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 Radian Announces Fourth Quarter and Full Year 2015 Financial Results
   Thursday, January 28, 2016 6:30:03 AM ET

--- Full year 2015 adjusted pretax operating income of $511 million or $1.40 per diluted share -

--- Book value per share increases 10% year-over-year to $12.07 -

Radian Group Inc. (RDN ) today reported net income for the quarter ended December 31, 2015, of $74.5 million, or $0.32 per diluted share. Net income for the full year 2015 was $286.9 million, or $1.22 per diluted share. GAAP net income for 2015 and 2014 are not directly comparable due to the significant impact in 2014 of the sale of Radian Asset Assurance Inc., Radian’s former financial guaranty subsidiary, and the reversal of the company’s deferred tax asset (DTA) valuation allowance.

                                                                                                                     
Key Financial Highlights (dollars in millions, except
per share data)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                           Quarter Ended         Quarter Ended                  Percent
                                                                                                                December 31, 2015                                           December 31, 2014                                                         Change
--------------------------------------------------------------------- -------------------- -------------------- ----------------- -------------------- -------------------- ----------------- -------------------- -------------------- --------------------
Net income from continuing operations                                                 $74.5                $878.0                    (92%)
--------------------------------------------------------------------- -------------------- -------------------- ----------------- -------------------- -------------------- ----------------- -------------------- -------------------- --------------------
Diluted net income per share from continuing operations                               $0.32                 $3.63                    (91%)
--------------------------------------------------------------------- -------------------- -------------------- ----------------- -------------------- -------------------- ----------------- -------------------- -------------------- --------------------
Adjusted pretax operating income                                                     $124.1                 $58.4                     113%
--------------------------------------------------------------------- -------------------- -------------------- ----------------- -------------------- -------------------- ----------------- -------------------- -------------------- --------------------
Adjusted diluted net operating income per share *                                     $0.34                 $0.17                     100%
--------------------------------------------------------------------- -------------------- -------------------- ----------------- -------------------- -------------------- ----------------- -------------------- -------------------- --------------------
Revenues                                                                             $274.9                $295.1                     (7%)
--------------------------------------------------------------------- -------------------- -------------------- ----------------- -------------------- -------------------- ----------------- -------------------- -------------------- --------------------
Net premiums earned - insurance                                                      $226.4                $224.3                       1%
--------------------------------------------------------------------- -------------------- -------------------- ----------------- -------------------- -------------------- ----------------- -------------------- -------------------- --------------------
Income (loss) on discontinued operations, net of tax                                     --              ($449.7)                       --
--------------------------------------------------------------------- -------------------- -------------------- ----------------- -------------------- -------------------- ----------------- -------------------- -------------------- --------------------
Income tax benefit resulting from reversal of DTA valuation allowance                    --                $815.6                       --
--------------------------------------------------------------------- -------------------- -------------------- ----------------- -------------------- -------------------- ----------------- -------------------- -------------------- --------------------
                                                                                                                                                                                                                                         
                                                              Year Ended            Year Ended                  Percent
                                                                                                                December 31, 2015                                           December 31, 2014                                                         Change
--------------------------------------------------------------------- -------------------- -------------------- ----------------- -------------------- -------------------- ----------------- -------------------- -------------------- --------------------
Net income from continuing operations                                                $281.5              $1,259.6                    (78%)
--------------------------------------------------------------------- -------------------- -------------------- ----------------- -------------------- -------------------- ----------------- -------------------- -------------------- --------------------
Diluted net income per share from continuing operations                               $1.20                 $5.44                    (78%)
--------------------------------------------------------------------- -------------------- -------------------- ----------------- -------------------- -------------------- ----------------- -------------------- -------------------- --------------------
Adjusted pretax operating income                                                     $510.9                $342.4                      49%
--------------------------------------------------------------------- -------------------- -------------------- ----------------- -------------------- -------------------- ----------------- -------------------- -------------------- --------------------
Adjusted diluted net operating income per share *                                     $1.40                 $1.01                      39%
--------------------------------------------------------------------- -------------------- -------------------- ----------------- -------------------- -------------------- ----------------- -------------------- -------------------- --------------------
Revenues                                                                           $1,193.3              $1,072.7                      11%
--------------------------------------------------------------------- -------------------- -------------------- ----------------- -------------------- -------------------- ----------------- -------------------- -------------------- --------------------
Net premiums earned - insurance                                                      $915.9                $844.5                       8%
--------------------------------------------------------------------- -------------------- -------------------- ----------------- -------------------- -------------------- ----------------- -------------------- -------------------- --------------------
Income (loss) on discontinued operations, net of tax                                   $5.4              ($300.1)                       --
--------------------------------------------------------------------- -------------------- -------------------- ----------------- -------------------- -------------------- ----------------- -------------------- -------------------- --------------------
Income tax benefit resulting from reversal of DTA valuation allowance                    --                $995.0                       --
--------------------------------------------------------------------- -------------------- -------------------- ----------------- -------------------- -------------------- ----------------- -------------------- -------------------- --------------------
Book value per share                                                                 $12.07                $10.98                      10%
--------------------------------------------------------------------- -------------------- -------------------- ----------------- -------------------- -------------------- ----------------- -------------------- -------------------- --------------------


* Adjusted diluted net operating income per share is calculated using the company’s statutory tax rate.

Adjusted pretax operating income for the quarter ended December 31, 2015, was $124.1 million, compared to $58.4 million for the same period of 2014. Adjusted diluted net operating income per share for the quarter ended December 31, 2015, was $0.34, compared to $0.17 for the same period of 2014. Adjusted pretax operating income for the year ended December 31, 2015, was $510.9 million, compared to $342.4 million for the same period of 2014. Adjusted diluted net operating income per share for the twelve months ended December 31, 2015, was $1.40, compared to $1.01 for the same period of 2014. See "Non-GAAP Financial Measures" below.

Book value per share at December 31, 2015, was $12.07, compared to $11.77 at September 30, 2015, and $10.98 at December 31, 2014.

"Radian’s fourth quarter was a strong finish to an equally strong full-year 2015," said Radian’s Chief Executive Officer S.A. Ibrahim. "We successfully grew adjusted pretax operating income by 49% year-over-year, wrote an amount of high-quality and profitable flow MI business that was among the highest in our company history, and improved the credit profile of our MI portfolio. I am pleased to say that we strongly believe Radian is better positioned today than ever before to drive long-term stockholder value."

FOURTH QUARTER AND FULL YEAR HIGHLIGHTS

Mortgage Insurance

-- New mortgage insurance written (NIW) was $41.4 billion for the full year 2015, compared to $37.3 billion for the prior-year period. NIW was $9.1 billion for the quarter, compared to $11.2 billion in the third quarter of 2015 and $10.0 billion in the prior-year quarter. -- Of the $9.1 billion in new business written in the fourth quarter of 2015, 29 percent was written with single premiums, compared to 27 percent in the third quarter of 2015.

-- Refinances accounted for 17 percent of total NIW in the fourth quarter of 2015, compared to 13 percent in the third quarter of 2015, and 22 percent a year ago.

-- NIW continued to consist of loans with excellent risk characteristics.

-- Total primary mortgage insurance in force as of December 31, 2015, grew to $175.6 billion, compared to $174.9 billion as of September 30, 2015, and $171.8 billion as of December 31, 2014. -- Persistency, which is the percentage of mortgage insurance in force that remains on the company’s books after a twelve-month period, was 78.8 percent as of December 31, 2015, compared to 79.2 percent as of September 30, 2015, and 84.2 percent as of December 31, 2014.

-- Annualized persistency for the three-months ended December 31, 2015, was 81.8 percent, compared to 80.5 percent for the three-months ended September 30, 2015, and 83.3 percent for the three-months ended December 31, 2014.

-- Total net premiums earned were $226.4 million for the quarter ended December 31, 2015, compared to $227.4 million for the quarter ended September 30, 2015, and $224.3 million for the quarter ended December 31, 2014.

-- The mortgage insurance provision for losses was $56.8 million in the fourth quarter of 2015, compared to $64.1 million in the third quarter of 2015, and $83.6 million in the prior-year period. -- The provision for losses in the fourth quarter included the positive impact of a reduction in the company’s default to claim rate assumption for new notices of default.

-- The loss ratio in the fourth quarter was 25.1 percent, compared to 28.2 percent in the third quarter of 2015 and 36.9 percent in the fourth quarter of 2014.

-- Mortgage insurance loss reserves were $976.4 million as of December 31, 2015, compared to $1,098.6 million as of September 30, 2015, and $1,560.0 million as of December 31, 2014.

-- Primary reserve per primary default (excluding IBNR and other reserves) was $24,019 as of December 31, 2015. This compares to primary reserve per primary default of $26,237 as of September 30, 2015, and $27,683 as of December 31, 2014. In addition to the reduction in the company’s default to claim rate assumption, the decrease in the primary reserve per primary default was the result of a change in the mix of defaults from aged defaults to less aged defaults, which require a comparatively smaller reserve.

-- The total number of primary delinquent loans decreased by 2 percent in the fourth quarter from the third quarter of 2015, and by 22 percent from the fourth quarter of 2014. The primary mortgage insurance delinquency rate decreased to 4.0 percent in the fourth quarter of 2015, compared to 4.1 percent in the third quarter of 2015, and 5.2 percent in the fourth quarter of 2014.

-- Total mortgage insurance claims paid were $176.5 million in the fourth quarter, compared to $169.1 million in the third quarter, and $117.2 million in the fourth quarter of 2014. For the full-year 2015, total claims paid were $764.7 million, compared to $838.3 million for the full-year 2014. Claims paid in 2015 included claims related to the September 2014 BofA Settlement Agreement. The company continues to expect claims paid for the full-year 2016 of approximately $400-450 million.

Mortgage and Real Estate Services

-- On June 30, 2014, Radian completed the acquisition of Clayton Holdings LLC, a leading provider of risk-based analytics, residential loan due diligence, consulting, surveillance and staffing solutions. The company also provides -- customized Real Estate Owned (REO) asset management and single-family rental services through its Green River Capital subsidiary;

-- advanced Automated Valuation Models, Broker Price Opinions and technology solutions to monitor loan portfolio performance, acquire and track non-performing loans, and value and sell residential real estate through its Red Bell Real Estate subsidiary;

-- valuation, title closing and settlement services as well as technology solutions for vendor management through its ValuAmerica subsidiary; and

-- a global reach through its Clayton EuroRisk subsidiary.

-- Total revenues were $157.4 million for the full year 2015, its first full year of operations as a subsidiary of Radian. Total revenues for the fourth quarter were $38.2 million, compared to $43.1 million for the third quarter of 2015, and $35.4 million for the fourth quarter of 2014.

-- Adjusted pretax operating income before corporate allocations for the quarter ended December 31, 2015, was $3.6 million, compared to $5.7 million for the quarter ended September 30, 2015, and $7.3 million for the quarter ended December 31, 2014. Earnings before interest, income taxes, depreciation and amortization (EBITDA) for the quarter ended December 31, 2015 was $4.2 million, compared to $6.3 million for the quarter ended September 30, 2015, and $7.7 million for the quarter ended December 31, 2014. You may find details regarding these non-GAAP measures and their definition in Exhibits E, F and G.

-- In October 2015, Clayton announced that it had acquired ValuAmerica, Inc., a national title agency and appraisal management company with coverage across all 3,143 counties in the U.S. In addition, the company’s award-winning technology platform, ValuNet xsp, helps mortgage lenders and their vendors streamline and manage their supply chains and operational workflow. The acquisition expands the scope of title and valuation services Clayton offers to its mortgage clients and is consistent with the company’s strategy of being a complete solution provider to the mortgage and real estate industries.

Consolidated Expenses

Other operating expenses were $59.6 million in the fourth quarter, compared to $65.1 million in the third quarter of 2015, and $85.8 million in the fourth quarter of last year.

-- Operating expenses for the fourth quarter of 2015 were comprised of $46.7 million for the Mortgage Insurance segment, compared to $51.5 million in the third quarter of 2015, and $76.3 million in the fourth quarter of last year.

-- Operating expenses for the fourth quarter of 2015 were comprised of $12.7 million for the Services segment, compared to $13.1 million in the third quarter of 2015, and $9.1 million in the fourth quarter of last year.

-- In the fourth quarter of 2014, other operating expenses of $85.8 million included $24.4 million related to long-term compensation expenses and other year-end bonus accruals, a significant portion of which was driven by the variable compensation expense related to an increase in the company’s stock price.

CAPITAL AND LIQUIDITY UPDATE

Radian Group has approximately $340 million of currently available liquidity.

-- As previously announced, Radian Guaranty met the Private Mortgage Insurer Eligibility Requirements (PMIERs) as of the December 31, 2015, effective date by taking the following actions: -- Radian Group transferred $325 million of cash and marketable securities to Radian Guaranty in exchange for a surplus note issued by Radian Guaranty. The surplus note has a 0 percent interest rate and is scheduled to mature on December 31, 2025. Based on positive trends reflected in its capital projections, Radian Guaranty expects to seek to redeem a portion and possibly all of the surplus note in 2016, and any remaining amounts in 2017. Any redemption of the surplus note increases holding company liquidity by the corresponding amount of the redemption.

