8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of report (Date of earliest event reported): June 5, 2008

Radian Group Inc.

(Exact name of registrant as specified in its charter)

Delaware

(State or other jurisdiction of incorporation)

1-11356	23-2691170
(Commission File Number)	(IRS Employer Identification No.)

1601 Market Street, Philadelphia, Pennsylvania	19103
(Address of principal executive offices)	(Zip Code)

(215) 231 - 1000

(Registrant’s telephone number, including area code)

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition.

On June 5, 2008, we posted to our website a quarterly operating supplement for the first quarter of 2008, providing financial and other statistical information for our financial guaranty business. The quarterly operating supplement is furnished as Exhibit 99.1 to this report.

The information included in, or furnished with, this report shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”), nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

99.1* Radian Asset Assurance Inc. – Quarterly Operating Supplement, First Quarter 2008.

* Furnished herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	RADIAN GROUP INC.
Date: June 5, 2008	By:	/s/ Catherine M. Jackson
		Catherine M. Jackson
		Senior Vice President, Controller

EXHIBIT INDEX

Exhibit No.	Description
99.1*	Radian Asset Assurance Inc. – Quarterly Operating Supplement, First Quarter 2008.

* Furnished herewith.

EX-99.1

Exhibit 99.1

Quarterly

Operating Supplement

First Quarter 2008

Table of Contents

	Page
Introductory Note	2
Company Profile	2
Company Information	2
Consolidated GAAP Income Statements	3
Consolidated GAAP Balance Sheets	4
Consolidated Gross Premiums Written by Product	5
Consolidated Net Premiums Earned by Product	5
Consolidated Future Revenue	5
Consolidated Selected Loss Information	6
Consolidated Selected Derivative Information	7
Consolidated Investment Portfolio Highlights	8
Consolidated Insured Portfolio Highlights	9
Consolidated Explanatory Notes	18
Safe Harbor Statement	19

1 Quarterly Operating Supplement for the Period Ended March 31, 2008 / Table of Contents

Radian Asset Assurance Inc.

Quarterly Operating Supplement

March 31, 2008

Introductory Note

This operating supplement presents financial information for Radian Asset Assurance Inc. (Radian) and its consolidated subsidiaries on a GAAP basis. Please visit our website at www.radian.biz for selected statutory information.

Company Profile

Radian, founded in 1985 and rated* AA (Credit Watch: Negative) by Standard & Poor’s, a division of The McGraw-Hill Companies (S&P) and Aa3 (Outlook: Negative) by Moody’s Investor Service (Moody’s), is a niche insurer of public finance transactions and a provider of credit enhancement to leading financial institutions in the structured finance market. As a direct writer of financial guaranty insurance for municipal bonds, asset-backed securities and structured transactions, Radian plays an important role in extending the benefits of insurance to a broad range of institutions and securities issuers. Radian is also a leading provider of reinsurance to the monoline financial guarantors. In addition, Radian provided Trade Credit reinsurance until 2005, when this line of business was placed in runoff.

Radian is a subsidiary of Radian Group Inc. (Radian Group) (NYSE: RDN), a global credit risk management company headquartered in Philadelphia with significant operations in both New York and London.

For more information regarding Radian and Radian Group, please visit our website at www.radian.biz

Company Information

Radian Asset Assurance Inc.	Contact:
335 Madison Avenue	John C. DeLuca
New York, New York 10017	Senior Vice President
1 877 337.4925 (within the U.S.)	Director of Marketing, Public Finance
1 212 983.3100	1 212 984.9222
www.radian.biz	john.deluca@radian.biz

* Radian Group formally requested that Fitch Ratings (Fitch) withdraw its ratings of all Radian Group entities on September 5, 2007. On May 2, 2008, Fitch announced that it withdrew its ratings. Please refer to our website for more information.

2 Quarterly Operating Supplement for the Period Ended March 31, 2008 / Introductory Note / Company Profile / Company Information

Radian Asset Assurance Inc.

Consolidated GAAP Income Statements* ($ Thousands)

                        (Unaudited)

	Quarter ended
	March 31 2008			March 31 2007
Revenues
Net premiums written - insurance	$	33,001		$	41,453
Net premiums earned - insurance	$	37,353		$	33,555
Net investment income		26,462			24,786
(Loss) gain on investments		(18,140	)		2,700
Realized gain and other settlements on derivatives		12,339			30,167
Unrealized gains on derivatives		623,701			13,912
Total change in fair value of derivative instruments		636,040			44,079
Total revenues		681,715			105,120
Expenses
Losses and loss adjustment expenses		11,998			(3,952	)
Policy acquisition costs		10,423			11,629
Other operating expenses		20,527			14,094
Other expense		4,731			4,267
Total expenses		47,679			26,038
Income before income taxes		634,036			79,082
Income tax expense		216,447			21,973
Net Income	$	417,589		$	57,109

* See Consolidated Explanatory Notes on page 18.

