Radian (RDN) 8-K MGIC Investment Corporation and Radian Group Inc. to Merge

MGIC

Radian

Financial

Group

MGIC

Radian

Financial

Group

Creating

a

Preeminent

Mortgage

and

Credit

Risk

Insurer

February

6,

2007

Exhibit 99.2

1

MGIC Radian Financial Group

Forward Looking Statement

Discussions

made in this press release

that

are

not

statements

of

historical

fact (including statements that include terms

such as “will,”

“may,”

“should,”

believe,”

“expect,”

anticipate,”

“estimate,”

“intend,”

and “plan”) are forward-looking statements

that involve risks and uncertainties. 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. Such forward-looking statements include, but

are not limited to, statements about the benefits of the business combination transaction involving Radian and MGIC, including

future financial and operating results, the new company’s plans, objectives, expectations and intentions and other statements

that

are

not

historical

facts.

The

following

factors,

among

others,

could

cause

actual

results

to

differ

from

those

set

forth

in

the

forward-looking statements:

the

ability

to

obtain regulatory approvals of the transaction on the proposed terms and schedule; 

the failure of Radian or MGIC shareholders

to approve the

transaction;

the risk that the businesses will not be integrated

successfully; customer attrition and

disruption

from the

transaction

making

it more

difficult

to

maintain relationships with

customers,

employees

or

suppliers;

the

risk

that

the

cost

savings

and

any

other

synergies

from

the

transaction

may

not

be

fully realized or may take

longer to

realize

than

expected; competition

and its effect on pricing, spending,

third-party

relationships

and

revenues;

movements

in

market

interest

rates

and

secondary

market

volatility;

potential

sales

of

assets

in

connection with the merger; legislative and regulatory changes affecting demand for private mortgage insurance or financial

guaranty insurance; downgrades of the insurance financial-strength ratings assigned by the major ratings agencies to Radian’s

and MGIC’s

operating subsidiaries and unfavorable changes in economic and business conditions. Additional factors that may

affect

future

results

are

contained

in

Radian’s

and

MGIC’s

filings

with

the

SEC,

which

are

available

at

the

SEC’s

website

http://www.sec.gov.

Radian and MGIC disclaim any obligation to update and revise statements contained in these materials

based on new information or otherwise.

2

MGIC Radian Financial Group

Additional Information

The proposed merger will be submitted to shareholders of MGIC Investment Corporation and Radian Group Inc. for their

consideration. Shareholders are urged to read the joint proxy statement/prospectus regarding the proposed merger when it

becomes

available

because

it

will

contain

important

information.

Shareholders

will

be

able

to

obtain

a

free

copy

of

the

joint

proxy statement/prospectus, as well as other filings containing information about MGIC and Radian, without charge, at the

Securities Exchange Commission’s Internet site (www.sec.gov).  You will also be able to obtain these documents, free of

charge,

by

accessing

MGIC’s

website

(http://www.mgic.com)

or

Radian’s

website

(http:/www.radian.biz).

Copies

of

the

joint

proxy statement/prospectus and the filings with the Securities and Exchange Commission that will be incorporated by

reference in the joint proxy statement/prospectus can also be obtained, without charge, by directing a request to Michael

Zimmerman, Vice President Investor Relations, 250 E. Kilbourn, Milwaukee, WI 53092 or Mona Zeehandelaar, Senior Vice

President,

Investor

Relations

and

Corporate

Communications,

1601

Market

Street,

Philadelphia,

PA 19103

MGIC Investment Corporation and Radian Group Inc., their respective directors and executive officers and other persons may

be deemed to be participants in the solicitations of proxies from the shareholders of MGIC Investment Corporation and/or

Radian Group Inc. in respect of the proposed merger.  Information regarding MGIC Investment Corporation’s directors and

executive officers is available in its proxy statement filed with the Securities and Exchange Commission by MGIC on March 30,

2006,

and

information

regarding

Radian

Group

Inc’s

directors

and

executive

officers

is

available

in

it

proxy

statement

filed

with

the Securities and Exchange Commission by Radian on April 18, 2006.  Additional information regarding the participants in the

proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in

the joint proxy statement/prospectus when it becomes available..