-- Radian Group contributed $50 million to an exclusive affiliated reinsurer of Radian Guaranty. The combination of the surplus note and capital contribution provides Radian Guaranty with an initial cushion above the projected amount required to satisfy the PMIERs’ financial requirements. This cushion is expected to increase based in part on expected future financial performance at Radian Guaranty; as a result, Radian Guaranty is not expected to require any additional capital contributions in order to remain compliant.

-- In order to reduce the company’s required capital under PMIERs, Radian Guaranty is pursuing a reinsurance transaction that is intended to reduce the exposure on its single premium policies. The company has made substantial progress toward a potential transaction and may enter into such a program as early as the first quarter of 2016.

-- As of December 31, 2015, a total of $2.1 billion of risk in force outstanding had been ceded under quota share reinsurance agreements in order to proactively manage Radian Guaranty’s risk-to-capital position. Radian has ceded the maximum amount of NIW under these agreements and did not cede any premium on new business in 2015. On December 31, 2015, Radian Guaranty had the option to recapture a portion of the risk ceded under its existing Second Quota Share Reinsurance Transaction. The company chose not to recapture that risk and received a profit commission of approximately $8 million in 2015 based on performance to date. In addition, Radian Guaranty received an $8.5 million prepaid supplemental ceding commission, the recognition of which has been deferred and will be amortized over approximately the next five years.

-- As previously announced on January 15, 2016, Radian’s Board of Directors approved a share repurchase program that authorizes the company to purchase up to $100 million of its common stock through the end of 2016. The shares may be purchased in the open market or in privately negotiated transactions. The authorization provides Radian the flexibility to repurchase shares opportunistically from time to time, based on market and business conditions, stock price and other factors. Radian may utilize a Rule 10b5-1 plan, which would permit the company to purchase shares, at pre-determined price targets, when it may otherwise be precluded from doing so.

CONFERENCE CALL

Radian will discuss fourth quarter and year-end 2015 results in a conference call today, Thursday, January 28, 2016, at 10:00 a.m. Eastern time.

The conference call will be broadcast live over the Internet at http://www.radian.biz/page?name=Webcasts or at www.radian.biz. The call may also be accessed by dialing 800.288.8961 inside the U.S., or 612.332.0226 for international callers, using passcode 383877 or by referencing Radian.

A replay of the webcast will be available on 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 approximately two and a half hours after the call ends for a period of 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 383877.

In addition to the information provided in the company’s earnings news release, other statistical and financial information, which is expected to be referred to during the conference call, will be available on Radian’s website under Investors >Quarterly Results, or by clicking on http://www.radian.biz/page?name=QuarterlyResults .

NON-GAAP FINANCIAL MEASURES

Radian believes that adjusted pretax operating income and adjusted diluted net operating income per share (non-GAAP measures) facilitate evaluation of the company’s fundamental financial performance and provide relevant and meaningful information to investors about the ongoing operating results of the company. On a consolidated basis, these measures are not recognized in accordance with accounting principles generally accepted in the United States of America (GAAP) and should not be viewed as alternatives to GAAP measures of performance. The measures described below have been established in order to increase transparency for the purpose of evaluating the company’s core operating trends and enabling more meaningful comparisons with Radian’s competitors.

Adjusted pretax operating income is defined as earnings excluding the impact of certain items that are not viewed as part of the operating performance of the company’s primary activities, or not expected to result in an economic impact equal to the amount reflected in pretax income (loss) from continuing operations. Adjusted pretax operating income adjusts GAAP pretax income from continuing operations to remove the effects of: (i) net gains (losses) on investments and other financial instruments; (ii) loss on induced conversion and debt extinguishment; (iii) acquisition-related expenses; (iv) amortization and impairment of intangible assets; and (v) net impairment losses recognized in earnings. Adjusted diluted net operating income per share represents a diluted net income per share calculation using as its basis adjusted pretax operating income, net of taxes at the company’s statutory tax rate for the period.

In addition to the above non-GAAP measures for the consolidated company, the company also presents as supplemental information a non-GAAP measure for the Services segment, representing earnings before interest, income taxes, depreciation and amortization (EBITDA). Services EBITDA is calculated by using adjusted pretax operating income as described above, further adjusted to remove the impact of depreciation and corporate allocations for interest and operating expenses. Services EBITDA is presented to facilitate comparisons with other services companies, since it is a widely accepted measure of performance in the services industry.

See Exhibit F or Radian’s website for a description of these items, as well as Exhibit G for reconciliations to the most comparable consolidated GAAP measures.

ABOUT RADIAN

Radian Group Inc. (RDN ), headquartered in Philadelphia, provides private mortgage insurance, risk management products and real estate services to financial institutions. Radian offers products and services through two business segments:

-- Mortgage Insurance, through its principal mortgage insurance subsidiary Radian Guaranty Inc. This private mortgage insurance protects lenders from default-related losses, facilitates the sale of low-downpayment mortgages in the secondary market and enables homebuyers to purchase homes more quickly with downpayments less than 20%.

-- Mortgage and Real Estate Services, through its principal services subsidiary Clayton, as well as Green River Capital, Red Bell Real Estate and ValuAmerica. These solutions include information and services that financial institutions, investors and government entities use to evaluate, acquire, securitize, service and monitor loans and asset-backed securities.

Additional information may be found at www.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/page?name=FinancialReportsCorporate .

              
Exhibit A:                                           Condensed Consolidated Statements of Operations Trend Schedule
Exhibit B:                                           Net Income Per Share Trend Schedule
Exhibit C:                                           Condensed Consolidated Balance Sheets
Exhibit D:                                           Discontinued Operations
Exhibit E:                                           Segment Information
Exhibit F:                                           Definition of Consolidated Non-GAAP Financial Measure
Exhibit G:                                           Consolidated Non-GAAP Financial Measure Reconciliations
Exhibit H:                                           Mortgage Insurance Supplemental Information
                                                     New Insurance Written
Exhibit I:                                           Mortgage Insurance Supplemental Information
                                                     Primary Insurance in Force and Risk in Force by Product, Statutory
                                                     Capital Ratios
Exhibit J:                                           Mortgage Insurance Supplemental Information
                                                     Percentage of Primary Risk in Force by FICO, LTV and Policy Year
Exhibit K:                                           Mortgage Insurance Supplemental Information
                                                     Claims and Reserves
Exhibit L:                                           Mortgage Insurance Supplemental Information
                                                     Default Statistics
Exhibit M:                                           Mortgage Insurance Supplemental Information
                                                     Captives, QSR and Persistency
                                                      
 
Radian Group Inc. and Subsidiaries
Condensed Consolidated Statements of Operations Trend Schedule
Exhibit A (page 1 of 2)
 
                                                                                                                                                                                                                                                 2015                                                                                                                                                                                                          2014
                                                                                                            ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                          ---------------------------------------------------------
(In thousands, except per share amounts)                                                                                              Qtr 4                                                        Qtr 3                                                     Qtr 2                                                    Qtr 1                                                                                              Qtr 4
-----------------------------------------------------------------                                           ------------------------------------------------------                                             ------------------------------------------------------                                             -----------------------------------------------                                             ------------------------------------------------------                                             ------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
Revenues:
Net premiums earned - insurance                                                                                                $        226,443                                                                                   $        227,433                                                                                   $ 237,437                                                                                   $        224,595                                                                                   $        224,293
Services revenue                                                                                                                         37,493                                                                                             42,189                                                                                      43,503                                                                                             30,630                                                                                             34,450
Net investment income                                                                                                                    22,833                                                                                             22,091                                                                                      19,285                                                                                             17,328                                                                                             16,531
Net (losses) gains on investments and other financial instruments                                                                       (13,402 )                                                                                            3,868                                                                                      28,448                                                                                             16,779                                                                                             17,983
Other income                                                                                                           1,515                                                        1,711                                                 1,743                                                        1,331                                                        1,793  
                                                                                                            -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- ------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
     Total revenues                                                                                                  274,882                                                      297,292                                               330,416                                                      290,663                                                      295,050  
                                                                                                            -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- ------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
Expenses:
Provision for losses                                                                                                                     56,805                                                                                             64,192                                                                                      32,560                                                                                             45,028                                                                                             82,867
Policy acquisition costs                                                                                                                  4,831                                                                                              2,880                                                                                       6,963                                                                                              7,750                                                                                              6,443
Direct cost of services                                                                                                                  22,241                                                                                             24,949                                                                                      23,520                                                                                             19,253                                                                                             19,709
Other operating expenses                                                                                                                 59,570                                                                                             65,082                                                                                      67,731                                                                                             53,774                                                                                             85,800
Interest expense                                                                                                                         20,996                                                                                             21,220                                                                                      24,501                                                                                             24,385                                                                                             24,200
Loss on induced conversion and debt extinguishment                                                                                        2,320                                                                                                 11                                                                                      91,876                                                                                     --                                                                                     --
Amortization and impairment of intangible assets                                                                       3,409                                                        3,273                                                 3,281                                                        3,023                                                        5,354  
                                                                                                            -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- ------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
     Total expenses                                                                                                  170,172                                                      181,607                                               250,432                                                      153,213                                                      224,373  
                                                                                                            -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- ------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
Pretax income from continuing operations                                                                                                104,710                                                                                            115,685                                                                                      79,984                                                                                            137,450                                                                                             70,677
Income tax provision (benefit)                                                                                        30,182                                                       45,594                                                34,791                                                       45,723                                                     (807,349 )
                                                                                                            -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- ------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
Net income from continuing operations                                                                                                    74,528                                                                                             70,091                                                                                      45,193                                                                                             91,727                                                                                            878,026
Income (loss) from discontinued operations, net of tax                                                        --                                               --                                                 4,855                                                          530                                                     (449,691 )
                                                                                                            -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- ------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
Net income                                                                                                                     $         74,528                                                                $         70,091                                                                $  50,048                                                                $         92,257                                                                $        428,335  
                                                                                                            ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ======= ====================                                           ==================== ============== ====================                                           ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
Diluted net income per share:
-----------------------------------------------------------------
Net income from continuing operations                                                                                          $           0.32                                                                                   $           0.29                                                                                   $    0.20                                                                                   $           0.39                                                                                   $           3.63
Income (loss) from discontinued operations, net of tax                                                        --                                               --                                                  0.02                                               --                                                        (1.85 )
                                                                                                            -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- ------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
Net income                                                                                                                     $           0.32                                                                $           0.29                                                                $    0.22                                                                $           0.39                                                                $           1.78  
                                                                                                            ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ======= ====================                                           ==================== ============== ====================                                           ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
Selected Mortgage Insurance Key Ratios
-----------------------------------------------------------------
Loss ratio (1)                                                                                                                             25.1 %                                                                                             28.2 %                                                                                      13.3 %                                                                                             20.4 %                                                                                             36.9 %
Expense ratio - NPE basis (1)                                                                                                              22.7 %                                                                                             23.9 %                                                                                      25.8 %                                                                                             23.0 %                                                                                             36.9 %
Expense ratio - NPW basis (2)                                                                                                              22.1 %                                                                                             22.5 %                                                                                      24.4 %                                                                                             21.3 %                                                                                             33.8 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
(1)   Calculated on a GAAP basis using net premiums earned ("NPE").
(2)                      Calculated on a GAAP basis using net premiums written ("NPW").
                          

On April 1, 2015, Radian Guaranty completed the previously disclosed sale of 100% of the issued and outstanding shares of Radian Asset Assurance to Assured, pursuant to the Radian Asset Assurance Stock Purchase Agreement dated as of December 22, 2014. As a result, the operating results of Radian Asset Assurance are classified as discontinued operations for all periods presented in our condensed consolidated statements of operations. See Exhibit D for additional information on discontinued operations.

