Business Wire | May 4, 2021 06:16PM EDT

Radian Announces First Quarter 2021 Financial Results

May 04, 2021

PHILADELPHIA--(BUSINESS WIRE)--May 04, 2021--Radian Group Inc. (NYSE: RDN) today reported net income for the quarter ended March 31, 2021, of $125.6 million, or $0.64 per diluted share. This compares with net income for the quarter ended March 31, 2020, of $140.5 million, or $0.70 per diluted share.

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

Quarter ended

March 31, December March 31, 2021 31, 2020 2020

Net income ^(1) $125.6 $148.0 $140.5

Diluted net income per share $0.64 $0.76 $0.70

Consolidated pretax income $161.2 $179.2 $181.3

Adjusted pretax operating income ^(2) $167.3 $171.0 $204.6

Adjusted diluted net operating income per $0.68 $0.69 $0.80share ^(2)(3)

Return on equity^(1)(4) 11.8% 14.1% 14.2%

Adjusted net operating return on equity ^(2) 12.4% 12.9% 16.3%(3)

New Insurance Written (NIW) - mortgage $20,161 $29,781 $16,706insurance

Net premiums earned - mortgage insurance ^(5) $264.7 $286.8 $275.0

New defaults ^(6) 11,851 14,552 9,960

Provision for losses - mortgage insurance $45.9 $56.3 $35.2

Book value per share ^(7) $22.14 $22.36 $20.30

PMIERs Available Assets ^(8) $4,909 $4,700 $4,061

PMIERs excess Available Assets ^(9) $1,451 $1,338 $1,129

Total Holding Company Liquidity ^(10) $1,292 $1,371 $916

Excess Available Resources to Support PMIERs ^ $2,708 $2,674 $2,010(11)

Total investments $6,672 $6,788 $5,609

Primary mortgage insurance in force $238,921 $246,144 $241,586

Percentage of primary loans in default ^(12) 4.9% 5.2% 1.8%

Mortgage insurance loss reserves $883 $844 $415

Net income for the first quarter of 2021 includes a pretax net loss on investments and other financial instruments of $5.2 million, compared to(1) a net gain on investments and other financial instruments of $17.4 million in the fourth quarter of 2020 and a net loss on investments and other financial instruments for the first quarter of 2020 of $22.0 million.

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

(3) Calculated using the company's statutory tax rate of 21 percent.

Calculated by dividing annualized net income by average stockholders'(4) equity, based on the average of the beginning and ending balances for each period presented.

The fourth quarter of 2020 includes an increase to premiums earned of $11.3 million related to changes in present value estimates for initial(5) premiums on monthly policies that are deferred and not collected until cancellation. The impact of changes in this estimate in other periods is not material.

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

Book value per share includes accumulated other comprehensive income(7) (loss) of $0.61 as of March 31, 2021, $1.38 as of December 31, 2020 and $0.16 as of March 31, 2020.

Represents Radian Guaranty's Available Assets, calculated in accordance(8) 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(9) 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(10) minimum liquidity requirement and available capacity under its unsecured revolving credit facility.

Represents the sum of: (1) PMIERs excess Available Assets and (2) Total(11) Holding Company Liquidity, net of the $35 million minimum liquidity requirement under the unsecured revolving credit facility.

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

Adjusted pretax operating income for the quarter ended March 31, 2021, was $167.3 million, or $0.68 per diluted share. This compares with adjusted pretax operating income for the quarter ended March 31, 2020 of $204.6 million, or $0.80 per diluted share.

Book value as of March 31, 2021 was $4.2 billion, an increase of 10 percent compared to $3.9 billion as of March 31, 2020. Book value per share at March 31, 2021, was $22.14, an increase of 9 percent compared to $20.30 at March 31, 2020.

"While the unprecedented pandemic environment continued in the first quarter of 2021, year-over-year we successfully increased book value per share by 9%, grew PMIERs excess available assets to $1.5 billion, increased monthly premium mortgage insurance in force by 9% and increased our title revenues by 56%," said Radian's Chief Executive Officer Rick Thornberry. "We are encouraged by the continued signs of improvement in the overall economy, the positive momentum in the housing market and the favorable credit trends within our portfolio. Our results are a testament to the strength of our business model and the dedication of our team, who has shown commitment to our customers, our company and to each other as we have worked together to successfully navigate this challenging environment."

FIRST QUARTER HIGHLIGHTS

* NIW was $20.2 billion in the first quarter of 2021, compared to $29.8 billion in the fourth quarter of 2020 and $16.7 billion in the first quarter of 2020. Of the $20.2 billion in NIW in the first quarter of 2021, 90.2 percent was written with monthly and other recurring premiums, compared to 91.4 percent in the fourth quarter of 2020, and 81.1 percent in the first quarter of 2020. Refinances accounted for 41 percent of total NIW in the first quarter of 2021, compared to 35 percent in the fourth quarter of 2020, and 34 percent in the first quarter of 2020. * Total primary mortgage insurance in force as of March 31, 2021, declined to $238.9 billion, a decrease of 2.9 percent compared to $246.1 billion as of December 31, 2020, and a decrease of 1.1 percent compared to $241.6 billion as of March 31, 2020. The year over year decrease included a 26.3 percent decline in single premium policy insurance in force, partially offset by a 8.7 percent increase in monthly premium policy insurance in force. Persistency, which is the percentage of mortgage insurance that remains in force after a twelve-month period, was 57.2 percent for the twelve months ended March 31, 2021, compared to 61.2 percent for the twelve months ended December 31, 2020 and 75.4 percent for the twelve months ended March 31, 2020. Annualized persistency for the three months ended March 31, 2021, was 62.5 percent, compared to 60.4 percent for the three months ended December 31, 2020, and 76.5 percent for the three months ended March 31, 2020. * Net mortgage insurance premiums earned were $264.7 million for the quarter ended March 31, 2021, compared to $286.8 million for the quarter ended December 31, 2020, and $275.0 million for the quarter ended March 31, 2020. Mortgage insurance in force portfolio premium yield was 42.7 basis points in the first quarter of 2021, compared to 44.6 basis points in the fourth quarter of 2020 and 46.1 basis points in the first quarter of 2020. Net mortgage insurance premiums earned in the fourth quarter of 2020 included an increase of $11.3 million for the cumulative recognition of deferred initial premiums on monthly premium policies. Excluding the impact of this adjustment, in force premium yield was 42.8 basis points in the fourth quarter of 2020. The impact of single premium policy cancellations before consideration of reinsurance represented 6.4 basis points of direct premium yield in the first quarter of 2021, 8.7 basis points in the fourth quarter of 2020, and 4.0 basis points in the first quarter of 2020. Total net mortgage insurance premium yield, which includes the impact of ceded premiums and accrued profit commission, was 43.7 basis points in the first quarter of 2021, 46.7 basis points in the fourth quarter of 2020, or 44.8 basis points excluding the impact of the fourth quarter 2020 premium adjustment, and 45.6 basis points in the first quarter of 2020. Additional details regarding premiums earned may be found in Exhibit D. * The mortgage insurance provision for losses was $45.9 million in the first quarter of 2021, compared to $56.3 million in the fourth quarter of 2020, and $35.2 million in the first quarter of 2020. The number of primary delinquent loans was 50,106 as of March 31, 2021, compared to 55,537 as of December 31, 2020 and 19,781 as of March 31, 2020. The loss ratio in the first quarter of 2021 was 17.3 percent, compared to 19.6 percent in the fourth quarter of 2020 and 12.8 percent in the first quarter of 2020. Total mortgage insurance claims paid were $10.5 million in the first quarter of 2021, compared to $40.6 million in the fourth quarter of 2020, and $23.4 million in the first quarter of 2020. Excluding the impact of commutations and settlements, claims paid were $6.5 million in the first quarter of 2021, compared to $8.4 million in the fourth quarter of 2020 and $23.4 million in the first quarter of 2020. * 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 first quarter of 2021 were $25.8 million, compared to $23.6 million for the fourth quarter of 2020, and $26.5 million for the first quarter of 2020. Adjusted earnings before interest, income taxes, depreciation and amortization (Real Estate adjusted EBITDA) for the quarter ended March 31, 2021 was a loss of $5.9 million, compared to a loss of $7.0 million for the quarter ended December 31, 2020, and income of $0.9 million for the quarter ended March 31, 2020. Additional details regarding the non-GAAP measure Real Estate adjusted EBITDA may be found in Exhibits F and G. The decrease in Real Estate adjusted EBITDA in the first quarter of 2021 compared to the first quarter of 2020 was primarily driven by declines in services revenue related to our asset management services and valuation services due to the continued negative impact of the COVID-19 pandemic on the operating environment and continued strategic investments focused on our title and digital real estate businesses. Such investments contributed to an increase in total expenses, which was partially offset by increases in net premiums earned and services revenue attributable to our title services business. * Other operating expenses were $70.3 million in the first quarter of 2021, compared to $81.6 million in the fourth quarter of 2020, and $69.1 million in the first quarter of 2020. The decrease in the first quarter of 2021 compared to the fourth quarter of 2020 was primarily related to a $6.9 million decrease in non-operating items as well as a decrease in share-based compensation expense, which was partially offset by a decrease in ceding commissions. The increase in the first quarter of 2021 compared to the first quarter of 2020 was driven primarily by an increase in compensation expense, which was partially offset by a decrease in travel and entertainment expense.

