Radian (RDN) 8-K Results of Operations and Financial Condition

Exhibit 99.1

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

Contact:
For investors:	Terri Williams-Perry – phone: 215 231.1486 Email: terri.williams-perry@radian.biz
For the media:	Rick Gillespie – phone: 215 231.1061 Email: rick.gillespie@radian.biz
	Steve Frankel / Tim Lynch Joele Frank, Wilkinson Brimmer Katcher 212 355 4449

Radian Reports Fourth Quarter Net Loss of $618 Million

Company Maintains Strong Capital Position

PHILADELPHIA, February 15, 2008 - Radian Group Inc. (NYSE: RDN) today reported a net loss of $618 million and a diluted net loss per share of $7.74 for the fourth quarter, ended December 31, 2007. For the full year ended December 31, 2007, Radian reported a net loss of $1.2 billion and a diluted net loss per share of $14.92. Book value per share at December 31, 2007 was $35.10, after the impact of the third and fourth quarter 2007 losses, driven primarily by the C-BASS write-down, credit losses, higher reserves and mark-to-market adjustments.

“2007 was a year of great change for Radian, and I am proud that our team was able to overcome the challenges of unwinding the merger with MGIC while maintaining a solid balance sheet and retaining mortgage customer and GSE confidence,” said S.A. Ibrahim, Chief Executive Officer of Radian. “While our disappointing 2007 results clearly illustrate the challenges of the mortgage market, our franchise continues to be strong, which is a testament to the skills and dedication of our workforce.”

In the mortgage insurance business, paid claims in the fourth quarter were in-line with the Company’s guidance. During the quarter, mortgage insurance loss reserves continued to

1601 Market Street

Philadelphia, Pennsylvania

19103-2337

800 523.1988

215 564.6600

increase, reflecting the credit, housing and overall economic environment. Radian ended the year with $1.3 billion in mortgage insurance loss reserves.

“We have come through a difficult year and the environment continues to be very challenging,” added Mr. Ibrahim. “These challenges will remain with us for the near-term and may intensify, so we are looking at various scenarios and responses. In considering the book value of our company, we think it is important to take into consideration the significant embedded value within our Financial Guaranty business, as well as our ownership stake in Sherman.”

“Our claims paying resources in both business segments are strong and we stand to benefit from a stable and well-capitalized financial guaranty business,” concluded Mr. Ibrahim.

The market value of Radian’s investment portfolio at year-end was $6.41 billion compared to $5.75 billion a year ago.

The key financial highlights of the quarter and year ended December 31, 2007, are as follows:

			Total			Per Share
9/30/2007 Book Value			$	3.4B		$	42.86
	Pre-tax		After-tax impact			BV per share impact			EPS impact
C-BASS	($50	)		($33	)		($0.41	)	($0.41	)
Change in Fair Value of Derivatives*	(459	)		(298	)		(3.71	)	(3.73	)
Mortgage Insurance Incurred Losses	(630	)		(410	)		(5.10	)	(5.13	)
Second Lien Premium Deficiency	(41	)		(27	)		(0.34	)	(0.34	)

1601 Market Street

Philadelphia, Pennsylvania

19103-2337

800 523.1988

215 564.6600

FG Credit Loss for CDO of ABS transaction	(50	)		(33	)		(0.41	)	(0.41	)
All Other (Premiums, Investment Income and Expenses)				201			2.21
12/31/2007 Book Value			$	2.8B		$	35.10
Quarter Ended 12/31/2007 EPS									($7.74	)

* Includes ($120 Million) related to non-corporate CDO transactions, including a small number of AAA-rated CDOs of ABS and CMBS. This mark remains subject to possible adjustment.

Radian will discuss each of these items in its conference call today, Friday, February 15, 2008, at 10:00 a.m. Eastern time. The conference 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. The call may also be accessed by dialing 866-254-5941 inside the U.S., or 612-234-9959 for international callers, using passcode 907669 or by referencing Radian.

A replay of the webcast will be available at the Radian website approximately two hours after the live broadcast ends for a period of one year. A replay of the conference call will be available two and a half hours after the call ends for two weeks, using the following dial-in numbers and passcode: 800-475-6701 inside the U.S., or 320-365-3844 for international callers, passcode 907669.

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 credit-based consumer asset businesses. Additional information may be found atwww.radian.biz.

1601 Market Street

Philadelphia, Pennsylvania

19103-2337

800 523.1988

215 564.6600

Financial Results and Supplemental Information Contents (Unaudited)

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 December 31, 2007
Exhibit D:	Segment Information Quarter Ended December 31, 2006
Exhibit E:	Segment Information Twelve Months Ended December 31, 2007
Exhibit F:	Segment Information Twelve Months Ended December 31, 2006
Exhibit G:	Financial Guaranty Insurance Supplemental Information - Quarter Ended and as of December 31, 2007
Exhibit H:	Financial Guaranty Insurance Supplemental Information - Quarter Ended and as of December 31, 2007
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

