To Our Stockholders: For more than 35 years, Radian has remained committed to helping more people achieve and preserve their dream of homeownership. While the past several years have been more challenging than any other time in our history, the actions we have taken to strengthen our company have helped us to open doors for new generations of homeowners, while providing value for our stockholders. In 2012, we continued to position Radian for future growth and profitability. We did this by focusing on four priorities: We are pleased with the progress we have made, and with our #1 market share position in the fourth quarter of 2012. Below are highlights of our successes for each of these priorities: We wrote an increasing volume of new mortgage insurance business each consecutive quarter in 2012, and ended the year with $37.1 billion in new business, more than double the amount from 2011. We look forward to continued strong volume this year, and we expect our total new business volume in 2013 to surpass 2012. Importantly, from 2009 to the end of February 2013, we wrote a total of $88 billion of new business, which we expect to create an impressive earnings ramp to lead us towards future profitability. Many have asked how we doubled our market share from our historical levels to the number one position in the fourth quarter of 2012. We’ve had a focused, successful sales expansion effort underway since 2008 and have increased our new business volume consistently. In 2012 alone, more than 325 new customers chose Radian as a mortgage insurance partner. Those relationships mean new opportunity for our company, as 21% of our mortgage insurance business in 2012 came from customers new to Radian within the last two years, with our pipeline of prospective new customers remaining strong. In order to support our growing business volume, we have implemented new product and pricing technology, and significantly improved our client connectivity. This leading technology gives us a competitive advantage and is already having a positive impact, with 86% of our new business now coming in electronically. Going forward, we will continue to make investments that build on our success in implementing superior technology and our expanded presence among small to mid-size lenders should help us tap markets where private mortgage insurance volume is expected to grow. Turning to the composition of our mortgage insurance portfolio, the 2009 through 2012 books grew to nearly 45% of our primary risk in force in the fourth quarter of 2012, and the most problematic 2006 through 2007 books are now down to under 26%. We continue to expect that, given the volume of new business we write each quarter, by the second quarter of 2013 our book of business written after 2008 will be larger than our legacy book written in 2008 and prior. And the latest HARP (Home Affordable Refinance Program) continues to improve the credit profile of our legacy book. More than 9% of our risk in force has completed a HARP refinance and this, combined with our newer, high-quality book of business, represents a strong portfolio that is now larger than our legacy exposure, representing 54% of our total primary mortgage insurance risk in force. This improved composition of our mortgage insurance portfolio is one of the primary drivers of our expected return to a marginal level of mortgage insurance operating profitability this year. Additionally, our gross total primary insurance in force is now growing again and increased from $126.2 billion at year-end 2011 to $140.4 billion at year-end 2012, resulting in an increase of our net mortgage insurance premiums earned from $681 million in 2011 to $702 million in 2012. The improvement in our portfolio of defaulted loans has continued, with a decline of 2% from the third quarter of 2012 and 16% from the fourth quarter of 2011. The default rate on our primary book fell again in the fourth quarter to 12.1%. As we work through our legacy book of business, we maintain $3.1 billion in loss reserves, which represents more than three times the claims we expect to pay in 2013. And our primary reserve per default increased in the fourth quarter to $29,510, our highest level ever, up from $26,007 at the end of 2011 and $23,374 at the end of 2010. Our denial and rescission rates have remained elevated as we review claims on loans that were originated during a period of historically poor underwriting. What is most important to remember is that we continue to pay appropriate claims while enforcing 1 Mitigate our Mortgage Insurance Legacy Losses Continue to Write New, High-Quality Mortgage Insurance Business 1. Continue to write more new, high-quality mortgage insurance business. 2. Mitigate our mortgage insurance legacy losses. 3. Reduce our risk exposure in financial guaranty to provide important capital support to the mortgage insurance business. 4. Position Radian for success as the FHA pulls back and the housing market recovers.