus on risk expertise and capital allocation have helped us navigate through some challenging times, while still achieving strong earnings and shareholder returns,” stated Chairman and Chief Executive Officer Frank P. Filipps. “We consider these operating principles to be critical to the continued success of our organization and to the execution of our diversification strategy.”

Financial Guaranty

Financial guaranty net premiums written for the quarter were $90.2 million, compared to $72.1 million a year ago, which was led by significant new writings in public finance direct and reinsurance areas. Net premiums earned were $61.3 million, compared to $47.4 million last year. Insured net debt service outstanding at September 30, 2003 was $116.2 billion, compared to $103.0 billion a year ago.

Mortgage Insurance

New primary mortgage insurance written in the quarter was $16.3 billion, including $2.0 billion of structured and $14.3 of flow mortgage insurance. Primary mortgage insurance-in-force was $121.3 billion at September 30, 2003, compared to $109.4 billion a year ago. The delinquency rate on primary loans was 4.29%, compared to 4.06% at December 31, 2002, and 3.83% a year ago.

Mortgage Services

Net income per share for the second quarter included $0.11 per share from Radian’s mortgage services businesses, primarily C-BASS and Sherman Financial, compared to $0.06 per share for the same period last year.

Radian will hold a conference call to discuss the company’s third quarter results on Thursday, October 16, 2003, at 9:00 a.m. Eastern time. This call will be broadcast live over the Internet atwww.firstcallevents.com/service/ajwz389381952gf12.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 under “Investor Information—Conference Calls” or can be accessed by clicking onwww.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 atwww.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 Statements of Income

	Quarter Ended September 30					Nine Months Ended September 30
	2003		2002			2003			2002
(Thousands of dollars, except share data)
Revenues:
Net premiums written	$	285,517	$	234,614		$	811,773		$	696,862
Premiums earned		261,043		209,512			742,184			629,732
Net investment income		46,365		45,503			140,041			132,741
Equity in net income of affiliates		21,287		12,994			70,034			58,387
Other income		18,489		8,200			48,449			30,448
Total revenues		347,184		276,209			1,000,708			851,308
Expenses:
Provision for losses		100,762		57,923			264,060			172,926
Policy acquisition costs		33,787		24,716			96,172			73,765
Other operating expenses		51,423		39,043			152,429			128,288
Interest expense		9,652		7,177			27,888			21,571
Total expenses		195,624		128,859			540,549			396,550
Gains and losses:
Gain/Loss on sales of investments		1,778		5,685			8,627			8,768
Change in fair value of derivative instruments		6,072		(5,090	)		(6,655	)		(14,096	)
Net gains and losses		7,850		595			1,972			(5,328	)
Pretax income		159,410		147,945			462,131			449,430
Provision for income taxes		45,432		41,384			131,707			130,014
Net income	$	113,978	$	106,561		$	330,424		$	319,416
Dividends to preferred stockholder		0		825			0			2,475
Premium paid to redeem preferred stock		0		3,003			0			3,003
Net income available to common stockholders	$	113,978	$	102,733		$	330,424			313,938
Net income per share	$	1.20	$	1.07		$	3.50		$	3.27
Weighted average shares outstanding (in thousands)		94,886		96,035			94,514			96,101

Radian Group Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(Thousands of dollars, except share data)	September 30 2003		December 31 2002		September 30 2002
Assets:
Cash and investments	$	4,845,309	$	4,222,296	$	4,125,314
Investments in affiliates		300,465		259,120		235,324
Deferred policy acquisition costs		212,078		183,587		179,837
Prepaid federal income taxes		322,711		294,136		287,900
Other assets		472,831		434,266		402,514
Total assets	$	6,153,394	$	5,393,405	$	5,230,889
Liabilities and stockholders’ equity:
Unearned premiums	$	684,931	$	618,050	$	576,851
Reserve for losses		669,046		624,577		612,437
Short-term and long-term debt		717,347		544,145		544,127
Deferred federal income taxes		684,310		570,279		554,300
Other liabilities		274,879		282,919		274,628
Total liabilities		3,030,513		2,639,970		2,562,343
Common stock		95		95		95
Additional paid-in capital		1,186,481		1,186,830		1,194,935
Retained earnings		1,832,950		1,508,138		1,402,180
Accumulated other comprehensive income		103,355		58,372		71,336
Total common stockholders’ equity		3,122,881		2,753,435		2,668,546
Total liabilities and stockholder’s equity	$	6,153,394	$	5,393,405	$	5,230,889
Book value per share	$	33.35	$	29.42	$	28.44