3

MGIC Radian Financial Group

Compelling Strategic Transaction

Leadership and Scale

Enhanced Operating Platform

Financially Compelling

Creating Shareholder Value

Synergistic Transaction

4

MGIC Radian Financial Group

Compelling Strategic Transaction

Leadership

and Scale

Enhanced

Operating

Platform

Financially

Compelling

A

premier

mortgage

insurer

–

$290bn of combined insurance in-force;

$98bn of NIW in 2006

Experienced and strong combined management team

Increased financial strength and flexibility from larger size

Complementary

businesses

–

mortgage insurance,  financial guaranty,

C-BASS and Sherman

Significant operating efficiencies

Complementary mix of revenues / earnings

Stronger

platform

for

growth

–

international opportunities

Attractive

risk

profile

–

diverse geography, business mix

Financially

accretive

to

both

companies’

EPS

Significant cost savings opportunities

Strong capital base

Substantial excess capital generation

5

MGIC Radian Financial Group

Overview of Transaction Terms

100% Stock

Consideration

Structure

0.9658 MGIC shares per Radian share

Market-for-market exchange (based on February 2, 2007 market close)

Name

MGIC Radian Financial Group

–

Mortgage Insurance business:  MGIC

–

Financial Guaranty business:  Radian Guaranty

Locations

Headquarters: Milwaukee, WI

–

Mortgage Insurance: Milwaukee, WI; Philadelphia, PA; International

–

Financial Guaranty: New York, NY; International

Board Composition

6 MGIC directors (including Chairman); 5 independents

5 Radian directors (including Lead Director); 4 independents

–

To be increased to 6 directors, 5 independents upon election by shareholders following

consummation of the merger

Leadership

CC, Chairman and CEO until two years post closing

SAI, President and COO; assumes CEO title two years post closing

Senior management positions identified

Timing

Expected closing fourth quarter of 2007

Subject to regulatory approvals and approval of shareholders of both companies

$1.00 per share (current MGIC dividend)

Approvals

Normal shareholder and regulatory approvals

Due Diligence

Completed

Dividend

6

MGIC Radian Financial Group

Highly Experienced Management Team

Organization Chart Post-Closing

11

Martin Wood

International

23

Teresa Bryce

Corporate Strategy / Corporate Secretary

22

Lawrence DelGatto

Technology / Information

27

24

10

20

17

23

28

25

31

Industry Experience

(Years)

Rob Croner

Human Resources

Larry Pierzchalski

Risk

Jeff Lane

General Counsel

Mark Casale

Capital Markets

Mike Lauer

Chief Financial Officer

Stephen Cooke

Financial Guaranty Company

Pat Sinks

Mortgage Insurance Company

S.A. Ibrahim

President / Chief Operating Officer

Curt Culver

Chief Executive Officer

Post-Closing

Title 

7

MGIC Radian Financial Group

Pro Forma Franchise and Earnings

Pro Forma Net Income Mix

(1)

Combined Businesses

Mortgage

Insurance

65.8%

Sherman

11.3%

Financial

Guaranty

13.2%

C-BASS

9.7%

2006 Total:  $1.1 billion

Mortgage insurance franchise

$290bn of insurance in force

$98bn of 2006 NIW

Financial guaranty business

Strong AA franchise

$104bn of net par outstanding

Financial services businesses

C-BASS: A market leader in

purchasing, servicing and investing in

“credit sensitive”

residential mortgage

assets

$291mm in 2006 pre-tax net

income

Sherman: The nation’s largest buyer

and servicer

of unsecured distressed

consumer debt

$347mm in 2006 pre-tax net

income

1.    Assumes

restructuring

of

C-BASS

and

Sherman

stakes

to

reduced

ownership

of

49.9%

(pro

forma

reflects

sale

of

stake,

review

of

other

potential alternatives).

