Radian (RDN) 8-K Radian Reports Third Quarter Net Income of $112 Million

Exhibit 99.1

1601 Market Street Philadelphia, Pennsylvania 19103-2337 800 523.1988 215 564.6600 News Release

Contact:

For investors:	Mona Zeehandelaar – phone: 215 231.1674
	email:mona.zeehandelaar@radian.biz
For the media:	Corporate Communications – 888 NEWS 520
	email:media@radian.biz

Radian Reports Third Quarter Net Income of $112 Million

Company grew book value per share by 14% from year earlier and nine-month diluted net income per share by 10.1%

PHILADELPHIA, Pa., October 18, 2006 — Radian Group Inc. (NYSE: RDN) today reported results for the quarter ended September 30, 2006, with net income of $112 million and diluted net income per share of $1.36. Book value per share at September 30, 2006, was $49.11, an increase of 14% from a year earlier.

For the nine months ended September 30, 2006, Radian reported net income of $424 million, up from a year earlier, and diluted net income per share of $5.12, an increase of 10.1%.

“While our results for the quarter were affected by additions to loss reserves for our mortgage insurance business, I am pleased with the strong performance we achieved in the first nine months of the year, with double-digit increases in diluted earnings per share and book value per share,” said Chief Executive Officer S.A. Ibrahim. “We remain disciplined in our approach to risk and capital management, and are focused on delivering long-term value.”

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Mr. Ibrahim said the addition to loss reserves for the mortgage insurance business was attributable to several factors, including new delinquencies, an aging of existing delinquencies, and an increase in severity due primarily to larger average loan balances.

Regarding the mortgage insurance business, Radian said it continued to experience good flow volume, which is benefiting from positive cyclical trends, including stable interest rates and increased MI penetration. The company added that it did less structured business in the quarter, reflecting market conditions and the tight-spread environment.

The company’s financial guaranty business continued to perform well in a difficult environment, further demonstrating the viability of its double-A franchise.

In the Financial Services segment both C-BASS and Sherman continued to be important and steady contributors to Radian’s results.

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The key financial highlights of the quarter and nine months ended September 30, 2006, are as follows:

Key Financial Highlights (dollars in millions, except per share data)

Third quarter

	Quarter ended September 30, 2006		Quarter ended September 30, 2005		Percent Change
Revenue	$	321,831	$	382,622	(15.9	)%
Net income	$	111,959	$	162,557	(31.1	)%
Diluted net income per share	$	1.36	$	1.88	(27.7	)%
Net premiums written	$	254,805	$	313,908	(18.8	)%
Net premiums earned	$	254,144	$	265,636	(4.3	)%
Equity in net income of affiliates	$	55,870	$	46,772	19.5	%
Book value per share	$	49.11	$	43.08	14.0	%

Nine months

	Nine Months Ended September 30, 2006		Nine Months Ended September 30, 2005		Percent Change
Revenue	$	980,062	$	999,510	(1.9	)%
Net income	$	423,802	$	418,393	1.3	%
Diluted net income per share	$	5.12	$	4.65	10.1	%
Net premiums written	$	833,285	$	827,966	0.6	%
Net premiums earned	$	766,927	$	756,639	1.4	%
Equity in net income of affiliates	$	186,248	$	161,946	15.0	%

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Radian will hold a conference call on Thursday, October 19, 2006, at 9:00 a.m. Eastern time to discuss the company’s third quarter 2006 results. This call will be broadcast live over the Internet athttp://www.ir.radian.biz/phoenix.zhtml?c=112301&p=irol-audioarchives or athttp://www.radian.biz > News. A replay of the webcast will be available at this site approximately two hours after the live broadcast ends for a period of one year.

Statistical and financial information which is expected to be referred to during the conference call will be available on Radian’s website under Investors > Webcasts, Presentations and Transcripts or by clicking onhttp://www.ir.radian.biz/phoenix.zhtml?c=112301&p=irol-audioarchives.

Radian will hold an Investor Day on Thursday, November 9, 2006, in Philadelphia. A webcast of the event will be broadcast live over the Internet at www.radian.biz.

Radian Group Inc. is a global credit risk management company headquartered in Philadelphia with significant operations in both New York and London. Radian develops innovative financial solutions by applying its core mortgage credit risk expertise and structured finance capabilities to the credit enhancement needs of the capital markets worldwide, primarily through credit insurance products. The company also provides credit enhancement for public finance and other corporate and consumer assets on both a direct and reinsurance basis and holds strategic interests in active credit-based consumer asset businesses. Additional information may be found atwww.radian.biz.

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Financial Results and Supplemental Information Contents

For trend information on all schedules, refer to Radian’s quarterly financial statistics athttp://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 September 30, 2006
Exhibit D:	Segment Information Quarter Ended September 30, 2005
Exhibit E:	Segment Information Nine Months Ended September 30, 2006
Exhibit F:	Segment Information Nine Months Ended September 30, 2005
Exhibit G:	Financial Guaranty Insurance Supplemental Information – Quarter and Nine Months Ended and as of September 30, 2006
Exhibit H:	Financial Guaranty Insurance Supplemental Information – Quarter and Nine Months Ended and as of September 30, 2006
Exhibit I:	Mortgage Insurance Supplemental Information: New Insurance Written and Risk Written
Exhibit J:	Mortgage Insurance Supplemental Information: Insurance in Force and Risk in Force
Exhibit K:	Mortgage Insurance Supplemental Information: Risk in Force by LTV and Policy Year and Other Risk in Force
Exhibit L:	Mortgage Insurance Supplemental Information: Claims and Reserves
Exhibit M:	Mortgage Insurance Supplemental Information: Defaults
Exhibit N:	Mortgage Insurance Supplemental Information: Net Premiums Written and Earned, Smart Home, Captives and Persistency
Exhibit O:	Mortgage Insurance Supplemental Information: ALT A
Exhibit P:	Financial Services Supplemental Information

