Radian Group Inc. First Quarter 2001 Earnings Up 37%

Apr 25, 2001, 01:00 ET from Radian Group Inc.

    PHILADELPHIA, April 25 /PRNewswire/ -- Radian Group Inc. (NYSE:   RDN) today
 reported net income of $80.2 million for the first quarter, up 37% compared to
 $58.6 million in the first quarter of 2000.  Net income per share was $1.91,
 an increase of 25% compared to $1.53 in the first quarter of 2000.  First
 quarter results include one month of operations of the financial guaranty and
 other businesses of Enhance Financial Services Group Inc., which was acquired
 on February 28, 2001.
     New primary mortgage insurance written in the quarter was $8.6 billion,
 compared with $5.1 billion in the first quarter of 2000, an increase of 68%.
 Also during the quarter, Radian Insurance Inc., a subsidiary created last year
 to insure non-traditional business, wrote an additional $1.1 billion of new
 insurance.  Primary insurance-in-force grew to $103.4 billion at March 31,
 2001, an increase of 6% from $97.4 billion at March 31, 2000.  Persistency was
 76.9% at March 31, 2001, compared with 78.2% at December 31, 2000 and at
 March 31, 2000.
     Radian's primary delinquency rate was 2.53% at March 31, 2001, compared to
 2.39% at December 31, 2000, and 2.16% at March 31, 2000.  In the quarter,
 direct claims paid were $21.8 million, compared to $21.1 million in the fourth
 quarter of 2000 and $23.3 million in the first quarter of 2000.
     Commenting on the quarter, Radian Chairman and Chief Executive Officer
 Frank P. Filipps said, "In our first quarter as a diversified credit
 enhancement company, Radian achieved record earnings and made significant
 progress toward our strategic goal of becoming a leading provider of risk
 management products and services.  Our earnings growth was fueled by the
 outstanding performance of our core mortgage insurance business, where we
 experienced solid growth in insurance-in-force and revenues.  And consistent
 with our prudent approach to managing risk, Radian maintained the strongest
 reserve level in the mortgage insurance industry.
     "We completed the acquisition of Enhance Financial this quarter, which
 provides us with a dynamic platform for growth and diversification.  In our
 mortgage services businesses, ExpressClose.com registered outstanding volume
 growth and C-BASS contributed significantly to earnings."
     Radian Group Inc. will hold a conference call to discuss the company's
 first quarter results on Thursday, April 26, 2001 at 9:00 a.m. Eastern time.
 The call will be simultaneously webcast, and individuals interested in
 listening may logon at http://www.videonewswire.com/radian/042601.
     Radian Group Inc. is the parent company of Radian Guaranty Inc., Enhance
 Reinsurance Company, Asset Guaranty Insurance Company and ExpressClose.com.
 The company's products and services enable homebuyers to purchase homes more
 quickly and with smaller downpayments; protect lenders against loan default;
 lower the costs of mortgage origination and servicing; and provide insurance
 and reinsurance to investors in corporate, municipal and asset-backed
 securities.
 
     The following is a "Safe Harbor" Statement under the Private Securities
 Litigation Reform Act of 1995:
     The statements contained in this release that are not historical facts are
 forward-looking statements.  Actual results may differ materially from those
 projected in the forward-looking statements.  These forward-looking statements
 involve risks and uncertainties, including but not limited to, the following
 risks: that interest rates may increase rather than remain stable or decrease;
 that housing demand may decrease for any number of reasons, including changes
 in interest rates, adverse economic conditions, or other reasons; that
 Radian's market share may decrease as a result of changes in underwriting
 criteria by Radian or its competitors, or other reasons; and changes in the
 performance of the financial markets, in the demand for and market acceptance
 of Radian products, increased competition from government programs and the use
 of substitutes for mortgage insurance, and in general conditions.  Investors
 are also directed to other risks discussed in documents filed by Radian with
 the Securities and Exchange Commission.
 
