Radian (RDN) 8-K Radian Reports First Quarter Financial Results

Exhibit 99.1

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

Radian Reports First Quarter Financial Results

PHILADELPHIA, May 5, 2009—Radian Group Inc. (NYSE: RDN) today reported a net loss for the quarter ended March 31, 2009, of $217.4 million, or $2.69 per diluted share. This compares to net income of $195.6 million, or $2.44 per diluted share, for the prior year quarter. Book value per share at March 31, 2009, was $22.12.

“Our net loss in the first quarter was primarily attributable to unrealized mark to market losses on derivatives and the continued increase in mortgage insurance defaults. Despite facing difficult operating conditions, we believe that our mortgage insurance franchise remains strong with sufficient capital to continue writing quality new business throughout 2009,” said S. A. Ibrahim, Chief Executive Officer of Radian. “The private mortgage insurance industry continues to play a vital role in the recovery of the U.S. housing market. While we continue to see disruption and uncertainty in the marketplace, Radian is prudently managing through the present downturn and positioning for the future, while working diligently to support homeowners and provide liquidity to the mortgage marketplace.”

FIRST QUARTER HIGHLIGHTS

— The unrealized loss on derivatives represented $284.4 million of the total pre-tax loss of $334.4 million.

— The mortgage insurance provision for losses of $322 million reflects the continued increase in the primary first lien default rate, which rose to 13.2% at the end of the first quarter.

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— First quarter mortgage insurance claims paid were below expectations at $152 million for first liens and $88 million for second liens. The Company anticipates an increase in claims paid for first liens throughout 2009 as new and existing defaults move to claim and certain foreclosure moratoriums expire. Second quarter MI claims paid are expected to be approximately $300 million and the Company is reducing its full year estimated range to $1.2 to $1.4 billion.

— As a result of reduced mortgage origination volume and the Company’s move to a more traditional high quality focus, total primary new mortgage insurance written during the first quarter was $5.6 billion, 99.8 percent of which was prime credit quality.

— Radian’s loss management initiatives remain a critical priority to its capital preservation.

— The GSE charter remains unchanged and Radian Guaranty retains its eligibility status with the GSEs through frequent and proactive collaboration and demonstration of its capital position.

— Radian Asset Assurance Inc. (Radian Asset), the Company’s principal financial guaranty subsidiary, continues to serve as an important source of capital support for Radian Guaranty Inc. (Radian Guaranty), the Company’s principal mortgage insurance subsidiary, and is expected to continue to provide our core mortgage insurance business with cash infusions over time. Radian Asset had $1 billion in statutory capital and total claims-paying resources of $2.8 billion as of March 31, 2009.

— Radian has a 29 percent ownership interest in Sherman Financial and received $6.4 million in dividends from Sherman during the first quarter.

CONFERENCE CALL

Radian will discuss each of these items in its conference call today, Tuesday, May 5 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 atwww.radian.biz. The call may also be accessed by dialing 800-230-1096 inside the U.S., or 612-288-0337 for international callers, using passcode 997299 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 one week, using the following dial-in numbers and passcode: 800-475-6701 inside the U.S., or 320-365-3844 for international callers, passcode 997299.

About Radian

Radian Group Inc. (NYSE: RDN), headquartered in Philadelphia, provides private mortgage insurance and related risk management products and services to mortgage lenders nationwide through its principal operating subsidiary, Radian Guaranty Inc. These services help promote and preserve homeownership opportunities for homebuyers, while protecting lenders from default-related losses on residential first mortgages and facilitating the sale of low-downpayment mortgages in the secondary market. Additional information may be found atwww.radian.biz.

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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 March 31, 2009

Exhibit D: Segment Information Quarter Ended March 31, 2008

Exhibit E: Financial Guaranty Supplemental Information –
For the Quarter Ended and as of March 31, 2009

Exhibit F: Financial Guaranty Supplemental Information –
For the Quarter Ended and as of March 31, 2009

Exhibit G: Mortgage Insurance Supplemental Information –
For the Quarter Ended and as of March 31, 2009

New Insurance Written and Risk Written

Exhibit H: Mortgage Insurance Supplemental Information –
For the Quarter Ended and as of March 31, 2009

Insurance in Force and Risk in Force

Exhibit I: Mortgage Insurance Supplemental Information –
For the Quarter Ended and as of March 31, 2009

Risk in Force by LTV and Policy Year and other Risk in Force

Exhibit J: Mortgage Insurance Supplemental Information –
For the Quarter Ended and as of March 31, 2009

Claims and Reserves

Exhibit K: Mortgage Insurance Supplemental Information –
For the Quarter Ended and as of March 31, 2009

Default Statistics

Exhibit L: Mortgage Insurance Supplemental Information –
For the Quarter Ended and as of March 31, 2009

Net Premiums Written and Earned, Smart Home, Captives and Persistency

Exhibit M: Mortgage Insurance Supplemental Information –
For the Quarter Ended and as of March 31, 2009

