Business Wire | Aug 7, 2020 04:36PM EDT

Radian Announces Second Quarter 2020 Financial Results

Aug. 07, 2020

PHILADELPHIA--(BUSINESS WIRE)--Aug. 07, 2020--Radian Group Inc. (NYSE: RDN) today reported a net loss for the quarter ended June 30, 2020, of $30.0 million, or $0.15 per diluted share. This compares to net income for the quarter ended June 30, 2019, of $166.7 million, or $0.78 per diluted share. The net loss was driven by an elevated loss provision in response to the increase in the number of new defaults, which include defaults of loans subject to forbearance programs implemented in response to the COVID-19 pandemic.

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

Quarter Quarter Ended Ended Percent June 30, June 30, Change 2020 2019

Net income (loss) ^(1) $(30.0) $166.7 (118)%

Diluted net income (loss) per share $(0.15) $0.78 (119)%

Consolidated pretax income (loss) $(42.2) $209.5 (120)%

Adjusted pretax operating income (loss) ^(2) $(88.5) $215.8 (141)%

Adjusted diluted net operating income (loss) per $(0.36) $0.80 (145)%share ^(2)

Return on equity ^(1)(3) (3.1)% 17.8% (117)%

Adjusted net operating return on equity ^(2) (7.1)% 18.2% (139)%

Book value per share ^(4) $20.82 $18.42 13%

PMIERs Available Assets ^(5) $4,228.9 $3,225.3 31%

PMIERs excess Available Assets ^(6) $1,002.4 $659.5 52%

Total Holding Company Liquidity ^(7) $1,403.1 $1,146.1 22%

Excess Available Resources to Support PMIERs ^ $2,371.0 $1,772.0 34%(8)

Total investments $6,431.4 $5,513.3 17%

New Insurance Written (NIW) - mortgage insurance $25,459 $18,539 37%

Primary mortgage insurance in force $241,306 $230,756 5%

Net premiums earned - mortgage insurance ^(9) $247.6 $296.3 (16)%

New defaults ^(10) 63,005 9,338 575%

Percentage of primary loans in default ^(11) 6.5% 1.9% 242%

Provision for losses - mortgage insurance $304.0 $47.2 544%

Mortgage insurance loss reserves $735.0 $401.3 83%

Net loss for the second quarter of 2020 includes a $47.3 million pretax net gain on investments and other financial instruments. Net income for(1) the second quarter of 2019 includes: (i) a $16.8 million loss on extinguishment of debt and (ii) a $12.5 million pretax net gain on investments and other financial instruments.

Adjusted results, including adjusted pretax operating income (loss), adjusted diluted net operating income (loss) per share and adjusted net(2) operating return on equity, are non-GAAP financial measures. For definitions and a reconciliation of these measures to the comparable GAAP measures, see Exhibits F and G.

Calculated by dividing annualized net income by average stockholder's(3) equity, based on the average of the beginning and ending balances for each period presented.

Accumulated other comprehensive income (loss) impacted book value per(4) share by $1.11 per share as of June 30, 2020, and $0.43 per share as of June 30, 2019.

Represents Radian Guaranty's Available Assets, calculated in accordance(5) with the Private Mortgage Insurer Eligibility Requirements (PMIERs) financial requirements in effect for each date shown.

Represents Radian Guaranty's excess or "cushion" of Available Assets over(6) its Minimum Required Assets, calculated in accordance with the PMIERs financial requirements in effect for each date shown.

Represents Radian Group's total liquidity, including the $35 million(7) minimum liquidity requirement and available capacity under its unsecured revolving credit facility.

Represents the sum of: (1) PMIERs excess Available Assets and (2) Total(8) Holding Company Liquidity, net of the $35 million minimum liquidity requirement under the unsecured revolving credit facility.

Includes a cumulative adjustment recorded in the second quarter of 2019(9) related to an update to the amortization rates used to recognize revenue for single premium policies.

(10) Represents new defaults in the number of loans reported during the period on loans related to primary mortgage insurance policies.

(11) Represents the number of primary loans in default as a percentage of the total number of insured primary loans.

Adjusted pretax operating loss for the quarter ended June 30, 2020, was $88.5 million, compared to $215.8 million adjusted pretax operating income for the quarter ended June 30, 2019. Adjusted diluted net operating loss per share for the quarter ended June 30, 2020, was $0.36, compared to adjusted diluted net operating income per share of $0.80 for the quarter ended June 30, 2019.

Book value as of June 30, 2020, was $4.0 billion, an increase of 5 percent compared to $3.8 billion as of June 30, 2019. Book value per share as of June 30, 2020 was $20.82, an increase of 13 percent compared to $18.42 as of June 30, 2019.

"Our results for the second quarter reflect the challenging COVID-19 pandemic environment we are operating in today and the resulting impact on our mortgage insurance portfolio," said Radian's Chief Executive Officer Rick Thornberry. "We continue to be encouraged by the impact of the programs put in place to help ease the burden of the crisis on homeowners, including mortgage forbearance programs and loss mitigation workout options. We are also pleased with the rebound in the housing market, which helped us to write record volume of new primary mortgage insurance business of $25.5 billion dollars in the second quarter."

Thornberry added, "While the ultimate financial impact to our company will depend upon the depth and duration of this economic cycle, we believe we are well prepared with a strong capital position, significant holding company resources, a solid business model, deep customer relationships and a dedicated and talented team. I am very proud of the resilience of our businesses and the strength and commitment of our One Radian unified team."

SECOND QUARTER HIGHLIGHTS

* NIW was $25.5 billion for the quarter, representing an increase of 53 percent compared to $16.7 billion in the first quarter of 2020 and an increase of 37 percent compared to $18.5 billion in the second quarter of 2019. Of the $25.5 billion in NIW in the second quarter of 2020, 85 percent was written with monthly and other recurring premiums, compared to 81 percent in the first quarter of 2020, and 83 percent in the second quarter of 2019. Refinances accounted for 44 percent of total NIW in the second quarter of 2020, compared to 34 percent in the first quarter of 2020 and 10 percent in the second quarter of 2019.

* Total primary mortgage insurance in force decreased slightly to $241.3 billion as of June 30, 2020, compared to $241.6 billion as of March 31, 2020, and increased 5 percent compared to $230.8 billion as of June 30, 2019. Persistency, which is the percentage of mortgage insurance that remains in force after a 12-month period, was 70.2 percent as of June 30, 2020, compared to 75.4 percent as of March 31, 2020, and 83.4 percent as of June 30, 2019. Annualized persistency for the three months ended June 30, 2020 was 63.8 percent, compared to 76.5 percent for the three months ended March 31, 2020, and 80.8 percent for the three months ended June 30, 2019.

* Net mortgage insurance premiums earned were $247.6 million for the quarter ended June 30, 2020, compared to $275.0 million for the quarter ended March 31, 2020, and $296.3 million for the quarter ended June 30, 2019. Net mortgage insurance premiums earned for the second quarter of 2020 were reduced by $28.2 million related to an adjustment to accrued profit commission due to increased losses, compared to profit commission increases of $8.6 million for the first quarter of 2020 and $21.7 million for the second quarter of 2019. Mortgage insurance in force premium yield was 44.3 basis points in the second quarter of 2020, compared to 46.1 basis points in the first quarter of 2020 and 55.9 basis points in the second quarter of 2019. Net mortgage insurance premiums earned for the second quarter of 2019 included an increase of $32.9 million as a result of a cumulative adjustment to unearned premiums related to an update to the amortization rates used to recognize revenue for single premium policies. Excluding the impact of this adjustment, in force premium yield was 47.9 basis points in the second quarter of 2019. The impact of single premium cancellations on premium yield before consideration of reinsurance represented 8.2 basis points in the second quarter of 2020, compared to 4.0 basis points in the first quarter of 2020, and 2.8 basis points in the second quarter of 2019. Total net mortgage insurance premium yield, which includes the impact of ceded premiums and accrued profit commission, was 41.0 basis points in the second quarter of 2020. This compares to 45.6 basis points in the first quarter of 2020, and 52.2 basis points in the second quarter of 2019, or 46.4 basis points excluding the impact of the updates to single premium policy amortization rates described above. Additional details regarding premiums earned may be found in Exhibit D.