3 Quarterly Operating Supplement for the Period Ended March 31, 2008 / Consolidated GAAP Income Statements

Radian Asset Assurance Inc.

Consolidated GAAP Balance Sheets* ($ Thousands)**

                        (Unaudited)

	March 31 2008		December 31 2007
Assets
Investments:
Fixed maturities, available for sale, at fair value (amortized cost $2,061,357 and $2,066,052)	$	2,061,556	$	2,092,720
Fixed maturities - trading, at fair value (amortized cost $123,519 and $16,125)		122,269		16,132
Hybrid securities, at fair value (amortized cost $147,298 and $140,325)		147,743		155,844
Common stock, at fair value (cost $931 and $931)		1,143		1,143
Short-term investments		99,361		253,614
Total Investments		2,432,072		2,519,453
Cash and cash equivalents		5,419		6,012
Deferred income taxes - net		—		233,996
Accrued interest and dividends receivable		28,518		28,319
Premiums and other receivables		16,479		21,582
Deferred policy acquisition costs		176,431		172,560
Prepaid reinsurance premiums		795		1,138
Prepaid federal income taxes		—		14,995
Federal income tax recoverable		33,912		—
Derivative financial guaranty contracts		138,192		7,903
Put options on committed preferred securities		78,047		35,242
Other assets		16,074		13,428
Total Assets	$	2,925,939	$	3,054,628
Liabilities and Shareholder’s Equity
Liabilities
Losses and loss adjustment expenses	$	158,384	$	249,864
Reinsurance payable on paid losses and loss adjustment expenses		2,117		1,410
Deferred premium revenue		709,032		713,726
Federal income taxes payable		—		4,348
Deferred federal income taxes		3,539		—
Payable to affiliates		7,036		6,298
Derivative financial guaranty contracts		349,847		801,284
Accrued expenses and other liabilities		36,151		24,721
Total Liabilities		1,266,106		1,801,651
Shareholder’s Equity
Common stock — $150 par value
Authorized, issued and outstanding — 100,000 shares		15,000		15,000
Additional paid-in capital		704,821		704,500
Retained earnings		921,930		504,341
Accumulated other comprehensive income		18,082		29,136
Total Shareholder’s Equity		1,659,833		1,252,977
Total Liabilities and Shareholder’s Equity	$	2,925,939	$	3,054,628

* See Consolidated Explanatory Notes on page 18.

** Except share amounts.

4 Quarterly Operating Supplement for the Period Ended March 31, 2008 / Consolidated GAAP Balance Sheets

Radian Asset Assurance Inc.

Consolidated Gross Premiums Written by Product* ($ Thousands)

	Quarter ended
	March 31 2008		March 31 2007			Percent Change
Public Finance Direct	$	5,603	$	12,780		–56.2	%
Structured Finance Direct		4,182		5,247		–20.3	%
Public Finance Reinsurance		17,541		18,154		–3.4	%
Structured Finance Reinsurance		5,442		5,912		–7.9	%
Trade Credit Reinsurance		229		(22	)	N/M
Total	$	32,997	$	42,071		–21.6	%

Consolidated Net Premiums Earned by Product* ($ Thousands)

	Quarter ended
	March 31 2008		March 31 2007			Percent Change
Public Finance Direct	$	17,810	$	11,585		53.7	%
Structured Finance Direct		3,882		4,691		–17.2	%
Public Finance Reinsurance		9,870		11,100		–11.1	%
Structured Finance Reinsurance		5,599		6,194		–9.6	%
Trade Credit Reinsurance		192		(15	)	N/M
Total	$	37,353	$	33,555		11.3	%

Consolidated Future Revenue**

As of March 31, 2008

($ Millions)

	Net Deferred Premium Amortization		Future Installments		Insurance Premium Earnings		Realized Gains on Credit Derivatives		Total Future Revenue
2008	$	57.0	$	20.8	$	77.8	$	40.1	$	117.9
2009		57.0		33.2		90.2		49.8		140.0
2010		52.6		24.6		77.2		43.5		120.7
2011		49.1		18.2		67.3		40.7		108.0
2012		46.1		17.0		63.1		37.4		100.5
2008 – 2012		261.8		113.8		375.6		211.5		587.1
2013 – 2017		189.4		66.8		256.2		74.0		330.2
2018 – 2022		129.7		42.7		172.4		4.6		177.0
2023 – 2027		78.8		32.4		111.2		4.0		115.2
After 2027		48.5		56.4		104.9		5.6		110.5
Total	$	708.2	$	312.1	$	1,020.3	$	299.7	$	1,320.0

* See Consolidated Explanatory Notes on page 18.

** This table depicts the expected revenue from insurance premiums, net of prepaid reinsurance premiums, and realized gains on credit derivatives, for the existing financial guaranty contracts, assuming no advance refundings as of March 31, 2008. Expected revenue will differ from contractual revenue because borrowers have the right to call or repay financial guaranty obligations.