 
Radian Group Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
Exhibit A (page 2 of 2)
 
                                                                                                                                     Year Ended
                                                                                                                                                                          December 31,
                                                                                                     -----------------------------------------------------------------------------------------------------------------------------------------------
(In thousands, except per-share data)                                                                                        2015                                                      2014
----------------------------------------------------------                                           -------------------------------------------------                                             ------------------------------------------------------
                                                                                                                                                                                                    
Revenues:
Net premiums earned - insurance                                                                                         $   915,908                                                                                   $        844,528
Services revenue                                                                                                            153,815                                                                                             76,693
Net investment income                                                                                                        81,537                                                                                             65,655
Net gains on investments and other financial instruments                                                                     35,693                                                                                             79,989
Other income                                                                                               6,300                                                        5,820  
                                                                                                     -------------------- --------- --------------------                                           -------------------- -------------- --------------------
     Total revenues                                                                                    1,193,253                                                    1,072,685  
                                                                                                     -------------------- --------- --------------------                                           -------------------- -------------- --------------------
                                                                                                                                                                                                    
Expenses:
Provision for losses                                                                                                        198,585                                                                                            246,083
Policy acquisition costs                                                                                                     22,424                                                                                             24,446
Direct cost of services                                                                                                      89,963                                                                                             43,605
Other operating expenses                                                                                                    246,157                                                                                            252,283
Interest expense                                                                                                             91,102                                                                                             90,464
Loss on induced conversion and debt extinguishment                                                                           94,207                                                                                     --
Amortization and impairment of intangible assets                                                          12,986                                                        8,648  
                                                                                                     -------------------- --------- --------------------                                           -------------------- -------------- --------------------
     Total expenses                                                                                      755,424                                                      665,529  
                                                                                                     -------------------- --------- --------------------                                           -------------------- -------------- --------------------
                                                                                                                                                                                                    
Pretax income from continuing operations                                                                                    437,829                                                                                            407,156
Income tax provision (benefit)                                                                           156,290                                                     (852,418 )
                                                                                                     -------------------- --------- --------------------                                           -------------------- -------------- --------------------
Net income from continuing operations                                                                                       281,539                                                                                          1,259,574
Income (loss) from discontinued operations, net of tax (2)                                                 5,385                                                     (300,057 )
                                                                                                     -------------------- --------- --------------------                                           -------------------- -------------- --------------------
Net income                                                                                                              $   286,924                                                                $        959,517  
                                                                                                     ==================== ========= ====================                                           ==================== ============== ====================
                                                                                                                                                                                                    
Diluted net income per share:
----------------------------------------------------------
Net income from continuing operations                                                                                   $      1.20                                                                                   $           5.44
Income (loss) from discontinued operations, net of tax                                                      0.02                                                        (1.28 )
                                                                                                     -------------------- --------- --------------------                                           -------------------- -------------- --------------------
Net income                                                                                                              $      1.22                                                                $           4.16  
                                                                                                     ==================== ========= ====================                                           ==================== ============== ====================
                                                                                                                                                                                                    
Selected Mortgage Insurance Key Ratios
----------------------------------------------------------
Loss ratio (1)                                                                                                                 21.7 %                                                                                             29.1 %
Expense ratio - NPE basis (1)                                                                                                  23.9 %                                                                                             29.6 %
Expense ratio - NPW basis (2)                                                                                                  22.6 %                                                                                             27.0 %
                                                                                                                                                                                                                                        
(1)   Calculated on a GAAP basis using net premiums earned ("NPE").
(2)                      Calculated on a GAAP basis using net premiums written ("NPW").
                          
 
Radian Group Inc. and Subsidiaries
Net Income Per Share Trend Schedule
Exhibit B (page 1 of 2)
 
The calculation of basic and diluted net income per share was as
follows:
 
                                                                                                                                                                                                            2015                                                                                                                                                             2014
                                                                                                                 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                          ---------------------------------------------------
(In thousands, except per share amounts)                                                                                         Qtr 4                                   Qtr 3                               Qtr 2                                Qtr 1                                                                                Qtr 4
----------------------------------------------------------------------                                           ----------------------------------                                            ----------------------------------                                            ---------------------------                                            ----------------------------------                                            ------------------------------------------------
Net income from continuing operations:
     Net income from continuing operations--basic                                                                       $         74,528                                                              $         70,091                                                              $  45,193                                                              $         91,727                                                              $  878,026
     Adjustment for dilutive Convertible Senior Notes due 2019, net of                                                      3,664                                                      3,714                                               3,707                                                      3,673                                                3,641  
     tax (1)
                                                                                                                 -------------------- --------------                                           -------------------- --------------                                           -------------------- -------                                           -------------------- --------------                                           -------------------- -------- --------------------
          Net income from continuing operations--diluted                                                                $         78,192                                                              $         73,805                                                              $  48,900                                                              $         95,400                                                              $  881,667  
                                                                                                                 ==================== ==============                                           ==================== ==============                                           ==================== =======                                           ==================== ==============                                           ==================== ======== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
Net income:
     Net income from continuing operations--basic                                                                       $         74,528                                                              $         70,091                                                              $  45,193                                                              $         91,727                                                              $  878,026
     Income (loss) from discontinued operations, net of tax                                                        --                                             --                                               4,855                                                        530                                             (449,691 )
                                                                                                                 -------------------- --------------                                           -------------------- --------------                                           -------------------- -------                                           -------------------- --------------                                           -------------------- -------- --------------------
     Net income--basic                                                                                                            74,528                                                                        70,091                                                                 50,048                                                                        92,257                                                                 428,335
     Adjustment for dilutive Convertible Senior Notes due 2019, net of                                                      3,664                                                      3,714                                               3,707                                                      3,673                                                3,641  
     tax (1)
                                                                                                                 -------------------- --------------                                           -------------------- --------------                                           -------------------- -------                                           -------------------- --------------                                           -------------------- -------- --------------------
          Net income--diluted                                                                                           $         78,192                                                              $         73,805                                                              $  53,755                                                              $         95,930                                                              $  431,976  
                                                                                                                 ==================== ==============                                           ==================== ==============                                           ==================== =======                                           ==================== ==============                                           ==================== ======== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
Average common shares outstanding--basic                                                                                         206,872                                                                       207,938                                                                193,112                                                                       191,224                                                                 191,053
Dilutive effect of Convertible Senior Notes due 2017                                                                                           1,057                                                                         1,798                                                                 12,438                                                                        10,886                                                                  10,590
Dilutive effect of Convertible Senior Notes due 2019                                                                                          37,736                                                                        37,736                                                                 37,736                                                                        37,736                                                                  37,736
Dilutive effect of stock-based compensation arrangements (2)                                                                2,316                                                      3,323                                               3,364                                                      3,202                                                3,422  
                                                                                                                 -------------------- --------------                                           -------------------- --------------                                           -------------------- -------                                           -------------------- --------------                                           -------------------- -------- --------------------
Adjusted average common shares outstanding--diluted                                                           247,981                                                    250,795                                             246,650                                                    243,048                                              242,801  
                                                                                                                 ==================== ==============                                           ==================== ==============                                           ==================== =======                                           ==================== ==============                                           ==================== ======== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
Net income per share:
----------------------------------------------------------------------
Basic:
     Net income from continuing operations                                                                                          $           0.36                                                              $           0.34                                                              $    0.23                                                              $           0.48                                                              $     4.60                      (3)
     Income (loss) from discontinued operations, net of tax                                                        --                                             --                                                0.03                                             --                                                (2.36 )
                                                                                                                 -------------------- --------------                                           -------------------- --------------                                           -------------------- -------                                           -------------------- --------------                                           -------------------- -------- --------------------
     Net income                                                                                                                     $           0.36                                                              $           0.34                                                              $    0.26                                                              $           0.48                                                              $     2.24  
                                                                                                                 ==================== ==============                                           ==================== ==============                                           ==================== =======                                           ==================== ==============                                           ==================== ======== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
Diluted:
     Net income from continuing operations                                                                                          $           0.32                                                              $           0.29                                                              $    0.20                                                              $           0.39                                                              $     3.63                      (3)
     Income (loss) from discontinued operations, net of tax                                                        --                                             --                                                0.02                                             --                                                (1.85 )
                                                                                                                 -------------------- --------------                                           -------------------- --------------                                           -------------------- -------                                           -------------------- --------------                                           -------------------- -------- --------------------
     Net income                                                                                                                     $           0.32                                                              $           0.29                                                              $    0.22                                                              $           0.39                                                              $     1.78  
                                                                                                                 ==================== ==============                                           ==================== ==============                                           ==================== =======                                           ==================== ==============                                           ==================== ======== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
(1)   As applicable, includes coupon interest, amortization of
                         discount and fees, and other changes in income or loss that would
                         result from the assumed conversion.
(2)                      The following number of shares of our common stock equivalents
                         issued under our stock-based compensation arrangements were not
                         included in the calculation of diluted net income per share
                         because they were anti-dilutive:
                          
                                                                                                                                                                                                                                                                                                   
                                                                                                                                                                                                                                                                                                                                                                                             2015                                                                                                                                                                                                                                    2014
                                                                                                                                                                                                                                                     ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                                                                    --------------------
(In thousands)                                                                                                                                                                                                                                        Qtr 4         Qtr 3         Qtr 2         Qtr 1                                                                                            Qtr 4
----------------------------------                                                                                                                                                                                                                   -----                                                                                     -----                                                                                     -----                                                                                     -----                                                                                     --------------------
Shares of common stock equivalents                                                                                                                                                                                                                     728                                                                                       469                                                                                       264                                                                                       540                                                                                                      542
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
(3)   Includes the tax benefit of $3.36 per share realized relating
                         to the reversal of our valuation allowance in the 4th quarter of
                         2014.
                          
 
Radian Group Inc. and Subsidiaries
Net Income (Loss) Per Share
Exhibit B (page 2 of 2)
 
                                                                                                                                   Year Ended
                                                                                                                                                                        December 31,
                                                                                                                 --------------------------------------------------------------------------------------------------------------------
(In thousands, except per share amounts)                                                                                     2015                                         2014
----------------------------------------------------------------------                                           ---------------------------                                            -------------------------------------------------
Net income from continuing operations:
     Net income from continuing operations - basic                                                                                  $ 281,539                                                              $ 1,259,574
     Adjustment for dilutive Convertible Senior Notes due 2019, net of                                              14,758                                                14,372  
     tax (1)
                                                                                                                 -------------------- -------                                           -------------------- --------- --------------------
          Net income from continuing operations - diluted                                                                           $ 296,297                                                              $ 1,273,946  
                                                                                                                 ==================== =======                                           ==================== ========= ====================
                                                                                                                                                                                                                                             
Net income:
     Net income from continuing operations - basic                                                                                  $ 281,539                                                              $ 1,259,574
     Income (loss) from discontinued operations, net of tax                                                          5,385                                              (300,057 )
                                                                                                                 -------------------- -------                                           -------------------- --------- --------------------
     Net income - basic                                                                                                               286,924                                                                  959,517
                                                                                                                    14,758                                                14,372  
     Adjustment for dilutive Convertible Senior Notes due 2019, net
     of tax (1)
                                                                                                                 -------------------- -------                                           -------------------- --------- --------------------
          Net income - diluted                                                                                                      $ 301,682                                                              $   973,889  
                                                                                                                 ==================== =======                                           ==================== ========= ====================
                                                                                                                                                                                                                                             
Average common shares outstanding--basic                                                                                  199,910                                                                  184,551
Dilutive effect of Convertible Senior Notes due 2017                                                                                    6,293                                                                    8,465
Dilutive effect of Convertible Senior Notes due 2019                                                                                   37,736                                                                   37,736
Dilutive effect of stock-based compensation arrangements (2)                                                         2,393                                                 3,150  
                                                                                                                 -------------------- -------                                           -------------------- --------- --------------------
Adjusted average common shares outstanding--diluted                                                    246,332                                               233,902  
                                                                                                                 ==================== =======                                           ==================== ========= ====================
                                                                                                                                                                                                                                             
Net income (loss) per share:
----------------------------------------------------------------------
                                                                                                                                                                                                                                             
Basic:
     Net income from continuing operations                                                                                          $    1.41                                                              $      6.83                      (3)
     Income (loss) from discontinued operations, net of tax                                                           0.03                                                 (1.63 )
                                                                                                                 -------------------- -------                                           -------------------- --------- --------------------
     Net income                                                                                                                     $    1.44                                                              $      5.20  
                                                                                                                 ==================== =======                                           ==================== ========= ====================
                                                                                                                                                                                                                                             
Diluted:
     Net income from continuing operations                                                                                          $    1.20                                                              $      5.44                      (3)
     Income (loss) from discontinued operations, net of tax                                                           0.02                                                 (1.28 )
                                                                                                                 -------------------- -------                                           -------------------- --------- --------------------
     Net income                                                                                                                     $    1.22                                                              $      4.16  
                                                                                                                 ==================== =======                                           ==================== ========= ====================
                                                                                                                                                                                                                                             
(1)      As applicable, includes coupon interest, amortization of
                            discount and fees, and other changes in income or loss that would
                            result from the assumed conversion.
(2)                         The following number of shares of our common stock equivalents
                            issued under our stock-based compensation arrangements were not
                            included in the calculation of diluted net income per share
                            because they were anti-dilutive:
                                                                          
                                                                                                   Year Ended
                                                                                                                                                                                                                                                                                                                   December 31,
                                                                                                                                                                                                                                                                          ----------------------------------------------------------------------------------------------
(In thousands)                                                                                                                                                                                                                                                            2015         2014
----------------------------------                                                                                                                                                                                                                                        ----                                                                                     ----
Shares of common stock equivalents                                                                                                                                                                                                                                         728                                                                                      542
(3)   Includes the tax benefit of $4.25 per share realized relating
                         to the reversal of our valuation allowance in 2014.
 
