RADIAN MORTGAGE ASSURANCE INC

Transcription

1 QUARTERLY STATEMENT OF THE RADIAN MORTGAGE ASSURANCE INC 0 4 OF Philadelphia IN THE STATE OF Pennsylvania TO THE INSURANCE DEPARTMENT OF THE STATE OF AS OF MARCH, 04 PROPERTY AND CASUALTY 04

2 * * PROPERTY AND CASUALTY COMPANIES ASSOCIATION EDITION QUARTERLY STATEMENT AS OF MARCH, 04 OF THE CONDITION AND AFFAIRS OF THE RADIAN MORTGAGE ASSURANCE INC NAIC Group Code 00766, NAIC Company Code 087 Employer s ID Number (Current Period) (Prior Period) Organized under the Laws of Pennsylvania, State of Domicile or Port of Entry Pennsylvania Country of Domicile United States Incorporated/Organized 06/8/974 Commenced Business 08/06/974 Statutory Home Office 60 Market Street, Philadelphia, PA, US 90 (Street and Number) (City or Town, State, Country and Zip Code) Main Administrative Office 60 Market Street Philadelphia, PA, US (Street and Number) (City or Town, State, Country and Zip Code) (Area Code) (Telephone Number) Mail Address 60 Market Street, Philadelphia, PA, US 90 (Street and Number or P.O. Box) (City or Town, State, Country and Zip Code) Primary Location of Books and Records 60 Market Street Philadelphia, PA, US (Street and Number) (City or Town, State, Country and Zip Code) (Area Code) (Telephone Number) Internet Web Site Address Statutory Statement Contact Colleen Marie Monti --5 (Name) (Area Code) (Telephone Number) (Extension) RadianCompliance@radian.biz ( Address) (Fax Number) OFFICERS Name Title Name Title Teresa Bryce Bazemore, President Timothy White Hunter, Secretary Carl Robert Quint, EVP/ Chief Financial Officer, OTHER OFFICERS,, DIRECTORS OR TRUSTEES Richard Ian Altman Teresa Bryce Bazemore Zoe Devaney Timothy White Hunter Sanford Alexander Ibrahim Brien Joseph McMahon Carl Robert Quint State of County of Pennsylvania Philadelphia ss The officers of this reporting entity being duly sworn, each depose and say that they are the described officers of said reporting entity, and that on the reporting period stated above, all of the herein described assets were the absolute property of the said reporting entity, free and clear from any liens or claims thereon, except as herein stated, and that this statement, together with related exhibits, schedules and explanations therein contained, annexed or referred to, is a full and true statement of all the assets and liabilities and of the condition and affairs of the said reporting entity as of the reporting period stated above, and of its income and deductions therefrom for the period ended, and have been completed in accordance with the NAIC Annual Statement Instructions and Accounting Practices and Procedures manual except to the extent that: () state law may differ; or, () that state rules or regulations require differences in reporting not related to accounting practices and procedures, according to the best of their information, knowledge and belief, respectively. Furthermore, the scope of this attestation by the described officers also includes the related corresponding electronic filing with the NAIC, when required, that is an exact copy (except for formatting differences due to electronic filing) of the enclosed statement. The electronic filing may be requested by various regulators in lieu of or in addition to the enclosed statement. Teresa Bryce Bazemore Timothy White Hunter Carl Robert Quint President Secretary EVP/ Chief Financial Officer a. Is this an original filing? Yes [X] No [ ] Subscribed and sworn to before me this b. If no: day of May, 04. State the amendment number. Date filed. Number of pages attached Joseph R. Kelly, Notary Public 07/0/05

3 STATEMENT AS OF MARCH, 04 OF THE RADIAN MORTGAGE ASSURANCE INC ASSETS Assets Current Statement Date 4 Nonadmitted Assets Net Admitted Assets (Cols. - ) December Prior Year Net Admitted Assets. Bonds 5,98,859 5,98,859 6,005,40. Stocks:. Preferred stocks. Common stocks. Mortgage loans on real estate:. First liens. Other than first liens 4. Real estate: 4. Properties occupied by the company (less $ encumbrances) 4. Properties held for the production of income (less $ encumbrances) 4. Properties held for sale (less $ encumbrances) 5. Cash ($ 4,664 ), cash equivalents ($ 0,999,707 ) and short-term investments ($ 75,776 ),867,47,867,47,99,0 6. Contract loans (including $ premium notes) 7. Derivatives 8. Other invested assets 9. Receivables for securities 0. Securities lending reinvested collateral assets. Aggregate write-ins for invested assets. Subtotals, cash and invested assets (Lines to ) 7,850,006 7,850,006 7,944,705. Title plants less $ charged off (for Title insurers only) 4. Investment income due and accrued 6,0 6,0 56,40 5. Premiums and considerations: 5. Uncollected premiums and agents balances in the course of collection 5. Deferred premiums, agents balances and installments booked but deferred and not yet due (including $ but unbilled premiums) 5. Accrued retrospective premiums 6. Reinsurance: 6. Amounts recoverable from reinsurers 6. Funds held by or deposited with reinsured companies 6. Other amounts receivable under reinsurance contracts 7. Amounts receivable relating to uninsured plans earned 8. Current federal and foreign income tax recoverable and interest thereon 8. Net deferred tax asset,9,9 9. Guaranty funds receivable or on deposit 0. Electronic data processing equipment and software. Furniture and equipment, including health care delivery assets ($ ). Net adjustment in assets and liabilities due to foreign exchange rates. Receivables from parent, subsidiaries and affiliates 4. Health care ($ ) and other amounts receivable 5. Aggregate write-ins for other-than-invested assets 6,550 6, Total assets excluding Separate Accounts, Segregated Accounts and Protected Cell Accounts (Lines to 5) 7,885,69 8,84 7,876,6 8,00,5 7. From Separate Accounts, Segregated Accounts and Protected Cell Accounts 8. Total (Lines 6 and 7) 7,885,69 8,84 7,876,6 8,00, DETAILS OF WRITE-INS 98. Summary of remaining write-ins for Line from overflow page 99. Totals (Lines 0 through 0 plus 98) (Line above) 50. Prepaid expenses 6,550 6, Summary of remaining write-ins for Line 5 from overflow page 599. Totals (Lines 50 through 50 plus 598) (Line 5 above) 6,550 6,550