* The mortgage insurance provision for losses was $304.0 million in the second quarter of 2020, compared to $35.2 million in the first quarter of 2020 and $47.2 million in the second quarter of 2019. The increase in the second quarter of 2020 is primarily related to the increase in the number of new defaults, which include defaults of loans subject to forbearance programs implemented in response to the COVID-19 pandemic. The number of primary delinquent loans was 69,742 as of June 30, 2020, compared to 19,781 as of March 31, 2020 and 19,643 as of June 30, 2019. The primary default rate was 6.5 percent in the second quarter of 2020, compared to 1.8 percent in the first quarter of 2020, and 1.9 percent in the second quarter of 2019. The gross default to claim rate assumption for new primary defaults was 8.5 percent at June 30, 2020, compared to 7.5 percent in the first quarter of 2020, and 8.0 percent in the second quarter of 2019. The loss ratio in the second quarter of 2020 was 122.8 percent, compared to 12.8 percent in the first quarter of 2020, and 15.9 percent in the second quarter of 2019. Mortgage insurance loss reserves were $735.0 million as of June 30, 2020, compared to $414.7 million as of March 31, 2020, and $401.3 million as of June 30, 2019. Total mortgage insurance claims paid were $22.8 million in the second quarter of 2020, compared to $23.4 million in the first quarter of 2020, and $32.4 million in the second quarter of 2019.

* Radian's Real Estate segment offers a broad array of title, valuation, asset management and other real estate services to market participants across the real estate value chain. Total Real Estate segment revenues for the second quarter of 2020 were $26.1 million, compared to $28.6 million for the first quarter of 2020, and $27.6 million for the second quarter of 2019. Adjusted earnings before interest, income taxes, depreciation and amortization and corporate allocations (Real Estate adjusted EBITDA) for the quarter ended June 30, 2020 was a loss of $0.7 million, compared to a loss of $0.4 million for the quarter ended March 31, 2020, and a loss of $0.5 million for the quarter ended June 30, 2019. Additional details regarding the non-GAAP measure Real Estate adjusted EBITDA may be found in Exhibits F and G.

* Other operating expenses were $60.6 million in the second quarter of 2020, compared to $69.1 million in the first quarter of 2020, and $70.0 million in the second quarter of 2019. The decrease in operating expenses in the second quarter of 2020, compared to the first quarter of 2020, was driven primarily by lower share-based incentive compensation expense as well as higher ceding commissions. The decrease in operating expenses in the second quarter of 2020, compared to the second quarter of 2019, was driven primarily by lower share-based compensation expense as well as lower technology related expense.

CAPITAL AND LIQUIDITY UPDATE

* At June 30, 2020, Excess Available Resources to Support PMIERs were $2.4 billion, or 73 percent above Radian Guaranty's Minimum Required Assets of approximately $3.2 billion. During the three months ended June 30, 2020, Excess Available Resources to Support PMIERs increased by $361 million.

Radian Group

* As of June 30, 2020, Radian Group maintained $1.1 billion of available liquidity. Total liquidity, which includes the company's existing $267.5 million unsecured revolving credit facility, was $1.4 billion as of June 30, 2020. Both available liquidity and total liquidity include the minimum liquidity requirement under the Company's unsecured revolving credit facility of $35 million. On May 6, 2020, Radian Group entered into an amendment to its $267.5 million unsecured revolving credit facility which extended the maturity date of the credit facility to January 18, 2022. * In May 2020, Radian Group issued $525 million aggregate principal amount of Senior Notes due 2025 and received net proceeds after expenses of $515.6 million. These notes mature on March 15, 2025 and bear interest at a rate of 6.625% per annum, payable semi-annually on March 15 and September 15 of each year, with interest payments commencing on September 15, 2020. * On May 13, 2020, Radian Group's board of directors authorized a regular quarterly dividend on its common stock in the amount of $0.125 per share and the dividend was paid on June 5, 2020.

Radian Guaranty

* At June 30, 2020, Radian Guaranty's Available Assets under the Private Mortgage Insurer Eligibility Requirements (PMIERs) totaled approximately $4.2 billion, resulting in an excess or "cushion" of approximately $1.0 billion, or 31 percent above its Minimum Required Assets of approximately $3.2 billion. During the three months ended June 30, 2020, Radian Guaranty's PMIERs cushion decreased by $127 million.

* As of June 30, 2020, 61.0% of Radian Guaranty's primary mortgage insurance risk in force is subject to some form of risk distribution, providing a $1.5 billion reduction of Minimum Required Assets under PMIERs.

RECENT EVENTS

Radian Guaranty Operating Statistics for July 2020

The information includes total new primary defaults, which include defaults under forbearance programs in response to the COVID-19 pandemic, as well as cures, claims paid and rescissions/denials. The information regarding new defaults and cures is reported to Radian Guaranty from loan servicers. We consider a loan to be in default for financial statement and internal tracking purposes upon receipt of notification by servicers that a borrower has missed two monthly payments. Default reporting, particularly on a monthly basis, may be affected by several factors, including the date on which the loan servicer's report is generated and transmitted to Radian Guaranty, the impact of updated information submitted by servicers and the timing of servicing transfers.

July 2020 June 2020 May 2020

Beginning Primary Default Inventory (# of 69,742 55,103 22,790 loans)

Plus: New Defaults 8,477 20,862 35,915

Less: Cures 10,678 6,119 3,424

Less: Claims Paid (1) 92 107 176

Less: Rescissions and Claim Denials, net (2) 16 (3 ) 2

Ending Defaults 67,433 69,742 55,103

(1) Includes those charged to a deductible or captive reinsurance transactions, as well as commutations.

Net of any previous Rescissions and Claim Denials that were reinstated(2) during the period. Such reinstated Rescissions and Claim Denials may ultimately result in a paid claim.

CONFERENCE CALL

Radian will discuss second quarter financial results in a conference call on Monday, August 10, 2020, at 10:00 a.m. Eastern time. The conference call will be broadcast live over the Internet at https://radian.com/who-we-are/for-investors/webcasts or at www.radian.com. The call may also be accessed by dialing 866.436.9172 inside the U.S., or 630.691.2760 for international callers, using passcode 49847107.

A digital replay of the webcast will be available on Radian's website approximately two hours after the live broadcast ends for a period of two weeks at https://radian.com/who-we-are/for-investors/webcasts, using passcode 49847107.

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 at www.radian.com, under Investors.

NON-GAAP FINANCIAL MEASURES

Radian believes that adjusted pretax operating income, adjusted diluted net operating income per share and adjusted net operating return on equity (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 considered in isolation or viewed as substitutes for GAAP measures of performance. The measures described below have been established in order to increase transparency for the purpose of evaluating the company's operating trends and enabling more meaningful comparisons with Radian's competitors.

Adjusted pretax operating income (loss) is defined as GAAP consolidated pretax income (loss) excluding the effects of: (i) net gains (losses) on investments and other financial instruments; (ii) loss on extinguishment of debt; (iii) amortization and impairment of goodwill and other acquired intangible assets; and (iv) impairment of other long-lived assets and other non-operating items, such as gains (losses) from the sale of lines of business and acquisition-related income and expenses. Adjusted diluted net operating income (loss) per share is calculated by dividing (i) adjusted pretax operating income (loss) attributable to common stockholders, 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. Adjusted net operating return on equity is calculated by dividing annualized adjusted pretax operating income (loss), net of taxes computed using the Company's statutory tax rate, by average stockholders' equity, based on the average of the beginning and ending balances for each period presented.

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 Real Estate segment, representing a measure of earnings before interest, income tax provision (benefit), depreciation and amortization ("EBITDA"). We calculate Real Estate adjusted 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. In addition, Real Estate adjusted EBITDA margin is calculated by dividing Real Estate adjusted EBITDA by GAAP total revenue for the Real Estate segment. Real Estate adjusted EBITDA and Real Estate adjusted EBITDA margin are used to facilitate comparisons with other services companies, since they are widely accepted measures of performance in the services industry and are used internally as supplemental measures to evaluate the performance of our Real Estate segment.

