Radian (RDN) 8-K Radian Reports Second Quarter Net Income of $21 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:	Michelle Davidson – phone: 215 231.1325
	cell: 215 260.6760
	email:michelle.davidson@radian.biz
	Courtney Robinson – phone: 215 231.1762
	cell: 215 629.6880
	email:courtney.robinson@radian.biz

Radian Reports Second Quarter Net Income of $21 Million

PHILADELPHIA, Pa., July 24, 2007 — Radian Group Inc. (NYSE: RDN) today reported net income for the quarter ended June 30, 2007, of $21.1 million and diluted net income per share of $0.26.

“Our second quarter results clearly illustrate the credit challenges in today’s mortgage market, but I believe they also reflect long-term positive trends for our business,” said S.A. Ibrahim, Chief Executive Officer. “Market conditions, particularly in California and Florida, led to an increase in defaults that impacted our results.”

Mr. Ibrahim added, “The company experienced top-line growth, improved persistency and renewed demand for our traditional mortgage insurance product. Our balance sheet remains solid, with a highly rated investment portfolio of more than $6 billion and total loss reserves of more than $900 million. And, our financial guaranty business continues to demonstrate the benefit of our diversification by contributing strong operating earnings again this quarter.”

For Financial Guaranty, net income was $22.0 million, up from $19.0 million in the second quarter of 2006. In the Financial Services segment, net income was $27.3 million, down from $45.9 million for the same period last year.

The company also provided an update on its proposed merger with MGIC, which was announced in February this year. All significant regulatory and stockholder approvals have been completed, except for two state insurance regulatory authorities. Radian and MGIC continue to anticipate completing the merger late in the third quarter or early in the fourth quarter of 2007.

-1-

The key financial highlights are as follows:

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

(Unaudited)

Second quarter

	Quarter ended June 30, 2007			Quarter ended June 30, 2006			Percent change
Revenue	$	243.2		$	304.6		(20.2	)%
Net income	$	21.1		$	148.1		(85.8	)%
Diluted net income per share	$	0.26		$	1.79		(85.5	)%
Net premiums written	$	267.6		$	298.9		(10.5	)%
Net premiums earned	$	254.9		$	259.1		(1.6	)%
Equity in net income of affiliates	$	49.5		$	72.0		(31.3	)%
Change in fair value of derivative instruments *	$	(103.1	)	$	(25.3	)	—
Book value per share	$	51.53		$	46.95		9.8	%

Six months

	Six months ended June 30, 2007			Six months ended June 30, 2006			Percent change
Revenue	$	584.7		$	658.2		(11.2	)%
Net income	$	134.6		$	311.8		(56.8	)%
Diluted net income per share	$	1.68		$	3.75		(55.2	)%
Net premiums written	$	545.2		$	578.5		(5.8	)%
Net premiums earned	$	504.0		$	512.8		(1.7	)%
Equity in net income of affiliates	$	72.3		$	130.4		(44.6	)%
Change in fair value of derivative instruments *	$	(89.3	)	$	(7.7	)	—

* The change in fair value of derivative instruments for the second quarter and six months includes $61.0 million of credit reserves for Radian’s Net Interest Margin Securities (NIMs) book of business.

-2-

Radian will hold a conference call on Wednesday, July 25, 2007, at 9:00 a.m. Eastern time to discuss the company’s second quarter 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 on

http://www.ir.radian.biz/phoenix.zhtml?c=112301&p=irol-audioarchives.

About Radian

Radian Group Inc. is a global credit risk management company headquartered in Philadelphia with significant operations in 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.

Financial Results and Supplemental Information Contents (Unaudited)

For trend information on all schedules, refer to Radian’s quarterly financial statistics at

http://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 June 30, 2007
Exhibit D:	Segment Information Quarter Ended June 30, 2006
Exhibit E:	Segment Information Six Months Ended June 30, 2007
Exhibit F:	Segment Information Six Months Ended June 30, 2006
Exhibit G:	Financial Guaranty Insurance Supplemental Information – Quarter Ended and as of June 30, 2007
Exhibit H:	Financial Guaranty Insurance Supplemental Information – Quarter Ended and as of June 30, 2007
Exhibit I:	Mortgage Insurance Supplemental Information: New Insurance Written and Risk Written