4 STATEMENT AS OF MARCH, 04 OF THE RADIAN MORTGAGE ASSURANCE INC LIABILITIES, SURPLUS AND OTHER FUNDS Current Statement Date. Losses (current accident year $ ). Reinsurance payable on paid losses and loss adjustment expenses. Loss adjustment expenses 4. Commissions payable, contingent commissions and other similar charges December, Prior Year 5. Other expenses (excluding taxes, licenses and fees) Taxes, licenses and fees (excluding federal and foreign income taxes),668 4,487 7.Current federal and foreign income taxes (including $ on realized capital gains (losses)) 7. Net deferred tax liability 8. Borrowed money $ and interest thereon $ 9. Unearned premiums (after deducting unearned premiums for ceded reinsurance of $ and including warranty reserves of $ and accrued accident and health experience rating refunds including $ for medical loss ratio rebate per the Public Health Service Act) 0. Advance premium. Dividends declared and unpaid:. Stockholders. Policyholders. Ceded reinsurance premiums payable (net of ceding commissions). Funds held by company under reinsurance treaties 4. Amounts withheld or retained by company for account of others 5. Remittances and items not allocated 6. Provision for reinsurance (including $ certified) 7. Net adjustments in assets and liabilities due to foreign exchange rates 8. Drafts outstanding 9. Payable to parent, subsidiaries and affiliates 5,86 5,64 0. Derivatives. Payable for securities. Payable for securities lending. Liability for amounts held under uninsured plans 4. Capital notes $ and interest thereon $ 5. Aggregate write-ins for liabilities 6. Total liabilities excluding protected cell liabilities (Lines through 5) 56,59 0, Protected cell liabilities 8. Total liabilities (Lines 6 and 7) 56,59 0, Aggregate write-ins for special surplus funds 0. Common capital stock 5,65,456 5,65,456. Preferred capital stock. Aggregate write-ins for other than special surplus funds. Surplus notes 4. Gross paid in and contributed surplus 8,687,46 8,687,46 5. Unassigned funds (surplus) 6. Less treasury stock, at cost: (6,9,64) (6,0,967) 6. 07, shares common (value included in Line 0 $,666 ) 0,00,6 0,00,6 6. shares preferred (value included in Line $ ) 7. Surplus as regards policyholders (Lines 9 to 5, less 6) 7,89,75 7,980, Totals (Page, Line 8, Col. ) 7,876,6 8,00, DETAILS OF WRITE-INS 598. Summary of remaining write-ins for Line 5 from overflow page 599. Totals (Lines 50 through 50 plus 598) (Line 5 above) Summary of remaining write-ins for Line 9 from overflow page 999. Totals (Lines 90 through 90 plus 998) (Line 9 above) Summary of remaining write-ins for Line from overflow page 99. Totals (Lines 0 through 0 plus 98) (Line above)

5 STATEMENT AS OF MARCH, 04 OF THE RADIAN MORTGAGE ASSURANCE INC STATEMENT OF INCOME Current Year to Date Prior Year to Date Prior Year Ended December UNDERWRITING INCOME. Premiums earned:. Direct (written $ ). Assumed (written $ ). Ceded (written $ ).4 Net (written $ ) DEDUCTIONS:. Losses incurred (current accident year $ ):. Direct. Assumed. Ceded.4 Net. Loss adjustment expenses incurred 4. Other underwriting expenses incurred 88,59 0,79 5,00 5. Aggregate write-ins for underwriting deductions 6. Total underwriting deductions (Lines through 5) 88,59 0,79 5,00 7. Net income of protected cells 8. Net underwriting gain (loss) (Line minus Line 6 + Line 7) (88,59) (0,79) (5,00) INVESTMENT INCOME 9. Net investment income earned 8,05 4,908,96 0. Net realized capital gains (losses) less capital gains tax of $ 5,65. Net investment gain (loss) (Lines 9 + 0) 8,05 4,908 49,56 OTHER INCOME. Net gain or (loss) from agents' or premium balances charged off (amount recovered $ amount charged off $ ). Finance and service charges not included in premiums 4. Aggregate write-ins for miscellaneous income 5. Total other income (Lines through 4) 6. Net income before dividends to policyholders, after capital gains tax and before all other federal and foreign income taxes (Lines ) (80,4) (98,7) (48,59) 7. Dividends to policyholders 8. Net income, after dividends to policyholders, after capital gains tax and before all other federal and foreign income taxes (Line 6 minus Line 7) (80,4) (98,7) (48,59) 9. Federal and foreign income taxes incurred 5,65 0. Net income (Line 8 minus Line 9)(to Line ) (80,4) (98,7) (497,74) CAPITAL AND SURPLUS ACCOUNT. Surplus as regards policyholders, December prior year 7,980,409 8,477,58 8,477,58. Net income (from Line 0) (80,4) (98,7) (497,74). Net transfers (to) from Protected Cell accounts 4. Change in net unrealized capital gains or (losses) less capital gains tax of $ 5. Change in net unrealized foreign exchange capital gain (loss) 6. Change in net deferred income tax (6,877) (6,877) 7. Change in nonadmitted assets 6,57 6,57 8. Change in provision for reinsurance 9. Change in surplus notes 0. Surplus (contributed to) withdrawn from protected cells. Cumulative effect of changes in accounting principles. Capital changes:. Paid in. Transferred from surplus (Stock Dividend). Transferred to surplus. Surplus adjustments:. Paid in. Transferred to capital (Stock Dividend). Transferred from capital 4. Net remittances from or (to) Home Office 5. Dividends to stockholders 6. Change in treasury stock 7. Aggregate write-ins for gains and losses in surplus 8. Change in surplus as regards policyholders (Lines through 7) (60,674) (78,6) (497,74) 9. Surplus as regards policyholders, as of statement date (Lines plus 8) 7,89,75 8,98,96 7,980,409 DETAILS OF WRITE-INS Summary of remaining write-ins for Line 5 from overflow page TOTALS (Lines 050 through 050 plus 0598) (Line 5 above) Summary of remaining write-ins for Line 4 from overflow page 499. TOTALS (Lines 40 through 40 plus 498) (Line 4 above) Summary of remaining write-ins for Line 7 from overflow page 799. TOTALS (Lines 70 through 70 plus 798) (Line 7 above) 4