Radian Group Inc. and Subsidiaries

Condensed Consolidated Statements of Income

Exhibit A

	Quarter Ended December 31					Year Ended December 31
(In thousands, except per-share data)	2007			2006		2007			2006
Revenues:
Net premiums written	$	309,620		$	278,700	$	1,184,885		$	1,111,985
Net premiums earned - insurance	$	234,368		$	217,570	$	912,281		$	907,042
Net premiums earned - credit derivatives		26,821			31,349		126,329			108,804
Net premiums earned - total		261,189			248,919		1,038,610			1,015,846
Net investment income		67,493			60,222		256,098			234,345
Net gains (losses) on securities		(673	)		11,255		53,606			40,842
Change in fair value of derivative instruments		(458,512	)		23,097		(1,191,785	)		16,066
Gain on sale of affiliates		—			—		181,734			—
Other income		192			4,391		11,711			20,847
Total revenues		(130,311	)		347,884		349,974			1,327,946
Expenses:
Provision for losses		687,855			84,389		1,299,363			369,278
Provision for second-lien premium deficiency		40,470			—		195,646			—
Policy acquisition costs		24,980			31,074		113,175			111,609
Other operating expenses		40,700			61,552		178,171			242,634
Merger expenses		—			—		14,001			—
Interest expense		14,258			12,256		53,068			48,149
Total expenses		808,263			189,271		1,853,424			771,670
Equity in net income (loss) of affiliates		(39,896	)		70,745		(416,541	)		256,993
Pretax (loss) income		(978,470	)		229,358		(1,919,991	)		813,269
Income tax (benefit) provision		(360,444	)		70,988		(732,651	)		231,097
Net (loss) income	$	(618,026	)	$	158,370	$	(1,187,340	)	$	582,172
Diluted net (loss) income per share (1)	$	(7.74	)	$	1.96	$	(14.92	)	$	7.08
(1)    Weighted average shares outstanding (in thousands)
Average common shares outstanding		79,850			79,923		79,556			81,338
Increase in shares-potential exercise of options-diluted basis		—			770		—			923
Weighted average shares outstanding (in thousands)		79,850			80,693		79,556			82,261

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)	December 31 2007		December 31 2006
Assets:
Cash and investments	$	6,611,836	$	5,803,228
Investments in affiliates		104,354		618,841
Deferred policy acquisition costs		234,955		221,769
Prepaid federal income taxes		793,486		808,740
Other assets		459,295		507,832
Total assets	$	8,203,926	$	7,960,410
Liabilities and stockholders’ equity:
Unearned premiums	$	1,094,710	$	943,687
Reserve for losses and loss adjustment expenses		1,598,756		842,283
Reserve for second-lien premium deficiency		195,646		—
Long-term debt and other borrowings		948,093		747,770
Current income taxes		137,219		—
Deferred income taxes		73,546		1,129,740
Derivative liabilities		1,150,479		31,739
Other liabilities		182,659		197,634
Total liabilities		5,381,108		3,892,853
Common stock		97		97
Additional paid-in capital		442,312		416,193
Retained earnings		2,284,150		3,489,290
Accumulated other comprehensive income		96,259		161,977
Total common stockholders’ equity		2,822,818		4,067,557
Total liabilities and stockholders’ equity	$	8,203,926	$	7,960,410
Book value per share	$	35.10	$	51.23
Treasury Stock Repurchases (Year-to-Date for Periods Presented)
Total number of shares repurchased		398,645		4,500,000
Average price paid per share	$	57.25	$	58.58
Total cost of repurchased shares	$	22,822,537	$	263,600,341

Page 2

Radian Group Inc. and Subsidiaries

Segment Information

Quarter Ended December 31, 2007

Exhibit C

(In thousands)	Mortgage Insurance			Financial Guaranty			Financial Services			Total
Revenues:
Net premiums written	$	255,292		$	54,328		$	—		$	309,620
Net premiums earned - insurance	$	200,430		$	33,938		$	—		$	234,368
Net premiums earned - credit derivatives		13,399			13,422			—			26,821
Net premiums earned - total		213,829			47,360			—			261,189
Net investment income		38,970			28,505			18			67,493
Net gains (losses) on securities		131			(1,468	)		664			(673	)
Change in fair value of derivative instruments		(61,882	)		(396,630	)		—			(458,512	)
Gain on sale of affiliates		—			—			—			—
Other income		1,980			(434	)		(1,354	)		192
Total revenues		193,028			(322,667	)		(672	)		(130,311	)
Expenses:
Provision for losses		629,582			58,273			—			687,855
Provision for second-lien premium deficiency		40,470			—			—			40,470
Policy acquisition costs		13,806			11,174			—			24,980
Other operating expenses		34,654			12,053			(6,007	)		40,700
Merger expenses		—			—			—			—
Interest expense		7,942			5,974			342			14,258
Total expenses		726,454			87,474			(5,665	)		808,263
Equity in net income (loss) of affiliates		—			5			(39,901	)		(39,896	)
Pretax loss		(533,426	)		(410,136	)		(34,908	)		(978,470	)
Income tax benefit		(198,806	)		(145,084	)		(16,554	)		(360,444	)
Net loss	$	(334,620	)	$	(265,052	)	$	(18,354	)	$	(618,026	)
Assets	$	5,077,001		$	3,020,835		$	106,090		$	8,203,926
Total investments		3,815,618			2,595,431			—			6,411,049
Deferred policy acquisition costs		62,266			172,689			—			234,955
Reserve for losses and loss adjustment expenses		1,345,453			253,304			—			1,598,757
Unearned premiums		364,775			729,935			—			1,094,710
Stockholders’ equity		1,590,832			1,111,218			120,768			2,822,818