Reinsurance Progression Toward Attachment – Summary by Book Year

Exhibit N: Mortgage Insurance Supplemental Information –
For the Quarter Ended and as of March 31, 2009

Modified Pool Risk in Force

Exhibit O: Mortgage Insurance Supplemental Information –
For the Quarter Ended and as of March 31, 2009

Alt-A Risk in Force

Exhibit P: Financial Services Supplemental Information –
For the Quarter Ended and as of March 31, 2009

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Radian Group Inc. and Subsidiaries

Condensed Consolidated Statements of Income

Exhibit A

	Quarter Ended March 31
(In thousands, except per-share data)	2009			2008
Revenues:
Net premiums written - insurance	$	156,756		$	244,306
Net premiums earned - insurance	$	211,215		$	241,921
Net investment income		56,283			65,979
Change in fair value of derivative instruments		(284,416	)		707,809
Net gains (losses) on other financial instruments		24,246			(54,884	)
Other income		4,132			3,614
Total revenues		11,460			964,439
Expenses:
Provision for losses		326,754			582,711
Provision for premium deficiency		(48,184	)		18,090
Policy acquisition costs		13,954			23,906
Other operating expenses		51,602			55,141
Interest expense		12,299			12,493
Total expenses		356,425			692,341
Equity in net income of affiliates		10,552			12,526
Pretax (loss) income		(334,413	)		284,624
Income tax (benefit) provision		(116,976	)		88,986
Net (loss) income	$	(217,437	)	$	195,638
Diluted net (loss) income per share (1)	$	(2.69	)	$	2.44
(1)    Weighted average shares outstanding (in thousands)
Average common shares outstanding		80,902			79,930
Increase in shares-common stock equivalents-diluted basis		—			110
Weighted average shares outstanding		80,902			80,040

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

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Radian Group Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

Exhibit B

(In thousands, except per-share data)	March 31 2009			December 31 2008
Assets:
Cash and investments	$	6,498,215		$	6,060,601
Investments in affiliates		103,291			99,712
Deferred policy acquisition costs		222,269			160,526
Prepaid federal income taxes		13,475			248,828
Derivative assets		169,993			179,515
Deferred income taxes, net		492,663			446,102
Reinsurance recoverables		537,359			492,359
Other assets		666,345			428,476
Total assets	$	8,703,610		$	8,116,119
Liabilities and stockholders’ equity:
Unearned premiums	$	1,152,552		$	916,724
Reserve for losses and loss adjustment expenses		3,332,642			3,224,542
Reserve for premium deficiency		38,677			86,861
Long-term debt and other borrowings		857,324			857,802
Variable interest entity debt		206,505			160,035
Derivative liabilities		741,638			519,260
Other liabilities		573,366			320,185
Total liabilities		6,902,704			6,085,409
Common stock		99			98
Additional paid-in capital		464,705			462,647
Retained earnings		1,511,719			1,766,946
Accumulated other comprehensive loss		(175,617	)		(198,981	)
Total common stockholders’ equity		1,800,906			2,030,710
Total liabilities and stockholders’ equity	$	8,703,610		$	8,116,119
Book value per share	$	22.12		$	25.06

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Radian Group Inc. and Subsidiaries

Segment Information

Quarter Ended March 31, 2009

Exhibit C

(In thousands)	Mortgage Insurance			Financial Guaranty			Financial Services		Total
Revenues:
Net premiums written - insurance	$	161,959		$	(5,203	)	$	—	$	156,756
Net premiums earned - insurance	$	177,883		$	33,332		$	—	$	211,215
Net investment income		31,345			24,938			—		56,283
Change in fair value of derivative instruments		(28,576	)		(255,840	)		—		(284,416	)
Net gains on other financial instruments		12,276			11,970			—		24,246
Other income		3,818			153			161		4,132
Total revenues		196,746			(185,447	)		161		11,460
Expenses:
Provision for losses		321,684			5,070			—		326,754
Provision for premium deficiency		(48,184	)		—			—		(48,184	)
Policy acquisition costs		5,739			8,215			—		13,954
Other operating expenses		35,694			15,833			75		51,602
Interest expense		5,694			6,605			—		12,299
Total expenses		320,627			35,723			75		356,425
Equity in net income of affiliates		—			—			10,552		10,552
Pretax (loss) income		(123,881	)		(221,170	)		10,638		(334,413	)
Income tax (benefit) provision		(35,084	)		(85,770	)		3,878		(116,976	)
Net (loss) income	$	(88,797	)	$	(135,400	)	$	6,760	$	(217,437	)
Cash and investments	$	4,141,601		$	2,356,614		$	—	$	6,498,215
Deferred policy acquisition costs		26,391			195,878			—		222,269
Total assets		5,241,881			3,344,269			117,460		8,703,610
Unearned premiums		319,785			832,767			—		1,152,552
Reserve for losses and loss adjustment expenses		3,116,553			216,089			—		3,332,642
Derivative liabilities		127,472			614,166			—		741,638

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Radian Group Inc. and Subsidiaries