Radian Group Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
Exhibit C
 
                                                                                                December 31,                                                 September 30,                                                  June 30,                                        March 31,                              December 31,
(In thousands, except per share data)                                                                                                     2015                                                                                               2015                                                                                               2015                                                                                  2015                                                                           2014
---------------------------------------------------------------------                                           ------------------------------------------------------                                             ------------------------------------------------------                                             ------------------------------------------------------                                             -----------------------------                                            ----------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
Assets:
Investments                                                                                                                        $      4,298,686                                                                                   $      4,376,771                                                                                   $      4,309,148                                                                                   $ 3,621,646                                                              $            3,629,299
Cash                                                                                                                                         46,898                                                                                             69,030                                                                                             51,381                                                                                        57,204                                                                              30,465
Restricted cash                                                                                                                              13,000                                                                                             10,280                                                                                             12,633                                                                                        14,220                                                                              14,031
Accounts and notes receivable                                                                                                                61,734                                                                                             65,951                                                                                             72,093                                                                                        64,405                                                                              85,792
Deferred income taxes, net                                                                                                                  577,945                                                                                            601,893                                                                                            651,238                                                                                       649,996                                                                             700,201
Goodwill and other intangible assets, net                                                                                                   289,417                                                                                            287,334                                                                                            290,640                                                                                       293,798                                                                             288,240
Other assets                                                                                                                                364,108                                                                                            349,657                                                                                            349,371                                                                                       340,276                                                                             357,864
Assets held for sale                                                                                              --                                               --                                               --                                               1,755,873                                                        1,736,444
                                                                                                                -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- ---------                                           -------------------- --------------------
Total assets                                                                                                                       $      5,651,788                                                                $      5,760,916                                                                $      5,736,504                                                                $ 6,797,418                                                              $            6,842,336
                                                                                                                ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== =========                                           ==================== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
Liabilities and stockholders’ equity:
Unearned premiums                                                                                                                  $        680,300                                                                                   $        676,938                                                                                   $        665,947                                                                                   $   657,555                                                              $              644,504
Reserve for losses and loss adjustment expenses                                                                                             976,399                                                                                          1,098,570                                                                                          1,204,792                                                                                     1,384,714                                                                           1,560,032
Long-term debt                                                                                                                            1,219,454                                                                                          1,230,246                                                                                          1,224,892                                                                                     1,202,535                                                                           1,192,299
Other liabilities                                                                                                                           278,704                                                                                            311,855                                                                                            278,929                                                                                       310,642                                                                             326,743
Liabilities held for sale                                                                                         --                                               --                                               --                                                 966,078                                                          947,008
                                                                                                                -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- ---------                                           -------------------- --------------------
Total liabilities                                                                                                      3,154,857                                                    3,317,609                                                    3,374,560                                               4,521,524                                                        4,670,586
                                                                                                                -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- ---------                                           -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
Equity component of currently redeemable convertible senior notes                                                                    --                                                                                              7,737                                                                                              8,546                                                                                        68,982                                                                              74,690
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
Common stock                                                                                                                                    224                                                                                                224                                                                                                226                                                                                           209                                                                                 209
Additional paid-in capital                                                                                                                1,823,442                                                                                          1,825,034                                                                                          1,816,545                                                                                     1,648,436                                                                           1,638,552
Retained earnings                                                                                                                           691,742                                                                                            617,731                                                                                            548,161                                                                                       498,593                                                                             406,814
Accumulated other comprehensive (loss) income                                                                            (18,477 )                                                                        (7,419 )                                                                       (11,534 )                                                                   59,674                                                           51,485
                                                                                                                -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- ---------                                           -------------------- --------------------
Total common stockholders’ equity                                                           2,496,931                                                    2,435,570                                                    2,353,398                                               2,206,912                                                        2,097,060
                                                                                                                -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- ---------                                           -------------------- --------------------
Total liabilities and stockholders’ equity                                                              $      5,651,788                                                                $      5,760,916                                                                $      5,736,504                                                                $ 6,797,418                                                              $            6,842,336
                                                                                                                ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== =========                                           ==================== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
Shares outstanding                                                                                                                          206,872                                                                                            206,870                                                                                            208,587                                                                                       191,416                                                                             191,054
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
Book value per share                                                                                                               $          12.07                                                                                   $          11.77                                                                                   $          11.28                                                                                   $     11.53                                                              $                10.98
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
 
Radian Group Inc. and Subsidiaries
Discontinued Operations
Exhibit D
 
The income from discontinued operations, net of tax consisted of the
following components for the periods indicated:
                                                            
                                                                                                                                                                           2015
                                                                                                   -----------------------------------------------------------------------------------------------------------------------------------------------------
(In thousands)                                                                                                               Qtr 2                                                     Qtr 1
--------------------------------------------------------                                           ------------------------------------------------------                                             -----------------------------------------------
Net premiums earned                                                                                                   $ --                                                                                   $   1,007
Net investment income                                                                                                   --                                                                                       9,153
Net gains on investments and other financial instruments                                                                         7,818                                                                                      13,668
Change in fair value of derivative instruments                                                       --                                                 2,625  
                                                                                                   -------------------- -------------- --------------------                                           -------------------- ------- --------------------
     Total revenues                                                                                           7,818                                                26,453  
                                                                                                   -------------------- -------------- --------------------                                           -------------------- ------- --------------------
                                                                                                                                                                                                                                    
Provision for losses                                                                                                    --                                                                                         502
Policy acquisition costs                                                                                                --                                                                                        (191 )
Other operating expense                                                                              --                                                 4,107  
                                                                                                   -------------------- -------------- --------------------                                           -------------------- ------- --------------------
     Total expenses                                                                                  --                                                 4,418  
                                                                                                   -------------------- -------------- --------------------                                           -------------------- ------- --------------------
                                                                                                                                                                                                                                    
Equity in net loss of affiliates                                                                     --                                                   (13 )
                                                                                                   -------------------- -------------- --------------------                                           -------------------- ------- --------------------
Income from operations of businesses held for sale                                                                               7,818                                                                                      22,022
Loss on sale                                                                                                                      (350 )                                                                                   (13,930 )
Income tax provision                                                                                          2,613                                                 7,562  
                                                                                                   -------------------- -------------- --------------------                                           -------------------- ------- --------------------
Income from discontinued operations, net of tax                                                                       $          4,855                                                                $     530  
                                                                                                   ==================== ============== ====================                                           ==================== ======= ====================
                                                                                                                                                                                                                                    
 
Radian Group Inc. and Subsidiaries
Segment Information
Exhibit E (page 1 of 3)
 
Summarized financial information concerning our operating segments
as of and for the periods indicated, is as follows. For a definition
of adjusted pretax operating income and reconciliations to
consolidated GAAP measures, see Exhibits F and G.
                                                                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                                                                                                   Mortgage Insurance
                                                                                                             ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                            2015                                                                                                                                                                                                                                                2014
                                                                                                             ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                          --------------------------------------------------
(In thousands)                                                                                                                         Qtr 4                                                                                              Qtr 3                                                                                              Qtr 2                                                                                              Qtr 1                                                                                           Qtr 4
------------------------------------------------------------------                                           ------------------------------------------------------                                             ------------------------------------------------------                                             ------------------------------------------------------                                             ------------------------------------------------------                                             -----------------------------------------------
Net premiums written - insurance                                                                                                $        233,347                                                                                   $        242,168                                                                                   $        251,082                                                                                   $        241,908                                                                                   $ 244,506
Increase in unearned premiums                                                                                          (6,904 )                                                                       (14,735 )                                                                       (13,645 )                                                                       (17,313 )                                                                (20,213 )
                                                                                                             -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- ------- --------------------
Net premiums earned - insurance                                                                                                          226,443                                                                                            227,433                                                                                            237,437                                                                                            224,595                                                                                     224,293
Net investment income (1)                                                                                                                 22,833                                                                                             22,091                                                                                             19,285                                                                                             17,328                                                                                      16,531
Other income (1)                                                                                                        1,515                                                        1,711                                                        1,743                                                        1,331                                                 1,668  
                                                                                                             -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- ------- --------------------
     Total                                                                                                            250,791                                                      251,235                                                      258,465                                                      243,254                                               242,492  
                                                                                                             -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- ------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
Provision for losses                                                                                                                      56,817                                                                                             64,128                                                                                             31,637                                                                                             45,851                                                                                      83,649
Change in expected economic loss or recovery for consolidated VIEs                                                                --                                                                                     --                                                                                     --                                                                                     --                                                                                         (16 )
Policy acquisition costs                                                                                                                   4,831                                                                                              2,880                                                                                              6,963                                                                                              7,750                                                                                       6,443
Other operating expenses before corporate allocations                                                                  37,406                                                       36,632                                                       41,853                                                       34,050          62,591  
                                                                                                             -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- -------------------- -------------------- -------------------- -------------------- ------- --------------------
     Total                                                                                                             99,054                                                      103,640                                                       80,453                                                       87,651         152,667  
                                                                                                             -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- -------------------- -------------------- -------------------- -------------------- ------- --------------------
Adjusted pretax operating income before corporate allocations                                                                            151,737                                                                                            147,595                                                                                            178,012                                                                                            155,603                                                                                      89,825
     Allocation of corporate operating expenses (1)                                                                                        9,251                                                                                             14,893                                                                                             12,516                                                                                              9,758                                                                                      13,729
     Allocation of interest expense (1)                                                                                16,582                                                       16,797                                                       20,070                                                       19,953                                                19,760  
                                                                                                             -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- ------- --------------------
Adjusted pretax operating income                                                                                                $        125,904                                                                $        115,905                                                                $        145,426                                                                $        125,892                                                                $  56,336  
                                                                                                             ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
                                                                                                                                                                                                                                                                                                                                        Services
                                                                                                             ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                            2015                                                                                                                                                                                                                                                2014
                                                                                                             ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                          --------------------------------------------------
(In thousands)                                                                                                                         Qtr 4                                                                                              Qtr 3                                                                                              Qtr 2                                                                                              Qtr 1                                                                                           Qtr 4
------------------------------------------------------------------                                           ------------------------------------------------------                                             ------------------------------------------------------                                             ------------------------------------------------------                                             ------------------------------------------------------                                             -----------------------------------------------
Services revenue                                                                                                                $         38,175                                                                                   $         43,114                                                                                   $         44,595                                                                                   $         31,532                                                                                   $  34,466
Other income                                                                                                   --                                               --                                               --                                               --                                                   891  
                                                                                                             -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- ------- --------------------
     Total                                                                                                             38,175                                                       43,114                                                       44,595                                                       31,532                                                35,357  
                                                                                                             -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- ------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
Direct cost of services                                                                                                                   22,880                                                                                             25,870                                                                                             25,501                                                                                             19,253                                                                                      19,709
Other operating expenses before corporate allocations                                                                  11,710                                                       11,533                                                       11,522                                                        8,857           8,360  
                                                                                                             -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- -------------------- -------------------- -------------------- -------------------- ------- --------------------
     Total                                                                                                             34,590                                                       37,403                                                       37,023                                                       28,110          28,069  
                                                                                                             -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- -------------------- -------------------- -------------------- -------------------- ------- --------------------
Adjusted pretax operating income before corporate allocations                                                                              3,585                                                                                              5,711                                                                                              7,572                                                                                              3,422                                                                                       7,288
     Allocation of corporate operating expenses                                                                                              968                                                                                              1,567                                                                                              1,307                                                                                                981                                                                                         740
     Allocation of interest expense                                                                                     4,414                                                        4,423                                                        4,431                                                        4,432                                                 4,440  
                                                                                                             -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- ------- --------------------
Adjusted pretax operating (loss) income                                                                                         $         (1,797 )                                                                                 $           (279 )                                                                                 $          1,834                                                                $         (1,991 )                                                                                 $   2,108  
                                                                                                             ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
(1)   For periods prior to the quarter ended June 30, 2015, includes
                         certain corporate income and expenses that have been reallocated
                         from our prior financial guaranty segment to the Mortgage
                         Insurance segment and that were not reclassified to discontinued
                         operations.
                          
 
Radian Group Inc. and Subsidiaries
Segment Information
Exhibit E (page 2 of 3)
 
                                                                                                                                        Mortgage Insurance
                                                                                                             -----------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                  Year Ended
                                                                                                                                                                                 December 31,
                                                                                                             ---------------------------------------------------------------------------------------------------------------------------------------------
(In thousands)                                                                                                                         2015                                                      2014
------------------------------------------------------------------                                           ------------------------------------------------------                                             -----------------------------------------------
Net premiums written - insurance                                                                                                $        968,505                                                                                   $ 925,181
Increase in unearned premiums                                                                                         (52,597 )                                                                (80,653 )
                                                                                                             -------------------- -------------- --------------------                                           -------------------- ------- --------------------
Net premiums earned - insurance                                                                                                          915,908                                                                                     844,528
Net investment income (1)                                                                                                                 81,537                                                                                      65,655
Other income (1)                                                                                                        6,300                                                 5,321  
                                                                                                             -------------------- -------------- --------------------                                           -------------------- ------- --------------------
     Total                                                                                                          1,003,745                                               915,504  
                                                                                                             -------------------- -------------- --------------------                                           -------------------- ------- --------------------
                                                                                                                                                                                                                 
Provision for losses                                                                                                                     198,433                                                                                     246,865
Change in expected economic loss or recovery for consolidated VIEs                                                                --                                                                                         113
Policy acquisition costs                                                                                                                  22,424                                                                                      24,446
Other operating expenses before corporate allocations                                                                 149,941         170,390  
                                                                                                             -------------------- -------------- -------------------- -------------------- -------------------- -------------------- ------- --------------------
     Total                                                                                                            370,798         441,814  
                                                                                                             -------------------- -------------- -------------------- -------------------- -------------------- -------------------- ------- --------------------
Adjusted pretax operating income before corporate allocations                                                                            632,947                                                                                     473,690
     Allocation of corporate operating expenses (1)                                                                                       46,418                                                                                      55,154
     Allocation of interest expense (1)                                                                                73,402                                                81,600  
                                                                                                             -------------------- -------------- --------------------                                           -------------------- ------- --------------------
Adjusted pretax operating income                                                                                                $        513,127                                                                $ 336,936  
                                                                                                             ==================== ============== ====================                                           ==================== ======= ====================
                                                                                                                                                                                                                 
                                                                                                                                                                                                                 
                                                                                                                                                                                   Services
                                                                                                             -----------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                  Year Ended
                                                                                                                                                                                 December 31,
                                                                                                             ---------------------------------------------------------------------------------------------------------------------------------------------
(In thousands)                                                                                                                         2015                                                                                           2014(2)
------------------------------------------------------------------                                           ------------------------------------------------------                                             -----------------------------------------------
Services revenue                                                                                                                $        157,416                                                                                   $  76,709
Other income                                                                                                   --                                                 1,265  
                                                                                                             -------------------- -------------- --------------------                                           -------------------- ------- --------------------
     Total                                                                                                            157,416                                                77,974  
                                                                                                             -------------------- -------------- --------------------                                           -------------------- ------- --------------------
                                                                                                                                                                                                                 
Direct cost of services                                                                                                                   93,504                                                                                      43,605
Other operating expenses before corporate allocations                                                                  43,622          18,915  
                                                                                                             -------------------- -------------- -------------------- -------------------- -------------------- -------------------- ------- --------------------
     Total                                                                                                            137,126          62,520  
                                                                                                             -------------------- -------------- -------------------- -------------------- -------------------- -------------------- ------- --------------------
Adjusted pretax operating income before corporate allocations                                                                             20,290                                                                                      15,454
     Allocation of corporate operating expenses                                                                                            4,823                                                                                       1,144
     Allocation of interest expense                                                                                    17,700                                                 8,864  
                                                                                                             -------------------- -------------- --------------------                                           -------------------- ------- --------------------
Adjusted pretax operating (loss) income                                                                                         $         (2,233 )                                                                                 $   5,446  
                                                                                                             ==================== ============== ====================                                           ==================== ======= ====================
                                                                                                                                                                                                                                              
(1)   For periods prior to the quarter ended June 30, 2015, includes
                         certain corporate income and expenses that have been reallocated
                         from our prior financial guaranty segment to the Mortgage
                         Insurance segment and that were not reclassified to discontinued
                         operations.
(2)                      Primarily represents the activity of Clayton; Clayton was
                         acquired on June 30, 2014.
                          