8

MGIC Radian Financial Group

MGIC Radian Mortgage Insurance Business

Scale provides significant operating

efficiencies

Best practices of both companies

Single technology platform for MI

business

Maintain sound risk profile

Leading product capabilities

Capital market solutions

Credit default swaps

Bulk / flow

Well positioned to succeed across

mortgage products and volume cycles

Increasing MI Penetration Rates

Persistency Continues to Recover

(1)

79.3%

62.2%

56.9%

46.9%

59.5%

59.8%

68.5%

2000

2001

2002

2003

2004

2005

2006

2007E

1.  Represents median of MGIC and Radian.

Source: Inside Mortgage Finance and Inside MBS

Flow

Penetration

=

Flow

NIW

/

Total

Orgination

volume

–

Non

Agency

MBS

Issuance

Bulk Penetration = Bulk NIW / Non Agency MBS Issuance

9

MGIC Radian Financial Group

Increased Scale and Operating Efficiencies

Increased Scale

(1)

Note: Statutory expense data for YTD of 30-Sep-2006.

1.

Includes

purchase

accounting

adjustments.

Data

at

or

for

the

twelve

months

ended

2006

on

a

combined

basis.

$290 billion of insurance-in-force

$2.8 billion of revenue

$1.1 billion of net income

$9.7 billion of total capitalization

$8.3 billion of tangible book value

Combination of MGIC and Radian Creates Greater

Operating Efficiencies and Financial Strength

16.2%

29.2%

16.1%

40.6%

27.4%

23.8%

22.5%

21.8%

Statutory Expense Ratio

10

MGIC Radian Financial Group

Primary Mortgage Insurance Risk Profile

% of RIF

18.1%

% of RIF

14.6%

% of RIF

23.8%

% of RIF

25.7%

% of RIF

17.8%

Maintains Excellent Risk Dispersion

FICO Distribution

Product Type

Original LTV

Geographic Dispersion

700 & >

45%

575 –

619

9%

620 –

699

42%

< 575

4%

ARM –

Neg

Am

4%

ARM No

Neg

Am

17%

FRM

79%

100s

19%

95s

29%

90s

32%

85s

7%

80s

7%

< 80

6%

Note:  As of 31-Dec-2006.

11

MGIC Radian Financial Group

Products

Client

Need

Targets

Lender

Solutions

Capital

Markets

Flow

Pool

Contract

Underwriting

Lower cost to

originate

Improved

secondary market

execution

National, regional

and correspondent

lenders with

traditional funding

needs

Flow and Pool Plus:

—

Bulk

—

Second liens

—

NIMs

—

Credit default

swaps

Increased liquidity

Balance sheet and

capital management

Credit risk transfer

Top tier, non-prime

and smaller clients

with sophisticated

funding needs

Equity

BB

BBB

A

AA

AAA

Same

Underlying

Mortgage

Collateral

Credit

Default

Swaps

(CDS)

Net

Interest

Margin

Securities

(NIMs)

Seconds

Pool

Bulk

Flow

Traditional MI

Providing Solutions Across Credit Spectrum

Mortgage Risk Origination Capabilities

12

MGIC Radian Financial Group

Source:

Inside

Mortgage

Finance,

FNMA,

MBAA

December

Outlook.

$1.0

$2.9

$8.8

$15.0

1970's

1980's

1990's

2000-2005

Total Residential Originations

Residential Mortgage Market

Strong Sector Growth Dynamics

Single

Family

Mortgage

Originations

($tn)

13

MGIC Radian Financial Group

6.6

11

15

0

2

4

6

8

10

12

14

16

60%

62%

64%

66%

68%

70%

72%

Household Growth (millions)

Homeownership Rate

1980’s

2000 –

2010

1990’s

Source:  U.S. Department of Commerce, U.S. Census Bureau for 1980 through June 2002 data; Fannie Mae 2005 Statistical Summary data.