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. (NYSE: RDN) is ensuring the American dream of homeownership responsibly and sustainably through products and services that include industry-leading mortgage insurance and a comprehensive suite of mortgage, risk, title, valuation, asset management and other real estate services. We are powered by technology, informed by data and driven to deliver new and better ways to transact and manage risk. Visit www.radian.com to learn more about how Radian is shaping the future of mortgage and real estate services.

FINANCIAL RESULTS AND SUPPLEMENTAL INFORMATION CONTENTS (Unaudited)

For historical trend information, refer to Radian's quarterly financialstatistics at

http://www.radian.biz/page?name=FinancialReportsCorporate.

Exhibit A: Condensed Consolidated Statements of Operations Trend Schedule

Exhibit B: Net Income (Loss) Per Share Trend Schedule

Exhibit C: Condensed Consolidated Balance Sheets

Exhibit D: Net Premiums Earned

Exhibit E: Segment Information

Exhibit F: Definition of Consolidated Non-GAAP Financial Measures

Exhibit G: Consolidated Non-GAAP Financial Measure Reconciliations

Exhibit H: Mortgage Supplemental Information

New Insurance Written

Exhibit I: Mortgage Supplemental Information

Primary Insurance in Force and Risk in Force

Exhibit J: Mortgage Supplemental Information

Claims and Reserves

Exhibit K: Mortgage Supplemental Information

Default Statistics

Exhibit L: Mortgage Supplemental Information

Reinsurance Programs

Radian Group Inc. and SubsidiariesCondensed Consolidated Statements of Operations Trend Schedule

Exhibit A



2020 2019

(In thousands,except Qtr 2 Qtr 1 Qtr 4 Qtr 3 Qtr 2per-shareamounts)



Revenues:

Net premiums $ 249,295 $ 277,415 $ 301,486 $ 281,185 $ 299,166 earned

Services 28,075 31,927 40,031 42,509 39,303 revenue

Net investment 38,723 40,944 41,432 42,756 43,761 income

Net gains(losses) oninvestments 47,276 (22,027) 4,257 13,009 12,540 and otherfinancialinstruments

Other income 1,072 822 818 879 194

Total revenues 364,441 329,081 388,024 380,338 394,964



Expenses:

Provision for 304,418 35,951 34,619 29,231 47,427 losses

Policyacquisition 6,015 7,413 6,783 6,435 6,203 costs

Cost of 17,972 22,141 27,278 29,044 27,845 services

Otheroperating 60,582 69,110 80,894 76,384 70,046 expenses

Interest 16,699 12,194 12,160 13,492 14,961 expense

Loss onextinguishment - - - 5,940 16,798 of debt

Impairment of - - 4,828 - - goodwill

Amortizationand impairmentof other 979 979 15,823 2,139 2,139 acquiredintangibleassets

Total expenses 406,665 147,788 182,385 162,665 185,419



Pretax income (42,224) 181,293 205,639 217,673 209,545 (loss)

Income taxprovision (12,273) 40,832 44,455 44,235 42,815 (benefit)

Net income $ (29,951) $ 140,461 $ 161,184 $ 173,438 $ 166,730 (loss)



Diluted netincome (loss) $ (0.15) $ 0.70 $ 0.79 $ 0.83 $ 0.78 per share

Radian Group Inc. and Subsidiaries

Net Income (Loss) Per Share Trend Schedule

Exhibit B

The calculation of basic and diluted net income (loss) per share was asfollows:

2020 2019

(In thousands,except per-share Qtr 2 Qtr 1 Qtr 4 Qtr 3 Qtr 2amounts)

Net income (loss) $ (29,951) $ 140,461 $ 161,184 $ 173,438 $ 166,730 -basic and diluted



Average commonshares 193,299 200,161 203,431 203,107 208,097 outstanding-basic(1)

Dilutive effect ofshare-based - 1,658 1,734 5,584 5,506 compensationarrangements (2)

Adjusted averagecommon shares 193,299 201,819 205,165 208,691 213,603 outstanding-diluted



Basic net income $ (0.15) $ 0.70 $ 0.79 $ 0.85 $ 0.80 (loss) per share



Diluted net income $ (0.15) $ 0.70 $ 0.79 $ 0.83 $ 0.78 (loss) per share

(1) Includes the impact of fully vested shares under our share-based compensation programs.

There were no dilutive shares for the three months ended June 30, 2020, as a result of our net loss for the period. The following number of shares of(2) our common stock equivalents issued under our share-based compensation arrangements were not included in the calculation of diluted net income (loss) per share because they were anti-dilutive:

2020 2019

(In thousands) Qtr 2 Qtr 1 Qtr 4 Qtr 3 Qtr 2

Shares of common stock equivalents 2,295 132 - - 168

Radian Group Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

Exhibit C

June 30, March 31, December 31, September 30, June 30,

(Inthousands,except 2020 2020 2019 2019 2019per-shareamounts)



Assets:

Investments $ 6,431,350 $ 5,608,627 $ 5,658,747 $ 5,533,724 $ 5,513,319

Cash 68,387 54,108 92,729 49,393 74,111

Restricted 16,279 7,817 3,545 2,853 5,007 cash

Accounts andnotes 110,722 123,381 93,630 144,113 122,104 receivable

Deferredincome taxes, - - - - 6,872 net

Goodwill andotheracquired 26,229 27,208 28,187 52,533 54,672 intangibleassets, net

Prepaidreinsurance 330,476 356,104 363,856 374,339 385,805 premium

Other assets 585,866 513,187 567,619 513,647 430,236

Total assets $ 7,569,309 $ 6,690,432 $ 6,808,313 $ 6,670,602 $ 6,592,126



Liabilitiesand stockholders'equity:

Unearned $ 561,280 $ 605,045 $ 626,822 $ 647,856 $ 666,354 premiums

Reserve forlosses andloss 738,885 418,202 404,765 398,141 405,278 adjustmentexpense

Senior notes 1,403,857 887,584 887,110 886,643 982,890

FHLB advances 175,122 173,760 134,875 104,492 106,382

Reinsurancefunds 312,350 302,551 291,829 352,532 339,641 withheld

Other 391,810 438,782 414,189 358,431 308,337 liabilities

Total 3,583,304 2,825,924 2,759,590 2,748,095 2,808,882 liabilities



Common stock 210 208 219 220 223

Treasury (909,738) (902,024) (901,657) (901,556) (901,419) stock

Additionalpaid-in 2,232,949 2,231,670 2,449,884 2,469,097 2,539,803 capital

Retained 2,450,423 2,504,853 2,389,789 2,229,107 2,056,175 earnings

Accumulatedother 212,161 29,801 110,488 125,639 88,462 comprehensiveincome

Totalstockholders' 3,986,005 3,864,508 4,048,723 3,922,507 3,783,244 equity

Totalliabilitiesand $ 7,569,309 $ 6,690,432 $ 6,808,313 $ 6,670,602 $ 6,592,126 stockholders'equity



Shares 191,492 190,387 201,164 202,219 205,399 outstanding



Book value $ 20.82 $ 20.30 $ 20.13 $ 19.40 $ 18.42 per share



Debt tocapital ratio 26.0 % 18.7 % 18.0 % 18.4 % 20.6 %(1)

Risk tocapital 13.3:1 13.8:1 13.6:1 14.2:1 14.6:1ratio-RadianGuaranty only

(1) Calculated as senior notes divided by senior notes and stockholders' equity.