-3-

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

-4-

Radian Group Inc. and Subsidiaries

Condensed Consolidated Statements of Income

Exhibit A

(In thousands, except per-share data)	Quarter Ended June 30						Six Months Ended June 30
	2007			2006			2007			2006
Revenues:
Net premiums written	$	267,556		$	298,875		$	545,190		$	578,480
Net premiums earned—insurance	$	218,010		$	233,527		$	432,517		$	460,761
Net premiums earned—credit derivatives		36,874			25,559			71,502			52,022
Net premiums earned—total		254,884			259,086			504,019			512,783
Net investment income		62,650			59,678			123,646			113,938
Net gains on securities		25,694			5,324			39,439			28,178
Change in fair value of derivative instruments		(103,120	)		(25,287	)		(89,331	)		(7,657	)
Other income		3,102			5,778			6,920			10,989
Total revenues		243,210			304,579			584,693			658,231
Expenses:
Provision for losses		173,962			84,860			281,004			163,494
Policy acquisition costs		24,198			26,820			52,452			54,184
Other operating expenses		48,213			58,099			102,580			118,376
Merger expenses		9,395			—			12,723			—
Interest expense		12,360			12,538			25,416			24,378
Total expenses		268,128			182,317			474,175			360,432
Equity in net income of affiliates		49,507			72,038			72,279			130,378
Pretax income		24,589			194,300			182,797			428,177
Income tax provision		3,506			46,155			48,247			116,334
Net income	$	21,083		$	148,145		$	134,550		$	311,843
Diluted net income per share (1)	$	0.26		$	1.79		$	1.68		$	3.75
(1) Weighted average shares outstanding (in thousands)
Average common shares outstanding		79,627			81,921			79,295			82,355
Increase in shares-potential exercise of options-diluted basis		918			835			984			745
Weighted average shares outstanding (in thousands)		80,545			82,756			80,279			83,100

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

Radian Group Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

Exhibit B

(In thousands, except share and per-share data)	June 30 2007			December 31 2006		June 30 2006
Assets:
Cash and investments	$	6,028,815		$	5,803,228	$	5,598,168
Investments in affiliates		639,571			618,841		492,175
Deferred policy acquisition costs		232,548			221,769		215,803
Prepaid federal income taxes		860,135			808,740		709,304
Other assets		357,016			476,093		491,897
Total assets	$	8,118,085		$	7,928,671	$	7,507,347
Liabilities and stockholders’ equity:
Unearned premiums	$	987,788		$	943,687	$	913,879
Reserve for losses and loss adjustment expenses		909,371			842,283		789,701
Long-term debt		747,929			747,770		747,615
Current income taxes		220,951			—		—
Deferred income taxes		888,667			1,129,740		1,020,720
Other liabilities		220,661			197,634		205,264
Total liabilities		3,975,367			3,861,114		3,677,179
Common stock		97			97		97
Additional paid-in capital		436,017			416,193		538,698
Retained earnings		3,609,259			3,489,290		3,222,189
Accumulated other comprehensive income		97,345			161,977		69,184
Total common stockholders’ equity		4,142,718			4,067,557		3,830,168
Total liabilities and stockholders’ equity	$	8,118,085		$	7,928,671	$	7,507,347
Book value per share	$	51.53		$	51.23	$	46.95
Treasury Stock Repurchases (Year-to-Date for Periods Presented)
Total number of shares repurchased		398,645	(1)		4,500,000		2,000,000
Average price paid per share	$	57.25		$	58.58	$	60.96
Total cost of repurchased shares	$	22,822,537		$	263,600,341	$	121,921,937

(1) 0.3 million shares were repurchased in the2nd quarter of 2007 at a cost of $18.8 million.

Radian Group Inc. and Subsidiaries

Segment Information

Quarter Ended June 30, 2007

Exhibit C

(In thousands)	Mortgage Insurance			Financial Guaranty			Financial Services		Total
Revenues:
Net premiums written	$	217,040		$	50,516		$	—	$	267,556
Net premiums earned—insurance	$	185,588		$	32,422		$	—	$	218,010
Net premiums earned—credit derivatives		21,090			15,784			—		36,874
Net premiums earned—total		206,678			48,206			—		254,884
Net investment income		36,287			26,320			43		62,650
Net gains on securities		19,356			5,609			729		25,694
Change in fair value of derivative instruments		(70,500	)		(32,620	)		—		(103,120	)
Other income		2,726			126			250		3,102
Total revenues		194,547			47,641			1,022		243,210
Expenses:
Provision for losses		180,152			(6,190	)		—		173,962
Policy acquisition costs		12,556			11,642			—		24,198
Other operating expenses		34,036			12,533			1,644		48,213
Merger expenses		8,990			405			—		9,395
Interest expense		6,341			4,462			1,557		12,360
Total expenses		242,075			22,852			3,201		268,128
Equity in net income of affiliates		—			—			49,507		49,507
Pretax income (loss)		(47,528	)		24,789			47,328		24,589
Income tax provision (benefit)		(19,326	)		2,768			20,064		3,506
Net income (loss)	$	(28,202	)	$	22,021		$	27,264	$	21,083
Assets	$	4,762,306		$	2,706,691		$	649,088	$	8,118,085
Deferred policy acquisition costs		70,525			162,023			—		232,548
Reserve for losses and loss adjustment expenses		746,095			163,276			—		909,371
Unearned premiums		287,824			699,964			—		987,788
Stockholders’ equity		2,270,272			1,456,497			415,949		4,142,718