Page 3

Radian Group Inc. and Subsidiaries

Segment Information

Quarter Ended December 31, 2006

Exhibit D

(In thousands)	Mortgage Insurance		Financial Guaranty			Financial Services		Total
Revenues:
Net premiums written	$	202,362	$	76,338		$	—	$	278,700
Net premiums earned - insurance	$	186,507	$	31,063		$	—	$	217,570
Net premiums earned - credit derivatives		12,700		18,649			—		31,349
Net premiums earned - total		199,207		49,712			—		248,919
Net investment income		34,947		25,268			7		60,222
Net gains (losses) on securities		11,956		(1,068	)		367		11,255
Change in fair value of derivative instruments		1,852		21,245			—		23,097
Other income		2,967		74			1,350		4,391
Total revenues		250,929		95,231			1,724		347,884
Expenses:
Provision for losses		80,328		4,061			—		84,389
Policy acquisition costs		20,628		10,446			—		31,074
Other operating expenses		43,278		13,680			4,594		61,552
Interest expense		6,581		4,278			1,397		12,256
Total expenses		150,815		32,465			5,991		189,271
Equity in net income of affiliates		—		—			70,745		70,745
Pretax income		100,114		62,766			66,478		229,358
Income tax provision		30,004		17,716			23,268		70,988
Net income	$	70,110	$	45,050		$	43,210	$	158,370
Assets	$	4,626,850	$	2,705,078		$	628,482	$	7,960,410
Total investments		3,426,939		2,318,438			—		5,745,377
Deferred policy acquisition costs		68,381		153,388			—		221,769
Reserve for losses and loss adjustment expenses		653,236		189,047			—		842,283
Unearned premiums		249,293		694,394			—		943,687
Stockholders’ equity		2,259,796		1,377,263			430,498		4,067,557

Page 4

Radian Group Inc. and Subsidiaries

Segment Information

Year Ended December 31, 2007

Exhibit E

(In thousands)	Mortgage Insurance			Financial Guaranty			Financial Services			Total
Revenues:
Net premiums written	$	955,113		$	229,772		$	—		$	1,184,885
Net premiums earned - insurance	$	779,259		$	133,022		$	—		$	912,281
Net premiums earned - credit derivatives		64,263			62,066						126,329
Net premiums earned - total		843,522			195,088		$	—			1,038,610
Net investment income		148,253			107,665			180			256,098
Net gains on securities		39,922			12,525			1,159			53,606
Change in fair value of derivative instruments		(531,842	)		(659,943	)		—			(1,191,785	)
Gain on sale of affiliates		—			—			181,734			181,734
Other income		11,337			349			25			11,711
Total revenues		511,192			(344,316	)		183,098			349,974
Expenses:
Provision for losses		1,201,373			97,990			—			1,299,363
Provision for second-lien premium deficiency		195,646			—			—			195,646
Policy acquisition costs		67,750			45,425			—			113,175
Other operating expenses		130,423			48,683			(935	)		178,171
Merger expenses		13,434			567			—			14,001
Interest expense		27,901			19,840			5,327			53,068
Total expenses		1,636,527			212,505			4,392			1,853,424
Equity in net income (loss) of affiliates		—			5			(416,546	)		(416,541	)
Pretax loss		(1,125,335	)		(556,816	)		(237,840	)		(1,919,991	)
Income tax benefit		(431,927	)		(217,588	)		(83,136	)		(732,651	)
Net loss	$	(693,408	)	$	(339,228	)	$	(154,704	)	$	(1,187,340	)

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Radian Group Inc. and Subsidiaries

Segment Information

Year Ended December 31, 2006

Exhibit F

(In thousands)	Mortgage Insurance		Financial Guaranty		Financial Services		Total
Revenues:
Net premiums written	$	849,111	$	262,874	$	—	$	1,111,985
Net premiums earned - insurance	$	774,752	$	132,290	$	—	$	907,042
Net premiums earned - credit derivatives		37,263		71,541		—		108,804
Net premiums earned - total		812,015		203,831		—		1,015,846
Net investment income		138,310		95,895		140		234,345
Net gains on securities		30,163		7,827		2,852		40,842
Change in fair value of derivative instruments		3,682		12,384		—		16,066
Other income		13,075		692		7,080		20,847
Total revenues		997,245		320,629		10,072		1,327,946
Expenses:
Provision for losses		348,618		20,660		—		369,278
Policy acquisition costs		64,964		46,645		—		111,609
Other operating expenses		172,020		59,772		10,842		242,634
Interest expense		26,623		16,590		4,936		48,149
Total expenses		612,225		143,667		15,778		771,670
Equity in net income of affiliates		—		—		256,993		256,993
Pretax income		385,020		176,962		251,287		813,269
Income tax provision		102,266		40,880		87,951		231,097
Net income	$	282,754	$	136,082	$	163,336	$	582,172

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Radian Group Inc.