Radian Group Inc. and Subsidiaries

Net Premiums Earned

Exhibit D

2020 2019

(In Qtr 2 Qtr 1 Qtr 4 Qtr 3 Qtr 2 thousands)



Premiums earned:

Direct - Mortgage:

Premiumsearned,excluding $ 263,468 $ 274,647 $ 295,845 (1) $ 274,595 $ 315,109 (2)revenue fromcancellations

SinglePremium 50,023 24,133 26,479 27,254 15,793 Policycancellations

Total direct 313,491 298,780 322,324 (1) 301,849 330,902 (2)- Mortgage



Assumed -Mortgage: (1) 3,197 3,456 2,837 2,614 2,481 (3)



Ceded - Mortgage:

Premiumsearned,excluding (26,493) (28,609) (28,055) (28,457) (53,948) (2)revenue fromcancellations

SinglePremiumPolicy (14,424) (7,183) (7,843) (8,137) (4,833) cancellations(4)

Profitcommission - (28,175) 8,555 9,241 9,729 21,732 (2)other (5)

Total cededpremiums, netof profit (69,092) (27,237) (26,657) (26,865) (37,049) (2)commission -Mortgage (6)

Net premiumsearned - 247,596 274,999 298,504 (1) 277,598 296,334 (2)Mortgage

Net premiumsearned - Real 1,699 2,416 2,982 3,587 2,832 Estate

Net premiums $ 249,295 $ 277,415 $ 301,486 (1) $ 281,185 $ 299,166 (2)earned

(1) Includes a cumulative impact related to the recognition of deferred initial premiums on monthly policies.

Includes a cumulative adjustment to unearned premiums related to an update(2) to the amortization rates used to recognize revenue for Single Premium Policies.

(3) Includes premiums earned from our participation in certain credit risk transfer programs.

(4) Includes the impact of related profit commissions.

(5) The amounts represent the profit commission on the Single Premium QSR Program, excluding the impact of Single Premium Policy cancellations.

(6) See Exhibit L for additional information on ceded premiums for our various reinsurance programs.

Radian Group Inc. and SubsidiariesSegment Information

Exhibit E (page 1 of 3)

Summarized financial information concerning our reportable operating segmentsand all other activities as of and for the periods indicated is as follows. Fora definition of adjusted pretax operating income (loss) and Real Estateadjusted EBITDA, along with reconciliations to consolidated GAAP measures, seeExhibits F and G.

Mortgage

2020 2019

(In Qtr 2 Qtr 1 Qtr 4 Qtr 3 Qtr 2thousands)

Net premiums $ 229,458 $ 260,974 $ 287,952 (2) $ 270,567 $ 265,345written (1)

(Increase)decrease in 18,138 14,025 10,552 7,031 30,989 (3)unearnedpremiums

Net premiums 247,596 274,999 298,504 277,598 296,334earned

Services 3,918 3,216 2,936 2,375 1,895revenue (4)

Netinvestment 34,708 36,198 37,818 37,032 37,871income (4)

Other income 721 671 719 641 544(4)

Total (4) 286,943 315,084 339,977 317,646 336,644



Provision for 304,021 35,246 34,411 29,053 47,165losses

Policyacquisition 6,015 7,413 6,783 6,435 6,203costs

Cost of 2,133 1,757 1,713 1,621 1,128services (4)

Otheroperatingexpensesbefore 18,705 23,733 32,604 30,773 28,089corporateallocations(4) (5)

Interestexpensebefore 3,064 680 688 682 625corporateallocations(6)

Total (4) (7) 333,938 68,829 76,199 68,564 83,210

Adjustedpretaxoperatingincome (loss) (46,995) 246,255 263,778 249,082 253,434beforecorporateallocations(4)

Allocation ofcorporate 25,191 29,074 27,394 26,671 24,388operatingexpenses

Allocation ofcorporate 16,135 11,514 11,472 12,810 14,336interestexpense

Adjustedpretaxoperating $ (88,321) $ 205,667 $ 224,912 $ 209,601 $ 214,710income (loss)(4)

Real Estate

2020 2019

(In Qtr 2 Qtr 1 Qtr 4 Qtr 3 Qtr 2thousands)

Net premiums $ 1,699 $ 2,416 $ 2,982 $ 3,587 $ 2,832earned

Servicesrevenue (4) 24,267 26,042 23,826 26,375 25,026(7)

Netinvestment 126 125 144 177 177income

Other income - - - - (408)

Total (4) 26,092 28,583 26,952 30,139 27,627



Provision for 426 743 238 211 318losses

Cost of 15,893 17,933 16,275 18,155 17,773services (4)

Otheroperatingexpensesbefore 11,251 10,938 11,972 11,404 10,649corporateallocations(4) (5)

Total (4) 27,570 29,614 28,485 29,770 28,740

Adjustedpretaxoperatingincome (loss) (1,478) (1,031) (1,533) 369 (1,113)beforecorporateallocations(4) (8)

Allocation ofcorporate 3,339 3,836 2,987 2,910 2,659operatingexpenses (4)

Adjustedpretaxoperating $ (4,817) $ (4,867) $ (4,520) $ (2,541) $ (3,772)income (loss)(4)

Radian Group Inc. and SubsidiariesSegment InformationExhibit E (page 2 of 3)

All Other (4) (9)

2020 2019

(In thousands) Qtr 2 Qtr 1 Qtr 4 Qtr 3 Qtr 2

Services revenue (7) $ - $ 2,861 $ 13,559 $ 14,027 $ 12,748

Net investment income 6,389 4,621 3,470 5,547 5,713

Other income 104 151 99 238 58

Total 6,493 7,633 17,128 19,812 18,519



Cost of services (35) 2,556 9,500 9,387 9,113

Other operating expenses 1,889 1,278 4,037 4,742 4,505

Adjusted pretax $ 4,639 $ 3,799 $ 3,591 $ 5,683 $ 4,901 operating income

Net of ceded premiums written under the QSR Programs and the(1) Excess-of-Loss Program. See Exhibit L for additional information.

Includes a cumulative impact related to the recognition of deferred(2) initial premiums on monthly policies.

Includes a cumulative adjustment to unearned premiums related to an update(3) to the amortization rates used to recognize revenue for Single Premium Policies.

Certain organizational changes implemented in the first quarter of 2020 caused the composition of our reportable segments to change. These changes(4) to our reportable segments have been reflected in our segment operating results for all periods presented.

Does not include impairment of other long-lived assets and other(5) non-operating items, which are not considered components of adjusted pretax operating income (loss).

Primarily relates to FHLB borrowings made by our mortgage insurance subsidiaries. Prior to March 31, 2020, this amount had been presented in(6) allocation of corporate interest expense. All prior periods have been restated to reflect the current presentation.

(7) Inter-segment information:

2020 2019

Qtr 2 Qtr 1 Qtr 4 Qtr 3 Qtr 2

Inter-segment revenue included in:

Mortgage $ - $ 83 $ 160 $ 35 $ 23

Real Estate 110 109 88 111 133

All Other 2,500 (a) - 42 122 210

Total inter-segment revenue $ 2,610 $ 192 $ 290 $ 268 $ 366



Inter-segment expense included in:

Mortgage $ 2,591 (a) $ 87 $ 79 $ 150 $ 196

Real Estate 19 22 16 (1) (18)

All Other - 83 195 119 188

Total inter-segment expense $ 2,610 $ 192 $ 290 $ 268 $ 366

Primarily relates to interest on the $200.0 million 3% intercompany(a) surplus note issued by Radian Guaranty to Radian Group.

Supplemental information for Real Estate adjusted EBITDA (see definition(8) in Exhibit F):

2020 2019

Qtr 2 Qtr 1 Qtr 4 Qtr 3 Qtr 2

Adjustedpretaxoperatingincome (loss) $ (1,478) $ (1,031) $ (1,533) $ 369 $ (1,113) beforecorporateallocations

Depreciationand 776 666 553 560 616 amortization

Real Estateadjusted $ (702) $ (365) $ (980) $ 929 $ (497) EBITDA

All Other activities include income (losses) from assets held by our holding company, related general corporate operating expenses not(9) attributable or allocated to our reportable segments and, for all periods through the first quarter of 2020, income and expenses related to Clayton prior to its sale on January 21, 2020.

Radian Group Inc. and Subsidiaries

Segment Information

Exhibit E (page 3 of 3)

Selected Mortgage Key Ratios



2020 2019

Qtr 2 Qtr 1 Qtr 4 Qtr 3 Qtr 2



Loss ratio (1) 122.8 % 12.8 % 11.5 % 10.5 % 15.9 %

Expense ratio (1) 20.2 % 21.9 % 22.4 % 23.0 % 19.8 %

(1) Calculated on a GAAP basis using net premiums earned.