CAPITAL AND LIQUIDITY UPDATE

* At March 31, 2021, Excess Available Resources to Support Private Mortgage Insurer Eligibility Requirements (PMIERs) were $2.7 billion, or 79 percent, above Radian Guaranty's Minimum Required Assets.

Radian Group

* As of March 31, 2021, Radian Group maintained $1.0 billion of available liquidity. Total liquidity, which includes the company's $267.5 million unsecured revolving credit facility, was $1.3 billion as of March 31, 2021. * For the quarter ended March 31, 2021, the company repurchased 413 thousand shares of Radian Group common stock at a total cost of $8.6 million, including commissions. As of March 31, 2021, purchase authority of up to $190.2 million remained available under this program. The current share repurchase authorization expires on August 31, 2021. * On February 10, 2021, Radian Group's Board of Directors authorized a regular quarterly dividend on its common stock in the amount of $0.125 per share and paid the dividend on March 4, 2021. * On May 4, 2021, Radian Group's Board of Directors authorized an increase to the Company's quarterly dividend from $0.125 to $0.14 per share. The dividend is payable on June 4, 2021, to stockholders of record as of May 24, 2021.

Radian Guaranty

* At March 31, 2021, Radian Guaranty's Available Assets under PMIERs totaled approximately $4.9 billion, resulting in excess available resources or a "cushion" of $1.5 billion, or 42 percent, over its Minimum Required Assets. * As of March 31, 2021, 60 percent of Radian Guaranty's primary mortgage insurance risk in force is subject to some form of risk distribution, providing a $1.1 billion reduction of Minimum Required Assets under PMIERs.

Thornberry added, "We recently increased our quarterly dividend by 12% and resumed our share repurchase program based on continued signs of improvement in the overall economy, the positive momentum in the housing market and the favorable credit trends within our portfolio."

RECENT EVENTS

Insurance-Linked-Note

As previously announced, in April 2021, Radian Guaranty entered into its fifth fully collateralized mortgage insurance-linked-note (ILN) reinsurance transaction, in which the company obtained $497.7 million of credit-risk protection from Eagle Re 2021-1 Ltd. (Eagle Re) through the issuance by Eagle Re of ILNs to capital markets investors and Radian Group in the amounts of $452.3 million and $45.4 million, respectively, in an unregistered private offering. Eagle Re is a special purpose insurer domiciled in Bermuda and is not a subsidiary or affiliate of Radian Guaranty. Radian Guaranty's related PMIERs credit under this ILN transaction remains subject to GSE approval. As of March 31, 2021, after consideration of the April ILN transaction described above:

* Radian Guaranty's Minimum Required Assets would have decreased by approximately $480 million, which would have resulted in an increase in PMIERs excess Available Assets or "cushion" to $1.9 billion, or 64 percent. * Radian Guaranty's primary mortgage insurance risk in force that is subject to some form of risk distribution would have increased to 78 percent, providing a $1.6 billion reduction of Minimum Required Assets under PMIERs.

Radian Guaranty Operating Statistics for April 2021

The information below 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.

April March February January 2021 2021 2021 2021

Beginning primary default inventory 50,106 52,882 54,488 55,537(# of loans)

New defaults 2,751 3,314 3,873 4,664

Cures (7,128 ) (6,043 ) (5,420 ) (5,674 )

Claims paid (37 ) (45 ) (57 ) (41 )

Rescissions and Claim Denials, net^ (3 ) (2 ) (2 ) 2 (1)

Ending primary default inventory 45,689 50,106 52,882 54,488

(1)

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

CONFERENCE CALL

Radian will discuss first quarter 2021 financial results in a conference call tomorrow, Wednesday, May 5, 2021, at 10:00 a.m. Eastern daylight 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 800.447.0521 inside the U.S., or 847.413.3238 for international callers, using passcode 50147770 by referencing Radian.

A digital replay of the webcast will be available on the Radian 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 50147770.

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)

Net of any previous Rescissions and Claim Denials that were reinstated(1) during the period. Such reinstated Rescissions and Claim Denials may ultimately result in a paid claim.

CONFERENCE CALL

Radian will discuss first quarter 2021 financial results in a conference call tomorrow, Wednesday, May 5, 2021, at 10:00 a.m. Eastern daylight 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 800.447.0521 inside the U.S., or 847.413.3238 for international callers, using passcode 50147770 by referencing Radian.

A digital replay of the webcast will be available on the Radian 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 50147770.