 
                       Radian Group Inc. and Subsidiaries
                        Consolidated Statement of Income
 
                                                     Quarter Ended
                                                        March 31
                                            2001                        2000
     (Thousands of dollars, except per-
      share and other data)
 
     Revenues:
     Net premiums written                  160,249                     135,606
 
     Premiums earned                       155,763                     127,297
     Net investment income                  28,020                      18,827
     Gain on sales of investments            1,823                         851
     Equity in net income of affiliates     12,044                           0
     Other income                            6,292                       1,350
 
                                           203,942                     148,325
 
     Expenses:
 
     Provision for losses                   49,272                      38,782
     Policy acquisition costs               17,041                      13,262
     Other operating expenses               23,958                      13,451
     Interest expense                        1,401                           0
 
                                            91,672                      65,495
 
     Pretax income                         112,270                      82,830
     Provision for income taxes            (32,113)                    (24,230)
 
     Net income                             80,157                      58,600
 
     Net income per share                    $1.91                       $1.53
 
     Weighted average shares outstanding
      (in thousands)                        41,519                      37,864
 
 
                       Radian Group Inc. and Subsidiaries
                           Consolidated Balance Sheet
 
                                             March 31 December 31    March 31
     (Thousands of dollars)                    2001       2000         2000
 
     Assets:
     Cash and investments                   2,966,069   1,752,881   1,515,900
     Investments in affiliates                146,603           0           0
     Deferred policy acquisition costs        126,320      70,049      62,952
     Prepaid federal income taxes             287,514     270,250     202,750
     Other assets                             293,857     179,631     115,796
 
          Total assets                      3,820,363   2,272,811   1,897,398
 
 
     Liabilities and stockholders' equity:
     Unearned premiums                        450,843      77,241      63,232
     Reserve for losses                       524,898     390,021     349,966
     Short term debt                          173,724           0           0
     Long term debt                            75,000           0           0
     Deferred federal income taxes            358,932     291,294     232,908
     Other liabilities                        181,647     112,058      82,679
 
        Total liabilities                   1,765,044     870,614     728,785
 
     Preferred stock                           40,000      40,000      40,000
 
     Common stock                                  46          38          37
     Additional paid-in capital             1,124,331     546,995     529,061
     Retained earnings                        868,025     789,831     605,348
     Accumulated other comprehensive
      income (loss)                            22,917      25,333      (5,833)
 
        Total common stockholders' equity   2,015,319   1,362,197   1,128,613
 
          Total liabilities and
           stockholders' equity             3,820,363   2,272,811   1,897,398
 
     Book value per share                      $43.52      $35.93      $30.13
 
 
                               Radian Group Inc.
                        Consolidated Statement of Income
                    Mortgage Insurance and Related Services
 
                                                      Quarter Ended
                                                        March 31
                                            2001                        2000
     (Thousands of dollars, except per-
      share and other data)
 
     Revenues:
     Net premiums written                  150,634                     135,606
 
     Premiums earned                       144,575                     127,297
     Net investment income                  23,130                      18,827
     Gain on sales of investments            1,854                         851
     Other income                            5,878                       1,350
 
                                           175,437                     148,325
 
     Expenses:
 
     Provision for losses                   46,444                      38,782
     Policy acquisition costs               15,128                      13,262
     Other operating expenses               21,641                      13,451
 
                                            83,213                      65,495
 
     Pretax income                          92,224                      82,830
     Provision for income taxes            (26,497)                    (24,230)
 
     Net income                             65,727                      58,600
 
 
                               Radian Group Inc.
                           Consolidated Balance Sheet
                    Mortgage Insurance and Related Services
 
                                            March 31  December 31    March 31
     (Thousands of dollars)                   2001        2000        2000
 
     Assets:
     Cash and investments                   1,852,959   1,752,881   1,515,900
     Deferred policy acquisition costs         72,055      70,049      62,952
     Prepaid federal income taxes             270,250     270,250     202,750
     Other assets                             186,878     179,631     115,796
 
          Total assets                      2,382,142   2,272,811   1,897,398
 
 
     Liabilities and stockholders' equity:
     Unearned premiums                         82,889      77,241      63,232
     Reserve for losses                       412,935     390,021     349,966
     Deferred federal income taxes            336,162     291,294     232,908
     Other liabilities                        101,811     112,058      82,679
 