Mortgage Demand Continues to Grow

14

MGIC Radian Financial Group

Market Opportunities

MGIC Radian Has the Size and Scale to

Dynamically Target Attractive Opportunities

Opportunities

Mortgage Debt

Outstanding:

$10 trillion

as of 4Q06

(source:  MBA)

MI Industry Insurance

In Force:

$668 billion

as of December 31, 2006

(source:  MICA)

Credit default swaps

NIMs

Second-to-pay pool

Flow MI

Bulk MI

Pool policies

New products and

services

15

MGIC Radian Financial Group

Financial Guaranty Overview

Public Finance

5.4

Transportation

6.2

Utilities

0.8

Other public finance

5.1

Tax-backed

53.9%

Subtotal

1.5

Long-term care

2.6

Investor-owned utilities

0.8

Housing

10.6

Healthcare

16.8

General obligations

4.1%

Education

Sector %

Sector

Direct writer of credit enhancement for municipal

bonds, asset-backed obligations and structured

products

Provider

of

reinsurance

to

AAA-

rated, monolines,

primary FG insurers for municipal bonds and asset-

backed obligations

Insures timely payment of interest and principal

Primarily insures investment grade obligations

97% of public finance portfolio and 95% of structured

finance portfolio is investment grade

December 31, 2006 net par outstanding: $104 billion

Portfolio Product Lines (As of 31-Dec-06)

Structured Finance

46.1%

Subtotal

1.7

Other structured finance

39.4

CDOs

1.3

Asset-backed

–

mortgage / MBS

2.1

Asset-backed

–

consumer

1.6%

Asset-backed

–

commercial and other

Sector %

Sector

16

MGIC Radian Financial Group

C-BASS Overview

$144

$208

$241

$291

2003

2004

2005

2006

Purchases, services and securitizes

"credit sensitive" residential mortgage

assets

Invests where servicing makes a

difference

Built servicing portfolio to more than $56

billion at December 31, 2006

80% of revenues are recurring from

servicing, money management and

portfolio management

Complements MGIC Radian's capital

markets channel in accessing the

subprime

markets and taking credit risk

in a different form

Strong earnings growth

Pre-tax Net Income ($mm)

17

MGIC Radian Financial Group

Sherman Financial Group Overview

Originates, purchases and services

consumer debt

Purchases of distressed debt made at

deep discounts to their original face

value from national financial

institutions and major retail

corporations

CreditOne

Bank

1.3 million customers

1

Provides diversified and recurring

revenue

Leverage consumer debt platform

International opportunities

Strong earnings growth

$200

$288

$347

$71

2003

2004

2005

2006

Pre-tax Income

Consolidated Pre-tax Net Income ($mm)

1.  As of September 30, 2006.

18

MGIC Radian Financial Group

Enhanced Strategic Opportunities

Combination of MGIC and Radian Creates

a Stronger Platform for Growth

Combination will accelerate MGIC Radian’s ability to expand operations

internationally, experienced management team already in place

Hong Kong based operations for

mortgage

Australian-based operations

Canadian expansion in progress

A premier US mortgage insurer

Strong AA financial guarantor

London-based European

operations for mortgage

insurance and financial

guaranty

19

MGIC Radian Financial Group

Significant Achievable Cost Savings

Estimated Cost Savings

Consolidation of mortgage insurance

operations and technology platform

Elimination of duplicative corporate

staff functions and related overhead

Greater shared services efficiencies

Cost savings represent 24% of

combined company’s cost base

Anticipated to be realized over 12-18

month period post-close

Cost Savings Opportunities

100%

$ 128

36

46

Other G&A

32

41

Direct and

Indirect IT

32 %

$ 41

Direct MI

Expenses

% of

Total

Savings

$mm

20

MGIC Radian Financial Group

Substantial Capital Generation

($ in millions)

Support growth in core businesses

Financial / strategic flexibility

Ability to invest in business initiatives

International

Other

Return excess capital to

shareholders

$919

$134

$1,053

2008E Pro

Forma Net

Income

Dividend

Net Capital

Generation

Potential Uses

21

MGIC Radian Financial Group

Integration Plan

Detailed

Transaction close

Integration

Integration

Technology conversion of MI systems

Complete

Planning

Integration

of

overlapping businesses and shared

services

Best of both companies

Talent, analytics, systems and processes

Communication with constituencies

Ratings agencies, regulators, employees, investors and customers

Integration timetable:

1Q –

3Q 2007

2H 2008

1Q 2008

4Q 2007

1H 2009

22

MGIC Radian Financial Group

Pro Forma Assumptions

Transaction Close:

4

th

Quarter 2007

Consideration / Structure:

100% Stock

Radian to receive 0.9658 shares of MGIC common stock for each Radian share

Synergies:

Pre-tax cost savings

—

$128mm phased in 75% / 100% in 2008 / 2009, respectively

No revenue synergies assumed

Estimated lost MI business volume of approximately $12bn of combined NIW by 2008

Share Repurchase:

Approximately $1bn share repurchase upon closing

—

Funded by debt / preferred issuance and excess capital

Additional

share

repurchase

of

approximately

$750mm

(potentially

higher)

—

Funded by proceeds from reduced ownership in C-BASS and Sherman stakes and excess capital

Other Assumptions:

I/B/E/S median EPS estimates for 2008 (as of 05-Feb-2007), thereafter, EPS grown at long-term growth rate of 10%

Restructuring charge equal to $125mm to $150mm, after-tax

Identified intangibles of $250mm, amortized utilizing sum-of-the digits methodology over 7 years

23

MGIC Radian Financial Group

Pro Forma Financial Analysis Earnings Impact

To Radian Shareholders

To MGIC Shareholders

11.5

8.88 

7.96

2009

8.6%

$7.86

$7.24

2008

Cash

8.2

8.62 

7.96

2009

4.7%

$7.58

$7.24

2008

% Change

Pro Forma

Current

GAAP

9.5

9.19 

8.39

2009

6.7%

$8.14

$7.63

2008

Cash

6.3

8.92 

8.39

2009

2.8%

$7.85

$7.63

2008

% Change

Pro Forma

Current (I/B/E/S)

GAAP

Note: Based on exchange ratio of 0.9658x.

24

MGIC Radian Financial Group

Compelling Strategic Transaction

Leadership and Scale

Enhanced Operating Platform

Financially Compelling

Creating Shareholder Value

Synergistic Transaction

25

MGIC Radian Financial Group

Appendix

26

MGIC Radian Financial Group

Pro Forma Income Statement

(159)

(145)

Lost Income From Equity Affiliates

51

68

Radian DAC Amortization

(27)

1

Other

1

(120)

(92)

Total After-tax Adjustments

2

(42)

(42)

Funding Costs

$ 1,126

$ 1,092

Pro Forma Operating Cash Net Income

$ 1,093

$ 1,053

Pro Forma Operating GAAP Net Income

(33)

(39)

Transaction Identified Intangible Amortization

$ 92

$ 66

Cost Savings

After-tax Adjustments

$ 1,213

$1,144

Pro

Forma

Net

Income

–

Before

Adjustments

601

567

Radian Standalone GAAP Net Income (Based on I/B/E/S)

$ 612

$ 578

MGIC Standalone GAAP Net Income (Based on I/B/E/S)

2009

2008

($ in millions)

Note:

Operating net income represents net income before merger-elated expenses.  Operating cash net income is equal to operating net

income plus after-tax impact of intangible amortization.

1. Includes addback

of potential business losses and excess cash yield.

2.  Excludes accounting impact of future merger-related expenses realized through income statement.

27

MGIC Radian Financial Group

Balance Sheet Summary

748

781

Debt

$7,929

$6,622

Total Liabilities and Equity

$4,068

$4,296

Total Equity

$3,861

$2,326

Total Liabilities

1,327

229

Other Liabilities

842

1,126

Reserve for Losses

$944

$190

Unearned Premiums

$7,929

$6,622

Total Assets

1,261

1,063

Other Assets

222

13

Deferred Policy Acquisition Costs

$6,446

$5,546

Cash and Investments

Radian

MGIC

As of December 31, 2006

($ in millions)

Source:  Publicly available financial statements.

28

MGIC Radian Financial Group

Pro Forma Financial Analysis Capital Impact

8.3x

10.4 x

7.4 x

MI Risk-in-Force /

Statutory Capital   

(2006A)

12 -

15 %

15.9 %

15.4 %

Rating Agency             

Debt / Capital (2007E)

18 -

20

%

15.9 %

15.4 %

GAAP Debt / Capital

(2007E)

Pro Forma

Radian

MGIC