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)

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 Subsidiaries

Condensed Consolidated Statements of Operations Trend Schedule

Exhibit A

2021 2020

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



Revenues:

Net premiums $ 271,872 $ 302,140 (1 ) $ 286,471 $ 249,295 $ 277,415 earned

Services 22,895 11,440 (1 ) 33,943 28,075 31,927 revenue

Netinvestment 38,251 38,115 36,255 38,723 40,944 income

Net gains(losses) oninvestments (5,181 ) 17,376 17,652 47,276 (22,027 ) and otherfinancialinstruments

Other income 976 790 913 1,072 822

Total 328,813 369,861 375,234 364,441 329,081 revenues



Expenses:

Provision 46,143 56,664 88,084 304,418 35,951 for losses

Policyacquisition 8,996 7,395 10,166 6,015 7,413 costs

Cost of 20,246 21,600 24,353 17,972 22,141 services

Otheroperating 70,262 81,641 69,377 60,582 69,110 expenses

Interest 21,115 21,169 21,088 16,699 12,194 expense

Amortizationandimpairmentof other 862 2,225 961 979 979 acquiredintangibleassets

Total 167,624 190,694 214,029 406,665 147,788 expenses



Pretaxincome 161,189 179,167 161,205 (42,224 ) 181,293 (loss)

Income taxprovision 35,581 31,154 26,102 (12,273 ) 40,832 (benefit)

Net income $ 125,608 $ 148,013 $ 135,103 $ (29,951 ) $ 140,461 (loss)



Diluted netincome $ 0.64 $ 0.76 $ 0.70 $ (0.15 ) $ 0.70 (loss) pershare

(1)

Includes the impact of a line item reclassification recorded in the fourth quarter to correct earlier periods in 2020, which increased net premiums earned and decreased services revenue by $7.8 million each. See Exhibit E for additional detail by period related to this out-of-period adjustment reflected in our All Other results.

Includes the impact of a line item reclassification recorded in the fourth quarter to correct earlier periods in 2020, which increased net premiums(1) earned and decreased services revenue by $7.8 million each. See Exhibit E for additional detail by period related to this out-of-period adjustment reflected in our All Other results.

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:

2021 2020

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

Net income (loss) $ 125,608 $ 148,013 $ 135,103 $ (29,951) $ 140,461 -basic and diluted



Average commonshares 193,439 193,248 193,176 193,299 200,161 outstanding-basic

Dilutive effect ofstock-based 1,764 1,415 980 - 1,658 compensationarrangements ^(1)

Adjusted averagecommon shares 195,203 194,663 194,156 193,299 201,819 outstanding-diluted



Basic net income $ 0.65 $ 0.77 $ 0.70 $ (0.15) $ 0.70 (loss) per share



Diluted net income $ 0.64 $ 0.76 $ 0.70 $ (0.15) $ 0.70 (loss) per share

(1)

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 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:

2021

2020

(In thousands)

Qtr 1

Qtr 4

Qtr 3

Qtr 2

Qtr 1

Shares of common stock equivalents

-

324

710

2,295

132

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(1) 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:

2021 2020

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

Shares of common stock - 324 710 2,295 132 equivalents

Radian Group Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

Exhibit C

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

(Inthousands,except 2021 2020 2020 2020 2020per-shareamounts)



Assets:

Investments $ 6,671,874 $ 6,788,442 $ 6,584,577 $ 6,431,350 $ 5,608,627

Cash 102,776 87,915 82,020 68,387 54,108

Restricted 20,987 6,231 4,424 16,279 7,817 cash

Accruedinvestment 34,841 34,047 36,093 34,179 32,559 income

Accounts andnotes 134,075 121,294 145,164 110,722 123,381 receivable

Reinsurance 76,664 73,202 66,515 56,852 17,722 recoverables

Deferredpolicy 15,652 18,305 17,926 21,774 20,855 acquisitioncosts

Property andequipment, 78,309 80,457 88,717 89,143 87,915 net

Goodwill andotheracquired 22,181 23,043 25,268 26,229 27,208 intangibleassets, net

Other assets 763,502 715,085 726,641 714,394 710,240

Total assets $ 7,920,861 $ 7,948,021 $ 7,777,345 $ 7,569,309 $ 6,690,432



Liabilitiesand stockholders'equity:

Unearned $ 406,689 $ 448,791 $ 501,787 $ 561,280 $ 605,045 premiums

Reserve forlosses andloss 887,355 848,413 825,792 738,885 418,202 adjustmentexpense

Senior notes 1,406,603 1,405,674 1,404,759 1,403,857 887,584

FHLB advances 138,833 176,483 141,058 175,122 173,760

Reinsurancefunds 282,345 278,555 318,773 312,350 302,551 withheld

Net deferred 210,571 213,897 166,136 126,883 90,500 tax liability

Other 353,173 291,855 296,661 264,927 348,282 liabilities

Total 3,685,569 3,663,668 3,654,966 3,583,304 2,825,924 liabilities



Common stock 210 210 210 210 208

Treasury (910,347 ) (910,115 ) (909,745 ) (909,738 ) (902,024 ) stock

Additionalpaid-in 2,242,950 2,245,897 2,238,869 2,232,949 2,231,670 capital

Retained 2,785,744 2,684,636 2,561,076 2,450,423 2,504,853 earnings

Accumulatedother 116,735 263,725 231,969 212,161 29,801 comprehensiveincome

Totalstockholders' 4,235,292 4,284,353 4,122,379 3,986,005 3,864,508 equity

Totalliabilitiesand $ 7,920,861 $ 7,948,021 $ 7,777,345 $ 7,569,309 $ 6,690,432 stockholders'equity



Shares 191,311 191,606 191,556 191,492 190,387 outstanding



Book value $ 22.14 $ 22.36 $ 21.52 $ 20.82 $ 20.30 per share

Debt to 24.9 % 24.7 % 25.4 % 26.0 % 18.7 %capital ratio^(1)Risk tocapital 11.9:1 12.7:1 13.2:1 13.3:1 13.8:1ratio-RadianGuaranty only

(1)

Calculated as senior notes divided by senior notes and stockholders' equity.