 
Radian Group Inc. and Subsidiaries
Segment Information
Exhibit E (page 3 of 3)
 
Inter-segment information:
 
                                                                                                                                                                                     2015                                                                                                                                          2014
                                                                                                        ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                          ------------------------------------------
                                                                                                                   Qtr 4                          Qtr 3                          Qtr 2                          Qtr 1                                                                        Qtr 4
                                                                                                        ---------------------------                                          ---------------------------                                          ---------------------------                                          ---------------------------                                          ------------------------------------------
Inter-segment expense included in Mortgage Insurance segment                                                               $   682                                                              $   925                                                              $ 1,092                                                              $   902                                                              $                  782
Inter-segment revenue included in Services segment                                                                             682                                                                  925                                                                1,092                                                                  902                                                                                 782
                                                                                                                                                                                                                                                                                                                                                                                             
Supplemental information for Services EBITDA (see definition in
Exhibit F):
                                                                                                                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                           2015                                                                                                                                                                                2014
                                                                                                        ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                          ------------------------------------------
                                                                                                                   Qtr 4                          Qtr 3                                                                Qtr 2                                                                Qtr 1                                                                        Qtr 4
                                                                                                        ----------------------------------------------- -------------------- ---------------------------                                          ---------------------------                                          ---------------------------                                          ------------------------------------------
Adjusted pretax operating income before corporate allocations                                                              $ 3,585                                                              $ 5,711                                                              $ 7,572                                                              $ 3,422                                                              $                7,288
     Depreciation and amortization                                                                          612                                               555                                               482                                               449                                                              442
                                                                                                        -------------------- -----                                           -------------------- -----                                           -------------------- -----                                           -------------------- -----                                           -------------------- --------------------
Services EBITDA                                                                                                            $ 4,197                                                              $ 6,266                                                              $ 8,054                                                              $ 3,871                                                              $                7,730
                                                                                                        ==================== =====                                           ==================== =====                                           ==================== =====                                           ==================== =====                                           ==================== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                  
                                                                            
Selected balance sheet information for our segments as of the
periods indicated, is a follows:
                                                                                                                                                                                                
                                                                                                                                  At December 31, 2015
                                                                   --------------------------------------------------------------------------------------------------------------------------------------------------
(In thousands)                                                           Mortgage                                                      Services                                                         Total
                                                                         Insurance
------------------------                                           ------------------                                            ------------------                                            --------------------
Total assets                                                          $      5,291,284                                              $        360,504                                                    $  5,651,788
                                                                                                                                                                                                
                                                                                                                                  At December 31, 2014
                                                                   --------------------------------------------------------------------------------------------------------------------------------------------------
(In thousands)                                                           Mortgage                                                      Services                                                         Total
                                                                         Insurance
------------------------                                           ------------------                                            ------------------                                            --------------------
Assets held for sale (1)                                              $ --                                              $ --                                                    $  1,736,444
Total assets                                                                 4,769,014                                                       336,878                                                       6,842,336
 
(1) Assets held for sale are not part of the Mortgage
Insurance or Services segments.
 
 
Radian Group Inc. and Subsidiaries
Definition of Consolidated Non-GAAP Financial Measure
Exhibit F (page 1 of 2)
 
Use of Non-GAAP Financial Measure
 

In addition to the traditional GAAP financial measures, we have presented non-GAAP financial measures for the consolidated company, "adjusted pretax operating income (loss)" and "adjusted diluted net operating income (loss) per share," among our key performance indicators to evaluate our fundamental financial performance. These non-GAAP financial measures align with the way the Company’s business performance is evaluated by both management and the board of directors. These measures have been established in order to increase transparency for the purposes of evaluating our core operating trends and enabling more meaningful comparisons with our peers. Although on a consolidated basis "adjusted pretax operating income (loss)" and "adjusted diluted net operating income (loss) per share" are non-GAAP financial measures, we believe these measures aid in understanding the underlying performance of our operations. Our senior management, including our Chief Executive Officer (the Company’s chief operating decision maker), uses adjusted pretax operating income (loss) as our primary measure to evaluate the fundamental financial performance of the Company’s business segments and to allocate resources to the segments.

Adjusted pretax operating income (loss) is defined as GAAP pretax income (loss) from continuing operations excluding the effects of net gains (losses) on investments and other financial instruments, loss on induced conversion and debt extinguishment, acquisition-related expenses, amortization and impairment of intangible assets and net impairment losses recognized in earnings. Adjusted diluted net operating income (loss) per share is calculated by dividing (i) adjusted pretax operating income (loss) attributable to common shareholders, net of taxes computed using the company’s statutory tax rate, by (ii) the sum of the weighted average number of common shares outstanding and all dilutive potential common shares outstanding. Interest expense on convertible debt, share dilution from convertible debt and the impact of stock-based compensation arrangements have been reflected in the per share calculations consistent with the accounting standard regarding earnings per share, whenever the impact is dilutive.

Although adjusted pretax operating income (loss) excludes certain items that have occurred in the past and are expected to occur in the future, the excluded items represent those that are: (1) not viewed as part of the operating performance of our primary activities; or (2) not expected to result in an economic impact equal to the amount reflected in pretax income (loss) from continuing operations. These adjustments, along with the reasons for their treatment, are described below.

                   
(1)                                    Net gains (losses) on investments and other financial
                                       instruments. The recognition of realized investment gains or
                                       losses can vary significantly across periods as the activity is
                                       highly discretionary based on the timing of individual securities
                                       sales due to such factors as market opportunities, our tax and
                                       capital profile and overall market cycles. Unrealized investment
                                       gains and losses arise primarily from changes in the market value
                                       of our investments that are classified as trading. These valuation
                                       adjustments may not necessarily result in economic gains or losses.
                                        
                                       Trends in the profitability of our fundamental operating activities
                                       can be more clearly identified without the fluctuations of these
                                       realized and unrealized gains or losses. We do not view them to be
                                       indicative of our fundamental operating activities. Therefore, these
                                       items are excluded from our calculation of adjusted pretax operating
                                       income (loss). However, we include the change in expected economic
                                       loss or recovery associated with our consolidated VIEs, if any, in
                                       the calculation of adjusted pretax operating income (loss).
                                        
(2)                                    Loss on induced conversion and debt extinguishment. Gains
                                       or losses on early extinguishment of debt or losses incurred to
                                       induce conversion of convertible debt prior to maturity are
                                       discretionary activities that are undertaken in order to take
                                       advantage of market opportunities to strengthen our financial
                                       position; therefore, these activities are not viewed as part of
                                       our operating performance. Such transactions do not reflect
                                       expected future operations and do not provide meaningful insight
                                       regarding our current or past operating trends. Therefore, these
                                       items are excluded from our calculation of adjusted pretax
                                       operating income (loss).
                                        
(3)                                    Acquisition-related expenses. Acquisition-related expenses
                                       represent the costs incurred to effect an acquisition of a
                                       business (i.e., a business combination). Because we pursue
                                       acquisitions on a strategic and selective basis and not in the
                                       ordinary course of our business, we do not view
                                       acquisition-related expenses as a consequence of a primary
                                       business activity. Therefore, we do not consider these expenses to
                                       be part of our operating performance and they are excluded from
                                       our calculation of adjusted pretax operating income (loss).
                                        
(4)                                    Amortization and impairment of intangible assets.
                                       Amortization of intangible assets represents the periodic expense
                                       required to amortize the cost of intangible assets over their
                                       estimated useful lives. Intangible assets with an indefinite
                                       useful life are also periodically reviewed for potential
                                       impairment, and impairment adjustments are made whenever
                                       appropriate. These charges are not viewed as part of the operating
                                       performance of our primary activities and therefore are excluded
                                       from our calculation of adjusted pretax operating income (loss).
                                        
Radian Group Inc. and Subsidiaries
Definition of Consolidated Non-GAAP Financial Measure
Exhibit F (page 2 of 2)
                                        
(5)                                    Net impairment losses recognized in earnings. The
                                       recognition of net impairment losses on investments can vary
                                       significantly in both size and timing, depending on market credit
                                       cycles. We do not view these impairment losses to be indicative of
                                       our fundamental operating activities. Therefore, whenever these
                                       losses occur, we exclude them from our calculation of adjusted
                                       pretax operating income (loss).
                                        

In addition to the above non-GAAP measures for the consolidated company, we also have presented as supplemental information a non-GAAP measure for our Services segment, representing earnings before interest, income taxes, depreciation and amortization ("EBITDA"). We calculate Services EBITDA by using adjusted pretax operating income as described above, further adjusted to remove the impact of depreciation and corporate allocations for interest and operating expenses. We have presented Services EBITDA to facilitate comparisons with other services companies, since it is a widely accepted measure of performance in the services industry.

See Exhibit G for the reconciliation of our non-GAAP financial measures for the consolidated company, adjusted pretax operating income and adjusted diluted net operating income per share, to the most comparable GAAP measures, pretax income from continuing operations and net income per share from continuing operations, respectively. Exhibit G also contains the reconciliation of Services EBITDA to the most comparable GAAP measure, pretax income from continuing operations.

Total adjusted pretax operating income (loss), adjusted diluted net operating income (loss) per share and Services EBITDA are not measures of total profitability, and therefore should not be viewed as substitutes for GAAP pretax income (loss) from continuing operations or net income (loss) per share from continuing operations. Our definitions of adjusted pretax operating income (loss), adjusted diluted net operating income (loss) per share or EBITDA may not be comparable to similarly-named measures reported by other companies.

                                                                                                                                                                                                                                                                
Radian Group Inc. and Subsidiaries
Consolidated Non-GAAP Financial Measure Reconciliations
Exhibit G (page 1 of 3)
 
                                                                                                                                        Reconciliation of Adjusted Pretax Operating Income (Loss) to
                                                                                                                                                         Consolidated Pretax Income
                                                                                                                                                         from Continuing Operations
                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                            2015                                                                                                                                       2014
                                                                           -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     -------------------------------------
(In thousands)                                                                           Qtr 4                              Qtr 3                              Qtr 2                                Qtr 1                                                     Qtr 4
-----------------------------------------------------                      ------------------------------                        ------------------------------                        ------------------------------                        ----------------------------------                        ----------------------------------
Adjusted pretax operating income (loss):
   Mortgage Insurance (1)                                                    $ 125,904                                             $ 115,905                                             $ 145,426                                                 $ 125,892                                                 $  56,336
   Services (2)                                                                 (1,797 )                                                (279 )                                               1,834                                 (1,991 )                                                   2,108  
                                                                           --------------------------------                      --------------------------------                      --------------------------------                      ------------------------------------                      ------------------------------------
Total adjusted pretax operating income                                         124,107                            115,626                            147,260                                123,901                                 58,444  
                                                                           --------------------------------                      --------------------------------                      --------------------------------                      ------------------------------------                      ------------------------------------
                                                                                                                                                                                                                                                                                                        
Net (losses) gains on investments and other financial                          (13,402 )                                               3,868                                                28,448                                                    16,779                                                    17,967
instruments (3)
Loss on induced conversion and debt extinguishment                              (2,320 )                                                 (11 )                                             (91,876 )                                          --                                            --
Acquisition-related expenses (4)                                                  (266 )                                                (525 )                                                (567 )                                                    (207 )                                                    (380 )
Amortization and impairment of intangible assets (4)                            (3,409 )                                              (3,273 )                                              (3,281 )                                                  (3,023 )                                                  (5,354 )
                                                                           --------------------------------                      --------------------------------                      --------------------------------                      ------------------------------------                      ------------------------------------
Consolidated pretax income from continuing operations                        $ 104,710                          $ 115,685                          $  79,984                              $ 137,450                              $  70,677  
                                                                           === ======= ====================                      === ======= ====================                      === ======= ====================                      ======= ======= ====================                      ======= ======= ====================
                                                                                                                                                                                                                                                                                                                        
(1)   For periods prior to the quarter ended June 30, 2015, includes
                         certain corporate income and expenses that have been reallocated
                         from our prior financial guaranty segment to the Mortgage
                         Insurance segment and that were not reclassified to discontinued
                         operations.
(2)                      Effective with the fourth quarter of 2014, the Services segment
                         undertook the management responsibilities of certain additional
                         loan servicer surveillance functions previously considered part of
                         the Mortgage Insurance segment. As a result, these activities are
                         now reported in the Services segment for all periods presented.
(3)                      This line item includes a de minimis amount of expected
                         economic loss or recovery associated with our previously
                         consolidated VIEs that is included in adjusted pretax operating
                         income above.
(4)                      Please see Exhibit F for the definition of this line item.
                          