Radian Group Inc. and SubsidiariesDefinition of Consolidated Non-GAAP Financial MeasuresExhibit F (page 1 of 2)

Use of Non-GAAP Financial MeasuresIn addition to the traditional GAAP financial measures, we have presented"adjusted pretax operating income (loss)," "adjusted diluted net operatingincome (loss) per share" and "adjusted net operating return on equity," whichare non-GAAP financial measures for the consolidated company, among our keyperformance indicators to evaluate our fundamental financial performance. Thesenon-GAAP financial measures align with the way the Company's businessperformance is evaluated by both management and the board of directors. Thesemeasures have been established in order to increase transparency for thepurposes of evaluating our operating trends and enabling more meaningfulcomparisons with our peers. Although on a consolidated basis "adjusted pretaxoperating income (loss)," "adjusted diluted net operating income (loss) pershare" and "adjusted net operating return on equity" are non-GAAP financialmeasures, we believe these measures aid in understanding the underlyingperformance of our operations. Our senior management, including our ChiefExecutive Officer (Radian's chief operating decision maker), uses adjustedpretax operating income (loss) as our primary measure to evaluate thefundamental financial performance of the Company's business segments and toallocate resources to the segments.Adjusted pretax operating income (loss) is defined as GAAP consolidated pretaxincome (loss) excluding the effects of: (i) net gains (losses) on investmentsand other financial instruments; (ii) loss on extinguishment of debt; (iii)amortization and impairment of goodwill and other acquired intangible assets;and (iv) impairment of other long-lived assets and other non-operating items,such as gains (losses) from the sale of lines of business andacquisition-related income and expenses. Adjusted diluted net operating income(loss) per share is calculated by dividing (i) adjusted pretax operating income(loss) attributable to common stockholders, net of taxes computed using theCompany's statutory tax rate, by (ii) the sum of the weighted average number ofcommon shares outstanding and all dilutive potential common shares outstanding.Adjusted net operating return on equity is calculated by dividing annualizedadjusted pretax operating income (loss), net of taxes computed using theCompany's statutory tax rate, by average stockholders' equity, based on theaverage of the beginning and ending balances for each period presented.Although adjusted pretax operating income (loss) excludes certain items thathave occurred in the past and are expected to occur in the future, the excludeditems represent those that are: (i) not viewed as part of the operatingperformance of our primary activities or (ii) not expected to result in aneconomic impact equal to the amount reflected in pretax income (loss). Theseadjustments, along with the reasons for their treatment, are described below. 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(1) opportunities, our tax and capital profile and overall market cycles. Unrealized gains and losses arise primarily from changes in the market value of our investments that are classified as trading or equity securities. These valuation adjustments may not necessarily result in realized 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 and changes in fair value of other financial instruments. We do not view them to be indicative of our fundamental operating activities.

Loss on extinguishment of debt. Gains or losses on early extinguishment of debt and losses incurred to purchase our debt prior to maturity are discretionary activities that are undertaken in order to take advantage of(2) market opportunities to strengthen our financial and capital positions; therefore, we do not view these activities 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.

Amortization and impairment of goodwill and other acquired intangible assets. Amortization of acquired intangible assets represents the periodic expense required to amortize the cost of acquired intangible assets over(3) their estimated useful lives. Acquired intangible assets are also periodically reviewed for potential impairment, and impairment adjustments are made whenever appropriate. We do not view these charges as part of the operating performance of our primary activities.

Impairment of other long-lived assets and other non-operating items.(4) Includes activities that we do not view to be indicative of our fundamental operating activities, such as: (i) gains (losses) from the sale of lines of business and (ii) acquisition-related expenses.

Radian Group Inc. and Subsidiaries

Definition of Consolidated Non-GAAP Financial Measures

Exhibit F (page 2 of 2)

In addition to the above non-GAAP measures for the consolidated company, wealso have presented as supplemental information a non-GAAP measure for our RealEstate segment, representing a measure of earnings before interest, income taxprovision (benefit), depreciation and amortization ("EBITDA"). We calculateReal Estate adjusted EBITDA by using adjusted pretax operating income (loss) asdescribed above, further adjusted to remove the impact of depreciation andcorporate allocations for interest and operating expenses. In addition, RealEstate adjusted EBITDA margin is calculated by dividing Real Estate adjustedEBITDA by GAAP total revenue for the Real Estate segment. Real Estate adjustedEBITDA and Real Estate adjusted EBITDA margin are used to facilitatecomparisons with other services companies, since they are widely acceptedmeasures of performance in the services industry and are used internally assupplemental measures to evaluate the performance of our Real Estate segment.See Exhibit G for the reconciliation of the most comparable GAAP measures,consolidated pretax income (loss), diluted net income (loss) per share, returnon equity and book value per share, to our non-GAAP financial measures for theconsolidated company, adjusted pretax operating income (loss) , adjusteddiluted net operating income (loss) per share and adjusted net operating returnon equity, respectively. Exhibit G also contains the reconciliation of the mostcomparable GAAP measure, net income (loss), to Real Estate adjusted EBITDA.Total adjusted pretax operating income (loss), adjusted diluted net operatingincome (loss) per share, adjusted net operating return on equity, Real Estateadjusted EBITDA and Real Estate adjusted EBITDA margin should not be consideredin isolation or viewed as substitutes for GAAP pretax income (loss), dilutednet income (loss) per share, return on equity, book value per share or netincome (loss). Our definitions of adjusted pretax operating income (loss),adjusted diluted net operating income (loss) per share, adjusted net operatingreturn on equity, Real Estate adjusted EBITDA or Real Estate adjusted EBITDAmargin may not be comparable to similarly-named measures reported by othercompanies.

Radian Group Inc. and SubsidiariesConsolidated Non-GAAP Financial Measure Reconciliations

Exhibit G (page 1 of 3)

Reconciliation of Consolidated Pretax Income (Loss) to Adjusted PretaxOperating Income (Loss)



2020 2019

(In thousands) Qtr 2 Qtr 1 Qtr 4 Qtr 3 Qtr 2

Consolidatedpretax income $ (42,224) $ 181,293 $ 205,639 $ 217,673 $ 209,545 (loss)

Lessreconcilingincome (expense)items:

Net gains(losses) oninvestments 47,276 (22,027) 4,257 13,009 12,540 and otherfinancialinstruments

Loss onextinguishment - - - (5,940) (16,798) of debt

Impairment of - - (4,828) - - goodwill

Amortizationand impairmentof other (979) (979) (15,823) (2,139) (2,139) acquiredintangibleassets

Impairment ofotherlong-livedassets and (22) (300) (1,950) - 103 othernon-operatingitems (1)

Total adjustedpretaxoperating $ (88,499) $ 204,599 $ 223,983 $ 212,743 $ 215,839 income (loss)(2)

The amounts for all the periods are included in other operating expenses(1) on the Condensed Consolidated Statement of Operations in Exhibit A and primarily relate to impairments of other long-lived assets.

Total adjusted pretax operating income (loss) consists of adjusted pretax(2) operating income (loss) for each reportable segment and All Other activities as follows:

2020 2019

(In Qtr 2 Qtr 1 Qtr 4 Qtr 3 Qtr 2thousands)

Adjustedpretaxoperating income(loss):

Mortgage $ (88,321) $ 205,667 $ 224,912 $ 209,601 $ 214,710 segment

RealEstate (4,817) (4,867) (4,520) (2,541) (3,772) segment

All Other 4,639 3,799 3,591 5,683 4,901 activities

Totaladjustedpretax $ (88,499) $ 204,599 $ 223,983 $ 212,743 $ 215,839 operatingincome(loss)

Radian Group Inc. and Subsidiaries

Consolidated Non-GAAP Financial Measure Reconciliations

Exhibit G (page 2 of 3)

Reconciliation of Diluted Net Income (Loss) Per Share to Adjusted Diluted NetOperating Income (Loss) Per Share

2020 2019

Qtr 2 Qtr 1 Qtr 4 Qtr 3 Qtr 2

Diluted net income $ (0.15) $ 0.70 $ 0.79 $ 0.83 $ 0.78 (loss) per share



Less per-share impactof reconciling income (expense) items:

Net gains (losses) oninvestments and other 0.24 (0.11) 0.02 0.06 0.06 financial instruments

Loss on extinguishment - - - (0.03) (0.08) of debt

Impairment of goodwill - - (0.02) - -

Amortization andimpairment of other (0.01) - (0.08) (0.01) (0.01) acquired intangibleassets

Impairment of otherlong-lived assets and - - (0.01) - - other non-operatingitems

Income tax (provision)benefit on reconciling (0.05) 0.02 0.02 - 0.01 income (expense) items(1)

Difference betweenstatutory and effective 0.03 (0.01) - - - tax rates

Per-share impact ofreconciling income 0.21 (0.10) (0.07) 0.02 (0.02) (expense) items

Adjusted diluted netoperating income (loss) $ (0.36) $ 0.80 $ 0.86 $ 0.81 $ 0.80 per share (1)

Calculated using the company's federal statutory tax rate of 21%. Any(1) permanent tax adjustments and state income taxes on these items have been deemed immaterial and are not included.