Radian Group Inc. and Subsidiaries

Segment Information

Quarter Ended June 30, 2006

Exhibit D

(In thousands)	Mortgage Insurance			Financial Guaranty			Financial Services			Total
Revenues:
Net premiums written	$	217,050		$	81,825		$	—		$	298,875
Net premiums earned—insurance	$	200,641		$	32,886		$	—		$	233,527
Net premiums earned—credit derivatives		8,029			17,530			—			25,559
Net premiums earned—total		208,670			50,416			—			259,086
Net investment income		36,150			23,520			8			59,678
Net gains (losses) on securities		3,684			1,709			(69	)		5,324
Change in fair value of derivative instruments		(3,998	)		(21,289	)		—			(25,287	)
Other income		3,475			120			2,183			5,778
Total revenues		247,981			54,476			2,122			304,579
Expenses:
Provision for losses		77,577			7,283			—			84,860
Policy acquisition costs		15,720			11,100			—			26,820
Other operating expenses		40,542			15,297			2,260			58,099
Interest expense		6,984			4,325			1,229			12,538
Total expenses		140,823			38,005			3,489			182,317
Equity in net income of affiliates		—			—			72,038			72,038
Pretax income		107,158			16,471			70,671			194,300
Income tax provision (benefit)		23,986			(2,565	)		24,734			46,155
Net income	$	83,172		$	19,036		$	45,937		$	148,145
Assets	$	4,505,679		$	2,500,483		$	501,185			7,507,347
Deferred policy acquisition costs		68,843			146,960			—			215,803
Reserve for losses and loss adjustment expenses		592,526			197,175			—			789,701
Unearned premiums		241,012			672,867			—			913,879
Stockholders’ equity		2,225,680			1,266,979			337,509			3,830,168

Radian Group Inc. and Subsidiaries

Segment Information

Six Months Ended June 30, 2007

Exhibit E

(In thousands)	Mortgage Insurance			Financial Guaranty			Financial Services		Total
Revenues:
Net premiums written	$	439,329		$	105,861		$	—	$	545,190
Net premiums earned—insurance	$	365,831		$	66,686		$	—	$	432,517
Net premiums earned—credit derivatives		36,779			34,723			—		71,502
Net premiums earned—total		402,610			101,409			—		504,019
Net investment income		71,846			51,757			43		123,646
Net gains on securities		30,479			8,433			527		39,439
Change in fair value of derivative instruments		(81,851	)		(7,480	)		—		(89,331	)
Other income		5,575			266			1,079		6,920
Total revenues		428,659			154,385			1,649		584,693
Expenses:
Provision for losses		293,006			(12,002	)		—		281,004
Policy acquisition costs		29,079			23,373			—		52,452
Other operating expenses		70,308			26,768			5,504		102,580
Merger expenses		12,318			405			—		12,723
Interest expense		13,195			9,058			3,163		25,416
Total expenses		417,906			47,602			8,667		474,175
Equity in net income of affiliates		—			—			72,279		72,279
Pretax income		10,753			106,783			65,261		182,797
Income tax provision (benefit)		(5,747	)		26,846			27,148		48,247
Net income	$	16,500		$	79,937		$	38,113	$	134,550

Radian Group Inc. and Subsidiaries

Segment Information

Six Months Ended June 30, 2006

Exhibit F

(In thousands)	Mortgage Insurance		Financial Guaranty			Financial Services		Total
Revenues:
Net premiums written	$	440,816	$	137,664		$	—	$	578,480
Net premiums earned—insurance	$	393,612	$	67,149		$	—	$	460,761
Net premiums earned—credit derivatives		17,764		34,258			—		52,022
Net premiums earned—total		411,376		101,407			—		512,783
Net investment income		67,815		46,038			85		113,938
Net gains on securities		17,261		8,887			2,030		28,178
Change in fair value of derivative instruments		5,123		(12,780	)		—		(7,657	)
Other income		7,109		334			3,546		10,989
Total revenues		508,684		143,886			5,661		658,231
Expenses:
Provision for losses		148,674		14,820			—		163,494
Policy acquisition costs		29,065		25,119			—		54,184
Other operating expenses		84,809		30,053			3,514		118,376
Interest expense		13,685		8,351			2,342		24,378
Total expenses		276,233		78,343			5,856		360,432
Equity in net income of affiliates		—		—			130,378		130,378
Pretax income		232,451		65,543			130,183		428,177
Income tax provision		61,135		9,635			45,564		116,334
Net income	$	171,316	$	55,908		$	84,619	$	311,843

Radian Group Inc.