                                                                                                                                                                                                                                                                                        
                                                                                                                                                               Reconciliation of Adjusted Diluted Net Operating Income Per
                                                                                                                                                                            Share (1) to Net Income Per Share
                                                                                                                                                                               from Continuing Operations
                                                                                                                                                                                                                                                                                                                                                                     
                                                                                                                                                                                              2015                                                                                                                                                             2014
                                                                                       -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     -------------------------------------
                                                                                                       Qtr 4                                  Qtr 3                                  Qtr 2                                  Qtr 1                                                     Qtr 4
                                                                                       -------------------------------------                     -------------------------------------                     -------------------------------------                     -------------------------------------                     -------------------------------------
Adjusted diluted net operating income per share                                              $    0.34                              $    0.31                              $    0.40                              $    0.35                              $    0.17  
                                                                                       ------- ------- --------------------                      ------- ------- --------------------                      ------- ------- --------------------                      ------- ------- --------------------                      ------- ------- --------------------
                                                                                                                                                                                                                                                                                                                                                                     
After tax per share impact:
                                                                                                                                                                                                                                                                                                                                                                     
Net gains (losses) on investments and other financial instruments                                (0.03 )                                                    0.01                                                      0.07                                                      0.04                                                      0.05
Loss on induced conversion and debt extinguishment                                               (0.01 )                                          --                                                     (0.28 )                                          --                                            --
Acquisition-related expenses                                                            --                                            --                                            --                                            --                                            --
Amortization and impairment of intangible assets                                                 (0.01 )                                                   (0.01 )                                                   (0.01 )                                                   (0.01 )                                                   (0.01 )
Difference between statutory and effective tax rate                                               0.03                                                     (0.02 )                                                    0.02                                                      0.01                                                      3.42                                       (2)
                                                                                                                                                                                                                                                    
                                                                                       -------------------------------------                     -------------------------------------                     -------------------------------------                     -------------------------------------                     -------------------------------------
Net income per share from continuing operations                                              $    0.32                              $    0.29                              $    0.20                              $    0.39                              $    3.63  
                                                                                       ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================
                                                                                                                                                                                                                                                                                                                                                                     
(1)   Calculated using the company’s statutory tax rate.
(2)                      Includes the tax benefit of $3.36 per share realized relating
                         to the reversal of our valuation allowance in the 4th quarter of
                         2014.
                          
                                                                   
Radian Group Inc. and Subsidiaries
Consolidated Non-GAAP Financial Measure Reconciliations
Exhibit G (page 2 of 3)
 
                                                            Reconciliation of Adjusted Pretax Operating Income (Loss) to
                                                                             Consolidated Pretax Income
                                                                             from Continuing Operations
                                                                                        
                                                                                                                                 Year Ended
                                                                                                                                December 31,
                                                                                       ---------------------------------------------------------------------------------------
(In thousands)                                                                                         2015                                  2014
-----------------------------------------------------------------                      ---------------------------------                        ----------------------------------
Adjusted pretax operating income (loss):
   Mortgage Insurance (1)                                                                   $ 513,127                                                 $ 336,936
   Services (2)                                                                                (2,233 )                                                   5,446  
                                                                                       -----------------------------------                      ------------------------------------
Total adjusted pretax operating income                                                        510,894                                342,382  
                                                                                       -----------------------------------                      ------------------------------------
                                                                                                                                                 
Net gains (losses) on investments and other financial instruments                              35,693                                                    80,102
(3)
Loss on induced conversion and debt extinguishment                                            (94,207 )                                          --
Acquisition-related expenses (4)                                                               (1,565 )                                                  (6,680 )
Amortization and impairment of intangible assets (4)                                          (12,986 )                                                  (8,648 )
                                                                                       -----------------------------------                      ------------------------------------
Consolidated pretax income from continuing operations                                       $ 437,829                              $ 407,156  
                                                                                       ====== ======= ====================                      ======= ======= ====================
                                                                                                                                                                 
(1)   For periods prior to the quarter ended June 30, 2015, includes
                         certain corporate income and expenses that have been reallocated
                         from our prior financial guaranty segment to the Mortgage
                         Insurance segment and that were not reclassified to discontinued
                         operations.
(2)                      Effective with the fourth quarter of 2014, the Services segment
                         undertook the management responsibilities of certain additional
                         loan servicer surveillance functions previously considered part of
                         the Mortgage Insurance segment. As a result, these activities are
                         now reported in the Services segment for all periods presented.
(3)                      This line item includes a de minimis amount of expected
                         economic loss or recovery associated with our previously
                         consolidated VIEs that is included in adjusted pretax operating
                         income above.
(4)                      Please see Exhibit F for the definition of this line item.
                          
                                                                      
                                                                          Reconciliation of Adjusted Diluted Net Operating Income Per
                                                                                       Share (1) to Net Income Per Share
                                                                                          from Continuing Operations
                                                                                                                                                                                          
                                                                                                                                    Year Ended
                                                                                                                                   December 31,
                                                                                          ----------------------------------------------------------------------------------------
                                                                                                          2015                                   2014
                                                                                          -------------------------------------                     -------------------------------------
Adjusted diluted net operating income per share                                                 $    1.40                              $    1.01  
                                                                                          ------- ------- --------------------                      ------- ------- --------------------
                                                                                                                                                                                          
After tax per share impact:
                                                                                                                                                                                          
   Net gains (losses) on investments and other financial instruments                                 0.09                                                      0.22
   Loss on induced conversion and debt extinguishment                                               (0.29 )                                          --
   Acquisition-related expenses                                                            --                                                     (0.02 )
   Amortization and impairment of intangible assets                                                 (0.04 )                                                   (0.02 )
   Difference between statutory and effective tax rate                                               0.04                                                      4.25                                       (2)
                                                                                                                                  
                                                                                          -------------------------------------                     -------------------------------------
Net income per share from continuing operations                                                 $    1.20                              $    5.44  
                                                                                          ======= ======= ====================                      ======= ======= ====================
                                                                                                                                                                                          
(1)   Calculated using the company’s statutory tax rate.
(2)                      Includes the tax benefit of $4.25 per share realized relating
                         to the reversal of our valuation allowance in 2014.
                          
                                                                                                                                                                                                                                                                  
Radian Group Inc. and Subsidiaries
Consolidated Non-GAAP Financial Measure Reconciliations
Exhibit G (page 3 of 3)
 
 
                                                                                                                                       Reconciliation of Services Segment EBITDA to Consolidated Pretax
                                                                                                                                                                    Income
                                                                                                                                                          from Continuing Operations
                                                                                                                                                                                                                                                                                                          
                                                                                                                                                                               2015                                                                                                                                      2014
                                                                              ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     -------------------------------------
(In thousands)                                                                              Qtr 4                              Qtr 3                              Qtr 2                               Qtr 1                                                     Qtr 4
--------------------------------------------------------                      ------------------------------                        ------------------------------                        -----------------------------                        ----------------------------------                        ----------------------------------
                                                                                                                                                                                                                                                                                                          
Services EBITDA                                                                 $   4,197                                             $   6,266                                             $  8,054                                                 $   3,871                                                 $   7,730
  Allocation of corporate operating expenses to Services                             (968 )                                              (1,567 )                                             (1,307 )                                                    (981 )                                                    (740 )
  Allocation of corporate interest expenses to Services                            (4,414 )                                              (4,423 )                                             (4,431 )                                                  (4,432 )                                                  (4,440 )
  Services depreciation and amortization                                             (612 )                                                (555 )                                               (482 )                                                    (449 )                                                    (442 )
                                                                              --------------------------------                      --------------------------------                      -------------------------------                      ------------------------------------                      ------------------------------------
Services adjusted pretax operating (loss) income                                   (1,797 )                                                (279 )                                              1,834                                                    (1,991 )                                                   2,108
Mortgage Insurance adjusted pretax operating income                               125,904                            115,905                           145,426                                125,892                                 56,336  
                                                                              --------------------------------                      --------------------------------                      -------------------------------                      ------------------------------------                      ------------------------------------
Total adjusted pretax operating income                                            124,107                                               115,626                                              147,260                                                   123,901                                                    58,444
                                                                                                                                                                                                                                                                                                          
                                                                                  (13,402 )                                               3,868                                               28,448                                                    16,779                                                    17,967
  Net (losses) gains on investments and other financial
  instruments
  Loss on induced conversion and debt extinguishment                               (2,320 )                                                 (11 )                                            (91,876 )                                          --                                            --
  Acquisition-related expenses                                                       (266 )                                                (525 )                                               (567 )                                                    (207 )                                                    (380 )
  Amortization and impairment of intangible assets                                 (3,409 )                                              (3,273 )                                             (3,281 )                                                  (3,023 )                                                  (5,354 )
                                                                              --------------------------------                      --------------------------------                      -------------------------------                      ------------------------------------                      ------------------------------------
Consolidated pretax income from continuing operations                           $ 104,710                          $ 115,685                          $ 79,984                              $ 137,450                              $  70,677  
                                                                              === ======= ====================                      === ======= ====================                      === ====== ====================                      ======= ======= ====================                      ======= ======= ====================
                                                                                                                                                                                                                                                                                                                          

On a consolidated basis, "adjusted pretax operating income" and "adjusted diluted net operating income per share" are measures not determined in accordance with GAAP. These measures are not representative of total profitability, and therefore should not be viewed as substitutes for GAAP pretax income from continuing operations or net income per share from continuing operations. Our definitions of adjusted pretax operating income and adjusted diluted net operating income per share may not be comparable to similarly-named measures reported by other companies. See Exhibit F for additional information on our consolidated non-GAAP financial measures.

                                                                                                                                                                                                                                
Radian Group Inc. and Subsidiaries
Mortgage Insurance Supplemental Information - New Insurance
Written
Exhibit H
                                                                                                                                                                                                                                                                        
                                                                                                                                                   2015                                                                                                                               2014
                                                         -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     -----------------------------------
($ in millions)                                                       Qtr 4                           Qtr 3                            Qtr 2                            Qtr 1                                                Qtr 4
-----------------------------------                      ---------------------------                        ----------------------------                        ----------------------------                        ---------------------------                        --------------------------------
                                                                                                                                                                                                                                                                        
Total primary new insurance written                       $ 9,099                         $ 11,176                         $ 11,751                         $ 9,385                             $ 10,009  
                                                         == ===== ====================                      == ====== ====================                      == ====== ====================                      == ===== ====================                      ====== ====== ====================
                                                                                                                                                                                                                                                                        
Percentage of primary new insurance
written by FICO score
-----------------------------------
                                                             60.3                    %                           61.0                    %                           63.0                    %                          63.6                    %                               60.2                    %
   >=740
                                                             32.2                                                31.9                                                30.8                                               30.3                                                    32.6
   680-739
                                                              7.5                              7.1                              6.2                             6.1                                  7.2  
   620-679
                                                         -------  --------------------                      --------  --------------------                      --------  --------------------                      -------  --------------------                      ------------  --------------------
Total Primary                                               100.0                    %                          100.0                    %                          100.0                    %                         100.0                    %                              100.0                    %
                                                         =============================                      ==============================                      ==============================                      =============================                      ==================================
                                                                                                                                                                                                                                                                        
Percentage of primary new insurance
written
-----------------------------------
Monthly and other premiums                                     71                    %                             73                    %                             68                    %                            63                    %                                 69                    %
Single premiums                                                29                    %                             27                    %                             32                    %                            37                    %                                 31                    %
                                                                                                                                                                                                                                                                        
Refinances                                                     17                    %                             13                    %                             23                    %                            33                    %                                 22                    %
LTV
   95.01% and above                                           3.6                    %                            3.5                    %                            3.2                    %                           1.8                    %                                0.5                    %
   90.01% to 95.00%                                          49.5                    %                           51.5                    %                           49.4                    %                          48.4                    %                               51.7                    %
   85.01% to 90.00%                                          34.4                    %                           34.1                    %                           34.0                    %                          33.3                    %                               33.2                    %
   85.00% and below                                          12.5                    %                           10.9                    %                           13.4                    %                          16.5                    %                               14.6                    %
                                                                                                                                                                                                                                                                                      