Segment Information

Quarter Ended March 31, 2008

Exhibit D

(In thousands)	Mortgage Insurance			Financial Guaranty			Financial Services			Total
Revenues:
Net premiums written - insurance	$	211,251		$	33,055		$	—		$	244,306
Net premiums earned - insurance	$	204,265		$	37,656		$	—		$	241,921
Net investment income		38,845			27,120			14			65,979
Change in fair value of derivative instruments		71,769			636,040			—			707,809
Net losses on other financial instruments		(36,733	)		(18,149	)		(2	)		(54,884	)
Other income		3,491			121			2			3,614
Total revenues		281,637			682,788			14			964,439
Expenses:
Provision for losses		571,008			11,703			—			582,711
Provision for premium deficiency		18,090			—			—			18,090
Policy acquisition costs		13,460			10,446			—			23,906
Other operating expenses		34,170			20,738			233			55,141
Interest expense		7,090			5,154			249			12,493
Total expenses		643,818			48,041			482			692,341
Equity in net income of affiliates		—			—			12,526			12,526
Pretax (loss) income		(362,181	)		634,747			12,058			284,624
Income tax (benefit) provision		(135,725	)		219,219			5,492			88,986
Net (loss) income	$	(226,456	)	$	415,528		$	6,566		$	195,638
Cash and investments	$	4,224,913		$	2,516,072		$	—		$	6,740,985
Deferred policy acquisition costs		62,860			176,540			—			239,400
Total assets		5,001,689			3,133,958			118,378			8,254,025
Unearned premiums		365,161			709,428			—			1,074,589
Reserve for losses and loss adjustment expenses		1,741,169			160,959			—			1,902,128
Derivative liabilities		353,559			349,846			—			703,405

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Radian Group Inc.

Financial Guaranty Supplemental Information

For the Quarter Ended and as of March 31, 2009

Exhibit E

	Quarter Ended March 31
($ in thousands, except ratios)	2009			2008
Net Premiums Earned:
Public finance direct	$	14,452		$	17,810
Public finance reinsurance		8,366			9,870
Structured direct		1,777			3,882
Structured reinsurance		8,641			5,599
Trade credit reinsurance		96			495
Total Net Premiums Earned - insurance	$	33,332		$	37,656
Refundings included in earned premium	$	13,044		$	11,657
Claims paid:
Trade credit reinsurance	$	178		$	586
Financial Guaranty		14,909			103,524
Total	$	15,087		$	104,110	(2)
Loss ratio - GAAP Basis(1)		12.5	%		22.8	%
Expense ratio - GAAP Basis(1)		51.1	%		60.7	%
		63.6	%		83.5	%
Balance Sheet impact of initial adoption of SFAS No. 163 on January 1, 2009:
Increase in unearned premiums	$	(292,816	)
Increase in premiums receivable		161,422
Increase in deferred acquisition costs		66,006
Decrease in reserves for losses		8,163
Decrease in deferred taxes, net		20,239
Increase in premium taxes payable		(602	)
Decrease in equity	$	(37,588	)

(1) Ratios include premiums earned on credit derivatives which are included in change in fair value of derivative instruments in the amount of $13.7 million in each of the three month periods ended March 31, 2009 and 2008. Loss ratio includes loss on credit derivatives included in change in fair value of derivative instruments in the amount of $0.8 million for the period ended March 31, 2009.

(2) Includes a $100 million payment related to one credit that is a CDO of ABS that was fully reserved for in 2007.

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Radian Group Inc.

Financial Guaranty Supplemental Information

For the Quarter Ended and as of March 31, 2009

Exhibit F

($ in thousands, except ratios)	March 31 2009			December 31 2008		March 31 2008
Capital and surplus	$	1,000,387		$	968,197	$	1,097,250
Contingency reserve		484,899			515,023		464,655
Qualified statutory capital		1,485,286			1,483,220		1,561,905
Unearned premium reserve		702,190			729,274		882,627
Loss and loss expense reserve		104,220			82,340		58,207
Total statutory policyholders’ reserves		2,291,696			2,294,834		2,502,739
Present value of installment premiums		385,514			380,666		443,408
Soft capital facilities		150,000			150,000		150,000
Total statutory claims paying resources	$	2,827,210		$	2,825,500	$	3,096,147
Net debt service outstanding	$	134,341,161		$	138,430,925	$	165,931,040
Capital leverage ratio (1)		90			93		106
Claims paying leverage ratio (2)		48			49		54
Net par outstanding by product:
Public finance direct	$	18,455,372		$	17,836,221	$	18,460,669
Public finance reinsurance		33,494,951			31,578,163		44,404,128
Structured direct		45,699,943			46,001,355		47,634,388
Structured reinsurance		5,147,861			5,310,004		6,284,246
Total	$	102,798,127	(3)	$	100,725,743	$	116,783,431
Reserve for losses and LAE
Financial Guaranty	$	203,561		$	219,671	$	133,710
Trade Credit		12,528			14,877		27,249
	$	216,089		$	234,548	$	160,959

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

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

(3) Included in public finance net par outstanding is $3.6 billion for legally defeased bond issues where our financial guaranty policy has not been extinguished but cash or securities have been deposited in an escrow account for the benefit of bond holders. SFAS No. 163 requires that these contracts continue to be accounted for as outstanding contracts despite the elimination of substantially all risk.