Reconciliation of Return on Equity to Adjusted Net Operating Return on Equity(1)



2020 2019

Qtr 2 Qtr 1 Qtr 4 Qtr 3 Qtr 2

Return on equity (1) (3.1) % 14.2 % 16.2 % 18.0 % 17.8 %

Less impact of reconciling income (expense) items: (2)

Net gains (losses) oninvestments and other 4.8 (2.2) 0.4 1.4 1.3 financial instruments

Loss on extinguishment of debt - - - (0.6) (1.8)

Impairment of goodwill - - (0.5) - -

Amortization and impairment ofother acquired intangible (0.1) (0.1) (1.6) (0.2) (0.2) assets

Impairment of other long-livedassets and other non-operating - - (0.2) - - items

Income tax (provision) benefiton reconciling income (1.0) 0.5 0.4 (0.1) 0.1 (expense) items (3)

Difference between statutory 0.3 (0.3) (0.1) 0.1 0.2 and effective tax rates

Impact of reconciling income 4.0 (2.1) (1.6) 0.6 (0.4) (expense) items

Adjusted net operating return (7.1) % 16.3 % 17.8 % 17.4 % 18.2 %on equity

Calculated by dividing annualized net income (loss) by average(1) stockholders' equity, based on the average of the beginning and ending balances for each period presented.

(2) Annualized, as a percentage of average stockholders' equity.

Calculated using the company's federal statutory tax rate of 21%. Any(3) permanent tax adjustments and state income taxes on these items have been deemed immaterial and are not included.

Radian Group Inc. and Subsidiaries

Consolidated Non-GAAP Financial Measure Reconciliations

Exhibit G (page 3 of 3)

Reconciliation of Net Income (Loss) to Real Estate Adjusted EBITDA



2020 2019

(In thousands) Qtr 2 Qtr 1 Qtr 4 Qtr 3 Qtr 2



Net income $ (29,951) $ 140,461 $ 161,184 $ 173,438 $ 166,730 (loss)

Lessreconcilingincome (expense)items:

Net gains(losses) oninvestments 47,276 (22,027) 4,257 13,009 12,540 and otherfinancialinstruments

Loss onextinguishment - - - (5,940) (16,798) of debt

Impairment of - - (4,828) - - goodwill

Amortizationand impairmentof other (979) (979) (15,823) (2,139) (2,139) acquiredintangibleassets

Impairment ofotherlong-livedassets and (22) (300) (1,950) - 103 othernon-operatingitems

Income tax(provision) 12,273 (40,832) (44,455) (44,235) (42,815) benefit

Mortgageadjustedpretax (88,321) 205,667 224,912 209,601 214,710 operatingincome (loss)

All Otheradjustedpretax 4,639 3,799 3,591 5,683 4,901 operatingincome

Real Estateadjustedpretax (4,817) (4,867) (4,520) (2,541) (3,772) operatingincome (loss)



Lessreconcilingincome (expense)items:

Allocation ofcorporateoperating (3,339) (3,836) (2,987) (2,910) (2,659) expenses toReal Estate

Real Estatedepreciation (776) (666) (848) (865) (976) andamortization

Real Estateadjusted $ (702) $ (365) $ (685) $ 1,234 $ (137) EBITDA

On a consolidated basis, "adjusted pretax operating income (loss)," "adjusteddiluted net operating income (loss) per share" and "adjusted net operatingreturn on equity" are measures not determined in accordance with GAAP. "RealEstate adjusted EBITDA" and "Real Estate adjusted EBITDA margin" are alsonon-GAAP measures. These measures should not be considered in isolation orviewed as substitutes for GAAP pretax income (loss), diluted net income (loss)per share, return on equity, book value per share or net income (loss). Ourdefinitions of adjusted pretax operating income (loss), adjusted diluted netoperating income (loss) per share, adjusted net operating return on equity,Real Estate adjusted EBITDA or Real Estate adjusted EBITDA margin may not becomparable to similarly-named measures reported by other companies. See ExhibitF for additional information on our consolidated non-GAAP financial measures.

Radian Group Inc. and Subsidiaries

Mortgage Supplemental Information - New Insurance Written

Exhibit H

2020 2019

($ in millions) Qtr 2 Qtr 1 Qtr 4 Qtr 3 Qtr 2



Total primarynew insurance $ 25,459 $ 16,706 $ 19,953 $ 22,037 $ 18,539 written



Percentage ofprimary newinsurance written by FICOscore (1)

>=740 67.3 % 65.7 % 66.3 % 64.1 % 62.2 %

680-739 30.1 31.1 30.5 31.5 32.5

620-679 2.6 3.2 3.2 4.4 5.3

Total primarynew insurance 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %written



Percentage ofprimary new insurancewritten

Borrower-paid 97.8 % 96.7 % 97.4 % 97.1 % 96.5 %



Percentage by premium type

Direct monthlyand other 84.7 % 81.1 % 82.1 % 85.0 % 83.3 %recurringpremiums

Direct single premiums: (2)

Borrower-paid 13.6 16.5 16.0 13.1 14.2 (3)

Lender-paid 1.7 2.4 1.9 1.9 2.5

Total primarynew insurance 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %written



Primary newinsurance 56.4 % 66.2 % 67.5 % 80.7 % 89.8 %written forpurchases

Primary newinsurance 43.6 % 33.8 % 32.5 % 19.3 % 10.2 %written forrefinances



Percentage by LTV

95.01% and 8.3 % 9.9 % 11.5 % 16.8 % 20.5 %above

90.01% to 36.4 37.6 35.8 37.4 38.1 95.00%

85.01% to 29.8 30.3 30.0 27.4 26.9 90.00%

85.00% and 25.5 22.2 22.7 18.4 14.5 below

Total primarynew insurance 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %written

(1) For loans with multiple borrowers, the percentage of primary new insurance written by FICO score represents the lowest of the borrowers' FICO scores.

(2) Percentages exclude the impact of reinsurance.

(3) Borrower-paid Single Premium Policies have lower Minimum Required Assets under PMIERs as compared to lender-paid Single Premium Policies.

