Quarterly Financial Data (Unaudited)



	2016 Quarters (1)
(In thousands, except per-share amounts)	First		Second		Third		Fourth			Year
Net premiums earned—insurance	$	220,950	$	229,085	$	238,149	$	233,585		$	921,769
Services revenue	32,849		40,263		45,877		49,905			168,894
Net investment income	27,201		28,839		28,430		28,996			113,466
Net gains (losses) on investments and other financial instruments	31,286		30,527		7,711		(38,773		)	30,751
Provision for losses	42,991		49,725		55,785		54,287			202,788
Policy acquisition costs	6,389		5,393		6,119		5,579			23,480
Cost of services	23,550		27,365		29,447		33,812			114,174
Other operating expenses	57,188		63,173		62,119		62,416			244,896
Loss on induced conversion and debt extinguishment	55,570		2,108		17,397		—			75,075
Amortization and impairment of intangible assets	3,328		3,311		3,292		3,290			13,221
Net income	66,249		98,112		82,803		61,089			308,253
Diluted net income per share (2)	$	0.29	$	0.44	$	0.37	$	0.27		$	1.37
Weighted average shares outstanding-diluted	239,707		226,203		225,968		224,776			229,258

	2015 Quarters (1)
	First		Second		Third		Fourth			Year
Net premiums earned—insurance	$	224,595	$	237,437	$	227,433	$	226,443		$	915,908
Services revenue (3)	31,135		44,558		43,185		38,338			157,216
Net investment income	17,328		19,285		22,091		22,833			81,537
Net gains (losses) on investments and other financial instruments	16,779		28,448		3,868		(13,402		)	35,693
Provision for losses	45,028		32,560		64,192		56,805			198,585
Policy acquisition costs	7,750		6,963		2,880		4,831			22,424
Cost of services	19,184		25,326		26,018		23,187			93,715
Other operating expenses	53,843		65,925		64,013		58,624			242,405
Loss on induced conversion and debt extinguishment	—		91,876		11		2,320			94,207
Amortization and impairment of intangible assets	3,023		3,281		3,273		3,409			12,986
Net income from continuing operations	91,727		45,193		70,091		74,528			281,539
Income (loss) from discontinued operations, net of tax (4)	530		4,855		—		—			5,385
Net income	92,257		50,048		70,091		74,528			286,924
Diluted net income per share (2)	$	0.39	$	0.22	$	0.29	$	0.32		$	1.22
Weighted average shares outstanding-diluted	243,048		246,650		250,795		247,981			246,332

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(1)

For all periods presented, reflects changes to align our segment reporting structure with recent changes in personnel reporting lines and management oversight related to contract underwriting performed on behalf of third parties. Revenue and expenses for this business are now reflected in the Services segment. As a result, for all periods presented, Services revenue and cost of services have increased, with offsetting reductions in other operating expenses.


(2)	Diluted net income per share is computed independently for each period presented. Consequently, the sum of the quarters may not equal the total net income per share for the year. For all calculations, the determination of whether potential common shares are dilutive or anti-dilutive is based on net income from continuing operations.


(3)	Services revenue for the first quarter of 2015 includes $0.1 million that had previously been included in other income.


(4)	Radian completed the sale of Radian Asset Assurance to Assured on April 1, 2015, pursuant to the Radian Asset Assurance Stock Purchase Agreement. Until the April 1, 2015 sale date, the operating results of Radian Asset Assurance were classified as discontinued operations for all periods presented in our consolidated statements of operations. See Note 18 for additional information.