6 STATEMENT AS OF MARCH, 04 OF THE RADIAN MORTGAGE ASSURANCE INC CASH FLOW Current Year To Date Prior Year To Date Prior Year Ended December Cash from Operations. Premiums collected net of reinsurance. Net investment income 60,669 6, 9,584. Miscellaneous income 4. Total (Lines to ) 60,669 6, 9, Benefit and loss related payments 6. Net transfers to Separate Accounts, Segregated Accounts and Protected Cell Accounts 7. Commissions, expenses paid and aggregate write-ins for deductions 90,8 98,86 6,8 8. Dividends paid to policyholders 9. Federal and foreign income taxes paid (recovered) net of $ tax on capital gains (losses) 0. Total (Lines 5 through 9) 90,8 98,86 6,8. Net cash from operations (Line 4 minus Line 0) (9,549) (6,64) (49,544) Cash from Investments. Proceeds from investments sold, matured or repaid:. Bonds. Stocks. Mortgage loans.4 Real estate.5 Other invested assets.6 Net gains or (losses) on cash, cash equivalents and short-term investments.7 Miscellaneous proceeds.8 Total investment proceeds (Lines. to.7). Cost of investments acquired (long-term only):. Bonds. Stocks. Mortgage loans.4 Real estate.5 Other invested assets.6 Miscellaneous applications.7 Total investments acquired (Lines. to.6) 4. Net increase (or decrease) in contract loans and premium notes 5. Net cash from investments (Line.8 minus Line.7 and Line 4) Cash from Financing and Miscellaneous Sources 6. Cash provided (applied): 6. Surplus notes, capital notes 6. Capital and paid in surplus, less treasury stock 6. Borrowed funds 6.4 Net deposits on deposit-type contracts and other insurance liabilities 6.5 Dividends to stockholders 6.6 Other cash provided (applied) 57,95 59,469 (,48) 7. Net cash from financing and miscellaneous sources (Line 6. through Line 6.4 minus Line 6.5 plus Line 6.6) 57,95 59,469 (,48) RECONCILIATION OF CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS 8. Net change in cash, cash equivalents and short-term investments (Line, plus Lines 5 and 7) (7,54) (76,695) (494,69) 9. Cash, cash equivalents and short-term investments: 9. Beginning of year,99,0,4,99,4,99 9. End of period (Line 8 plus Line 9.),867,47,57,98,99,0 5

7 STATEMENT AS OF MARCH, 04 OF THE RADIAN MORTGAGE ASSURANCE INC. NOTES TO FINANCIAL STATEMENTS. Summary of Significant Accounting Policies A. The financial statements of Radian Mortgage Assurance Inc. ("the Company") are presented on the basis of accounting practices prescribed or permitted by the Pennsylvania Department of Insurance and the NAIC Accounting Practices and Procedures manuals. B. The Preparation of Financial Statements No change. C. Accounting Policies No change.. Accounting Changes and Correction of Errors None.. Business Combinations and Goodwill None. 4. Discontinued Operations None. 5. Investments A. Mortgage Loans None. B. Debt Restructuring None. C. Reverse Mortgages None. D. Loan-Backed Securities None. E. Repurchase Agreements and/or Securities Lending Transactions None. F. Real Estate None. G. Low Income Housing Investments None. H. Restricted Assets No significant change. I. Working Capital Financial Investments None. 6. Joint Ventures, Partnerships and Limited Liability Companies None. 7. Investment Income No significant change. 8. Derivative Instruments None. 9. Income Taxes No significant change. 0. Information Concerning Parent, Subsidiaries, Affiliates and Other Related Parties. A., B. & C. Material Related Party Transactions None. D. Intercompany receivable and payables - At March, 04, the Company had a payable of $5,86 related to intercompany operations. E. Guarantees and Undertakings No significant change F. Material Management or Service Contracts No change. G. Control Relationship No change. H. Upstream Intermediate Entity None. I. Investments in SCAs None. J. Investments in Impaired SCAs None. K. Investments in Foreign insurance subsidiary None. L. Investments in downstream non-insurance holding company None.. Debt None.. Retirement Plans, Deferred Compensation, Post employment Benefits and Compensated Absences and Other Postretirement Benefit Plans None.. Capital and Surplus and Shareholders' Dividend Restrictions and Quasi-Reorganizations No Significant Change. 4. Contingencies A. Contingent Commitments No significant change. B. Assessments None. C. Gain Contingencies None. D. Claims Related Extra Contractual Obligation and Bad Faith Losses Stemming from Lawsuits None. E. Product Warranties None. F. All Other Contingencies None. 5. Leases None. 6. Information About financial Instruments with Off-Balance Sheet Risk and Financial Instruments with Concentrations of Credit Risk None. 7. Sale, Transfer and Servicing of Financial Assets and Extinguishments of Liabilities - None 8. Gain or Loss to the Reporting Entity from Uninsured A & H Plans and the Uninsured Portion of Partially Insured Plans - None 9. Direct Premium Written by Managing General Agents/Third Party Administrators - None 0. Fair Value Measurement A. () Fair Value Measurements at Reporting Date None. () Fair Value Measurements in Level None. () Transfers between levels are recognized as of the end of the quarter in which the transfer occurs. (4) There were no fair valued securities within level. (5) There are no derivative assets or liabilities. B. Comparison to New Pronouncements Not Applicable. 6

8 STATEMENT AS OF MARCH, 04 OF THE RADIAN MORTGAGE ASSURANCE INC. NOTES TO FINANCIAL STATEMENTS C. Aggregate Fair Value Hierarchy Not As of March, 04 Practicable Aggregate Admitted Carrying Type of Financial Instrument Fair Value Assets Level Level Level Value Bonds $ 5,94,860 $ 5,98,857 $ - $ 5,94,860 $ - $ - Short term 75,777 75,777 75, Cash Equivalents 0,999,868 0,999,707 0,999, $ 7,640,505 $ 7,708,4 $,75,645 $ 5,94,860 $ - $ - Not As of December, 0 Practicable Aggregate Admitted Carrying Type of Financial Instrument Fair Value Assets Level Level Level Value Bonds $ 5,99,9 $ 6,005,40 $ - $ 5,99,9 $ - $ - Short term 86,609 86,609 86, Cash Equivalents 0,999,978 0,999,998 0,999, $ 7,79,59 $ 7,867,009 $,86,587 $ 5,99,9 $ - $ - D. Not Practicable to Estimate Fair Value None.. Other Items A. Extraordinary Items None. B. Troubled Debt Restructuring None. C. Other Disclosures and Unusual Items None. D. Business Interruption Insurance Recoveries None. E. State Transferable and Non-Transferable Tax Credits None. F. Subprime Mortgage Related Risk Exposure None. G. Offsetting and Netting of Assets and Liabilities None.. Events Subsequent None.. Reinsurance A. Unsecured Reinsurance Recoverables None. B. Reinsurance Recoverable in Dispute None. C. Reinsurance Assumed and Ceded None. D. Uncollectible Reinsurance None. E. Commutation of Ceded Reinsurance None. F. Retroactive Reinsurance None. G. Reinsurance Accounted for as a Deposit None. H. Disclosures for the Transfer of Property and Casualty Run-off Agreements None. I. Certified Reinsurer Downgraded or Status Subject to Revocation None. 4. Retrospectively Rated Contracts None. 5. Change in Incurred Losses and Loss Adjustment Expenses None. 6. Intercompany Pooling Agreements None. 7. Structured Settlements None. 8. Health Care Receivables None. 9. Participating Policies None. 0. Premium Deficiency Reserves None.. High Deductibles None.. Discounting of Liabilities for Unpaid Losses or Unpaid Loss Adjustment Expenses None.. Asbestos/Environmental Reserves None. 4. Subscriber Savings Account None. 5. Multiple Peril Crop Insurance None. 6. Financial Guaranty Insurance None. 6.