5 Quarterly Operating Supplement for the Period Ended March 31, 2008 / Consolidated: Gross Premiums Written / Net Premiums Earned / Net Unearned Premium

Radian Asset Assurance Inc.

Consolidated Selected Loss Information*

($ Thousands)

Components of Claims Paid and Incurred Losses and Loss Adjustment Expenses

	Quarter ended
	March 31 2008			March 31 2007
Claims Paid
Trade Credit	$	687		$	2,602
Financial Guaranty		101,120			(383	)
Conseco Finance Corp		2,068			3,109
Total	$	103,875		$	5,328
Incurred Losses and Loss Adjustment Expenses
Trade Credit	$	(1,360	)	$	(1,276	)
Financial Guaranty		13,358			(2,676	)
Conseco Finance Corp		—			—
Total	$	11,998		$	(3,952	)

Components of Losses and Loss Adjustment Expense Reserves

	March 31 2008		December 31 2007
Financial Guaranty
Case	$	30,957	$	31,685
Allocated non-specific		47,882		141,270
Unallocated non-specific		53,961		49,195
		132,800		222,150
Trade Credit and Other
Case		14,467		14,800
IBNR		11,117		12,914
		25,584		27,714
Total	$	158,384	$	249,864

* See Consolidated Explanatory Notes on page 18.

6 Quarterly Operating Supplement for the Period Ended March 31, 2008 / Consolidated Selected Loss Information

Radian Asset Assurance Inc.

Consolidated Selected Derivative Information*

($ Millions)

Balance Sheet Information

	March 31 2008			December 31 2007
Notional value - insured portfolio	$	49,404.8		$	48,539.4
Assets
Gross unrealized gains on derivative financial guaranty contracts	$	138.2		$	7.9
Gross unrealized gains on put options on committed preferred securities		78.0			35.2
Total assets		216.2			43.1
Liabilities
Gross unrealized losses on derivative financial guaranty contracts		(349.8	)		(801.2	)
Net liabilities	$	(133.6	)	$	(758.1	)

Income Statement Information

	Quarter ended
	March 31 2008			March 31 2007
Realized gains and other settlements on derivatives
Premiums earned on credit derivative contracts	$	13.7		$	18.9
Premium settlements on terminated credit derivative contracts		—			11.3
Payment to maintain put options on committed preferred securities		(1.4	)		—
Total realized		12.3			30.2
Unrealized gains on derivatives
Change in fair value of credit derivatives		580.9			14.0
Change in fair value of put options on committed preferred securities		42.8			—
Change in fair value of investments		—			(0.1	)
Total unrealized		623.7			13.9
Change in fair value of derivative instruments	$	636.0		$	44.1

Net Gains and (Losses)

	March 31 2008			December 31 2007
Balance at January 1	$	(758.1	)	$	59.6
Realized gains and other settlements on derivatives		12.3			90.2
Unrealized gains on derivatives		623.7			(836.7	)
Premiums written		(12.9	)		(43.0	)
Payment to maintain put options on committed preferred securities		1.4			3.0
Premium settlements on terminated credit derivative contracts		—			(31.2	)
Balance at end of period	$	(133.6	)	$	(758.1	)

* See Consolidated Explanatory Notes on page 18.

7 Quarterly Operating Supplement for the Period Ended March 31, 2008 / Consolidated Selected Derivative Information

Radian Asset Assurance Inc.

Consolidated Investment Portfolio Highlights*

($ Millions)

Asset Quality**	Book Value (03/31/2008)		Percent of Book Value		Book Value (12/31/2007)		Percent of Book Value
AAA	$	1,545.8	63.7	%	$	1,698.4	67.5	%
AA		441.2	18.1	%		418.9	16.6	%
A		248.8	10.2	%		220.8	8.8	%
BBB		190.6	7.8	%		174.1	6.9	%
BIG		0.2	0.0	%		—	0.0	%
NR		4.4	0.2	%		6.1	0.2	%
Other		1.1	0.0	%		1.2	0.0	%
Total	$	2,432.1	100.0	%	$	2,519.5	100.0	%
Asset Class	Book Value (03/31/2008)		Percent of Book Value		Book Value (12/31/2007)		Percent of Book Value
Municipal Bonds	$	1,794.9	73.7	%	$	1,747.6	69.4	%
Taxable Bonds		400.9	16.5	%		361.3	14.3	%
Convertible Bonds		122.9	5.1	%		125.8	5.0	%
Short-Term		87.4	3.6	%		253.6	10.1	%
Other		26.0	1.1	%		31.2	1.2	%
Total	$	2,432.1	100.0	%	$	2,519.5	100.0	%

* See Consolidated Explanatory Notes on page 18.