Financial Guaranty Supplemental Information

For the Quarter and Year Ended and as of December 31, 2007

Exhibit G

	Quarter Ended December 31						Year Ended December 31
($ in thousands, except ratios)	2007			2006			2007			2006
Net Premiums Written:
Public finance direct	$	11,461		$	30,302		$	60,117		$	79,655
Public finance reinsurance		19,739			20,526			86,821			81,065
Structured direct		4,567			4,168			16,594			18,772
Structured reinsurance		5,327			5,902			21,933			18,676
Trade credit reinsurance		214			245			1,264			4,599
Net premiums written - insurance		41,308			61,143			186,729			202,767
Net premiums written - credit derivatives		13,020			15,195			43,043			60,107
Total Net Premiums Written	$	54,328		$	76,338		$	229,772		$	262,874
Net Premiums Earned:
Public finance direct	$	13,459		$	9,136		$	45,770		$	32,517
Public finance reinsurance		10,770			9,509			44,667			37,765
Structured direct		3,878			4,757			17,325			19,446
Structured reinsurance		5,461			5,467			22,957			21,086
Trade credit reinsurance		370			2,194			2,303			21,476
Net premiums earned - insurance		33,938			31,063			133,022			132,290
Net premiums earned - credit derivatives		13,422			18,649			62,066			71,541
Total Net Premiums Earned	$	47,360		$	49,712		$	195,088		$	203,831
Refundings included in earned premium	$	7,492		$	3,111		$	23,309		$	11,778
Claims paid:
Trade credit reinsurance	$	1,557		$	1,338		$	8,579		$	15,144
Other financial guaranty		10,602			248			12,814			7,529
Conseco		2,667			3,513			11,449			15,763
Total	$	14,826		$	5,099		$	32,842		$	38,436
Incurred losses:
Trade credit reinsurance	$	(2,967	)	$	(30	)	$	(16,511	)	$	4,991
Other financial guaranty		61,240			4,091			114,501			16,701
Conseco		—			—			—			(1,032	)(2)
Total	$	58,273		$	4,061		$	97,990		$	20,660
Loss ratio - GAAP Basis		123.0	%		8.2	%		50.2	%		10.1	%
Expense ratio - GAAP Basis (1)		49.0	%		48.5	%		48.2	%		52.2	%
		172.0	%		56.7	%		98.4	%		62.3	%
Net (receipts) payments under derivatives contracts	$	(255	)	$	(729	)	$	(31,188	)	$	63,548

(1) Excludes merger expenses

(2) Resulted from favorable loss development

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Radian Group Inc.

Financial Guaranty Supplemental Information

For the Quarter and Year Ended and as of December 31, 2007

Exhibit H

($ in thousands, except ratios)	December 31 2007			December 31 2006
Capital and surplus	$	1,158,537		$	1,014,958
Contingency reserve		433,296			336,719
Qualified statutory capital		1,591,833			1,351,677
Unearned premium reserve		886,024			829,340
Loss and loss expense reserve		61,038			96,829
Total statutory policyholders’ reserves		2,538,895			2,277,846
Present value of installment premiums		461,806			345,565
Reinsurance and soft capital facilities		150,000			150,000
Total statutory claims paying resources	$	3,150,701		$	2,773,411
Net debt service outstanding	$	164,346,659		$	143,728,116
Capital leverage ratio (1)		103			106
Claims paying leverage ratio (2)		52			52
Net par outstanding by product:
Public finance direct	$	18,228,946		$	16,324,170
Public finance reinsurance		43,822,781			37,488,972
Structured direct		47,878,168			44,960,360
Structured reinsurance		6,091,717			5,192,122
Total	$	116,021,612		$	103,965,624
Reinsurance business net par outstanding:
Treaty		59	%		59	%
Facultative		41	%		41	%
Reserve for losses and LAE
Specific	$	26,791		$	35,320
Conseco		22,526			33,975
Non-specific		203,987			119,752
Total	$	253,304		$	189,047

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

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

Page 8

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter and Year Ended and as of December 31, 2007

Exhibit I

	Quarter Ended December 31										Year Ended December 31
	2007			%		2006			%		2007			%		2006			%
Primary New Insurance Written ($ in millions)
Flow	$	10,422		76.7	%	$	6,451		85.2	%	$	40,335		70.6	%	$	25,364		63.2	%
Structured		3,174		23.3	%		1,123		14.8	%		16,797		29.4	%		14,753		36.8	%
Total Primary	$	13,596		100.0	%	$	7,574		100.0	%	$	57,132		100.0	%	$	40,117		100.0	%
Flow
Prime	$	8,629		82.8	%	$	4,608		71.4	%	$	29,800		73.9	%	$	18,578		73.2	%
Alt-A		832		8.0	%		1,276		19.8	%		6,847		17.0	%		4,836		19.1	%
A minus and below		961		9.2	%		567		8.8	%		3,688		9.1	%		1,950		7.7	%
Total Flow	$	10,422		100.0	%	$	6,451		100.0	%	$	40,335		100.0	%	$	25,364		100.0	%
Structured
Prime	$	1,795		56.6	%	$	341		30.4	%	$	3,436		20.5	%	$	4,000		27.1	%
Alt-A		1,378		43.4	%		685		61.0	%		12,515		74.5	%		9,222		62.5	%
A minus and below		1		0.0	%		97		8.6	%		846		5.0	%		1,531		10.4	%
Total Structured	$	3,174		100.0	%	$	1,123		100.0	%	$	16,797		100.0	%	$	14,753		100.0	%
Total
Prime	$	10,424		76.6	%	$	4,949		65.3	%	$	33,236		58.2	%	$	22,578		56.3	%
Alt-A		2,210		16.3	%		1,961		25.9	%		19,362		33.9	%		14,058		35.0	%
A minus and below		962		7.1	%		664		8.8	%		4,534		7.9	%		3,481		8.7	%
Total Primary	$	13,596		100.0	%	$	7,574		100.0	%	$	57,132		100.0	%	$	40,117		100.0	%
Total Primary New Insurance Written by FICO Score ($ in millions)
Flow
<=619	$	518		5.0	%	$	498		7.7	%	$	2,348		5.8	%	$	1,603		6.3	%
620-679		2,830		27.1	%		2,049		31.8	%		11,988		29.7	%		7,693		30.3	%
680-739		3,914		37.6	%		2,246		34.8	%		14,891		36.9	%		9,210		36.4	%
>=740		3,160		30.3	%		1,658		25.7	%		11,108		27.6	%		6,858		27.0	%
Total Flow	$	10,422		100.0	%	$	6,451		100.0	%	$	40,335		100.0	%	$	25,364		100.0	%
Structured
<=619	$	—		0.0	%	$	98		8.7	%	$	538		3.2	%	$	1,545		10.5	%
620-679		185		5.8	%		333		29.7	%		3,947		23.5	%		4,303		29.2	%
680-739		963		30.3	%		428		38.1	%		7,123		42.4	%		5,760		39.0	%
>=740		2,026		63.9	%		264		23.5	%		5,189		30.9	%		3,145		21.3	%
Total Structured	$	3,174		100.0	%	$	1,123		100.0	%	$	16,797		100.0	%	$	14,753		100.0	%
Total
<=619	$	518		3.8	%	$	596		7.9	%	$	2,886		5.1	%	$	3,148		7.9	%
620-679		3,015		22.2	%		2,382		31.4	%		15,935		27.9	%		11,996		29.9	%
680-739		4,877		35.9	%		2,674		35.3	%		22,014		38.5	%		14,970		37.3	%
>=740		5,186		38.1	%		1,922		25.4	%		16,297		28.5	%		10,003		24.9	%
Total Primary	$	13,596		100.0	%	$	7,574		100.0	%	$	57,132		100.0	%	$	40,117		100.0	%
Percentage of primary new insurance written
Refinances		27	%				38	%				37	%				35	%
95.01% LTV and above		32	%				24	%				25	%				15	%
ARMs
Less than 5 years		1	%				16	%				13	%				24	%
5 years and longer		14	%				7	%				11	%				14	%
Primary risk written ($ in millions)
Flow	$	2,684		77.9	%	$	1,590		91.8	%	$	10,325		85.3	%	$	6,386		82.0	%
Structured		763		22.1	%		142		8.2	%		1,785		14.7	%		1,404		18.0	%
Total Primary	$	3,447		100.0	%	$	1,732		100.0	%	$	12,110		100.0	%	$	7,790		100.0	%
Pool risk written (In millions)	$	34				$	26				$	261				$	359
Other risk written (In millions)
Seconds
1st loss	$	—				$	4				$	9				$	47
2nd loss		—					27					21					233
NIMs		—					264					377					502
International
1st loss-Hong Kong primary mortgage insurance		34					34					130					65
Reinsurance		18					14					67					21
Other
Domestic credit default swaps		—					—					—					32
Total other risk written	$	52				$	343				$	604				$	900