Radian Group Inc. and Subsidiaries

Mortgage Supplemental Information - Primary Insurance in Force and Risk inForce

Exhibit I (page 1 of 2)

June 30, March 31, December September June 30, 31, 30,

($ in 2020 2020 2019 2019 2019millions)

Primaryinsurance in force(1)

Prime $ 236,835 $ 236,958 $ 235,742 $ 232,086 $ 225,443

Alt-A andA minus 4,471 4,628 4,816 5,072 5,313 and below

Total $ 241,306 $ 241,586 $ 240,558 $ 237,158 $ 230,756 Primary



Primaryrisk in force (1)(2)

Prime $ 59,253 $ 59,827 $ 59,780 $ 59,217 $ 57,795

Alt-A andA minus 1,058 1,096 1,141 1,203 1,262 and below

Total $ 60,311 $ 60,923 $ 60,921 $ 60,420 $ 59,057 Primary



Percentageof primary risk inforce

Directmonthlyand other 73.8 % 72.6 % 72.4 % 72.0 % 71.2 %recurringpremiums

Directsingle 26.2 % 27.4 % 27.6 % 28.0 % 28.8 %premiums



Percentageof primaryrisk in force byFICO score(3)

>=740 57.4 % 57.2 % 56.9 % 56.2 % 55.7 %

680-739 34.3 34.2 34.2 34.5 34.6

620-679 7.7 8.0 8.2 8.6 8.9

<=619 0.6 0.6 0.7 0.7 0.8

Total 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %Primary



Percentageof primaryrisk in force byLTV

95.01% and 14.2 % 14.3 % 14.2 % 13.9 % 13.2 %above

90.01% to 50.4 51.0 51.3 51.9 52.5 95.00%

85.01% to 28.1 27.9 27.9 27.9 28.2 90.00%

85.00% and 7.3 6.8 6.6 6.3 6.1 below

Total 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %



Percentageof primaryrisk in force bypolicyyear

2008 and 7.2 % 7.5 % 7.8 % 8.4 % 8.9 %prior

2009 - 2.8 3.0 3.3 3.5 4.1 2012

2013 3.5 3.9 4.2 4.6 5.2

2014 3.6 4.0 4.3 4.8 5.3

2015 6.1 6.9 7.4 8.1 8.9

2016 10.6 11.7 12.5 13.5 14.8

2017 13.0 14.8 16.0 17.4 18.9

2018 14.0 16.4 17.9 19.7 21.8

2019 23.3 25.4 26.6 20.0 12.1

2020 15.9 6.4 - - -

Total 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %



Primaryrisk inforce on $ 4,263 $ 1,001 $ 1,061 $ 1,012 $ 986 defaultedloans

Tablecontinuedon nextpage.

Radian Group Inc. and Subsidiaries

Mortgage Supplemental Information - Primary Insurance in Force and Risk inForce

Exhibit I (page 2 of 2)



Table continued from prior page.

June March December September June 30, 31, 31, 30, 30,

2020 2020 2019 2019 2019

Persistency Rate (12 months 70.2 % 75.4 % 78.2 % 81.5 % 83.4 %ended)

Persistency Rate (quarterly, 63.8 % 76.5 % 75.0 % 75.5 % 80.8 %annualized) (4)

(1) Excludes the impact of premiums ceded under our reinsurance agreements.

Does not include pool risk in force or other risk in force, which combined(2) represent approximately 1.0% of our total risk in force for all periods presented.

(3) For loans with multiple borrowers, the percentage of primary risk in force by FICO score represents the lowest of the borrowers' FICO scores.

The Persistency Rate on a quarterly, annualized basis is calculated based on loan-level detail for the quarter ending as of the date shown. It may(4) be impacted by seasonality or other factors, including the level of refinance activity during the applicable periods, and may not be indicative of full-year trends.

Radian Group Inc. and Subsidiaries

Mortgage Supplemental Information - Claims and Reserves

Exhibit J

2020 2019

($ in Qtr 2 Qtr 1 Qtr 4 Qtr 3 Qtr 2thousands)



Net claims paid: (1)

Total primary $ 22,144 $ 24,358 $ 24,267 $ 28,981 $ 31,940 claims paid

Total pool and 639 (911) 559 901 472 other

Subtotal 22,783 23,447 24,826 29,882 32,412

Impact ofcommutations - (56) 3,691 6,812 15 and settlements(2)

Total net $ 22,783 $ 23,391 $ 28,517 $ 36,694 $ 32,427 claims paid



Total averagenet primary $ 47.9 $ 50.3 $ 50.9 $ 47.0 $ 50.1 claim paid (1)(3)



Average directprimary claim $ 49.0 $ 51.4 $ 52.1 $ 48.1 $ 51.1 paid (3) (4)

(1) Net of reinsurance recoveries.

(2) Includes payments to commute mortgage insurance coverage on certain performing and non-performing loans.

(3) Calculated without giving effect to the impact of captive reinsurance terminations and other commutations.

(4) Before reinsurance recoveries.

($ inthousands, June 30, March 31, December September June 30,except 31, 30,primaryreserveperprimary 2020 2020 2019 2019 2019defaultamounts)



Reservefor lossesby category(1)

Mortgage reserves

Prime $ 573,463 $ 264,694 $ 248,727 $ 236,382 $ 242,378

Alt-A andA minus 86,646 88,481 91,093 95,723 104,863 and below

IBNR and 43,342 40,583 40,920 42,117 33,888 other (2)

LAE 16,807 9,216 8,918 9,000 9,070

Totalprimary 720,258 402,974 389,658 383,222 390,199 reserves

Total pool 14,398 11,297 11,322 10,605 10,816 reserves

Total 1stlien 734,656 414,271 400,980 393,827 401,015 reserves

Other 335 407 293 260 279

TotalMortgage 734,991 414,678 401,273 394,087 401,294 reserves

RealEstate 3,894 3,524 3,492 4,054 3,984 reserves

Total $ 738,885 $ 418,202 $ 404,765 $ 398,141 $ 405,278 reserves



1st lienreserve perdefault

Primaryreserveperprimary $ 9,706 $ 18,320 $ 16,399 $ 16,900 $ 18,139 defaultexcludingIBNR andother

Includes ceded losses on reinsurance transactions, which are expected to(1) be recovered and are included in the reinsurance recoverables reported in other assets in our condensed consolidated balance sheets.

For the quarters ended September 30, 2019 and June 30, 2019, includes increases of $11.8 million and $19.4 million, respectively, in the(2) Company's IBNR reserve estimate related to previously disclosed legal proceedings involving challenges from certain servicers regarding loss mitigation activities.

Radian Group Inc. and Subsidiaries

Mortgage Supplemental Information - Default Statistics

Exhibit K

June 30, March 31, December September June 30, 31, 30,

2020 2020 2019 2019 2019

Default Statistics

Primary Insurance:

Prime

Number ofinsured 1,040,964 1,049,974 1,049,954 1,040,520 1,018,715 loans

Number ofloans in 64,648 15,497 16,532 15,345 14,521 default

Percentageof loans 6.21 % 1.48 % 1.57 % 1.47 % 1.43 %in default



Alt-A andA minus and below

Number ofinsured 28,357 29,375 30,439 32,163 33,609 loans

Number ofloans in 5,094 4,284 4,734 4,839 5,122 default

Percentageof loans 17.96 % 14.58 % 15.55 % 15.05 % 15.24 %in default



Total Primary

Number ofinsured 1,069,321 1,079,349 1,080,393 1,072,683 1,052,324 loans

Number ofloans in 69,742 19,781 21,266 20,184 19,643 default

Percentageof loans 6.52 % 1.83 % 1.97 % 1.88 % 1.87 %in default

Radian Group Inc. and Subsidiaries

Mortgage Supplemental Information - Reinsurance Programs

Exhibit L

2020 2019

($ in Qtr 2 Qtr 1 Qtr 4 Qtr 3 Qtr 2 thousands)



Quota ShareReinsurance("QSR") and Single PremiumQSR Programs

Ceded premiums $ 35,821 $ 6,687 $ 9,217 $ 8,408 $ 588 written (1)

% of premiums 13.0 % 2.4 % 3.0 % 2.9 % 2.2 % written

Ceded premiums $ 60,652 $ 18,712 $ 19,428 $ 19,295 $ 29,212 (2)earned

% of premiums 19.2 % 6.2 % 6.1 % 6.3 % 8.7 % earned

Cedingcommissions $ (5,304) $ 8,413 $ 6,836 $ 6,778 $ 6,861 written

Cedingcommissions $ 13,453 $ 9,966 $ 12,055 $ 12,153 $ 16,353 (2)earned (3)

Profit $ (10,649) $ 16,405 $ 17,792 $ 18,346 $ 26,476 (2)commission

Ceded losses $ 39,635 $ 1,962 $ 1,533 $ 771 $ 1,868



Excess-of-Loss Program

Ceded premiums $ 7,525 $ 12,678 $ 6,834 $ 6,878 $ 13,468 written

% of premiums 2.7 % 4.5 % 2.2 % 2.4 % 4.8 % written

Ceded premiums $ 8,321 $ 8,405 $ 7,104 $ 7,452 $ 7,662 earned

% of premiums 2.6 % 2.8 % 2.2 % 2.4 % 2.3 % earned



Ceded RIF (4)

QSR Program $ 532,743 $ 596,166 $ 644,512 $ 702,201 $ 768,554

Single Premium 8,173,756 8,580,047 8,582,067 8,538,363 8,495,651 QSR Program

Excess-of-Loss 1,170,200 1,230,000 850,800 974,800 1,017,440 Program

Total Ceded $ 9,876,699 $ 10,406,213 $ 10,077,379 $ 10,215,364 $ 10,281,645 RIF



PMIERs impact- reduction inMinimum RequiredAssets (5)

QSR Program $ 30,837 $ 31,638 $ 35,382 $ 38,227 $ 41,873

Single Premium 517,028 501,668 511,695 513,832 516,468 QSR Program

Excess-of-Loss 970,294 1,066,464 738,386 834,072 926,640 Program

Total PMIERs $ 1,518,159 $ 1,599,770 $ 1,285,463 $ 1,386,131 $ 1,484,981 impact

(1) Net of profit commission, where applicable.