        Total liabilities                     933,797     870,614     728,785
 
     Preferred stock                           40,000      40,000      40,000
 
     Common stock                                  46          38          37
     Additional paid-in capital               534,309     546,995     529,061
     Retained earnings                        853,595     789,831     605,348
     Accumulated other comprehensive
      income (loss)                            20,395      25,333      (5,833)
 
        Total common stockholders' equity   1,408,345   1,362,197   1,128,613
 
          Total liabilities and
           stockholders' equity             2,382,142   2,272,811   1,897,398
 
 
                               Radian Group Inc.
                  Mortgage Insurance Supplemental Information
                 For the Quarter Ended and As of March 31, 2001
 
                                                   Quarter Ended
                                                     March 31
                                                 2001        2000
 
     Primary new insurance written
      ($millions)                               8,590       5,086
     Radian Insurance new insurance
      written ($millions)                       1,102           0
     Primary risk written ($millions)           2,095       1,281
     Pool risk written ($millions)                 33          90
 
     Direct claims paid                        21,751      23,331
 
     Statutory loss ratio                       33.5%       30.8%
     Statutory expense ratio                    18.6%       17.2%
                                                52.1%       48.0%
 
     Persistency (twelve months ended
      March 31)                                 76.9%       78.2%
 
     Percentage of primary new insurance
      written:
      Monthlies                                   94%         92%
      Refinances                                  36%         13%
      95% LTV and above                           38%         44%
      ARMs                                        15%         19%
 
 
                                             March 31  December 31    March 31
                                                2001        2000        2000
 
     Direct primary insurance in force
      ($millions)                             103,431     100,859      97,383
     Direct primary risk in force
      ($millions)                              25,274      24,622      23,359
     GSE pool risk in force ($millions)         1,177       1,145       1,204
     Total pool risk in force ($millions)       1,518       1,507       1,473
     Radian Insurance risk in force
      ($millions)                                 476         211           0
 
     Primary insurance:
          Prime:
          Number of insured loans             795,299     792,813     791,123
          Number of loans in default           18,610      17,840      16,558
          Percentage of loans in default        2.34%       2.25%       2.09%
 
          Non Prime:
          Number of insured loans              81,952      65,600      38,075
          Number of loans in default            3,609       2,690       1,354
          Percentage of loans in default        4.40%       4.10%       3.56%
 
          Total:
          Number of insured loans             877,251     858,413     829,198
          Number of loans in default           22,219      20,530      17,912
          Percentage of loans in default        2.53%       2.39%       2.16%
 
     Pool insurance:
          Number of insured loans             784,150     768,388     737,618
          Number of loans in default            6,353       5,989       4,834
          Percentage of loans in default        0.81%       0.78%       0.66%
 
     Risk-to-capital ratio                     15.4:1      15.4:1      17.2:1
 
 
                               Radian Group Inc.
                        Consolidated Statement of Income
             Enhance Financial Services Group Inc. and Subsidiaries
 
                                                     Quarter Ended
                                                        March 31
                                                         2001
     (Thousands of dollars, except per-
      share and other data)
 
     Revenues:
     Net premiums written                                 9,615
 
     Premiums earned                                     11,188
     Net investment income                                4,890
     Loss on sales of investments                           (31)
     Equity in net income of affiliates                  12,044
     Other income                                           414
 
                                                         28,505
 
     Expenses:
 
     Provision for losses                                 2,828
     Policy acquisition costs                             1,913
     Other operating expenses                             2,317
     Interest expense                                     1,401
 
                                                          8,459
 
     Pretax income                                       20,046
     Provision for income taxes                          (5,616)
 
     Net income                                          14,430
 
 
                               Radian Group Inc.
                           Consolidated Balance Sheet
             Enhance Financial Services Group Inc. and Subsidiaries
 
                                                   March 31
     (Thousands of dollars)                          2001
 
     Assets:
     Cash and investments                          1,113,110
     Investments in affiliates                       146,603
     Deferred policy acquisition costs                54,265
     Prepaid federal income taxes                     17,264
     Other assets                                    106,979
 