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Radian Group Inc. and Subsidiaries

Condensed Consolidated Statements of Income

Exhibit A

	Quarter Ended September 30				Nine Months Ended September 30
(In thousands, except per-share data)	2006		2005		2006			2005
Revenues:
Net premiums written	$	254,805	$	313,908	$	833,285		$	827,966
Net premiums earned	$	254,144	$	265,636	$	766,927		$	756,639
Net investment income		60,185		53,253		174,123			154,119
Net gains on securities		1,409		5,194		29,587			25,443
Change in fair value of derivative instruments		626		53,274		(7,031	)		45,301
Other income		5,467		5,265		16,456			18,008
Total revenues		321,831		382,622		980,062			999,510
Expenses:
Provision for losses		121,395		92,441		284,889			285,768
Policy acquisition costs		26,351		27,927		80,535			88,355
Other operating expenses		62,706		58,931		181,082			163,019
Interest expense		11,515		12,167		35,893			31,103
Total expenses		221,967		191,466		582,399			568,245
Equity in net income of affiliates		55,870		46,772		186,248			161,946
Pretax income		155,734		237,928		583,911			593,211
Provision for income taxes		43,775		75,371		160,109			174,818
Net income	$	111,959	$	162,557	$	423,802		$	418,393
Diluted net income per share (1)	$	1.36	$	1.88	$	5.12		$	4.65
_________ (1)    Net income per share reconciliation
Net income	$	111,959	$	162,557	$	423,802		$	418,393
Interest expense on convertible senior debentures (net of tax)		—		267		—			1,871
Net income available to common stockholders	$	111,959	$	162,824	$	423,802		$	420,264
Weighted average shares outstanding (in thousands)
Average common shares outstanding		81,233		84,567		81,995			86,507
Increase in shares-potential exercise of options-diluted basis		817		860		754			895
Increase in shares-contingently convertible debt (2)		—		1,266		—			2,954
Weighted average shares outstanding (in thousands)		82,050		86,693		82,749			90,356

(2) The 2005 period includes the impact of shares underlying convertible debt that was redeemed on August 1, 2005. The impact on diluted net income per share of including these shares in the calculation was a reduction of $0.03 per share for the quarter ended September 30, 2005 and $0.14 per share for the nine months ended September 30, 2005.

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

Page 1

Radian Group Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

Exhibit B

(In thousands, except share and per-share data)	September 2006			December 31 2005		September 2005
Assets:
Cash and investments	$	5,761,913		$	5,521,561	$	5,508,189
Investments in affiliates		560,570			446,151		398,054
Deferred policy acquisition costs		219,573			208,325		206,013
Prepaid federal income taxes		760,963			585,514		539,973
Other assets		434,302			469,059		446,068
Total assets	$	7,737,321		$	7,230,610	$	7,098,297
Liabilities and stockholders’ equity:
Unearned premiums	$	914,422		$	849,360	$	838,042
Reserve for losses and loss adjustment expenses		840,938			801,002		792,600
Long-term debt		747,692			747,466		747,393
Deferred federal income taxes		1,071,002			961,993		863,859
Other liabilities		196,234			207,909		281,388
Total liabilities		3,770,288			3,567,730		3,523,282
Common stock		97			97		97
Additional paid-in capital		489,389			629,019		634,901
Retained earnings		3,332,517			2,913,649		2,810,853
Accumulated other comprehensive income		145,030			120,115		129,164
Total common stockholders’ equity		3,967,033			3,662,880		3,575,015
Total liabilities and stockholders’ equity	$	7,737,321		$	7,230,610	$	7,098,297
Book value per share	$	49.11		$	44.11	$	43.08
Treasury Stock Repurchases (Year-to-Date for Periods Presented)
Total number of shares repurchased		3,000,000	(1)		10,767,800		10,344,500
Average price paid per share	$	60.85		$	49.58	$	49.21
Total cost of repurchased shares	$	182,548,056		$	533,888,969	$	509,094,714

(1) 1.0 million shares were repurchased in the 3rd quarter of 2006 at a cost of $60.6 million.

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Radian Group Inc. and Subsidiaries

Segment Information

Quarter Ended September 30, 2006

Exhibit C

(In thousands)	Mortgage Insurance			Financial Guaranty		Financial Services		Total
Revenues:
Net premiums written	$	205,933		$	48,872	$	—	$	254,805
Net premiums earned	$	201,432		$	52,712	$	—	$	254,144
Net investment income		35,548			24,589		48		60,185
Net gains on securities		946			8		455		1,409
Change in fair value of derivative instruments		(3,293	)		3,919		—		626
Other income		2,999			284		2,184		5,467
Total revenues		237,632			81,512		2,687		321,831
Expenses:
Provision for losses		119,616			1,779		—		121,395
Policy acquisition costs		15,271			11,080		—		26,351
Other operating expenses		43,933			16,039		2,734		62,706
Interest expense		6,357			3,961		1,197		11,515
Total expenses		185,177			32,859		3,931		221,967
Equity in net income of affiliates		—			—		55,870		55,870
Pretax income		52,455			48,653		54,626		155,734
Provision for income taxes		11,127			13,529		19,119		43,775
Net income	$	41,328		$	35,124	$	35,507	$	111,959
Assets	$	4,598,975		$	2,572,079	$	566,267	$	7,737,321
Deferred policy acquisition costs		71,691			147,882		—		219,573
Reserve for losses and loss adjustment expenses		651,249			189,689		—		840,938
Unearned premiums		246,033			668,389		—		914,422
Stockholders’ equity		2,232,606			1,339,627		394,800		3,967,033