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

Radian Group Inc. and Subsidiaries

Net Premiums Earned

Exhibit D

2021 2020

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



Premiums earned:

Direct - Mortgage:

Premiumsearned,excluding $ 256,905 $ 272,331 $ 259,889 $ 263,468 $ 274,647 revenue fromcancellations^(1)

SinglePremium 38,510 53,526 65,667 50,023 24,133 Policycancellations

Total direct- Mortgage ^ 295,415 325,857 325,556 313,491 298,780 (1)



Assumed -Mortgage: ^ 2,298 2,615 2,946 3,197 3,456 (2)



Ceded - Mortgage:

Premiumsearned,excluding (25,373 ) (27,229 ) (25,120 ) (26,493 ) (28,609 ) revenue fromcancellations

SinglePremiumPolicy (11,109 ) (15,197 ) (18,679 ) (14,424 ) (7,183 ) cancellations^(3)

Profitcommission - 3,433 770 (1,347 ) (28,175 ) 8,555 other ^(4)

Total cededpremiums, netof profit (33,049 ) (41,656 ) (45,146 ) (69,092 ) (27,237 ) commission -Mortgage ^(5)

Net premiumsearned - 264,664 286,816 283,356 247,596 274,999 Mortgage ^(1)

Net premiumsearned - Real 7,208 7,572 7,099 4,734 3,149 Estate ^(6)

Net premiumsearned - All - 7,752 (3,984 ) (3,035 ) (733 ) Other ^(6)

Net premiums $ 271,872 $ 302,140 $ 286,471 $ 249,295 $ 277,415 earned ^(1)

(1)

The fourth quarter of 2020 includes an increase to premiums earned of $11.3 million related to changes in present value estimates for initial premiums on monthly policies that are deferred and not collected until cancellation. The impact of changes in this estimate in other periods is not material.

(2)

Relates primarily to premiums earned from our participation in certain credit risk transfer programs.

(3)

Includes the impact of related profit commissions.

(4)

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

(5)

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

(6)

See Exhibit E for additional information on changes that impacted our reported segment results for all periods.

The fourth quarter of 2020 includes an increase to premiums earned of $11.3 million related to changes in present value estimates for initial(1) premiums on monthly policies that are deferred and not collected until cancellation. The impact of changes in this estimate in other periods is not material.

(2) Relates primarily to premiums earned from our participation in certain credit risk transfer programs.

(3) Includes the impact of related profit commissions.

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

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

(6) See Exhibit E for additional information on changes that impacted our reported segment results for all periods.

Radian Group Inc. and Subsidiaries

Segment Information

Exhibit E (page 1 of 4)

Summarized financial information concerning our operating segments as of andfor the periods indicated is as follows. For a definition of adjusted pretaxoperating income and Services adjusted EBITDA, along with reconciliations toconsolidated GAAP measures, see Exhibits F and G.

Three Months Ended March 31, 2021

(In Mortgage Real Estate All Other Inter- Consolidatedthousands) segment

Net premiums $ 246,874 $ 7,208 $ - $ - $ 254,082 written

(Increase)decrease in 17,790 - - - 17,790 unearnedpremiums

Net premiums 264,664 7,208 - - 271,872 earned

Services 4,351 18,550 53 (59 ) 22,895 revenue

Netinvestment 34,013 37 4,201 - 38,251 income

Other income 769 - 207 - 976

Total 303,797 25,795 4,461 (59 ) 333,994



Provision for 45,869 296 - (22 ) 46,143 losses

Policyacquisition 8,996 - - - 8,996 costs

Cost of 3,192 17,028 28 (2 ) 20,246 services

Otheroperatingexpensesbefore 22,454 14,928 951 (35 ) 38,298 allocatedcorporateoperatingexpenses

Interest 21,115 - - - 21,115 expense

Total 101,626 32,252 979 (59 ) 134,798

Adjustedpretaxoperatingincome (loss)before 202,171 (6,457 ) 3,482 - 199,196 allocatedcorporateoperatingexpenses

Allocation ofcorporate 27,884 3,996 - - 31,880 operatingexpenses

Adjustedpretax $ 174,287 $ (10,453 ) $ 3,482 $ - $ 167,316 operatingincome (loss)

Three Months Ended March 31, 2020

(In Mortgage Real Estate All Other Inter- Consolidatedthousands) segment

Net premiums $ 260,974 $ 3,149 $ (733 ) $ - $ 263,390 written

(Increase)decrease in 14,025 - - - 14,025 unearnedpremiums

Net premiums 274,999 3,149 (733 ) - 277,415 earned

Services 3,216 23,251 5,652 (192 ) 31,927 revenue

Netinvestment 36,198 125 4,621 - 40,944 income

Other income 671 - 151 - 822

Total 315,084 26,525 9,691 (192 ) 351,108



Provision 35,246 743 - (38 ) 35,951 for losses

Policyacquisition 7,413 - - - 7,413 costs

Cost of 1,757 14,989 5,500 (105 ) 22,141 services

Otheroperatingexpensesbefore 23,593 10,579 2,106 (49 ) 36,229 allocatedcorporateoperatingexpenses

Interest 12,194 - - - 12,194 expense

Total 80,203 26,311 7,606 (192 ) 113,928

Adjustedpretaxoperatingincome(loss) 234,881 214 2,085 - 237,180 beforeallocatedcorporateoperatingexpenses

Allocationof corporate 29,214 3,367 - - 32,581 operatingexpenses

Adjustedpretaxoperating $ 205,667 $ (3,153 ) $ 2,085 $ - $ 204,599 income(loss)

Radian Group Inc. and Subsidiaries

Segment Information

Exhibit E (page 2 of 4)

Mortgage

2021 2020

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

Netpremiums $ 246,874 $ 261,244 $ 259,278 $ 229,458 $ 260,974 written ^(1) (2)

(Increase)decrease in 17,790 25,572 24,078 18,138 14,025 unearnedpremiums

Netpremiums 264,664 286,816 283,356 247,596 274,999 earned

Services 4,351 3,717 3,914 3,918 3,216 revenue

Netinvestment 34,013 34,235 32,054 34,708 36,198 income

Other 769 735 689 721 671 income

Total 303,797 325,503 320,013 286,943 315,084



Provision 45,869 56,312 87,753 304,021 35,246 for losses

Policyacquisition 8,996 7,395 10,166 6,015 7,413 costs

Cost of 3,192 3,245 2,908 2,133 1,757 services

Otheroperatingexpensesbeforeallocated 22,454 21,974 21,635 18,537 23,593 corporateoperatingexpenses^(3)

Interestexpense ^ 21,115 21,169 21,088 16,699 12,194 (4) (5)

Total^ (6) 101,626 110,095 143,550 347,405 80,203

Adjustedpretaxoperatingincome(loss) 202,171 215,408 176,463 (60,462) 234,881 beforeallocatedcorporateoperatingexpenses

Allocationofcorporate 27,884 31,102 29,127 25,359 29,214 operatingexpenses

Adjustedpretaxoperating $ 174,287 $ 184,306 $ 147,336 $ (85,821) $ 205,667 income(loss)

Real Estate ^(5)

2021 2020

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

Netpremiums $ 7,208 $ 7,572 $ 7,099 $ 4,734 $ 3,149 earned ^(7)

Servicesrevenue ^ 18,550 15,958 22,627 17,688 23,251 (6) (7)

Netinvestment 37 43 67 126 125 income

Total 25,795 23,573 29,793 22,548 26,525



Provision 296 392 370 426 743 for losses

Cost of 17,028 15,706 18,085 12,681 14,989 services

Otheroperatingexpensesbeforeallocated 14,928 15,238 13,136 10,527 10,579 corporateoperatingexpenses ^(3)

Total 32,252 31,336 31,591 23,634 26,311

Adjustedpretaxoperatingincomebefore (6,457) (7,763) (1,798) (1,086) 214 allocatedcorporateoperatingexpenses^(8)