          Total assets                             1,438,221
 
 
     Liabilities and stockholder's equity:
     Unearned premiums                               367,954
     Reserve for losses                              111,963
     Short term debt                                 173,724
     Long term debt                                   75,000
     Deferred federal income taxes                    22,770
     Other liabilities                                79,836
 
        Total liabilities                            831,247
 
 
     Additional paid-in capital                      590,022
     Retained earnings                                14,430
     Accumulated comprehensive income                  2,522
 
        Total common stockholder's equity            606,974
 
          Total liabilities and
           stockholder's equity                    1,438,221
 
 
                               Radian Group Inc.
             Financial Guaranty Insurance Supplemental Information
                 For the Quarter Ended and As of March 31, 2001
 
                                                  Quarter Ended
     (Thousands of dollars,                          March 31
       except ratios)                                  2001
 
     Net Premiums Written:
     Muni direct                                       1,181
     Muni reinsurance                                  1,991
     Non-muni direct                                   2,454
     Non-muni reinsurance                                713
     Trade credit                                      3,276
                                                       9,615
 
     Net Premiums Earned:
     Muni direct                                       2,067
     Muni reinsurance                                  2,130
     Non-muni direct                                   3,129
     Non-muni reinsurance                              1,199
     Trade credit                                      2,663
                                                      11,188
 
 
     Statutory loss ratio                              25.3%
     Statutory expense ratio                           33.5%
                                                       58.8%
 
     Refundings included in earned premium             1,230
 
     Capital and surplus                             289,073
     Contingency reserve                             301,484
          Qualified statutory capital                590,557
 
     Unearned premium reserve                        448,878
     Loss and loss expense reserve                    50,323
          Total policyholders' reserves            1,089,758
 
     Present value of installment premiums           146,596
     Reinsurance and soft capital
      facilities                                      42,500
         Total claims paying resources             1,278,854
 
     Net debt service outstanding                 92,712,783
 
     Capital leverage ratio (1)                          157
     Claims paying leverage ratio (2)                     87
 
 
     (1) Net debt service outstanding divided by qualified statutory capital
     (2) Net debt service outstanding divided by total claims paying resources,
     adjusted for the tax effect on unearned premium reserve and present value
     of installment premiums.
 
 

SOURCE Radian Group Inc.
    PHILADELPHIA, April 25 /PRNewswire/ -- Radian Group Inc. (NYSE:   RDN) today
 reported net income of $80.2 million for the first quarter, up 37% compared to
 $58.6 million in the first quarter of 2000.  Net income per share was $1.91,
 an increase of 25% compared to $1.53 in the first quarter of 2000.  First
 quarter results include one month of operations of the financial guaranty and
 other businesses of Enhance Financial Services Group Inc., which was acquired
 on February 28, 2001.
     New primary mortgage insurance written in the quarter was $8.6 billion,
 compared with $5.1 billion in the first quarter of 2000, an increase of 68%.
 Also during the quarter, Radian Insurance Inc., a subsidiary created last year
 to insure non-traditional business, wrote an additional $1.1 billion of new
 insurance.  Primary insurance-in-force grew to $103.4 billion at March 31,
 2001, an increase of 6% from $97.4 billion at March 31, 2000.  Persistency was
 76.9% at March 31, 2001, compared with 78.2% at December 31, 2000 and at
 March 31, 2000.
     Radian's primary delinquency rate was 2.53% at March 31, 2001, compared to
 2.39% at December 31, 2000, and 2.16% at March 31, 2000.  In the quarter,
 direct claims paid were $21.8 million, compared to $21.1 million in the fourth
 quarter of 2000 and $23.3 million in the first quarter of 2000.
     Commenting on the quarter, Radian Chairman and Chief Executive Officer
 Frank P. Filipps said, "In our first quarter as a diversified credit
 enhancement company, Radian achieved record earnings and made significant
 progress toward our strategic goal of becoming a leading provider of risk
 management products and services.  Our earnings growth was fueled by the
 outstanding performance of our core mortgage insurance business, where we
 experienced solid growth in insurance-in-force and revenues.  And consistent
 with our prudent approach to managing risk, Radian maintained the strongest
 reserve level in the mortgage insurance industry.
     "We completed the acquisition of Enhance Financial this quarter, which
 provides us with a dynamic platform for growth and diversification.  In our
 mortgage services businesses, ExpressClose.com registered outstanding volume
 growth and C-BASS contributed significantly to earnings."
     Radian Group Inc. will hold a conference call to discuss the company's
 first quarter results on Thursday, April 26, 2001 at 9:00 a.m. Eastern time.
 The call will be simultaneously webcast, and individuals interested in
 listening may logon at http://www.videonewswire.com/radian/042601.
     Radian Group Inc. is the parent company of Radian Guaranty Inc., Enhance
 Reinsurance Company, Asset Guaranty Insurance Company and ExpressClose.com.
 The company's products and services enable homebuyers to purchase homes more
 quickly and with smaller downpayments; protect lenders against loan default;
 lower the costs of mortgage origination and servicing; and provide insurance
 and reinsurance to investors in corporate, municipal and asset-backed
 securities.
 