9 STATEMENT AS OF MARCH, 04 OF THE RADIAN MORTGAGE ASSURANCE INC GENERAL INTERROGATORIES PART - COMMON INTERROGATORIES GENERAL. Did the reporting entity experience any material transactions requiring the filing of Disclosure of Material Transactions with the State of Domicile, as required by the Model Act? Yes [ ] No [X]. If yes, has the report been filed with the domiciliary state? Yes [ ] No [ ]. Has any change been made during the year of this statement in the charter, by-laws, articles of incorporation, or deed of settlement of the reporting entity? Yes [ ] No [X]. If yes, date of change:. Is the reporting entity a member of an Insurance Holding Company System consisting of two or more affiliated persons, one or more of which is an insurer? Yes [X] No [ ] If yes, complete Schedule Y, Parts and A.. Have there been any substantial changes in the organizational chart since the prior quarter end? Yes [ ] No [X]. If the response to. is yes, provide a brief description of those changes. 4. Has the reporting entity been a party to a merger or consolidation during the period covered by this statement? Yes [ ] No [X] 4. If yes, provide the name of entity, NAIC Company Code, and state of domicile (use two letter state abbreviation) for any entity that has ceased to exist as a result of the merger or consolidation. Name of Entity NAIC Company Code State of Domicile 5. If the reporting entity is subject to a management agreement, including third-party administrator(s), managing general agent(s), attorney-infact, or similar agreement, have there been any significant changes regarding the terms of the agreement or principals involved? If yes, attach an explanation. Yes [ ] No [ ] NA [X] 6. State as of what date the latest financial examination of the reporting entity was made or is being made. //0 6. State the as of date that the latest financial examination report became available from either the state of domicile or the reporting entity. This date should be the date of the examined balance sheet and not the date the report was completed or released. // State as of what date the latest financial examination report became available to other states or the public from either the state of domicile or the reporting entity. This is the release date or completion date of the examination report and not the date of the examination (balance sheet date). 05/5/0 6.4 By what department or departments? Pennsylvania Department of Insurance & Illinois Department of Insurance. 6.5 Have all financial statement adjustments within the latest financial examination report been accounted for in a subsequent financial statement filed with Departments? Yes [X] No [ ] NA [ ] 6.6 Have all of the recommendations within the latest financial examination report been complied with? Yes [X] No [ ] NA [ ] 7. Has this reporting entity had any Certificates of Authority, licenses or registrations (including corporate registration, if applicable) suspended or revoked by any governmental entity during the reporting period? Yes [ ] No [X] 7. If yes, give full information: 8. Is the company a subsidiary of a bank holding company regulated by the Federal Reserve Board? Yes [ ] No [X] 8. If response to 8. is yes, please identify the name of the bank holding company. 8. Is the company affiliated with one or more banks, thrifts or securities firms? Yes [ ] No [X] 8.4 If response to 8. is yes, please provide below the names and location (city and state of the main office) of any affiliates regulated by a federal regulatory services agency [i.e. the Federal Reserve Board (FRB), the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC) and the Securities Exchange Commission (SEC)] and identify the affiliate s primary federal regulator.] Affiliate Name Location (City, State) FRB 4 OCC 5 FDIC 6 SEC 7

10 STATEMENT AS OF MARCH, 04 OF THE RADIAN MORTGAGE ASSURANCE INC GENERAL INTERROGATORIES 9. Are the senior officers (principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions) of the reporting entity subject to a code of ethics, which includes the following standards? Yes [X] No [ ] (a) Honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships; (b) Full, fair, accurate, timely and understandable disclosure in the periodic reports required to be filed by the reporting entity; (c) Compliance with applicable governmental laws, rules and regulations; (d) The prompt internal reporting of violations to an appropriate person or persons identified in the code; and (e) Accountability for adherence to the code. 9. If the response to 9. is No, please explain: 9. Has the code of ethics for senior managers been amended? Yes [ ] No [X] 9. If the response to 9. is Yes, provide information related to amendment(s). 9. Have any provisions of the code of ethics been waived for any of the specified officers? Yes [ ] No [X] 9. If the response to 9. is Yes, provide the nature of any waiver(s). FINANCIAL 0. Does the reporting entity report any amounts due from parent, subsidiaries or affiliates on Page of this statement? Yes [ ] No [X] 0. If yes, indicate any amounts receivable from parent included in the Page amount: $ INVESTMENT. Were any of the stocks, bonds, or other assets of the reporting entity loaned, placed under option agreement, or otherwise made available for use by another person? (Exclude securities under securities lending agreements.) Yes [ ] No [X]. If yes, give full and complete information relating thereto:. Amount of real estate and mortgages held in other invested assets in Schedule BA: $. Amount of real estate and mortgages held in short-term investments: $ 4. Does the reporting entity have any investments in parent, subsidiaries and affiliates? Yes [ ] No [X] 4. If yes, please complete the following: Prior Year-End Book/Adjusted Carrying Value 4. Bonds $ $ 4. Preferred Stock $ $ 4. Common Stock $ $ 4.4 Short-Term Investments $ $ 4.5 Mortgage Loans on Real Estate $ $ 4.6 All Other $ $ 4.7 Total Investment in Parent, Subsidiaries and Affiliates (Subtotal Lines 4. to 4.6) $ $ 4.8 Total Investment in Parent included in Lines 4. to 4.6 above $ $ Current Quarter Book/Adjusted Carrying Value 5. Has the reporting entity entered into any hedging transactions reported on Schedule DB? Yes [ ] No [X] 5. If yes, has a comprehensive description of the hedging program been made available to the domiciliary state? Yes [ ] No [ ] If no, attach a description with this statement. 7.