Financial Guaranty Supplemental Information

For the Quarter and Six Months Ended and as of June 30, 2007

Exhibit G

($ in thousands, except ratios)	Quarter Ended June 30						Six Months Ended June 30
	2007			2006			2007			2006
Net Premiums Written:
Public finance direct	$	18,130		$	24,808		$	30,910		$	38,246
Public finance reinsurance		17,495			28,712			35,649			46,695
Structured direct		2,789			6,441			8,036			10,432
Structured reinsurance		5,693			5,404			11,605			8,409
Trade credit reinsurance		805			1,473			731			4,451
Net premiums written—insurance		44,912			66,838			86,931			108,233
Net premiums written—credit derivatives		5,604			14,987			18,930			29,431
Total Net Premiums Written	$	50,516		$	81,825		$	105,861		$	137,664
Net Premiums Earned:
Public finance direct	$	9,961		$	7,401		$	21,546		$	15,154
Public finance reinsurance		11,692			7,865			22,792			16,158
Structured direct		4,389			5,374			9,080			10,286
Structured reinsurance		5,742			5,594			11,936			10,188
Trade credit reinsurance		638			6,652			1,332			15,363
Net premiums earned—insurance		32,422			32,886			66,686			67,149
Net premiums earned—credit derivatives		15,784			17,530			34,723			34,258
Total Net Premiums Earned	$	48,206		$	50,416		$	101,409		$	101,407
Refundings included in earned premium	$	5,177		$	928		$	11,763		$	3,310
Claims paid:
Trade credit reinsurance	$	2,625		$	4,354		$	5,271		$	8,354
Other financial guaranty		803			6,919			734			6,809
Conseco		3,011			4,428			6,119			8,745
Total	$	6,439		$	15,701		$	12,124		$	23,908
Incurred losses:
Trade credit reinsurance	$	(8,480	)	$	3,244		$	(11,616	)	$	7,194
Other financial guaranty		2,290			4,039			(386	)		8,658
Conseco		—			—			—			(1,032	)
Total	$	(6,190	)	$	7,283		$	(12,002	)	$	14,820
Loss ratio- GAAP Basis		(12.8	)%		14.4	%		(11.8	)%		14.6	%
Expense ratio- GAAP Basis (1)		50.2	%		52.4	%		49.5	%		54.4	%
		37.4	%		66.8	%		37.7	%		69.0	%
Net (receipts) payments under derivatives contracts	$	(16,147	)	$	(1,226	)	$	(27,375	)	$	65,413

(1) Excludes merger expenses.

Radian Group Inc.

Financial Guaranty Supplemental Information

For the Quarter and Six Months Ended and as of June 30, 2007

Exhibit H

($ in thousands, except ratios)	June 30 2007			December 31 2006			June 30 2006
Capital and surplus	$	1,066,378		$	1,014,958		$	989,716
Contingency reserve		380,222			336,719			301,364
Qualified statutory capital		1,446,600			1,351,677			1,291,080
Unearned premium reserve		846,254			829,340			794,989
Loss and loss expense reserve		73,083			96,829			106,494
Total statutory policyholders’ reserves		2,365,937			2,277,846			2,192,563
Present value of installment premiums		366,572			345,565			310,178
Reinsurance and soft capital facilities		150,000			150,000			150,000
Total statutory claims paying resources	$	2,882,509		$	2,773,411		$	2,652,741
Net debt service outstanding	$	152,351,096		$	143,728,116		$	126,568,891
Capital leverage ratio (1)		105			106			98
Claims paying leverage ratio (2)		53			52			48
Net par outstanding by product:
Public finance direct	$	17,131,513		$	16,324,170		$	14,717,373
Public finance reinsurance		40,063,123			37,488,972			36,020,773
Structured direct		48,071,745			44,960,360			35,152,186
Structured reinsurance		5,270,740			5,192,122			4,792,978
Total	$	110,537,121		$	103,965,624		$	90,683,310
Reinsurance business net par outstanding:
Treaty		59	%		59	%		59	%
Facultative		41	%		41	%		41	%
Reserve for losses and LAE
Specific	$	29,274		$	35,320		$	36,569
Conseco		27,855			33,975			40,993
Non-specific		106,147			119,752			119,613
Total	$	163,276		$	189,047		$	197,175

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

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

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter and Six Months Ended and as of June 30, 2007