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Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter Ended and as of March 31, 2009

Exhibit G

	Quarter Ended March 31
($ in millions)	2009			%		2008			%
Primary New Insurance Written
Flow	$	5,587		99.6	%	$	9,284		90.2	%
Structured		23		0.4	%		1,013		9.8	%
Total Primary	$	5,610		100.0	%	$	10,297		100.0	%
Flow
Prime	$	5,574		99.8	%	$	8,208		88.4	%
Alt-A		9		0.1	%		583		6.3	%
A minus and below		4		0.1	%		493		5.3	%
Total Flow	$	5,587		100.0	%	$	9,284		100.0	%
Structured
Prime	$	23		100.0	%	$	1,012		99.9	%
Alt-A		—		—			1		0.1	%
Total Structured	$	23		100.0	%	$	1,013		100.0	%
Total
Prime	$	5,597		99.8	%	$	9,220		89.5	%
Alt-A		9		0.1	%		584		5.7	%
A minus and below		4		0.1	%		493		4.8	%
Total Primary	$	5,610		100.0	%	$	10,297		100.0	%
Total Primary New Insurance Written by FICO Score
Flow
>=740	$	3,868		69.3	%	$	3,466		37.3	%
680-739		1,583		28.3	%		3,615		38.9	%
620-679		136		2.4	%		1,938		20.9	%
<=619		—		—			265		2.9	%
Total Flow	$	5,587		100.0	%	$	9,284		100.0	%
Structured
>=740	$	17		73.9	%	$	634		62.6	%
680-739		6		26.1	%		369		36.4	%
620-679		—		—			10		1.0	%
Total Structured	$	23		100.0	%	$	1,013		100.0	%
Total
>=740	$	3,885		69.3	%	$	4,100		39.8	%
680-739		1,589		28.3	%		3,984		38.7	%
620-679		136		2.4	%		1,948		18.9	%
<=619		—		—			265		2.6	%
Total Primary	$	5,610		100.0	%	$	10,297		100.0	%
Percentage of primary new insurance written
Refinances		48	%				40	%
95.01% LTV and above		0.1	%				20	%
ARMs
Less than 5 years		0.2	%				1	%
5 years and longer		0.4	%				6	%
Primary risk written
Flow	$	1,193		99.7	%	$	2,316		89.7	%
Structured		3		0.3	%		266		10.3	%
Total Primary	$	1,196		100.0	%	$	2,582		100.0	%

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Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter Ended and as of March 31, 2009

Exhibit H

	March 31					March 31
($ in millions)	2009			%		2008			%
Primary insurance in force
Flow	$	122,656		78.8	%	$	110,020		74.9	%
Structured		33,012		21.2	%		36,929		25.1	%
Total Primary	$	155,668		100.0	%	$	146,949		100.0	%
Prime	$	113,117		72.7	%	$	99,721		67.9	%
Alt-A		31,826		20.4	%		34,949		23.8	%
A minus and below		10,725		6.9	%		12,279		8.3	%
Total Primary	$	155,668		100.0	%	$	146,949		100.0	%
Primary risk in force
Flow	$	30,537		87.3	%	$	27,751		84.6	%
Structured		4,443		12.7	%		5,041		15.4	%
Total Primary	$	34,980		100.0	%	$	32,792		100.0	%
Flow
Prime	$	25,129		82.3	%	$	21,810		78.6	%
Alt-A		3,475		11.4	%		3,788		13.6	%
A minus and below		1,933		6.3	%		2,153		7.8	%
Total Flow	$	30,537		100.0	%	$	27,751		100.0	%
Structured
Prime	$	2,331		52.5	%	$	2,577		51.1	%
Alt-A		1,378		31.0	%		1,554		30.8	%
A minus and below		734		16.5	%		910		18.1	%
Total Structured	$	4,443		100.0	%	$	5,041		100.0	%
Total
Prime	$	27,460		78.5	%	$	24,387		74.4	%
Alt-A		4,853		13.9	%		5,342		16.3	%
A minus and below		2,667		7.6	%		3,063		9.3	%
Total Primary	$	34,980		100.0	%	$	32,792		100.0	%
Total Primary Risk in Force by FICO Score
Flow
>=740	$	9,839		32.2	%	$	7,570		27.3	%
680-739		11,234		36.8	%		10,269		37.0	%
620-679		8,002		26.2	%		8,262		29.8	%
<=619		1,462		4.8	%		1,650		5.9	%
Total Flow	$	30,537		100.0	%	$	27,751		100.0	%
Structured
>=740	$	1,205		27.1	%	$	1,293		25.6	%
680-739		1,394		31.4	%		1,517		30.1	%
620-679		1,167		26.3	%		1,380		27.4	%
<=619		677		15.2	%		851		16.9	%
Total Structured	$	4,443		100.0	%	$	5,041		100.0	%
Total
>=740	$	11,044		31.6	%	$	8,863		27.0	%
680-739		12,628		36.1	%		11,786		36.0	%
620-679		9,169		26.2	%		9,642		29.4	%
<=619		2,139		6.1	%		2,501		7.6	%
Total Primary	$	34,980		100.0	%	$	32,792		100.0	%
Percentage of primary risk in force
Refinances		31	%				31	%
95.01% LTV and above		22	%				24	%
ARMs
Less than 5 years		8	%				11	%
5 years and longer		9	%				9	%
Pool risk in force
Prime	$	2,058		70.7	%	$	2,113		70.6	%
Alt-A		289		9.9	%		292		9.7	%
A minus and below		564		19.4	%		590		19.7	%
Total	$	2,911		100.0	%	$	2,995		100.0	%