11 STATEMENT AS OF MARCH, 04 OF THE RADIAN MORTGAGE ASSURANCE INC GENERAL INTERROGATORIES 6 For the reporting entity s security lending program, state the amount of the following as of the current statement date: 6. Total fair value of reinvested collateral assets reported on Schedule DL, Parts and $ 6. Total book adjusted/carrying value of reinvested collateral assets reported on Schedule DL, Parts and $ 6. Total payable for securities lending reported on the liability page $ 7. Excluding items in Schedule E Part Special Deposits, real estate, mortgage loans and investments held physically in the reporting entity s offices, vaults or safety deposit boxes, were all stocks, bonds and other securities, owned throughout the current year held pursuant to a custodial agreement with a qualified bank or trust company in accordance with Section, III General Examination Considerations, F. Outsourcing of Critical Functions, Custodial or Safekeeping Agreements of the NAIC Financial Condition Examiners Handbook? Yes [X] No [ ] 7. For all agreements that comply with the requirements of the NAIC Financial Condition Examiners Handbook, complete the following: Name of Custodian(s) Custodian Address The Northern Trust Company 50 LaSalle Street, Chicago, IL For all agreements that do not comply with the requirements of the NAIC Financial Condition Examiners Handbook, provide the name, location and a complete explanation: Name(s) Location(s) Complete Explanation(s) 7. Have there been any changes, including name changes, in the custodian(s) identified in 7. during the current quarter? Yes [ ] No [X] 7.4 If yes, give full and complete information relating thereto: Old Custodian New Custodian Date of Change 4 Reason 7.5 Identify all investment advisors, broker/dealers or individuals acting on behalf of broker/dealers that have access to the investment accounts, handle securities and have authority to make investments on behalf of the reporting entity: Central Registration Depository Name(s) Address 8. Have all the filing requirements of the Purposes and Procedures Manual of the NAIC Securities Valuation Office been followed? Yes [X] No [ ] 8. If no, list exceptions: 7.

12 STATEMENT AS OF MARCH, 04 OF THE RADIAN MORTGAGE ASSURANCE INC GENERAL INTERROGATORIES PART - PROPERTY & CASUALTY INTERROGATORIES. If the reporting entity is a member of a pooling arrangement, did the agreement or the reporting entity's participation change? Yes [ ] No [ ] NA [X] If yes, attach an explanation.. Has the reporting entity reinsured any risk with any other reporting entity and agreed to release such entity from liability, in whole or in part, from any loss that may occur on the risk, or portion thereof, reinsured? Yes [ ] No [X] If yes, attach an explanation.. Have any of the reporting entity's primary reinsurance contracts been canceled? Yes [ ] No [X]. If yes, give full and complete information thereto. 4. Are any of the liabilities for unpaid losses and loss adjustment expenses other than certain workers' compensation tabular reserves (see Annual Statement Instructions pertaining to disclosure of discounting for definition of tabular reserves, ) discounted at a rate of interest greater than zero? Yes [ ] No [X] 4. If yes, complete the following schedule: Line of Business Maximum Interest Discount Rate 4 Unpaid Losses TOTAL DISCOUNT 5 6 Unpaid LAE IBNR 7 TOTAL DISCOUNT TAKEN DURING PERIOD Unpaid Unpaid Losses LAE IBNR TOTAL TOTAL 5. Operating Percentages: 5. A&H loss percent % 5. A&H cost containment percent % 5. A&H expense percent excluding cost containment expenses % 6. Do you act as a custodian for health savings accounts? Yes [ ] No [X] 6. If yes, please provide the amount of custodial funds held as of the reporting date. $ 6. Do you act as an administrator for health savings accounts? Yes [ ] No [X] 6.4 If yes, please provide the balance of the funds administered as of the reporting date. $ 8

13 STATEMENT AS OF MARCH, 04 OF THE RADIAN MORTGAGE ASSURANCE INC NAIC Company Code ID Number Name of Reinsurer SCHEDULE F - CEDED REINSURANCE Showing All New Reinsurance Treaties - Current Year to Date 4 Domiciliary Jurisdiction Type of Reinsurer 5 6 Certified Reinsurer Rating ( through 6) 7 Effective Date of Certified Reinsurer Rating 9

14 STATEMENT AS OF MARCH, 04 OF THE RADIAN MORTGAGE ASSURANCE INC Active States, etc. Status. Alabama AL L. Alaska AK L. Arizona AZ L 4. Arkansas AR L 5. California CA L 6. Colorado CO L 7. Connecticut CT L 8. Delaware DE L 9. Dist. Columbia DC L 0. Florida FL L. Georgia GA L. Hawaii HI L. Idaho ID L 4. Illinois IL L 5. Indiana IN L 6. Iowa IA L 7. Kansas KS L 8. Kentucky KY L 9. Louisiana LA L 0. Maine ME L. Maryland MD L. Massachusetts MA L. Michigan MI L 4. Minnesota MN L 5. Mississippi MS L 6. Missouri MO L 7. Montana MT L 8. Nebraska NE L 9. Nevada NV L 0. New Hampshire NH L. New Jersey NJ L. New Mexico NM L. New York NY L 4. No. Carolina NC Q 5. No. Dakota ND L 6. Ohio OH L 7. Oklahoma OK L 8. Oregon OR L 9. Pennsylvania PA L 40. Rhode Island RI E 4. So. Carolina SC L 4. So. Dakota SD L 4. Tennessee TN L 44. Texas TX L 45. Utah UT L 46. Vermont VT L 47. Virginia VA L 48. Washington WA L 49. West Virginia WV L 50. Wisconsin WI L 5. Wyoming WY L 5. American Samoa AS N 5. Guam GU N 54. Puerto Rico PR N 55. U.S. Virgin Islands VI N 56. Northern Mariana Islands MP N 57. Canada CAN N 58. Aggregate Other Alien OT XXX 59. Totals (a) 49 DETAILS OF WRITE-INS XXX XXX XXX Summary of remaining writeins for Line 58 from overflow page XXX TOTALS (Lines 5800 through 5800 plus 58998) (Line 58 above) SCHEDULE T - EXHIBIT OF PREMIUMS WRITTEN Current Year to Date - Allocated by States and Territories Direct Premiums Written Direct Losses Paid (Deducting Salvage) Direct Losses Unpaid XXX Current Year To Date Prior Year To Date Current Year To Date Prior Year To Date Current Year To Date Prior Year To Date (L) Licensed or Chartered - Licensed Insurance Carrier or Domiciled RRG; (R) Registered - Non-domiciled RRGs; (Q) Qualified - Qualified or Accredited Reinsurer; (E) Eligible - Reporting Entities eligible or approved to write Surplus Lines in the state; (N) None of the above - Not allowed to write business in the state. (a) Insert the number of L responses except for Canada and Other Alien. 0