Allocationofcorporate 3,996 3,369 3,248 2,823 3,367 operatingexpenses

Adjustedpretaxoperating $ (10,453) $ (11,132) $ (5,046) $ (3,909) $ (3,153) income(loss)

Radian Group Inc. and Subsidiaries

Segment Information

Exhibit E (page 3 of 4)

All Other^ (5) (9)

2021 2020

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

Net premiums $ - $ 7,752 $ (3,984) $ (3,035) $ (733) earned ^(7)

Services revenue 53 (7,963) 8,267 6,579 5,652 ^(6) (7)

Net investment 4,201 3,837 4,134 3,889 4,621 income

Other income 207 55 224 104 151

Total 4,461 3,681 8,641 7,537 9,691



Cost of services 28 2,835 4,127 3,177 5,500

Other operating 951 3,033 1,824 3,129 2,106 expenses ^(3)

Total 979 5,868 5,951 6,306 7,606

Adjusted pretaxoperating income $ 3,482 $ (2,187) $ 2,690 $ 1,231 $ 2,085 (loss)

(1)

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

(2)

The fourth quarter of 2020 includes an increase to premiums earned of $11.3 million, related to changes in present value estimates for initial premiums on monthly policies that are deferred and not collected until cancellation. The impact of changes in this estimate in other periods is not material.

(3)

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

(4)

Relates to interest on our borrowing and financing activities including our Senior Notes issued by our holding company and FHLB borrowings made by our mortgage insurance subsidiaries.

(5)

The wind-down of our traditional appraisal business announced in the fourth quarter of 2020 caused the composition of our reportable segments to change, including all activity related to that business and certain other adjustments to services revenue now being reflected in All Other activities. In addition, there were certain other immaterial reclassifications to net investment income and interest expense. These changes to our reportable segments have been reflected in our segment operating results for all periods presented.

(6)

Inter-segment information:

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

The fourth quarter of 2020 includes an increase to premiums earned of $11.3 million, related to changes in present value estimates for initial(2) premiums on monthly policies that are deferred and not collected until cancellation. The impact of changes in this estimate in other periods is not material.

Does not include impairment of long-lived assets and other non-operating(3) items, which are not considered components of adjusted pretax operating income (loss).

Relates to interest on our borrowing and financing activities including(4) our Senior Notes issued by our holding company and FHLB borrowings made by our mortgage insurance subsidiaries.

The wind-down of our traditional appraisal business announced in the fourth quarter of 2020 caused the composition of our reportable segments to change, including all activity related to that business and certain(5) other adjustments to services revenue now being reflected in All Other activities. In addition, there were certain other immaterial reclassifications to net investment income and interest expense. These changes to our reportable segments have been reflected in our segment operating results for all periods presented.

(6) Inter-segment information:

2021 2020

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

Inter-segment revenue included in:

Mortgage $ - $ - $ - $ - $ 83

Real Estate 59 86 98 91 87

All Other - 186 767 19 22

Total inter-segment revenue $ 59 $ 272 $ 865 $ 110 $ 192



Inter-segment expense included in:

Mortgage $ 59 $ 86 $ 98 $ 91 $ 87

Real Estate - 186 767 19 22

All Other - - - - 83

Total inter-segment expense $ 59 $ 272 $ 865 $ 110 $ 192

See notes continued on next page.

Radian Group Inc. and Subsidiaries

Segment Information

Exhibit E (page 4 of 4)



Notes continued from prior page.

(7)

In the fourth quarter of 2020, we reclassified certain revenue previously reflected in the Real Estate segment results as services revenue to net premiums earned. As a result, for all periods presented in 2020, on the Real Estate segment, net premiums earned has been increased and services revenue has been decreased, with offsetting adjustments reflected in All Other activities.

(8)

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

2021

2020

(In thousands)

Qtr 1

Qtr 4

Qtr 3

Qtr 2

Qtr 1

Adjusted pretax operating income (loss) before corporate allocations

$

(6,457)

$

(7,763)

$

(1,798)

$

(1,086)

$

214

Depreciation and amortization

578

744

679

771

663

Real Estate adjusted EBITDA

$

(5,879)

$

(7,019)

$

(1,119)

$

(315)

$

877

(9)

All Other activities include: (i) income (losses) from assets held by our holding company; (ii) related general corporate operating expenses not attributable or allocated to our reportable segments; (iii) for all periods prior to its sale in the first quarter of 2020, income and expenses related to Clayton; (iv) for all periods presented, the income and expenses related to our traditional appraisal services; and (v) certain other immaterial revenue and expense items.

In the fourth quarter of 2020, we reclassified certain revenue previously reflected in the Real Estate segment results as services revenue to net premiums earned. As a(7) result, for all periods presented in 2020, on the Real Estate segment, net premiums earned has been increased and services revenue has been decreased, with offsetting adjustments reflected in All Other activities.

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

2021 2020

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

Adjusted pretax operating income $ (6,457) $ (7,763) $ (1,798) $ (1,086) $ 214 (loss) before corporate allocations

Depreciation and 578 744 679 771 663 amortization

Real Estate adjusted $ (5,879) $ (7,019) $ (1,119) $ (315) $ 877 EBITDA

All Other activities include: (i) income (losses) from assets held by our holding company; (ii) related general corporate operating expenses not(9) attributable or allocated to our reportable segments; (iii) for all periods prior to its sale in the first quarter of 2020, income and expenses related to Clayton; (iv) for all periods presented, the income and expenses related to our traditional appraisal services; and (v) certain other immaterial revenue and expense items.

Selected Mortgage Key Ratios



2021 2020

Qtr 1 Qtr 4 Qtr 3 Qtr 2 Qtr 1



Loss ratio ^(1) 17.3 % 19.6 % 31.0 % 122.8 % 12.8 %

Expense ratio^ (1) 22.4 % 21.1 % 21.5 % 20.2 % 21.9 %

(1)

Calculated on a GAAP basis using net premiums earned.

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

Radian Group Inc. and Subsidiaries

Definition of Consolidated Non-GAAP Financial Measures

Exhibit F (page 1 of 2)



Use of Non-GAAP Financial Measures

In addition to the traditional GAAP financial measures, we have presented "adjusted pretax operating income (loss)," "adjusted diluted net operating income (loss) per share" and "adjusted net operating return on equity," which are non-GAAP financial measures for the consolidated company, 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 operating trends and enabling more meaningful comparisons with our peers. Although on a consolidated basis "adjusted pretax operating income (loss)," "adjusted diluted net operating income (loss) per share" and "adjusted net operating return on equity" 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 (Radian'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 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.

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: (i) not viewed as part of the operating performance of our primary activities or (ii) not expected to result in an economic impact equal to the amount reflected in pretax income (loss). 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 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.

(2)

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 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.

(3)

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 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.