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Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter Ended and as of March 31, 2009

Exhibit I

	March 31				March 31
($ in millions)	2009		%		2008		%
Total Primary Risk in Force by LTV
85.00% and below	$	3,613	10.3	%	$	3,685	11.2	%
85.01% to 90.00%		12,571	35.9	%		11,102	33.9	%
90.01% to 95.00%		11,213	32.1	%		10,079	30.7	%
95.01% and above		7,583	21.7	%		7,926	24.2	%
Total	$	34,980	100.0	%	$	32,792	100.0	%
Total Primary Risk in Force by Policy Year
2005 and prior	$	11,083	31.7	%	$	13,213	40.2	%
2006		5,015	14.3	%		5,728	17.5	%
2007		10,410	29.8	%		11,300	34.5	%
2008		7,298	20.9	%		2,551	7.8	%
2009		1,174	3.3	%		—	—
Total	$	34,980	100.0	%	$	32,792	100.0	%
Total Pool Risk in Force by Policy Year
2005 and prior	$	2,367	81.3	%	$	2,456	82.0	%
2006		250	8.6	%		261	8.7	%
2007		235	8.1	%		250	8.4	%
2008		59	2.0	%		28	0.9	%
2009		—	—			—	—
Total Pool risk in Force	$	2,911	100.0	%	$	2,995	100.0	%
Other risk in force
Second-lien
1st loss	$	244			$	336
2nd loss		140				507
NIMS		431				522
International
1st loss-Hong Kong primary mortgage insurance		389				517
Reinsurance		170				125
Credit default swaps		3,072				8,872
Other
Domestic credit default swaps		123				212
Total other risk in force	$	4,569			$	11,091
Risk to capital ratio-Radian Guaranty only		17.6:1				11.4:1

Page 9

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter Ended and as of March 31, 2009

Exhibit J

	Quarter Ended March 31
($ in thousands)	2009			2008
Direct claims paid
Prime	$	69,459		$	60,658
Alt-A		46,270			35,732
A minus and below		36,730			48,361
Second-lien and other		87,607	(1)		45,437
Total	$	240,066		$	190,188
Average claim paid
Prime	$	41.9		$	36.8
Alt-A		53.5			49.6
A minus and below		38.1			37.2
Second-lien and other		41.3	(2)		34.6
Total	$	43.4	(2)	$	38.2
Loss ratio - GAAP Basis		179.8	%		264.7	%
Expense ratio - GAAP Basis		23.2	%		22.1	%
		203.0	%		286.8	%
Reserve for losses by category
Prime	$	921,050		$	479,653
Alt-A		951,932			598,706
A minus and below		452,837			391,426
Pool insurance		140,192			56,893
Second-lien		111,985			176,121
Other		1,780			1,485
Reserve for losses, net		2,579,776			1,704,284
Reinsurance recoverable		536,777	(3)		36,885
Total	$	3,116,553		$	1,741,169

(1) Includes a $65 million payment in Q1 ‘09 related to the settlement of certain second-lien transactions, which were fully reserved for at December 31, 2008.

(2) Excludes $65 million payment noted in (1) above.

(3) Reinsurance recoverable on ceded losses related to captives ($447 million) and Smart Home ($90 million).

Page 10

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter Ended and as of March 31, 2009