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Radian Group Inc. and Subsidiaries

Segment Information

Quarter Ended September 30, 2005

Exhibit D

(In thousands)	Mortgage Insurance		Financial Guaranty			Financial Services			Total
Revenues:
Net premiums written	$	235,790	$	78,118		$	—		$	313,908
Net premiums earned	$	208,902	$	56,734		$	—		$	265,636
Net investment income		30,122		23,069			62			53,253
Net gains (losses) on securities		4,185		3,849			(2,840	)		5,194
Change in fair value of derivative instruments		11,675		41,617			(18	)		53,274
Other income		4,353		287			625			5,265
Total revenues		259,237		125,556			(2,171	)		382,622
Expenses:
Provision for losses		81,551		10,890			—			92,441
Policy acquisition costs		14,742		13,185			—			27,927
Other operating expenses		38,295		18,683			1,953			58,931
Interest expense		6,790		4,282			1,095			12,167
Total expenses		141,378		47,040			3,048			191,466
Equity in net income of affiliates		—		(374	)		47,146			46,772
Pretax income		117,859		78,142			41,927			237,928
Provision for income taxes		36,528		24,168			14,675			75,371
Net income	$	81,331	$	53,974		$	27,252		$	162,557
Assets	$	4,152,704	$	2,534,678		$	410,915		$	7,098,297
Deferred policy acquisition costs		67,327		138,686			—			206,013
Reserve for losses and loss adjustment expenses		580,964		211,636			—			792,600
Unearned premiums		216,603		621,439			—			838,042
Stockholders’ equity		1,963,433		1,311,582			300,000			3,575,015

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Radian Group Inc. and Subsidiaries

Segment Information

Nine Months Ended September 30, 2006

Exhibit E

(In thousands)	Mortgage Insurance		Financial Guaranty			Financial Services		Total
Revenues:
Net premiums written	$	646,749	$	186,536		$	—	$	833,285
Net premiums earned	$	612,808	$	154,119		$	—	$	766,927
Net investment income		103,363		70,627			133		174,123
Net gains on securities		18,207		8,895			2,485		29,587
Change in fair value of derivative instruments		1,830		(8,861	)		—		(7,031	)
Other income		10,108		618			5,730		16,456
Total revenues		746,316		225,398			8,348		980,062
Expenses:
Provision for losses		268,290		16,599			—		284,889
Policy acquisition costs		44,336		36,199			—		80,535
Other operating expenses		128,742		46,092			6,248		181,082
Interest expense		20,042		12,312			3,539		35,893
Total expenses		461,410		111,202			9,787		582,399
Equity in net income of affiliates		—		—			186,248		186,248
Pretax income		284,906		114,196			184,809		583,911
Provision for income taxes		72,262		23,164			64,683		160,109
Net income	$	212,644	$	91,032		$	120,126	$	423,802

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Radian Group Inc. and Subsidiaries

Segment Information

Nine Months Ended September 30, 2005

Exhibit F

(In thousands)	Mortgage Insurance			Financial Guaranty			Financial Services			Total
Revenues:
Net premiums written	$	672,298		$	155,668		$	—		$	827,966
Net premiums earned	$	597,031		$	159,608		$	—		$	756,639
Net investment income		87,016			67,015			88			154,119
Net gains (losses) on securities		17,957			9,449			(1,963	)		25,443
Change in fair value of derivative instruments		6,941			38,569			(209	)		45,301
Other income		14,624			870			2,514			18,008
Total revenues		723,569			275,511			430			999,510
Expenses:
Provision for losses		259,703			26,065			—			285,768
Policy acquisition costs		48,626			39,729			—			88,355
Other operating expenses		107,445			48,467			7,107			163,019
Interest expense		17,541			10,854			2,708			31,103
Total expenses		433,315			125,115			9,815			568,245
Equity in net income of affiliates		—			(361	)		162,307			161,946
Pretax income		290,254			150,035			152,922			593,211
Provision for income taxes		83,350			37,945			53,523			174,818
Net income	$	206,904		$	112,090	(1)	$	99,399		$	418,393	(1)
__________ (1)    Reflects a $4.1 million net loss from 1st quarter 2005 recapture of previously ceded business by one of the primary Financial Guaranty insurers (in millions):
	Incr/(Decr)
Net premiums earned	$	(4.6	)
Policy acquisition costs		1.7
Provision for income taxes		(2.2	)
Net loss	$	(4.1	)

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Radian Group Inc.