** Average duration of 6.7 years and 5.8 years at 03/31/2008 and 12/31/2007, respectively.

8 Quarterly Operating Supplement for the Period Ended March 31, 2008 / Consolidated Investment Portfolio Highlights

Radian Asset Assurance Inc.

Consolidated Insured Portfolio Highlights* ($ Millions)

Consolidated Gross Par Originated

	Quarter ended
	March 31, 2008						March 31, 2007
	Direct		Assumed**		Total		Direct		Assumed**		Total
Public Finance	$	766	$	1,268	$	2,034	$	521	$	2,626	$	3,147
Structured Finance		116		408		524		10,823		418		11,241
Total	$	882	$	1,676	$	2,558	$	11,344	$	3,044	$	14,388

Sector Breakout

	Net Par Outstanding (03/31/2008)		Percent of total Net Par		Net Par Outstanding (12/31/2007)		Percent of total Net Par
Public Finance
General Obligations	$	20,062	17.2	%	$	19,780	17.0	%
Healthcare		10,761	9.2	%		10,849	9.4	%
Transportation		7,442	6.4	%		6,938	6.0	%
Utilities		6,515	5.6	%		6,555	5.7	%
Tax Backed		5,886	5.0	%		5,851	5.0	%
Investor-Owned Utilities		4,157	3.6	%		3,889	3.4	%
Education		4,022	3.4	%		4,237	3.7	%
Long Term Care		1,516	1.3	%		1,548	1.3	%
Housing		606	0.5	%		621	0.5	%
Other Public Finance		1,898	1.6	%		1,784	1.5	%
Subtotal Public Finance	$	62,865	53.8	%	$	62,052	53.5	%
Structured Finance
Collateralized Debt Obligations	$	46,736	40.0	%	$	46,961	40.4	%
Asset Backed – Mortgage and MBS		1,627	1.4	%		1,579	1.4	%
Asset Backed – Consumer		1,389	1.2	%		1,415	1.2	%
Asset Backed – Commercial and Other		1,366	1.2	%		1,359	1.2	%
Other Structured Finance		2,800	2.4	%		2,656	2.3	%
Subtotal Structured Finance		53,918	46.2	%		53,970	46.5	%
Total	$	116,783	100.0	%	$	116,022	100.0	%

* See Consolidated Explanatory Notes on page 18.

** Current in 2008; reflects one quarter lag in 2007.

9 Quarterly Operating Supplement for the Period Ended March 31, 2008 / Consolidated Insured Portfolio Highlights

Radian Asset Assurance Inc.

Consolidated Insured Portfolio Highlights*

($ Millions)

Rating Distribution**

Rating**	Net Par Outstanding (03/31/2008)		Percent of total Net Par		Net Par Outstanding (12/31/2007)		Percent of total Net Par
Public Finance
AAA	$	2,660	2.3	%	$	1,943	1.7	%
AA		19,242	16.4	%		19,560	16.8	%
A		20,630	17.7	%		20,753	17.9	%
BBB		18,401	15.8	%		18,044	15.6	%
Below Investment Grade		1,889	1.6	%		1,709	1.5	%
Not Rated		42	0.0	%		43	0.0	%
Subtotal Public Finance	$	62,864	53.8	%	$	62,052	53.5	%
Structured Finance
AAA	$	48,130	41.2	%	$	48,267	41.6	%
AA		903	0.8	%		858	0.8	%
A		1,426	1.2	%		1,541	1.3	%
BBB		2,506	2.2	%		2,471	2.1	%
Below Investment Grade		82	0.1	%		86	0.1	%
Not Rated		872	0.7	%		747	0.6	%
Subtotal Structured Finance	$	53,919	46.2	%	$	53,970	46.5	%
Total
AAA	$	50,790	43.5	%	$	50,210	43.3	%
AA		20,145	17.2	%		20,418	17.6	%
A		22,056	18.9	%		22,294	19.2	%
BBB		20,907	18.0	%		20,515	17.7	%
Below Investment Grade		1,971	1.7	%		1,795	1.6	%
Not Rated		914	0.7	%		790	0.6	%
Total	$	116,783	100.0	%	$	116,022	100.0	%

* See Consolidated Explanatory Notes on page 18.

** Indicated ratings category reflects the highest rating assigned to the underlying obligation from the three rating agencies (S&P, Moody’s and Fitch), or, if no such rating has been assigned, Radian’s rating estimate of the obligation utilizing rating agency models and methodologies to the extent available. Radian’s rating estimates are subject to revision at any time and may differ from the credit ratings ultimately assigned by the three rating agencies.

10 Quarterly Operating Supplement for the Period Ended March 31, 2008 / Consolidated Insured Portfolio Highlights

Radian Asset Assurance Inc.