Exhibit K

	March 31 2009		December 31 2008		March 31 2008
Default Statistics
Primary insurance:
Flow
Prime
Number of insured loans	627,386		624,970		582,261
Number of loans in default	50,217		44,575		22,806
Percentage of loans in default	8.00	%	7.13	%	3.92	%
Alt-A
Number of insured loans	66,952		68,948		73,672
Number of loans in default	18,628		16,959		10,014
Percentage of loans in default	27.82	%	24.60	%	13.59	%
A minus and below
Number of insured loans	57,576		59,189		64,193
Number of loans in default	15,999		15,768		10,411
Percentage of loans in default	27.79	%	26.64	%	16.22	%
Total Flow
Number of insured loans	751,914		753,107		720,126
Number of loans in default	84,844		77,302		43,231
Percentage of loans in default	11.28	%	10.26	%	6.00	%
Structured
Prime
Number of insured loans	65,727		67,165		72,264
Number of loans in default	7,331		6,692		5,434
Percentage of loans in default	11.15	%	9.96	%	7.52	%
Alt-A
Number of insured loans	78,901		80,491		87,325
Number of loans in default	21,600		18,747		12,056
Percentage of loans in default	27.38	%	23.29	%	13.81	%
A minus and below
Number of insured loans	21,449		22,315		26,342
Number of loans in default	7,542		7,812		8,404
Percentage of loans in default	35.16	%	35.01	%	31.90	%
Total Structured
Number of insured loans	166,077		169,971		185,931
Number of loans in default	36,473		33,251		25,894
Percentage of loans in default	21.96	%	19.56	%	13.93	%
Total Primary Insurance
Prime
Number of insured loans	693,113		692,135		654,525
Number of loans in default	57,548		51,267		28,240
Percentage of loans in default	8.30	%	7.41	%	4.31	%
Alt-A
Number of insured loans	145,853		149,439		160,997
Number of loans in default	40,228		35,706		22,070
Percentage of loans in default	27.58	%	23.89	%	13.71	%
A minus and below
Number of insured loans	79,025		81,504		90,535
Number of loans in default	23,541		23,580		18,815
Percentage of loans in default	29.79	%	28.93	%	20.78	%
Total Primary Insurance
Number of insured loans	917,991		923,078		906,057
Number of loans in default	121,317		110,553		69,125
Percentage of loans in default (1)	13.22	%	11.98	%	7.63	%
Pool insurance:
Number of loans in default (2)	33,267		32,677		26,983

(1) Includes 627, 539 and 1,504 defaults at March 31, 2009, December 31, 2008 and March 31, 2008, respectively, where reserves have not been established because no claim payment is currently anticipated.

(2) Includes 20,454, 21,719 and 20,417 defaults at March 31, 2009, December 31, 2008 and March 31, 2008, respectively, where reserves have not been established because no claim payment is currently anticipated.

Page 11

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter Ended and as of March 31, 2009

Exhibit L

	Quarter Ended March 31
	2009			2008
Net Premiums Written (In thousands)
Primary and Pool Insurance	$	161,414		$	200,477
Second-lien		(86	)		3,481
International		631			7,293
Total Net Premiums Written - insurance	$	161,959		$	211,251
Net Premiums Earned (In thousands)
Primary and Pool Insurance	$	170,547		$	193,483
Second-lien		1,236			6,164
International		6,100			4,618
Total Net Premiums Earned - insurance	$	177,883		$	204,265
SMART HOME (In millions)
Ceded Premiums Written	$	2.7		$	3.2
Ceded Premiums Earned	$	2.7		$	3.2
1st Lien Captives
Premiums ceded to captives (In millions)	$	34.5		$	35.7
% of total premiums		16.6	%		15.4	%
NIW subject to captives (In millions)	$	1,041		$	3,986
% of primary NIW		18.6	%		38.7	%
IIF included in captives (1)		35.7	%		37.4	%
RIF included in captives (1)		43.4	%		42.2	%
Persistency (twelve months ended March 31)		87.0	%		77.5	%
	March 31 2009			March 31 2008
SMART HOME
% of Primary RIF included in Smart Home Transactions (1)		3.6	%		5.0	%

(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 12

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter Ended and as of March 31, 2009

Exhibit M

Reinsurance Progression Toward Attachment - Summary by Book Year (1)