Page 9

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter and Year Ended and as of December 31, 2007

Exhibit J

	December 31					December 31
	2007			%		2006			%
Primary insurance in force ($ in millions)
Flow	$	105,246		73.6	%	$	83,529		73.3	%
Structured		37,820		26.4	%		30,374		26.7	%
Total Primary	$	143,066		100.0	%	$	113,903		100.0	%
Prime	$	93,577		65.4	%	$	76,854		67.5	%
Alt-A		37,031		25.9	%		25,571		22.4	%
A minus and below		12,458		8.7	%		11,478		10.1	%
Total Primary	$	143,066		100.0	%	$	113,903		100.0	%
Primary risk in force ($ in millions)
Flow	$	26,531		83.9	%	$	20,724		81.9	%
Structured		5,091		16.1	%		4,587		18.1	%
Total Primary	$	31,622		100.0	%	$	25,311		100.0	%
Flow
Prime	$	20,616		77.7	%	$	16,283		78.6	%
Alt-A		3,810		14.4	%		2,880		13.9	%
A minus and below		2,105		7.9	%		1,561		7.5	%
Total Flow	$	26,531		100.0	%	$	20,724		100.0	%
Structured
Prime	$	2,116		41.5	%	$	1,903		41.5	%
Alt-A		1,978		38.9	%		1,354		29.5	%
A minus and below		997		19.6	%		1,330		29.0	%
Total Structured	$	5,091		100.0	%	$	4,587		100.0	%
Total
Prime	$	22,732		71.9	%	$	18,186		71.9	%
Alt-A		5,788		18.3	%		4,234		16.7	%
A minus and below		3,102		9.8	%		2,891		11.4	%
Total Primary	$	31,622		100.0	%	$	25,311		100.0	%
Total Primary Risk in Force by FICO Score ($ in millions)
Flow
<=619	$	1,639		6.2	%	$	1,342		6.5	%
620-679		8,059		30.4	%		6,391		30.8	%
680-739		9,773		36.8	%		7,556		36.5	%
>=740		7,060		26.6	%		5,435		26.2	%
Total Flow	$	26,531		100.0	%	$	20,724		100.0	%
Structured
<=619	$	936		18.4	%	$	1,331		29.0	%
620-679		1,490		29.3	%		1,619		35.3	%
680-739		1,488		29.2	%		1,095		23.9	%
>=740		1,177		23.1	%		542		11.8	%
Total Structured	$	5,091		100.0	%	$	4,587		100.0	%
Total
<=619	$	2,575		8.1	%	$	2,673		10.6	%
620-679		9,549		30.2	%		8,010		31.6	%
680-739		11,261		35.6	%		8,651		34.2	%
>=740		8,237		26.1	%		5,977		23.6	%
Total Primary	$	31,622		100.0	%	$	25,311		100.0	%
Percentage of primary risk in force
Refinances		31	%				33	%
95.01% LTV and above		24	%				18	%
ARMs
Less than 5 years		12	%				19	%
5 years and longer		10	%				9	%
Pool risk in force ($ in millions)
Prime	$	2,111		70.2	%	$	2,182		72.9	%
Alt-A		293		9.8	%		295		9.9	%
A minus and below		600		20.0	%		514		17.2	%
Total	$	3,004		100.0	%	$	2,991		100.0	%