Financial Guaranty Supplemental Information

For the Quarter and Nine Months Ended and as of September 30, 2006

Exhibit G

	Quarter Ended September 30						Nine Months Ended September 30
($ in thousands, except ratios)	2006			2005			2006			2005
Net Premiums Written:
Public finance direct	$	11,191		$	22,539		$	49,598		$	51,285
Public finance reinsurance		13,844			23,374			60,539			61,354
Structured direct		19,520			19,872			59,126			52,288
Structured reinsurance		4,414			3,092			12,919			16,355
Trade credit reinsurance		(97	)		9,241			4,354			29,128
		48,872			78,118			186,536			210,410
Impact of recapture (1)		—			—			—			(54,742	)
Net Premiums Written	$	48,872		$	78,118		$	186,536		$	155,668
Net Premiums Earned:
Public finance direct	$	8,388		$	7,651		$	23,681		$	24,667
Public finance reinsurance		12,097			10,058			28,255			25,661
Structured direct		22,829			20,158			67,139			57,258
Structured reinsurance		5,479			4,544			15,762			15,563
Trade credit reinsurance		3,919			14,323			19,282			40,998
		52,712			56,734			154,119			164,147
Impact of recapture (2)		—			—			—			(4,539	)
Net Premiums Earned	$	52,712		$	56,734		$	154,119		$	159,608
Refundings included in earned premium	$	5,357		$	4,419		$	8,667		$	9,514
Claims paid:
Trade credit reinsurance	$	5,452		$	6,550		$	13,806		$	16,778
Other financial guaranty		472			1,015			7,281			12,932
Conseco		3,505			7,443			12,250			23,393
Total	$	9,429		$	15,008		$	33,337		$	53,103
Incurred losses:
Trade credit reinsurance	$	(2,173	)	$	7,120		$	5,021		$	14,433
Other financial guaranty		3,952			3,770			12,610			11,632
Conseco		—			—			(1,032	)		—
Total	$	1,779		$	10,890		$	16,599		$	26,065
Loss ratio- GAAP Basis		3.4	%		19.2	%		10.8	%		16.3	%
Expense ratio- GAAP Basis		51.4	%		56.2	%		53.4	%		55.3	%
		54.8	%		75.4	%		64.2	%		71.6	%
Net claims paid (received) under derivatives contracts	$	(1,136	)	$	(1,799	)	$	64,277		$	(6,175	)
__________           (1)    Reflects the impact on net premiums written of the first quarter 2005 recapture of previously ceded business by one of the primary Financial Guaranty insurers:
										(In thousands)
Public reinsurance											48,238
Structured reinsurance											6,504
(2)    Reflects the impact on net premiums earned of the first quarter 2005 recapture of previously ceded business by one of the primary Financial Guaranty insurers:
										(In thousands)
Public reinsurance											3,870
Structured reinsurance											669

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Radian Group Inc.

Financial Guaranty Supplemental Information

For the Quarter and Nine Months Ended and as of September 30, 2006

Exhibit H

($ in thousands, except ratios)	September 2006			December 31 2005			September 2005
Capital and surplus	$	1,011,787		$	1,004,505		$	1,069,988
Contingency reserve		311,642			271,907			282,389
Qualified statutory capital		1,323,429			1,276,412			1,352,377
Unearned premium reserve		797,019			751,656			731,505
Loss and loss expense reserve		97,272			108,576			116,256
Total policyholders’ reserves		2,217,720			2,136,644			2,200,138
Present value of installment premiums		335,571			302,953			284,511
Reinsurance and soft capital facilities		150,000			150,000			150,000
Total claims paying resources	$	2,703,291		$	2,589,597		$	2,634,649
Net debt service outstanding	$	133,144,153		$	110,344,057		$	103,260,772
Capital leverage ratio (1)		101			86			76
Claims paying leverage ratio (2)		49			43			39
Net par outstanding by product:
Public finance direct	$	15,130,925		$	14,043,786		$	13,173,444
Public finance reinsurance		36,617,518			33,047,512			31,834,150
Structured direct		39,538,488			24,608,489			21,653,988
Structured reinsurance		4,775,458			4,952,146			4,651,046
Total	$	96,062,389		$	76,651,933		$	71,312,628
Reinsurance business net par outstanding:
Treaty		59	%		58	%		59	%
Facultative		41	%		42	%		41	%
Reserve for losses and LAE
Specific	$	33,649		$	29,311		$	33,609
Conseco		37,487			50,770			56,950
Non-specific		118,553			124,712			121,077
Total	$	189,689		$	204,793		$	211,636

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

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

Page 8

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter and Nine Months Ended and as of September 30, 2006