($ in millions)				March 31 2009										December 31 2008 (5)
Book Year (2):	Original Book RIF		Progression to Attachment Point	Gross Current RIF		Ceded Current RIF(3)		Net Current RIF		Ever-to- Date Incurred Losses		Reinsurance Benefit (4)		Gross Current RIF		Ceded Current RIF(3)		Net Current RIF		Ever-to- Date Incurred Losses		Reinsurance Benefit (4)
Pre-2006			0-50%	$	837	$	454	$	383	$	183			$	1,120	$	558	$	562	$	239
Pre-2006			50-75%		970		395		575		154				942		349		593		142
Pre-2006			75-99%		1,117		388		729		162				1,084		397		687		160
Pre-2006			Attached		1,327		239		1,088		197	$	79		1,355		237		1,118		184	$	75
Pre-2006 Total	$	25,849		$	4,251	$	1,476	$	2,775	$	696	$	79	$	4,501	$	1,541	$	2,960	$	725	$	75
2006			0-50%	$	10	$	1	$	9	$	—			$	32	$	2	$	30	$	1
2006			50-75%		26		2		24		1				62		4		58		3
2006			75-99%		57		4		53		4				310		42		268		18
2006			Attached		2,296		312		1,984		326	$	167		2,074		270		1,804		290	$	161
2006 Total	$	3,527		$	2,389	$	319	$	2,070	$	331	$	167	$	2,478	$	318	$	2,160	$	312	$	161
2007			0-50%	$	20	$	1	$	19	$	—			$	31	$	2	$	29	$	—
2007			50-75%		11		1		10		—				225		12		213		8
2007			75-99%		267		18		249		14				71		7		64		3
2007			Attached		4,227		454		3,773		403	$	180		4,329		454		3,875		350	$	147
2007 Total	$	5,241		$	4,525	$	474	$	4,051	$	417	$	180	$	4,656	$	475	$	4,181	$	361	$	147
2008			0-50%	$	1,855	$	167	$	1,688	$	31			$	2,167	$	197	$	1,970	$	25
2008			50-75%		322		36		286		8				42		4		38		1
2008			75-99%		42		4		38		2				—		—		—		—
2008			Attached		186		15		171		19	$	12		190		15		175		16	$	9
2008 Total	$	2,564		$	2,405	$	222	$	2,183	$	60	$	12	$	2,399	$	216	$	2,183	$	42	$	9
2009			0-50%	$	159	$	7	$	152	$	—			$	—	$	—	$	—	$	—
2009			50-75%		—		—		—		—				—		—		—		—
2009			75-99%		—		—		—		—				—		—		—		—
2009			Attached		—		—		—		—	$	—		—		—		—		—	$	—
2009 Total	$	160		$	159	$	7	$	152	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Quota Share			0-50%	$	—	$	—	$	—	$	—			$	—	$	—	$	—	$	—
Quota Share			50-75%		—		—		—		—				—		—		—		—
Quota Share			75-99%		—		—		—		—				—		—		—		—
Quota Share			Attached		113		36		77		29	$	13		116		37		79		27	$	12
Quota Share Total	$	313		$	113	$	36	$	77	$	29	$	13	$	116	$	37	$	79	$	27	$	12
Total Captive (Including Quota Share)	$	37,654		$	13,842	$	2,534	$	11,308	$	1,533	$	451	$	14,150	$	2,587	$	11,563	$	1,467	$	404
SmartHome			0-50%	$	115	$	49	$	66	$	29			$	117	$	51	$	66	$	27
SmartHome			50-75%		—		—		—		—				—		—		—		—
SmartHome			75-99%		—		—		—		—				—		—		—		—
SmartHome			Attached		1,146		516		630		361	$	90		1,188		521		667		346	$	91
Total SmartHome	$	3,900		$	1,261	$	565	$	696	$	390	$	90	$	1,305	$	572	$	733	$	373	$	91

(1) Data presented in aggregate for all trusts for captives active at each period end only. Actual trust attachment and exit points vary by individual contract. Attachment is calculated at the contract/deal level and is based on Total Incurred Losses which are defined as claims paid ever-to-date plus loss reserves.

(2) Book year figures may include loans from additional periods pursuant to reinsurance agreement terms and conditions.

(3) Risk ceded to reinsurers based on individual contract terms.

(4) Captive Benefit is defined as ceded reserves at period end plus ever-to-date claims paid by the trust.

(5) Revised from December 31, 2008 originally presented.

Page 13

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter Ended and as of March 31, 2009

Exhibit N

	March31				March 31
($ in millions)	2009		%		2008		%
Modified Pool Risk in Force
Prime
2005 and prior	$	84	53.5	%	$	90	57.0	%
2006		47	29.9	%		44	27.8	%
2007		22	14.0	%		23	14.6	%
2008		4	2.6	%		1	0.6	%
Total	$	157	100.0	%	$	158	100.0	%
Alt-A
2005 and prior	$	194	29.3	%	$	212	31.0	%
2006		161	24.3	%		165	24.1	%
2007		304	45.8	%		304	44.5	%
2008		4	0.6	%		3	0.4	%
Total	$	663	100.0	%	$	684	100.0	%
A minus and below
2005 and prior	$	14	58.3	%	$	16	61.6	%
2006		3	12.5	%		3	11.5	%
2007		7	29.2	%		7	26.9	%
Total	$	24	100.0	%	$	26	100.0	%
Total
2005 and prior	$	292	34.6	%	$	318	36.6	%
2006		211	25.0	%		212	24.4	%
2007		333	39.5	%		334	38.5	%
2008		8	0.9	%		4	0.5	%
Total Modified Pool Risk in Force	$	844	100.0	%	$	868	100.0	%

Page 14

Radian Group Inc.

Mortgage Insurance Supplemental Information

For the Quarter Ended and as of March 31, 2009

ALT-A

Exhibit O

	Quarter Ended March 31
($ in millions)	2009		%		2008		%
Primary Risk in Force by FICO Score
>=740	$	1,192	24.5	%	$	1,286	24.1	%
680-739		2,335	48.1	%		2,540	47.6	%
660-679		712	14.7	%		793	14.8	%
620-659		582	12.0	%		686	12.8	%
<=619		32	0.7	%		37	0.7	%
Total	$	4,853	100.0	%	$	5,342	100.0	%
Primary Risk in Force by LTV
85.00% and below	$	1,249	25.7	%	$	1,373	25.7	%
85.01% to 90.00%		2,015	41.5	%		2,199	41.2	%
90.01% to 95.00%		1,256	25.9	%		1,398	26.2	%
95.01% and above		333	6.9	%		372	6.9	%
Total	$	4,853	100.0	%	$	5,342	100.0	%
Primary Risk in Force by Policy Year
2005 and prior	$	1,532	31.6	%	$	1,834	34.3	%
2006		1,076	22.2	%		1,225	22.9	%
2007		1,997	41.1	%		2,146	40.2	%
2008		246	5.1	%		137	2.6	%
2009		2	—			—	—
Total	$	4,853	100.0	%	$	5,342	100.0	%

Page 15

Radian Group Inc.