Radian Group Inc. and Subsidiaries

Segment Information

For the Quarter and Nine Months Ended September 30, 2003

Financial Guaranty	Quarter Ended September 30					Nine Months Ended September 30
(Thousands of dollars)	2003		2002			2003			2002
Net premiums written	$	90,157	$	72,130		$	261,414		$	207,988
Premiums earned	$	61,256	$	47,373		$	184,647		$	130,681
Net investment income		19,739		18,388			58,797			52,758
Equity in net income of affiliates		2,149		(510	)		7,607			(529	)
Other income		251		251			3,010			1,082
Total revenues		83,395		65,502			254,061			183,992
Expenses
Provision for losses		18,688		10,842			51,782			33,429
Policy acquisition costs		15,413		7,612			42,875			23,764
Other operating expenses		9,635		6,569			27,821			23,061
Interest expense		3,376		2,532			9,477			7,265
Total expenses		47,112		27,555			131,955			87,519
Gains and losses
Gain/Loss on sales of investments		2,020		3,122			8,922			2,033
Change in fair value of derivative instruments		6,644		(2,966	)		(6,084	)		(7,658	)
Net gains and losses		8,664		156			2,838			(5,625	)
Pretax income		44,947		38,103			124,944			90,848
Income tax provision		12,328		10,368			33,846			24,979
Net income	$	32,619	$	27,735		$	91,098		$	65,869
Assets	$	2,174,838	$	1,838,600
Deferred policy acquisition costs		135,234		101,550
Reserve for losses		169,463		133,280
Unearned premiums		580,867		482,228
Equity		1,128,447		898,787

Radian Group Inc. and Subsidiaries

Segment Information

For the Quarter and Nine Months Ended September 30, 2003

Mortgage Insurance	Quarter Ended September 30						Nine Months Ended September 30
(Thousands of dollars)	2003			2002			2003			2002
Net premiums written	$	195,360		$	162,484		$	550,359		$	488,874
Premiums earned	$	199,787		$	162,139		$	557,537		$	499,051
Net investment income		26,626			27,068			81,208			79,882
Equity in net income of affiliates		—			—			—			—
Other income		10,729			5,570			25,145			13,980
Total revenues		237,142			194,777			663,890			592,913
Expenses
Provision for losses		82,074			47,081			212,278			139,497
Policy acquisition costs		18,374			17,103			53,297			50,001
Other operating expenses		33,846			25,182			96,442			81,236
Interest expense		5,403			4,121			16,065			12,796
Total expenses		139,697			93,487			378,082			283,530
Gains and losses
Gain/Loss on sales of investments		506			750			1,371			4,133
Change in fair value of derivative instruments		(580	)		(2,124	)		(606	)		(6,438	)
Net gains and losses		(74	)		(1,374	)		765			(2,305	)
Pretax income		97,371			99,916			286,573			307,078
Income tax provision		26,256			27,045			77,614			84,432
Net income	$	71,115		$	72,871		$	208,959		$	222,646
Assets	$	3,692,010		$	3,163,479
Deferred policy acquisition costs		76,844			78,287
Reserve for losses		499,583			479,157
Unearned premiums		104,064			94,624
Equity		1,760,328			1,583,019

Radian Group Inc. and Subsidiaries

Segment Information

For the Quarter and Nine Months Ended September 30, 2003

Mortgage Services	Quarter Ended September 30					Nine Months Ended September 30
(Thousands of dollars)	2003			2002		2003			2002
Net premiums written	$	—		$	—	$	—		$	—
Premiums earned	$	—		$	—	$	—		$	—
Net investment income		—			47		36			101
Equity in net income of affiliates		19,138			13,503		62,427			58,916
Other income		7,509			2,380		20,294			15,386
Total revenues		26,647			15,930		82,757			74,403
Expenses
Provision for losses		—			—		—			—
Policy acquisition costs		—			—		—			—
Other operating expenses		7,942			7,292		28,166			23,991
Interest expense		873			525		2,346			1,510
Total expenses		8,815			7,817		30,512			25,501
Gains and losses
Gain/Loss on sales of investments		(748	)		1,813		(1,666	)		2,602
Change in fair value of derivative instruments		8			—		35			—
Net gains and losses		(740	)		1,813		(1,631	)		2,602
Pretax income		17,092			9,926		50,614			51,504
Income tax provision		6,848			3,971		20,247			20,603
Net income	$	10,244		$	5,955	$	30,367		$	30,901
Assets	$	286,546		$	228,810
Deferred policy acquisition costs		—			—
Reserve for losses		—			—
Unearned premiums		—			—
Equity		234,106			186,740

Radian Group Inc.