15 STATEMENT AS OF MARCH, 04 OF THE RADIAN MORTGAGE ASSURANCE INC SCHEDULE Y - INFORMATION CONCERNING ACTIVITIES OF INSURER MEMBERS OF A HOLDING COMPANY GROUP PART - ORGANIZATIONAL CHART Inc. (Delaware) ( RDN ) EIN Radian Mortgage Reinsurance Co. (Vermont Ins.) 00% owned by RDN EIN NAIC #47 Radian Guaranty Inc. ( RGI ) (Pennsylvania Ins.) 00% owned by RDN EIN -080 NAIC #790 RDN Investments, Inc. (Delaware) 00% owned by RDN EIN Enhance Financial Services Group Inc. (EFSG) (New York) 00% owned by RDN EIN -448 Radian MI Services, Inc. ( RMIS ) (Pennsylvania) 00% owned by RDN EIN Radian Asset Assurance Inc. ( RAA ) (New York Ins.) 00% owned by RGI EIN NAIC #650 Radian Insurance Inc. (Pennslyvania Ins.) 00% owned by RGI EIN NAIC #070 Radian Mortgage Insurance Inc. (Pennsylvania Ins.) 00% owned by RGI EIN NAIC #944 Radian Mortgage Services (Hong Kong) Ltd. (Hong Kong Corporation) 00% owned by RGI Radian Mortgage Assurance Inc (Pennsylvania Ins) 00% owned by RGI EIN NAIC #087 Radian Services LLC (Delaware) 00% Owned by RGI EIN Radian Investor Surety Inc. (Pennsylvania) 00% owned by RMIS EIN Radian Insurance Services LLC (Pennsylvania) 00% owned by RMIS EIN Radian Advisors LLC (Pennsylvania) 00% owned by RMIS EIN Van-American Insurance Agency, Inc. (South Carolina Corp.) 00% owned by RAA EIN SAFCO SPC Finance Corp. (Delaware) 00% owned by EFSG EIN Radian Guaranty Reinsurance Inc. ("RGRI") (Pennsylvania Ins.) 00% Owned by EFSG EIN NAIC #5909 Lottery Receivables Series 998A Corp (Delaware Corporation) 00% Owned by EFSG EIN EFS-AGIC Master Business Trust (Delaware Business Series Trust) EFSG 00% beneficiary EIN -448 AE Global Holdings LLC (Delaware Limited Liability Company) 50% owned by EFSG EIN Enhance C-BASS Residual Finance Corporation ( ERFC ) (Delaware Corporation) 00% owned by RGRI EIN -405 Residual Interest Investments LP (Delaware limited partnership) 0.8% owned by ERFC (GP) 99.% owned by RGRI (LP) EIN

16 STATEMENT AS OF MARCH, 04 OF THE RADIAN MORTGAGE ASSURANCE INC SCHEDULE Y PART A DETAIL OF INSURANCE HOLDING COMPANY SYSTEM Group Code Group Name NAIC Company Code 4 Federal ID Number 5 Federal RSSD 6 CIK 7 Name of Securities Exchange if Publicly Traded (U.S. or International) 8 Name of Parent Subsidiaries or Affiliates 9 Domiciliary Location 0 Relationship to Reporting Entity New York Stock Exchange Inc. DE UIP Directly Controlled by (Name of Entity/Person) Type of Control (Ownership, Board, Management, Attorney-in-Fact, Influence, Other) Radian Guaranty Inc. & Affil Radian Mortg. Reinsurance Co VT IA Inc. Ownership 00.0 Inc Radian Guaranty Inc. & Affil Radian Guaranty Inc. PA UDP Inc. Ownership 00.0 Inc. Enhance Financial Services Group Inc. NY NIA Inc. Ownership 00.0 Inc Radian Mi Services Inc. PA NIA Inc. Ownership 00.0 Inc Radian Guaranty Inc. & Affil Radian Insurance Inc. PA IA Radian Guaranty Inc. Ownership 00.0 Inc Radian Services LLC DE NIA Radian Guaranty Inc. Ownership 00.0 Inc Radian Guaranty Inc. & Affil Radian Mortgage Ins Inc. PA IA Radian Guaranty Inc. Ownership 00.0 Inc Radian Guaranty Inc. & Affil Radian Mortgage Assurance Inc. PA RE Radian Guaranty Inc. Ownership 00.0 Inc Radian Insurance Services LLC PA NIA Radian Mi Services Inc. Ownership 00.0 Inc Radian Guaranty Inc. & Affil Radian Asset Assurance Inc. NY IA Radian Guaranty Inc. Ownership 00.0 Inc. Radian Mortgage Services (Hong Kong) Ltd HKG NIA Radian Guaranty Inc. Ownership 00.0 Inc. Van-American Insurance Agency Inc. SC NIA Radian Asset Assurance Inc. Ownership 00.0 Inc. Radian Guaranty Reinsurance Enhance Financial Services Radian Guaranty Inc. & Affil Inc. PA IA Group Inc. Ownership 00.0 Inc. Enhance C-Bass Residual Finance Radian Guaranty Reinsurance Corp. DE NIA Inc. Ownership 00.0 Inc. Residual Interest Investments Enhance C-Bass Residual LP DE NIA Finance Corp Ownership 0.8 Inc. Residual Interest Investments Radian Guaranty Reinsurance LP DE NIA Inc. Ownership 99. Inc. Enhance Financial Services EFS-AGIC Master Business Trust DE OTH Group Inc. Influence, Other Inc. Lottery Receivables Series Enhance Financial Services A Corp. DE NIA Group Inc. Ownership 00.0 Inc. Enhance Financial Services AE Global Holdings, LLC DE NIA Group Inc. Ownership 50.0 Inc. Enhance Financial Services SAFCO SPC Finance Corp. DE NIA Group Inc. Ownership 00.0 Inc RDN Investments, Inc. DE NIA Inc. Ownership 00.0 Inc Radian Advisors LLC PA NIA Radian MI Services Inc. Ownership 00.0 Inc Radian Investor Surety Inc. PA NIA Radian MI Services Inc. Ownership 00.0 Inc. If Control is Ownership Provide Percentage 4 Ultimate Controlling Entity(ies)/ Person(s) 5 *

17 STATEMENT AS OF MARCH, 04 OF THE RADIAN MORTGAGE ASSURANCE INC SCHEDULE Y PART A DETAIL OF INSURANCE HOLDING COMPANY SYSTEM Asterisk Explanation ENHANCE FINANCIAL SERVICES GROUP INC, A NON INSURANCE AFFILIATE OF THE REPORTING ENTITY, IS A 00% BENEFICIARY OF THE EFS-AGIC MASTER BUSINESS TRUST.