     The following is a "Safe Harbor" Statement under the Private Securities
 Litigation Reform Act of 1995:
     The statements contained in this release that are not historical facts are
 forward-looking statements.  Actual results may differ materially from those
 projected in the forward-looking statements.  These forward-looking statements
 involve risks and uncertainties, including but not limited to, the following
 risks: that interest rates may increase rather than remain stable or decrease;
 that housing demand may decrease for any number of reasons, including changes
 in interest rates, adverse economic conditions, or other reasons; that
 Radian's market share may decrease as a result of changes in underwriting
 criteria by Radian or its competitors, or other reasons; and changes in the
 performance of the financial markets, in the demand for and market acceptance
 of Radian products, increased competition from government programs and the use
 of substitutes for mortgage insurance, and in general conditions.  Investors
 are also directed to other risks discussed in documents filed by Radian with
 the Securities and Exchange Commission.
 
 
                       Radian Group Inc. and Subsidiaries
                        Consolidated Statement of Income
 
                                                     Quarter Ended
                                                        March 31
                                            2001                        2000
     (Thousands of dollars, except per-
      share and other data)
 
     Revenues:
     Net premiums written                  160,249                     135,606
 
     Premiums earned                       155,763                     127,297
     Net investment income                  28,020                      18,827
     Gain on sales of investments            1,823                         851
     Equity in net income of affiliates     12,044                           0
     Other income                            6,292                       1,350
 
                                           203,942                     148,325
 
     Expenses:
 
     Provision for losses                   49,272                      38,782
     Policy acquisition costs               17,041                      13,262
     Other operating expenses               23,958                      13,451
     Interest expense                        1,401                           0
 
                                            91,672                      65,495
 
     Pretax income                         112,270                      82,830
     Provision for income taxes            (32,113)                    (24,230)
 
     Net income                             80,157                      58,600
 
     Net income per share                    $1.91                       $1.53
 
     Weighted average shares outstanding
      (in thousands)                        41,519                      37,864
 
 
                       Radian Group Inc. and Subsidiaries
                           Consolidated Balance Sheet
 
                                             March 31 December 31    March 31
     (Thousands of dollars)                    2001       2000         2000
 
     Assets:
     Cash and investments                   2,966,069   1,752,881   1,515,900
     Investments in affiliates                146,603           0           0
     Deferred policy acquisition costs        126,320      70,049      62,952
     Prepaid federal income taxes             287,514     270,250     202,750
     Other assets                             293,857     179,631     115,796
 
          Total assets                      3,820,363   2,272,811   1,897,398
 
 
     Liabilities and stockholders' equity:
     Unearned premiums                        450,843      77,241      63,232
     Reserve for losses                       524,898     390,021     349,966
     Short term debt                          173,724           0           0
     Long term debt                            75,000           0           0
     Deferred federal income taxes            358,932     291,294     232,908
     Other liabilities                        181,647     112,058      82,679
 
        Total liabilities                   1,765,044     870,614     728,785
 
     Preferred stock                           40,000      40,000      40,000
 
     Common stock                                  46          38          37
     Additional paid-in capital             1,124,331     546,995     529,061
     Retained earnings                        868,025     789,831     605,348
     Accumulated other comprehensive
      income (loss)                            22,917      25,333      (5,833)
 