Page 10

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter and Year Ended and as of December 31, 2007

Exhibit K

	December 31				December 31
	2007		%		2006		%
Total Primary Risk in Force by LTV ($ in millions)
95.01% and above	$	7,529	23.8	%	$	4,441	17.6	%
90.01% to 95.00%		9,674	30.6	%		8,005	31.6	%
85.01% to 90.00%		10,600	33.5	%		9,062	35.8	%
85.00% and below		3,819	12.1	%		3,803	15.0	%
Total	$	31,622	100.0	%	$	25,311	100.0	%
Total Primary Risk in Force by Policy Year ($ in millions)
2003 and prior	$	5,521	17.5	%	$	7,113	28.1	%
2004		3,350	10.6	%		4,565	18.1	%
2005		5,112	16.2	%		6,538	25.8	%
2006		6,016	19.0	%		7,095	28.0	%
2007		11,623	36.7	%		—	—
Total	$	31,622	100.0	%	$	25,311	100.0	%
Total Pool Risk in Force by Policy Year ($ in millions)
2003 and prior	$	1,723	57.4	%	$	1,758	58.8	%
2004		166	5.5	%		290	9.7	%
2005		595	19.8	%		651	21.7	%
2006		265	8.8	%		292	9.8	%
2007		255	8.5	%		—	—
Total Pool risk in Force	$	3,004	100.0	%	$	2,991	100.0	%
Other risk in force (In millions)
Seconds
1st loss	$	377			$	592
2nd loss		548				610
NIMs		604				592
International
1st loss-Hong Kong primary mortgage insurance		465				335
Reinsurance		103				47
Credit default swaps		8,202				7,897
Other
Domestic credit default swaps		212				212
Financial guaranty wrap		—				37
Total other risk in force	$	10,511			$	10,322
Risk to capital ratio-STAT Basis		14.4:1				10.4:1
Risk to capital ratio-STAT Basis excluding AAA-rated CDS		11.6:1				8.3:1

Page 11

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter and Year Ended and as of December 31, 2007

Exhibit L

	Quarter Ended December 31						Year Ended December 31
	2007			2006			2007			2006
Direct claims paid (In thousands)
Prime	$	53,203		$	28,903		$	164,155		$	117,471
Alt-A		35,203			16,654			105,858			64,018
A minus and below		46,966			25,996			150,098			93,662
Seconds and other		29,295			9,590			89,269			38,204
Total	$	164,667		$	81,143		$	509,380		$	313,355
Average claim paid (In thousands)
Prime	$	35.0		$	26.7		$	31.2		$	26.1
Alt-A		49.0			37.9			44.6			35.6
A minus and below		36.5			30.2			33.2			28.3
Seconds		38.6			29.2			31.9			26.8
Total	$	38.4		$	29.9		$	34.1		$	28.4
Loss ratio - GAAP Basis		294.4	%		40.3	%		142.4	%		42.9	%
Expense ratio - GAAP Basis (2)		22.7	%		32.1	%		23.5	%		29.2	%
		317.1	%		72.4	%		165.9	%		72.1	%
Reserve for losses by category (In thousands):
Prime	$	343,705		$	198,133
Alt-A		450,106			136,411
A minus and below		361,240			228,012
Pool insurance		54,394			31,116
Seconds		112,751			36,166
Other		1,268			1,635
Reserve for losses, net		1,323,464			631,473
Reinsurance recoverable		21,989	(1)		21,763	(1)
Total	$	1,345,453		$	653,236

(1) Reinsurance recoverable on ceded losses.

(2) Excludes merger expenses.

Page 12

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter and Year Ended and as of December 31, 2007

Exhibit M

	December 31 2007		December 31 2006
Default Statistics
Primary insurance:
Flow
Prime
Number of insured loans	565,563		500,464
Number of loans in default	20,632		15,141
Percentage of loans in default	3.65	%	3.03	%
Alt-A
Number of insured loans	74,559		63,469
Number of loans in default	7,980		4,348
Percentage of loans in default	10.70	%	6.85	%
A minus and below
Number of insured loans	63,853		52,440
Number of loans in default	10,087		7,250
Percentage of loans in default	15.80	%	13.83	%
Total Flow
Number of insured loans	703,975		616,373
Number of loans in default	38,699		26,739
Percentage of loans in default	5.50	%	4.34	%
Structured
Prime
Number of insured loans	64,789		62,680
Number of loans in default	4,707		3,300
Percentage of loans in default	7.27	%	5.26	%
Alt-A
Number of insured loans	97,526		70,164
Number of loans in default	8,783		3,647
Percentage of loans in default	9.01	%	5.20	%
A minus and below
Number of insured loans	28,747		36,597
Number of loans in default	8,659		9,014
Percentage of loans in default	30.12	%	24.63	%
Total Structured
Number of insured loans	191,062		169,441
Number of loans in default	22,149		15,961
Percentage of loans in default	11.59	%	9.42	%
Total Primary Insurance
Prime
Number of insured loans	630,352		563,144
Number of loans in default	25,339		18,441
Percentage of loans in default	4.02	%	3.27	%
Alt-A
Number of insured loans	172,085		133,633
Number of loans in default	16,763		7,995
Percentage of loans in default	9.74	%	5.98	%
A minus and below
Number of insured loans	92,600		89,037
Number of loans in default	18,746		16,264
Percentage of loans in default	20.24	%	18.27	%
Total Primary Insurance
Number of insured loans	895,037		785,814
Number of loans in default	60,848	(1)	42,700	(1)
Percentage of loans in default	6.80	%	5.43	%
Pool insurance:
Number of loans in default	26,526	(2)	18,681	(2)

(1) Includes approximately 2,595 and 1,161 defaults at December 31, 2007 and December 31, 2006 respectively, where reserves have not been established because no claim payment is currently anticipated.