Consolidated Insured Portfolio Highlights*

($ Millions)

Geographic Diversification

	Net Par Outstanding (03/31/2008)		Percent of total Net Par		Net Par Outstanding (12/31/2007)		Percent of total Net Par
Domestic public finance
California	$	7,355	6.3	%	$	7,191	6.2	%
New York		5,717	4.9	%		5,862	5.2	%
Texas		4,494	3.8	%		4,454	3.8	%
Florida		3,580	3.1	%		3,466	3.0	%
Pennsylvania		3,327	2.8	%		3,298	2.8	%
Illinois		3,135	2.7	%		3,156	2.7	%
New Jersey		2,667	2.3	%		2,666	2.3	%
Massachusetts		2,266	1.9	%		2,417	2.1	%
Washington		2,054	1.8	%		2,056	1.8	%
Colorado		1,858	1.6	%		1,831	1.6	%
Top ten states – domestic public finance subtotal		36,453	31.2	%		36,397	31.5	%
Total of other states – domestic public finance		19,984	17.1	%		20,124	17.3	%
Total domestic public finance		56,437	48.3	%		56,521	48.8	%
Domestic structured finance		36,929	31.6	%		37,054	31.9	%
International public and structured finance		23,417	20.1	%		22,447	19.3	%
Total	$	116,783	100.0	%	$	116,022	100.0	%

* See Consolidated Explanatory Notes on page 18.

11 Quarterly Operating Supplement for the Period Ended March 31, 2008 / Consolidated Insured Portfolio Highlights

Radian Asset Assurance Inc.

Consolidated Insured Portfolio Highlights* ($ Millions)

25 Largest Public Finance Exposures

Obligor	Net Par Outstanding (03/31/2008)		Percent of total Net Par		Rating**
New York, NY – G.O.	$	827	0.7	%	AA
California – G.O.		742	0.6	%	A+
Port Authority of New York & New Jersey		715	0.6	%	AA-
Chicago, IL – G.O.		568	0.5	%	AA
New Jersey Transportation Trust Fund Authority		538	0.5	%	AA-
Washington – G.O.		464	0.4	%	AA+
Los Angeles Unified School District, CA		424	0.4	%	AA-
Metropolitan Transportation Authority, NY		402	0.4	%	A
Massachusetts – G.O.		390	0.3	%	AA
Thames Water Utilities Finance PLC, UK		373	0.3	%	BBB+
Massachusetts School Building Authority		359	0.3	%	AA+
New Jersey Economic Development Authority School Facilities		357	0.3	%	AA-
Puerto Rico – G.O.		310	0.3	%	BBB-
Jefferson County, AL – Sewer Revenue		300	0.3	%	CCC
Illinois – G.O.		297	0.3	%	AA
Long Island Power Authority, NY		276	0.2	%	A-
Reliance Rail Corp., AU		274	0.2	%	A-
Citizens Prop Ins Corp., FL		264	0.2	%	A+
District of Columbia		254	0.2	%	A+
Illinois Toll Highway Authority		252	0.2	%	AA-
San Francisco International Airport, CA		252	0.2	%	A+
New Jersey Turnpike Authority		248	0.2	%	A
Metropolitan Washington DC Airports Authority		243	0.2	%	AA
Bay Area Toll Authority, CA		241	0.2	%	AA
Massachusetts Water Resources Authority		237	0.2	%	AA
Total	$	9,607	8.2	%

Largest Structured Finance Exposures

Radian’s largest Structured Finance exposures consist of the following:

• Seven $600 million transactions representing Static Synthetic Investment Grade Corporate CDOs rated AAA.

• One $599 million transaction representing a Static Synthetic Investment Grade Commercial Mortgage Backed Securities CDO rated AAA.

• One $563 million transaction representing a Static Synthetic Investment Grade Corporate CDO rated AAA.

• One $499 million transaction representing a Managed Cashflow Investment Grade Asset-Backed CDO rated AAA.

• Twenty eight $450 million transactions representing Static Synthetic Investment Grade Corporate CDOs rated AAA.

• One $450 million transaction representing a Second-to-Pay CDO rated AAA.

• One $450 million transaction representing a Static Synthetic Investment Grade Commercial Mortgage Backed Securities CDO rated AAA.

These 40 transactions combine to total $19.4 billion, or 16.6% of Radian’s Net Par Outstanding as of March 31, 2008.

* See Consolidated Explanatory Notes on page 18.

** Indicated ratings category reflects the highest rating assigned to the underlying obligation from the three rating agencies (S&P, Moody’s and Fitch), or, if no such rating has been assigned, Radian’s rating estimate of the obligation utilizing rating agency models and methodologies to the extent available. Radian’s rating estimates are subject to revision at any time and may differ from the credit ratings ultimately assigned by the three rating agencies.

12 Quarterly Operating Supplement for the Period Ended March 31, 2008 / Consolidated Insured Portfolio Highlights

Radian Asset Assurance Inc.