(4)

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

In 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. Includes activities that we do not view to be indicative of our(4) fundamental operating activities, such as: (i) impairment of internal-use software and other long-lived assets; (ii) gains (losses) from the sale of lines of business; and (iii) 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, 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 (loss) 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 G for the reconciliation of the most comparable GAAP measures, consolidated pretax income (loss), diluted net income (loss) per share and return on equity to our non-GAAP financial measures for the consolidated company, adjusted pretax operating income (loss), adjusted diluted net operating income (loss) per share and adjusted net operating return on equity, respectively. Exhibit G also contains the reconciliation of the most comparable GAAP measure, net income (loss), to Real Estate adjusted EBITDA.

Total adjusted pretax operating income (loss), adjusted diluted net operating income (loss) per share, adjusted net operating return on equity, Real Estate adjusted EBITDA and Real Estate adjusted EBITDA margin should not be considered in isolation or viewed as substitutes for GAAP pretax income (loss), diluted net income (loss) per share, return on equity or net income (loss). Our definitions of adjusted pretax operating income (loss), adjusted diluted net operating income (loss) per share, adjusted net operating return on equity, Real Estate adjusted EBITDA or Real Estate adjusted EBITDA margin may not be comparable to similarly-named measures reported by other companies.

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 andreturn on equity to our non-GAAP financial measures for the consolidatedcompany, adjusted pretax operating income (loss), adjusted diluted netoperating income (loss) per share and adjusted net operating return on equity,respectively. Exhibit G also contains the reconciliation of the most comparableGAAP 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 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.

Radian Group Inc. and Subsidiaries

Consolidated Non-GAAP Financial Measure Reconciliations

Exhibit G (page 1 of 3)

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

2021 2020

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

Consolidatedpretax income $ 161,189 $ 179,167 $ 161,205 $ (42,224) $ 181,293 (loss)

Lessreconcilingincome (expense)items:

Net gains(losses) oninvestments (5,181) 17,376 17,652 47,276 (22,027) and otherfinancialinstruments

Amortizationandimpairment ofother (862) (2,225) (961) (979) (979) acquiredintangibleassets

Impairment ofotherlong-livedassets and (84) (6,971) (466) (22) (300) othernon-operatingitems (1)

Totaladjustedpretax $ 167,316 $ 170,987 $ 144,980 $ (88,499) $ 204,599 operatingincome (loss)^(2)

(1)

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

(2)

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

The amounts for all the periods presented are included in other operating(1) expenses 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:

2021 2020

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

Adjustedpretaxoperating income(loss):

Mortgage $ 174,287 $ 184,306 $ 147,336 $ (85,821) $ 205,667 segment

RealEstate (10,453) (11,132) (5,046) (3,909) (3,153) segment

All Other 3,482 (2,187) 2,690 1,231 2,085 activities

Totaladjustedpretax $ 167,316 $ 170,987 $ 144,980 $ (88,499) $ 204,599 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

2021 2020

Qtr 1 Qtr 4 Qtr 3 Qtr 2 Qtr 1

Diluted net income $ 0.64 $ 0.76 $ 0.70 $ (0.15) $ 0.70 (loss) per share



Less per-share impact ofreconciling income (expense) items:

Net gains (losses) oninvestments and other (0.03) 0.09 0.09 0.24 (0.11) financial instruments

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

Impairment of otherlong-lived assets and - (0.04) - - - other non-operatingitems

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

Difference betweenstatutory and effective (0.02) 0.04 0.04 0.03 (0.01) tax rate

Per-share impact ofreconciling income (0.04) 0.07 0.11 0.21 (0.10) (expense) items

Adjusted diluted netoperating income (loss) $ 0.68 $ 0.69 $ 0.59 $ (0.36) $ 0.80 per share ^(1)

(1)

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

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)



2021 2020

Qtr 1 Qtr 4 Qtr 3 Qtr 2 Qtr 1

Return on equity^ (1) 11.8 % 14.1 % 13.3 % (3.1) % 14.2 %

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

Net gains (losses) oninvestments and other financial (0.5) 1.7 1.7 4.8 (2.2) instruments

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

Impairment of other long-livedassets and other non-operating - (0.7) - - - items

Income tax (provision) benefiton reconciling income (expense) 0.1 (0.2) (0.3) (1.0) 0.5 items^ (3)

Difference between statutory (0.1) 0.6 0.7 0.3 (0.3) and effective tax rate

Impact of reconciling income (0.6) 1.2 2.0 4.0 (2.1) (expense) items

Adjusted net operating return 12.4 % 12.9 % 11.3 % (7.1) % 16.3 %on equity

(1)

Calculated by dividing annualized net income (loss) by average 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.

(3)

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

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

2021 2020

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

Net income $ 125,608 $ 148,013 $ 135,103 $ (29,951) $ 140,461 (loss)

Lessreconcilingincome (expense)items:

Net gains(losses) oninvestments (5,181) 17,376 17,652 47,276 (22,027) and otherfinancialinstruments

Amortizationandimpairment ofother (862) (2,225) (961) (979) (979) acquiredintangibleassets

Impairment ofotherlong-livedassets and (84) (6,971) (466) (22) (300) othernon-operatingitems

Income tax(provision) (35,581) (31,154) (26,102) 12,273 (40,832) benefit

Mortgageadjustedpretax 174,287 184,306 147,336 (85,821) 205,667 operatingincome (loss)

All Otheradjustedpretax 3,482 (2,187) 2,690 1,231 2,085 operatingincome

Real Estateadjustedpretax (10,453) (11,132) (5,046) (3,909) (3,153) operatingincome (loss)

Lessreconcilingincome (expense)items:

Allocation ofcorporateoperating (3,996) (3,369) (3,248) (2,823) (3,367) expenses toReal Estate

Real Estatedepreciation (578) (744) (679) (771) (663) andamortization

Real Estateadjusted $ (5,879) $ (7,019) $ (1,119) $ (315) $ 877 EBITDA

On a consolidated basis, "adjusted pretax operating income (loss)," "adjusted diluted net operating income (loss) per share" and "adjusted net operating return on equity" are measures not determined in accordance with GAAP. "Real Estate adjusted EBITDA" and "Real Estate adjusted EBITDA margin" are also non-GAAP measures. These measures should not be considered in isolation or viewed as substitutes for GAAP pretax income (loss), diluted net income (loss) per share, return on equity or net income (loss). Our definitions of adjusted pretax operating income (loss), adjusted diluted net operating income (loss) per share, adjusted net operating return on equity, Real Estate adjusted EBITDA or Real Estate adjusted EBITDA margin 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.

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 or net income (loss). Our definitions of adjustedpretax operating income (loss), adjusted diluted net operating income (loss)per share, adjusted net operating return on equity, Real Estate adjusted EBITDAor Real Estate adjusted EBITDA margin may not be comparable to similarly-namedmeasures reported by other companies. See Exhibit F for additional informationon our consolidated non-GAAP financial measures.