Exhibit I

	Quarter Ended September 30										Nine Months Ended September 30
	2006			%		2005			%		2006			%		2005			%
Primary New Insurance Written ($ in millions)
Flow	$	7,017		85.7	%	$	7,066		55.7	%	$	18,913		58.1	%	$	18,856		59.6	%
Structured		1,175		14.3	%		5,612		44.3	%		13,630		41.9	%		12,808		40.4	%
Total Primary	$	8,192		100.0	%	$	12,678		100.0	%	$	32,543		100.0	%	$	31,664		100.0	%
Flow
Prime	$	5,320		75.8	%	$	5,361		75.9	%	$	13,970		73.9	%	$	14,151		75.0	%
Alt-A		1,189		16.9	%		1,081		15.3	%		3,560		18.8	%		2,934		15.6	%
A minus and below		508		7.3	%		624		8.8	%		1,383		7.3	%		1,771		9.4	%
Total Flow	$	7,017		100.0	%	$	7,066		100.0	%	$	18,913		100.0	%	$	18,856		100.0	%
Structured
Prime	$	108		9.2	%	$	1,830		32.6	%	$	3,659		26.8	%	$	3,982		31.1	%
Alt-A		1,065		90.6	%		2,638		47.0	%		8,537		62.7	%		5,440		42.5	%
A minus and below		2		0.2	%		1,144		20.4	%		1,434		10.5	%		3,386		26.4	%
Total Structured	$	1,175		100.0	%	$	5,612		100.0	%	$	13,630		100.0	%	$	12,808		100.0	%
Total
Prime	$	5,428		66.3	%	$	7,191		56.7	%	$	17,629		54.1	%	$	18,133		57.3	%
Alt-A		2,254		27.5	%		3,719		29.3	%		12,097		37.2	%		8,374		26.4	%
A minus and below		510		6.2	%		1,768		14.0	%		2,817		8.7	%		5,157		16.3	%
Total Primary	$	8,192		100.0	%	$	12,678		100.0	%	$	32,543		100.0	%	$	31,664		100.0	%
Total Primary New Insurance Written by FICO Score ($ in millions)
Flow
<=619	$	440		6.3	%	$	375		5.3	%	$	1,105		5.8	%	$	1,162		6.2	%
620-679		2,087		29.7	%		2,061		29.2	%		5,644		29.8	%		5,666		30.0	%
680-739		2,525		36.0	%		2,703		38.2	%		6,964		36.9	%		6,968		37.0	%
>=740		1,965		28.0	%		1,927		27.3	%		5,200		27.5	%		5,060		26.8	%
Total Flow	$	7,017		100.0	%	$	7,066		100.0	%	$	18,913		100.0	%	$	18,856		100.0	%
Structured
<=619	$	2		0.2	%	$	1,157		20.6	%	$	1,447		10.6	%	$	3,399		26.5	%
620-679		185		15.7	%		1,797		32.0	%		3,970		29.2	%		3,933		30.7	%
680-739		613		52.2	%		1,629		29.0	%		5,332		39.1	%		3,495		27.3	%
>=740		375		31.9	%		1,029		18.4	%		2,881		21.1	%		1,981		15.5	%
Total Structured	$	1,175		100.0	%	$	5,612		100.0	%	$	13,630		100.0	%	$	12,808		100.0	%
Total
<=619	$	442		5.4	%	$	1,532		12.1	%	$	2,552		7.9	%	$	4,561		14.4	%
620-679		2,272		27.7	%		3,858		30.4	%		9,614		29.5	%		9,599		30.3	%
680-739		3,138		38.3	%		4,332		34.2	%		12,296		37.8	%		10,463		33.1	%
>=740		2,340		28.6	%		2,956		23.3	%		8,081		24.8	%		7,041		22.2	%
Total Primary	$	8,192		100.0	%	$	12,678		100.0	%	$	32,543		100.0	%	$	31,664		100.0	%
Percentage of primary new insurance written
Refinances		28	%				38	%				35	%				42	%
95.01% LTV and above		22	%				9	%				13	%				10	%
ARMs
Less than 5 years		21	%				36	%				26	%				36	%
5 years and longer		9	%				16	%				16	%				15	%
Primary risk written ($ in millions)
Flow	$	1,772		94.4	%	$	1,752		67.6	%	$	4,796		79.2	%	$	4,682		67.7	%
Structured		105		5.6	%		840		32.4	%		1,262		20.8	%		2,232		32.3	%
Total Primary	$	1,877		100.0	%	$	2,592		100.0	%	$	6,058		100.0	%	$	6,914		100.0	%
Pool risk written (In millions)	$	64				$	163				$	333				$	467
Other risk written (In millions)
Seconds
1st loss	$	1				$	43				$	43				$	56
2nd loss		29					279					206					325
NIMs		132					—					238					66
International
1st loss-Hong Kong primary mortgage insurance		9					33					31					240
Reinsurance		2					—					7					11
Other
Domestic credit default swaps		—					150					32					150
Financial guaranty wrap		—					—					—					511
Total other risk written	$	173				$	505				$	557				$	1,359

Page 9

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter and Nine Months Ended and as of September 30, 2006

Exhibit J

	September 30					September 30
	2006			%		2005			%
Primary insurance in force ($ in millions)
Flow	$	82,561		71.6	%	$	82,827		75.8	%
Structured		32,700		28.4	%		26,457		24.2	%
Total Primary	$	115,261		100.0	%	$	109,284		100.0	%
Prime	$	77,030		66.8	%	$	74,207		67.9	%
Alt-A		25,906		22.5	%		21,137		19.3	%
A minus and below		12,325		10.7	%		13,940		12.8	%
Total Primary	$	115,261		100.0	%	$	109,284		100.0	%
Primary risk in force ($ in millions)
Flow	$	20,464		79.9	%	$	20,283		79.1	%
Structured		5,141		20.1	%		5,374		20.9	%
Total Primary	$	25,605		100.0	%	$	25,657		100.0	%
Flow
Prime	$	16,072		78.5	%	$	15,512		76.4	%
Alt-A		2,857		14.0	%		3,197		15.8	%
A minus and below		1,535		7.5	%		1,574		7.8	%
Total Flow	$	20,464		100.0	%	$	20,283		100.0	%
Structured
Prime	$	2,065		40.2	%	$	2,130		39.6	%
Alt-A		1,492		29.0	%		1,321		24.6	%
A minus and below		1,584		30.8	%		1,923		35.8	%
Total Structured	$	5,141		100.0	%	$	5,374		100.0	%
Total
Prime	$	18,137		70.8	%	$	17,642		68.8	%
Alt-A		4,349		17.0	%		4,518		17.6	%
A minus and below		3,119		12.2	%		3,497		13.6	%
Total Primary	$	25,605		100.0	%	$	25,657		100.0	%
Total Primary Risk in Force by FICO Score ($ in millions)
Flow
<=619	$	1,296		6.3	%	$	1,355		6.7	%
620-679		6,297		30.8	%		6,372		31.4	%
680-739		7,506		36.7	%		7,489		36.9	%
>=740		5,365		26.2	%		5,067		25.0	%
Total Flow	$	20,464		100.0	%	$	20,283		100.0	%
Structured
<=619	$	1,585		30.8	%	$	1,923		35.8	%
620-679		1,839		35.8	%		1,953		36.3	%
680-739		1,175		22.9	%		1,035		19.3	%
>=740		542		10.5	%		463		8.6	%
Total Structured	$	5,141		100.0	%	$	5,374		100.0	%
Total
<=619	$	2,881		11.2	%	$	3,278		12.8	%
620-679		8,136		31.8	%		8,325		32.4	%
680-739		8,681		33.9	%		8,524		33.2	%
>=740		5,907		23.1	%		5,530		21.6	%
Total Primary	$	25,605		100.0	%	$	25,657		100.0	%
Percentage of primary risk in force
Refinances		34	%				37	%
95.01% LTV and above		16	%				14	%
ARMs
Less than 5 years		21	%				24	%
5 years and longer		9	%				8	%
Pool risk in force ($ in millions)
Prime	$	2,190		73.2	%	$	2,073		78.6	%
Alt-A		301		10.1	%		262		9.9	%
A minus and below		501		16.7	%		304		11.5	%
Total	$	2,992		100.0	%	$	2,639		100.0	%