Consolidated Insured Portfolio Highlights*

($ Millions)

Below Investment Grade Exposure by Sector

Sector	Net Par Outstanding (03/31/2008)		Percent of total Net Par
Public Finance
General Obligations	$	1,251	1.1	%
Tax Backed		142	0.1	%
Healthcare		135	0.1	%
Utilities		123	0.1	%
Education		114	0.1	%
Long Term Care		55	0.1	%
Transportation		23	0.0	%
Housing		7	0.0	%
Other Public Finance		39	0.0	%
Subtotal Public Finance		1,889	1.6	%
Structured Finance
Asset Backed – Consumer		64	0.1	%
Asset Backed – Commercial and Other		14	0.0	%
Collateralized Debt Obligations		3	0.0	%
Asset Backed – Mortgage and MBS		1	0.0	%
Subtotal Structured Finance		82	0.1	%
Total	$	1,971	1.7	%

10 Largest Health Care Exposures

Obligor	Net Par Outstanding (03/31/2008)		Percent of total Net Par		Rating**
Catholic Healthcare West	$	143	0.1	%	A+
Catholic Health Initiatives		120	0.1	%	AA
MedStar Health		117	0.1	%	A-
Capital Hospitals		117	0.1	%	BBB-
Partners Healthcare System		114	0.1	%	AA
Bon Secours Health System Inc		109	0.1	%	A-
Kaiser Permanente		109	0.1	%	A+
OSF Healthcare System Inc.		105	0.1	%	A
Methodist Hospital		105	0.1	%	AA
Consort Healthcare Limited		104	0.1	%	BBB-
Total	$	1,143	1.0	%

* See Consolidated Explanatory Notes on page 18.

** Indicated ratings category reflects the highest rating assigned to the underlying obligation from the three rating agencies (S&P, Moody’s and Fitch), or, if no such rating has been assigned, Radian’s rating estimate of the obligation utilizing rating agency models and methodologies to the extent available. Radian’s rating estimates are subject to revision at any time and may differ from the credit ratings ultimately assigned by the three rating agencies.

13 Quarterly Operating Supplement for the Period Ended March 31, 2008 / Consolidated Insured Portfolio Highlights

Radian Asset Assurance Inc.

Consolidated Insured Portfolio Highlights*

($ Millions)

CDO Exposure

	Net Par Outstanding (03/31/2008)		Percent of Total CDO Net Par		Net Par Outstanding (12/31/2007)		Percent of Total CDO Net Par
Direct	$	44,827	95.9	%	$	45,121	96.1	%
Assumed		1,909	4.1	%		1,840	3.9	%
Total	$	46,736	100.0	%	$	46,961	100.0	%

Total CDO Portfolio Rating Distribution**

	Net Par Outstanding (03/31/2008)		Percent of Total CDO Net Par		Net Par Outstanding (12/31/2007)		Percent of Total CDO Net Par
AAA	$	46,413	99.3	%	$	46,491	99.0	%
AA		115	0.3	%		149	0.3	%
A		185	0.4	%		175	0.4	%
BBB		20	0.0	%		141	0.3	%
Below Investment Grade		3	0.0	%		5	0.0	%
Not Rated		—	0.0	%		—	0.0	%
Total	$	46,736	100.0	%	$	46,961	100.0	%

Direct CDO Underlying Asset Types

	Direct CDO Net Par Outstanding (03/31/2008)		Percent of Direct CDO Net Par		Direct CDO Net Par Outstanding (12/31/2007)		Percent of Direct CDO Net Par
Corporates	$	38,605	86.1	%	$	38,822	86.0	%
Other		6,222	13.9	%		6,299	14.0	%
Total	$	44,827	100.0	%	$	45,121	100.0	%

* See Consolidated Explanatory Notes on page 18.

** Indicated ratings category reflects the highest rating assigned to the underlying obligation from the three rating agencies (S&P, Moody’s and Fitch), or, if no such rating has been assigned, Radian’s rating estimate of the obligation utilizing rating agency models and methodologies to the extent available. Radian’s rating estimates are subject to revision at any time and may differ from the credit ratings ultimately assigned by the three rating agencies.

14 Quarterly Operating Supplement for the Period Ended March 31, 2008 / Consolidated Insured Portfolio Highlights

Radian Asset Assurance Inc.