Radian Group Inc. and Subsidiaries

Mortgage Supplemental Information - New Insurance Written

Exhibit H

2021 2020

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



New insurance $ 20,161 $ 29,781 $ 33,320 $ 25,459 $ 16,706 written ("NIW")



Percentage of NIW

Borrower-paid 99.2 % 99.2 % 98.5 % 97.8 % 96.7 %



Percentage by premium type

Direct monthlyand other 90.2 % 91.4 % 90.0 % 84.7 % 81.1 %recurringpremiums

Borrower-paid ^ 9.4 8.3 9.0 13.6 16.5 (1) (2)

Lender-paid^ (1) 0.4 0.3 1.0 1.7 2.4

Direct single 9.8 8.6 10.0 15.3 18.9 premiums^ (1)

Total NIW 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %



NIW for 59.1 % 64.6 % 70.5 % 56.4 % 66.2 %purchases

NIW for 40.9 % 35.4 % 29.5 % 43.6 % 33.8 %refinances



Percentage ofNIW by FICO score^ (3)

>=740 64.3 % 64.7 % 66.2 % 67.3 % 65.7 %

680-739 31.5 31.5 30.7 30.1 31.1

620-679 4.2 3.8 3.1 2.6 3.2

Total NIW 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %



Percentage by LTV

95.01% and above 8.0 % 8.9 % 9.7 % 8.3 % 9.9 %

90.01% to 95.00% 31.6 34.7 39.6 36.4 37.6

85.01% to 90.00% 31.3 29.8 28.3 29.8 30.3

85.00% and below 29.1 26.6 22.4 25.5 22.2

Total NIW 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %

(1)

Percentages exclude the impact of reinsurance.

(2)

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

(3)

For loans with multiple borrowers, the percentage of NIW by FICO score represents the lowest of the borrowers' FICO scores.

(1) Percentages exclude the impact of reinsurance.

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

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

Radian Group Inc. and Subsidiaries

Mortgage Supplemental Information - Primary Insurance in Force and Risk inForce

Exhibit I (page 1 of 2)

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

($ in 2021 2020 2020 2020 2020millions)

Primaryinsurance in force ^(1)

Prime $ 234,980 $ 242,044 $ 241,166 $ 236,835 $ 236,958

Alt-A andA minus 3,941 4,100 4,301 4,471 4,628 and below

Primary $ 238,921 $ 246,144 $ 245,467 $ 241,306 $ 241,586



Primaryrisk in force^ (1)(2)

Prime $ 57,579 $ 59,689 $ 59,972 $ 59,253 $ 59,827

Alt-A andA minus 929 967 1,017 1,058 1,096 and below

Primary $ 58,508 $ 60,656 $ 60,989 $ 60,311 $ 60,923



Percentageof primary risk inforce

Directmonthlyand other 80.0 % 79.1 % 76.8 % 73.8 % 72.6 %recurringpremiums

Directsingle 20.0 % 20.9 % 23.2 % 26.2 % 27.4 %premiums



Percentageof primaryrisk in force byFICO score^(3)

>=740 57.2 % 57.5 % 57.6 % 57.4 % 57.2 %

680-739 34.9 34.6 34.3 34.3 34.2

620-679 7.3 7.3 7.5 7.7 8.0

<=619 0.6 0.6 0.6 0.6 0.6

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



Percentageof primaryrisk in force byLTV

95.01% and 14.4 % 14.4 % 14.3 % 14.2 % 14.3 %above

90.01% to 48.6 49.3 50.1 50.4 51.0 95.00%

85.01% to 28.2 28.0 27.9 28.1 27.9 90.00%

85.00% and 8.8 8.3 7.7 7.3 6.8 below

Total 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %



Percentageof primaryrisk in force bypolicyyear

2008 and 6.1 % 6.2 % 6.6 % 7.2 % 7.5 %prior

2009 - 9.9 11.3 13.3 16.0 17.8 2015

2016 6.8 7.6 8.9 10.6 11.7

2017 8.0 9.1 10.7 13.0 14.8

2018 8.7 9.8 11.7 14.0 16.4

2019 15.6 17.8 20.6 23.3 25.4

2020 37.2 38.2 28.2 15.9 6.4

2021 7.7 - - -

Total 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %



Primaryrisk inforce on $ 2,910 $ 3,250 $ 3,747 $ 4,263 $ 1,001 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.

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

2021 2020 2020 2020 2020

Persistency Rate (12 57.2 % (4) 61.2 % (4) 65.6 % (4) 70.2 % 75.4 %months ended)

Persistency Rate(quarterly, annualized)^ 62.5 % 60.4 % (4) 60.0 % (4) 63.8 % 76.5 %(5)

(1)

Excludes the impact of premiums ceded under our reinsurance agreements.

(2)

Does not include pool risk in force or other risk in force, which combined 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.

(4)

The Persistency Rate was reduced by an increase in cancellations of Single Premium Policies due to increased cancellations identified by our ongoing servicer monitoring process for Single Premium Policies.

(5)

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 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.

(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 was reduced by an increase in cancellations of Single(4) Premium Policies due to increased cancellations identified by our ongoing servicer monitoring process for Single Premium Policies.

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(5) 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

2021 2020

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



Net claims paid: ^(1)

Totalprimary $ 6,611 $ 8,353 $ 11,331 $ 22,144 $ 24,358 claims paid

Total pool (138 ) 70 (230 ) 639 (911 ) and other

Subtotal 6,473 8,423 11,101 22,783 23,447

Impact ofcommutationsand 4,000 32,170 (267 ) - (56 ) settlements^(2)

Total net $ 10,473 $ 40,593 $ 10,834 $ 22,783 $ 23,391 claims paid



Totalaverage netprimary $ 43.8 $ 46.9 $ 46.4 $ 47.9 $ 50.3 claims paid^(1) (3)



Averagedirect primary $ 45.5 $ 48.5 $ 47.8 $ 49.0 $ 51.4 claims paid ^(3) (4)

(1)

Includes the impact of reinsurance recoveries and LAE.

(2)

Includes payments to commute mortgage insurance coverage on certain performing and non-performing loans. For the first quarter of 2021 and the fourth quarter of 2020, primarily includes payments made to settle certain previously disclosed legal proceedings.

(3)

Calculated without giving effect to the impact of commutations and settlements.

(4)

Before reinsurance recoveries.

(1) Includes the impact of reinsurance recoveries and LAE.

Includes payments to commute mortgage insurance coverage on certain(2) performing and non-performing loans. For the first quarter of 2021 and the fourth quarter of 2020, primarily includes payments made to settle certain previously disclosed legal proceedings.

(3) Calculated without giving effect to the impact of commutations and settlements.

(4) Before reinsurance recoveries.