Page 10

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter and Nine Months Ended and as of September 30, 2006

Exhibit K

	September 30				September 30
	2006		%		2005		%
Total Primary Risk in Force by LTV ($ in millions)
95.01% and above	$	4,182	16.3	%	$	3,550	13.8	%
90.01% to 95.00%		8,174	31.9	%		8,736	34.1	%
85.01% to 90.00%		9,187	35.9	%		9,606	37.4	%
85.00% and below		4,062	15.9	%		3,765	14.7	%
Total	$	25,605	100.0	%	$	25,657	100.0	%
Total Primary Risk in Force by Policy Year ($ in millions)
2002 and prior	$	3,584	14.0	%	$	5,189	20.2	%
2003		4,159	16.2	%		6,224	24.3	%
2004		5,137	20.1	%		7,808	30.4	%
2005		7,072	27.6	%		6,436	25.1	%
2006		5,653	22.1	%		—	—
Total	$	25,605	100.0	%	$	25,657	100.0	%
Total Pool Risk in Force by Policy Year ($ in millions)
2002 and prior	$	1,647	55.0	%	$	1,676	63.5	%
2003		138	4.6	%		190	7.2	%
2004		291	9.7	%		296	11.2	%
2005		651	21.8	%		477	18.1	%
2006		265	8.9	%		—	—
Total Pool risk in Force	$	2,992	100.0	%	$	2,639	100.0	%
Other risk in force (In millions)
Seconds
1st loss	$	557			$	641
2nd loss		714				330
NIMs		382				283
International
1st loss-Hong Kong primary mortgage insurance		301				238
Reinsurance		33				30
Credit default swaps		7,678				168
Other
Domestic credit default swaps		212				150
Financial guaranty wrap		125				358
Total other risk in force	$	10,002			$	2,198
Risk to capital ratio-STAT Basis		10.4:1				9.8:1

Page 11

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter and Nine Months Ended and as of September 30, 2006

Exhibit L

	Quarter Ended September 30						Nine Months Ended September 30
	2006			2005			2006			2005
Direct claims paid (In thousands)
Prime	$	28,737		$	24,369		$	88,568		$	88,141
Alt-A		13,343			17,498			47,364			59,403
A minus and below		21,885			21,310			67,666			62,218
Seconds and other		10,447			7,883			28,614			26,655
Total	$	74,412		$	71,060		$	232,212		$	236,417
Average claim paid (In thousands)
Prime	$	25.5		$	23.6		$	25.9		$	23.6
Alt-A		30.3			36.5			34.9			35.9
A minus and below		27.1			27.6			27.6			26.5
Seconds		26.9			22.0			26.2			22.5
Total	$	26.9		$	26.9		$	27.9		$	26.5
Loss ratio -GAAP Basis		59.4	%		39.0	%		43.8	%		43.5	%
Expense ratio - GAAP Basis		29.4	%		25.4	%		28.2	%		26.1	%
		88.8	%		64.4	%		72.0	%		69.6	%
Reserve for losses by category (In thousands):
Prime	$	187,223		$	164,626
Alt-A		143,006			156,937
A minus and below		222,399			169,135
Pool Insurance		33,500			47,195
Seconds		57,471	(1)		35,093
Other		7,650			7,978
Total	$	651,249		$	580,964

(1) Includes $19.0 million of reinsurance recoverable on a first-loss second lien captive.