Exhibit I

	Quarter Ended June 30										Six Months Ended June 30
	2007			%		2006			%		2007			%		2006			%
Primary New Insurance Written ($ in millions)
Flow	$	10,639		63.1	%	$	6,662		57.7	%	$	17,688		58.8	%	$	11,896		48.9	%
Structured		6,211		36.9	%		4,886		42.3	%		12,389		41.2	%		12,455		51.1	%
Total Primary	$	16,850		100.0	%	$	11,548		100.0	%	$	30,077		100.0	%	$	24,351		100.0	%
Flow
Prime	$	7,673		72.1	%	$	4,879		73.2	%	$	12,723		71.9	%	$	8,650		72.7	%
Alt-A		2,026		19.1	%		1,266		19.0	%		3,427		19.4	%		2,371		19.9	%
A minus and below		940		8.8	%		517		7.8	%		1,538		8.7	%		875		7.4	%
Total Flow	$	10,639		100.0	%	$	6,662		100.0	%	$	17,688		100.0	%	$	11,896		100.0	%
Structured
Prime	$	581		9.4	%	$	1,287		26.3	%	$	674		5.5	%	$	3,551		28.5	%
Alt-A		5,200		83.7	%		3,555		72.8	%		11,105		89.6	%		7,472		60.0	%
A minus and below		430		6.9	%		44		0.9	%		610		4.9	%		1,432		11.5	%
Total Structured	$	6,211		100.0	%	$	4,886		100.0	%	$	12,389		100.0	%	$	12,455		100.0	%
Total
Prime	$	8,254		49.0	%	$	6,166		53.4	%	$	13,397		44.6	%	$	12,201		50.1	%
Alt-A		7,226		42.9	%		4,821		41.7	%		14,532		48.3	%		9,843		40.4	%
A minus and below		1,370		8.1	%		561		4.9	%		2,148		7.1	%		2,307		9.5	%
Total Primary	$	16,850		100.0	%	$	11,548		100.0	%	$	30,077		100.0	%	$	24,351		100.0	%
Total Primary New Insurance Written by FICO Score
($ in millions)
Flow
<=619	$	641		6.0	%	$	387		5.8	%	$	1,127		6.4	%	$	665		5.6	%
620-679		3,397		32.0	%		2,010		30.2	%		5,652		31.9	%		3,557		29.9	%
680-739		3,854		36.2	%		2,448		36.7	%		6,333		35.8	%		4,439		37.3	%
>=740		2,747		25.8	%		1,817		27.3	%		4,576		25.9	%		3,235		27.2	%
Total Flow	$	10,639		100.0	%	$	6,662		100.0	%	$	17,688		100.0	%	$	11,896		100.0	%
Structured
<=619	$	283		4.6	%	$	57		1.2	%	$	409		3.3	%	$	1,445		11.6	%
620-679		2,090		33.6	%		1,604		32.8	%		3,466		28.0	%		3,785		30.4	%
680-739		2,761		44.5	%		2,214		45.3	%		5,829		47.0	%		4,719		37.9	%
>=740		1,077		17.3	%		1,011		20.7	%		2,685		21.7	%		2,506		20.1	%
Total Structured	$	6,211		100.0	%	$	4,886		100.0	%	$	12,389		100.0	%	$	12,455		100.0	%
Total
<=619	$	924		5.5	%	$	444		3.8	%	$	1,536		5.1	%	$	2,110		8.7	%
620-679		5,487		32.6	%		3,614		31.3	%		9,118		30.3	%		7,342		30.1	%
680-739		6,615		39.2	%		4,662		40.4	%		12,162		40.4	%		9,158		37.6	%
>=740		3,824		22.7	%		2,828		24.5	%		7,261		24.2	%		5,741		23.6	%
Total Primary	$	16,850		100.0	%	$	11,548		100.0	%	$	30,077		100.0	%	$	24,351		100.0	%
Percentage of primary new insurance written
Refinances		41	%				35	%				46	%				37	%
95.01% LTV and above		21	%				13	%				19	%				10	%
ARMs
Less than 5 years		7	%				12	%				23	%				27	%
5 years and longer		10	%				17	%				8	%				18	%
Primary risk written ($ in millions)
Flow	$	2,699		83.4	%	$	1,695		94.1	%	$	4,445		85.9	%	$	3,024		72.3	%
Structured		537		16.6	%		107		5.9	%		731		14.1	%		1,157		27.7	%
Total Primary	$	3,236		100.0	%	$	1,802		100.0	%	$	5,176		100.0	%	$	4,181		100.0	%
Pool risk written (In millions)	$	96				$	208				$	185				$	269
Other risk written (In millions)
Seconds
1st loss	$	3				$	18				$	6				$	42
2nd loss		—					45					21					177
NIMs		109					17					377					106
International
1st loss-Hong Kong primary mortgage insurance		31					5					50					22
Reinsurance		17					3					34					5
Other
Domestic credit default swaps		—					12					—					32
Total other risk written	$	160				$	100				$	488				$	384

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter and Six Months Ended and as of June 30, 2007