 
Radian Group Inc. and Subsidiaries
Mortgage Insurance Supplemental Information - Primary Insurance
in Force and Risk in Force by Product, Statutory Capital Ratios
Exhibit I
 
                                                               December 31,                          September 30,                        June 30,                           March 31,                          December 31,
($ in millions)                                                                       2015                                  2015                                                  2015                                                  2015                                                    2014
-------------------------------------------------                      -------------------------------       -------------------------------                        ------------------------------                        ------------------------------                        ---------------------------------
Primary insurance in force (1)
-------------------------------------------------
  Flow                                                                    $ 167,469                             $ 166,527                                             $ 164,137                                             $ 162,832                                                $ 162,302
  Structured                                                                  8,115              8,339                              8,555                              9,309                                 9,508  
                                                                       ---------------------------------     ---------------------------------                      --------------------------------                      --------------------------------                      -----------------------------------
Total Primary                                                             $ 175,584          $ 174,866                          $ 172,692                          $ 172,141                             $ 171,810  
                                                                       ==== ======= ====================     ==== ======= ====================                      === ======= ====================                      === ======= ====================                      ====== ======= ====================
                                                                                                                                                                                                                                                                                 
  Prime                                                                   $ 165,291                             $ 164,060                                             $ 161,397                                             $ 160,452                                                $ 159,647
  Alt-A                                                                       6,176                                 6,531                                                 6,857                                                 7,122                                                    7,412
  A minus and below                                                           4,117              4,275                              4,438                              4,567                                 4,751  
                                                                       ---------------------------------     ---------------------------------                      --------------------------------                      --------------------------------                      -----------------------------------
Total Primary                                                             $ 175,584          $ 174,866                          $ 172,692                          $ 172,141                             $ 171,810  
                                                                       ==== ======= ====================     ==== ======= ====================                      === ======= ====================                      === ======= ====================                      ====== ======= ====================
                                                                                                                                                                                                                                                                                 
Primary risk in force (1) (2)
-------------------------------------------------
  Flow                                                                    $  42,771                             $  42,454                                             $  41,706                                             $  41,256                                                $  41,071
  Structured                                                                  1,856              1,910                              1,957                              2,133                                 2,168  
                                                                       ---------------------------------     ---------------------------------                      --------------------------------                      --------------------------------                      -----------------------------------
Total Primary                                                             $  44,627          $  44,364                          $  43,663                          $  43,389                             $  43,239  
                                                                       ==== ======= ====================     ==== ======= ====================                      === ======= ====================                      === ======= ====================                      ====== ======= ====================
                                                                                                                                                                                                                                                                                 
Flow
  Prime                                                                   $  41,036                             $  40,629                                             $  39,781                                             $  39,251                                                $  38,977
  Alt-A                                                                       1,061                                 1,124                                                 1,191                                                 1,243                                                    1,295
  A minus and below                                                             674                701                                734                                762                                   799  
                                                                       ---------------------------------     ---------------------------------                      --------------------------------                      --------------------------------                      -----------------------------------
Total Flow                                                                $  42,771          $  42,454                          $  41,706                          $  41,256                             $  41,071  
                                                                       ==== ======= ====================     ==== ======= ====================                      === ======= ====================                      === ======= ====================                      ====== ======= ====================
                                                                                                                                                                                                                                                                                 
Structured
  Prime                                                                   $   1,134                             $   1,155                                             $   1,182                                             $   1,341                                                $   1,349
  Alt-A                                                                         366                                   386                                                   397                                                   410                                                      425
  A minus and below                                                             356                369                                378                                382                                   394  
                                                                       ---------------------------------     ---------------------------------                      --------------------------------                      --------------------------------                      -----------------------------------
Total Structured                                                          $   1,856          $   1,910                          $   1,957                          $   2,133                             $   2,168  
                                                                       ==== ======= ====================     ==== ======= ====================                      === ======= ====================                      === ======= ====================                      ====== ======= ====================
                                                                                                                                                                                                                                                                                 
Total
  Prime                                                                   $  42,170                             $  41,784                                             $  40,963                                             $  40,592                                                $  40,326
  Alt-A                                                                       1,427                                 1,510                                                 1,588                                                 1,653                                                    1,720
  A minus and below                                                           1,030              1,070                              1,112                              1,144                                 1,193  
                                                                       ---------------------------------     ---------------------------------                      --------------------------------                      --------------------------------                      -----------------------------------
Total Primary                                                             $  44,627          $  44,364                          $  43,663                          $  43,389                             $  43,239  
                                                                       ==== ======= ====================     ==== ======= ====================                      === ======= ====================                      === ======= ====================                      ====== ======= ====================
                                                                                                                                                                                                                                                                                 
Statutory Capital Ratios
-------------------------------------------------
Risk to capital ratio-Radian Guaranty only                                     14.3                   :1 (3)         16.5                   :1                             16.5                   :1                             17.1                   :1                                17.9                   :1
Risk to capital ratio-Mortgage Insurance combined                              14.6                   :1 (3)         17.9                   :1                             18.0                   :1                             19.1                   :1                                20.3                   :1
                                                                                                                                                                                                                                                                                                
(1)   Includes amounts ceded under our reinsurance agreements, as
                         well as amounts related to the Freddie Mac Agreement.
(2)                      Does not include pool risk in force or other risk in force,
                         which combined represent less than 3.0% of our total risk in force
                         for all periods presented.
(3)                      Preliminary.
                          
 
Radian Group Inc. and Subsidiaries
Mortgage Insurance Supplemental Information - Percentage of
Primary Risk in Force by FICO, LTV and Policy Year
Exhibit J
 
                                                         December 31,                      September 30,                      June 30,                        March 31,                         December 31,
($ in millions)                                                                 2015                                                 2015                                                2015                                               2015                                                   2014
--------------------------------------------                      -----------------------------                        -----------------------------                        ---------------------------                        ----------------------------                        ----------------------------------
Percentage of primary risk in force by
FICO score
--------------------------------------------
Flow
>=740</b>                                                               58.3 %                                               58.2 %                                             58.1 %                                              58.1 %                                                    58.1 %
680-739                                                                 30.5                                                 30.3                                               30.2                                                30.0                                                      29.7
620-679                                                                 10.1                                                 10.3                                               10.5                                                10.6                                                      10.8
<=619                                                                    1.1                               1.2                             1.2                              1.3                                    1.4  
                                                                  -------------------------------                      -------------------------------                      -----------------------------                      ------------------------------                      ------------------------------------
Total Flow                                                             100.0 %                                              100.0 %                                            100.0 %                                             100.0 %                                                   100.0 %
                                                                  ===============================                      ===============================                      =============================                      ==============================                      ====================================
                                                                                                                                                                                                                                                                                    
Structured
>=740</b>                                                               29.4 %                                               28.9 %                                             28.7 %                                              31.1 %                                                    30.3 %
680-739                                                                 27.7                                                 27.9                                               27.9                                                28.1                                                      28.5
620-679                                                                 25.0                                                 25.2                                               25.4                                                24.1                                                      24.3
<=619                                                                   17.9                              18.0                            18.0                             16.7                                   16.9  
                                                                  -------------------------------                      -------------------------------                      -----------------------------                      ------------------------------                      ------------------------------------
Total Structured                                                       100.0 %                                              100.0 %                                            100.0 %                                             100.0 %                                                   100.0 %
                                                                  =========  ====================                      =========  ====================                      =======  ====================                      ========  ====================                      ==============  ====================
                                                                                                                                                                                                                                                                                    
Total
>=740</b>                                                               57.1 %                                               57.0 %                                             56.7 %                                              56.8 %                                                    56.7 %
680-739                                                                 30.3                                                 30.2                                               30.1                                                29.8                                                      29.6
620-679                                                                 10.8                                                 10.9                                               11.2                                                11.3                                                      11.6
<=619                                                                    1.8                               1.9                             2.0                              2.1                                    2.1  
                                                                  -------------------------------                      -------------------------------                      -----------------------------                      ------------------------------                      ------------------------------------
Total Primary                                                          100.0 %                                              100.0 %                                            100.0 %                                             100.0 %                                                   100.0 %
                                                                  ===============================                      ===============================                      =============================                      ==============================                      ====================================
                                                                                                                                                                                                                                                                                    
Percentage of primary risk in force by LTV
--------------------------------------------
  95.01% and above                                                       7.3 %                                                7.4 %                                              7.6 %                                               7.9 %                                                     8.2 %
  90.01% to 95.00%                                                      50.4                                                 49.8                                               49.0                                                48.2                                                      47.5
  85.01% to 90.00%                                                      34.0                                                 34.3                                               34.6                                                35.0                                                      35.4
  85.00% and below                                                       8.3                               8.5                             8.8                              8.9                                    8.9  
                                                                  -------------------------------                      -------------------------------                      -----------------------------                      ------------------------------                      ------------------------------------
Total                                                                  100.0 %                                              100.0 %                                            100.0 %                                             100.0 %                                                   100.0 %
                                                                  ===============================                      ===============================                      =============================                      ==============================                      ====================================
                                                                                                                                                                                                                                                                                    
Percentage of primary risk in force by
policy year
--------------------------------------------
  2005 and prior                                                         6.3 %                                                6.8 %                                              7.3 %                                               7.8 %                                                     8.2 %
                                                                         3.7                                                  3.9                                                4.2                                                 4.4                                                       4.6
  2006
                                                                         8.7                                                  9.1                                                9.6                                                10.2                                                      10.6
  2007
                                                                         6.3                                                  6.6                                                7.0                                                 7.5                                                       7.9
  2008
                                                                         1.7                                                  1.8                                                2.0                                                 2.3                                                       2.5
  2009
                                                                         1.4                                                  1.5                                                1.7                                                 2.0                                                       2.1
  2010
                                                                         2.9                                                  3.1                                                3.5                                                 3.9                                                       4.2
  2011
                                                                        11.2                                                 12.0                                               13.0                                                14.2                                                      15.1
  2012
                                                                        18.1                                                 19.2                                               20.8                                                22.4                                                      23.8
  2013
                                                                        17.1                                                 18.0                                               19.0                                                20.0                                                      21.0
  2014
                                                                        22.6                              18.0                            11.9                              5.3                         --  
  2015
                                                                  ---------  --------------------                      ---------  --------------------                      -------  --------------------                      --------  --------------------                      --------------  --------------------
Total                                                                  100.0 %                                              100.0 %                                            100.0 %                                             100.0 %                                                   100.0 %
                                                                  ===============================                      ===============================                      =============================                      ==============================                      ====================================
                                                                                                                                                                                                                                                                                    
Primary risk in force on defaulted loans (1)                         $ 1,625                                              $ 1,666                                            $ 1,753                                             $ 1,883                                                 $   2,089
                                                                                                                                                                                                                                                                                                    
(1)   Excludes risk related to loans subject to the Freddie Mac
                         Agreement.
                          
 
Radian Group Inc. and Subsidiaries
Mortgage Insurance Supplemental Information - Claims and Reserves
Exhibit K
 
                                                                                                                                                                                                2015                                                                                                                                                                      2014
                                                                                    ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                          ------------------------------------
($ in thousands)                                                                                           Qtr 4                                                  Qtr 3                                                      Qtr 2                                         Qtr 1                                                                       Qtr 4
--------------------------------------------------------------                      -----------------------------------------------                        ------------------------------------------------------                        ------------------------------------------------------                        -----------------------------                                            ----------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                 
Net claims paid
  Prime                                                                                                $  56,900                                                              $         65,396                                                              $         83,489                                                              $    76,186                                                              $         74,342
  Alt-A                                                                                                   21,343                                                                        18,966                                                                        23,260                                                                   19,999                                                                        21,909
  A minus and below                                                                    11,530                                  14,028                                  14,965                             15,141                                                     12,600
                                                                                    -------------------- ------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- ---------                                           -------------------- --------------
Total primary claims paid                                                                                 89,773                                                                        98,390                                                                       121,714                                                                  111,326                                                                       108,851
  Pool                                                                                                     6,477                                                                         8,721                                                                        10,798                                                                    8,874                                                                         8,086
  Second-lien and other                                                                  (143 )                                                      (16 )                                                      (53 )                                                (111 )                                                      283
                                                                                    -------------------- ------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- --------- --------------------                      -------------------- --------------
Subtotal                                                                                                  96,107                                                                       107,095                                                                       132,459                                                                  120,089                                                                       117,220
  Impact of captive terminations                                                                             (65 )                                                              --                                                                --                                                                  (12,000 )                                                              --
  Impact of settlements                                                                80,426                                  61,994                                  79,557                             99,006                                             --
                                                                                    -------------------- ------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- ---------                                           -------------------- --------------
Total                                                                                                  $ 176,468                                           $        169,089                                           $        212,016                                           $   207,095                                                              $        117,220
                                                                                    ==================== ======= ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== =========                                           ==================== ==============
                                                                                                                                                                                                                                                                                                                                                                                                 
Average claim paid (1)
  Prime                                                                                                $    46.9                                                              $           46.2                                                              $           48.1                                                              $      44.0                                                              $           48.7
  Alt-A                                                                                                     61.7                                                                          60.2                                                                          59.5                                                                     54.6                                                                          58.7
  A minus and below                                                                                         40.6                                                                          42.5                                                                          40.1                                                                     35.9                                                                          39.3
Total primary average claims paid                                                                           48.7                                                                          47.8                                                                          48.7                                                                     44.2                                                                          49.0
  Pool                                                                                                      56.3                                                                          51.3                                                                          69.7                                                                     51.5                                                                          46.5
Total                                                                                                  $    48.9                                                              $           47.8                                                              $           49.6                                                              $      44.5                                                              $           48.2
                                                                                                                                                                                                                                                                                                                                                                                                 