Page 12

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter and Nine Months Ended and as of September 30, 2006

Exhibit M

	September 30 2006		December 31 2005		September 30 2005
Default Statistics
Primary insurance:
Flow
Prime
Number of insured loans	499,623		508,117		514,805
Number of loans in default	14,761		18,045		15,355
Percentage of loans in default	2.95	%	3.55	%	2.98	%
Alt-A
Number of insured loans	63,156		67,339		69,210
Number of loans in default	4,236		4,946		4,730
Percentage of loans in default	6.71	%	7.34	%	6.83	%
A minus and below
Number of insured loans	51,875		54,066		55,077
Number of loans in default	6,970		7,543		6,910
Percentage of loans in default	13.44	%	13.95	%	12.55	%
Total Flow
Number of insured loans	614,654		629,522		639,092
Number of loans in default	25,967		30,534		26,995
Percentage of loans in default	4.22	%	4.85	%	4.22	%
Structured
Prime
Number of insured loans	66,982		59,457		56,691
Number of loans in default	2,845		2,640		2,274
Percentage of loans in default	4.25	%	4.44	%	4.01	%
Alt-A
Number of insured loans	73,511		50,997		51,905
Number of loans in default	2,940		2,564		2,841
Percentage of loans in default	4.00	%	5.03	%	5.47	%
A minus and below
Number of insured loans	41,889		47,348		49,843
Number of loans in default	8,693		8,472		7,921
Percentage of loans in default	20.75	%	17.89	%	15.89	%
Total Structured
Number of insured loans	182,382		157,802		158,439
Number of loans in default	14,478		13,676		13,036
Percentage of loans in default	7.94	%	8.67	%	8.23	%
Total Primary Insurance
Prime
Number of insured loans	566,605		567,574		571,496
Number of loans in default	17,606		20,685		17,629
Percentage of loans in default	3.11	%	3.64	%	3.08	%
Alt-A
Number of insured loans	136,667		118,336		121,115
Number of loans in default	7,176		7,510		7,571
Percentage of loans in default	5.25	%	6.35	%	6.25	%
A minus and below
Number of insured loans	93,764		101,414		104,920
Number of loans in default	15,663		16,015		14,831
Percentage of loans in default	16.70	%	15.79	%	14.14	%
Total Primary Insurance
Number of insured loans	797,036		787,324		797,531
Number of loans in default	40,445	(1)	44,210	(1)	40,031
Percentage of loans in default	5.07	%	5.62	%	5.02	%
Pool insurance:
Number of loans in default	18,096	(2)	10,194	(2)	7,683

(1) Includes approximately 800 and 452 defaults at September 30, 2006 and December 31, 2005, respectively, where reserves have not been established because no claim payment is currently anticipated.

(2) Includes approximately 12,634 and 3,699 defaults at September 30, 2006 and December 31, 2005, respectively, where reserves have not been established because no claim payment is currently anticipated.

Page 13

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter and Nine Months Ended and as of September 30, 2006

Exhibit N

	Quarter Ended September 30						Nine Months Ended September 30
	2006			2005			2006			2005
Net Premiums Written (In thousands)
Primary and Pool Insurance	$	179,206		$	198,277		$	560,338		$	566,825
Seconds		16,682			18,370			42,466			47,701
NIMs		2,943			12,268			22,651			32,148
International		6,295			4,067			12,247			22,711
Domestic credit default swaps		777			2,724			8,957			2,724
Financial guaranty wrap		30			84			90			189
Net Premiums Written	$	205,933		$	235,790		$	646,749		$	672,298
Net Premiums Earned (In thousands)
Primary and Pool Insurance	$	180,895		$	182,380		$	541,723		$	525,376
Seconds		12,266			12,810			41,024			36,773
NIMs		4,359			12,826			18,023			32,364
International		2,279			583			8,196			2,110
Domestic credit default swaps		1,603			219			3,752			219
Financial guaranty wrap		30			84			90			189
Net Premiums Earned	$	201,432		$	208,902		$	612,808		$	597,031
SMART HOME (In millions)
Ceded Premiums Written	$	3.5		$	0.9		$	8.5		$	2.5
Ceded Premiums Earned	$	3.3		$	0.6		$	8.6		$	2.1
Captives
Premiums ceded to captives (In millions)	$	24.1		$	22.0		$	71.3		$	67.6
% of total premiums		11.6	%		10.8	%		11.5	%		11.4	%
NIW subject to captives (In millions)	$	3,160		$	2,701		$	9,700		$	7,998
% of primary NIW		38.6	%		21.3	%		29.8	%		25.3	%
IIF included in captives (1)		34.2	%		32.1	%
RIF included in captives (1)		38.9	%		34.0	%
Persistency (twelve months ended September 30)		65.7	%		57.1	%
	September 30 2006			December 31 2005			September 30 2005
SMART HOME
% of Primary RIF included in Smart Home Transactions (1)		10.9	%		7.8	%		1.7	%

(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.

Page 14

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter Ended and as of September 30, 2006

ALT-A

Exhibit O

	Quarter Ended September 30								Nine Months Ended September 30
($ in millions)	2006		%		2005		%		2006		%		2005		%
Primary New Insurance Written by FICO Score
<=619	$	2	0.1	%	$	24	0.7	%	$	25	0.2	%	$	31	0.4	%
620-659		133	5.9	%		596	16.0	%		1,392	11.5	%		1,463	17.5	%
660-679		280	12.4	%		488	13.1	%		1,668	13.8	%		1,106	13.2	%
680-739		1,160	51.5	%		1,632	43.9	%		5,853	48.4	%		3,688	44.0	%
>=740		679	30.1	%		979	26.3	%		3,159	26.1	%		2,086	24.9	%
Total	$	2,254	100.0	%	$	3,719	100.0	%	$	12,097	100.0	%	$	8,374	100.0	%
Primary Risk in Force by FICO Score
<=619	$	27	0.6	%	$	50	1.1	%
620-659		790	18.2	%		974	21.6	%
660-679		701	16.1	%		783	17.3	%
680-739		1,931	44.4	%		1,898	42.0	%
>=740		900	20.7	%		813	18.0	%
Total	$	4,349	100.0	%	$	4,518	100.0	%
Primary Risk in Force by LTV
95.01% and above	$	126	2.9	%	$	228	5.0	%
90.01% to 95.00%		1,272	29.3	%		1,462	32.4	%
85.01% to 90.00%		1,840	42.3	%		1,958	43.3	%
85.00% and below		1,111	25.5	%		870	19.3	%
Total	$	4,349	100.0	%	$	4,518	100.0	%
Primary Risk in Force by Policy Year
2002 and prior	$	354	8.1	%	$	608	13.5	%
2003		591	13.6	%		1,034	22.9	%
2004		841	19.3	%		1,619	35.8	%
2005		1,287	29.6	%		1,257	27.8	%
2006		1,276	29.4	%		—	—
Total	$	4,349	100.0	%	$	4,518	100.0	%