Exhibit J

	June 30					June 30
	2007			%		2006			%
Primary insurance in force ($ in millions)
Flow	$	91,098		71.0	%	$	81,828		70.5	%
Structured		37,172		29.0	%		34,168		29.5	%
Total Primary	$	128,270		100.0	%	$	115,996		100.0	%
Prime	$	80,984		63.1	%	$	76,868		66.3	%
Alt-A		35,671		27.8	%		25,998		22.4	%
A minus and below		11,615		9.1	%		13,130		11.3	%
Total Primary	$	128,270		100.0	%	$	115,996		100.0	%
Primary risk in force ($ in millions)
Flow	$	22,702		83.2	%	$	20,191		78.5	%
Structured		4,580		16.8	%		5,528		21.5	%
Total Primary	$	27,282		100.0	%	$	25,719		100.0	%
Flow
Prime	$	17,677		77.9	%	$	15,756		78.0	%
Alt-A		3,305		14.5	%		2,902		14.4	%
A minus and below		1,720		7.6	%		1,533		7.6	%
Total Flow	$	22,702		100.0	%	$	20,191		100.0	%
Structured
Prime	$	1,653		36.1	%	$	2,207		39.9	%
Alt-A		1,756		38.3	%		1,540		27.9	%
A minus and below		1,171		25.6	%		1,781		32.2	%
Total Structured	$	4,580		100.0	%	$	5,528		100.0	%
Total
Prime	$	19,330		70.9	%	$	17,963		69.8	%
Alt-A		5,061		18.5	%		4,442		17.3	%
A minus and below		2,891		10.6	%		3,314		12.9	%
Total Primary	$	27,282		100.0	%	$	25,719		100.0	%
Total Primary Risk in Force by FICO Score
($ in millions)
Flow
<=619	$	1,458		6.4	%	$	1,285		6.4	%
620-679		7,037		31.0	%		6,245		30.9	%
680-739		8,264		36.4	%		7,410		36.7	%
>=740		5,943		26.2	%		5,251		26.0	%
Total Flow	$	22,702		100.0	%	$	20,191		100.0	%
Structured
<=619	$	1,121		24.5	%	$	1,782		32.2	%
620-679		1,571		34.3	%		1,993		36.1	%
680-739		1,262		27.5	%		1,209		21.9	%
>=740		626		13.7	%		544		9.8	%
Total Structured	$	4,580		100.0	%	$	5,528		100.0	%
Total
<=619	$	2,579		9.4	%	$	3,067		11.9	%
620-679		8,608		31.7	%		8,238		32.1	%
680-739		9,526		34.9	%		8,619		33.5	%
>=740		6,569		24.1	%		5,795		22.5	%
Total Primary	$	27,282		100.0	%	$	25,719		100.0	%
Percentage of primary risk in force
Refinances		33	%				35	%
95.01% LTV and above		20	%				15	%
ARMs
Less than 5 years		16	%				23	%
5 years and longer		9	%				9	%
Pool risk in force ($ in millions)
Prime	$	2,206		70.2	%	$	2,210		75.0	%
Alt-A		297		9.5	%		266		9.0	%
A minus and below		638		20.3	%		470		16.0	%
Total	$	3,141		100.0	%	$	2,946		100.0	%

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter and Six Months Ended and as of June 30, 2007

Exhibit K

	June 30				June 30
	2007		%		2006		%
Total Primary Risk in Force by LTV ($ in millions)
95.01% and above	$	5,549	20.3	%	$	3,901	15.2	%
90.01% to 95.00%		8,227	30.2	%		8,293	32.2	%
85.01% to 90.00%		9,497	34.8	%		9,291	36.1	%
85.00% and below		4,009	14.7	%		4,234	16.5	%
Total	$	27,282	100.0	%	$	25,719	100.0	%
Total Primary Risk in Force by Policy Year ($ in millions)
2003 and prior	$	6,196	22.7	%	$	8,484	33.0	%
2004		3,833	14.0	%		5,761	22.4	%
2005		5,704	20.9	%		7,496	29.1	%
2006		6,482	23.8	%		3,978	15.5	%
2007		5,067	18.6	%		—	—
Total	$	27,282	100.0	%	$	25,719	100.0	%
Total Pool Risk in Force by Policy Year ($ in millions)
2003 and prior		1,732	55.2	%	$	1,803	61.2	%
2004		287	9.1	%		291	9.9	%
2005		650	20.7	%		651	22.1	%
2006		281	8.9	%		201	6.8	%
2007		191	6.1	%		—	—
Total Pool risk in Force	$	3,141	100.0	%	$	2,946	100.0	%
Other risk in force (In millions)
Seconds
1st loss	$	495			$	653
2nd loss		590				776
NIMs		796				289
International
1st loss-Hong Kong primary mortgage insurance		384				293
Reinsurance		79				31
Credit default swaps		7,872				7,889
Other
Domestic credit default swaps		212				224
Financial guaranty wrap		—				159
Total other risk in force	$	10,428			$	10,314
Risk to capital ratio-STAT Basis		10.6:1				10.7:1

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter and Six Months Ended and as of June 30, 2007

Exhibit L

	Quarter Ended June 30						Six Months Ended June 30
	2007			2006			2007			2006
Direct claims paid (In thousands)
Prime	$	34,226		$	29,722		$	67,351		$	59,831
Alt-A		21,755			15,231			41,753			34,021
A minus and below		35,027			22,390			64,107			45,781
Seconds and other		21,071			10,264			34,692			18,167
Total	$	112,079		$	77,607		$	207,903		$	157,800
Average claim paid (In thousands)
Prime	$	28.4		$	25.3		$	28.2		$	26.1
Alt-A		40.9			33.7			40.3			37.1
A minus and below		31.1			26.7			30.4			27.9
Seconds		27.8			28.4			28.2			25.7
Total	$	30.9		$	27.4		$	30.8		$	28.4
Loss ratio—GAAP Basis		87.2	%		37.2	%		72.8	%		36.1	%
Expense ratio—GAAP Basis (2)		22.5	%		26.9	%		24.7	%		27.7	%
		109.7	%		64.1	%		97.5	%		63.8	%
Reserve for losses by category (In thousands):
Prime	$	212,191		$	177,692
Alt-A		182,537			134,940
A minus and below		246,062			207,077
Pool insurance		37,531			33,149
Seconds		37,251			30,862
Other		1,004			8,806
Reserve for losses, net		716,576			592,526
Reinsurance recoverable		29,519	(1)		—
Total	$	746,095		$	592,526

(1) Reinsurance recoverable on a first-loss second lien captive.