18 STATEMENT AS OF MARCH, 04 OF THE RADIAN MORTGAGE ASSURANCE INC PART - LOSS EXPERIENCE Direct Premiums Earned Current Year to Date 4 Prior Year to Direct Losses Direct Loss Date Direct Loss Incurred Percentage Percentage Line of Business. Fire. Allied lines. Farmowners multiple peril 4. Homeowners multiple peril 5. Commercial multiple peril 6. Mortgage guaranty 8. Ocean marine 9. Inland marine 0. Financial guaranty. Medical professional liability -occurrence. Medical professional liability -claims made. Earthquake. Group accident and health 4. Credit accident and health 5. Other accident and health 6. Workers compensation 7. Other liability occurrence 7. Other liability-claims made 7. Excess Workers Compensation 8. Products liability-occurrence 8. Products liability-claims made 9.,9. Private passenger auto liability 9.,9.4 Commercial auto liability. Auto physical damage. Aircraft (all perils). Fidelity 4. Surety 6. Burglary and theft 7. Boiler and machinery 8. Credit 9. International 0. Warranty. Reinsurance - Nonproportional Assumed Property XXX XXX XXX XXX. Reinsurance - Nonproportional Assumed Liability XXX XXX XXX XXX. Reinsurance - Nonproportional Assumed Financial Lines XXX XXX XXX XXX 4. Aggregate write-ins for other lines of business 5. TOTALS DETAILS OF WRITE-INS Sum. of remaining write-ins for Line 4 from overflow page 499. Totals (Lines 40 through 40 plus 498) (Line 4) PART - DIRECT PREMIUMS WRITTEN Current Quarter Current Year to Date Prior Year Year to Date Line of Business. Fire. Allied lines. Farmowners multiple peril 4. Homeowners multiple peril 5. Commercial multiple peril 6. Mortgage guaranty 8. Ocean marine 9. Inland marine 0. Financial guaranty. Medical professional liability-occurrence. Medical professional liability-claims made. Earthquake. Group accident and health 4. Credit accident and health 5. Other accident and health 6. Workers compensation 7. Other liability occurrence 7. Other liability-claims made 7. Excess Workers Compensation 8. Products liability-occurrence 8. Products liability-claims made 9.,9. Private passenger auto liability 9.,9.4 Commercial auto liability. Auto physical damage. Aircraft (all perils). Fidelity 4. Surety 6. Burglary and theft 7. Boiler and machinery 8. Credit 9. International 0. Warranty. Reinsurance - Nonproportional Assumed Property XXX XXX XXX. Reinsurance - Nonproportional Assumed Liability XXX XXX XXX. Reinsurance - Nonproportional Assumed Financial Lines XXX XXX XXX 4. Aggregate write-ins for other lines of business 5. TOTALS DETAILS OF WRITE-INS Sum. of remaining write-ins for Line 4 from overflow page 499. Totals (Lines 40 through 40 plus 498) (Line 4)

19 STATEMENT AS OF MARCH, 04 OF THE RADIAN MORTGAGE ASSURANCE INC PART (000 omitted) LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES SCHEDULE Years in Which Losses Occurred Prior Year-End Known Case Loss and LAE Reserves Prior Year-End IBNR Loss and LAE Reserves Total Prior Year-End Loss and LAE Reserves (Cols. + ) 04 Loss and LAE Payments on Claims Reported as of Prior Year-End 04 Loss and LAE Payments on Claims Unreported as of Prior Year-End Total 04 Loss and LAE Payments (Cols ) Q.S. Date Known Case Loss and LAE Reserves on Claims Reported and Open as of Prior Year End Q.S. Date Known Case Loss and LAE Reserves on Claims Reported or Reopened Subsequent to Prior Year End Q.S. Date IBNR Loss and LAE Reserves Total Q.S. Loss and LAE Reserves (Cols ) Prior Year-End Known Case Loss and LAE Reserves Developed (Savings)/ Deficiency (Cols minus Col. ) Prior Year-End IBNR Loss and LAE Reserves Developed (Savings)/ Deficiency (Cols minus Col. ) Prior Year-End Total Loss and LAE Reserve Developed (Savings)/ Deficiency (Cols. + ). 0 + Prior. 0. Subtotals 0 + prior Subtotals 0 + prior XXX XXX XXX XXX XXX XXX XXX XXX 7. Totals Prior Year-End 8. Surplus As Regards Policyholders 7,980 Col., Line 7 As % of Col., Line 7 Col., Line 7 As % of Col., Line 7 Col., Line 7 As % of Col., Line 7... Col., Line 7 Line 8 4.

20 STATEMENT AS OF MARCH, 04 OF THE RADIAN MORTGAGE ASSURANCE INC SUPPLEMENTAL EXHIBITS AND SCHEDULES INTERROGATORIES The following supplemental reports are required to be filed as part of your statement filing. However, in the event that your company does not transact the type of business for which the special report must be filed, your response of NO to the specific interrogatory will be accepted in lieu of filing a report and a bar code will be printed below. If the supplement is required of your company but is not being filed for whatever reason enter SEE EXPLANATION and provide an explanation following the interrogatory questions. Response. Will the Trusteed Surplus Statement be filed with the state of domicile and the NAIC with this statement? NO. Will Supplement A to Schedule T (Medical Professional Liability Supplement) be filed with this statement? NO. Will the Medicare Part D Coverage Supplement be filed with the state of domicile and the NAIC with this statement? NO 4. Will the Director and Officer Insurance Coverage Supplement be filed with the state of domicile and the NAIC with this statement? NO Explanation: Bar Code:. * *. * *. * * 4. * * 5