Financial Guaranty Insurance Supplemental Information

For the Quarter and Nine Months Ended and as of September 30, 2003

(Thousands of dollars, except ratios)	Quarter Ended September 30				Nine Months Ended September 30
	2003		2002		2003		2002
Net Premiums Written:
Public direct	21,570		12,907		43,118		43,447
Public reinsurance	19,380		11,035		66,930		34,229
Structured direct	24,743		21,907		62,445		51,591
Structured reinsurance	10,749		13,188		38,481		44,158
Trade credit	13,715		13,094		50,440		34,564
	90,157		72,131		261,414		207,989
Net Premiums Earned:
Public direct	4,799		3,947		13,074		10,780
Public reinsurance	13,802		9,894		37,655		28,399
Structured direct	17,119		12,020		55,593		27,519
Structured reinsurance	11,282		13,639		36,631		41,244
Trade credit	14,254		7,873		41,694		22,739
	61,256		47,373		184,647		130,681
Claims paid:
Trade credit	7,274		3,903		15,595		11,062
Other	4,708		1,408		6,530		12,771
Total	11,982		5,311		22,126		23,833
Incurred losses:
Trade credit	9,440		5,733		23,538		22,597
Other	9,248		5,109		28,244		10,832
Total	18,688		10,842		51,782		33,429
Loss ratio  –  GAAP Basis	30.5	%	22.9	%	28.0	%	25.6	%
Expense ratio  –  GAAP Basis	40.9	%	29.9	%	38.3	%	35.8	%
	71.4	%	52.8	%	66.3	%	61.4	%
Refundings included in earned premium	1,400		941		6,305		4,844
	September 30 2003		December 31 2002		September 30 2002
Capital and surplus	798,354		581,185		498,896
Contingency reserve	307,697		319,648		343,615
Qualified statutory capital	1,106,051		900,833		842,511
Unearned premium reserve	690,525		604,942		579,758
Loss and loss expense reserve	83,556		84,096		77,044
Total policyholders’ reserves	1,880,132		1,589,871		1,499,313
Present value of installment premiums	438,750		400,140		407,457
Reinsurance and soft capital facilities	275,000		165,000		155,000
Total claims paying resources	2,593,882		2,155,011		2,061,770
Net debt service outstanding	116,241,337		104,755,801		103,048,831
Capital leverage ratio (1)	105		116		122
Claims paying leverage ratio (2)	45		49		50

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

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

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter and Nine Months Ended and as of September 30, 2003

(Thousands of dollars, except ratios)	Quarter Ended September 30				Nine Months Ended September 30
	2003		2002		2003		2002
New insurance written-flow ($millions)	14,311		9,099		38,167		26,661
New insurance written-structured ($millions)	1,958		389		17,503		6,836
Total primary new insurance written	16,269		9,488		55,670		33,497
Primary risk written ($millions)	3,863		2,243		13,796		8,335
Pool risk written ($millions)	88		28		654		149
Direct claims paid ($thousands)
Prime	32,411		20,975		88,746		65,100
Non-Prime:
Alt A	15,072		8,117		35,771		18,733
A Minus and below	19,175		7,902		50,279		20,832
Seconds	4,561		4,248		17,602		12,797
Total	71,219		41,242		192,398		117,462
Average claim paid	27.2		25.3		26.7		26.0
Loss ratio  –  GAAP Basis	41.1	%	29.0	%	38.1	%	28.0	%
Expense ratio  –  GAAP Basis	26.1	%	26.1	%	26.8	%	26.3	%
	67.2	%	55.1	%	64.9	%	54.2	%
Persistency (twelve months ended September 30)	46.1	%	58.8	%
Percentage of primary new insurance written:
Monthlies	80	%	96	%	87	%	97	%
Refinances	48	%	33	%	53	%	36	%
95% LTV and above	26	%	44	%	20	%	40	%
ARMs	15	%	18	%	31	%	20	%
	September 30 2003		December 31 2002		September 30 2002
Direct primary insurance in force ($millions)	121,334		110,273		109,363
Direct primary risk in force ($millions)	27,187		26,273		26,181
GSE pool risk in force ($millions)	1,391		1,218		1,220
Total pool risk in force ($millions)	2,394		1,732		1,720
Other risk in force	961		463		381
Primary insurance:
Prime
Number of insured loans	663,870		698,910		723,322
Number of loans in default	21,232		21,483		20,427
Percentage of loans in default	3.20	%	3.07	%	2.82	%
Non-Prime:
Alt A
Number of insured loans	128,278		102,839		86,576
Number of loans in default	5,832		5,300		4,767
Percentage of loans in default	4.55	%	5.15	%	5.51	%
A Minus and below
Number of insured loans	112,498		79,871		71,929
Number of loans in default	11,768		9,005		8,548
Percentage of loans in default	10.46	%	11.27	%	11.88	%
Total Prime and Non-Prime
Number of insured loans	904,646		881,620		881,827
Number of loans in default	38,832		35,788		33,742
Percentage of loans in default	4.29	%	4.06	%	3.83	%
Pool insurance:
Number of insured loans	595,833		593,405		705,373
Number of loans in default	5,440		6,554		6,875
Percentage of loans in default	0.91	%	1.10	%	0.97	%
Risk to capital ratio	11.7:1		11.5:1		11.9:1