(2) Excludes merger expenses.

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter and Six Months Ended and as of June 30, 2007

Exhibit M

	June 30 2007		December 31 2006		June 30 2006
Default Statistics
Primary insurance:
Flow
Prime
Number of insured loans	520,488		500,464		499,435
Number of loans in default	14,795		15,141		14,283
Percentage of loans in default	2.84	%	3.03	%	2.86	%
Alt-A
Number of insured loans	68,454		63,469		63,985
Number of loans in default	5,034		4,348		4,167
Percentage of loans in default	7.35	%	6.85	%	6.51	%
A minus and below
Number of insured loans	56,073		52,440		52,348
Number of loans in default	7,456		7,250		6,765
Percentage of loans in default	13.30	%	13.83	%	12.92	%
Total Flow
Number of insured loans	645,015		616,373		615,768
Number of loans in default	27,285		26,739		25,215
Percentage of loans in default	4.23	%	4.34	%	4.09	%
Structured
Prime
Number of insured loans	57,500		62,680		70,416
Number of loans in default	3,612		3,300		2,540
Percentage of loans in default	6.28	%	5.26	%	3.61	%
Alt-A
Number of insured loans	98,242		70,164		76,131
Number of loans in default	4,992		3,647		2,589
Percentage of loans in default	5.08	%	5.20	%	3.40	%
A minus and below
Number of insured loans	32,612		36,597		46,500
Number of loans in default	8,278		9,014		8,193
Percentage of loans in default	25.38	%	24.63	%	17.62	%
Total Structured
Number of insured loans	188,354		169,441		193,047
Number of loans in default	16,882		15,961		13,322
Percentage of loans in default	8.96	%	9.42	%	6.90	%
Total Primary Insurance
Prime
Number of insured loans	577,988		563,144		569,851
Number of loans in default	18,407		18,441		16,823
Percentage of loans in default	3.18	%	3.27	%	2.95	%
Alt-A
Number of insured loans	166,696		133,633		140,116
Number of loans in default	10,026		7,995		6,756
Percentage of loans in default	6.01	%	5.98	%	4.82	%
A minus and below
Number of insured loans	88,685		89,037		98,848
Number of loans in default	15,734		16,264		14,958
Percentage of loans in default	17.74	%	18.27	%	15.13	%
Total Primary Insurance
Number of insured loans	833,369		785,814		808,815
Number of loans in default	44,167	(1)	42,700	(1)	38,537	(1)
Percentage of loans in default	5.30	%	5.43	%	4.76	%
Pool insurance:
Number of loans in default	21,409	(2)	18,681	(2)	15,338	(2)

(1) Includes approximately 2,318, 1,161 and 551 defaults at June 30, 2007, December 31, 2006 and June 30, 2006, respectively, where reserves have not been established because no claim payment is currently anticipated.

(2) Includes approximately 16,101, 13,309 and 9,867 defaults at June 30, 2007, December 31, 2006 and June 30, 2006, respectively, where reserves have not been established because no claim payment is currently anticipated.

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter and Six Months Ended and as of June 30, 2007

Exhibit N

	Quarter Ended June 30						Six Months Ended June 30
	2007			2006			2007			2006
Net Premiums Written (In thousands)
Primary and Pool Insurance	$	184,492		$	187,686		$	376,600		$	381,132
Seconds		6,450			15,245			17,629			25,784
International		6,565			2,276			9,689			4,196
Net premiums written—insurance		197,507			205,207			403,918			411,112
Net premiums written—credit derivatives		19,533			11,843			35,411			29,704
Total Net Premiums Written	$	217,040		$	217,050		$	439,329		$	440,816
Net Premiums Earned (In thousands)
Primary and Pool Insurance	$	174,174		$	185,020		$	341,329		$	360,828
Seconds		8,723			13,848			17,895			28,758
International		2,691			1,773			6,607			4,026
Net premiums earned—insurance		185,588			200,641			365,831			393,612
Net premiums earned—credit derivatives		21,090			8,029			36,779			17,764
Total Net Premiums Earned	$	206,678		$	208,670		$	402,610		$	411,376
SMART HOME (In millions)
Ceded Premiums Written	$	3.2		$	2.9		$	6.4		$	5.1
Ceded Premiums Earned	$	3.1		$	2.8		$	6.0		$	5.2
Captives
Premiums ceded to captives (In millions)	$	30.0		$	24.3		$	58.1		$	47.2
% of total premiums		14.5	%		11.4	%		14.3	%		11.4	%
NIW subject to captives (In millions)	$	6,146		$	3,764		$	11,140		$	6,540
% of primary NIW		36.5	%		32.6	%		37.0	%		26.9	%
IIF included in captives (1)		34.6	%		32.1	%
RIF included in captives (1)		40.5	%		36.5	%
Persistency (twelve months ended June 30)		71.1	%		62.8	%
	June 30 2007			June 30 2006
SMART HOME
% of Primary RIF included in Smart Home Transactions (1)		7.4	%		11.8	%

(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.