        Total common stockholders' equity   2,015,319   1,362,197   1,128,613
 
          Total liabilities and
           stockholders' equity             3,820,363   2,272,811   1,897,398
 
     Book value per share                      $43.52      $35.93      $30.13
 
 
                               Radian Group Inc.
                        Consolidated Statement of Income
                    Mortgage Insurance and Related Services
 
                                                      Quarter Ended
                                                        March 31
                                            2001                        2000
     (Thousands of dollars, except per-
      share and other data)
 
     Revenues:
     Net premiums written                  150,634                     135,606
 
     Premiums earned                       144,575                     127,297
     Net investment income                  23,130                      18,827
     Gain on sales of investments            1,854                         851
     Other income                            5,878                       1,350
 
                                           175,437                     148,325
 
     Expenses:
 
     Provision for losses                   46,444                      38,782
     Policy acquisition costs               15,128                      13,262
     Other operating expenses               21,641                      13,451
 
                                            83,213                      65,495
 
     Pretax income                          92,224                      82,830
     Provision for income taxes            (26,497)                    (24,230)
 
     Net income                             65,727                      58,600
 
 
                               Radian Group Inc.
                           Consolidated Balance Sheet
                    Mortgage Insurance and Related Services
 
                                            March 31  December 31    March 31
     (Thousands of dollars)                   2001        2000        2000
 
     Assets:
     Cash and investments                   1,852,959   1,752,881   1,515,900
     Deferred policy acquisition costs         72,055      70,049      62,952
     Prepaid federal income taxes             270,250     270,250     202,750
     Other assets                             186,878     179,631     115,796
 
          Total assets                      2,382,142   2,272,811   1,897,398
 
 
     Liabilities and stockholders' equity:
     Unearned premiums                         82,889      77,241      63,232
     Reserve for losses                       412,935     390,021     349,966
     Deferred federal income taxes            336,162     291,294     232,908
     Other liabilities                        101,811     112,058      82,679
 
        Total liabilities                     933,797     870,614     728,785
 
     Preferred stock                           40,000      40,000      40,000
 
     Common stock                                  46          38          37
     Additional paid-in capital               534,309     546,995     529,061
     Retained earnings                        853,595     789,831     605,348
     Accumulated other comprehensive
      income (loss)                            20,395      25,333      (5,833)
 
        Total common stockholders' equity   1,408,345   1,362,197   1,128,613
 
          Total liabilities and
           stockholders' equity             2,382,142   2,272,811   1,897,398
 
 
                               Radian Group Inc.
                  Mortgage Insurance Supplemental Information
                 For the Quarter Ended and As of March 31, 2001
 
                                                   Quarter Ended
                                                     March 31
                                                 2001        2000
 
     Primary new insurance written
      ($millions)                               8,590       5,086
     Radian Insurance new insurance
      written ($millions)                       1,102           0
     Primary risk written ($millions)           2,095       1,281
     Pool risk written ($millions)                 33          90
 
     Direct claims paid                        21,751      23,331
 
     Statutory loss ratio                       33.5%       30.8%
     Statutory expense ratio                    18.6%       17.2%
                                                52.1%       48.0%
 
     Persistency (twelve months ended
      March 31)                                 76.9%       78.2%
 
     Percentage of primary new insurance
      written:
      Monthlies                                   94%         92%
      Refinances                                  36%         13%
      95% LTV and above                           38%         44%
      ARMs                                        15%         19%
 
 
                                             March 31  December 31    March 31
                                                2001        2000        2000
 
     Direct primary insurance in force
      ($millions)                             103,431     100,859      97,383
     Direct primary risk in force
      ($millions)                              25,274      24,622      23,359
     GSE pool risk in force ($millions)         1,177       1,145       1,204
     Total pool risk in force ($millions)       1,518       1,507       1,473
     Radian Insurance risk in force
      ($millions)                                 476         211           0
 
     Primary insurance:
          Prime:
          Number of insured loans             795,299     792,813     791,123
          Number of loans in default           18,610      17,840      16,558
          Percentage of loans in default        2.34%       2.25%       2.09%
 