(2) Includes approximately 20,193 and 13,309 defaults at December 31, 2007 and December 31, 2006, 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 Year Ended and as of December 31, 2007

Exhibit N

	Quarter Ended December 31						Year Ended December 31
	2007			2006			2007			2006
Net Premiums Written (In thousands)
Primary and Pool Insurance	$	223,372		$	162,875		$	835,961		$	723,213
Seconds		4,896			15,469			27,236			57,935
International		16,796			10,696			35,306			20,375
Net premiums written - insurance		245,064			189,040			898,503			801,523
Net premiums written - credit derivatives		10,228			13,322			56,610			47,588
Total Net Premiums Written	$	255,292		$	202,362		$	955,113		$	849,111
Net Premiums Earned (In thousands)
Primary and Pool Insurance	$	189,170		$	173,413		$	730,966		$	715,136
Seconds		7,579			11,564			32,744			52,588
International		3,681			1,530			15,549			7,028
Net premiums earned - insurance		200,430			186,507			779,259			774,752
Net premiums earned - credit derivatives		13,399			12,700			64,263			37,263
Total Net Premiums Earned	$	213,829		$	199,207		$	843,522		$	812,015
SMART HOME (In millions)
Ceded Premiums Written	$	1.3		$	3.5		$	11.0		$	12.0
Ceded Premiums Earned	$	2.1		$	3.7		$	11.4		$	12.3
Captives
Premiums ceded to captives (In millions)	$	33.2		$	25.4		$	121.6		$	96.7
% of total premiums		14.8	%		12.6	%		14.1	%		11.7	%
NIW subject to captives (In millions)	$	6,776		$	3,457		$	23,322		$	13,157
% of primary NIW		49.8	%		45.6	%		40.8	%		32.8	%
IIF included in captives (1)		36.5	%		34.1	%
RIF included in captives (1)		41.6	%		38.9	%
Persistency (twelve months ended December 31)		75.4	%		67.3	%
	December 31 2007			December 31 2006
SMART HOME
% of Primary RIF included in Smart Home Transactions (1)		5.3	%		10.1	%

(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 and Year Ended and as of December 31, 2007

ALT-A

Exhibit O

	Quarter Ended December 31								Year Ended December 31
($ in millions)	2007		%		2006		%		2007		%		2006		%
Primary New Insurance Written by FICO Score
<=619	$	3	0.1	%	$	3	0.2	%	$	110	0.6	%	$	28	0.2	%
620-659		43	1.9	%		208	10.6	%		1,889	9.7	%		1,600	11.4	%
660-679		94	4.3	%		351	17.9	%		2,783	14.4	%		2,019	14.4	%
680-739		785	35.5	%		903	46.0	%		9,158	47.3	%		6,756	48.0	%
>=740		1,285	58.2	%		496	25.3	%		5,422	28.0	%		3,655	26.0	%
Total	$	2,210	100.0	%	$	1,961	100.0	%	$	19,362	100.0	%	$	14,058	100.0	%
Primary Risk in Force by FICO Score
<=619	$	38	0.7	%	$	24	0.6	%
620-659		725	12.5	%		729	17.2	%
660-679		826	14.3	%		681	16.1	%
680-739		2,653	45.8	%		1,897	44.8	%
>=740		1,546	26.7	%		903	21.3	%
Total	$	5,788	100.0	%	$	4,234	100.0	%
Primary Risk in Force by LTV
95.01% and above	$	379	6.6	%	$	120	2.8	%
90.01% to 95.00%		1,668	28.8	%		1,237	29.2	%
85.01% to 90.00%		2,317	40.0	%		1,832	43.3	%
85.00% and below		1,424	24.6	%		1,045	24.7	%
Total	$	5,788	100.0	%	$	4,234	100.0	%
Primary Risk in Force by Policy Year
2003 and prior	$	641	11.1	%	$	846	20.0	%
2004		461	8.0	%		712	16.8	%
2005		846	14.6	%		1,157	27.3	%
2006		1,273	22.0	%		1,519	35.9	%
2007		2,567	44.3	%		—	—
Total	$	5,788	100.0	%	$	4,234	100.0	%

Page 15

Radian Group Inc.

Financial Services Supplemental Information

For the Quarter and Year Ended and as of December 31, 2007

Exhibit P

	Quarter Ended December 31					Year Ended December 31
(In thousands )	2007		2006			2007			2006
Investment in Affiliates-Selected Information
C-BASS
Balance, beginning of period		—	$	431,472		$	451,395		$	364,364
Net income (loss) for period		—		31,598			(451,395	)		133,900
Dividends received		—		11,675			—			46,869
Balance, end of period	$	—	$	451,395		$	—		$	451,395
Sherman
Balance, beginning of period	$	94,110	$	129,064		$	167,412		$	81,753
Net income for period		10,098		39,146			84,848			123,835
Dividends received		—		—			51,512			103,740
Other comprehensive income (loss)		107		(798	)		(567	)		(743	)
(Sale) purchase of ownership interest				—			(95,866	)		66,307
Balance, end of period	$	104,315	$	167,412		$	104,315		$	167,412
Portfolio Information:
C-BASS
Servicing portfolio		N/A	$	60,600,000
Total assets		N/A		8,799,261
Servicing income		N/A		40,589			N/A		$	142,407
Net interest income		N/A		73,836			N/A			285,844
Total revenues		N/A		144,479			N/A			571,162
Sherman
Total assets	$	2,242,087	$	1,213,049
Net revenues	$	379,320	$	329,293		$	1,259,933		$	1,059,381

Radian owns a 46% interest in C-BASS and a 21.8% interest in Sherman. Prior to September 2007, we owned 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.