Average primary claim paid (2)                                                                         $    50.5                                                              $           48.5                                                              $           49.6                                                              $      45.3                                                              $           50.4
Average total claim paid (2)                                                                           $    50.6                                                              $           48.5                                                              $           50.4                                                              $      45.5                                                              $           49.4
                                                                                                                                                                                                                                                                                                                                                                                                 
($ in thousands, except primary reserve                                                                December 31,                                                              September 30,                                                                   June 30,                                                         March 31,                                                                 December 31,
per
--------------------------------------------------------------
primary default amounts)                                                                                   2015                                                                      2015                                                                          2015                                                             2015                                                     2014
--------------------------------------------------------------                      -----------------------------------------------                        ------------------------------------------------------                        ------------------------------------------------------                        -----------------------------  --------------------                      ----------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                 
Reserve for losses by category
  Prime                                                                                                $ 480,481                                                              $        519,572                                                              $        562,918                                                              $   640,919                                                              $        700,174
  Alt-A                                                                                                  203,706                                                                       234,772                                                                       256,854                                                                  278,350                                                                       292,293
  A minus and below                                                                                      129,352                                                                       137,441                                                                       148,043                                                                  163,390                                                                       179,103
  IBNR and other                                                                                          83,066                                                                       107,179                                                                       125,038                                                                  167,204                                                                       223,114
  LAE                                                                                                     26,108                                                                        41,464                                                                        48,141                                                                   53,210                                                                        56,164
  Reinsurance recoverable (3)                                                           8,286                                  11,071                                  11,677                             13,365                                  26,665
                                                                                    -------------------- ------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- --------- --------------------                      -------------------- --------------
Total primary reserves                                                                930,999                               1,051,499                               1,152,671                          1,316,438                               1,477,513
                                                                                    -------------------- ------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- --------- --------------------                      -------------------- --------------
  Pool insurance                                                                                          42,084                                                                        43,234                                                                        47,902                                                                   62,943                                                                        75,785
  IBNR and other                                                                                           1,118                                                                           949                                                                           891                                                                    1,227                                                                         1,775
  LAE                                                                                   1,335                                   1,983                                   2,353                              3,051                                   3,542
                                                                                    -------------------- ------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- --------- --------------------                      -------------------- --------------
Total pool reserves                                                                    44,537                                  46,166                                  51,146                             67,221                                  81,102
                                                                                    -------------------- ------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- --------- --------------------                      -------------------- --------------
Total 1st lien reserves                                                                                  975,536                                                                     1,097,665                                                                     1,203,817                                                                1,383,659                                                                     1,558,615
  Second-lien and other                                                                   863                                     905                                     975                              1,055                                   1,417
                                                                                    -------------------- ------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- --------- --------------------                      -------------------- --------------
Total reserves                                                                                         $ 976,399                                           $      1,098,570                                           $      1,204,792                                           $ 1,384,714                                           $      1,560,032
                                                                                    ==================== ======= ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ========= ====================                      ==================== ==============
                                                                                                                                                                                                                                                                                                                                                                                                 
1st lien reserve per default
  Primary reserve per primary default excluding IBNR and other                                         $  24,019                                                              $         26,237                                                              $         27,279                                                              $    28,423                                                              $         27,683
(1)   Net of reinsurance recoveries and without giving effect to the
                         impact of captive terminations and settlements.
(2)                      Before reinsurance recoveries and without giving effect to the
                         impact of captive terminations and settlements.
(3)                      Primarily represents ceded losses on captive transactions and
                         quota share reinsurance transactions.
                          
                                                                                               
Radian Group Inc. and Subsidiaries
Mortgage Insurance Supplemental Information - Default Statistics
Exhibit L
                                                                                                                                                                                                
                                                      December 31,                       September 30,                       June 30,                          March 31,                                 December 31,
                                                          2015                               2015                              2015                              2015                                        2014
                                                      -------------                     --------------                     -------------                     -------------                     --------------------------------
Default Statistics
--------------------------------
Primary Insurance:
Prime
--------------------------------
  Number of insured loans                             816,797                           812,657                            802,719                           801,332                              797,436
  Number of loans in default                           22,223                            22,328                             23,237                            25,114                               28,246
  Percentage of loans in default                         2.72 %                            2.75 %                             2.89 %                            3.13 %                               3.54 %
                                                                                                                                                                                                
Alt-A
--------------------------------
  Number of insured loans                              32,411                            34,166                             35,927                            37,468                               38,953
  Number of loans in default                            5,813                             6,318                              6,949                             7,480                                8,136
  Percentage of loans in default                        17.94 %                           18.49 %                            19.34 %                           19.96 %                              20.89 %
                                                                                                                                                                                                
A minus and below
--------------------------------
  Number of insured loans                              31,902                            33,018                             34,224                            35,425                               36,688
  Number of loans in default                            7,267                             7,229                              7,490                             7,846                                8,937
  Percentage of loans in default                        22.78 %                           21.89 %                            21.89 %                           22.15 %                              24.36 %
                                                                                                                                                                                                
Total Primary
  Number of insured loans                             881,110                           879,841                            872,870                           874,225                              873,077
  Number of loans in default (1)                       35,303                            35,875                             37,676                            40,440                               45,319
  Percentage of loans in default                         4.01 %                            4.08 %                             4.32 %                            4.63 %                               5.19 %
                                                                                                                                                                                                           
(1)   Excludes the following number of loans subject to the Freddie
                         Mac Agreement that are in default as we no longer have claims
                         exposure on these loans:
                                                                                  
                                                December 31,                       September 30,                     June 30,                       March 31,                         December 31,
                                                    2015                               2015                            2015                           2015                                2014
                                                -------------                     --------------                     ---------                     ----------                     --------------------
Number of loans in default                       2,821                             2,993                             3,246                         3,715                                         4,467
                                                                                                                                                                                   
                                                                                                                                                                                                                                       
Radian Group Inc. and Subsidiaries
Mortgage Insurance Supplemental Information - Captives, QSR and
Persistency
Exhibit M
                                                                                                                                                                                                                                                                               
                                                                                                                                                                                   2015                                                                                                 2014
                                                                                                                  ---------------------------------------------------------------------------------------------------------------------------------------                     ------------------------
($ in thousands)                                                                                                         Qtr 4               Qtr 3               Qtr 2               Qtr 1                                     Qtr 4
--------------------------------------------------------------------------------------------                      ---------------                        ---------------                        ---------------                        ---------------                        ---------------------
1st Lien Captives
--------------------------------------------------------------------------------------------
Premiums ceded to captives                                                                                          $     2,268                            $     2,434                            $     2,700                            $     2,585                               $     3,078
% of total premiums                                                                                                         1.0   %                                1.0   %                                1.1   %                                1.1   %                                   1.3 %
Insurance in force included in captives (1)                                                                                 2.1   %                                2.2   %                                2.4   %                                2.5   %                                   2.8 %
Risk in force included in captives (1)                                                                                      1.9   %                                2.1   %                                2.2   %                                2.4   %                                   2.7 %
                                                                                                                                                                                                                                                                               
Initial Quota Share Reinsurance ("QSR")
Transaction
--------------------------------------------------------------------------------------------
QSR ceded premiums written                                                                                          $     3,145                            $     3,437                            $     3,822                            $     4,067                               $    (4,801 )
% of premiums written                                                                                                       1.3   %                                1.4   %                                1.5   %                                1.6   %                                  (1.9 )%
QSR ceded premiums earned                                                                                           $     4,647                            $     5,067                            $     6,425                            $     6,018                               $    (2,869 )
% of premiums earned                                                                                                        1.9   %                                2.1   %                                2.6   %                                2.5   %                                  (1.2 )%
Ceding commissions                                                                                                  $       681                            $       745                            $       828                            $       880                               $     1,108
Risk in force included in QSR (2)                                                                                   $   836,192                            $   889,298                            $   954,673                            $ 1,041,383                               $ 1,105,545
                                                                                                                                                                                                                                                                               
Second QSR Transaction
--------------------------------------------------------------------------------------------
QSR ceded premiums written                                                                                          $     3,789                            $     5,030                            $       394                            $     6,529                               $     9,303
% of premiums written                                                                                                       1.6   %                                2.0   %                                0.2   %                                2.6   %                                   3.7 %
QSR ceded premiums earned                                                                                           $     5,876                            $     7,134                            $     3,040                            $     8,768                               $     8,339
% of premiums earned                                                                                                        2.5   %                                3.0   %                                1.2   %                                3.6   %                                   3.6 %
Ceding commissions                                                                                                  $     1,872                            $     1,998                            $     2,154                            $     2,285                               $     3,256
Risk in force included in QSR (2)                                                                                   $ 1,294,838                            $ 1,364,615                            $ 1,440,312                            $ 1,533,677                               $ 1,615,554
                                                                                                                                                                                                                                                                               
Persistency (twelve months ended) (3)                                                                                      78.8   %                               79.2   %                               80.1   %                               82.6   %                                  84.2 %
Persistency (quarterly, annualized)                                                                                        81.8   %                               80.5   %                               76.2   %                               80.3   %                                  83.3 %
 
   (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.
   (2)                      Included in primary risk in force.
   (3)                      Effective March 31, 2015, we refined our persistency
                            calculation to incorporate loan level detail rather than
                            aggregated portfolio data. Prior periods have been recalculated
                            and reflect the current calculation methodology.
                             

FORWARD-LOOKING STATEMENTS

All statements in this report 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 Exchange Act and the U.S. Private Securities Litigation Reform Act of 1995. In most cases, forward-looking statements may be identified by words such as "anticipate," "may," "will," "could," "should," "would," "expect," "intend," "plan," "goal," "contemplate," "believe," "estimate," "predict," "project," "potential," "continue," "seek," "strategy," "future," "likely" or the negative or other variations on these words and other similar expressions. These statements, which may 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 statement. These statements speak only as of the date they were made, and we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. We operate in a changing environment. New risks emerge from time to time and it is not possible for us to predict all risks that may affect us. The forward-looking statements, as well as our prospects as a whole, are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements including:

-- changes in general economic and political conditions, including in particular but without limitation, unemployment rates and changes in housing markets and mortgage credit markets;

-- changes in the way customers, investors, regulators or legislators perceive the strength of private mortgage insurers;

-- Radian Guaranty Inc.’s ability to remain eligible under the Private Mortgage Insurer Eligibility Requirements ("PMIERs") and other applicable requirements imposed by the Federal Housing Finance Agency ("FHFA") and by Fannie Mae and Freddie Mac (collectively, the "GSEs") to insure loans purchased by the GSEs;

-- our ability to maintain sufficient holding company liquidity to meet our short- and long-term liquidity needs and to successfully execute and implement actions and activities related to our capital plans, including our ability to enter into and receive GSE approval for a reinsurance transaction to reduce exposure to our single premium policies, which we may not be able to do on favorable terms, if at all;

-- our ability to successfully execute and implement our business plans and strategies, including in particular but without limitation, plans and strategies that require GSE approval;

-- our ability to maintain an adequate level of capital in our insurance subsidiaries to satisfy existing and future state regulatory requirements;

-- changes in the charters or business practices of, or rules or regulations imposed by or applicable to the GSEs;

-- any disruption in the servicing of mortgages covered by our insurance policies, as well as poor servicer performance;

-- a decrease in the persistency rates of our mortgage insurance policies;

-- heightened competition in our mortgage insurance business, including in particular but without limitation, increased price competition;

-- changes to the current system of housing finance;

-- the effect of the Dodd-Frank Wall Street Reform and Consumer Protection Act on the financial services industry in general, and on our businesses in particular;

-- the adoption of new laws and regulations, or changes in existing laws and regulations, or the way they are interpreted;

-- the amount and timing of potential payments or adjustments associated with federal or other tax examinations, including deficiencies assessed by the Internal Revenue Service ("IRS") resulting from the examination of our 2000 through 2007 tax years, which we are currently contesting;

-- 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 business;

-- volatility in our results of operations caused by changes in the fair value of our assets and liabilities, including a significant portion of our investment portfolio;

-- changes in "GAAP" (accounting principles generally accepted in the U.S.) or "SAP" (statutory accounting practices including those required or permitted, if applicable, by the insurance departments of the respective states of domicile of our insurance subsidiaries) rules and guidance, or their interpretation;

-- legal and other limitations on amounts we may receive from our subsidiaries; and

-- the possibility that we may need to impair the estimated fair value of goodwill established in connection with our acquisition of Clayton Holdings 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 Item 1A of Part I of our Annual Report on Form 10-K for the year ended December 31, 2014 and in our subsequent reports and registration statements filed from time to time with the U.S. Securities and Exchange Commission. 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 press release. We do not intend to, and we disclaim any duty or obligation to, update or revise any forward-looking statements to reflect new information or future events or for any other reason.

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20160128005352r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20160128005352/en/

SOURCE: Radian Group Inc.

Radian Group Inc. 
Emily Riley, 215-231-1035 
emily.riley@radian.biz


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