Consolidated Insured Portfolio Highlights*

($ Millions)

CDO of ABS, CMBS, and Multi-sector Portfolio

Type of Collateral as a Percentage of Total Pool

Year Insured	Legal Final Maturity	Net Par Out- standing (03/31/ 2008)		ABS		RMBS		Sub- prime RMBS		CMBS		Invest- ment Grade Corporate		High Yield Corporate		CDO of ABS		CDO of CDO		Other		Total Collateral Pool		S&P Rating	Moody’s Rating	Original AAA Sub- ordination	Radian Attachment Point		Radian Detachment Point		% RMBS A or Better**		% Sub- prime A or Better**
2004	2009		284	33.8	%	34.5	%	0.0	%	0.0	%	29.2	%	2.5	%	0.0	%	0.0	%	0.0	%	100.0	%	AAA	Aaa	2.2%	21.1	%	40.1	%	100.0	%	0.0	%
2005	2010		150	25.2	%	49.0	%	15.8	%	0.0	%	8.5	%	1.5	%	0.0	%	0.0	%	0.0	%	100.0	%	AAA	N/R	4.5%	13.0	%	38.0	%	100.0	%	100.0	%
2006	2046		499	0.0	%	22.9	%	42.3	%	13.6	%	0.0	%	0.0	%	12.7	%	3.7	%	4.8	%	100.0	%	AA-***	Aaa	4.9%	20.2	%	100.0	%	76.3	%	73.5	%
2006	2047		450	0.0	%	0.0	%	0.0	%	100.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	100.0	%	AAA	N/R	2.4%	6.8	%	30.0	%	0.0	%	0.0	%
2006	2049		599	0.0	%	0.0	%	0.0	%	100.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	100.0	%	AAA	N/R	0.6%	5.1	%	30.0	%	0.0	%	0.0	%
2006	2056		353	0.0	%	0.0	%	0.0	%	100.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	100.0	%	AAA	N/R	5.5%	6.5	%	30.0	%	0.0	%	0.0	%
2007	2047		430	0.0	%	0.0	%	0.0	%	100.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	100.0	%	AAA	Aaa	2.4%	7.0	%	50.0	%	0.0	%	0.0	%
Total		$	2,765

* See Consolidated Explanatory Notes on page 18.

** Ratings are based on Moody’s ratings. If Moody’s rating is unavailable, then S&P rating applies.

*** S&P downgraded this CDO in March 2008.

15 Quarterly Operating Supplement for the Period Ended March 31, 2008 / Consolidated Insured Portfolio Highlights

Radian Asset Assurance Inc.

Consolidated Insured Portfolio Highlights*

($ Millions)

Non-CDO RMBS Portfolio: Breakdown by Asset Type

	Net Par Outstanding (3/31/2008)		% of RMBS Portfolio		Direct**			Assumed Non-HELOCS			Assumed HELOCs			Assumed Total			% 2006/2007 Vintage	AAA		AA		Ratings*** A		BBB****		BIG*****
SubPrime	$	418 MM 147 Policies	36.2	%	$	139 MM 7 Policies 33.3	%	$	230MM 136 Policies 54.9	%	$	49 MM 4 Policies 11.8	%	$	279MM 140 Policies 66.7	%	10.4% / 31.6%	19.0	%	0.8	%	11.4	%	8.8	%	59.9	%
Prime	$	287 MM 69 Policies	24.9	%	$	124 MM 7 Policies 43.0	%	$	76 MM 45 Policies 26.6	%	$	87MM 17 Policies 30.4	%	$	163 MM 62 Policies 57.0	%	6.9% / 32.9%	70.3	%	8.1	%	3.7	%	15.8	%	2.0	%
Alt A	$	413 MM 61 Policies	35.8	%	$	76 MM 3 Policies 18.4	%	$	262 MM 51 Policies 63.3	%	$	75 MM 7 Policies 18.3	%	$	337 MM 58 Policies 81.6	%	25.9% / 32.6%	74.5	%	3.5	%	3.2	%	7.2	%	11.5	%
Second to Pay	$	36 MM 9 Policies	3.1	%	$	0 MM 0 Policies 0.0	%	$	36 MM 9 Policies 100.0	%	$	0 MM 0 Policies 0.0	%	$	36 MM 9 Policies 100.0	%	0.0% / 96.6%	100.0	%	0.0	%	0.0	%	0.0	%	0.0	%
Total RMBS	$	1,154 MM 286 Policies	100.0	%	$	339 MM 17 Policies 29.2	%	$	604 MM 241 Policies 52.3	%	$	211MM 28 Policies 18.4	%	$	815 MM 269 Policies 70.6	%	14.7% / 34.2%	54.2	%	3.6	%	6.2	%	9.7	%	26.3	%

Note: No direct RMBS have been written since 2005 and no direct SubPrime RMBS have been written since 2004

* See Consolidated Explanatory Notes on page 18.

** Radian has no direct HELOC exposure

*** Indicated ratings are based on Radian’s Internal Ratings

**** 100% of the BBB exposure is assumed through treaties from the AAA primaries

***** All of the BIG exposure is on Radian’s Watch List and reserves have been established for these as needed

16 Quarterly Operating Supplement for the Period Ended March 31, 2008 / Consolidated Insured Portfolio Highlights

Radian Asset Assurance Inc.