Page 15

Radian Group Inc.

Financial Services Supplemental Information

For the Quarter and Nine Months Ended and as of September 30, 2006

Exhibit P

	Quarter Ended September 30					Nine Months Ended September 30
(In thousands )	2006		2005			2006		2005
Investment in Affiliates-Selected Information
C-BASS
Balance, beginning of period	$	415,351	$	332,367		$	364,364	$	290,073
Net income for period		27,421		20,727			102,302		80,271
Dividends received		11,300		9,750			35,194		27,000
Balance, end of period	$	431,472	$	343,344		$	431,472	$	343,344
Sherman
Balance, beginning of period	$	76,790	$	103,831		$	81,753	$	101,492
Net income for period		29,192		26,418			84,689		82,036
Dividends received		43,225		58,786			103,740		110,661
Other comprehensive income		—		797			55		1,468
Purchase (sale) of ownership interest		66,307		(18,947	)		66,307		(18,947	)
Warrant repurchase		—		—			—		(2,075	)
Balance, end of period	$	129,064	$	53,313		$	129,064	$	53,313
Portfolio Information:
C-BASS
Servicing portfolio	$	60,400,000	$	40,900,000
Total assets		8,431,896		3,765,804
Servicing income		77,734		62,210		$	231,603	$	185,423
Net interest income		77,096		51,280			212,008		136,838
Total revenues		173,851		134,539			556,468		456,076
Sherman
Total assets	$	1,078,387	$	868,957
Net revenues	$	229,835	$	213,799		$	703,620	$	572,351

Radian owns a 46% interest in C-BASS and a 40.3% interest in Sherman, consisting of 40.96% of the Class A Common Units of Sherman (Class A Common Units represent 94% of the total equity in Sherman) and 50% of the Preferred Units of Sherman (Preferred Units represent 3.6% of the total equity in Sherman).

Page 16

All statements made in this news release that address events or developments 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 are made on the basis of management’s current views and assumptions with respect to future events. The forward-looking statements, as well as Radian’s prospects as a whole, are subject to risks and uncertainties, including the following: changes in general financial and political conditions such as extended national or regional economic recessions (or expansions), changes in housing values, population trends and changes in household formation patterns, changes in unemployment rates, or changes or volatility in interest rates; changes in investor perception of the strength of private mortgage insurers or financial guaranty providers; risks faced by the businesses, municipalities or pools of assets covered by Radian’s insurance; the loss of a customer with whom Radian has a concentration of its insurance in force; increased severity or frequency of losses associated with certain Radian products that are riskier than traditional mortgage insurance and financial guaranty insurance policies; material changes in persistency rates of Radian’s mortgage insurance policies; changes in Radian’s credit ratings or the insurance financial-strength ratings assigned by the major ratings agencies to Radian’s operating subsidiaries; heightened competition from other insurance providers and from alternative products to private mortgage insurance and financial guaranty insurance; changes in the charters or business practices of Fannie Mae and Freddie Mac; the application of federal or state consumer, lending, insurance and other applicable laws and regulations, or unfavorable changes in these laws and regulations or the way they are interpreted, including: (i) the possibility of private lawsuits or 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 (particularly in light of inquiries that we and other mortgage insurers have received from the New York Insurance Department and public reports that other state insurance departments are investigating or planning to investigate captive reinsurance arrangements used in the mortgage insurance industry) or (ii) legislative and regulatory changes affecting demand for private mortgage insurance or financial guaranty insurance; 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 to estimate accurately the fair value amounts of derivative financial guaranty contracts in determining gains and losses on these contracts; changes in accounting guidance from the SEC or the Financial Accounting Standards Board regarding income recognition and the treatment of loss reserves in the mortgage insurance or financial guaranty industries; changes in claims against mortgage insurance products resulting from the aging of Radian’s mortgage insurance policies; vulnerability to the performance of Radian’s strategic investments; changes in the availability of affordable or adequate reinsurance for our non-

prime risk; and international expansion of our mortgage insurance and financial guaranty businesses into new markets and risks associated with our international business activities. Radian does not intend to, and disclaims any duty or obligation to, update or revise any forward-looking statements made in this news release to reflect new information, future events or for any other reason. For more information regarding these risks and uncertainties, as well as certain additional risks that we face, investors should refer to the risk factors detailed in Part I, Item 1A of our annual report on Form 10-K for the year ended December 31, 2005 and the material changes to these risk factors detailed in Part II, Item 1A of our quarterly report on Form 10-Q for the quarter ended June 30, 2006.

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