Radian Group Inc. Notes to Consolidated Financial Statements - (Continued) December 31, 2012 2011 ($ in millions) RIF, net (1). . . . . . . . . . . . . . . . . . . . . . . . $ 19,226.7 $ 18,095.7 Statutory surplus . . . . . . . . . . . . . . . . . . . $ 926.0 $ 843.2 Statutory contingency reserve. . . . . . . . . — — Statutory position. . . . . . . . . . . . . . . . . . . $ 926.0 $ 843.2 Risk-to-capital. . . . . . . . . . . . . . . . . . . . . 20.8:1 21.5:1 (1)  RIF, net excludes risk ceded through reinsurance contracts (to both external parties as well as subsidiaries and af filiates)  and RIF on defaulted loans. The improvement in Radian Guaranty’ s risk-to-capital ratio in 2012 was primarily due to: (1) the release of contingency  reserves at Radian Asset Assurance as a result of the  Assured Transaction, which benefited Radian Guaranty’ s surplus; (2)  realized investment gains; and (3) the impact of the Reinsurance  Transactions entered into in 2012, as well as amounts ceded to  subsidiaries and affiliates in 2012. This benefit was partially of fset by a statutory net loss incurred at Radian Guaranty . As described in Note 9, Radian Guaranty entered into the Initial Quota Share Reinsurance  Transaction effective April 1,  2012, and in the fourth quarter of 2012 agreed to the terms of the Second Quota Share Reinsurance  Transaction. Our ceded RIF  under the Initial Quota Share Reinsurance  Transaction at December 31, 2012 was $1.5 billion. The agreed upon terms of the  Second Quota Share Reinsurance Transaction provide for additional ceded risk of  $750 million initially and the parties have the  ability to mutually increase the amount of ceded risk up to a maximum of  $2 billion. As of December 31, 2012, the amount  ceded pursuant to the Second Quota Share Reinsurance  Transaction was $368.4 million of Radian Guaranty’ s RIF.  Radian Insurance is required to maintain a minimum statutory surplus of  $20 million to remain an authorized reinsurer in  all states. Radian Insurance’s statutory net income, statutory policyholders’  surplus and contingency reserve as of and for the  years ended December 31, 2012, 2011 and 2010 were as follows:  December 31, (In millions) 2012 2011 2010 Statutory net income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 58.0 $ 4.3 $ 43.9 Statutory policyholders’ surplus. . . . . . . . . . . . . . . . . . . . 218.6 156.8 151.7 Contingency reserve. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.6 — 1.5 December 31, (In millions) 2012 2011 2010 Statutory net income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2.0 $ (0.6) $ 7.4 Statutory policyholders’ surplus. . . . . . . . . . . . . . . . . . . . . . 18.5 16.5 17.1 RMAI is required to maintain statutory-basis capital and surplus of  $1.125 million. Radian Group and RMAI are parties  to a guaranty agreement, which provides that Radian Group will make suf ficient funds available to RMAI to ensure that RMAI  has a minimum of $5 million of statutory policyholders’  surplus every calendar quarter . RMAI’s statutory net income (loss) and  statutory policyholders’ surplus as of and for the years ended  December 31, 2012, 2011 and 2010 were as follows:  246