Includes a cumulative adjustment to unearned premiums related to an update(2) to the amortization rates used to recognize revenue for Single Premium Policies.

Includes amounts reported in policy acquisition costs and other operating(3) expenses. Operating expenses include the following ceding commissions, net of deferred policy acquisition costs, for the periods indicated:

2020 2019

($ in Qtr 2 Qtr 1 Qtr 4 Qtr 3 Qtr 2thousands)



Ceding $ (10,406) $ (7,967) $ (7,973) $ (8,160) $ (12,408) commissions

(4) Included in primary RIF.

(5) Excludes the impact of intercompany reinsurance.

FORWARD-LOOKING STATEMENTS

All statements in this press release that address events, developments or results that we expect or anticipate may occur in the future are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the U.S. Private Securities Litigation Reform Act of 1995. 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, including management's current views regarding the likely impacts of the COVID-19 pandemic. 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 where new risks emerge from time to time and it is not possible for us to predict all risks that may affect us, particularly those associated with the COVID 19 pandemic, which has had wide-ranging and continually evolving effects. 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. These risks and uncertainties include, without limitation:

* the COVID-19 pandemic, which has significantly impacted the global economy, disrupted global supply chains, lowered equity market valuations, created significant volatility and disruption in financial markets, disrupted the housing finance system and real estate markets and increased unemployment levels. In addition, the pandemic has resulted in travel restriction, stay-at-home, quarantine and similar orders, which have resulted in the closures of many businesses and, for those permitted to open, numerous operating limitations such as social distancing and other extensive health and safety measures. As a result, the demand for certain of our products and services has been impacted, and this impact may continue for an unknown period and could expand in scope. We expect that the COVID-19 pandemic and measures taken to reduce its spread will pervasively impact our business and subject us to certain risks, including those discussed in "Item 1A. Risk Factors-The COVID-19 pandemic has adversely impacted our business, and its ultimate impact on our business and financial results will depend on future developments, which are highly uncertain and cannot be predicted, including the scope and duration of the pandemic and actions taken by governmental authorities in response to the pandemic." and the other risk factors in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2020 and in our subsequent reports and registration statements filed from time to time with the U.S. Securities and Exchange Commission; * further changes in economic and political conditions, including those resulting from COVID-19, that impact the size of the insurable market, the credit performance of our insured portfolio, and our business prospects; * changes in the way customers, investors, ratings agencies, regulators or legislators perceive our performance, financial strength and future prospects; * Radian Guaranty Inc.'s ("Radian Guaranty") ability to remain eligible under the Private Mortgage Insurer Eligibility Requirements (the "PMIERs"), including potential future changes to the PMIERs, and other applicable requirements imposed by the Federal Housing Finance Agency (the "FHFA") and by Fannie Mae and Freddie Mac (collectively, the "GSEs") to insure loans purchased by the GSEs; * the proposed Enterprise Regulatory Capital Framework that would, among other items, establish significant capital requirements for the GSEs once finalized, which could impact the GSEs' operations and the size of the insurable mortgage insurance market, and which may form the basis for future versions of the PMIERs; * our ability to successfully execute and implement our capital plans, including our risk distribution strategy through the capital markets and reinsurance markets, and to maintain sufficient holding company liquidity to meet our liquidity needs; * our ability to successfully execute and implement our business plans and strategies, including plans and strategies that require GSE and/or regulatory approvals and various licenses and complex compliance requirements; * our ability to maintain an adequate level of capital in our insurance subsidiaries to satisfy existing and future regulatory requirements, including the PMIERs and any changes thereto, as discussed above, and potential changes to the Mortgage Guaranty Insurance Model Act currently under consideration; * changes in the charters or business practices of, or rules or regulations imposed by or applicable to, the GSEs, which may include changes in the requirements to remain an approved insurer to the GSEs, the GSEs' interpretation and application of the PMIERs, as well as changes impacting loans purchased by the GSEs, including changes to the GSEs' business practices in response to the COVID-19 pandemic; * changes in the current housing finance system in the United States, including the role of the Federal Housing Administration (the "FHA"), the GSEs and private mortgage insurers in this system; * uncertainty from the expected discontinuance of LIBOR and transition to one or more alternative benchmarks that could cause interest rate volatility and, among other things, impact our investment portfolio, cost of debt and cost of reinsurance through mortgage insurance-linked notes transactions; * any disruption in the servicing of mortgages covered by our insurance policies, as well as poor servicer performance, which could result from the significant financial and operational challenges many servicers are facing due to the impact of the COVID-19 pandemic; * a decrease in the "Persistency Rates" (the percentage of insurance in force that remains in force over a period of time) of our mortgage insurance on monthly premium products; * competition in our mortgage insurance business, including price competition and competition from the FHA and U.S. Department of Veterans Affairs as well as from other forms of credit enhancement, including GSE-sponsored alternatives to traditional mortgage insurance; * 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, including the proposed changes to the "qualified mortgages" (QM) loan requirements which currently are being considered by the Consumer Financial Protection Bureau; * legislative and regulatory activity (or inactivity), including the adoption of (or failure to adopt) new laws and regulations, or changes in existing laws and regulations, or the way they are interpreted or applied, including the enactment of the Coronavirus Aid, Relief, and Economic Security ("CARES") Act and the adoption, interpretation or application of laws and regulations in response to COVID-19; * legal and regulatory claims, assertions, actions, reviews, audits, inquiries and investigations that could result in adverse judgments, settlements, fines, injunctions, restitutions or other relief that could require significant expenditures, new or increased reserves or have other effects on our business; * the amount and timing of potential settlements, payments or adjustments associated with federal or other tax examinations; * the possibility that we may fail to estimate accurately, especially in the event of an extended economic downturn or a period of extreme market volatility and uncertainty such as we are currently experiencing due to the COVID-19 pandemic, the likelihood, magnitude and timing of losses in establishing loss reserves for our mortgage insurance business or to accurately calculate and/or project our Available Assets and Minimum Required Assets under the PMIERs, which will be impacted by, among other things, the size and mix of our insurance in force, the level of defaults in our portfolio, the reported status of defaults in our portfolio, including whether they are subject to forbearance, a repayment plan or a trial period under a loan modification in response to COVID-19, the level of cash flow generated by our insurance operations and our risk distribution strategies; * volatility in our financial results caused by changes in the fair value of our assets and liabilities, including our investment portfolio; * changes in "GAAP" (accounting principles generally accepted in the U.S.) or "SAPP" (statutory accounting principles and 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; * our ability to attract and retain key employees; and * legal and other limitations on amounts we may receive from our subsidiaries, including dividends or ordinary course distributions under our internal tax- and expense-sharing arrangements.

For more information regarding these risks and uncertainties as well as certain additional risks that we face, you should refer to "Item 1A. Risk Factors" in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2020 and "Item 1A. Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2019, and to 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.

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CONTACT: For Investors: John Damian - Phone: 215.231.1383 email: john.damian@radian.com

CONTACT: For Media: Rashi Iyer - Phone 215.231.1167 email: rashi.iyer@radian.com