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter Ended and as of June 30, 2007

ALT-A

Exhibit O

($ in millions)	Quarter Ended June 30								Six Months Ended June 30
	2007		%		2006		%		2007	%		2006	%
Primary New Insurance Written by FICO Score
<=619	$	84	1.2	%	$	17	0.4	%	92	0.6	%	23	0.2	%
620-659		1,090	15.1	%		550	11.4	%	1,679	11.6	%	1,259	12.8	%
660-679		1,221	16.9	%		754	15.6	%	2,386	16.4	%	1,388	14.1	%
680-739		3,383	46.8	%		2,369	49.1	%	7,023	48.3	%	4,693	47.7	%
>=740		1,448	20.0	%		1,131	23.5	%	3,352	23.1	%	2,480	25.2	%
Total	$	7,226	100.0	%	$	4,821	100.0	%	14,532	100.0	%	9,843	100.0	%
Primary Risk in Force by FICO Score
<=619	$	38	0.7	%	$	32	0.7	%
620-659		767	15.2	%		865	19.5	%
660-679		811	16.0	%		730	16.4	%
680-739		2,313	45.7	%		1,933	43.5	%
>=740		1,132	22.4	%		882	19.9	%
Total	$	5,061	100.0	%	$	4,442	100.0	%
Primary Risk in Force by LTV
95.01% and above	$	239	4.7	%	$	142	3.2	%
90.01% to 95.00%		1,299	25.7	%		1,309	29.5	%
85.01% to 90.00%		2,044	40.4	%		1,882	42.3	%
85.00% and below		1,479	29.2	%		1,109	25.0	%
Total	$	5,061	100.0	%	$	4,442	100.0	%
Primary Risk in Force by Policy Year
2003 and prior	$	721	14.2	%	$	1,064	24.0	%
2004		551	10.9	%		1,008	22.7	%
2005		966	19.1	%		1,391	31.3	%
2006		1,389	27.5	%		979	22.0	%
2007		1,434	28.3	%		—	—
Total	$	5,061	100.0	%	$	4,442	100.0	%

Radian Group Inc.

Financial Services Supplemental Information

For the Quarter and Six Months Ended and as of June 30, 2007

Exhibit P

	Quarter Ended June 30				Six Months Ended June 30
(In thousands )	2007		2006		2007			2006
Investment in Affiliates-Selected Information
C-BASS
Balance, beginning of period	$	444,591	$	387,043	$	451,395		$	364,364
Net income for period		23,209		44,855		16,405			74,881
Dividends received		—		16,547		—			23,894
Balance, end of period	$	467,800	$	415,351	$	467,800		$	415,351
Sherman
Balance, beginning of period	$	143,698	$	49,608	$	167,412		$	81,753
Net income for period		26,298		27,182		55,874			55,497
Dividends received		—		—		51,512			60,515
Other comprehensive income		1,741		—		(37	)		55
Balance, end of period	$	171,737	$	76,790	$	171,737		$	76,790
Portfolio Information:
C-BASS
Servicing portfolio	$	58,100,000	$	56,460,000
Total assets		6,619,605		6,289,258
Servicing income		48,621		40,199	$	91,747		$	71,547
Net interest income		66,572		69,872		145,424			134,912
Total revenues		101,099		171,891		140,080			300,204
Sherman
Total assets	$	1,778,299	$	1,058,989
Total revenues	$	272,449	$	253,168	$	529,920		$	493,570

Radian owns a 46% interest in C-BASS and an 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.

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 demand or mortgage originations, changes in housing values, population trends and changes in household formation patterns, changes in unemployment rates, changes or volatility in interest rates, consumer confidence, or changes in credit spreads; 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 or the influence of large customers; 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; legal and other limitations on the amount of dividends we may receive from our insurance subsidiaries; international expansion of our mortgage insurance and financial guaranty businesses into new markets and risks associated with our international business activities; and risks and uncertainties associated with our proposed merger with MGIC Investment Corporation, including, without limitation: the ability to complete the transaction on the proposed terms and schedule; the risk that the two companies and their businesses will not be integrated successfully; customer attrition and disruption from the transaction making it more difficult to maintain relationships with customers, employees or other business relationships; 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; the risk that potential sales of assets in connection with the merger may

negatively impact the financial performance of the combined company; and the possibility that the merger may not be completed, whether due to the failure to receive the requisite regulatory approvals or otherwise, which may have an adverse effect on our customers, employees and other business relationships, and may have a materially adverse impact on our financial results and prospects. 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, 2006 and in the joint proxy statement/prospectus for our 2007 annual meeting. We caution you not to place undue reliance on these forward-looking statements, which are current only as of the date of this news release. 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.