21 STATEMENT AS OF MARCH, 04 OF THE RADIAN MORTGAGE ASSURANCE INC OVERFLOW PAGE FOR WRITE-INS 6

22 STATEMENT AS OF MARCH, 04 OF THE RADIAN MORTGAGE ASSURANCE INC SCHEDULE A VERIFICATION Real Estate. Book/adjusted carrying value, December of prior year. Cost of acquired:. Actual cost at time of acquisition. Additional investment made after acquisition. Current year change in encumbrances 4. Total gain (loss) on disposals 5. Deduct amounts received on disposals 6. Total foreign exchange change in book/adjusted carrying value 7. Deduct current year s other-than-temporary impairment recognized 8. Deduct current year s depreciation 9. Book/adjusted carrying value at the end of current period (Lines ) 0. Deduct total nonadmitted amounts. Statement value at end of current period (Line 9 minus Line 0) Year To Date Prior Year Ended December SCHEDULE B VERIFICATION Mortgage Loans. Book value/recorded investment excluding accrued interest, December of prior year. Cost of acquired:. Actual cost at time of acquisition. Additional investment made after acquisition. Capitalized deferred interest and other 4. Accrual of discount 5. Unrealized valuation increase (decrease) 6. Total gain (loss) on disposals 7. Deduct amounts received on disposals 8. Deduct amortization of premium and mortgage interest points and commitment fees 9. Total foreign exchange change in book value/recorded investment excluding accrued interest 0. Deduct current year s other-than-temporary impairment recognized. Book value/recorded investment excluding accrued interest at end of current period (Lines ). Total valuation allowance. Subtotal (Line plus Line ) 4. Deduct total nonadmitted amounts 5. Statement value at end of current period (Line minus Line 4) Year To Date Prior Year Ended December SCHEDULE BA VERIFICATION Other Long-Term Invested Assets. Book/adjusted carrying value, December of prior year. Cost of acquired:. Actual cost at time of acquisition. Additional investment made after acquisition. Capitalized deferred interest and other 4. Accrual of discount 5. Unrealized valuation increase (decrease) 6. Total gain (loss) on disposals 7. Deduct amounts received on disposals 8. Deduct amortization of premium and depreciation 9. Total foreign exchange change in book/adjusted carrying value 0. Deduct current year s other-than-temporary impairment recognized. Book/adjusted carrying value at end of current period (Lines ). Deduct total nonadmitted amounts. Statement value at end of current period (Line minus Line ) Year To Date Prior Year Ended December SCHEDULE D VERIFICATION Bonds and Stocks Prior Year Ended Year To Date December. Book/adjusted carrying value of bonds and stocks, December of prior year 6,005,40 6,096,7. Cost of bonds and stocks acquired. Accrual of discount 4. Unrealized valuation increase (decrease) 5. Total gain (loss) on disposals 6. Deduct consideration for bonds and stocks disposed of 7. Deduct amortization of premium,544 90,74 8. Total foreign exchange change in book/adjusted carrying value 9. Deduct current year s other-than-temporary impairment recognized 0. Book/adjusted carrying value at end of current period (Lines ) 5,98,859 6,005,40. Deduct total nonadmitted amounts. Statement value at end of current period (Line 0 minus Line ) 5,98,859 6,005,40 SI0

23 STATEMENT AS OF MARCH, 04 OF THE RADIAN MORTGAGE ASSURANCE INC SCHEDULE D - PART B Showing the Acquisitions, Dispositions and Non-Trading Activity During the Current Quarter for all Bonds and Preferred Stock by NAIC Designation NAIC Designation Book/Adjusted Carrying Value Beginning of Current Quarter Acquisitions During Current Quarter Dispositions During Current Quarter 4 Non-Trading Activity During Current Quarter 5 Book/Adjusted Carrying Value End of First Quarter 6 Book/Adjusted Carrying Value End of Second Quarter 7 Book/Adjusted Carrying Value End of Third Quarter 8 Book/Adjusted Carrying Value December Prior Year BONDS. NAIC (a) 7,867,008 45,00,768 45,9,4 (,0) 7,708,40 7,867,008. NAIC (a). NAIC (a) 4. NAIC 4 (a) 5. NAIC 5 (a) 6. NAIC 6 (a) 7. Total Bonds 7,867,008 45,00,768 45,9,4 (,0) 7,708,40 7,867,008 SI0 PREFERRED STOCK 8. NAIC 9. NAIC 0. NAIC. NAIC 4. NAIC 5. NAIC 6 4. Total Preferred Stock 5. Total Bonds & Preferred Stock 7,867,008 45,00,768 45,9,4 (,0) 7,708,40 7,867,008 (a) Book/Adjusted Carrying Value column for the end of the current reporting period includes the following amount of non-rated short-term and cash equivalent bonds by NAIC designation: NAIC $ ; NAIC $ ; NAIC $ ; NAIC 4 $ ; NAIC 5 $ ; NAIC 6 $

24 STATEMENT AS OF MARCH, 04 OF THE RADIAN MORTGAGE ASSURANCE INC SCHEDULE DA - PART Short-Term Investments Book/Adjusted Carrying Value Par Value Actual Cost 4 Interest Collected Year To Date ,776 XXX 75, Paid for Accrued Interest Year To Date SCHEDULE DA - VERIFICATION Short-Term Investments Year To Date Prior Year Ended December. Book/adjusted carrying value, December of prior year 86,608,0,90. Cost of short-term investments acquired,00,58 6,77,6. Accrual of discount 4. Unrealized valuation increase (decrease) 5. Total gain (loss) on disposals 6. Deduct consideration received on disposals,9,4 6,58, Deduct amortization of premium 8. Total foreign exchange change in book/adjusted carrying value 9. Deduct current year s other-than-temporary impairment recognized 0. Book/adjusted carrying value at end of current period (Lines ) 75,776 86,608. Deduct total nonadmitted amounts. Statement value at end of current period (Line 0 minus Line ) 75,776 86,608 SI0

25 STATEMENT AS OF MARCH, 04 OF THE RADIAN MORTGAGE ASSURANCE INC Schedule DB - Part A - Verification Schedule DB - Part B - Verification Schedule DB - Part C - Section Schedule DB - Part C - Section Schedule DB - Verification SI04, SI05, SI06, SI07

26 STATEMENT AS OF MARCH, 04 OF THE RADIAN MORTGAGE ASSURANCE INC SCHEDULE E - VERIFICATION (Cash Equivalents) Year To Date Prior Year Ended December. Book/adjusted carrying value, December of prior year 0,999,998 0,999,86. Cost of cash equivalents acquired 4,999,87,996,408. Accrual of discount 5,77 4. Unrealized valuation increase (decrease) 5. Total gain (loss) on disposals 6. Deduct consideration received on disposals 44,000,000,000, Deduct amortization of premium 8. Total foreign exchange change in book/adjusted carrying value 9. Deduct current year s other than temporary impairment recognized 0. Book/adjusted carrying value at end of current period (Lines ) 0,999,707 0,999,998. Deduct total nonadmitted amounts. Statement value at end of current period (Line 0 minus Line ) 0,999,707 0,999,998 SI08