          Non Prime:
          Number of insured loans              81,952      65,600      38,075
          Number of loans in default            3,609       2,690       1,354
          Percentage of loans in default        4.40%       4.10%       3.56%
 
          Total:
          Number of insured loans             877,251     858,413     829,198
          Number of loans in default           22,219      20,530      17,912
          Percentage of loans in default        2.53%       2.39%       2.16%
 
     Pool insurance:
          Number of insured loans             784,150     768,388     737,618
          Number of loans in default            6,353       5,989       4,834
          Percentage of loans in default        0.81%       0.78%       0.66%
 
     Risk-to-capital ratio                     15.4:1      15.4:1      17.2:1
 
 
                               Radian Group Inc.
                        Consolidated Statement of Income
             Enhance Financial Services Group Inc. and Subsidiaries
 
                                                     Quarter Ended
                                                        March 31
                                                         2001
     (Thousands of dollars, except per-
      share and other data)
 
     Revenues:
     Net premiums written                                 9,615
 
     Premiums earned                                     11,188
     Net investment income                                4,890
     Loss on sales of investments                           (31)
     Equity in net income of affiliates                  12,044
     Other income                                           414
 
                                                         28,505
 
     Expenses:
 
     Provision for losses                                 2,828
     Policy acquisition costs                             1,913
     Other operating expenses                             2,317
     Interest expense                                     1,401
 
                                                          8,459
 
     Pretax income                                       20,046
     Provision for income taxes                          (5,616)
 
     Net income                                          14,430
 
 
                               Radian Group Inc.
                           Consolidated Balance Sheet
             Enhance Financial Services Group Inc. and Subsidiaries
 
                                                   March 31
     (Thousands of dollars)                          2001
 
     Assets:
     Cash and investments                          1,113,110
     Investments in affiliates                       146,603
     Deferred policy acquisition costs                54,265
     Prepaid federal income taxes                     17,264
     Other assets                                    106,979
 
          Total assets                             1,438,221
 
 
     Liabilities and stockholder's equity:
     Unearned premiums                               367,954
     Reserve for losses                              111,963
     Short term debt                                 173,724
     Long term debt                                   75,000
     Deferred federal income taxes                    22,770
     Other liabilities                                79,836
 
        Total liabilities                            831,247
 
 
     Additional paid-in capital                      590,022
     Retained earnings                                14,430
     Accumulated comprehensive income                  2,522
 
        Total common stockholder's equity            606,974
 
          Total liabilities and
           stockholder's equity                    1,438,221
 
 
                               Radian Group Inc.
             Financial Guaranty Insurance Supplemental Information
                 For the Quarter Ended and As of March 31, 2001
 
                                                  Quarter Ended
     (Thousands of dollars,                          March 31
       except ratios)                                  2001
 
     Net Premiums Written:
     Muni direct                                       1,181
     Muni reinsurance                                  1,991
     Non-muni direct                                   2,454
     Non-muni reinsurance                                713
     Trade credit                                      3,276
                                                       9,615
 
     Net Premiums Earned:
     Muni direct                                       2,067
     Muni reinsurance                                  2,130
     Non-muni direct                                   3,129
     Non-muni reinsurance                              1,199
     Trade credit                                      2,663
                                                      11,188
 
 
     Statutory loss ratio                              25.3%
     Statutory expense ratio                           33.5%
                                                       58.8%
 
     Refundings included in earned premium             1,230
 
     Capital and surplus                             289,073
     Contingency reserve                             301,484
          Qualified statutory capital                590,557
 
     Unearned premium reserve                        448,878
     Loss and loss expense reserve                    50,323
          Total policyholders' reserves            1,089,758
 
     Present value of installment premiums           146,596
     Reinsurance and soft capital
      facilities                                      42,500
         Total claims paying resources             1,278,854
 
     Net debt service outstanding                 92,712,783
 
     Capital leverage ratio (1)                          157
     Claims paying leverage ratio (2)                     87
 
 
     (1) Net debt service outstanding divided by qualified statutory capital
     (2) Net debt service outstanding divided by total claims paying resources,
     adjusted for the tax effect on unearned premium reserve and present value
     of installment premiums.
 
 SOURCE  Radian Group Inc.