Financial Services Supplemental Information

For the Quarter Ended and as of March 31, 2009

Exhibit P

	Quarter Ended March 31
(In thousands)	2009			2008
Investment in Affiliates-Selected Information
Sherman
Balance, beginning of period	$	99,656		$	104,315
Net income for period		10,552			12,526
Dividends received		6,441			—
Other comprehensive (loss) income		(531	)		88
Balance, end of period	$	103,236		$	116,929
Portfolio Information:
Sherman
Total assets	$	2,149,767		$	2,383,119
Net revenues	$	348,034		$	391,968

Page 16

Forward Looking Statement

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:

• changes in general financial and political conditions, such as a deepening of the existing national economic recession, further decreases in housing demand, mortgage originations or housing values (in particular, further deterioration in the housing, mortgage and related credit markets, which would harm our future consolidated results of operations and could cause losses for our businesses to be worse than expected), a further reduction in the liquidity in the capital markets and further contraction of credit markets, further increases 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;

• Further economic changes or catastrophic events in geographic regions where our mortgage insurance or financial guaranty insurance in force is more concentrated;

• our ability to successfully execute upon our internally sourced capital plan (which depends, in part, on the performance of our financial guaranty portfolio), and if necessary, to obtain additional capital to support new business writings in our mortgage insurance business and our long-term liquidity needs and to protect our credit ratings and the financial strength ratings of Radian Guaranty Inc., our primary mortgage insurance subsidiary, from further downgrades;

• a further decrease in the volume of home mortgage originations due to reduced liquidity in the lending market, tighter underwriting standards and the on-going deterioration in housing markets throughout the U.S.;

• our ability to maintain adequate risk-to-capital ratios and surplus requirements in our mortgage insurance business in light of on-going losses in this business;

• the concentration of our mortgage insurance business among a relatively small number of large customers;

• disruption in the servicing of mortgages covered by our insurance policies;

• the aging of our mortgage insurance portfolio 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 Alternative-A (“Alt-A”) and subprime loans, and adjustable rate products, such as adjustable rate mortgages and interest-only mortgages, which have resulted in increased losses and are expected to result in further losses;

• reduced opportunities for loss mitigation in markets where housing values fail to appreciate or continue to decline;

• changes in persistency rates of our mortgage insurance policies caused by changes in refinancing activity, in the rate of appreciation or depreciation of home values and changes in the mortgage insurance cancellation requirements of mortgage lenders and investors;

• further downgrades or threatened downgrades of, or other ratings actions with respect to, our credit ratings or the ratings assigned by the major rating agencies to any of our rated insurance subsidiaries at any time (in particular, the credit rating of Radian Group Inc. and the financial strength ratings assigned to Radian Guaranty Inc.);

• heightened competition for our mortgage insurance business from others such as the Federal Housing Administration and the Veterans’ Administration or other private mortgage insurers (in particular those that have been assigned higher ratings from the major rating agencies);

• changes in the charters or business practices of Federal National Mortgage Association (“Fannie Mae”) and Freddie Mac, the largest purchasers of mortgage loans that we insure, and our ability to remain an eligible provider to both Freddie Mac and Fannie Mae;

• 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 outcome of existing investigations or the possibility of private lawsuits or other formal 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, (ii) legislative and regulatory changes affecting demand for private mortgage insurance, or (iii) legislation and regulatory changes limiting or restricting our use of (or requirements for) additional capital, the products we may offer, the form in which we may execute the credit protection we provide or the aggregate notional amount of any product we may offer for any one transaction or in the aggregate;

• 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 the premium deficiencies for our first- and 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;

• the ability of our primary insurance customers in our financial guaranty reinsurance business to provide appropriate surveillance and to mitigate losses adequately with respect to our assumed insurance portfolio;

• volatility in our earnings caused by changes in the fair value of our derivative instruments and our need to reevaluate the premium deficiencies in our mortgage insurance business on a quarterly basis;

• changes in accounting guidance from the Securities and Exchange Commission (“SEC”) or the Financial Accounting Standards Board;

• legal and other limitations on amounts we may receive from our subsidiaries as dividends or through tax and expense sharing arrangements with our subsidiaries; and

• the performance of our investment in Sherman Financial Group LLC, which could be negatively impacted if Sherman is unable to maintain sufficient sources of funding in the current credit environment.

We caution you not to place undue reliance on these forward-looking statements, which are current only as of the date on which we issued this news release. 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 of Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2008. We do not intend to, and we disclaim any duty or obligation to, update or revise any forward-looking statements made in this news release to reflect new information or future events or for any other reason.

SOURCE: Radian Group Inc.

###

Page 17