Consolidated Insured Portfolio Highlights*

($ Millions)

Net Debt Service Amortization

	Scheduled Net Debt Service Amortization as of 03/31/2008		Ending Net Debt Service Outstanding
2008	$	4,371	$	161,560
2009		7,800		153,760
2010		7,185		146,575
2011		7,213		139,362
2012		11,416		127,946
2013-2017		54,170		73,776
2018-2022		23,611		50,165
2023-2027		18,042		32,123
After 2027		32,123		—
Total	$	165,931

* See Consolidated Explanatory Notes on page 18.

17 Quarterly Operating Supplement for the Period Ended March 31, 2008 / Consolidated Insured Portfolio Highlights

Radian Asset Assurance Inc.

Consolidated Explanatory Notes

1. The accompanying unaudited GAAP financial information includes the accounts of Radian, Radian Asset Assurance Limited, (RAAL) Radian Financial Products Limited, Van-American Insurance Agency, Inc. and Asset Recovery Solutions Group Inc.

These unaudited consolidated financial statements do not include all of the information and disclosures required by generally accepted accounting principles. These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto, including the Report of Independent Registered Public Accounting Firm for Radian for the year ended December 31, 2006.

2. Prior year amounts have been restated to conform to current year presentation.

3. Premiums earned on credit derivative contracts of $13.7 million for the quarter ended March 31, 2008 and $18.9 million for the prior year quarter are reported in realized gain and other settlements on derivatives. This reclassification is the result of an effort by the financial guaranty industry, in consultation with the Securities and Exchange Commission, to provide consistency in disclosure of credit derivative contracts.

4. Other operating expenses were $20.5 million for the first quarter of 2008, compared to $14.1 million for the first quarter of 2007. Operating expenses for the first quarter of 2008 include an increase in employee costs, primarily severance related, as a result of Radian’s decision to exit a portion of the structured finance business and to discontinue writing insurance on CDOs.

5. The current quarter’s decrease in losses and loss adjustment expenses payable is primarily related to payments of $100.0 million pertaining to one financial guaranty transaction for which reserves of $100.0 million were established in 2007.

18 Quarterly Operating Supplement for the Period Ended March 31, 2008 / Consolidated Explanatory Notes

Safe Harbor Statement

All statements made herein that address events or developments that we expect or anticipate may occur in the future are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the U.S. Private Securities Litigation Reform Act of 1995. These statements are made on the basis of management’s current views and assumptions with respect to future events. These forward-looking statements, as well as our prospects as a whole, are subject to risks and uncertainties, including the following: changes in general financial and political conditions such as extended national or regional economic recessions (or expansions), changes in income, population trends and changes in household formation patterns, changes in unemployment rates, changes or volatility in interest rates, consumer confidence, or credit spreads; future credit market disruptions—in particular, further deterioration in the municipal finance, corporate credit, structued financial, mortgage and related credit markets; changes in investor perception of the strength of us individually, or financial guaranty providers generally, or in the perception of the strength of our ultimate parent Radian Group Inc. and the other businesses in which it or its other subsidiaries participate, including the mortgage insurance industry; risks faced by the businesses, municipalities or pools of assets covered by our insurance; the loss of , or substantial reduction of business from, a customer with whom we have a concentration of our insurance in force or the influence of large customers; increased severity or frequency of losses associated with certain of our products that are riskier than traditional financial guaranty insurance policies; losses associated with the aging of our municipal finance and structured finance insurance portfolios; ratings actions with respect to Radian Group’s credit ratings or the insurance financial-strength ratings assigned by the major ratings agencies to us or any of our insurance subsidiaries; heightened competition from other insurance providers, from federal and state governmental or quasi-governmental entities and from alternative products to financial guaranty insurance; the application of federal or state consumer, lending, insurance and other applicable laws and regulations, or changes in these laws and regulations or the way they are interpreted; the possibility that we may fail to estimate accurately the likelihood, magnitude and timing of losses in connection with establishing loss reserves for our financial guaranty businesses or to estimate accurately the fair value amounts of derivative financial guaranty contracts in determining gains and losses on these contracts; changes in accounting guidance from the SEC or the Financial Accounting Standards Board regarding income recognition and the treatment of loss reserves in the financial guaranty insurance industry; legal and other limitations on the amount of dividends that we may pay; international expansion of our financial guaranty businesses into new markets and risks associated with our international business activities. For more information regarding these risks and uncertainties, as well as certain additional risks that we face, investors should refer to the risk factors detailed in Part I, Item 1A of Radian Group’s annual report on Form 10-K for the year ended December 31, 2007, as modified by Part I Item 1A of Radian Group’s quarterly report on Form 10-Q for the period ended March 31, 2008. We caution you not to place undue reliance on these forward-looking statements, which are current only as of the date on which this information was publicly released. We do not intend to, and disclaim any duty or obligation to, update or revise any forward-looking statements made in this document to reflect new information, future events or for any other reason.

19 Quarterly Operating Supplement for the Period Ended March 31, 2008 / Safe Harbor Statement