Page 16

1601 Market Street

Philadelphia, Pennsylvania

19103-2337

800 523.1988

215 564.6600

All statements in this news release that address events, developments or results 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, which include, without limitation, projections regarding our future performance and financial condition are made on the basis of management’s current views and assumptions with respect to future events. 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. The forward-looking statements, as well as our prospects as a whole, are subject to risks and uncertainties, including the following: actual or perceived changes in general financial and political conditions, such as extended national or regional economic recessions, changes in housing demand or mortgage originations, changes in housing values (in particular, further deterioration in the housing, mortgage and related credit markets, which would harm our future consolidated results of operations and, if more severe than our current predictions, could cause our ultimate projected losses for our mortgage insurance business to be worse than expected), changes in the liquidity in the capital markets and the further contraction of credit markets, population trends and changes in household formation patterns, changes in unemployment rates, changes or volatility in interest rates or consumer confidence, changes in credit spreads, changes in the way investors perceive the strength of private mortgage insurers or financial guaranty providers, investor concern over the credit quality and specific risks faced by the particular businesses, municipalities or pools of assets covered by our insurance; actual or perceived economic changes or catastrophic events in geographic regions (both domestic and international) where our mortgage insurance or financial guaranty insurance in force is more concentrated; our ability to successfully acquire additional capital in the event that capital is required to support our long-term liquidity needs and to protect our credit and financial strength ratings; a decrease in the volume of home mortgage originations due to reduced liquidity in the lending market, tighter underwriting standards and a deterioration in housing markets throughout the United States; the loss of a customer for whom we write a significant amount of mortgage insurance or financial guaranty insurance or the influence of large customers; disruption in the servicing of mortgages covered by our insurance policies; the aging of our mortgage insurance portfolio, which could cause losses to increase, and changes in severity or frequency of losses associated with certain of our products that are riskier than traditional mortgage insurance or financial guaranty insurance policies; the performance of our insured portfolio of higher risk loans, such as Alt-A and sub-prime loans, and adjustable rate products, such as adjustable rate mortgages and interest-only mortgages, which have resulted in increased losses in 2007 and may result in further losses; reduced opportunities for loss mitigation in markets where housing values fail to appreciate or begin to decline; changes in persistency rates of our mortgage insurance policies caused by changes in refinancing activity, appreciating or depreciating home values and changes in the mortgage insurance cancellation requirements of mortgage lenders and investors; downgrades or threatened downgrades of, or other ratings actions with respect to, our credit ratings or the insurance financial strength ratings assigned by the major rating agencies to any of our rated insurance subsidiaries at any time (in particular, our credit rating and the financial strength ratings of our mortgage insurance subsidiaries that are currently under review for possible downgrade); heightened competition for our mortgage insurance business from

1601 Market Street

Philadelphia, Pennsylvania

19103-2337

800 523.1988

215 564.6600

others such as the Federal Housing Administration and the Veterans’ Administration or other private mortgage insurers, from alternative products such as “80-10-10” loans or other forms of simultaneous second loan structures used by mortgage lenders, from investors using forms of credit enhancement other than mortgage insurance as a partial or complete substitution for private mortgage insurance and from mortgage lenders that demand increased participation in revenue sharing arrangements such as captive reinsurance arrangements; changes in the charters or business practices of Federal National Mortgage Association and Federal Home Loan Mortgage Corp., the largest purchasers of mortgage loans that we insure; heightened competition for financial guaranty business from other financial guaranty insurers, including those recently downgraded to ratings equal to or lower than our ratings, from other forms of credit enhancement such as letters of credit, guaranties and credit default swaps provided by foreign and domestic banks and other financial institutions and from alternative structures that may permit insurers to securitize assets more cost-effectively without the need for the types of credit enhancement we offer, or result in our having to reduce the premium we charge for our products; the application of existing federal or state consumer, lending, insurance, securities and other applicable laws and regulations, or changes in these laws and regulations or the way they are interpreted; including, without limitation: (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, 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, the premium deficiency for our second-lien mortgage insurance business or to estimate accurately the fair value amounts of derivative contracts in our mortgage insurance and financial guaranty businesses in determining gains and losses on these contracts; changes in accounting guidance from the Securities and Exchange Commission or the Financial Accounting Standards Board (in particular changes regarding income recognition and the treatment of loss reserves in the financial guaranty industries); our ability to profitably grow our insurance businesses in international markets, which depends on a number of factors such as foreign governments’ monetary policies and regulatory requirements, foreign currency exchange rate fluctuations, and our ability to develop and market products appropriate to foreign markets; legal and other limitations on the amount of dividends we may receive from our subsidiaries; and vulnerability to the performance of our strategic investments, including in particular, our investment in Sherman Financial Services Group LLC. For more information regarding these risks and uncertainties, as well as certain additional risks that we face, you 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 as well as the updates to these risks included in Item 1A of Part II of our quarterly report on Form 10-Q for the quarter ended September 30, 2007. 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. We do not intend to, and we disclaim any duty or obligation to, update or

1601 Market Street

Philadelphia, Pennsylvania

19103-2337

800 523.1988

215 564.6600

revise any forward-looking statements made in this report to reflect new information or future events or for any other reason.