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

($ inthousands,except per 2021 2020 2020 2020 2020defaultamounts)



Reservefor lossesby category ^(1)

Mortgage reserves

Prime $ 751,100 $ 711,245 $ 655,754 $ 573,463 $ 264,694

Alt-A andA minus 90,455 88,269 88,879 86,646 88,481 and below

IBNR and 6,626 9,966 43,153 43,342 40,583 other

LAE 21,212 20,172 18,745 16,807 9,216

Totalprimary 869,393 829,652 806,531 720,258 402,974 reserves

Total pool 13,175 14,163 14,779 14,398 11,297 reserves

Total 1stlien 882,568 843,815 821,310 734,656 414,271 reserves

Other 270 292 398 335 407

TotalMortgage 882,838 844,107 821,708 734,991 414,678 reserves

RealEstate 4,517 4,306 4,084 3,894 3,524 reserves

Total $ 887,355 $ 848,413 $ 825,792 $ 738,885 $ 418,202 reserves



Primaryreserveperprimary $ 17,219 $ 14,759 $ 12,168 $ 9,706 $ 18,320 defaultexcludingIBNR andother

(1)

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

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

Radian Group Inc. and Subsidiaries

Mortgage Supplemental Information - Default Statistics

Exhibit K

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

2021 2020 2020 2020 2020

Default Statistics

Primary Insurance:

Prime

Number ofinsured 996,082 1,031,736 1,043,450 1,040,964 1,049,974 loans

Number ofloans in 45,929 51,032 58,057 64,648 15,497 default

Percentageof loans 4.61 % 4.95 % 5.56 % 6.21 % 1.48 %in default



Alt-A andA minus and below

Number ofinsured 25,282 26,208 27,310 28,357 29,375 loans

Number ofloans in 4,177 4,505 4,680 5,094 4,284 default

Percentageof loans 16.52 % 17.19 % 17.14 % 17.96 % 14.58 %in default



Total Primary

Number ofinsured 1,021,364 1,057,944 1,070,760 1,069,321 1,079,349 loans

Number ofloans in 50,106 55,537 62,737 69,742 19,781 default

Percentageof loans 4.91 % 5.25 % 5.86 % 6.52 % 1.83 %in default

Radian GroupInc. andSubsidiaries

MortgageSupplementalInformation -ReinsurancePrograms

Exhibit L

2021 2020

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



Quota ShareReinsurance("QSR") and Single PremiumQSR Programs

Ceded premiums $ (2,852) $ (1,117) $ 2,119 $ 35,821 $ 6,687 written^ (1)

% of premiums (1.1) % (0.4) % 0.8 % 13.0 % 2.4 %written

Ceded premiums $ 20,788 $ 29,510 $ 36,742 $ 60,652 $ 18,712 earned

% of premiums 6.8 % 8.6 % 11.2 % 19.2 % 6.2 %earned

Cedingcommissions $ (2,949) $ (3,847) $ (4,984) $ (5,304) $ 8,413 written

Cedingcommissions $ 10,407 $ 13,197 $ 17,038 $ 13,453 $ 9,966 earned ^(2)

Profit $ 16,350 $ 18,406 $ 20,425 $ (10,649) $ 16,405 commission

Ceded losses $ 3,661 $ 7,106 $ 10,189 $ 39,635 $ 1,962



Excess-of-Loss Program

Ceded premiums $ 11,482 $ 15,240 $ 7,499 $ 7,525 $ 12,678 written

% of premiums 4.4 % 5.2 % 2.8 % 2.7 % 4.5 %written

Ceded premiums $ 12,154 $ 12,037 $ 8,290 $ 8,321 $ 8,405 earned

% of premiums 4.0 % 3.7 % 2.5 % 2.6 % 2.8 %earned



Ceded RIF ^(3)

Single Premium $ 6,147,808 $ 6,646,812 $ 7,358,932 $ 8,173,756 $ 8,580,047 QSR Program

Excess-of-Loss 1,525,100 1,560,600 1,170,200 1,170,200 1,230,000 Program

QSR Program 317,827 381,787 454,585 532,743 596,166

Total Ceded $ 7,990,735 $ 8,589,199 $ 8,983,717 $ 9,876,699 $ 10,406,213 RIF



PMIERs impact- reduction inMinimum RequiredAssets

Excess-of-Loss $ 673,957 $ 912,734 $ 783,842 $ 970,294 $ 1,066,464 Program

Single Premium 388,536 423,712 469,625 517,028 501,668 QSR Program

QSR Program 19,378 22,712 26,213 30,837 31,638

Total PMIERs $ 1,081,871 $ 1,359,158 $ 1,279,680 $ 1,518,159 $ 1,599,770 impact

(1) Net of profit commission.

Includes amounts reported in policy acquisition costs and other operating(2) expenses. Operating expenses include the following ceding commissions, net of deferred policy acquisition costs, for the periods indicated:



2021 2020

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



Ceding $ (7,689) $ (10,436) $ (12,337) $ (10,406) $ (7,967) commissions

(3) Included in primary RIF.

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 caused significant economic disruption, high unemployment, periods of volatility and disruption in financial markets, and required adjustments in the housing finance system and real estate markets. The COVID-19 pandemic has adversely impacted our businesses, and we expect that the COVID-19 pandemic could further impact our business and subject us to certain risks, including those discussed in "Item 1A. Risk Factors-The COVID-19 pandemic has adversely impacted us, 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, severity and duration of the pandemic and actions taken by governmental authorities in response to the pandemic." and the other risk factors in our Annual Report on Form 10-K for the year ended December 31, 2020 and in our subsequent reports and registration statements filed from time to time with the U.S. Securities and Exchange Commission; * changes in economic and political conditions 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") 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; * 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, such as the application of the recent and temporary amendment that applies a reduced capital charge nationwide for certain COVID-19-related nonperforming loans, 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 response to the COVID-19 pandemic, changes in the requirements for Radian Guaranty to remain an approved insurer to the GSEs, changes in the GSEs' interpretation and application of the PMIERs, or changes impacting loans purchased by the GSEs; * the Enterprise Regulatory Capital Framework that was finalized by the FHFA in December 2020 and that, among other things, increases the capital requirements for the GSEs and reduces the credit they receive for risk transfer, which could impact their operations and pricing as well as the size of the insurable mortgage insurance market, and which may form the basis for future versions of the PMIERs; * changes in the current housing finance system in the United States, including the roles of the Federal Housing Administration (the "FHA"), the GSEs and private mortgage insurers in this system; * 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 licenses and that are subject to complex compliance requirements; * 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 be impacted by the burdens placed on many servicers due to 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 the U.S. Department of Veterans Affairs as well as from other forms of credit enhancement, such as 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 recent changes to the "qualified mortgages" (QM) loan requirements; * 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 potential changes in tax law under the Biden Administration; * 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 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 economic uncertainty such as we have been 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 loan modification trial period granted in response to a financial hardship related 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; * effectiveness and security of our information technology systems and solutions, including our ability to successfully develop, launch and implement new and innovative technologies and digital solutions and the potential disruption in, or failure of, our information technology systems due to computer viruses, unauthorized access, cyber-attack, natural disasters or other similar events; * 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 Annual Report on Form 10-K for the year ended December 31, 2020, 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210504006337/en/

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